TNC Policy Guide

POLICY GUIDE

Regulation of Transportation Network Companies

January 2019

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January 2019 | Joint Transportation Committee | Regulation of TNCs: Policy Guide  
1 
 
Regulation of Transportation 
Network Companies: Policy Guide 
Washington State Joint Transportation Committee |January 2019 
Introduction ........................................................................................................................................... 3
 
Background ................................................................................................................................................................. 3
 
State TNC Laws ..................................................................................................................................... 5
 
Regulatory Authority ................................................................................................................................................. 6
 
Pre-emption ................................................................................................................................................................. 6
 
Driver Requirements .................................................................................................................................................. 6
 
Vehicle Requirements ................................................................................................................................................ 7
 
Fees .............................................................................................................................................................................. 7
 
Other Regulatory Areas ........................................................................................................................................... 7
 
Washington State Law ........................................................................................................................... 8
 
Insurance ...................................................................................................................................................................... 8
 
Taxes ............................................................................................................................................................................ 9
 
For-Hire Vehicles ........................................................................................................................................................ 9
 
Local Regulations ................................................................................................................................ 11
 
Local Regulation Components ................................................................................................................................ 12
 
Regional Approaches .............................................................................................................................................. 15
 
Airports ...................................................................................................................................................................... 34
 
Appendix A. Summary of Key Regulation Areas by State ................................................................. 38
 
Appendix B. Summary of Nationwide TNC Laws ............................................................................... 44
 
Appendix C. Jurisdictions Adopting King County Code ..................................................................... 94
 
Appendix D. Summary of Local TNC Requirements ............................................................................ 96

January 2019 | Joint Transportation Committee | Regulation of TNCs: Policy Guide

Introduction

This policy guide summarizes both local regulations for

transportation network companies (TNCs) in Washington State as

well as other states’ TNC regulations. TNCs include companies that

use a digital network or smartphone (app) to connect passengers to

drivers to provide prearranged rides, most frequently in a

personal car owned or leased by the driver. While Uber and Lyft

are the dominant companies, other companies operate in

Washington, including: CiRide, Moovn, ReachNow, and Wingz.

Currently, in Washington, the State’s role in regulating TNCs is

limited to requirements for liability insurance for personal vehicles

used for TNC rides, as well as a requirement for drivers to have a

valid state driver’s license. Starting in 2014 with Seattle, local

governments and port districts have played a more active role in

regulating TNCs and their drivers

This guide includes policies

related to licensing, driver background checks, vehicle

requirements, insurance, operational requirements, data reporting,

and enforcement, among others.

In this policy guide, special attention is paid to existing

frameworks, how they compare to other jurisdictions, and if and

how existing regulations address the competitive challenges facing

taxis and for-hire services. Because the business models, markets,

and regulation of TNCs are dynamic, this guide focuses on current

TNC regulations as of September 2018 and any known upcoming

deliberations.

The objective of this survey of local regulations is to provide a

shared understanding of current regulations from which to explore

public policy questions and to develop recommended options

regarding whether and how to improve the consistency, overall

effectiveness, and competitive fairness of regulatory frameworks

for TNCs. This study was guided by a Staff Work Group (see text

box) that provided technical support and reviewed work products

over time.

BACKGROUND

The past decade has been transformative for the mobility industry.

From carsharing to electric vehicles, there has been a shift in how

people can and want to move, driven largely by new technologies.

Nowhere has this change been more rapid, pronounced, or

disruptive than with the rise of on-demand ride-hailing and TNCs.

Uber officially launched in March 2009 as a timeshare limo service that could be ordered via an app; it

was originally intended for a top-tier, luxury market. The platform later evolved into a mass market

Staff Work Group Members

▪

Joint Transportation Committee -

Dave Catterson and Beth Redfield

▪

Association of Washington Cities -

Candice Bock and Andrew

Pittelkau

▪

Washington State Department of

Licensing - Lewis Dennie and

Stephanie Sams

▪

Washington State Department of

Transportation - Don Chartock

▪

Washington State Patrol - Monica

Alexander

▪

Washington Utilities and

Transportation Commission - Jason

Lewis and Jon Noski

▪

City of Seattle - Matthew Eng,

John Megow, and Mary Mitchell

▪

King County - Sean Bouffiou and

Eddie Cantu

▪

Port of Seattle - Eric ffitch

▪

Washington State Office of

Financial Management - Veronica

Jarvis

▪

House Republican Caucus - Dana

Quam

▪

House Transportation Committee -

Jennifer Harris

▪

Senate Democratic Caucus -

Hannah McCarty

▪

Senate Transportation Committee

- Bryon Moore and Kelly Simpson

January 2019 | Joint Transportation Committee | Regulation of TNCs: Policy Guide

offering allowing drivers to use their personal vehicles. Uber Black (the original luxury service) is still

offered on the app and requires commercial registration and insurance. It is treated as a limousine

service and regulated differently than TNCs in many states, including Washington.

Lyft, meanwhile, began with a focus on sharing rides as a way for passengers to save money by

traveling with others. Originally founded in 2007 as Zimride, it was targeted to college campuses but

failed to gain sufficient market traction. Lyft launched in 2012 as a service of Zimride. In 2013, Zimride

was sold to Enterprise Rent-A-Car, and Lyft continued as a stand-alone service.

During this time, TNC services were limited to major US markets: San Francisco, New York City, Chicago,

and Los Angeles. Uber expanded internationally to Paris in 2011 and London in 2012. Lyft, meanwhile,

focused on going deeper in the domestic US market, reaching 60 cities by 2014 (from Oklahoma City to

Ann Arbor, Michigan).

In 2018, Lyft now reaches 95% of the entire US population, and collectively ride-hailing platforms have

delivered billions of rides. The TNC market in the US doubled between 2009 and 2017, with nearly 10%

of all Americans using the service at least monthly and TNC usership outpacing taxi ridership in several

major markets. As of 2018, there are 1.5 million Lyft drivers and 750,000 Uber drivers in the US.

Outside of the US, Uber operates in 60 countries; Lyft’s first international expansion, to Canada, took

place in 2017.

TNCs have transformed the mobility landscape in cities and helped many people gain access to transport

in ways that were not possible at scale before; in the process, it has also surfaced new challenges and

unknowns, not least for public policy makers and regulators.

Requesting and Riding in a TNC

Individuals wanting to use TNCs must first download the app on

their smartphone. Creating an account requires users to enter a

name, a valid email address, phone number, preferred language,

and password, and to accept the terms and conditions and privacy

statement. Once the phone number is confirmed via a text SMS, a

payment method must be entered. Lyft, for example, accepts

major credit cards, debit cards tied to checking accounts and

prepaid cards. PayPal, Apple Pay, and Google Pay are also

accepted.

To request a ride, a passenger opens the app and enters their

destination and the type of service requested (several TNCs have

multiple options to car pool and/or request certain vehicle types).

Before the ride is confirmed, the price is shown along with the time

remaining until the driver arrives, and the estimated amount of time it will take to reach the destination.

During the ride a passenger can share their live location with their contacts. After the ride, passengers

are invited to rate their driver and have the option to tip them. Passengers are also rated by drivers.

In addition to transporting people, TNCs deliver meals, packages, and other goods. In many cities, goods

are delivered by UberEats, Amazon Flex, and other on-demand platforms in personal vehicles.

TNC Niches

Events – partnerships around

sporting events and concerts

Mobility – city-subsidized

first/last mile solutions and

rideshare to transit (Mercer Island

and Lyft and Uber, Pierce Transit

and Lyft)

Medical rides (non-Medicaid)

January 2019 | Joint Transportation Committee | Regulation of TNCs: Policy Guide

REGULATORY LANDSCAPE

California, home to Uber and Lyft, was the first state to officially pass rules governing ride-hailing. As

part of this, in September 2013 the California Public Utilities Commission (CPUC) also created and

defined TNCs as a new category of transport provider. According to the CPUC, a TNC is “a company

that uses an online-enabled platform to connect passengers with drivers using their personal, non-

commercial vehicles.” With this, CPUC effectively provided a new avenue for regulation of an emerging

space. It also set up a perhaps inevitable battle with taxis, as the two types of providers were regulated

distinctly from one another.

Key differences between TNCs and taxis initially revolved around use of technology and ownership

and/or responsibility for vehicles. TNCs could not exist without smartphone apps; taxis, meanwhile, have

moved into the app space more recently. TNC vehicles can be owned or leased by private individuals;

taxis are generally managed as part of a business entity or commercial fleet.

As with all forms of transportation, regulating TNCs is a balancing act between public safety, consumer

protection, market dynamics, and broader goals around social equity and accessibility. Many TNC

regulatory issues have been challenging for jurisdictions across-the-board; others (such as rural coverage)

have been more varied. The primary regulatory concerns regarding TNCs to date include:

▪

Driver qualifications, including background and driving record checks

▪

Vehicle safety and operation

▪

Insurance

▪

Data sharing, for purposes of consumer protection and urban planning (e.g. traffic and congestion)

▪

Pricing, for purposes of consumer fairness/affordability, revenues for cities/states, and competitive

advantage

▪

Accessibility, primarily focused on individuals with disabilities

▪

Violations and enforcement

Since CPUC’s pioneering efforts, most US states have passed some form of TNC-related regulation. The

regulatory landscape remains dynamic; during this study, several jurisdictions have taken unprecedented

steps - such as New York City’s decision to cap the number of TNC vehicles in August 2018 and establish

a minimum wage for TNC drivers in December 2018 (see TNC Report).

State TNC Laws

Forty-nine states and the District of Columbia have laws governing TNCs. Oregon is the only state that

currently has no statewide law. Four of the 49 states only require certain insurance coverage - Hawaii,

Louisiana, Minnesota, and Washington, and most of these four are considering broader TNC legislation

(Appendix A. Summary of Key Regulation Areas by State).

States with TNC laws generally focus on regulatory issues that transcend local transport dynamics, such as

safety, insurance, rates, and fees. Particularly in the early years of TNC regulation, some states were

influenced by template regulations proposed by TNCs themselves, which tended to pre-empt local

authority beyond the issues listed above. As TNCs have continued to grow and be better understood by

regulators, however, this approach has become less prevalent (see Appendix B. Summary of

Nationwide TNC Laws).

January 2019 | Joint Transportation Committee | Regulation of TNCs: Policy Guide

REGULATORY AUTHORITY

Regulatory authority over TNCs varies by state. The most common regulator is the Division of Motor

Vehicles. The agency this division falls under varies by state and may include the Department of

Transportation, Department of Revenue, and others. Other common regulators include the Public Utilities

Commission, the Secretary of State, and the Department of Public Safety.

PRE-EMPTION

Most states pre-empt local regulatory authority, but some have created carve-outs or exemptions to the

state pre-emption. Examples of each are summarized below.

▪ Nevada and New York allow carve-outs for their larger cities. Vermont has a time limited

population carve-out until 2022.

▪ Illinois and South Dakota’s laws set minimum regulations that all governments must follow, but cities

have authority to be more restrictive than these minimum standards.

▪ In states like Alabama, Alaska, and New York, local jurisdictions can opt out of state regulation by

not allowing TNCs to operate in their city or town.

▪ Nebraska has no state pre-emption.

▪ Some states have specific exceptions to state pre-emption. For example, Kentucky allows the City

of Louisville to determine their own driver requirements; Maryland allows cities collecting fees prior

to January 2015 to continue doing so if they are higher than the current rate; and Alaska’s

municipalities can regulate TNCs’ trade dress (logo, insignia, or other emblem identifying the TNC

company that is visible from the exterior).

DRIVER REQUIREMENTS

Driving experience. Minimum age requirements for drivers range from 18 to 21 years of age, with some

states requiring a minimum amount of driving experience ranging from zero to one year.

Background checks. Most states require a check of the driver’s driving history, as well as a local and

national criminal background check conducted by the TNC or a third party. Massachusetts requires a

second name-based background check conducted by the state law enforcement agency. Massachusetts

can require stricter checks if it is not satisfied with the TNC’s submitted method. Montana does not have

any background check requirements listed in their statute.

Disqualifying offenses. In most states, the intent of the background checks is to identify drivers with poor

driving records or who have been convicted or pled guilty of driving related offenses, felony offenses, or

offenses involving fraud. The number of years that a background check looks back varies. For example,

Colorado uses a five-year look-back period, while Massachusetts has different time periods for different

offenses; ranging from conditions met in the present, in a three to ten-year period, or indefinitely.

Commercial background checks are limited by the Fair Credit Reporting Act (FCRA) in how far back they

can look for offenses, prohibiting checks that look back farther than seven years. Massachusetts looks

back farther, using their state law enforcement agency checks.

January 2019 | Joint Transportation Committee | Regulation of TNCs: Policy Guide

Frequency of checks. There are differences in how often criminal background histories are required to

be checked varying from once a year (e.g. Michigan) to every five years (e.g. Colorado). Some states

only require a background check be conducted prior to becoming a TNC-affiliated driver.

Driving time. There are some states that put limits on the number of hours that a driver can operate a

vehicle within a set amount of time. For example, Colorado does not allow TNC drivers to operate their

vehicle for more than 12 consecutive hours and Massachusetts and New Mexico do not allow drivers to

operate their vehicles for more than 12 hours in any 24-hour period. However, as drivers often drive for

multiple services and platforms, enforcement is difficult.

VEHICLE REQUIREMENTS

Most states require basic vehicle inspections, except Connecticut which allows self-certification. Some

states allow the TNC to conduct the inspection, while others require licensed mechanics. Inspection

frequency varies by state, with most requiring an annual inspection. Most states require an inspection

prior to operating as a TNC, while others require the inspection to be completed within the first 90 days

of operating as a TNC-affiliated vehicle (e.g. Arkansas). Most states require that TNC-affiliated vehicles

meet the state’s motor vehicle safety and emissions requirements for private motor vehicles.

FEES

Whether and how fees are levied varies by state: many states don’t mention fees at all, some states

charge a flat fee to each TNC, while other states have implemented per trip fees. For example:

▪ Arkansas charges an annual $15,000 TNC permit fee to each TNC company.

▪ Kentucky charges an annual TNC fee of $250 and a $30 annual license fee for TNC vehicles.

▪

New Jersey has an annual TNC permit fee of $25,000, plus a $0.50 per trip surcharge and a $0.25

per shared trip surcharge.

▪ Massachusetts charges a per-trip assessment of $0.20, half of which goes to a Transportation

Infrastructure Enhancement Fund, the other half of which is distributed proportionately to each city

and town based on number of trips originating there.

▪ South Carolina requires a local assessment fee of 1% of gross trip fares which is distributed to cities

where rides originated, after the state covers expenses associated with collecting the fee.

▪ Colorado charges each TNC an annual fee of $111,250.

Per trip or per vehicle fees allow the revenue to scale with growth and do not create a barrier to entry

for smaller companies. They also allow government revenues to grow with increased enforcement and

regulatory responsibilities alongside demand for TNC services.

OTHER REGULATORY AREAS

There are some clauses of note in certain state’s laws. For example:

▪ Arkansas, as well as several other states, specifically prohibit TNCs from collecting cash fares.

▪ California and Indiana specifically prohibit TNC companies from disclosing passengers’ personally

identifiable information without knowingly consenting.

January 2019 | Joint Transportation Committee | Regulation of TNCs: Policy Guide

▪ Kentucky specifically prohibits cities and counties from levying taxes or fees, aside from an annual

license fee, which cannot exceed $30.

▪ As part of Georgia’s TNC regulation, they also pre-empted administration and regulation over taxi

services and dispatchers.

Washington State Law

INSURANCE

Nationally, 49 states have passed some sort of specific TNC regulation. Of those, four states, including

Washington, passed legislation that only addresses insurance requirements. Washington passed SB 5550

in 2015. Chapter 48.177 RCW Commercial Transportation Services defines TNCs as commercial

transportation services and outlines insurance coverage requirements.

There are different requirements between (A) when the driver is logged into the digital network and

looking for the first or next ride to accept and (B) during a ride (Exhibit 1). A ride begins when a driver

accepts a requested ride through use of a digital network or software application, continues while the

driver transports the passenger, and ends when the passenger departs from the vehicle. When a driver is

not using their vehicle to drive for the TNC, their private-passenger auto insurance policy is in effect.

Exhibit 1. Washington State Insurance Requirements for TNCs and TNC Drivers

PRIOR TO ACCEPTING A RIDE

DURING A RIDE

Liability Coverage

$50,000/person for bodily injury

$100,000/accident for bodily injury of all persons

$30,000 for damage to property

Combined Single Limit coverage of $1,000,000

dollars for death, personal injury, and property

damage

Personal Injury Protection & Underinsured Motorist

In line with existing motor vehicle insurance law

that allows for the insured to reject the coverage

options.

Underinsured motorist coverage in the amount of

$1,000,000

Personal Injury Protection & Underinsured Motorist

In line with existing motor vehicle insurance law that allows for the insured to reject the coverage options.

Note: For-hire vehicle operators are currently required under state law to obtain a surety bond or liability insurance policy

with the following minimum coverage: $100,000 per person, $300,000 per accident, and $25,000 for property damage

(liability insurance) and $25,000 for property damage (surety bond).

Source: Chapter 48.177 RCW and Chapter 46.72 RCW; accessed July 9, 2018.

January 2019 | Joint Transportation Committee | Regulation of TNCs: Policy Guide

TAXES

Most TNC-affiliated drivers are considered self-employed (i.e. running their own business via the TNC)

and therefore are subject to Washington State business taxes. This is in addition to, and separate from,

the business taxes that the TNC itself pays.

▪

Business and Occupation (B&O) Tax is a tax on a business’ gross income and applies to a wide

variety of business activities, including ‘service and other business activities.’ The ‘service and other

business activities’ categorization covers any business activity not specifically named in statute.

▪

Public Utility Tax is a tax on a business’s gross income, which in the case of a TNC is a driver’s gross

ride revenue. A driver either files under the Urban Transportation or Motor Transportation category,

which have different rates and definitions.

CLASSIFICATION

DEFINITION

RATE

Motor Transportation Business

A business that operates a motor vehicle that conveys

people or property for hire. (excludes Urban

Transportation Business and conveyance of logs)

1.926%

(.01926)

Urban Transportation Business

A business that operates any vehicle to convey people or

property for hire either:

within one city’s limits,

within five miles of one city’s limits, or

within and between cities, whose city limits are less

than five miles apart, or within five miles of those

cities.

