The law, passed last month and effective immediately, requires “transportation network companies” – defined by the new law as companies that use technology like smartphone apps to arrange ride services – to register with the state Department of Safety and removes authority from municipalities. Individual drivers do not need to register with the state under the new law, only the companies for which they work.
However, the law does not include provisions for how companies can actually register with the state. Department of Safety Assistant Commissioner Richard Bailey Jr., said the Division of Motor Vehicles will need to create a registration process by going through the Legislature’s Joint Committee on Administrative Rules. He said that should last well into the fall. Until then, companies like Uber are free to operate as they have been in New Hampshire.
“Any of the companies currently doing business can continue to do business until a licensing process is in place,” Bailey said.
Last year, Uber caused a stir in Portsmouth when taxi drivers in the city complained about having to compete with unlicensed Uber drivers that were not subjected to the city's taxi cab regulations. Uber drivers use their personal cars and customers book rides through the company’s phone app. Uber was founded in 2009 and has grown into a nationwide transportation phenomenon.
Shortly before the law went into effect, Portsmouth Police Chief David Mara promised a crackdown on Uber drivers who didn't register with the city as required by its transportation ordinance. The new law negates town ordinances and puts authority solely on the Department of Safety.
Once the registration process is established, the state will also be limited in its ability to enforce the regulations as the new law does not include provisions for a funding source for enforcement. Companies are required under the law to conduct background checks on drivers, and drivers must meet an insurance requirement either through their own insurance or through the company.
Bailey said the Department of Safety will need to rely on reports from witnesses about violations for now rather than seeking violators out. Violations can result in a $500 fine for a first offense, $1,000 for a subsequent offense.
Bailey said enforcement would become a greater concern when software becomes easier to develop for smaller companies, which would lead to more transportation networking companies. The large companies on the state’s radar – Uber and Lyft – are expected to properly register, especially since Uber was involved in the legislative process.
“We don’t think we’re going to see 100 applications,” Bailey said. “The bill is kind of a minimalist approach to oversight… Looking at what’s occurred in other states, other than the occasional problem, it doesn’t seem that there have been large issues with these companies.”
©2016 Portsmouth Herald, N.H. Distributed by Tribune Content Agency, LLC.