Governor Signs Measure to Expand Ridesharing Services in the Show-Me State
Last week, Missouri lawmakers checked off another big-ticket item on our to-do list when we sent House Bill 130, relating to transportation network companies (TNCs), to the governor. In a bill signing ceremony at St. Charles Community College on Monday, the governor signed HB 130 into law. With that, Missouri officially joined the ranks of 39 other states that already have ridesharing laws on the books, including all eight of our neighbors.
For those who may not be as familiar with the concept, ridesharing companies utilize app-based technology to receive ride requests and transfer them to drivers who are employed by the company. Because TNCs aren’t regulated like most traditional taxi services, they can charge lower fees. Uber and Lyft are the two largest ridesharing companies currently operating in the U.S. As of right now, Uber operates in five Missouri markets, while Lyft only operates in Springfield.
Transportation network companies have a number of unique features consumers tend to find especially appealing. One of these is real-time GPS monitoring, which allows riders to know exactly where their driver is during the transaction. Because of this, riders don’t have to wait outside on the streets to hail a cab. Since payments are made via credit card, debit card or PayPal, no cash is exchanged between the rider and driver, and all receipts are electronic. Riders can see reviews from their driver’s prior passengers, and both riders and drivers are able to rate each other after the ride is complete.
Also known as the Uber or Lyft bill, HB 130 creates a regulatory framework for TNCs to operate statewide in Missouri. Beginning April 28, 2018, a TNC must apply for an annual license from the Department of Revenue to do business in Missouri and maintain any required insurance coverage. Each TNC’s digital network must display a picture of the driver and the license plate number of the vehicle before the rider enters the vehicle. The measure also spells out criteria for fare charges and customer receipts and requires TNCs to adopt nondiscrimination and privacy policies for their riders. Finally, Kansas City and St. Louis will be allowed to audit TNCs twice a year to ensure compliance with the provisions of HB 130.
Critically, this legislation was drafted to ensure any participating TNC meets high safety standards for both riders and drivers. Here are just a few the safety standards included in HB 130. First, all vehicles must meet Missouri’s motor vehicle safety inspection requirements. Second, TNCs will be required to conduct local and national criminal background checks for every driver. If a TNC learns that a driver has been convicted of an offense that would preclude the driver from being eligible as a TNC driver, the TNC shall immediately revoke the driver’s ability to accept trip requests and notify the DOR. Third, all TNCs must adopt a zero tolerance policy toward drivers using intoxicating substances. Finally, TNCs must report to the DOR any driver who is involved in a traffic accident or incident that resulted in serious bodily injury or fatality.
Although ridesharing has already come to Missouri’s metropolitan areas, statewide expansion has stalled in previous years due to a variety of concerns. Thankfully, lawmakers worked hard this year to address those concerns, iron out their differences and reach a solid compromise.
With HB 130, Missouri will finally be in a position to start reaping the same benefits other states have seen. We will invite greater economic development to regions in every corner of the state and create as many as 10,000 new driver jobs. We will make room for further innovation, allow our free market to find solutions to environmental and infrastructure issues and reduce the need for government action and resources. Perhaps most importantly, this new law will increase Missourians’ access to affordable transportation and save lives by making it easier for impaired drivers to find safe rides home.
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Senator Will Kraus serves Eastern Jackson County in the 8th State Senatorial District.