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SMALL BUSINESS NEWS

Mar 2018

 

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New Rules for Transportation Businesses In Connecticut

There are new requirements for transportation businesses operating in the State of Connecticut.

On and after January 1, 2018, each transportation network company shall register annually with the Commissioner of Transportation.

Transportation network company" means a company, corporation, partnership, trust, association, sole proprietorship or similar organization that operates in this state and uses a digital network to connect transportation network company riders to transportation network company drivers to provide prearranged rides.

This will impact individual drivers who work as independent contractors (Sole Proprietors) for ride sharing companies such as Uber and Lyft.

Failure to register could result in fines that goes up to $50,000.

The law also stipulates that transportation network companies cannot accept cash payment for pre-arranged rides.  Payment must be made digitally.

There were also limitations placed on dynamic pricing.  No transportation network company shall increase the price of a prearranged ride to more than two and one-half times the usual price charged for such prearranged ride in an area which is the subject of any disaster emergency declaration.

The transportation network company must also have wheelchair accessible vehicles available for disabled customers.

The commissioner of transportation will be able to audit the records of any network transportation company up to 4 times per year.

No transportation network company driver shall use a digital network or provide prearranged rides for more than: (1) Fourteen consecutive hours; or (2) sixteen hours within a twenty-four-hour period.

Transportation network companies must also get a background check done on their drivers.  This must be done by the FBI and the State Police Bureau of Identification at least once every 3 years.

Transportation network companies cannot hire anyone for the following reasons:

-Has a moving violation within the last 3 years.


-  Has been convicted in the last 7 years of driving under the influence of drugs or alcohol, fraud, sexual offenses, use of a motor vehicle to commit a felony, acts of violence or acts of terror.


-  Is included in the state sexual offenders registry or the United States Department of Justice National Sex Offender Public Website.


-  Does not possess a motor vehicle operator's license;


-  Does not possess proof of registration for each motor vehicle such individual proposes to use as a transportation network company vehicle.


-  Is not at least nineteen years of age.

When a complaint is received about a driver that driver must be suspended until the investigation is completed.  If the investigation confirms that the driver was under drugs or alcohol they must be suspended permanently.

The transportation network company driver or a transportation network company on the driver's behalf shall procure and maintain an automobile liability insurance policy.

 

Sources:
Public Act No. 17-140 (See Sec. 2, 4-5, 11-12)
Summary Public Act No 17-140
House Bill No. 7126

By Wendy Stewart

 

 

 

 

 

 

 

 

 

 
 

 

  
 

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