A. Deficiencies of the TNCs’ Self-Regulation Model
The essence of Transportation Network Company (“TNC”) laws revolves around a “we can do it faster and better than government” attitude. TNC laws generally transfer the responsibility of conducting background checks and vehicle inspections with less stringent requirements from regulators to the TNC so that they can sign up as many drivers as possible. However, there is an ulterior motive, as no app-based dispatch model works without having an adequate supply of drivers. It is too costly and difficult to entice and subsidize the transfer of professionally licensed black car and taxicab drivers to TNCs (although this was done …show more content…
These TNC laws define a TNC by describing the same exact activity or service performed by taxicabs and limousines—transporting a paying passenger from point A to point B—and specifically exempt incumbent operators. Several of the newly enacted laws are “cookie cutter” versions of one another, which provide modest standards with which TNCs must comply in the areas of: licensing; insurance; driver vetting; vehicle standards; and accessibility.
For example, in California, some TNC regulatory requirements include:
• Conducting, or have a third party conduct, a local and national criminal background check for each participating driver that shall include both a multistate and multi-jurisdiction criminal records locator or other similar commercial nationwide database with validation; and a search of the United States Department of Justice National Sex Offender Public Web site.
• Inspecting all vehicles and maintaining the records of such inspections in case of an audit.
In Colorado, TNC regulatory requirements include:
• Obtaining and reviewing a criminal history record check for the individual before permitting an individual to act as a driver on their digital …show more content…
In April 2017, Massachusetts officials disqualified over 8,000 Uber, Lyft and other app-based vehicle drivers for failing a criminal background check. According to the report: “Hundreds were disqualified for having serious crimes on their record, including violent or sexual offenses, and others for driving-related offenses, such as drunken driving or reckless driving, according to the state Department of Public Utilities”. Also disqualified were 51 sex offenders and 352 offenders in incidents related to “Sex, Abuse, and Exploitation.” Despite the inferior background checks TNCs conduct, a plethora of convicts of criminal offenses were also recently discovered in Boston and