Bill would require Uber, Lyft background checks
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A new bill stops short of requiring fingerprinting for Uber and Lyft drivers.
Drivers for ride-for-hire services like Uber and Lyft would have to undergo a two-step background check before being able to shuttle passengers around the state, but advocates for stricter regulation of the growing companies said a bill unveiled Friday did not go far enough to ensure safety with fingerprinting.
Rep. Aaron Michlewitz, the House chair of the Financial Services Committee, on Friday released a finalized version of legislation, expected to emerge for debate in the House as soon as next week, that would establish a new regulatory division to monitor companies like Uber and Lyft. The new regulations would require drivers for such companies to pass through background checks conducted by both the private companies and the state, but stopped short of mandating the fingerprint checks that the city of Boston has recently started using to vet cab drivers.
"We are instituting the most comprehensive background checks for transportation network companies in the nation, and it is not only a check that is taking place by the company but a second one by the state, which you haven't seen anywhere else," Michlewitz told the News Service. "We believe it's the role of government to provide public safety for all its citizens and we think we do that with this background check."
The Ride Safe Massachusetts Coalition, which has pushed for tougher regulation of the ride-for-hire industry, said Friday it was "very disappointed" that the bill moving through the Financial Services Committee did not mandate driver fingerprinting, commercial insurance or vehicle identification plates.
"Echoed by both the State Chiefs of Police and District Attorneys, finger printing drivers and requiring TNC plates is necessary to ensure we stop the epidemic of assaults that have occurred by TNC drivers. Uber and Lyft passengers deserve the same level of security that my livery passengers receive. It is the job of lawmakers to protect our state's residents and we look forward to continuing to work with the legislature to strengthen the bill language as it moves through the legislative process," said Scott Solombrino, the president of Boston Coach and a spokesman for the coalition.
Members of the Financial Services Committee were given until Sunday to vote on the bill, which would move then to the Ways and Means Committee before surfacing for a floor debate when amendments would be considered. The House has a formal session scheduled for next Wednesday.
Under the bill, the vehicles used by drivers of so-called transportation network companies would be required to be less than 10 years old and undergo two safety inspections each year, and the bill lays out insurance requirements that the companies would have to carry for their drivers, including a $1 million policy covering a driver from the time a fare is accepted until the passenger leaves the vehicle.
Uber did not respond publicly to the bill on Friday, but House leaders expect pushback on several provisions, including the state-run background checks, the five-year ban on operating at the airport, and a requirement that ride-for-hire drivers notify their insurance carriers that their vehicles will be used for commercial transport of passengers.
"We were told without notifying the carriers that for these cars being used as TNCs, even for a short period of time, it was creating gaps in insurance if an accident did occur," Michlewitz said. As for the insurance requirements, the North End Democrat said the levels of insurance were similar to those required in 29 other states, with the carrier notification provision being the major addition. He said these new "ride-for-hire" policies should become more available through the open market once the state sets up a framework, and over time the bill would allow for the Division of Insurance to make similar policies available to cab drivers to replace their current commercial insurance.
The background checks and other industry oversight would fall to a new division within the Department of Public Utilities, which would be funded through fees assessed on the private companies.
The issue of whether to fingerprint drivers operating on the relatively new technology-based based platforms that connect drivers with riders has proven contentious, with top law enforcement officials, including Boston Police Commissioner William Evans, pushing for the extra step.
But even as Boston has begun fingerprinting cab drivers, Uber has objected to fingerprinting and threatened to leave the Boston market if it were to be required. Uber officials say fingerprinting would be cumbersome and could surface records of arrests that never resulted in charges or a conviction, disproportionately impacting minorities seeking jobs.
Under the bill, crimes of violence, sexual abuse, driving under the influence, hit-and-run, evading police, driving with a suspended or revoked license, felony robbery or fraud within the previous seven years, or one major violation and three minor violations in three years, would be grounds for denial of a prospective driver.
Vehicles used to transport passengers through mobile applications like Uber and Lyft would have to display a state-issued decal on the front and back of the vehicle at all times while in service, and would be prohibited from charging higher fares, known as surge pricing, during weather emergencies.
Michlewitz said House leaders wanted to make sure that vehicles were properly marked, but did not want to force drivers who may only accept passengers a couple of hours week to obtain specialized plates for their personal vehicles.
Ride-for-hire drivers would also be prohibited from picking up fares at cab stands, at Logan Airport, or from soliciting street hails.
Boston cab drivers would retain exclusivity at Logan Airport unless MassPort officials determined that the city cabs could not meet demand during peak time, in which case Cambridge and Somerville cabs, but not ride-for-hire drivers, could be allowed to pick up fares at the airport.
While Michlewitz last year suggested he may want to streamline the regulation of taxi companies as well in order to eliminate the patchwork system of rules that vary from town to town, he said Friday, "In order to get what is a very comprehensive bill passed, we had to focus on what to do in terms of regulations for the TNCs first and foremost."
In a nod to the cab operators, the committee bill proposes to establish a task force to study ways taxis could employ surge pricing and instructs the Growth Capital Corporation, a quasi-public state agency, to develop plans to help the cab industry finance new technology, such as apps to connect drivers with riders, or guarantee loans for the purchase of new equipment so cabs can compete in the fast changing marketplace.
The task force would also explore the potential use of driverless cars.
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