BATON ROUGE, La. (AP) - Louisiana would become the 43rd state in the nation to regulate ride-hailing services such as Uber and Lyft at the state level, expanding access and standardizing rules, under a proposal that lawmakers moved forward Monday.
Putting aside a tense business rivalry, representatives from Uber and Lyft were united in arguing their apps could start serving residents in some of Louisiana’s smaller cities if the companies no longer had to negotiate agreements with each local government.
“This is the bill that can help us get to your community,” Uber representative Nick Juliano told lawmakers. “It can help us serve your constituents so that they can get a safe and affordable ride … and it would create thousands of jobs throughout the state.”
Without objection, the House transportation committee advanced the measure to the full House for consideration.
The bill would have the state and local municipalities share 1 percent of each fare.
Uber and Lyft both currently operate in a handful of markets in Louisiana, including Baton Rouge, Lafayette and the greater New Orleans area.
Multiple drivers testified for the bill, including Victor Silvio, a driver in Baton Rouge who said he began working for Uber and Lyft after his son Christopher, 25, was killed by a drunken driver in 2013.
“We need to pass laws to make sure we keep the drunks off the road,” Silvio said. “If we can keep impaired people off the roads across the state, I will feel better.”
Rodney Braxton, a lobbyist representing the city of New Orleans, opposed the bill, predicting the city’s annual fee intake from the rides would plummet from $2.4 million to $400,000.
Rep. Kenny Havard, a St. Francisville Republican who sponsored the bill, questioned those figures, but acknowledged New Orleans - which currently charges riders a $0.50 fee under a 2015 agreement - would receive less money.
Baton Rouge would receive more money than it is currently getting, Havard said.
Officials from the Public Service Commission objected to having the Louisiana Department of Agriculture and Forestry manage the regulations, which include issuing permits and managing background checks. The PSC oversees “common carriers,” but representatives from the ride-hailing services said state law has established their companies are not common carriers.
“I’m more than happy to work with you all and try to breed some common ground (on oversight issues), but I just don’t know if we can get there on the fees, because that’s what it all boils down to,” Havard said.
Under Havard’s bill, 95 percent of the 1 percent fee would go to local municipalities, while the rest would go to the agriculture department to address overhead expenses. Airports would also be able to negotiate extra fees.
Other states’ agreements with ride-hailing services vary widely.
Most states levy a fixed annual fee, while some, such as Tennessee or Florida, do not charge anything. South Carolina imposes a similar 1 percent fee, while lawmakers in Alabama are also currently considering a 1 percent fee.
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House Bill 527: www.legis.la.gov
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