"STATEMENT: CT House Passes Rideshare Bill"

Transportation Network Companies Legislation Connecticut House of Representatives

Milford, CT (May 11, 2017) – Today, a bill that would create a critical regulatory framework for ridesharing companies (H.B. 7126) – including Lyft and Uber – passed in Connecticut’s House of Representatives.

“Helping businesses grow and thrive in Connecticut is critical to strengthening our economy,” said Brett Broesder, co-founder and vice president of the Campaign for Tomorrow’s Jobs. “This bill will not only ensure that ridesharing industry companies continue to positively impact our economy statewide, it also better positions the Nutmeg State to win the competition for tomorrow’s jobs.”

The bill would require Transportation Network Companies (TNCs) (e.g., Uber and Lyft) to register annually with the Department of Transportation (DOT) and have drivers submit to background checks, according to Connecticut’s Office of Legislative Research. In addition, it establishes insurance, operational, non-discrimination, accessibility, and alcohol and drug test policy requirements for TNCs.

Also, the bill includes provisions to beat back price gouging. It restricts TNCs from using dynamic pricing -- offering pre-arranged rides at differing prices according to supply or demand. More specifically, it restricts TNCs from increasing the price of a ride by more than 2.5 times the usual price during any governor or U.S. President declared emergency.

Last year, Lyft drivers nationwide made over of $1.5 billion, according to a study from the company. In U.S. cities where the Uber platform was adopted, total employment in point-to-point transportation services has expanded, according to researchers at the University of Oxford. In fact, the supply of wage employed taxi drivers increased by 10 percent, and self-employment skyrocketed by nearly 50 percent.

42 other states already have similar regulatory frameworks, and several other state legislatures across the country are currently considering similar legislation, according to The Times Picayune.

A public hearing on H.B. 7126 was held March 2, 2017. The bill passed in the Insurance and Real Estate Committee by a margin of 18-3 on March 15, 2017.

If passed by the Senate and signed by the governor, the bill will go into effect on January 1, 2017.

Resources:

  • Link to a blog post on the benefits of ridesharing: http://bit.ly/2qsQN97.
  • Link for information on the bill (H.B. 7126): http://bit.ly/2qsQN97.
  • Link to testimony on the bill from Campaign for Tomorrow’s Jobs: http://bit.ly/2pAI1lf.

About Campaign for Tomorrow’s Jobs
The Campaign for Tomorrow’s Jobs focuses on growing Connecticut’s economy for present and future generations in three key policy areas: workforce preparedness, business growth & innovation and fiscal sustainability. Read more at www.tomorrowsjobs.org.

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