DMV Transportation Network Company Stakeholder Study

VML Transportation Policy Committee Meeting

July 24, 2014

Transportation Network Company Study

• Emergence of new app based, for-hire, passenger transportation services operating primarily in Northern VA , such as Uber and Lyft

• HB 908 and SB 531 initiated during 2014 Session- pursued on behalf of Uber- designed to change certain licensing requirements of contract passenger carriers

• Legislative study charge – determine whether current law is sufficient to regulate these services or whether the law needs to be updated to address the new transportation models

Study Approach• Initial meetings with study stakeholders• Survey of stakeholders and those involved in for-hire

transportation• Research of TNC models and other states’ legislation• DMV team meetings and identification/development of concepts• Individual stakeholder meetings to review concepts

Representatives from insurance industry, localities, taxi/limousine and charter bus industry, TNC’s (Uber, Lyft, Sidecar), law enforcement

• Review of stakeholder feedback and revisions to concept• Meetings with stakeholders for finalization of concept• Draft report and legislation for review October 2014• Final report and legislation to Transportation Chairs by December

1, 2014

Colorado Concept

• Created a new, separate regulatory scheme for TNCs• Companies must register with Colorado Public Utilities

Commission (PUC) and obtain a permit• Sets insurance requirements, during prearranged ride and when

logged into app without a ride, with requirements changing after 7/1/15

• Criminal background checks every 5 yrs, driving record checks every 3 yrs

• TNC annual vehicle inspections, exterior marking identifying vehicle for-hire

• Unclear on locality authority (Denver laws apply only to drivers)

VA Taxicab Association• Original submittal basically required that TNCs apply for

and comply with existing licensing requirements. New submittal 7/16 as outlined below

• New category “transportation network common carrier”• Primary insurance 24/7• Nationwide fingerprint based criminal background check

on drivers every 2 yrs• Vehicles VA registered, inspected and have DMV issued

plate or decal• Localities do not regulate TNCs, but maintain all current

local taxi regulations

Free Market ConceptPrinciples

• Allow free market to drive market entry and pricing

• Provide reasonable level of public safety and consumer protection

• State & local resources available to administer and enforce requirements

• Provide a level playing field for all passenger transportation services

Free Market Concept• Collapse existing carrier authority types into one Commercial

Passenger Carrier (CPC). Carrier maintains responsibility for vehicle

• Create new authority type, Transportation Network Passenger Carrier (TNPC). Carrier never maintains responsibility for vehicle.

• Eliminate some current requirements for new CPC authority and create some new requirements for both passenger carrier types

• Evaluating Colorado insurance option. Coverage whenever the app is on

• Criminal background check every 5 yrs and driving record checks yearly

• Vehicles registered and designated for dual use by DMV• No local regulation

Next Steps

• Analysis of feedback from stakeholder sessions

• Development of new framework • Meetings with Stakeholders – leadership team

representing all stakeholder groups