Who is a member?
Our members are the local governments of Massachusetts and their elected and appointed leadership.
Gov. Charlie Baker signed legislation in August that provides for state regulation of transportation network services, such as Uber and Lyft, that have gained popularity recently as a convenient and inexpensive alternative to taxis and similar ride-for-hire options.
The “transportation network company” (TNC) bill was one of the last major bills approved by the Legislature before formal sessions ended on July 31.
The new law provides for the regulation of TNCs mainly through the Department of Public Utilities. The DPU is charged with ensuring the safety and convenience of these new ride services by conducting an annual background check on TNC drivers and issuing a “background check clearance certificate” to the TNC and the driver.
A certificate can only be issued to a driver by a TNC after a driving record review and criminal background check that the TNC will have to complete twice each year. Drivers must be 21 years of age or older. The TNC and drivers must be properly insured and abide by other rules developed by the DPU.
There is no local regulation of TNCs, as is the case with taxi and similar companies, except for matters related to traffic flow and patterns.
The new law creates a new temporary transportation infrastructure fund. Each year by Feb. 1, each TNC must report the number of rides from the prior year that originated within each city or town and pay a per-ride assessment of 20 cents into the fund. Half of the amount in the fund will be paid to cities and towns based on the number of rides from the previous year that originated in that city or town.
The fund is intended to address the impact of transportation network services on municipal roads, bridges and other transportation infrastructure, or any other public purpose substantially related to the operation of TNC services, including “complete streets” and other programs that support alternative modes of transportation.
The rest of the amount collected for the fund will be equally divided between the Massachusetts Development Finance Agency – to provide aid to small businesses operating in the taxicab, livery or hackney industries in order to encourage the adoption of new technologies and advanced service, safety and operational capabilities, and to support workforce development – and the Commonwealth Transportation Fund.
The small business set-aside would sunset in 2022, and the entire assessment will be repealed in 2027.
The DPU is required to approve regulations to implement the main parts of the new law by Aug. 5, 2017. All TNC drivers and companies already operating are permitted to continue to provide ride services through the date when the DPU regulations are effective.