0.642%

(.00642)

FOR-HIRE VEHICLES

State law regulating for-hire vehicles is outlined in Chapter 46.72 RCW (Transportation of Passengers in

For-Hire Vehicles). State law has been silent on whether TNCs are specifically covered by this law.

Definition. For-hire vehicles are broadly defined under Chapter 46.72 to include “all vehicles used for

transportation of passengers for compensation” with certain exclusions:

▪

Auto stages.

▪

School buses operating exclusively under a contract to a school district.

▪

Ride sharing vehicles, defined in Chapter 46.74 RCW as carpool or vanpools between home and

places of employment, education, or other institutions. The current definition does not include TNCs in

the exclusion.

▪

Limousine carriers.

▪

Vehicles used by nonprofit transportation providers for elderly or handicapped persons and attendants.

Chapter 82.04 RCW and Chapter 458-20-224 WAC

Chapter 82.16.010 RCW

January 2019 | Joint Transportation Committee | Regulation of TNCs: Policy Guide

▪

Vehicles used by auto transportation companies.

▪

Vehicles used to provide courtesy transportation at no charge to and from parking lots, hotels, and

rental officers.

▪

Vehicles used by charter party carriers of passengers and excursion service carriers.

While the Utilities and Transportation Commission (UTC) regulates many for-hire vehicle categories

(excluding taxi and for-hire vehicles), the Department of Licensing (DOL) generally regulates limousines

that transport up to 14 persons.

Permit. For-hire operators are required to obtain a permit from the Director of Licensing, if they are

regulated by cities or counties, in accordance with Chapter 81.72 RCW. DOL waives the business permit

fee (one-time charge of $110) but requires the vehicle permit fee ($55 annually).

Local regulatory powers. Cities, towns, counties, and port districts of the state may license, control, and

regulate all for-hire transportation services that operate within their respective jurisdictions.

This local

regulatory power includes:

▪ Regulating entry into the business of providing for-hire vehicle transportation services;

▪ Requiring a license to be purchased as a condition to operate a for-hire vehicle and the right to

revoke, cancel, or refuse to reissue a license for failure to comply with regulatory requirements;

▪ Controlling the rates charged for providing for-hire vehicle transportation service and the manner in

which rates are calculated and collected, including the establishment of zones as the basis for rates;

▪ Regulating routes and operations of for-hire vehicles, including restricting airport access;

▪ Establishing safety and equipment requirements; and

▪ Any other requirements adopted to ensure safe and reliable for-hire vehicle transportation service.

Insurance. State law requires that every for-hire operator carry single limit insurance coverage of

$325,000 or split limit coverage with minimums of $300,000 for all persons killed or injured by an act of

negligence, $100,000 for death or personal injury by one person, and $25,000 for property damage to

property of any person other than the insured.

Joint regulations. Departments, cities, counties, or port districts may enter into cooperative agreements

with other cities, towns, counties, or port districts to jointly regulate for-hire vehicles.

Fees. Any fees received by the State under the for-hire provisions must be deposited into the highway

safety fund for use in carrying out licensing and regulatory activities of the for-hire provisions.

Chapter 46.72.160 RCW

Chapter 46.72.050 RCW, Chapter 46.72.040 RCW.

January 2019 | Joint Transportation Committee | Regulation of TNCs: Policy Guide

Local Regulations

In the absence of clear statewide regulation on TNC

operations, dozens of cities, two counties, and several

airports outline TNC requirements for companies and drivers.

These requirements range from a memorandum of

understanding (MOU), such as in Spokane, to formal chapters

in municipal code. There is also variation in the scope of

existing municipal codes; chapters can be as simple as stating

broad requirements with few details, such as in Vancouver

and Kelso, or may include many nuances and sub-sections

such as in Seattle and Tacoma. Exhibit 2. shows counties,

cities, and airports that regulate TNCs through local

ordinance or operating agreements.

Exhibit 2. TNC Regulation in Washington State

Source: Local ordinance and operating agreements, 2018; BERK, 2018.

In December of 2018, Spokane City

Council passed an ordinance

regarding for-hire vehicle regulations.

The ordinance (Ordinance No.

C35710) will enact a new chapter

10.34A of the Spokane Municipal

Code that addresses transportation

network companies. The proposed

chapter can be found starting on page

220 of the City Council agenda from

December 10, 2018.

January 2019 | Joint Transportation Committee | Regulation of TNCs: Policy Guide

LOCAL REGULATION COMPONENTS

Many local ordinances and operating agreements follow a similar structure and scope which covers

licensing and fees, background checks, vehicle and insurance requirements, operating requirements, and

enforcement. Some ordinances and agreements also include nondiscrimination policies and outline varied

auditing and penalty powers.

Licensing and Fees

Licensing processes and fees vary by jurisdiction. Cities can require any combination of a business license

for the driver, a TNC regulatory license for the company, a vehicle license, and/or a driver’s license.

Business Licenses. At the time of this review, business license regulations varied across the state. During

the course of this study, requirements imposed by EHB 2005, adopted in 2007 and codified in Chapter

35.90 RCW, were being implemented statewide to standardize business license regulations across the

state. By January 2019, cities are required to adopt draft model ordinance provisions. Key provisions of

the model ordinance include:

▪

Cities and towns may only impose licensing requirements upon individuals or companies that engage

in business within the city. For the transportation of passengers, most cities define “engaging in

business” as the location of pickup. In interviews, a few jurisdictions also looked to include drivers that

dropped off in the city or drivers that lived in the city.

▪

For businesses not located within city limits, there is a minimum threshold for business activity within

city limits of $2,000. Below this threshold, cities must either exempt businesses from the licensing

requirements or require licenses at no cost to the business.

The model ordinance does not recommend a specific common business license fee.

TNC Regulatory License and Fees. Most cities charge the TNC a fee, described either as an

administrative fee, application review fee, or TNC license fee. Fees range from $200 to $2,000 and are

either a flat rate or based on the number of drivers operating in a city. Everett, Pasco, Richland,

Longview, and Pullman all charge based on the number of drivers with fees ranging from $300 to

$2,000. Seattle and King County charge per-trip fees of 14 cents and 23 cents, respectively.

Driver Requirements and Background Checks.

To operate as a TNC-affiliated driver, all cities require that a driver have proof of vehicle insurance,

proof of motor vehicle registration, a valid driver’s license, and be 21 years of age. There is some

variation among cities regarding how long a driver must have been licensed to drive, with some cities

requiring at least one year of experience (e.g. Vancouver, Yakima, and Longview). Yakima and Pasco

also require that drivers have proof of Unified Business Identifier (UBI) tax registration number.

Most cities require a TNC or third-party background check of local, state, and national criminal records

as well as publicly available national sex offender registries. Some cities reserve the right to further

screen drivers after an application has been made, such as in Tacoma and Everett. Disqualifiers for

drivers are fairly consistent and typically include felony convictions (e.g. assault, kidnapping, etc.), DUIs,

or other drug related offenses. Driving record disqualifications include three or more moving violations in

a twelve-month period and any major violations for reckless driving.

January 2019 | Joint Transportation Committee | Regulation of TNCs: Policy Guide

Background Checks. In the absence of state regulations, cities have different background check

requirements for TNCs. None of the cities require fingerprinting, and instead run reports using name, date

of birth, social security number, and driver’s license number; conduct a driver’s license validation; and

review a driving history abstract. They consult a variety of sources as shown in Exhibit 3 and define

disqualifying offenses in each ordinance.

Exhibit 3. Background Checks by Source

Local

Criminal

Databases

State

Criminal

Databases

National

Criminal

Databases

State Sex

Offender

Registries

National Sex

Offender

Registries

Bellingham, Everett, King County

Contract Cities, Lacey, Olympia,

Tacoma, Tumwater, Yelm

Kennewick, Pasco, Richland,

Longview, Pullman

Spokane, Yakima

Note: Codes in King County and Tacoma do not specify which sex offender registry to check, but do not allow registered sex

offenders to operate as for-hire drivers.

Source: Local city ordinances.

Vehicle Requirements

All cities require a vehicle inspection prior to operating as a TNC-affiliated vehicle, with the number of

items to be checked ranging from 19-28. Some cities require that the inspection be done by a certified

mechanic (e.g. Vancouver, Everett, and Yakima. Similarly, some cities have an age limit for vehicles,

typically less than ten years old (e.g. Vancouver and Yakima), while others specify the type of car and

number of doors (e.g. Everett). Some cities require that TNCs submit records of annual inspections (e.g.

Spokane). Longview, which is close to the border with Oregon, accepts vehicle inspections conducted in

Oregon or Washington. Everett accepts a Seattle or King County vehicle inspection in lieu of their 28-

point inspection.

Insurance Requirements

All cities must adopt minimum insurance requirements as outlined in Chapter 48.17 RCW. Vancouver is the

only city that does not reference this law. It has the following requirements while a vehicle is operating as

a TNC: $100,000/person for bodily injury, $300,000/accident for bodily injury of all persons, and

$25,000 for damage to property.

Operational Requirements

There is a fairly standard menu of options that cities choose from for operational requirements as shown

in Exhibit 4.

January 2019 | Joint Transportation Committee | Regulation of TNCs: Policy Guide

Exhibit 4. Menu of Operational Requirements Found in Local TNC Regulations and Operating Agreements

Source: Local city ordinances.

Data Sharing and Audits

City ordinances typically outline audit frequency, how many records can be audited, and how long TNCs

need to maintain records.

▪

Five cities allow audits of records twice a year and of up to 20 drivers. The frequency with which

other cities can audit records varies from one time per year to four times per year. Outside of

Seattle and King County all cities are limited to auditing no more than 20 driver records per year.

▪

Most cities reserve the right to inspect any record to investigate specific complaints.

▪

Most cities require TNCs to maintain records for one year. Everett has a six-year records retention

requirement.

Operational Requirement

Spokane

Vancouver

Everett

Yakima

Bellingham

Kennewick

Pasco

Richland

Longview

Pullman

Rates. Must disclose rates used or suggested compensation on its app

and/or website.

x x x x x x x x x x

Records. Maintain accurate and up-to-date records of all drivers

providing services through the Platform.

x x x x x x x

Method of Soliciting Rides. TNC drivers shall not solicit or accept street

hails.

x x x x x x x x x

Driver Information. The TNC’s software application must display driver

name and photo.

x x x x x x x x x

Vehicle information. The TNC’s software application must display the

make, model, and license plate of vehicle.

x x x x x x x x

Company identification. Must be marked to associate vehicle with TNC

by viewing front or rear.

x x

Vehicle Ownership. May only operate driver's personal vehicle.

Vehicle Condition. Must be in sanitary and safe condition for

transprotation of passengers.

Third-party operation. No third party can operate a TNC vehicle while

driver is logged in to the network of affiliated TNC.

Receipts. Must be provided if requested, can be electronic.

x x x x x x x

Driver Training. Must establish a driver-training program to ensure safe

operation of vehicle before offering service.

Customer Service. Must maintain a website that provides a customer

service telephone number and website.

Accessibility/Nondiscrimination. x

Zero Tolerance drug/alcohol policy. x x x x x x x x x

Maintain local registered agent. x x x x x x x x x

January 2019 | Joint Transportation Committee | Regulation of TNCs: Policy Guide

Enforcement

Cities differ in which department is responsible for licensing and administrative enforcement, including:

▪

Finance Department

▪

Licensing Office

▪

City Clerk

▪

City Manager

▪

Police Department

Cities that may not specifically call out TNCs in their municipal code may still have for-hire regulations

that could apply to TNCs and TNC drivers. For example, Walla Walla regulates for-hire vehicles without

specifically naming TNCs, but the code’s language is broad such that it may potentially apply to TNCs.

Other cities without taxi or for-hire regulations generally still maintain business license regulations, which

may apply to TNCs and TNC drivers.

Appendix D. Summary of Local TNC Requirements outlines the existing local TNC ordinances in

Washington State, excluding cities using regional approaches and airports, which are described in more

detail below.

Similarities between Ordinances and Operating Agreements across Jurisdictions

▪

Bellingham, Kennewick, Lacey, Longview, Olympia, Pasco, Pullman, Richland, Tumwater,

Yakima, and Yelm all have substantially similar ordinances.

▪

Kennewick, Pasco, and Richland are almost identical except for business license fees and

enforcement authority. Pasco also has slightly different driver’s license requirements, the number of

items listed in the vehicle inspection, and requirements on the visibility of the TNC logo on a vehicle.

▪

Longview and Pullman are almost identical, except for enforcement authority and the allowance

that vehicle inspections in Longview may be passed in Washington or Oregon.

▪

Vancouver and Kelso are almost identical and provide broad guidance on vehicle safety and

maintenance, driver background and training, and insurance requirements for TNCs and drivers. The

details of these municipal codes are described further in their administrative rules.

▪

Through December 31, 2018 Spokane allowed TNCs to operate in their city through Memoranda of

Understanding. The requirements for TNCs contained in the MOUs are substantially similar to

regulations in Bellingham, Kennewick, Lacey, Longview, Olympia, Pasco, Pullman, Richland, Tumwater,

Yakima, and Yelm. The City passed an ordinance in December of 2018 that will regulate TNCs in the

future. See text box on page 11.

REGIONAL APPROACHES

Jurisdictions in King, Pierce, and Thurston counties have adopted regional regulatory frameworks to

create seamless regulation of TNCs across geographically proximate locations. Each approach is based

on interlocal agreements that designate one jurisdiction to provide central administrative services, such as

issuing business and operating licenses, and take the lead on enforcing any rules.

January 2019 | Joint Transportation Committee | Regulation of TNCs: Policy Guide

King County and City of Seattle

King County and the City of Seattle partner to regulate the for-hire industry, including TNCs, in King

County through a cooperative agreement. Under that agreement, a division of labor exists where King

County historically has conducted all for-hire driver licensing (on behalf of both the County and the City)

and the City historically has conducted all for-hire vehicle-related licensing (on behalf of both the City

and County). In late 2014, King County and Seattle implemented new regulations that included licensing

TNCs, drivers, and vehicles. Since TNC drivers were closely associated with their respective vehicles, the

licensing of drivers and vehicles was consolidated into a combined license application process conducted

by King County (on behalf of both the County and the City), with vehicle inspections supported via a

central database and an approval process for certified mechanics created and maintained by the City.

Regulations in King County and Seattle are generally and intentionally aligned, and require the following

for TNC drivers, vehicles, and companies:

▪ TNC Drivers must obtain and annually renew a for-hire driver’s permit issued by King County, which

requires an annual criminal background check and driving history/DMV report review, successful

completion of driver training and testing (for initial license), a valid Washington State Driver’s

License, and payment of relevant fees. These application components are assembled and submitted

by a TNC on behalf of a driver. Drivers self-certify to the TNC that they are mentally and physically

able to perform the duties of a for-hire driver, and an acknowledgement is provided in the driver

application materials submitted to King County.

In addition, a TNC driver is required to hold a City of Seattle business license and may also be

required to have a business license in any other city the driver intends to conduct business.

▪

TNC Vehicles must receive an annual vehicle endorsement from King County. Vehicle endorsements

require successful completion of an annual vehicle safety inspection by a City-approved third-party

mechanic, and proof of vehicle registration (County-required). Vehicle safety inspection results are

entered into an online portal by the mechanics following an inspection. Vehicle information and

vehicle registration information are assembled and submitted by a TNC on behalf of a driver, along

with the driver’s for-hire permit application or separately if the driver is adding or replacing a

vehicle.

▪

TNCs must obtain a TNC license. King County coordinates the TNC licensing process for the County

and City. TNCs must pay a per trip TNC licensing fee that varies based on trip origin. If the trip

originates within Seattle, the City TNC fee applies; if the trip originates in unincorporated King

County or one of 16 contract cities, the County TNC fee applies. TNC fees help pay for licensing of

the company, drivers, and vehicles, and related regulatory and enforcement activity. In addition to

the per trip TNC license fee, a business license may be required in each city in which a TNC

operates.

King County also has an interlocal agreement with 16 other King County cities and the Port of Seattle,

including the Seattle-Tacoma International Airport. As part of that agreement, the participating cities

adopt King County Code Title 6.64 – Business Licenses and Regulations in substantially similar form or by

reference and King County provides TNC licensing services on their behalf, using the partnership with the

City of Seattle for vehicle licensing.

January 2019 | Joint Transportation Committee | Regulation of TNCs: Policy Guide

The cities contracting with King County include:

▪

Auburn

▪

Bellevue

▪

Burien

▪

Covington

▪

Enumclaw

▪

Federal Way

▪

Issaquah

▪

Kenmore

▪

Kent

▪

Kirkland

▪

Maple Valley

▪

Redmond

▪

Renton

▪

Sammamish

▪

SeaTac

▪

Shoreline

Every year since 2014, King County and Seattle have seen an increase in both approved driver permits

and vehicle endorsements. Exhibit 5 shows the number of driver permits and vehicle endorsements

approved each year, whether the driver or vehicle is approved to operate in King County only, Seattle

only, or both. The number of Uber and Lyft trips occurring each day in Seattle also increased during this

time by 235% from about 27,250 trips a day in 2015 to 91,250 trips a day in 2018.

Exhibit 5. Annual TNC Driver Permits and Vehicle Endorsements Approved (2014-2017)

Source: King County, 2017. “Annual Report: Taxi, For-hire Vehicle & Transportation Network Company Regulation in King

County”.; BERK, 2018.

King County & Seattle Regulations

TNC regulations included in King County Code Chapter 6.64 and Seattle Municipal Code Chapter 6.310

are summarized below. The regulations are nearly identical with small differences for fees and business

licenses.

▪

King County’s TNC regulations are outlined in King County Code Chapter 6.64 – Business Licenses

and Regulations. Chapter 64 covers for-hire transportation defined as taxicabs, for-hires, and TNCs.

The regulations were created to mirror regulations in Seattle, which was the first jurisdiction in

Washington State to regulate TNCs, beginning in 2014.

Gutman, David. 2018. “How popular are Uber and Lyft in Seattle? Ridership numbers kept secret until recently give us a

clue.” The Seattle Times. November 5. https://www.seattletimes.com/seattle-news/transportation/how-popular-are-uber-and-

lyft-in-seattle-ridership-numbers-kept-secret-until-recently-give-us-a-clue/.

