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What’s the roadmap for ridesharing regulations look like?

This is going to be a challenge, no matter how you feel about it.

Uber

Several state legislators have made it clear they’re eager to take control of rules for ride-hailing companies in Texas, shifting power from individual cities to the state. But with six months until the next legislative session, there’s no clear consensus on how exactly to go about it.

The Legislature has tried before — and failed — to come up with statewide regulations sought by industry heavyweights Uber and Lyft to free them from conflicting local rules.

But the recent decision by voters in Austin — the conservative state’s liberal capital — to reject rules sought by the ride-hailing giants has been a rallying cry for lawmakers.

“We don’t live in a democracy,” said. Sen. Don Huffines, R-Dallas. “All the authority cities have comes from the Legislature. They exist by the mercy of the Legislature. So we have a distinct role in overseeing all political subdivisions that we create, and we’ve got to make sure that they don’t trample economic liberty, personal liberty and freedoms.”

After the Austin election, Huffines immediately called for state regulations, or what he called “deregulations,” and was unconcerned with overriding the will of local voters.

Lyft

“People get riled up, and they pick up their pitchforks and they run to the ballot box or they run to the barn and tar and feather or lynch someone,” he said. “We have rules of law relating to protecting the views of the minority.”

Huffines wasn’t the only state legislator whose ears perked up at news that Austin voters upheld city rules for ride-hailing companies over those backed by Uber and Lyft. His Senate colleague, Georgetown Republican Charles Schwertner, also pledged to draft legislation.

“We’re exploring all options,” Schwertner said. “There’s the background check and then there’s fingerprinting, those are two separate issues. There’s competing discussions … I personally have not made any decisions as to what is the best statutory language to put in the bill.”

[…]

For Schwertner, the layered concerns of ride-hailing companies, drivers, riders and municipalities indicate that statewide regulations would be the best route forward.

“I think the safety issue in my mind is paramount,” he said, pointing to concerns with drunk driving. “[There is] the mobility issue, economic issue — it’s multi-tiered. It’s not just a local control versus state regulation issue. It’s all those things. When you look at the totality of the concerns, it favors statewide, uniform, consistent and fair regulation.”

I’m glad to hear that from Sen. Schwertner, since his initial statements following the rejection of Prop 1 were mostly bombast. I’m still not convinced that the Legislature needs to step in on what has traditionally been a local issue, but if we can have a reasonably serious discussion about what we want ridesharing regulations to accomplish, and if we can get Uber and Lyft to be more forthcoming with their data, then this could be a positive experience. My personal preference, if this must happen, is for the state to provide a minimum set of standards that cities and counties are then allowed to add onto as they see fit. And if we really care about having a free market and not just a greased skid for the two major players, then let’s be sure to not impede the new players who are trying to fill the niche that Uber and Lyft voluntarily left behind.

On the matter of overriding municipal ordinances, that appears to now be on the table:

After a visit Wednesday from top Uber brass, Texas state Rep. Joe Pickett, D-El Paso, appeared to soften his position against a possible statewide bill that would replace city ordinances regulating rideshare companies.

As the chairman of the House Transportation Committee, Pickett’s position on the matter is crucial. Any bill regulating how companies such as Uber screen their drivers likely would be assigned to his committee, where Pickett would have power to block them.

[…]

Immediately after [the Austin Prop 1 rideshare vote], two Republican lawmakers said they would introduce bills in the 2017 legislative session that would overturn fingerprint requirements in Austin and Houston. Pickett said he would oppose such bills since they would thwart the will of local voters.

However, the El Paso lawmaker this week said there might be some room for compromise.

Houston Chronicle business columnist Chris Tomlinson in May speculated that the real reason Uber and Lyft are opposed to fingerprinting drivers is that their turnover rate is so high that many drivers won’t wait the 10 or so days it takes for the checks to be completed.

An Uber spokeswoman Thursday did not respond directly when asked if that is the case.

But Pickett said that on Wednesday he discussed a compromise with Uber brass that might solve that problem. Under it, riders could specifically request drivers who had undergone fingerprint-based FBI background checks.

“I told them that on the surface, it seemed like a hybrid that could work,” Pickett said.

Pickett goes on to say that he’d want to see if this idea is acceptable to cities and his colleagues first. It’s also not clear if Uber and Lyft would go for this; the basic idea has been floated in Austin with no apparent interest. There’s still a lot of moving parts here, and it’s not clear what if anything will be the consensus position, or at least the position that a majority will approve.

On a side note, good Lord is Don Huffines an idiot. Please, Dallas Democrats, find someone who can run against him in 2018. I know that’s an off-year and all, but his district isn’t that red. Even in the dumpster fire of 2014, SD16 was what passes for competitive, with Greg Abbott leading Wendy Davis by a 57.5-41.0 margin; not close, obviously, but slightly less Republican than the state as a whole. Please find a decent candidate and put some money into that race. Surely we can do better than this.

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3 Comments

  1. J.Davis says:

    Sen. Huffines is wrong when he says that “All the authority cities have comes from the Legislature.”

    Home rule cities derive their power from the Texas Constitution and look to the state legislature only as a limit on that authority. In other words, home rule cities may do anything that is not specifically prohibited by state law.

    http://www.tml.org/legal-qna/2005SeptemberSH.pdf

  2. Joshua ben bullard says:

    Austin Tx-state capital, now all the legislative body and lobbyists will no longer have uber and all business and all vistors back to the limited taxi medallion market…I can suspect which way the state will go on this,I wouldn’t be surprised if gov Abbott calls a special emergency session this summer to address..2400 taxi medallions in Houston,approx 2000/owned by one man.

  3. Steve Houston says:

    Sorry Joshua but Austin already has better companies expanding the market as they are playing by the rules. Trading one oligarchy for another hardly seems like a good plan, maybe some of those start ups will court Houston as well. But the only way Abbott will call a special session for the matter is if Uber/Lyft drop serious cash on him so I ask again, is that the best idea to run with?