FAYETTEVILLE -- A new Arkansas law set to take effect in July will allow ride-sharing services that meet the state's regulations to operate in cities like Fayetteville, which at one time banned Uber and Lyft.
But, there's still the matter of resolving those tickets written to drivers back when the ride-sharing services were prohibited.
Act 1050
Act 1050 is intended to license and regulate companies that use a website, digital network or software application to connect passengers to services provided by drivers. The law does not apply to taxi companies.
Source: Staff report
Officers have issued 93 citations to Uber drivers for operating without a taxi permit, operating without a taxi inspection decal or operating without a certificate of public convenience and necessity since the company launched in August in the city, according to Fayetteville Police Department records. Most of the citations came in clusters of two or three to the same driver.
City code requires all taxicab companies to obtain a certificate of public convenience and necessity, which must be approved by the City Council. Among other requirements, cab drivers must submit to a criminal background check. Companies must provide proof of liability insurance covering commercial vehicles. All vehicles are subject to a city inspection and must display a permit decal.
Jay Honeycutt racked up 16 assorted tickets for "driving while Uber" before the state law was passed. He's set for trial on eight of those tickets Aug. 30 in Fayetteville District Court, but he hopes to have the cases tried individually.
"Typically what happens is a taxi driver sees you pick up a person on Dickson Street and calls the cops and they either intercept you or chase you down and stop you for some pretextural reason," Honeycutt said. "I intend to fight them all the way through. I can't afford to have 16 tickets on my record."
Honeycutt said he was stopped once in January, twice in February, twice in March and once in April and usually got tickets for whatever the traffic stop was as well as for violating the city's taxicab ordinance. Honeycutt said he doesn't expect to win at the district court level but hopes to get a sympathetic jury when he appeals to Washington County Circuit Court.
Honeycutt said it looks to him like police were essentially protecting the interests of the taxi companies.
City Attorney Kit Williams rebutted his claim.
"The police are not trying to do anything but enforce the ordinance passed by the City Council," Williams said Thursday. "It is to protect our citizens to try to make sure the vehicles will be safe, the drivers will be responsible and that there's plenty of proper insurance to protect the passenger if, in fact, there is some sort of accident. It's not to protect the taxi companies. It's to protect our citizens."
According to police records, just two drivers have been cited since Gov. Asa Hutchinson signed Act 1050 into law April 6. Honeycutt was last cited April 5.
"There was no directive from the chief that said we would stop issuing citations on this," Sgt. Craig Stout said Thursday. "It's individual officer discretion, but I think, at this point, common sense came into play. It is going to be the law of the land. There is no sense in issuing somebody a citation now on it."
Williams agreed.
He said Act 1050 "basically takes any potential power we might have had and transfers it to the state."
Companies cannot apply for a certificate of operation from the Public Service Commission until rules are developed by the commission and Act 1050 takes effect. John Bethel, director, said the commission is about to begin its rule-making process in anticipation of the law going into effect July 22.
Act 1050 is intended to license and regulate companies that use a website, digital network or software application to connect passengers to services provided by drivers.
The law does not apply to taxi companies.
The law does not require drivers to register their cars as commercial vehicles, and they don't need a special license. They do have to be 19 years of age and pass a criminal background check.
Drivers are generally considered to be independent contractors, not employees.
Companies can't use drivers who've had more than three moving violations in the last three years or one major violation, like attempting to evade police, reckless driving or driving on a suspended or revoked license.
Drivers who've had a conviction for DUI, fraud, a sex offense, theft, property damage or an act of violence or terror are barred.
To identify the drivers and their cars, the companies have to display a picture of drivers with the license plate number of the vehicle they'll be using on their website, network or software application.
Transportation network companies, as they are called in the law, are required to have an annual $15,000 permit from the Arkansas Public Service Commission to operate anywhere in the state.
The companies are required to have a registered agent in the state for legal reasons.
Fares, and how they are calculated, must be disclosed on the company's website, digital network or software application. They also have to offer estimates and timely electronic receipts detailing the trip and the costs.
Companies or their drivers are required to provide at least $1 million in liability insurance for death, personal injury and property damage. Insurance companies are allowed to exclude coverage from drivers' private policies while they're working.
Companies are required to have a zero-tolerance policy prohibiting the use of drugs or alcohol by drivers while they're working.
Vehicles must pass a safety inspection by a certified mechanic.
Drivers are not allowed to pick up passengers who hail them on the street. Drivers can't accept cash payments from passengers, payment must be made electronically.
The law doesn't allow discrimination based on physical disability, and drivers can't charge disabled passengers more for providing them services.
Trip and driver records have to be maintained for at least a year and must be available for inspection in case there's a complaint. Records obtained by the Public Service Commission related to complaints are not subject to disclosure to third parties and are exempt from the state's Freedom of Information Act.
Counties and cities can't tax or license or regulate the companies, drivers or their vehicles for providing transportation services. The Public Service Commission can fine them up to $1,000 for a violation of the law and up to $5,000 for a knowing violation of the law, depending on the severity of the violation.
Metro on 06/07/2015