Scanlon Bill Regulating Ride-Share Companies Takes Effect Monday

From CT State Reps: On Monday January 1st, one of several new laws taking effect in Connecticut is a law sponsored by Rep. Sean Scanlon (D-Guilford) which for the first time creates consumer protection standards for popular ride-share companies like Uber and Lyft.

"Starting Monday, Connecticut residents can feel a little safer whenever they use Uber or Lyft knowing that their driver has had a proper background check, the vehicle is inspected and the driver has enough insurance in the event of an accident," said Scanlon.

The law, known as Public Act 17-140, was passed by both the House and Senate in May. As of January 1, 2018 companies like Uber and Lyft must register with the Department of Transportation and pay annual licensing fees. Companies must conduct comprehensive background checks on potential drivers and drivers must carry a certain level of insurance coverage in the event of an accident. Surge pricing - an escalating cost per ride based on demand - is banned under the law in the event of state or national emergencies. Prior to the passage of PA 17-140, both companies operated in Connecticut with no regulatory standards.

Scanlon, who went "undercover" in 2015 and applied to be an Uber driver to see firsthand what their background check system was like, worked with the Department of Transportation and representatives from both companies to pass a comprehensive bill that was both pro-consumer and pro-business.

"The law we passed this year took a lot of hard work but, at the end of the day, we found a way to keep consumers safe without stifling two companies who are creating jobs here and to me that is always the best case scenario when it comes to government regulation," said Scanlon.

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