TNC Driver Permits Approved TNC Vehicle Endorsements Approved

8,929

18,199

27,842

2014 2015 2016 2017

9,185

18,658

28,758

2014 2015 2016 2017

January 2019 | Joint Transportation Committee | Regulation of TNCs: Policy Guide

▪

Seattle’s TNC regulations are outlined in Seattle Municipal Code Chapter 6.310 – Taxicabs and For-

hire Vehicles. The code covers licensing of taxicabs, for-hires, and TNCs. The stated purpose of these

regulations is to increase safety, reliability, cost-effectiveness, and the economic viability and

stability of privately-operated for-hire vehicle and taxicab services within the city.

Licensing Authority

King County’s Records and Licensing Services Division Director is responsible for licensing TNC companies,

drivers, and vehicles who wish to operate in the following areas:

▪

All of unincorporated King County.

▪

The Port of Seattle, including Sea-Tac Airport (which requires additional Port authorization).

▪

Seattle and the 16 cities listed above (See Appendix C. Jurisdictions Adopting King County Code

for all cities except Seattle).

Seattle’s Finance and Administrative Services (FAS) Director is responsible for providing a vehicle safety

inspection database, processes for approving ASE certified mechanics and application dispatch systems,

collecting quarterly data reports and fees from TNCs, and issuing Seattle business licenses for TNCs and

affiliated drivers.

TNC Business, Operational Requirements, and Fees

TNCs operating in King County and/or Seattle must have a TNC regulatory license and the appropriate

city business license. TNCs must apply for a TNC license annually, and as part of the application must

include the business name and address, the business entity, trade dress, evidence of required insurance,

and documentation of dispatch rate structure. If the TNC intends to become an approved provider of

training or testing they must submit their training and testing material for approval. The companies

providing criminal background reports and driving records to TNCs must also be submitted for approval.

At initial application and annually thereafter, the TNC must obtain approval of their application dispatch

system.

The King County Records and Licensing Services Division Director has mandatory and discretionary

authority to deny any new or renewal TNC licenses. TNC licenses are denied if a TNC is determined to

have provided unqualified drivers access to their dispatch system; if the TNC fails to submit required

insurance evidence; if the TNC submits an application with incomplete information or omissions of material

fact or information determined to be classified as a misstatement; or if the rate structure is not

transparent. TNC licenses may be denied for failure to pay outstanding penalties against the company or

if the company has failed within five years of the date of application to meet any of the TNC operating

requirements (King County Code Chapter 6.64 – Business Licenses and Regulations).

TNC Operational Requirements

TNCs have operational requirements that must be met to operate in Seattle and/or King County. An

overview of the key provisions follows. See the relevant codes for the full list of requirements.

King County, https://www.kingcounty.gov/depts/records-licensing/licensing/taxi-for-hire-transportation-networks.aspx

January 2019 | Joint Transportation Committee | Regulation of TNCs: Policy Guide

▪

TNCs must have a valid TNC license.

▪

TNCs must have a valid business license for the cities in which they operate.

▪

TNC must certify that affiliated vehicles meet insurance standards and maintain the TNC trade dress

while active on the application dispatch system.

▪

TNCs must provide passengers with a picture of the driver and the vehicle license plate number prior

to trip initiation.

▪

TNCs must maintain a nondiscrimination policy that complies with applicable federal, state, and local

laws that prohibit discrimination.

▪

TNCs must allow passengers to indicate the need for a wheelchair accessible vehicle and connect

passengers to an accessible vehicle service.

▪

TNCs must maintain a lost-and-found system.

▪

TNCs must keep and maintain records for two years, submit data on a quarterly basis, and allow the

City or County to carry out audits and inspections.

▪

TNCs must pay a 10 cent per ride surcharge to offset operational costs associated with wheelchair

accessible services. The surcharge is deposited into a City or County Wheelchair Accessible Services

Fund, based on the trip origin.

▪

TNCs must pay a per ride fee, submitted quarterly, to cover the cost of enforcement and regulation

of TNC licensing, vehicle endorsement, and driver licensing.



In King County, TNCs must pay a fee of 23 cents per ride for all trips originating in

Unincorporated King County and municipalities that contract with King County for for-hire

regulatory services, including licensing TNCs.



In Seattle, TNCs must pay a fee of 14 cents per ride for all trips originating in Seattle.

Seattle Business License Fee

In Seattle, TNCs and TNC drivers need a Seattle business license. The annual cost of a Seattle business

license is based on annual Seattle taxable revenue and ranges from a low of $55 for businesses making

less than $20,000 to a high of $2,000 for businesses making over $5,000,000 (pro-rated business

licenses are available after July 1).

TNC Driver Requirements

To be licensed in King County, TNC drivers are required to obtain a for-hire driver’s license and vehicle

endorsement through King County. All TNC for-hire driver applications must be submitted by the TNC (not

the driver). The application submitted to the King County Records and Licensing Services Division must

include documentation that drivers and vehicles meet the for-hire license requirements (see next page).

https://www.seattle.gov/business-regulations/taxis-for-hires-and-tncs/transportation-network-companies/tnc-companies

January 2019 | Joint Transportation Committee | Regulation of TNCs: Policy Guide

Prior to issuing a TNC driver permit, King County issues a temporary permit (authorization to drive

pending approval and issuance of a for-hire driver’s permit) for applicants that have:

▪

Filed a complete application and successfully met the application requirements to the satisfaction of

the TNC, including:



Passed a criminal background check and driver history report reviewed by the TNC.



Completed driver training and passed an exam approved by King County (see Driver Testing

and Training below).



Successfully completed a vehicle safety inspection.

The temporary permit is valid for 60 days and effective upon receipt of the driver’s completed

application submitted by the TNC.

The King County Records and Licensing Services Division issues the annual for-hire driver permit and

vehicle endorsement decal once the application is reviewed and approved. The review includes an

analysis of submitted background checks and driving records, driver license, vehicle safety inspection

validation, and vehicle registration documentation.

For-hire driver’s license qualifications

Drivers must:

▪

Be at least 21 years of age.

▪

Possess a valid Washington state driver’s license. Active military and full-time matriculated student

applicants may be authorized to drive with an out-of-state driver’s license.

▪

Self-certify physical and mental fitness to drive (with director authority to require medical doctor

certification if deemed necessary).

▪

Meet one-time testing and training requirements (see below).

▪

Pass a criminal background check and driving history/abstract review.

▪

Have a TNC vehicle endorsement for their vehicle and must allow King County and/Seattle to inspect

vehicles upon request.

▪

Carry proof of affiliation with a licensed TNC whenever active on the network.

▪

Not operate unaffiliated with a TNC to transport passengers and must accept trips exclusively via

the application dispatch system.

▪

Only accept payments made electronically through the TNC application dispatch system.

▪

If operating in Seattle, drivers must hold a valid Seattle business license.

▪

In Seattle, drivers must immediately notify the TNC and the Seattle Police Department if they are the

victim of a crime.

January 2019 | Joint Transportation Committee | Regulation of TNCs: Policy Guide

Driver Testing and Training

Before receiving an initial TNC driver permit, drivers must complete driver’s training and pass an

examination.

Training. Drivers are required to complete driver’s education and testing. The training must include

completion of the National Safety Council’s Defensive Driving Course and at least one additional driver

training program approved by King County on behalf of the County and Seattle FAS. TNCs either

provide or help pay for driver training programs.

Examination. Drivers must pass an examination administered online by King County, or by an approved

TNC or third-party vendor. The examination must test the following:

▪

Driver-Passenger relations.

▪

Knowledge of requirements and laws for operating a TNC vehicle.

▪

Ability to understand oral and written directions in English.

▪

Knowledge of vehicle safety requirements.

▪

Knowledge of the geography of Seattle, King County, and the surrounding region.

▪

TNC vehicle endorsement and driver regulations.

▪

Knowledge of local public and tourist destinations and attractions.

▪

Knowledge of risk factors for crimes against drivers.

▪

Emergency procedures.

▪

Personal safety equipment.

Criminal Background Checks

All TNC drivers are required to undergo a criminal background check at initial application and annually

to renew their permit. TNCs must review the background checks to ensure applicants are suitable and

meet the background standards, submit the results as part of the for-hire driver license application, and

maintain records of them.

The background checks may be conducted one of two ways: 1) by fingerprinting the driver, with prints

forwarded to the FBI or Washington State Patrol for investigation or 2) without fingerprinting by a third-

party vendor approved by King County on behalf of King County and the director of Seattle FAS.

Third-party background check companies that contract with TNCs to provide criminal background checks

and driving history reports must be approved by King County and Seattle.

TNCs are required to report criminal offenses by drivers that have bearing on the driver’s fitness to

operate a TNC vehicle.

The background check must include a check of local, state, and national databases (including the national

sex offender database) and review at least five years of history. Disqualifying offenses include, but are

not limited to: offenses involving a vehicle, such as hit-and-run or driving under the influence; being

registered as a sex offender; and felonies, such as assault, fraud, or kidnapping.

January 2019 | Joint Transportation Committee | Regulation of TNCs: Policy Guide

Driving History/Abstract Review

In addition to a criminal background check, TNCs must provide a driving record report as part of the for-

hire driver license application. TNCs obtain driving records from third-party vendors approved by King

County on behalf of the County and Seattle FAS. TNCs are required to review the driving record checks

to ensure applicants are suitable and meet the driver standards, submit the results as part of the for-hire

driver license application, and maintain records of them.

TNC Vehicle Requirements

Endorsement

All TNC vehicles must submit an application for a TNC vehicle endorsement to King County as part of the

driver/vehicle application process. King County processes applications for vehicle endorsements as part

of the TNC driver permit process. As with a TNC for-hire driver’s permit, vehicle endorsement applications

are submitted by the TNC. The application must include:

▪

Evidence the vehicle is insured.

▪

Evidence of for-hire driver’s license.

▪

Proof the vehicle has passed the uniform vehicle safety inspection.

▪

Proof that the vehicle model year is no more than 10 years old (Seattle only).

▪

A copy of the actual vehicle registration.

The TNC is responsible for requiring that vehicles pass inspection and for maintaining records of vehicle

inspection.

In King County, TNC vehicles are defined as passenger vehicles, and require the driver to be the

registered owner. This requirement did not anticipate drivers who may not be the registered owner of a

vehicle but have access as a spouse or dependent, short term rental vehicles, or company owned/fleet

vehicles. ReachNow, for example, has a ride-hailing service that uses the same fleet vehicles that

ReachNow members can reserve to drive themselves. The County is working to address this limitation by

removing the requirement that the driver be the registered owner.

Insurance

TNCs are required to maintain commercial insurance coverage that at a minimum meets the requirements

of Chapter 48.177.010 RCW and Chapter 46.72.050 RCW (surety bond). Insurance requirements are

described in more detail in the Washington State Law, Insurance section.

Additionally:

▪

Policies must name King County and the City of Seattle as an additional insured, based on where

they are licensed to operate.

▪

King County and Seattle require minimum underinsured motorist insurance of $100,000 per person

and $300,000 per accident.

▪

Policies must be from an admitted carrier with an AM Best Rating of not less than B VII or show

evidence that an exemption has been met allowing for use of a surplus line insurer with an AM Best

Rating of not less than B+ VII.

January 2019 | Joint Transportation Committee | Regulation of TNCs: Policy Guide

▪

Driver contracts are required to include specific language and acknowledgement per Chapter

48.177.010 RCW.

▪

TNC drivers are responsible for maintaining personal vehicle liability insurance meeting minimum

state law liability insurance requirements including notifying their carrier that they are driving

commercially.

Data Reporting

All TNCs are required to maintain, and retain for two years, accurate and complete records, and to

submit quarterly electronic data reports for all requested trips in Seattle and King County. This data

includes:

▪

Total number of rides provided by each TNC.

▪

Percentage or number of rides picked up in each ZIP code.

▪

Pickup and drop-off ZIP codes of each ride.

▪

Percentage by ZIP code of rides that are requested but not provided.

▪

Number of collisions, including the name of the affiliated driver, vehicle identification, collision fault,

injuries, and estimated damage.

▪

Number of requested rides for an accessible vehicle.

▪

Reports of crimes against drivers.

▪

Records of passenger complaints.

▪

Any other data identified by King County or Seattle to ensure compliance.

To highlight similarities and differences among regulations of taxi, for-hire vehicles and TNCs, a

comparison of the Seattle regulations is provided in Exhibit 6.

King County and Seattle Regulations in Practice

In practice, the TNCs do the initial work required of a TNC driver by collecting application materials,

reviewing the materials, and submitting application packets to King County for candidates deemed

suitable by the TNC. The TNC takes the following steps before submitting application packets

electronically for a for-hire driver’s permit and vehicle endorsement:

▪

Collect a driver’s required application information.

▪

Run, review, and pay for a driving history report and criminal background check report.

▪

Provide and pay for online driver training and testing.

▪

Require proof of completing the National Safety Council’s Defensive Driving Course (4-hour DDC)

– this must be completed within the first 60 days of the initial application only.

▪

Collect proof of an annual vehicle safety inspection and insurance.

King County reviews all application materials before making a licensing decision.

January 2019 | Joint Transportation Committee | Regulation of TNCs: Policy Guide

Exhibit 6. City of Seattle and King County Regulations for Taxis, For-Hire Vehicles, and TNCs

TAXIS

FOR-HIRE VEHICLES

TNCS

Association

(Organization

affiliation)

Must be licensed and affiliated with a

single licensed taxi association.

Must be licensed and

affiliated with a single for-

hire company.

Must be licensed and affiliated with a TNC.

TNC drivers and vehicles may affiliate with

multiple TNCs and operate simultaneously on

those TNCs.

Vehicle Marking

Vehicles must be painted one solid

color with signs or lettering that

include the words taxi, cab, or

taxicab.

Must meet taxi association’s approved

color scheme.

May use vehicle lighted top light.

Vehicles must be painted

more than one color.

Must be clearly marked as

“flat rate” and cannot be

marked with the words “taxi,”

“cab,” or “taxicab.”

May not use vehicle top

lights.

Maintain TNC trade dress while active on

TNC dispatch system.

May not use vehicle top lights.

Rates/Fares

City and County set rates for fares,

per mile or per minute, recorded by

taxi meter.

Taxis may operate on an approved

application dispatch system

(smartphone “app”). If trip is provided

through the app, taxi meter is not

engaged.

Application dispatch systems are

subject to the same requirements,

including fare transparency, as those

used by TNCs., and include the same

rate flexibility.

Charge a flat rate per trip,

rather than metered fare. No

meter inside the vehicle.

Rates are filed annually.

Rate books are required to

be in the vehicle.

For-hire vehicles may operate

on an approved application

dispatch system. If trip is

provided through the app,

rate book does not apply.

Application dispatch systems

are subject to the same

requirements, including fare

transparency, as those used

by TNCs., and include the

same rate flexibility.

Must provide written documentation or

demonstration on the application showing

rate structure transparently to a rider prior to

confirming a ride.

Total fare or fare range must be displayed

before confirming a ride

Rate by distance or time must be clearly

displayed before confirming ride on the app

Application dispatch system must be reviewed

and approved at initial company application

and annually.

Rates may fluctuate as long as they are

transparent to the rider prior to accepting the

ride.

January 2019 | Joint Transportation Committee | Regulation of TNCs: Policy Guide

TAXIS

FOR-HIRE VEHICLES

TNCS

Taximeter

Must be equipped with a taximeter

and receipt-issuing mobile data

terminal or receipt-issuing application

dispatch system.

N/A

Business License

Seattle business license required for

taxi associations and drivers, renewed

annually.

Seattle business license

required for drivers, renewed

annually.

Seattle business license required for company

and driver, renewed annually.

Association/Company

Regulatory License

Association license and fee (City and

County)

Company fee (County only)

TNC license (City and County)

Driver License

Valid Washington driver’s license required (exceptions for students and active military).

For-hire driver’s license required. The City contracts with King County for taxi, for-hire, and TNC driver licensing.

Vehicle License

Vehicles must operate under medallion system with established caps that

limit the number of medallions issued.

Vehicles must have TNC Vehicle Endorsement.

No cap on the number of vehicles.

Payment Options

Cash, credit card, taxi scrip, contract/account.

Application dispatch system only (electronic

only).

Ride requests

Can use dispatch system, be hailed from the street, or pre-arranged via

an app.

Must use online-enabled TNC app or platform

to connect passengers with drivers.

Criminal Background

Checks

Required of drivers and vehicle owners.

Background checks may either be 1) conducted with fingerprints

forwarded to the FBI and Washington State Patrol (WSP) or 2)

conducted by an approved third-party vendor.

Required of drivers.

Background checks may either be 1)

conducted with fingerprints forwarded to the

FBI and WSP or 2) conducted by an

approved third-party vendor.

Driver Record Checks

Required at initial application and annually.

May be provided by Washington State Department of Licensing (driver abstract) or by an approved third-party vendor.

Driver Training and

Testing

Drivers must complete driver’s training and pass an examination administered by King County or by an approved taxi

association, for-hire vehicle company, TNC, or third-party vendor.

January 2019 | Joint Transportation Committee | Regulation of TNCs: Policy Guide

TAXIS

FOR-HIRE VEHICLES

TNCS

Insurance

Requirements

Minimum bodily injury liability limits: at least $100,000 per person,

$300,000 per accident, $25,000 property damage.

Insurance minimums per Chapter 48.177

RCW.

Prior to accepting ride: minimum limits of at

least $50,000 per person, $100,000 per

accident, and $30,000 for property damage.

During ride: combined single limit coverage of

$1,000,000 and underinsured motorist

coverage in the amount of $1,000,000.

Uninsured motorist limits: $100,000 per person, $300,000 per accident. (For TNCs, only applies while active on TNC

dispatch system.)

Vehicle Requirements

Pass uniform vehicle safety inspection by a City-approved mechanic.

<10 years old (Seattle only; currently no age restriction for County.)

Equipped with monitored silent alarm system and a monitored GPS.

TNC vehicle endorsement, renewed annually.

Data Reporting

Taxi associations, for-hire vehicle companies, and TNCs must maintain and retain records for two years, submit quarterly

electronic data reports for all requested trips in the City and County.

Wheelchair

Accessibility

Must pay 10 cents per trip to City or County Wheelchair Accessible Services Fund. Used to offset higher operational costs of

wheelchair accessible taxi ("WAT") services for owners and operators.

Alcohol/Drug Use

Zero-tolerance policy.

Antidiscrimination

Discriminatory charges, rebates, or reduced fares (except by contract)

are not allowed.

