Michigan Senate Approves Rules For Ride-Hailing Companies

DAVID EGGERT, Associated Press

LANSING  (AP) - Uber and other ride-hailing services could legally operate in Michigan under a statewide regulatory framework endorsed Thursday by state lawmakers, who are expected to enact the bills before year's end.

The legislation — which was approved overwhelming by the Senate and is poised for House passage — would create uniform rules and registration fees for ride-hailing, taxi and limo companies, and pre-empt most local regulations. The businesses would have to conduct annual background checks on drivers and review applicants' driving history.

People could not become drivers if they have too many traffic violations, a recent felony conviction, are a sex offender or are under age 19. Yearly vehicle safety inspections would be required.

In 2013, the state sent Uber a cease and desist order alleging it was violating the law, but the San Francisco-based business has continued to operate in Michigan and has grown in popularity.

"Part of it is just to make sure there's a level playing field for everybody. The traditional taxicab companies had a pretty fair point that they were paying a lot of fees to local governments that Uber wasn't paying," said Sen. Tory Rocca, R-Sterling Heights.

Uber supports state regulations as opposed to a patchwork of rules that vary by municipality.

"They were operating for years outside the legal requirements," Rocca said. "It was important to have them operating within the law."

San Francisco-based Lyft urged quick approval of the "common-sense framework."

Also Thursday, Republican-controlled House committees were holding hearings on contentious voter ID and municipal retirement benefits legislation.

Bills not enacted in December will die and have to be reintroduced in the next two-year session.

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