Senate Eliminates Local Control over Transportation Network Companies and Taxi Carriers

Posted on December 2, 2016 by Dene Westbrook

File illustration picture showing the logo of car-sharing service app Uber on a smartphone next to the picture of an official German taxi signIn a move to place Transportation Network Companies (TNCs), such as Uber and Lyft, limousines and taxi carriers, all under one regulatory framework, the Senate passed HB 4637 by a vote of 31-4. In doing so, the Legislature stripped all local control municipalities currently have over taxi carriers. Regulation of these entities will now be handled by the Department of Licensing and Regulatory affair.

Under this new regulatory framework each entity is required to register with the department, complete a vehicle safety inspection if the vehicle is 5 years old or older, post proper signage on the vehicle, ensure each driver has passed a criminal background check and obtained proper insurance.

Municipalities will only be allowed to enforce certain provisions of this act by issuing civil infractions if the vehicles fail to display the proper signage, the driver doesn’t have proper insurance, if a TNC attempts to solicit a passage through a method other than their digital platform, or if a driver fails to provided a ride to an individual due to discrimination.

The League testified in opposition to the elimination of local control citing several concerns about public safety and the ability for the department to adequately enforce the new provisions within this bill. Amendments to protect a communities ability to stipulate hours of operation, and the location and operation of taxi stands were defeated. Senator Hertel was able to secure an amendment on behalf of the League to ensure taxi authorities created before this act will be able to remain in operation for a period of 4 years.

This bill has been returned to the House where it is anticipated they will concur in the Senate changes and send the bill to the Governor for his signature. We also anticipate that the Governor will sign this legislation.

John LaMacchia is the Assistant Director of State and Federal Affairs for the League handling transportation, infrastructure, energy and environment issues. He can be reached at [email protected] or 517-908-0303.

1675 Green Road,
Ann Arbor MI 48105
Capitol Office
208 N. Capitol Ave.,
1st Floor Lansing, MI 48933
©2022 Michigan Municipal League LLC. All rights reserved