Drivers cannot discriminate against passengers or potential passengers

based on geographic endpoints of the ride, race, color, national origin,

religious belief/affiliation, sex, disability, age, or sexual

orientation/identity.

Rating platform may not be based on

unlawful discrimination. Drivers cannot

discriminate against passengers or potential

passengers based on geographic endpoints

of the ride, race, color, national origin,

religious belief/affiliation, sex, disability,

age, or sexual orientation/identity.

Sources: King County Code 6.64; 2014 City Ordinance 124524; Seattle Municipal Code 6.310; City of Seattle Department of Finance and Administrative Services

Taxicab Information Overview; For-Hire Vehicle Information Overview, accessed December 2018.

January 2019 | Joint Transportation Committee | Regulation of TNCs: Policy Guide

Tacoma and Unincorporated Pierce County

The declared purpose of Tacoma’s for-hire regulation is to provide for the safe, fair, and efficient

operation of for-hire vehicles. The City considers for-hire vehicles part of its transportation system and

regulates them to ensure public safety, provision of a public good, and to promote convenience for the

public. Tacoma’s Municipal Code Chapter 6B.220 For-Hire Regulations is summarized below.

Pierce County accepts City of Tacoma licensing for TNCs, drivers, and vehicles wanting to operate in

unincorporated Pierce County, as outlined in Pierce County Code Chapter 5.26 For-Hire Transportation.

Licenses and Fees

TNCs are required to have a TNC license and Tacoma business license to operate in the city. TNC drivers

are required to maintain a for-hire driver’s license, for-hire vehicle license, and current City business

license while operating within the city limits.

▪

TNC License. To operate in Tacoma, each company needs a TNC license, which costs $15,000 per

year and can be paid in quarterly installments. The City has the ability to change the fee as well as

impose additional fees to cover continuing administrative and regulatory costs related to for-hire

drivers and vehicles operating in Tacoma. Currently the $15,000 fee is based on the number of

drivers operating in the city.

▪

City of Tacoma Business License. Each TNC and driver is required to have a business license to

operate in Tacoma. TNCs pay their business license fee based on gross income:

▪

$25 if under $12,000

▪

$90 if $12,000 - $250,000

▪

$250 if over $250,000

TNCs and Tacoma recently collaborated to streamline the process for drivers. In a driver’s first year,

TNCs submit new driver information to Tacoma’s Tax and License Division on behalf of the driver,

with a $25 administrative fee. Within five days the City sends drivers a welcome letter with

information about renewing next year’s business license. Renewal fees are based on the gross

income amounts above.

▪

For-hire Vehicle License. Each vehicle owner must file a for-hire vehicle license application with the

City at no cost to the driver. A letter from the TNC is required indicating that the driver is authorized

to affiliate with the TNC and that all for-hire vehicle requirements have been met. The vehicle license

must be renewed each year and expires on December 31.

▪

For-hire Driver License. Each TNC driver must have a for-hire driver license that is renewed every

two years. TNC drivers are not required to have a for-hire driver identification card or for-hire

vehicle endorsement, as long as the TNC application dispatch system provides a picture of the driver

and vehicle prior to the ride being accepted.

January 2019 | Joint Transportation Committee | Regulation of TNCs: Policy Guide

▪

Accessible Services Fund/Per-trip fees. Tacoma charges a 10 cent per trip fee for all rides

originating in the city that do not meet the criteria of an accessible for-hire vehicle.

Fees are paid

quarterly by the TNC and help fund additional accessible for-hire vehicles.

Driver Requirements

▪

21 years of age or older.

▪

Self-certify their physical and mental fitness for acting as a for-hire driver.

▪

United States citizen or be authorized to work in the United States.

▪

Valid Washington State driver’s license (with exemptions for students, military, or part time

residents).

▪

Complete an online defensive driving course and an online City of Tacoma exam that covers

knowledge of:



The for-hire chapter requirements.



Vehicle safety requirements.



Risk factors for crimes against for-hire drivers, emergency procedures, and for-hire equipment

for the for-hire driver’s personal safety.



The geography of City of Tacoma, Pierce County and surrounding areas, and local public and

tourist destinations and attractions.

▪

Pass a full criminal background check through Washington State Patrol and Federal Bureau of

Investigation criminal databases or through a Director-approved third-party vendor, with a check

conducted each year.



Approved vendors at a minimum must: include local, state, and national databases; access at

least seven years of database history; and demonstrate competency in providing accurate

information.



Proof of a criminal background check does not preclude the City from conducting a separate

background check on the applicant.

▪

Never had a for-hire driver’s, or driver's license suspended, revoked, or denied and documentation

that the applicants driving abstract from DOL was reviewed.

Operational Requirements

▪

Time limits. TNC drivers cannot engage in commercial activity for more than 12 hours in any 24-

hour period.

▪

Street hails. A TNC affiliated driver cannot transport a passenger hailing from the street or solicit

trips from the street.

A vehicle designated or modified to transport passengers in wheelchairs or other mobility devices where passengers can

board the vehicle via a ramp or lift.

January 2019 | Joint Transportation Committee | Regulation of TNCs: Policy Guide

▪

Accessibility. A TNC affiliated driver cannot refuse to transport a wheelchair that can be folded

and placed in the passenger, driver, or trunk compartment or a service animal used to assist persons

with disabilities, groceries, packages, or luggage, when accompanied by a passenger.

▪

Discrimination. A TNC affiliated driver cannot discriminate against passengers or potential

passengers on the basis of race, color, national origin, ancestry, religious belief or affiliation, sex,

disability, age, sexual orientation, marital status, gender identity, familial status, or military status.

▪

Zero Tolerance Drug and Alcohol Policy.

Vehicle Requirements

▪

Less than 10 years in age.

▪

Approved mechanic has issued a valid certificate of safety and a uniform vehicle safety inspection

was performed within the last license year.

▪

Consumer information must be displayed in the application.

▪

Rates are displayed in an application dispatch service, and the company website explains the rate

structure and is transparent to the rider prior to accepting the ride.

Insurance Requirements

Each TNC vehicle must have liability insurance meeting state law requirements, Chapter 48.177 RCW

Commercial Transportation Services.

Enforcement and Penalties

The Director of Tacoma’s Finance Department has supervision over the TNC regulations and laws are

enforced by the City’s Chief of Police.

▪

Any license can be revoked or suspended for violating the for-hire regulations.

▪

TNCs must submit an annual list of affiliated drivers operating in the city or consent to an audit of

records.

▪

For-hire vehicle licenses can be suspended for up to five days when three or more Class A violations

are found and a penalty issued to a TNC or for-hire driver. Class A violations include:



Driving without a valid for-hire driver’s license or knowingly allowing an affiliated driver to

drive without a valid for-hire driver’s license.



Driving without a valid for-hire vehicle endorsement or knowingly allowing an affiliated driver

to drive without a for-hire vehicle endorsement.



Driving without valid insurance or knowingly allowing an affiliated driver to drive without valid

insurance.



Operating a for-hire vehicle with a revoked or suspended for-hire vehicle or driver’s license or

allowing an affiliated for-hire driver to operate a vehicle with a revoked or suspended license.



Using a for-hire vehicle during a crime or knowingly allowing an affiliated for-hire vehicle to be

used in a crime.

January 2019 | Joint Transportation Committee | Regulation of TNCs: Policy Guide

▪

Class A violations can be charged a penalty of $500 and Class B violations can be charged a

penalty of $75. Class B violations are related to for-hire vehicle and driver standards, including:



Vehicle equipment not up to safety standards.



Allowing vehicle insurance to lapse.



Not maintaining a clean vehicle with working interior lights.

Cities in Thurston County

The Thurston County cities of Lacey, Olympia, Tumwater and Yelm jointly regulate TNCs through

an interlocal agreement. The agreement designates authority and responsibility for licensing, auditing,

and collecting TNC license fees to the City of Olympia on behalf of participating cities. As part of the

interlocal agreement, each of the cities adopted nearly identical ordinances regarding the administration

and enforcement of TNCs and TNC drivers. A summary of each city’s ordinances is in the table below.

Areas where the ordinances differ are:

▪

Reciprocity. Lacey and Tumwater specifically state that administration and enforcement can be

delegated to another jurisdiction when their ordinances are substantially similar, and that in those

cases a TNC license will be recognized by those partner jurisdictions. Olympia and Yelm do not

include these provisions.

▪

Business licenses are required in each city that a TNC company or driver wants to operate in,

regardless of TNC license reciprocity. The fees in each city differ.

▪

Enforcement authority is different in each city.

January 2019 | Joint Transportation Committee | Regulation of TNCs: Policy Guide

Exhibit 7. Ordinance Details of Thurston County Cities

LACEY

OLYMPIA

TUMWATER

YELM

Ordinance

Chapter 5.26 Transportation

Network Companies

Chapter 5.11 Transportation

Network Companies

Chapter 5.07 Transportation

Network Company Services

Chapter 5.18 Transportation

Network Companies

Business License

and Fees

Lacey business license renewed

annually at a cost of $25 (TNC

+ Driver).

Olympia business license

renewed annually at a cost of

$30 (TNC + Driver).

Tumwater business license at a

cost of $50 + $19 processing

fee, renewed annually at a

cost of $20 + $11 processing

fee (TNC + Driver).

Yelm business license at a cost

of $35, renewed annually at a

cost of $25 (TNC + Driver).

TNC License

TNC license renewed annually at a cost of $1,000. Issued by Olympia and recognized by other jurisdictions participating in the

interlocal agreement.

A TNC license may be revoked, suspended, or denied for: failure to meet or maintain any of the requirements for obtaining a

TNC license; a materially false statement contained in the application; or any violation of the relevant ordinance.

TNC

requirements

Certify drivers meet insurance requirements.

Maintain driver records.

Conduct criminal background checks of drivers and maintain records for two years.

Maintain a registered Agent in WA.

Driver

Requirements

Self-certify no known physical or mental infirmity.

21 years of age.

WA driver’s license.

No more than 3 moving violations/year in 3 years prior to becoming TNC driver.

Passed a criminal background check.

Proof of vehicle registration and liability insurance.

Background

Checks

TNC shall obtain and review a criminal background check for drivers.

History of no less than five years and maximum of seven years.

Local, state, and national criminal history databases and national and state sex offender registries.

Disqualifiers: sex offender, driving under the influence, felony fraud, sexual offenses, felony property damage or theft, acts of

violence/terror, reckless driving or negligent driving, and use of motor vehicle to commit felony.

TNC must conduct background checks and maintain records for two years.

January 2019 | Joint Transportation Committee | Regulation of TNCs: Policy Guide

LACEY

OLYMPIA

TUMWATER

YELM

Vehicle

Inspection and

maintenance

Vehicle must be <10 years old.

Annual 21-pt inspection (TNC or third-party).

Maintain inspection records for at least 3 years.

Insurance

requirements

As required by state law Chapter 48.177 RCW.

Audit

No more than 2x/year and not more than 20 randomly selected TNC drivers.

Must produce records to allow investigation of specific complaints regarding compliance.

Operational

Requirements

Can only pick up passengers arranging transportation through TNC’s digital network.

Display trade dress while in service.

TNC network must display name and photo of TNC driver as well as applicable rates being charged.

Zero tolerance policy on use of drugs or alcohol.

Accessibility –

Nondiscrimination

TNC must adopt nondiscrimination policy.

Drivers must comply with applicable laws on nondiscrimination.

Comply with laws on service animals.

No additional charges for providing services to persons with physical disabilities.

Enforcement

Director of Finance for the

City of Lacey has

administrative authority to

implement and enforce, which

does not limit Olympia Police

Department’s authority to

enforce laws.

Director of the City of

Olympia’s Administrative

Services Department has

administrative authority to

implement and enforce, which

does not limit Olympia Police

Department’s authority to

enforce laws.

The Director of Tumwater’s

Finance Department has the

authority to implement and

enforce the ordinance, which

does not limit the Tumwater

Police Department’s authority

to enforce laws.

The Yelm City Clerk has the

authority to implement and

enforce the ordinance, which

does not limit Yelm Police

Department’s authority to

enforce laws.

January 2019 | Joint Transportation Committee | Regulation of TNCs: Policy Guide

LACEY

OLYMPIA

TUMWATER

YELM

Reciprocity

Can delegate

administration and

enforcement to partner

jurisdiction.

Partner jurisdiction must

have ordinances that are

substantially the same.

TNC license is recognized

from other jurisdictions.

N/A

Can delegate

administration and

enforcement to partner

jurisdiction.

Partner jurisdiction must

have ordinances that are

substantially the same.

TNC license is recognized

from other jurisdictions.

N/A

Penalty

TNC license may be revoked for violating the ordinance, failing to notify the city of a driver violation, or for failing to remedy a

driver’s violation.

TNC operating without a TNC license or a driver picking up passengers without a current contract with a licensed TNC are both

subject to a civil infraction and fees.

o First offense: $50

o Second offense: $125

o Third and subsequent

offenses: $250

o First offense: $50

o Second offense: $125

o Third and subsequent

offense: $250

o Class 4: $25

o Class 3: $50

o Class 2: $125

o Class 1: $250

o First offense: $50

o Second offense: $125

o Third offense: $250

A TNC providing false

information or a driver

picking up a passenger

without a Lacey business

license…

A TNC providing false

information or a driver

picking up a passenger

without an Olympia

business license…

A TNC providing false

information or a driver

picking up a passenger

without a Tumwater

business license…

A TNC providing false

information or a driver

picking up a passenger

without an Yelm business

license…

…is a misdemeanor carrying a fine NTE $1,000 and/or be imprisonment NTE 90 days. Second and subsequent days carry a fine

NTE $5,000 and/or imprisonment NTE 364 days.

Source: Lacey Municipal Code Chapter 5.26 Transportation Network Companies, Olympia Municipal Code Chapter 5.11 Transportation Network Companies, Tumwater

Municipal Code Chapter 5.07 Transportation Network Company Services , Yelm Municipal Code Chapter 5.18 Transportation Network Companies, accessed August 2018.

BERK 2018.

January 2019 | Joint Transportation Committee | Regulation of TNCs: Policy Guide

AIRPORTS

Many TNC regulations nationwide have exemptions for airports. In Washington, at least two airports

have existing operating rules and fees for TNCs.

Sea-Tac International Airport

The Port of Seattle regulates taxis, for-hires, and TNCs that operate at Sea-Tac International Airport and

maintains an ILA with King County for licensing and enforcement. All operators at Sea-Tac Airport must

have a current agreement on file and follow the ground transportation rules and instructions in addition to

King County regulations. For TNC pick-up activity, the Port contracts with TNC companies, not individual

TNC drivers. The TNC companies are then responsible for contractual relationships with drivers. Currently,

three TNCs operate at the airport: Lyft, Uber, and Wingz.

Fees

To operate at the airport, TNCs pay an activation fee based on the average number of monthly

outbound trips over the first six months of operation.

▪

10,000 or more trips: $100,000

▪

5,000 – 10,000 trips: $50,000

▪

1,000 – 5,000 trips: $25,000

▪

Less than 1,000 trips: $10,000

TNCs also pay a per-vehicle trip fee of $6/pick-up. Any underreported per-trip fees will be paid upon

discovery along with interest and late charges.

These fees are for the use of airport facilities and access to the airport passenger market. The fee can be

passed on to customers if it is not referred to as a tax, is not implied that the port requires the payment

be made by the customer, and the disclosure to the customer is not misleading. Additional fines may be

imposed on the TNC or its drivers for violations of the agreement.

Reporting

Each month, the TNC must electronically submit the number of inbound and outbound trips to and from the

airport that were made in the previous month as well as the following data:

▪

Reporting period dates

▪

Time of each trip

▪

Trip ID

▪

Driver ID

▪

Vehicle ID

▪

Lat/Long

▪

Event type - entry/exit/pickup/drop-off

▪

License Plate

▪

Vehicle make, model, and year

January 2019 | Joint Transportation Committee | Regulation of TNCs: Policy Guide

Records and Audit

The Port has the right to audit any records relevant to the operating agreement. If an audit finds a

discrepancy in fees paid of more than 2%, the TNC will pay the cost of the audit with interest.

Environmental Requirements

TNCs must meet equivalent environmental standards to those of taxi and for-hire vehicles. Equivalence is

measured using a formula that considers airport pick up and drop-offs as well as miles per gallon. The

metric is required to be less than 10.82 pounds of carbon dioxide per trip. TNCs can achieve this

environmental standard through three methods: 1) high vehicle miles per gallon, 2) deadhead trip

reduction, and/or 3) pooling of unrelated passengers in vehicles.

If a TNC fails to meet the metric the per-trip fee will be increased on the following schedule.

▪

nonconsecutive quarter of noncompliance: 2x fee multiplier.

▪

consecutive quarter of noncompliance: 3x multiplier.

▪

consecutive quarter of noncompliance: 4x multiplier.

Insurance Requirements

TNCs must comply with Port insurance requirements.

▪

TNC commercial liability. $1 million per occurrence.

▪

TNC vehicle insurance. $1 million per accident.

Other Requirements

▪

TNC drivers must be neat, clean, and courteous.

▪

The Port has the right to inspect drivers and vehicles at any time for compliance with standards in the

operating agreement.

▪

TNC companies or drivers may not discriminate based on race, color, national origin, or sex.

Spokane International Airport

The City and County of Spokane jointly own Spokane International Airport, whose operating authority is

the Spokane Airport Board, consisting of seven appointees from two governmental bodies. The airport is

funded through airport-generated revenue and grants.

The Airport regulates TNCs through operating agreements. Currently, Lyft and Uber operate at the

airport. The agreements outline operating, vehicle, and insurance requirements as well as prohibited

activities, fees and charges, compliance, and enforcement.

Operating Fees

TNCs pay a $250 application fee to cover the costs of administration and processing of a new operating

agreement. In addition, the airport charges a per trip fee of $1.00 for both drop-offs and pickups at the

airport. The airport uses a geo-fence to track TNC trips.

January 2019 | Joint Transportation Committee | Regulation of TNCs: Policy Guide

Reporting

The TNC must provide monthly trip reports and payment. Any discrepancy between the application-

based commercial ground transportation system and the monthly report submitted by the TNC is collected

the following month.

Audits

The airport reserves the right to audit and verify the number of pickups and drop-offs happening on their

premises. If an audit reveals a discrepancy greater than 5%, the TNC must pay the cost of the audit.

