[nagdu] Maryland bill would allow Uber to operate legally in the state

[Ginger Kutsch]

Maryland bill would allow Uber to operate legally in the state

By Luz Lazo March 5 

Source:
http://www.washingtonpost.com/local/trafficandcommuting/maryland-bill-would-
allow-uber-to-operate-legally-in-the-state/2015/03/05/618d81fa-c2b9-11e4-9ec
2-b418f57a4a99_story.html

 

Maryland lawmakers are tackling legislation that would give Uber and other
app-based car services permanent legal status in the state.

 

The proposal would bring Maryland in line with the District and Virginia,
where lawmakers recently approved regulatory frameworks for the popular
services. The measure has bipartisan support, but with just a little more
than a month left in this legislative session, it is unclear whether the
measure will make it out of committee.

 

Some lawmakers say that if an agreement can't be reached, the legislature
could decide to give Uber temporary permission to operate in the state while
new regulations are being worked out.

 

"It's time that a law like this be enacted so that we don't stand in the way
of innovation," said House Minority Leader Nicholaus R. Kipke (R-Anne
Arundel), one of the bill's 25 sponsors.

 

Under the proposed legislation, the companies would be required to register
with the Maryland Public Service Commission, which regulates the
pay-for-hire industry. The companies also would be required to institute
zero-tolerance policies regarding the use of drugs and alcohol by drivers
and to conduct background checks. This would include a comprehensive review
of drivers' criminal history and driving records as well as a search of the
public sex-offender registry.

 

The company or the driver would be required to maintain at least $1 million
in liability insurance. Further, drivers would be prohibited from
discriminating against or charging higher fares to passengers with
disabilities, including anyone with a service animal.

 

Zuhairah Washington, Uber's general manager for the D.C. area, said that the
bill recognizes ride-hailing as an innovative model and that its approach is
"common sense."

 

"We have heard a lot of positive things about Maryland being open for
business and Maryland embracing business, and so we are hopeful that will
bear out in a way that leads to this bill moving forward," she said.

 

Supporters say the legislation will not only modernize Maryland law by
creating a "Transportation Network Services" category but will also
distinguish the ride-hailing industry from the traditional taxi industry and
other private car services that are subject to decades-old statutes.

 

The legislation also would provide clarity for jurisdictions, including
Montgomery and Prince George's counties, that have their own regulations for
taxis and have struggled with how to handle the new services. Some
municipalities, including Annapolis, have ordered Uber to cease operations
and threatened to fine their drivers.

 

But cab and private sedan drivers and company owners in Maryland say the
legislation fails to provide the level of regulation necessary to protect
the public. They have argued against the app-based services, saying the
companies have bullied their ways into the market by avoiding regulation.

 

"They are allowed to operate without regulation in a regulated environment,"
said Dwight Kines, a spokesman for Veolia Transportation, which operates
about 80 sedans and more than 600 taxis in the state. "The taxi industry,
the sedan industry, the for-hire industry in Maryland all live under
regulations that have been in place for years. These companies are allowed
to do exactly the same thing we do without any of the regulations that are
placed for us."

 

Kines said the industry favors the approach of the Maryland Public Service
Commission, which is in the process of approving new regulations for the
ride-hailing industry.

 

The commission announced last week that Uber has agreed to apply for a
permit to operate its UberBlack and UberSUV services in the state and to be
treated as a "common carrier," complying with an August ruling that the
company is subject to state regulation. The agreement allows for the legal
operation of the company's high-end car services in the state but does not
address the operations of the cheaper UberX.

 

Some supporters of ride-hailing services fear the commission could
eventually rule that the new industry is not permissible under existing
statutes and potentially issue cease-and-desist letters.

 

Del. C. William Frick (D-Montgomery), another sponsor of the bill, said the
priority for the legislature will be to permit Uber and similar services to
operate in the state.

 

"I don't think it is essential for us before the session ends to decide what
the regulatory structure will be in perpetuity. I do think we will be able
to agree that UberX should not be shut down simply because it doesn't fit
with our existing regulatory structure," he said.

 

"The priority will be preserving a very popular service. Maybe we do need to
develop some different regulations, but that doesn't seem to be an imminent
concern," Frick said. "I am an Uber user. It is a good service, people like
it, it's filling a hole and the fact that it's not consistent with how
things have been done before doesn't mean that it should be -prohibited."

 

The Maryland Senate and House are reviewing similar bills. The Senate bill
cleared its first hurdle Thursday when it was referred out of the Rules
Committee and now stands a chance at a full hearing in a few weeks. The
House bill is up for review by the Rules and Executive Nominations Committee
next week.