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House Commerce Committee Passes Bill Preempting Local Control of Transportation Network Companies

Posted on June 16, 2015 by John LaMacchia

HB 4637 would provide statewide regulations for a Transportation Network Company (TNC). The most recognizable TNC operating in Michigan today is Uber. This bill would preempt local control of a TNC but it does allow for locals to enforce provisions of the statewide regulation. A few communities in Michigan have already negotiated contracts with and regulate TNCs. This would make those contracts null and void.

The statewide regulation would provide uniform standards for insurance, vehicle safety inspections, background checks, and driving records. Although there was opposition from many groups the bill was passed out of committee. The League is opposed to this bill and has testified in opposition.

We anticipate this bill seeing floor action before the Legislature breaks for the summer at the end of this week. On the other side of the Capitol, the Senate has been working on legislation, SB 184, that would continue to protect local control and allow communities to regulate TNCs. The League is support of the Senate bill and hopes to fine a resolution to this issue in the near future.

John LaMacchia is a Legislative Associate for the League handling transportation, infrastructure, and energy issues. He can be reached at jlamacchia@mml.org or 517-908-0303.

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