Operating Requirements

TNC must:

▪

Maintain a website with customer service telephone number and email address.

▪

Maintain a registered agent in Spokane.

▪

Maintain up-to-date records on drivers and vehicles including background checks, vehicle

registration, and copies of vehicle inspections.

▪

Provide electronic receipts of trips.

▪

Establish a driver-training program to ensure safe operation of vehicle.

▪

Have a zero-tolerance drug and alcohol policy.

▪

Conduct an annual criminal background check of drivers, checking local, state, and national criminal

history databases, state motor vehicle records, and public database of state and federal sex

offenders. Any person convicted in the last seven years of a disqualifying crime shall not be

permitted to drive.

▪

Drivers can only accept rides booked through the digital platform.

Vehicle Requirements

Vehicles used by TNC drivers must be in good operating order and kept clean inside and out. In addition,

the vehicles must be street legal and have a uniform safety inspection conducted annually.

Insurance Requirements

TNCs must comply with insurance requirements.

▪

TNC commercial liability. Minimum of $1 million per occurrence and $2 million in aggregate.

▪

TNC auto liability. Minimum of $1 million per accident.

January 2019 | Joint Transportation Committee | Regulation of TNCs: Policy Guide

Prohibited Activities

While on airport premises, TNC affiliated drivers cannot:

▪

Solicit passengers on airport property.

▪

Accept curbside hails.

▪

Leave vehicles unattended.

▪

Fail to provide information or provide false information to Airport personnel.

▪

Display an altered waybill.

▪

Occupy non-commercial lots.

▪

Stop on airport roads except to pick up a passenger or when waiting in approved parking stalls.

▪

Use, possess, or be under the influence of any legal or illegal drug.

▪

Fail to comply with posted speed limits and traffic control signs.

▪

Double park.

▪

Engage in criminal activity.

Other Requirements

▪

TNC companies or drivers must comply with federal nondiscrimination laws.

▪

Airport has the right to inspect drivers and vehicles for compliance with operating agreement.

▪

The Airport has the right to review and approve any electronic medium used for identification or

advertising.

January 2019 | Joint Transportation Committee | Regulation of TNCs: Policy Guide

Appendix A. Summary of Key Regulation Areas by State

January 2019 | Joint Transportation Committee | Regulation of TNCs: Policy Guide

SUMMARY OF KEY AREAS BY STATE

STATE STATUTE/CODE

STATE

LAW

STATE PRE-

EMPTION

PRIMARY

REGULATORY

AUTHORITY

CRIMINAL

BACKGROUND

CHECK TYPE

Alabama

Alabama Act 2018-127

Code of Alabama Section 32-7C

Yes (partial –

can opt out)

Public Service

Commission

TNC or third-

party check

Alaska

Alaska Statute 28.23

Yes (specific

exceptions)

Department of

Administration, Division

of Motor Vehicles

Third-party check

Arizona

Arizona Revised Statutes Title 28

Chapter 30 Article 3

Yes

Department of

Transportation

TNC or third-

party check

Arkansas

Arkansas Code Title 23 Subtitle 1

Chapter 13 Subchapter 7

Yes

Department of

Transportation

TNC or third-

party check

California

Public Utilities Code Division 2

Chapter 8 Article 7

Yes

Public Utilities

Commission

TNC or third-

party check

Colorado

C.R.S. 40-10.1-600

Yes

Public Utilities

Commission

TNC or third-

party check

Connecticut

General Statutes of Connecticut

Title 13b-116-121

Yes

Commissioner of

Transportation

TNC or third-

party check

Delaware

Delaware Code Title 2 Chapter 19

Yes

Department of

Transportation

TNC or third-

party check

Florida

Florida Statute 627.748

Yes

Department of

Financial Services

TNC or third-

party check

Georgia

Chapter 40-1-190 OCGA

Chapter 40-5-39 OCGA

Yes

Department of Public

Safety

Third-party check

Hawaii

HI Rev Stat § 431:10C-703

Insurance

Only

Yes

Department of

Commerce and

Consumer Affairs

Not Applicable

Idaho

Chapter 49-37 Idaho Statutes

Yes

Department of Motor

Vehicles

Third-party check

January 2019 | Joint Transportation Committee | Regulation of TNCs: Policy Guide

STATE STATUTE/CODE

STATE

LAW

STATE PRE-

EMPTION

PRIMARY

REGULATORY

AUTHORITY

CRIMINAL

BACKGROUND

CHECK TYPE

Illinois

Chapter 625 Illinois Compiled

Statutes 57/1-35

No (sets

minimum

regulation for

state)

Secretary of State

TNC or third-

party check

Indiana

IC 8-2.1-19.1

Yes

Department of

Transportation

TNC or third-

party check

Iowa

2016 Iowa Code Title VIII Chapter

321N

Yes

Department of

Transportation

TNC or third-

party check

Kansas

Chapter 8-27 Kansas Statutes

Annotated

Yes

Division of Vehicles of

the Department of

Revenue

TNC or third-

party check

Kentucky

Kentucky Revised Statutes Chapter

281.630-656

Yes (specific

exceptions)

Department of Vehicle

Regulation

TNC check

Louisiana

Louisiana Revised Statutes Section

45, Chapter 201

Insurance

only

Yes

Secretary of State

Not Applicable

Maine

Maine Revised Statutes Title 24-A,

Chapter 93

Maine Revised Statues, Title 29-A,

Chapter 13

Yes

Secretary of State

TNC or third-

party check

Maryland

General Assembly of Maryland

Revised Statutes, Public Utility

Article 10

Yes (specific

exceptions)

Public Utilities

Commission

Public Service

Commission

TNC or third-

party check

Massachusetts

220 Code of Massachusetts

Regulations Section 274

Yes

Department of Public

Utilities

Multi-tiered check

through

TNC/third-party

and state

Michigan

Michigan Compiled Laws Section

257.21

Yes

Department of

Licensing and

Regulatory Affairs

Third-party check

Minnesota

Minnesota Revised Statutes Chapter

65B Section 472

Insurance

Only

Department of

Commerce

Not Applicable

January 2019 | Joint Transportation Committee | Regulation of TNCs: Policy Guide

STATE STATUTE/CODE

STATE

LAW

STATE PRE-

EMPTION

PRIMARY

REGULATORY

AUTHORITY

CRIMINAL

BACKGROUND

CHECK TYPE

Mississippi

Mississippi Code Annotated, Title

77, Chapter 8

Yes

Department of

Insurance

TNC or third-

party check

Missouri

Missouri Revised Statutes, Chapter

387, Section 400-440

Missouri Revised Statutes, Chapter

379, Section 1700-1708

Yes

Department of

Revenue

TNC or third-

party check

Montana

Montana Code Annotated, Title

69, Chapter 12

Yes

Public Service

Commission (Utilities)

None listed

Nebraska

Nebraska Revised Statutes,

Chapter 75, Section 300

Public Service

Commission

TNC check

Nevada

Nevada Revised Statutes, Chapter

706A

Yes

(carveout)

Transportation

Authority

Third-party check

New Hampshire

New Hampshire Revised Statutes,

Chapter 376A

Yes

Department of Safety

TNC or third-

party check

New Jersey

New Jersey Statutes, Title 39,

Chapter 5H

Yes

Motor Vehicle

Commission

TNC check

New Mexico

New Mexico Statutes, Chapter 65,

Article 7

Yes

Public Regulation

Commission

TNC check

New York

New York General Municipal Law

Article 182

New York Tax Law Article 29-B

New York Insurance Law Article

3455

Yes (can opt

out and

carveout for

NYC)

Department of Motor

Vehicles

Third-party check

North Carolina

North Carolina General Statutes,

Article 10A

Yes

Department of

Transportation, Division

of Motor Vehicles

Third-party check

January 2019 | Joint Transportation Committee | Regulation of TNCs: Policy Guide

STATE STATUTE/CODE

STATE

LAW

STATE PRE-

EMPTION

PRIMARY

REGULATORY

AUTHORITY

CRIMINAL

BACKGROUND

CHECK TYPE

North Dakota

North Dakota Century Code Title

39, Chapter 34

Yes

Department of

Transportation

Third-party check

Ohio

Ohio Revised Codes 3942

Ohio Revised Codes 4925

Yes

Public Utilities

Commission

TNC check

Oklahoma

Title 47-1010

Yes

Corporation

Commission

Third-party check

Oregon

Not

Applicable

Not Applicable

Pennsylvania

Pennsylvania Statutes, Title 66,

Section 5, Chapter 24

Yes

Public Utility

Commission

Third-party check

Rhode Island

Rhode Island Statutes Title 39,

Chapter 14.2

Yes

Division of Public

Utilities and Carriers

Third-party check

South Carolina

South Carolina Code Section 58-

23-1600

Yes

Public Utility

Commission

Third-party check

South Dakota

South Dakota Codified Laws

Chapter 32-40

No (sets

minimum

regulation for

state but

does pre-

empt on

insurance)

Department of

Revenue, Motor

Vehicle Division

TNC check

Tennessee

Tennessee Annotated Code Title

65, Chapter 15, Part 3

Yes

Public Utility

Commission

Third-party check

Texas

Texas Code Title 14, Subtitle C,

Chapter 2402

Texas Code Title 10, Subtitle C,

Chapter 1954

Yes

Department of

Licensing and

Regulation

TNC or third-

party check

Utah

Utah Code Title 13, Chapter 51

Yes

Department of

Commerce, Division of

Consumer Protection

TNC or third-

party check

January 2019 | Joint Transportation Committee | Regulation of TNCs: Policy Guide

STATE STATUTE/CODE

STATE

LAW

STATE PRE-

EMPTION

PRIMARY

REGULATORY

AUTHORITY

CRIMINAL

BACKGROUND

CHECK TYPE

Vermont

Vermont Senate Proposal H-0143

Yes (time-

limited

population

carveout)

Commissioner of Motor

Vehicles

TNC or third-

party check

Virginia

Virginia Law Title 46,2 Subtitle V,

Chapter 20, Article 15

Yes

Agency of

Transportation,

Department of Motor

Vehicles

TNC check

Washington, D.C.

Code of the District of Columbia

Title 50, Chapter 3, Subchapter 1,

Section 29

Not

Applicable

Department of For-

Hire Vehicles

TNC or third-

party check

West Virginia

West Virginia Code Chapter 17-

Yes

Department of

Transportation, Division

of Motor Vehicles

TNC or third-

party check

Wisconsin

Wisconsin Statute Chapter 440.40

Yes

Department of Safety

and Professional

Services

TNC or third-

party check

Wyoming

Wyoming Statute 31-20

Yes

Department of

Transportation

TNC or third-

party check

January 2019 | Joint Transportation Committee | Regulation of TNCs: Policy Guide

Appendix B. Summary of Nationwide TNC Laws

January 2019 | Joint Transportation Committee | Regulation of TNCs: Policy Guide

ALABAMA

Reference

Alabama Legislative Act No. 2018-1 27.

Code of Alabama Section 32-7C (insurance)

Regulatory

Agency

Alabama Public Service Commission

Pre-Emption

Yes (may opt out). TNCs, drivers, and vehicles will be governed exclusively by

state law but municipalities may prohibit TNCs from providing rides originating

within their corporate limits.

Counties, municipalities, special districts, and airports are prohibited from

imposing taxes or business licenses on TNCs or drivers.

Airports and cruise terminals can enter into operating agreements with TNCs as

long as they are not inconsistent with the requirements of the TNC Act. Operating

agreements may include pickup fees.

Driver

Requirements

Must be at least 19 years of age

Driver’s license

Background Check

Before accepting trip requests, the TNC or a third party must conduct a local and

national criminal background check for each driver, including a review of a

multistate/multijurisdictional criminal records locator, the national sex offender

public website, and a driving history report.

Vehicle

Requirements

Before a vehicle can be used to provide TNC services and annually thereafter, it

must pass a uniform inspection by a certified mechanic

< 15 years old (on June 30

of the fifteenth year following the manufacturer’s

model year)

Taxes and Fees

A local assessment fee equal to 1% of the gross trip fare must be collected on

each trip and remitted to the Public Service Commission, which distributes a

portion of the fee to the municipality or county where a ride originated.

January 2019 | Joint Transportation Committee | Regulation of TNCs: Policy Guide

ALASKA

Reference

Alaska Statute 28.23

Regulatory

Agency

Department of Administration, Division of Motor Vehicles

Pre-Emption

Partial. A municipality may pass an ordinance with requirements for trade dress

and/or that is substantially similar to the state ordinance

Driver

Requirements

At least 21 years of age

Background Check

Commercial background check accepted (multi-state, multi-jurisdictional criminal

records; national sex offender public website; driving history report)

Vehicle

Requirements

Uniform safety inspection

<12 years of age

Taxes and Fees

None identified

January 2019 | Joint Transportation Committee | Regulation of TNCs: Policy Guide

ARIZONA

Reference

Arizona Revised Statutes Title 28 Chapter 30 Article 3

Regulatory

Agency

Department of Transportation

Pre-Emption

Yes

Driver

Requirements

At least 19 years of age

Background Check

TNC or third-party local and national criminal background check, sex offender

registry check, and driving history report prior to accepting trips through a digital

network or software application

Vehicle

Requirements

Meet state vehicle safety and emissions standards

Annual brake and tire inspection by qualified third-party

Taxes and Fees

$1,000 TNC application fee every three years

January 2019 | Joint Transportation Committee | Regulation of TNCs: Policy Guide

ARKANSAS

Reference

Arkansas Code Title 23 Subtitle 1 Chapter 13 Subchapter 7

Regulatory

Agency

Department of Transportation

Pre-Emption

Yes

Driver

Requirements

At least 19 years of age

Background Check

TNC or third-party background check

Obtain and review driving history

Vehicle

Requirements

Uniform safety inspection by certified mechanic within 90 days of beginning

service

Taxes and Fees

$15,000 annual TNC permit fee

January 2019 | Joint Transportation Committee | Regulation of TNCs: Policy Guide

CALIFORNIA

Reference

Public Utilities Code Division 2 Chapter 8 Article 7

Regulatory

Agency

Public Utilities Commission

Pre-Emption

Yes

Driver

Requirements

At least 21 years of age

One year of non-professional driving history

Background Check

TNC or third-party local and national criminal background check and sex

offender public web site check prior to operating as a driver

Vehicle

Requirements

Street legal, maximum seating capacity of seven passengers, including the driver

Uniform safety inspection

Taxes and Fees

$1,000 TNC permit

$100 annual renewal

January 2019 | Joint Transportation Committee | Regulation of TNCs: Policy Guide

COLORADO

Reference

C.R.S. 40-10.1-600

Regulatory

Agency

Colorado Public Utilities Commission

Pre-Emption

Yes

Driver

Requirements

At least 21 years of age

Cannot drive more than 12 consecutive hours

Background Check

TNC or third-party criminal history record check and driving history report every

five years

Vehicle

Requirements

Pass uniform safety inspection every year

Taxes and Fees

$111,250 annual TNC permit fee

All fees deposited into a Transportation Network Company Fund, to cover costs

related to permitting TNCs

January 2019 | Joint Transportation Committee | Regulation of TNCs: Policy Guide

CONNECTICUT

Reference

General Statutes of Connecticut Title 13b-116-121

Regulatory

Agency

Commissioner of Transportation

Pre-Emption

Driver

Requirements

At least 19 years of age

No driver may use a digital network service or provide prearranged rides for

more than 14 consecutive hours, or 16 hours within a 24-hour period

Background Check

TNC or third-party criminal background check or FBI fingerprint national criminal

history check and state police bureau state criminal history check prior to

operating, and at least once every three years

Driver must report new offenses to the TNC

Vehicle

Requirements

<12 model years old

Designed to carry less than eight passengers

Before operating as a TNC, and every two years after self-certify equipment in

good working order

Taxes and Fees

$5,000 annual TNC registration fee

January 2019 | Joint Transportation Committee | Regulation of TNCs: Policy Guide

DELAWARE

Reference

Delaware Code Title 2 Chapter 19

Regulatory

Agency

Department of Transportation

Pre-Emption

Yes

Driver

Requirements

At least 18 years of age

Background Check

TNC or third-party local and national criminal background check before allowed

to drive

Annual driving history review

Vehicle

Requirements

Delaware registered vehicles must pass annual uniform safety inspection, verified

by valid vehicle registration

Vehicle with over 10,000 miles that is registered in another state, has passed an

annual vehicle safety inspection authorized by a state government agency within

the past 90 days.

Taxes and Fees

$5,000 TNC Permit annual fee

January 2019 | Joint Transportation Committee | Regulation of TNCs: Policy Guide

FLORIDA

Reference

Florida Statute 627.748

Regulatory

Agency

Department of Financial Services

Pre-Emption

Yes

Prohibits: imposing taxes and fees, requirements, or business licenses at the local

level

Airports and seaports are allowed to charge reasonable pickup fees consistent

with taxicab pickup fees

Driver

Requirements

Valid driver’s license

Background Check

TNC or third-party background check and driving history review before

accepting a ride request and every three years

Vehicle

Requirements

Motor Vehicle Registration

Taxes and Fees

None

January 2019 | Joint Transportation Committee | Regulation of TNCs: Policy Guide

GEORGIA

Reference

Chapter 40-1-190 Official Code of Georgia Annotated

Chapter 40-5-39 Official Code of Georgia Annotated

Regulatory

Agency

Department of Public Safety

Pre-Emption

Yes, for administration and regulation

Airports can regulate TNCs in a way consistent with the process for limousine

carriers, including setting fees, but must accept the state for-hire license

endorsement and private background check certification

Statute pre-empts administration and regulation over taxi services and

dispatchers

Driver

Requirements

At least 18 years of age

Background Check

For-hire license endorsement or private background check certification prior to

operating a motor vehicle for hire, including multi-state, multi-jurisdictional

criminal records locator; a search of the national sex offender registry database;

and the review of a driving history research report.

