The state Senate gave approval Wednesday to insurance standards and safety regulations for the growing ride-hailing industry.
Companies like Uber and Lyft would be regulated by a state government agency under the plan, passed by the Senate 34 to 2. Drivers for the companies would have to carry minimum levels of insurance and be subject to background checks.
The bill’s passage is a win for the burgeoning ride-hailing industry that’s trying to limit the amount of regulation their drivers face. Companies like Uber and Lyft argue that further restrictions will decrease the functionality of the popular services and harm the innovation economy in Massachusetts that now relies on ride-hailing over traditional cabs. Senate leaders sought to craft a bill to allow ride-hailing companies to continue operation here after threats that the companies may discontinue service if they weren’t satisfied with the level of regulation.
Sen. Linda Dorcena Forry authored a failed amendment to add fingerprinting to the background checks, and she wasn’t happy about the so-called “transportation network companies” threats to abandon Massachusetts if that happened.
“But If you’re gonna tell me TNCs today that because there’s more public safety elements in this bill then you’re going to leave this state, then I say shame on you,” Forry said during the lengthy Senate debate.
Uber has maintained that their own background checks are sufficient to meet safety standards and fingerprinting is not necessary.
Taxi group Ride Safe Massachusetts’s spokesman Scott Solombrino wrote in a statement after the vote that he was disappointed that amendments strengthening safety measures and background checks were voted down.
“This bill is lacking in robust public safety provisions,” Solombrino wrote. “No FBI background checks. No license plates denoting the purpose of the vehicle. No insurance commensurate with level of coverage needed for the trips driven everyday. The public is left vulnerable and unprotected still. This is categorically unacceptable.”
Solombrino wrote that taxi industry supporters and advocates for further safety measures will try to make progress when the House and Senate versions of the bill are reconciled in conference committee. But with both chambers’ legislation similarly benefiting the ride-hailing industry, it’ll be a fight to change key lawmakers’ minds before sessions wrap up July 31.
