HOUSE 4064:

AN ACT REGULATING TRANSPORTATION NETWORK

COMPANIES
(summary reflects text as redrafted)

SPONSOR:

Joint Committee on Financial Services

LEGISLATIVE
HISTORY:

03/07/16

03/09/16

03/14/16

Reported favorably from the Committee on Financial

Services as a new draft and referred to the Committee
on Rules of the two branches and Committee
recommended ought to pass and referred to the
Committee on House Ways and Means and order
adopted
Committee recommended ought to pass and referred
to the Committee on House Steering, Policy and
Scheduling and matter ordered to be placed in the
orders of the day for the next sitting and rules
suspended, read second, ordered to a third reading,
rules suspended and read third and passed to be
engrossed and published as amended
Read and referred to the Senate Committee on Ways
and Means

EXISTING LAWS
G.L. c. 6 172; G.L. c. 25; G.L. c. 175 & G.L. c. 175 168
AFFECTED:
PROPOSED
LEGISLATION:

Establishes a regulatory framework for the oversight of

transportation network companies in the Commonwealth.
Establishes a division within the Department of Public Utilities to
maintain oversight authority over transportation network
companies.
o

Requires the division to assess a surcharge on each

transportation network company based on its intrastate
operating revenues for the previous calendar year to
fund the divisions activities.

Requires decals to be issued by transportation network

companies, in a form and manner prescribed by the division, to
drivers to designate a vehicle as a transportation network
vehicle.

Requires the decal to be displayed on a vehicle at all

times while the vehicle is providing transportation
network services.

Requires any driver who ceases to provide

transportation network services to return the decal
within 14 days.

Requires transportation network companies to provide

clear and conspicuous transportation fare estimates to
riders at all times, including during surge pricing, high
volume and high demand times.

Prohibits a transportation network company raising base fares

during a federal or Governor-declared state of emergency.

Requires the division to ensure the safety and annual

inspection of transportation network vehicles.

Requires the division to ensure the accommodation of riders

with special needs, prohibits transportation companies from
imposing additional charges when providing services to
persons with disabilities and requires all drivers to comply
with all applicable laws, rules and regulations relating to the
accommodation of service animals.

Requires all transportation network companies and drivers to

provide services in the form of a pre-arranged ride through a
digital network.

Prohibits a driver providing transportation network services

from soliciting, accepting, arranging or providing
transportation in another manner, including through street
hails, cruising or street solicitations.

Requires transportation network companies to apply for a

permit in order to conduct transportation network services that
shall be issued and renewed annually through the division.
o

In order to obtain a permit, the transportation network

company must, at a minimum, show that they have an
oversight process in place to ensure the following:
every driver using the companys digital network

possesses adequate insurance coverage.

every driver submits to and successfully completes
a background check which includes a review of
local and national criminal records, sex offender
records and driving records.
every driver is certified by the company to provide
transportation network services.
The company complies with all applicable laws
regarding nondiscrimination against riders or
potential riders and ensures the accommodation of
riders with special needs.
any tolls incurred by a transportation network driver
are paid at the commercial rate.
o

Requires the transportation network company, as a

condition of obtaining a permit to conduct
transportation network services in the Commonwealth,
to further include:
the establishment of an option for a rider to provide
a tip to a driver through the companys digital
network application.
the establishment of a toll-free customer service
hotline posted on the transportation network
companys website and digital network application.
the maintenance and updating of a roster of each
driver certified by the transportation network
company to provide pre-arranged rides which shall
be provided to the division, the Registry of Motor
Vehicles and to state and local law enforcement
upon request.

Requires any driver who seeks to utilize the digital network of

a transportation company to provide pre-arranged rides to
apply for a transportation network certificate through the
transportation network company.
o

A driver shall not provide transportation network

services without a valid driver certificate and shall post

such certificate in a manner that it is visible to the rider
at all times while transportation network services are
being provided.
o

A transportation network company shall only issue a

transportation network driver certificate to a driver
who:
is at least 21 years of age;
has access to a vehicle that has been registered,
inspected and insured in the Commonwealth;
is determined to be suitable on basis of a
background check conducted by the transportation
network company;
does not appear on the National Sex Offender
Registry;
has not had a conviction in the past 7 years for a sex
offense or violent crime; driving under the
influence or been assigned to an alcohol or
controlled substance education, treatment or
rehabilitation program by a court; leaving the scene
of property damage or personal injury caused by a
motor vehicle; felony robbery; or felony fraud; and
does not have more than 5 traffic violations or any
major traffic violation in the preceding 3-year
period.

Requires a transportation network company to

immediately suspend a drivers certificate upon
learning of and verifying a drivers arrest for a crime or
a citation for a driving infraction that would render the
driver unsuitable to provide transportation network
services.

Requires the division to annually audit the driver certification

and criminal background check processes of a transportation
network company.

Authorizes the division to issue a monetary penalty, suspend or

revoke a transportation network company permit if the division
determines that the company is not in compliance with any
provision of the chapter.

Makes a violation of this statute by a driver a civil motor

vehicle infraction and assesses a fine of not more than $500 to
each transportation network company that certified the driver.

Establishes a penalty of not more than $500 to transportation

network drivers who solicits, accepts, arranges or provides
transportation network services through street hails or street
solicitations and provides that such violations shall be cited as
a civil motor vehicle infraction.

Establishes a penalty of not more than $500 for a first offense,

not more than $750 for a second offense and not more than
$1000 or not more than 6 months in the house of correction for
a third or subsequent offense for any certified driver who
knowingly allows another individual to use that drivers
certificate or identity to provide transportation network
services or a driver who uses another persons certificate or
identity by means of a digital network.

Requires transportation network companies to maintain

records pertaining to incidents as determined by the division
which are reported to the company and requires the company
retain such records for not less than 7 years.

Requires transportation network companies to, as soon as

practicable, provide applicable information necessary for law
enforcement or the division to investigate a complaint upon
request from either law enforcement or the division.

Gives the state exclusive governing authority and prohibits

municipalities from imposing additional regulations on
transportation network companies except where it relates to
traffic flow and traffic patterns to ensure public safety and
convenience.

Requires the transportation network company and the

transportation network driver to carry adequate insurance for

each vehicle being used to provide transportation network

services.

ESTIMATED
COST:
(KW)

Requires transportation network companies or transportation

network drivers to obtain and carry insurance policies which
cover at least $50,000 of coverage per individual, $100,000
total coverage for bodily injury while a driver is logged on or
available, but not engaged in a pre-arranged ride.

Requires transportation network companies or transportation

network drivers to obtain and carry insurance policies of at
least $1M per occurrence, per vehicle coverage for death,
bodily injury and property damage and requires such policies
meet the statutory requirements for uninsured motorist
coverage and personal injury protection while a driver is
engaged in a pre-arranged ride.

Requires the transportation network company to carry

umbrella insurance to cover any claim that is not covered due
to a drivers failure to fulfill the insurance requirements.

Establishes a ride for hire task force to review the current laws,
regulations, and local ordinances governing licensed hackneys,
taxis, livery and transportation network companies in the
Commonwealth.

Establishes a Municipal Transportation Infrastructure Trust

Fund to be administered and overseen by the division for 5
years through a per ride assessment on transportation network
companies of not more than $0.10 per ride.
o

Requires money in the Municipal Transportation

Infrastructure Trust Fund to be distributed to cities and
towns based on the proportion of rides originating in
the city or town.

Authorizes cities and towns to use the money for

transportation-related purposes.

Any cost associated with this legislation shall be borne through

existing appropriation.