Private background check certification must be renewed every five years

Vehicle

Requirements

Vehicle must meet uniform safety standards and any suspected of being in

violation can be inspected by a law enforcement officer

Taxes and Fees

Master license fee based on number of vehicles, ranging from $1,500 (one to

five vehicles) - $30,000 (over 1,001 vehicles)

January 2019 | Joint Transportation Committee | Regulation of TNCs: Policy Guide

HAWAII

Reference

HI Rev Stat § 431:10C-703

Regulatory

Agency

Department of Commerce and Consumer Affairs

Pre-Emption

Yes

Driver

Requirements

Not Applicable, insurance law only

Background Check

Not Applicable, insurance law only

Vehicle

Requirements

Not Applicable, insurance law only

Taxes and Fees

Not Applicable, insurance law only

January 2019 | Joint Transportation Committee | Regulation of TNCs: Policy Guide

IDAHO

Reference

Chapter 49-37 Idaho Statutes

Regulatory

Agency

Department of Motor Vehicles

Pre-Emption

Yes

Specifically pre-empts local entities from imposing a tax or requiring a license for

a TNC, TNC driver, or vehicle used by a TNC driver; or subjecting a TNC to a

local entity’s rate, entry, operational, or other requirements.

Driver

Requirements

At least 19 years of age

Background Check

Third-party background check and driver history review conducted prior to

operating on digital platform

Vehicle

Requirements

Proof of motor vehicle registration

Taxes and Fees

None

January 2019 | Joint Transportation Committee | Regulation of TNCs: Policy Guide

ILLINOIS

Reference

Chapter 625 Illinois Compiled Statutes 57/1-35

Regulatory

Agency

Department of Vehicle Services, Secretary of State

Pre-Emption

No jurisdiction can regulate in a less restrictive manner (due to be repealed on

June 1, 2020)

Driver

Requirements

At least 19 years of age

Background Check

TNC or third-party background check prior to operating on the digital platform

Vehicle

Requirements

Safety and emissions requirements required of private motor vehicles in the state

Taxes and Fees

None

January 2019 | Joint Transportation Committee | Regulation of TNCs: Policy Guide

INDIANA

Reference

IC 8-2.1-19.1

Regulatory

Agency

Department of Transportation

Pre-Emption

Yes

Driver

Requirements

At least 19 years of age

Background Check

TNC or third-party background check and driver record review prior to

operating as a driver

Vehicle

Requirements

Must meet applicable laws and regulations concerning personal vehicle

equipment

Taxes and Fees

None

January 2019 | Joint Transportation Committee | Regulation of TNCs: Policy Guide

IOWA

Reference

2016 Iowa Code Title VIII Chapter 321N

Regulatory

Agency

Department of Transportation

Pre-Emption

Yes

Allow commercial service airports to regulate and collect fees

Driver

Requirements

At least 19 years of age

Background Check

TNC or third-party background check prior to acting as a TNC driver

Obtain and review driving history research report

Vehicle

Requirements

Be a personal vehicle

Comply with state motor vehicle equipment requirements

Taxes and Fees

$5,000 annual TNC permit fee deposited into the Road Use Tax Fund

The Road Use Tax Fund is dedicated to the state department of transportation,

county governments, and city governments for highway-related uses and is

distributed using a percentage formula to: primary roads, secondary roads,

farm-to-market roads, and street construction.

January 2019 | Joint Transportation Committee | Regulation of TNCs: Policy Guide

KANSAS

Reference

Chapter 8-27 Kansas Statutes Annotated

Regulatory

Agency

Division of Vehicles of the Department of Revenue

Pre-Emption

Yes

Driver

Requirements

At least 19 years of age

Valid driver’s license

Background Check

TNC or third-party conducted criminal background check, sex offender registry

check, and driver history review prior to acting as a driver on the digital network

Vehicle

Requirements

Personal vehicle must meet the state’s private personal vehicle equipment

requirements

Taxes and Fees

None

January 2019 | Joint Transportation Committee | Regulation of TNCs: Policy Guide

KENTUCKY

Reference

Kentucky Revised Statutes Chapter 281.630-656

Regulatory

Agency

Transportation Cabinet, Department of Vehicle Regulation

Pre-Emption

“First class” cities are vested with power to “prescribe the qualifications with

respect to the health, vision, sobriety, intelligence, ability, moral character, and

experience” of drivers

As of 2015, Kentucky has one first class city, Louisville

Other cities and counties may not impose taxes or fees, except for an annual

license fee not to exceed $30

Driver

Requirements

Complete a defensive driving course

Background Check

Every three years, TNC-conducted nationwide criminal background check

Vehicle

Requirements

Uniform safety inspection

Pre-trip and prearranged ride insurance

Taxes and Fees

$250 annual certificate for TNC

$30 annual license fee per TNC vehicle

Cities and counties prohibited from levying other taxes and fees, except for an

annual license fee not to exceed $30

January 2019 | Joint Transportation Committee | Regulation of TNCs: Policy Guide

LOUISIANA

Reference

Louisiana Revised Statutes Section 45, Chapter 201

Regulatory

Agency

Secretary of State

Pre-Emption

Yes, with an exception allowing local jurisdictions to enforce the state law

Driver

Requirements

Not Applicable, insurance law only

Background Check

Not Applicable, insurance law only

Vehicle

Requirements

Not Applicable, insurance law only

Taxes and Fees

Not Applicable, insurance law only

January 2019 | Joint Transportation Committee | Regulation of TNCs: Policy Guide

MAINE

Reference

Maine Revised Statutes Title 24-A, Chapter 93

Maine Revised Statues, Title 29-A, Chapter 13, Subchapter 4

Regulatory

Agency

Secretary of State

Pre-Emption

Yes

A municipality or other political subdivision may not adopt an ordinance,

regulation or procedure governing the operations of or impose a tax or fee on or

require a license for a TNC, driver, or motor vehicle used by a TNC driver

Driver

Requirements

At least 19 years of age

Background Check

Before allowing a driver to accept a prearranged ride request, conduct a TNC

or third-party local and national commercial background check, including a check

of the national sex offender registry database and state sex offender registry

database in the state that issues the individual’s driver’s license; and a review of

the driving history report for the individual.

Vehicle

Requirements

TNCs must require that vehicles meet safety and emissions standards of the state

in which they are registered

Taxes and Fees

$10,000 annual TNC permit fee

January 2019 | Joint Transportation Committee | Regulation of TNCs: Policy Guide

MARYLAND

Reference

General Assembly of Maryland Revised Statutes, Public Utility Article Section 10-

400

Code of Maryland Regulations, Title 20, Section 95

Regulatory

Agency

Public Utilities Commission

Public Service Commission

Pre-Emption

Yes

Counties and municipal corporations with an existing TNC assessment prior to

January 2015 may continue collecting these assessments, taxes, or fees.

Driver

Requirements

At least 18 years of age

At least six months of licensed driving experience

Background Check

Third-party national criminal history records check, including multi-state, multi-

jurisdiction criminal records database search, search of the Sex Offender

Registry, search of the U.S. Department of Justice National Sex Offender Public

Web site, and a driving history report

Vehicle

Requirements

Insurance “while an operator is providing transportation network services”

Uniform safety inspection for used vehicles (5,000 miles or more on odometer)

Not exceeding 12 model years age

Taxes and Fees

Except in counties and municipal corporations that imposed a fee prior to January

2015, other counties and municipalities can impose a $0.25 per trip fee

assessment

Any revenue from the per trip fee must be used for transportation purposes

January 2019 | Joint Transportation Committee | Regulation of TNCs: Policy Guide

MASSACHUSETTS

Reference

220 Code of Massachusetts Regulations Section 274

Massachusetts General Laws Chapter 159A1/2

Regulatory

Agency

Department of Public Utilities

Pre-Emption

Yes

Driver

Requirements

At least 21 years of age

Maximum 12 hours of service in a 24-hour period

Background Check

No fingerprinting required

Multi-tiered screening process through TNC/third-party and State

State search allows a longer look back than seven years allowed by Fair Credit

Reporting Act (FCRA)

Background check includes: Department of Criminal Justice Information Systems,

Sex Offender Registry Board, Warrant Management System, Registry of Motor

Vehicles, and other sources

Vehicle

Requirements

Annual uniform safety inspection

Insurance while providing transportation network services

Vehicle is registered in Massachusetts

Taxes and Fees

$0.20 per trip assessment: 50% to a Transportation Infrastructure Enhancement

Fund and 50% distributed proportionately to each city and town based on

number of trips

January 2019 | Joint Transportation Committee | Regulation of TNCs: Policy Guide

MICHIGAN

Reference

Michigan Compiled Laws Section 257.21

Regulatory

Agency

Department of Licensing and Regulatory Affairs

Pre-Emption

Yes

Driver

Requirements

At least 19 years of age

Background Check

Annual third-party criminal background check with a search of multi-state or

multi-jurisdictional criminal records and the national sex offender registry

database

Annually obtain and review driving history research report

Vehicle

Requirements

Uniform vehicle safety inspection prior to operating on the digital network and

annually thereafter

Taxes and Fees

TNC registration application fee: $25 if 10 or fewer vehicles registered; $50 if

11-25 vehicles registered; $100 if more than 25 vehicles registered

TNC registration fee: $100 for first vehicle and $50 for vehicles 2-9; $550 for

10 vehicles; $1,000 for 11-25 vehicles; $2,500 for 26-100 vehicles; $5,000 for

101-500 vehicles; $10,000 for 501-1,000 vehicles; $30,000 for more than

1,000 vehicles

January 2019 | Joint Transportation Committee | Regulation of TNCs: Policy Guide

MINNESOTA

Reference

Minnesota Revised Statutes Chapter 65B Section 472

Regulatory

Agency

Department of Commerce

Pre-Emption

No; pre-emption bill currently advancing through State House and Senate

Driver

Requirements

Not set by the State

Background Check

Not set by the State

Vehicle

Requirements

Pre-trip and prearranged ride insurance

Taxes and Fees

Not set by the State

January 2019 | Joint Transportation Committee | Regulation of TNCs: Policy Guide

MISSISSIPPI

Reference

Mississippi Code Annotated, Title 77, Chapter 8

Regulatory

Agency

Department of Insurance

Pre-Emption

Yes

Except counties, municipalities, or other local entities that own or operate an

airport may “adopt reasonable regulations relating to the duties and

responsibilities on airport property,” including reasonable fees

Driver

Requirements

At least 19 years of age

Background Check

Before allowing a driver to accept trip requests, conduct or have a third-party

conduct a local and national criminal background check (primary source search)

and search of Department of Justice National Sex Offender Public Website

TNC or third-party review of driving history research report

Vehicle

Requirements

Not required to register as commercial vehicle

Taxes and Fees

$5,000 TNC annual license fee

January 2019 | Joint Transportation Committee | Regulation of TNCs: Policy Guide

MISSOURI

Reference

Missouri Revised Statutes, Chapter 387, Section 400-440

Missouri Revised Statutes, Chapter 379, Section 1700-1708 (insurance)

Regulatory

Agency

Department of Revenue

Department of Insurance, Financial Institutions, and Professional Registration

(insurance)

Pre-Emption

Yes (with exceptions)

Home Rule cities with more than 400,000 inhabitants, located in two counties

(Kansas City and St. Louis) can inspect up to ten records that TNCs are required

to maintain. These cities can charge up to $5,000 to cover the cost of reviewing

the records.

Exception for an airport which may charge reasonable fees not assessed on a

per-passenger basis, and may establish operating procedures

Driver

Requirements

At least 19 years of age

Background Check

Before allowing an individual to accept trip requests through a digital network,

conduct a TNC or third-party local and national criminal background check,

including a primary source search, Department of Justice National Sex Offender

public website search, and driving history research report

Vehicle

Requirements

Motor vehicles used to transport passengers must submit to a biennial inspection

of their mechanisms and equipment and obtain a certificate of inspection and

approval from an authorized inspection station

Taxes and Fees

$5,000 annual license fee for TNCs

Per-driver and per-vehicle fees explicitly prohibited

January 2019 | Joint Transportation Committee | Regulation of TNCs: Policy Guide

MONTANA

Reference

Montana Code Annotated, Title 69, Chapter 12

Regulatory

Agency

Public Service Commission – limited authority after TNC-related repeals

Pre-Emption

Yes

Driver

Requirements

None

Background Check

None

Vehicle

Requirements

None

Taxes and Fees

$500 TNC fee for certificate of compliance

January 2019 | Joint Transportation Committee | Regulation of TNCs: Policy Guide

NEBRASKA

Reference

Nebraska Revised Statutes, Chapter 75, Section 325

Regulatory

Agency

Public Service Commission

Pre-Emption

Driver

Requirements

At least 21 years of age

Completion of TNC driver training course

Background Check

▪ TNC check of national criminal history background prior to acting as a driver

Vehicle

Requirements

Annual vehicle safety check by TNC or certified mechanic

Taxes and Fees

$25,000 TNC fee or $80 per driver-operated vehicle

January 2019 | Joint Transportation Committee | Regulation of TNCs: Policy Guide

NEVADA

Reference

Nevada Revised Statutes, Chapter 706A

Regulatory

Agency

Transportation Authority

Pre-Emption

Yes, with exceptions for airports, and local business licenses

Driver

Requirements

At least 19 years of age

Background Check

Third-party criminal background check, every three years

Annual driving history

Vehicle

Requirements

Annual vehicle inspection by TNC

Regular state-mandated vehicle insurance

Taxes and Fees

Annual TNC permit fee based on TNC’s in-state gross operating revenue

January 2019 | Joint Transportation Committee | Regulation of TNCs: Policy Guide

NEW HAMPSHIRE

Reference

New Hampshire Revised Statutes, Chapter 376A

Regulatory

Agency

Department of Safety

Pre-Emption

Yes

Driver

Requirements

At least 19 years of age

Background Check

Before allowing an individual to accept trip requests through a digital platform

TNC or third-party must conduct a primary source search and search of

Department of Justice National Sex Offender Public Website

Vehicle

Requirements

TNC shall ensure that the TNC driver’s personal vehicle meets New Hampshire’s

vehicle safety requirements for private motor vehicles

Taxes and Fees

$500 annual TNC permit fee

January 2019 | Joint Transportation Committee | Regulation of TNCs: Policy Guide

NEW JERSEY

Reference

New Jersey Statutes, Title 39, Chapter 5H

Regulatory

Agency

Motor Vehicle Commission

Division of Consumer Affairs in the Department of Law and Public Safety

Pre-Emption

Yes

Driver

Requirements

At least 21 years of age

Background Check

TNCs must propose a background check including at least a multi-state and multi-

jurisdiction criminal records locator or similar nationwide database search, and

search of the Department of Justice’s National Sex Offender Public Website,

subject to approval of the Attorney General. If the Attorney General does not

approve the proposed method, the Division of State Police will conduct a criminal

history record background check of drivers, including using fingerprinting.

Driving record check

Social Security Number trace, for at least seven years prior to the driver’s

application date

Vehicle

Requirements

Must meet motor vehicle inspection requirements prior to operating on the digital

network

A driver must maintain a valid inspection certificate of approval for the personal

vehicle used to provide prearranged rides

Taxes and Fees

$25,000 annual TNC permit fee

$0.50 per ride surcharge, $0.25 per shared ride surcharge

January 2019 | Joint Transportation Committee | Regulation of TNCs: Policy Guide

NEW MEXICO

Reference

New Mexico Statutes, Chapter 65, Article 7

Regulatory

Agency

Public Regulation Commission

Pre-Emption

Yes, with exception for airports with more than one million enplanements

Driver

Requirements

At least 21 years of age

Maximum 12 hours of prearranged rides in 24-hour period

Background Check

Before allowing a driver to accept prearranged ride requests through a TNC

digital network, the TNC must obtain a local and national criminal background

check including: multi-state or multi-jurisdiction criminal records locator or similar

commercial nationwide database search, and a search of the national sex

offender registry

TNC shall obtain and review a driving history research report

Vehicle

Requirements

Annual vehicle inspection by TNC, or by requirement of TNC

Taxes and Fees

$10,000 annual TNC permit fee

Funds used for administration of TNC-related activities

January 2019 | Joint Transportation Committee | Regulation of TNCs: Policy Guide

NEW YORK

Reference

New York General Municipal Law Article 182

New York Tax Law Article 29-B

New York Insurance Law Article 3455

Regulatory

Agency

Department of Motor Vehicles

Pre-Emption

Yes, with opt-out option and carveout for New York City

Local governments can “opt-out” of the state legislation, meaning that they can

prohibit TNCs from picking up passengers in their jurisdiction.

Airports and cities with population over one million are not covered by state

legislation.

Driver

Requirements

At least 19 years of age

New York State driver’s license

Background Check

A third-party criminal background check, including a search of the New York

state sex offender registry and the Department of Justice National Sex Offender

Public Website, and a driving history research report

TNC must participate in the New York License Event Notification Services (LENS)

All applicant information must be reviewed and held for six years

Vehicle

Requirements

Pre-trip and prearranged ride insurance

Taxes and Fees

4% state assessment fee on gross trip fares originating anywhere in the state

outside of cities with more than one million people located in the metropolitan

commuter transportation district, and terminating anywhere in the state

$100,000 TNC initial application fee, and $60,000 annual renewal fee

January 2019 | Joint Transportation Committee | Regulation of TNCs: Policy Guide

NORTH CAROLINA

Reference

North Carolina General Statutes, Article 10A

Regulatory

Agency

Department of Transportation, Division of Motor Vehicles

Pre-Emption

Yes, with exception for airport operators

Airport operators may charge reasonable fees and make TNC regulations

regarding monitoring and compliance and staging

Driver

Requirements

At least 19 years of age

Background Check

Third-party local and national criminal background check, including a multi-

state/multi-jurisdiction criminal records locator or other primary source search, a

search of the national sex offender registry, and a driving history research report

Drivers are disqualified for certain driving crimes within seven years

TNCs must ensure drivers meet requirements every five years

Vehicle

Requirements

Pre-trip and prearranged ride insurance

Annual safety inspections

Division may specify alternative inspections that are acceptable as equivalent

to Division inspections

Taxes and Fees

$5,000 TNC application fee, renewed annually

January 2019 | Joint Transportation Committee | Regulation of TNCs: Policy Guide

NORTH DAKOTA

Reference

North Dakota Century Code Title 39, Chapter 34

Regulatory

Agency

Department of Transportation

Pre-Emption

Yes

Driver

Requirements

At least 21 years of age

Valid driver’s license

Background Check

Before permitting an individual to act as a TNC driver, the TNC or a third-party

must conduct a local and national criminal background check of multi-state/multi-

jurisdiction criminal records locator or other commercial nationwide database

search, a search of the national sex offender registry database, and a driving

history

Driver is disqualified for driving violations and crimes in past seven years

Vehicle

Requirements

None

Taxes and Fees

None

January 2019 | Joint Transportation Committee | Regulation of TNCs: Policy Guide

OHIO

Reference

Ohio Revised Codes 4925

Ohio Revised Codes 3942 (Insurance)

Regulatory

Agency

Public Utilities Commission

Pre-Emption

Yes, except for public-use airports, which may adopt reasonable standards,

regulations, procedures, and fees

Driver

Requirements

At least 19 years of age

Valid driver’s license

Background Check

Prior to authorizing a person to act as a TNC driver, TNC must conduct a

background check, including multi-state/multi-jurisdiction criminal records

database search, a search of the national sex offender public web site, and a

driving history

Driver is disqualified for certain driving violations or crimes in past seven years

Vehicle

Requirements

Motor vehicle registration required

Taxes and Fees

$5,000 annual TNC permit fee

January 2019 | Joint Transportation Committee | Regulation of TNCs: Policy Guide

OKLAHOMA

Reference

Oklahoma Statutes 47-1010

Regulatory

Agency

Oklahoma Corporation Commission

Pre-Emption

Yes

No political subdivision of the state may impose a tax on, or require a license for,

a TNC or a TNC driver for the provision of prearranged rides or subject a TNC

to the political subdivision's rate requirement, entry requirement, operational

requirement or other requirements.

