DMV Transportation Network Company Stakeholder Study

1. DMV Transportation Network Company Stakeholder Study VML Transportation Policy Committee Meeting July 24, 2014

2. Transportation Network Company Study • Emergence of new app based, for-hire, passenger transportation services operating primarily in Northern VA , such as Uber and Lyft • HB 908 and SB 531 initiated during 2014 Session - pursued on behalf of Uber - designed to change certain licensing requirements of contract passenger carriers • Legislative study charge – determine whether current law is sufficient to regulate these services or whether the law needs to be updated to address the new transportation models

3. Study Approach • Initial meetings with study stakeholders • Survey of stakeholders and those involved in for-hire transportation • Research of TNC models and other states’ legislation • DMV team meetings and identification/development of concepts • Individual stakeholder meetings to review concepts Representatives from insurance industry, localities, taxi/limousine and charter bus industry, TNC’s (Uber, Lyft, Sidecar), law enforcement • Review of stakeholder feedback and revisions to concept • Meetings with stakeholders for finalization of concept • Draft report and legislation for review October 2014 • Final report and legislation to Transportation Chairs by December 1, 2014

4. Colorado Concept • Created a new, separate regulatory scheme for TNCs • Companies must register with Colorado Public Utilities Commission (PUC) and obtain a permit • Sets insurance requirements, during prearranged ride and when logged into app without a ride, with requirements changing after 7/1/15 • Criminal background checks every 5 yrs, driving record checks every 3 yrs • TNC annual vehicle inspections, exterior marking identifying vehicle for-hire • Unclear on locality authority (Denver laws apply only to drivers)

5. VA Taxicab Association • Original submittal basically required that TNCs apply for and comply with existing licensing requirements. New submittal 7/16 as outlined below • New category “transportation network common carrier” • Primary insurance 24/7 • Nationwide fingerprint based criminal background check on drivers every 2 yrs • Vehicles VA registered, inspected and have DMV issued plate or decal • Localities do not regulate TNCs, but maintain all current local taxi regulations

6. Free Market ConceptPrinciples • Allow free market to drive market entry and pricing • Provide reasonable level of public safety and consumer protection • State & local resources available to administer and enforce requirements • Provide a level playing field for all passenger transportation services

7. Free Market Concept • Collapse existing carrier authority types into one Commercial Passenger Carrier (CPC). Carrier maintains responsibility for vehicle • Create new authority type, Transportation Network Passenger Carrier (TNPC). Carrier never maintains responsibility for vehicle. • Eliminate some current requirements for new CPC authority and create some new requirements for both passenger carrier types • Evaluating Colorado insurance option. Coverage whenever the app is on • Criminal background check every 5 yrs and driving record checks yearly • Vehicles registered and designated for dual use by DMV • No local regulation

8. Next Steps • Analysis of feedback from stakeholder sessions • Development of new framework • Meetings with Stakeholders – leadership team representing all stakeholder groups