TransBillSign_Kelly_1216_3.jpg

State Reps. Tim Kelly, R-Saginaw Township (left), Aric Nesbitt, R-Lawton (center) and Brandt Iden, R-Oshtemo, with Gov. Rick Snyder after the governor signed their bills establishing a framework to regulate transportation network companies such as Uber and Lyft.

(Courtesy, Michigan House of Representatives)

LANSING, MI -- Gov. Rick Snyder on Wednesday signed a package of bills that bring transportation networking companies like Uber and Lyft into the same statewide regulatory scheme as taxis.

Initially, the bills started as a way to establish a separate regulatory scheme for transportation network companies, such as Uber and Lyft. The idea was to rope them into state regulations and end the patchwork of regulation between different communities.

But taxi companies argued that they provide essentially the same service, yet are regulated much more heavily. In a compromise, lawmakers put taxis and transportation network companies like Uber and Lyft into the same set of regulations.

"It seemed right to actually level out the playing field for everybody," said Senate Regulatory Reform Committee Chair Tory Rocca, R-Sterling Heights, as the bills passed the Senate.

Under the new laws, which take immediate effect, taxi and transportation network companies would be required to register annually with the state and pay a per-vehicle fee. Drivers register through the companies, not through the state. Companies are required to conduct background checks and annual vehicle inspections through mechanics.

The bill's signing met praise from Rep. Brandt Iden, R-Oshtemo, who sponsored one of the bills in the package.

"Our main concern is the safety of riders and the drivers who operate under these new regulations," Iden said. "As ride share apps have proliferated on mobile devices, we needed to create a clear, statewide law to enable TNCs to operate in Michigan. These bills achieve that goal."