Driver

Requirements

At least 19 years of age

Valid driver’s license and proof of vehicle registration

Background Check

Third-party background check, including a search of the multi-state/multi-

jurisdictional criminal records locator or other primary source search, and driving

history

Driver is disqualified for certain driving violations crimes in past seven years

TNCs must implement “a procedure for periodic information updates […] and

rechecks of each TNC driver”

Vehicle

Requirements

Vehicles must meet Oklahoma private motor vehicle equipment standards

Vehicle may not have manufacturer designed seating of more than 15 persons

including the driver

Taxes and Fees

$5,000 annual TNC permit fee

January 2019 | Joint Transportation Committee | Regulation of TNCs: Policy Guide

PENNSYLVANIA

Reference

Pennsylvania Statutes, Title 66, Section 5, Chapter 24

Regulatory

Agency

Public Utility Commission

Pre-Emption

Yes

Driver

Requirements

At least 21 years of age

Background Check

Third-party criminal background check, including a review of the national sex

offender public website, and driving history review

Driver disqualified for certain offenses in the seven-year history period, and

certain other offenses and moving violations in the three-year history period

Vehicle

Requirements

Pre-trip and prearranged ride insurance

Seatbelts available for every passenger

Annual inspection from an inspection station approved by the Department of

Transportation

Taxes and Fees

None

January 2019 | Joint Transportation Committee | Regulation of TNCs: Policy Guide

RHODE ISLAND

Reference

Rhode Island Statutes Title 39, Chapter 14.2

Regulatory

Agency

Division of Public Utilities and Carriers

Pre-Emption

Yes

Except state airports, which may “establish reasonable regulations governing

TNC operations offering TNC services on airport proper through proper

amendment of the corporation’s ground transportation rules or by entering into

operating agreements with TNCs.”

Driver

Requirements

At least 19 years of age

Background Check

Prior to permitting an individual to accept trip requests, TNC or third-party must

conduct a background check, including multi-state/multi-jurisdictional background

check or other primary source search, including the national sex offender public

website and driving history report

Driver is disqualified for certain moving violations in the three-year driving

history, and certain crimes in the seven-year history

Vehicle

Requirements

No older than 15 model years old, and designed to hold no more than seven

individuals including the driver

Passes state inspection standards for private motor vehicles

Passes TNC sanitary/acceptability standards

Taxes and Fees

$5,000 annual TNC permit if fewer than 50 active TNC drivers; $10,000 if at

least 50 but fewer than 200 active TNC drivers; $30,000 if TNC at least 200

active TNC drivers

January 2019 | Joint Transportation Committee | Regulation of TNCs: Policy Guide

SOUTH CAROLINA

Reference

South Carolina Code of Laws Title 58, Chapter 23

Regulatory

Agency

Public Utility Commission

Transportation Department of the Office of Regulatory Staff (ORS)

Pre-Emption

Yes, excepting airports which may adopt regulations relating to payment of

reasonable fees to operate at the airport and staging

Driver

Requirements

At least 21 years of age

Background Check

Third-party criminal background check, including multi-state/multi-jurisdictional or

other primary source search, a search of the national sex offender registry, and

driving history search

Driver is disqualified for certain driving violations and crimes in the 10-year

history period

Qualifications to be reviewed annually

Vehicle

Requirements

Inspection by certified mechanic licensed in the state within 30 days of first

providing TNC services, and annually thereafter

Taxes and Fees

TNC permit requiring a local assessment fee of 1% of gross trip fares; fees

remaining after ORS expenses are covered are distributed to cities where rides

originated

January 2019 | Joint Transportation Committee | Regulation of TNCs: Policy Guide

SOUTH DAKOTA

Reference

South Dakota Codified Laws Chapter 32-40

Regulatory

Agency

Department of Revenue, Motor Vehicle Division

Pre-Emption

“Nothing in this chapter may be construed to limit further regulation of a

transportation network company enacted by a municipality or county. However,

no municipality or county may enact further regulations relating to the insurance

requirements provided in this chapter.”

Driver

Requirements

Driver’s license and proof of vehicle registration

Background Check

Before allowing a person to act as a driver on the TNC digital network, TNC or

third-party must conduct local and national criminal background check, a search

of the national sex offender registry, and obtain and review a “copy of the

person’s driving record”

Vehicle

Requirements

Driver vehicles must comply with vehicle equipment laws

Taxes and Fees

None

January 2019 | Joint Transportation Committee | Regulation of TNCs: Policy Guide

TENNESSEE

Reference

Tennessee Annotated Code Title 65, Chapter 15, Part 3

Regulatory

Agency

Public Utility Commission

Pre-Emption

Yes, except for airports, which may “adopt reasonable standards, regulations,

procedures, and fees for conducting transportation network services”

Driver

Requirements

At least 19 years of age

Background Check

TNC or third-party local and national criminal background check including a

multistate criminal records locator or other similar commercial nationwide

database with validation, a search of the national sex offender registry, and

motor vehicle records for driver

Driver is disqualified for certain moving violations in the three-year history, and

certain driving and other crimes in the seven-year history

Vehicle

Requirements

Motor vehicle must be registered

Taxes and Fees

None

January 2019 | Joint Transportation Committee | Regulation of TNCs: Policy Guide

TEXAS

Reference

Texas Code Title 14, Subtitle C, Chapter 2402

Texas Code Title 10, Subtitle C, Chapter 1954

Texas Administrative Code Chapter 95

Regulatory

Agency

Department of Licensing and Regulation

Pre-Emption

Yes, except for airports, which may “impose regulations, including a reasonable

fee” on TNCs providing service to or from the airport

Municipalities may contract with a TNC for coordination of large events

Driver

Requirements

At least 18 years of age

Background Check

Before permitting an individual to log in as a driver on the company’s digital

network, the TNC or third-party must conduct a background check, including multi-

state/multi-jurisdiction criminal records locator, a search of the national sex

offender public website, and driving record

Driver is disqualified for certain moving violations or offenses in the three-year

history, and certain crimes in the seven-year history

Vehicle

Requirements

Has four doors, and a maximum capacity of eight people, including driver

Taxes and Fees

TNC permit fee “in the amount determined by department rule to cover the costs

of administrating this chapter”

Costs to administer detailed in administrative code, with a $10,500 original

application fee, $7,000 annual renewal fee, $25 permit amendment fee, $25

address change fee, and $25 name change fee

January 2019 | Joint Transportation Committee | Regulation of TNCs: Policy Guide

UTAH

Reference

Utah Code Title 13, Chapter 51

Regulatory

Agency

Department of Commerce, Division of Consumer Protection

Pre-Emption

Yes, except that municipal, county, or local governments may regulate TNC

services at an airport

Driver

Requirements

At least 19 years of age

Valid Utah driver’s license

Background Check

Before allowing a driver to use the TNCs software application, the TNC must

conduct a criminal background check and obtain and review a report of driving

history

Driver is disqualified for certain moving violations in the three-year history, and

certain crimes in the seven-year history

Vehicle

Requirements

Vehicle must be registered with the Division of Motor Vehicles

Vehicle must meet equipment standards and emission requirements adopted by a

county

Taxes and Fees

$5,000 annual TNC permit fee, with revenues used to cover costs to administer

chapter

January 2019 | Joint Transportation Committee | Regulation of TNCs: Policy Guide

VERMONT

Reference

Vermont Senate Proposal H-0143*

*as of this report state law was not yet on the books

Regulatory

Agency

Commissioner of Motor Vehicles

Pre-Emption

Yes

“A municipality shall not adopt an ordinance, resolution, or bylaw regulating

transportation network companies that is inconsistent with the requirements of this

chapter,” excepting regulations adopted by a municipality with a population of

more than 35,000 residents (to be repealed on July 1, 2022)

Driver

Requirements

None

Background Check

Before acting as a driver on the network and annually thereafter, an entity

accredited by the National Association of Professional Background Screeners

must conduct a background check including criminal record search from the

Vermont Crime Information Center, a motor vehicle check, and a search of the

Vermont and national sex offender registries

Driver is disqualified for certain offenses in the seven-year history period, and

certain other offenses and violations in the three-year history period

Vehicle

Requirements

Meet state vehicle inspection standards

Taxes and Fees

None

January 2019 | Joint Transportation Committee | Regulation of TNCs: Policy Guide

VIRGINIA

Reference

Virginia Law Title 46,2 Subtitle V, Chapter 20, Article 15

Regulatory

Agency

Agency of Transportation, Department of Motor Vehicles (DMV)

Pre-Emption

Yes

Driver

Requirements

At least 21 years of age

Background Check

Background check before operating as a TNC partner and every two years,

including multi-state/multi-jurisdiction criminal records database search, a search

of the sex offender and crimes against minors registry, by a person accredited

by the National Association of Professional Background Screeners

Before operating as a TNC partner and once annually, obtain and review a

driving history research report

Vehicle

Requirements

Seating capacity of no more than eight, including driver

Not been issued a certificate of title branding the vehicle as salvage,

nonrepairable, or rebuilt

Valid annual Virginia safety inspection

Taxes and Fees

$100,000 TNC permit fee or $20 surcharge for each TNC partner’s driver

transcript obtained from DMV

January 2019 | Joint Transportation Committee | Regulation of TNCs: Policy Guide

WASHINGTON, D.C.

Reference

Code of the District of Columbia Title 50, Chapter 3, Subchapter 1, Section 29

Regulatory

Agency

Department of For-Hire Vehicles

Pre-Emption

Not applicable

Driver

Requirements

At least 21 years of age

Driver’s license issued by the District of Columbia, Maryland, or Virginia

Background Check

Before approving a registration application, the TNC or a third-party must

conduct a local and national criminal background check, a search of the national

sex offender database background check and a full driving record check.

Thereafter, the checks should be conducted every three years

Driver is disqualified for certain offenses in the three-year history period, and

certain other offenses in the seven-year history period

Vehicle

Requirements

Safety inspection within 90 days of beginning service

Has at least four doors

Is not more than 10 model year of age at entry into service and no more than 12

model years of age while in service

Pre-trip and prearranged ride insurance

Taxes and Fees

$25,000 initial (2 years) TNC permit fee; $1,000 renewal (2 years)

1% of gross revenue

January 2019 | Joint Transportation Committee | Regulation of TNCs: Policy Guide

WEST VIRGINIA

Reference

West Virginia Code Chapter 17-29

Regulatory

Agency

Department of Transportation, Division of Motor Vehicles

Pre-Emption

Yes

Driver

Requirements

At least 19 years of age

Background Check

Before allowing an individual to accept trip requests through a TNC digital

platform, the TNC or a third-party must check of multi-state and multi-

jurisdictional criminal records, national sex offender registry, and driving history

research report

Vehicle

Requirements

Must meet state inspection requirements for a private motor vehicle

Taxes and Fees

$1,000 annual TNC permit fee deposited into the Motor Vehicle Fees Fund

January 2019 | Joint Transportation Committee | Regulation of TNCs: Policy Guide

WISCONSIN

Reference

Wisconsin Statute Chapter 440.40

Regulatory

Agency

Department of Safety and Professional Services

Pre-Emption

Yes

Driver

Requirements

At least 19 years of age

Background Check

Before allowing an individual to be a participating driver for a TNC, the TNC or

third-party must conduct a background check of multi-state and multi-jurisdictional

criminal records and national sex offender registry database and obtain and

review a driving history research report

Vehicle

Requirements

Must satisfy all state vehicle safety and emissions standards for private motor

vehicles

Taxes and Fees

$5,000 annual TNC license fee

January 2019 | Joint Transportation Committee | Regulation of TNCs: Policy Guide

WYOMING

Reference

Wyoming Statute 31-20

Regulatory

Agency

Department of Transportation

Pre-Emption

Yes

Driver

Requirements

None

Background Check

Before allowing an individual to act as a driver, the TNC or third-party shall

conduct a background check of multi-state or multi-jurisdictional criminal records

or other similar nationwide check and search of Department of Justice national

public sex offender website and driving history check

Vehicle

Requirements

None

Taxes and Fees

None

January 2019 | Joint Transportation Committee | Regulation of TNCs: Policy Guide

Appendix C. Jurisdictions Adopting King County Code

January 2019 | Joint Transportation Committee | Regulation of TNCs: Policy Guide

JURISDICTION

RELEVANT MUNICIPAL

CODE

ADOPTS KING COUNTY

CODE?

CITY POWERS

MAINTAINED

Auburn

5.20.230 Taxicab

businesses

Adopt King County Code 6.64

by reference

Bellevue

Chapter 5.16 For Hire

Vehicles

Adopt King County Code 6.64

by reference

Enforcement

Burien

Chapter 5.55 Taxicabs and

For-Hire Vehicles

Adopt King County Code 6.64

by reference

Covington

N/A

Interlocal agreement with

King County

Enumclaw

Chapter 5.72

Taxicabs

Adopt King County Code 6.64

by reference

Federal Way

Chapter 12.45 Taxicabs

Adopt King County Code 6.64

by reference

Issaquah

Chapter 5.44 Taxis –

Businesses and Drivers

Adopt King County Code 6.64

by reference

Issue notices of violation and

court citations for violations of

City ordinance

Kenmore

N/A

Interlocal agreement with

King County

Kent

Chapter 5.03 Taxicabs,

Vehicles For Hire, and

Transportation Network

Companies

Adopt King County Code 6.64

by reference

City business license required

Kirkland

Chapter 7.44 Taxicabs and

For-Hire Vehicles

Adopt King County Code 6.64

by reference, with exclusions

and modifications in Sections

7.44.020 through 7.44.030

Maple Valley

Chapter 5.15 Taxicabs

Adopt King County Code 6.64

by reference

Redmond

Chapter 5.16 Taxicabs

Adopt King County Code 6.64

by reference

City business license required

per RMC 5.04

Renton

N/A

Interlocal agreement with

King County

Sammamish

Chapter 6.05 Taxis –

Businesses and Drivers

Adopt King County Code 6.64

by reference

Issue notices of violation and

court citations for violations of

City ordinance

SeaTac

Chapter 5.15 For-Hire

Regulations

Adopt King County Code 6.64

by reference

Violation of these regulations is

a violation of City ordinance

and subject to a fine

Shoreline

Chapter 5.07.700 Taxis –

Businesses and Drivers

Adopt King County Code 6.64

by reference

January 2019 | Joint Transportation Committee | Regulation of TNCs: Policy Guide

Appendix D. Summary of Local TNC Requirements

January 2019 | Joint Transportation Committee | Regulation of TNCs: Policy Guide

Spokane (population 220,100)

Operated through MOUs through the end of 2018 the contents of which are described below.

Licenses/Fees

TNC administrative fee: $25,000

Driver Requirements

21 years of age with valid driver's license

Proof of motor vehicle registration and current automobile

liability insurance

Background Checks

National criminal background check, including: national sex

offender database; no less than seven years

Disqualifiers: driving under the influence, fraud, use of a motor vehicle to commit a felony, a crime involving

property damage, and/or theft, or conviction at any time for sexual offenses, acts of violence, or acts of terror

Review driving history and disqualify those with: more than three moving violations or major moving violations

in three-year period prior to check

TNC must maintain driver criminal background records for two years and provide up to five operators each

quarter within 15 business days of written request.

Vehicle Requirements

Street legal coupes, sedans, or light-duty vehicles

19-pt inspection

TNC must provide reports of annual inspections upon request by City

Insurance Requirements: Chapter 48.177 RCW

Name TNC as insured and include an endorsement covering the City as an additional insured

Operational Requirements

Rates. Must disclose rates used or suggested compensation on app and/or website.

Records. Maintain accurate and up-to date records of all drivers providing services through the platform.

Method of Soliciting Rides. TNC drivers shall neither solicit nor accept street hails.

Driver Information. TNC software application must display driver name and photo.

Vehicle information. TNC software application must display the vehicle make, model, and license plate.

Receipts. Must be provided if requested, can be electronic.

Driver Training. Must establish a driver-training program to ensure safe operation of vehicle.

Customer Service. Must maintain a website that provides a customer service telephone number and website.

Accessibility/Nondiscrimination. No one can be excluded on the basis of age, sex, race, color, religion,

creed, marital status, familial status, sexual orientation including gender expression or gender identity, national

origin, honorably discharged veteran or military status, the presence of any sensory, mental or physical

disability, or use of a service animal by a person with disabilities.

Zero Tolerance drug/alcohol policy.

Maintain Spokane, WA registered agent.

Data Sharing/Audits

City may audit five driver records each quarter

City may request records at any time to investigate a specific complaint

In December of 2018, Spokane City

Council passed an ordinance regarding

for-hire vehicle regulations. Ordinance No.

C35710 will enact a new chapter 10.34A

of the Spokane Municipal Code that

addresses transportation network

companies. The proposed chapter can be

found starting on page 220 of the City

Council agenda from December 10, 2018.

