Uber, Lyft and other ride-sharing companies would face statewide regulations for the first time under legislation approved by wide margins Thursday in the Michigan Senate that would phase out local rules that vary by community.
The five-bill package, which now goes to the House for consideration, would create a regulatory act to govern both ride-sharing and traditional taxi cab companies.
The proposed regulations include background checks for drivers, no-fault insurance requirements and inspections on vehicles more than five years old. Ride-sharing and taxi companies would each face state registration fees based on the number of vehicles they employ, topping out at $30,000 for more than 1,000 vehicles.
Any local regulations governing companies like Uber and Lyft would be invalidated in four years.
Uber and Lyft, which have exploded in popularity, connect customers to local vehicle owners via smart phone applications. The ride-sharing companies had urged the Legislature to adopt statewide regulations to help them avoid a local patchwork of rules.
The Department of Licensing and Regulatory Affairs would oversee the new rules and could review company background check procedures at any time.
In Windsor, administration is currently working on a bylaw that would cover both Uber and the local taxi cab indsutry. Recommendations that will go to council include putting a limit on the number of Uber drivers that can operate in the city.
In July, Ontario's insurance regulator approved a policy for private vehicles transporting paying passengers through the ride-sharing service. It covers all Uber drivers, passengers and vehicle owners when Uber is in use.
With files from The Detroit News