The state Department of Public Utilities is working on rules for ride-hailing companies such as Uber and Lyft, and is also looking into the possibility of regulating cabbies and other drivers.
The rules, set to go into effect this November, will require drivers with the app-based, ride-hailing services to register with the state and undergo regular criminal background checks to stay on the road.
But a new report from the Department of Public Utilities and the Registry of Motor Vehicles says those requirements are “not feasible” for taxi and livery drivers under current law because the state lacks authority over those companies, which are regulated locally.
“Taxis and liveries have minimal state oversight, and therefore statewide background check across the ride for hire industry would require new legislation,” the report states.
Besides changes to the law, the report says “significant technology investments” are required to create a registry and conduct background checks on all drivers.
“A new regulatory structure for taxis and livery would likely incur financial burdens on the municipalities, the state, and potentially the drivers,” it stated. “Similarly, the cost of additional staffing at the state and municipal level would likely grow in order to accommodate this new regulatory structure.”
Scott Solombrino, a limousine executive and spokesperson for Ride Safe MA, a taxi and livery group, said there's no need for the state to take over regulation of taxi and limo drivers.
He questioned why regulators would even consider the move, which he said would cause a backlash from the taxi and livery industries.
"Taxi drivers are already among the most highly regulated industries in the state," he said. "We don't see any reason to take away regulation from local governments, which are doing a good job."
Solombrino said regulators should focus on Uber, Lyft and other ride-hailing companies.
"If the state really wants a level playing field they should be fingerprinting and drug testing TNC drivers," he added.
A spokeswoman for the Executive Office of Energy and Environmental Affairs, which oversees the Department of Public Utilities, said the state has made "tremendous progress implementing one of the most comprehensive ride-for-hire laws in the country to prioritize public safety through thorough background checks."
"The regulatory process is ongoing, and the DPU looks forward to promulgating final regulations that protect rider safety and allow this innovative industry to thrive in the commonwealth," spokeswoman Katie Gronendyke said.
Regulations for the taxi and livery industries are not included in final rules being considered by the DPU, she added.
Representatives for Uber and Lyft declined to comment.
Gov. Charlie Baker signed a law in August that set up a new regulatory system for “transportation network companies,” such as Uber and Lyft, that included fees, mandatory state-approved background checks, vehicle inspections and insurance coverage.
The law required the Department of Public Utilities to look into “statewide criminal offender record information checks for each operator of a ride-for-hire vehicle,” the creation of a roster of all livery and cab drivers, and a way for cities and towns to notify the state about “driving infractions, criminal convictions or suspension of a driver's license.”
It wasn't immediately clear how that provision made it into the law, and several lawmakers who worked on the bill didn't return phone calls seeking comment.
Approval of the legislation followed complaints from the taxi industry -- whose drivers pay hundreds of dollars a year for licenses, insurance and vehicle inspections -- that drivers in the ride-hailing networks had an unfair competitive advantage because they are unregulated.
Solombrino said the new rules but don't go far enough. He wants drivers in those networks to be fingerprinted and drug tested, which he said would "create a more level playing field" with the taxi industry.
Ride-booking services leverage mobile apps, which customers use to hail rides. Area drivers are notified of those requests.
Riders pay through the app; no money changes hands.
State law allows local officials to license taxis and livery drivers that pick up fares within their borders. That can include charging fees or requiring insurance and criminal background checks for drivers.
But the Department of Public Utilities report points out the use of background checks varies widely, with some communities only requiring taxi companies to get a local business license.
Since January, the state has been conducting criminal background checks on Uber and Lyft drivers under a temporary agreement with the companies and several other firms.
To date, 12,735 drivers have been denied approval to work for ride-hailing companies after state background checks turned up criminal histories, according Public Utilities data.
The drivers, who had already passed company background checks, were found to have previous arrests or convictions for offenses ranging from violent crimes such as sexual abuse and exploitation to having a suspended driver’s license.
Overall the state has performed background checks on more than 122,000 drivers since January, the agency said.
Of 2,332 appeals to rejected applications, 813 were reversed and 1,519 were affirmed.
©2017 The Eagle-Tribune (North Andover, Mass.) Distributed by Tribune Content Agency, LLC.