January 2019 | Joint Transportation Committee | Regulation of TNCs: Policy Guide

Vancouver (population 183,500)

Chapter 5.76 Taxi & Transportation Network Company Code

VMC 5.76 Administrative Rules

Licenses/Fees

Annual application review fee: $200

TNC must submit affidavit indicating compliance with ordinance

Business license required unless business generates less than $12,000 in gross receipts per year within city

Fee: $125 +$50 per employee and no more than $20,000 total

Driver Requirements

21 years of age with valid driver's license (for at least one year)

Proof of motor vehicle registration and current automobile liability insurance

Defensive driving training required

Background Checks

Cannot be convicted of one or more disqualifying crimes during the five years prior to driving

Disqualifiers: driving under the influence, reckless or negligent driving, hit and run or leaving scene of injury

accident, fatal accident, assault or violent crime, gun-related violation, sexual offense, resisting or evading

arrest or eluding law enforcement, felony, theft robbery or burglary

Cannot be a sex offender (no time limit)

Vehicle Requirements

<10 years old

Annual standard inspection by ASE certified mechanic

Insurance Requirements

While operating in the city as a TNC:

$100,000/person for bodily injury

$300,000/accident for bodily injury of all persons

$25,000 for damage to property

Operational Requirements

Rates. Must disclose estimated cost of ride prior to initiating ride.

Company Identification Vehicle must be clearly marked to allow individuals to associate the vehicle with the

affiliated TNC.

Data Sharing/Audits

All matters in affidavit are subject to audit

Enforcement: City manager has primary authority

Penalties

False affidavit: $10,000

Operating without special license (company): $10,000 for each violation

Driver operating without Vancouver licensed TNC affiliation: $1,000 for each violation

Driver operating without Vancouver business license: $1,000 per violation

January 2019 | Joint Transportation Committee | Regulation of TNCs: Policy Guide

Everett (population 111,200)

5.68 For-Hire Vehicles

Licenses/Fees

For-hire license renewed annually: $500 1-10 drivers; $1,000 11+ drivers

TNC must submit affidavit indicating compliance with ordinance

Business license required for TNC and TNC driver: $80

Driver Requirements

21 years of age with valid driver's license for one year immediately preceding

Proof of motor vehicle registration and current automobile liability insurance

May only operate in affiliation with TNC

Background Checks

Obtain criminal background check; no less than seven years

Local, state, and national criminal background check plus national and state sex offender registry check

Disqualifiers: driving under the influence, reckless or negligent driving, hit and run, assault or violent offense,

harassment, gun-related violation, sexual offense, resisting arrest, felony, crime involving fraud, crime involving

theft, registered sex offender; may not have committed three or more moving violations during any 12-month

period during previous three years.

Vehicle Requirements

Four doors, two into passenger area

Safety inspection annually by ASE certified mechanic.

Accept inspections from King County/Seattle or 28-pt inspection

Insurance Requirements: Chapter 48.177 RCW

Operational Requirements

Method of solicitation. Can neither accept nor solicit street hails.

Vehicle. May only operate driver’s personal vehicle.

Rates. Must disclose estimated costs of ride up-front.

Receipts. Must be provided if requested, can be electronic.

Driver Information. TNC software application must display driver name and photo

Vehicle information. TNC software application must display the vehicle make, model, and license plate.

Company Identification. Vehicle must be marked to allow government official or passenger to associate

vehicle with a TNC by viewing front or rear of vehicle.

Zero Tolerance drug/alcohol policy.

Maintain WA registered agent.

Data Sharing/Audits

No more than twice per license year unless City determines a reason for additional audits

City may audit no more than 20 drivers

TNC must provide records related to active investigations of violations of TNC regulation

TNC must maintain records for six years

January 2019 | Joint Transportation Committee | Regulation of TNCs: Policy Guide

100

Enforcement: City Clerk

Penalties:

First violation in 12-month period is a class 1 civil infraction

Violation is considered public nuisance and City may use action in county superior court

City may pursue any remedy or relief it deems appropriate beyond provisions in chapter

January 2019 | Joint Transportation Committee | Regulation of TNCs: Policy Guide

101

Yakima (population 94,190)

Chapter 5.79 Transportation Network Company

Licenses/Fees

TNC License renewed annually: $1,000

TNC must submit affidavit indicating compliance with ordinance

WA UBI number and Yakima business license: $42.90 - $1,285.20 based on number of employees

Driver Requirements

21 years of age with valid WA driver's license for one year (exemptions for military and students)

Self-certify physical and mental fitness

Proof of vehicle registration and auto liability insurance

Must report within 48 hours any restriction, suspension, or revocation of driver's license or vehicle registration,

or any changes in health or medical condition

Background Checks

Background check conducted annually; seven years of history

Multi-state/multi-jurisdiction criminal records or similar commercial nationwide database with validation and

DOH national sex offender public website

Disqualifiers: one infraction for negligent driving, three+ moving violations in a 12-month period during prior

three years, habitual traffic offender (46.65), criminal conviction of any violent offense, serious violent offense,

most serious offense, sexual offense, cyberstalking, harassment, stalking, any offense under RCW 9A.36, or

driving under the influence, reckless driving, hit and run, or any other driving-related crime within the RCW

46.61.500 through .540

TNC must maintain driver criminal background records for two years

Vehicle Requirements

<10 years old

Annual 21-pt inspection by ASE certified mechanic

Maintain inspection records for at least three years

Insurance Requirements: Chapter 48.177 RCW

Operational Requirements

Rates. Displayed in app prior to entering vehicle.

Records. All trips made by all drivers for no less than one year from the date each trip was provided.

Method of Soliciting Rides. TNC drivers shall neither solicit nor accept street hails.

Driver Information. TNC software application must display driver name and photo.

Vehicle information. TNC software application must display the vehicle make, model, and license plate.

Vehicle. Shall not operate unless vehicle equipment is in sanitary and safe condition for transportation of

passengers.

Vehicle Occupancy. No nonpaying passengers (except those with a paying adult) can ride in a TNC occupied

by a paying passenger, and a driver may not pick up additional passengers in a vehicle occupied by paying

passenger without consent of paying passenger.

Third-party operation. No third-party can operate a TNC vehicle while driver is logged in to the network of

affiliated TNC.

Zero Tolerance drug/alcohol policy.

January 2019 | Joint Transportation Committee | Regulation of TNCs: Policy Guide

102

Discrimination. No TNC driver shall discriminate against passengers or potential passengers on the basis of

race, color, national origin or ancestry, religious belief or affiliation, sex, disability, age, sexual orientation,

marital status, gender identity, familial status or honorably discharged veteran or military service.

Maintain WA registered agent.

Data Sharing/Audits

No more than once per license year City may audit no more than 20 drivers operating in the city and City

reserves right to audit all records if discrepancy found

Takes place at City Hall

TNC must provide records related to active investigations of violations of TNC regulation

Enforcement: Office of Code Administration

Penalties.

License can be revoked by City Manager for failure to meet requirements of chapter, materially false

statements in application, any violation of chapter by TNC. Can be appealed to City Council.

Violations of ordinance are misdemeanors, carry a penalty not to exceed $1,000 or imprisonment not to

exceed 90 days

January 2019 | Joint Transportation Committee | Regulation of TNCs: Policy Guide

103

Bellingham (population 88,500)

Chapter 6.55 Transportation Network Company Services

Licenses/Fees

TNC license: $1,000/year

TNC must submit affidavit indicating compliance with ordinance

TNC and drivers must have business registration: $40 (Bellingham) + $19 application fee (WA)

Driver Requirements

21 years of age with valid driver's license

Proof of motor vehicle registration and current automobile liability insurance

TNC must keep a record of TNC drivers

Background Checks

TNC or third-party conducted annually; no less than seven years

Local, state, and national criminal background check plus national and state sex offender registry check

Disqualifiers: sex offender or anyone convicted in the last seven years of driving under the influence, fraud,

sexual offenses, property damage or theft, acts of violence/terror, or motor vehicle use to commit a felony

cannot be a driver

TNC must keep records for two years

Vehicle Requirements

Annual 19-pt inspection

Insurance Requirements: Chapter 48.177 RCW

Operational Requirements

Method of Soliciting Rides. TNC drivers shall neither solicit nor accept street hails.

Driver Information. Display in the app the name and photograph TNC driver, as well as vehicle make, model,

and license plate number.

Rates. Displayed in app prior to entering vehicle and option for estimated fare.

Zero Tolerance drug/alcohol policy.

Maintain WA registered agent.

Data Sharing/Audits

No more than twice per license year City may audit no more than 20 drivers operating in the city

Takes place at City Hall

TNC must provide records related to active investigations of violations of TNC regulation

Enforcement: Director of Finance Department

Penalties.

License can be revoked for good cause, including materially false statement or any violation of ordinance

Violations of ordinance are misdemeanors, carry a penalty not to exceed $1,000 or imprisonment not to

exceed 90 days

January 2019 | Joint Transportation Committee | Regulation of TNCs: Policy Guide

104

Kennewick (population 81,850)

Chapter 6.44 - Taxicab and Transportation Network Company Code

Licenses/Fees

TNC License Application Review Fee:

$300 <10 drivers

$700 11-40 drivers

$2,000 >40 drivers

Business License: $55/year

Driver Requirements

21 years of age with valid driver's license

Proof of motor vehicle registration and current automobile liability insurance

TNC must keep a record of TNC drivers

Background Checks

TNC or third-party conducted annually; no less than seven years

Local, state, and national criminal background check plus national and state sex offender registry check

Disqualifiers: sex offender or anyone convicted in the last seven years of driving under the influence, fraud,

sexual offenses, property damage or theft, acts of violence/terror, or motor vehicle use to commit a felony

cannot be a driver

TNC must keep records for two years

Vehicle Requirements

21-point vehicle inspection/annually

TNC must keep a record of all vehicle inspections

Insurance Requirements: Chapter 48.177 RCW

Operational Requirements

Rates. Displayed in app prior to entering vehicle.

Records. All trips made by all drivers for no less than one year from the date each trip was provided.

Driver Information. Display in the app the name and photograph TNC driver.

Marking of Vehicles. Display in the app the vehicle make, model, and license plate number.

Method of Soliciting Rides. TNC drivers shall neither solicit nor accept street hails.

Receipts. Must be provided at time of payment and contain driver name, charges, and date of payment.

Zero Tolerance drug/alcohol policy.

Maintain WA registered agent.

Data Sharing/Audits

No more than twice per license year City may audit 20 percent of drivers not to exceed 20 drivers that have

operated in past 30 days

TNC must provide records related to active investigations of violations of TNC regulation

Enforcement: Chief of Kennewick Police Department or designee

January 2019 | Joint Transportation Committee | Regulation of TNCs: Policy Guide

105

Pasco (population 73,590)

Chapter 5.45A Taxicab and Transportation Network Company Licensing

Licenses/Fees

TNC License Application Review Fee:

$300 <10 drivers

$700 11-40 drivers

$2,000 >40 drivers

Business License: $40/year

Driver Requirements

21 years of age with valid Washington driver's license

Proof of UBI

Proof of current automobile liability insurance

TNC must keep a record of TNC drivers for one year after relationship with TNC ends

Background Checks

TNC or third-party conducted annually; no less than seven years

Local, state, and national criminal background check plus national and state sex offender registry check

Disqualifiers: sex offender or anyone convicted in the last seven years of driving under the influence, fraud,

sexual offenses, property damage or theft, acts of violence/terror, or motor vehicle use to commit a felony

cannot be a driver

TNC must keep records for two years

Vehicle Requirements

19-point vehicle inspection/annually

TNC must keep a record of all vehicle inspections

Insurance Requirements: Chapter 48.177 RCW

Operational Requirements

Rates. Displayed in app prior to entering vehicle and option for estimated fare.

Records. All trips made by all drivers for no less than one year from the date each trip was provided.

Driver Information. Display in the app the name and photograph TNC driver.

Marking of Vehicles. Display a logo visible from outside vehicle. Display in app the vehicle make, model, and

license plate number.

Method of Soliciting Rides. TNC drivers shall neither solicit nor accept street hails.

Receipts. Must be provided at time of payment and contain driver name, charges, and date of payment.

Zero Tolerance drug/alcohol policy.

Maintain WA registered agent.

Data Sharing/Audits

No more than twice per license year City may audit 20 percent of drivers not to exceed 20 drivers that have

operated in past 30 days

TNC must provide records related to active investigations of violations of TNC regulation

Enforcement: City Clerk of City of Pasco or designee

January 2019 | Joint Transportation Committee | Regulation of TNCs: Policy Guide

106

Richland (population 55,320)

Chapter 5.22 Taxicab and Transportation Network Companies

Licenses/Fees

TNC License Application Review Fee:

$300 <10 drivers

$700 11-40 drivers

$2,000 >40 drivers

Business License: $40/year + $12/FTE in excess of two FTE

Driver Requirements

21 years of age with valid driver's license

Proof of motor vehicle registration and current automobile liability insurance

TNC must keep a record of all TNC drivers

Background Checks

TNC or third-party conducted annually; no less than seven years

Local, state, and national criminal background check plus national and state sex offender registry check

Disqualifiers: sex offender or anyone convicted in the last seven years of driving under the influence, fraud,

sexual offenses, property damage or theft, acts of violence/terror, or motor vehicle use to commit a felony

cannot be a driver

TNC must keep records for two years

Vehicle Requirements

21-point vehicle inspection/annually

TNC must keep a record of all vehicle inspections

Insurance Requirements: Chapter 48.177 RCW

Operational Requirements

Rates. Displayed in app prior to entering vehicle.

Records. All trips made by all drivers for no less than one year from the date each trip was provided.

Driver Information. Display in the app the name and photograph TNC driver.

Marking of Vehicles. Display in the app the vehicle make, model, and license plate number.

Method of Soliciting Rides. TNC drivers shall neither solicit nor accept street hails.

Receipts. Must be provided at time of payment and contain driver name, charges, and date of payment.

Zero Tolerance drug/alcohol policy.

Maintain WA registered agent.

Data Sharing/Audits

No more than twice per license year City may audit 20 percent of drivers not to exceed 20 drivers that have

operated in past 30 days

TNC must provide records related to active investigations of violations of TNC regulation

Enforcement: City of Richland Finance Director or designee

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Longview (population 37,710)

Chapter 5.82 Taxi and Transportation Network Company Code

Licenses/Fees

Transportation License renewed annually:

$300 <10 drivers

$700 11-40 drivers

$2,000 >40 drivers

Driver Requirements

21 years of age with valid driver's license continuously licensed for previous one-year period

Proof of motor vehicle registration

Proof of current automobile liability insurance

TNC must maintain records for all drivers

Background Checks

TNC or third-party conducted and must have certification from National Association of Background Screeners

Local, state, and national criminal background check plus national sex offender registry check

Disqualifiers: Sex offender or anyone involved in driving under the influence, felony fraud, sexual offenses,

acts of violence/terror, or motor vehicle use to commit a felony

Vehicle Requirements

19-point vehicle inspection annually

TNC must keep a record of all vehicle inspections

Inspection may be passed in Oregon or Washington

Insurance Requirements: Chapter 48.177 RCW

Operational Requirements

Rates. Displayed in app prior to entering vehicle

Records. All trips made by all drivers for no less than one year from the date each trip was provided.

Driver Information. Display in the app the name and photograph TNC driver.

Marking of Vehicles. Display in the app the vehicle make, model, and license plate number.

Method of Soliciting Rides. TNC drivers shall neither solicit nor accept street hails.

Receipts. Must be provided at time of payment and contain driver name, charges, and date of payment.

Zero Tolerance drug/alcohol policy.

Maintain WA registered agent.

Data Sharing/Audits

No more than twice per license year City may audit 20 percent of drivers not to exceed 20 drivers that have

operated in past 180 days

TNC must provide records related to active investigations of violations of TNC regulation

Enforcement: City Manager

Penalties.

License can be revoked for good cause, including materially false statement or any violation of ordinance

Violations of ordinance are misdemeanors, carry a penalty not to exceed $1,000 or imprisonment not to

exceed 90 days

January 2019 | Joint Transportation Committee | Regulation of TNCs: Policy Guide

108

Pullman (population 33,730)

Chapter 6.94 Taxicab and Transportation Network Company Licenses

Licenses/Fees

Transportation License renewed annually:

$300 <10 drivers

$700 11-40 drivers

$2,000 >40 drivers

Driver Requirements

21 years of age with valid driver's license continuously licensed for previous one-year period

Proof of motor vehicle registration

Proof of current automobile liability insurance

TNC must maintain records for all drivers

Background Checks

TNC or third-party conducted and must have certification from National Association of Background Screeners

Local, state, and national criminal background check + national sex offender registry check

Disqualifiers: Sex offender or anyone involved in driving under the influence, felony fraud, sexual offenses,

acts of violence/terror, or motor vehicle use to commit a felony

Vehicle Requirements

19-point vehicle inspection annually

TNC must keep a record of all vehicle inspections

Insurance Requirements: Chapter 48.177 RCW

Operational Requirements

Rates. Displayed in app prior to entering vehicle.

Records. All trips made by all drivers for no less than one year from the date each trip was provided.

Driver Information. Display in the app the name and photograph TNC driver.

Marking of Vehicles. Display in app the vehicle make, model, and license plate number.

Method of Soliciting Rides. TNC drivers shall neither solicit nor accept street hails.

Receipts. Must be provided at time of payment and contain driver name, charges, and date of payment.

Zero Tolerance drug/alcohol policy.

Maintain WA registered agent.

Data Sharing/Audits

No more than twice per license year City may audit 20 percent of drivers not to exceed 20 drivers that have

operated in past 180 days

TNC must provide records related to active investigations of violations of TNC regulation

Enforcement: Chief of Pullman Police

Penalties.

License can be revoked for good cause, including materially false statement or any violation of ordinance

Violations of ordinance are misdemeanors, carry a penalty not to exceed $1,000 or imprisonment not to

exceed 90 days

January 2019 | Joint Transportation Committee | Regulation of TNCs: Policy Guide

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Kelso (population 12,080)

Chapter 5.60 Taxicabs

Licenses/Fees

Annual application review fee set by City Council

Finance director or designee may issue if affidavit of compliance is submitted

Business license required for TNC drivers: $50

Driver Requirements

Driver training required (detailed in administrative rules)

Background Checks

Driver background check required (detailed in administrative rules)

Vehicle Requirements

Vehicle safety and maintenance required (detailed in administrative rules)

Insurance Requirements

Insurance required (detailed in administrative rules)

Operational Requirements

(If any, they are detailed in administrative rules)

Data Sharing/Audits

All matters in affidavit are subject to audit

Enforcement: City council has primary authority

Penalties

False affidavit: $10,000

Operating without special license (company): $10,000 for each violation

Driver operating without Kelso special-licensed TNC: $1,000 for each violation

Driver operating without Kelso business license: $1,000 per violation