New House Bill Aims To Regulate Ride-Sharing

House Bill No. 4637 is aimed at Transportation Network Companies (“TNC’s”) which hold themselves out to the public as transportation for hire. Uber and Lyft are just two of the major players which will be affected by this bill, as any services which offer prearranged rides to the general public through internet services will be subject to the new rules contained therein.

What are these new rules? Well, we have provided a few highlights below and attached a link to the bill for our readers’ convenience:

  • Drivers must now be at least 19 years old to drive for a transportation network company (TNC), and they must submit to a comprehensive background check.
  • Registered Sex Offenders and persons convicted of violent felonies need not apply, as they are barred from driving for TNC’s.
  • This bill has mandated a zero-tolerance policy for drug and alcohol use while driving for a TNC.
  • Drivers for TNC’s must acquire primary automobile insurance which, “recognizes the driver uses the vehicle as a TNC driver or to otherwise transport passengers for compensation, and that the policy covers the TNC driver while logged on to the TNC’s digital network and while engaged in a prearranged ride.”
  • Drivers using personal vehicles must maintain distinguishing and distinctive signage while operating their vehicle as a TNC driver. The identifying signage must be readable from 50 feet.
  • Newly formed TNC’s will now have to submit an application to the Michigan Department of Transportation, along with relevant application fees in order to operate within this state.
  • TNC drivers will be designated as independent contractors under this bill, so long as the TNC does not assign them to specific territories or impede their ability to work for other TNC’s.

Below is a link to the new law:

House Bill No. 4637

This article was written by Nezar Habhab, Law Clerk.

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