That the City Manager is requested to instruct the City Solicitor to work with the local taxi industry and other interested parties to prepare a Home Rule Petition for the City Council to submit to the State Legislature that would address Cambridge-specific issues and give the City Council the ability to ensure TNCs operate in a safe and responsible manner

The number of TNC vehicles continues to overwhelm the City of Cambridge where congestion and safety have become major issues. The approval of the proposed Home Rule Petition will provide the authority to City of Cambridge to regulate and enforce regulations over TNC drivers/vehicles to address issues that are specific to Cambridge. Summary of Proposed Home Rule Petition Current law to be amended for Cambridge’s Home Rule Petition. Amendments are related to safety and liability: 1) Chapter 159A ½ Section 2 (b) All vehicles picking up and dropping off riders in Cambridge are required to have additional vehicle markings (ie. bumper sticker with designated number and mounting of distinct rooftop light to be visible from all sides). 2) Chapter 159A ½ Section 2 (f) As of April 1, 2019, all TNC vehicles require a TNC inspection to be performed at the same time as the MA annual emissions testing. Only vehicles that have completed this TNC inspection will be allowed to pick up in the City of Cambridge. A separate inspection sticker to be provided by the Inspection Station through the Registry of Motor Vehicles. This sticker is to be placed in the front windshield above the MA annual emissions inspection sticker. 3) Chapter 159A ½ Section 4 (b) (ii) All vehicles picking up riders in Cambridge are required to be registered in the Commonwealth of MA (out of state vehicles will not be allowed to pick up). 4) Chapter 159A ½ Section 4 (b) (iv) and Chapter 175 Section 228 All vehicles picking up riders in Cambridge are required to provide to TNC proof of rideshare insurance endorsement to their personal auto policy on an annual basis (there is a gap in insurance coverage while the app is turned on and waiting for a ride request. Rideshare endorsement covers this gap and can be secured with personal auto policy).

Detail Amendments related to Home Rule Petition 1. Chapter 159A ½ Section 2 (b) The intent for this amendment is to allow the City of Cambridge to require all vehicles picking up and dropping off riders in the City of Cambridge additional vehicle markings to be provided by the City of Cambridge or DPU in order to protect unsuspecting riders from fake TNC vehicles/drivers and bicyclists from TNC vehicle doors immediately opening after stopped in bike lanes. Additional vehicle markings will include a bumper sign with a designated number (to be placed on back passenger side bumper) In addition, a top light is required for all vehicles picking up and dropping off within the city limits. Proposed Chapter 159A ½ Section 2 (b) for Home Rule Petition- (b) In consultation with the registry of motor vehicles, the division shall provide for the establishment of removable decals to be issued by transportation network companies, in a form and manner prescribed by the division, to transportation network drivers to designate a vehicle as a transportation network vehicle for law enforcement and public safety purposes. The decal shall be applied to both the front and back panels of a vehicle at all times while the vehicle is providing transportation network services. A transportation network driver who provides transportation network services using the digital network of more than 1 transportation network company shall display the respective decals for each transportation network company while the vehicle is providing transportation network services. A transportation network driver who ceases to be certified to provide transportation network services for any reason shall return the decal within 14 days of that cessation to the respective transportation network company in the manner and form prescribed by the division. All vehicles picking up and dropping off riders in the City of Cambridge require additional vehicle markings (back passenger side bumper with designated number and rooftop light to be visible from all sides) 2. Chapter 159A ½ Section 2 (f) The intent for this amendment is to allow the City of Cambridge to require all TNC vehicles registered in MA to obtain a TNC vehicle inspection at the driver’s next annual emissions testing or within one month of obtaining transportation network driver certificate, whichever comes first. Proposed Chapter 159A ½ Section 2 (f) for Home Rule Petition- (f) In consultation with state police, local law enforcement and the registry of motor vehicles, the division shall ensure the safety and annual inspection of transportation network vehicles, including a transportation network vehicle inspection pursuant to section 7A of chapter 90. A transportation network driver shall obtain a transportation network vehicle inspection at the driver's next annual emissions testing or within 12 months of obtaining a transportation network driver certificate, whichever comes first. For vehicles picking up riders in the City of Cambridge, Transportation network driver shall obtain a transportation network vehicle inspection at the driver's next annual emissions testing or within one month of obtaining a transportation network driver certificate, whichever comes first. 3. Chapter 159A ½ Section 4 (b) (ii) The intent for this amendment to Section 4 (b) (ii) is to allow the City of Cambridge to require all vehicles picking up passengers in the City of Cambridge to be registered in the Commonwealth of Massachusetts only.

Proposed Chapter 159A ½ Section 4 (b) (ii) for Home Rule Petition- (ii) has access to a vehicle that has been registered in the commonwealth and inspected pursuant to section 7A of chapter 90 and regulations promulgated under said section 7A of said section 90 at a facility licensed by the registry of motor vehicles; or has access to a vehicle that has been registered in another state, and the vehicle complies with the inspection requirement of the state where the vehicle is registered, except for all vehicles picking up riders in the City of Cambridge where vehicles registered in another state are not allowed to pick up riders. 4. Chapter 159A ½ Section 4 (b) (iv) and Chapter 175 Section 228 The intent for this amendment to Section 4 (b) (iv) is to allow the City of Cambridge to require all TNC drivers that want to pick up riders in the City of Cambridge to provide proof of a rideshare endorsement to their personal auto policy. Typically, TNCs, like Uber and Lyft, offer insurance protection once a driver logs into the app, but coverage is limited until a ride request has been accepted. A driver’s personal policy will usually have coverage exclusions during this period 1 as well. Rideshare insurance can fill these gaps in coverage. Proposed Chapter 159A ½ Section 4 (b) (iv) for Home Rule Petition- (iv) provides notice to all insurers of the vehicle that the applicant intends to use the vehicle to provide transportation network services, except in the City of Cambridge where drivers are required to provide proof of a ride share endorsement to their personal auto policy for the vehicle to be used to provide transportation network services; and such endorsement will cover the TNC driver and vehicle during Period 1 (TNC app is turned on and the driver is waiting for a ride request). Proposed Amendment Chapter 175 Section 228 for Home Rule Petition- (c) A transportation network driver who is logged onto the transportation network company's digital network and is available to receive transportation requests, but is not engaged in a pre-arranged ride shall have automobile liability insurance that provides per occurrence, per vehicle coverage amounting to at least $50,000 of coverage per individual for bodily injury, $100,000 of total coverage for bodily injury, $30,000 of coverage for property damage, uninsured motorist coverage, to the extent required by said section 113L, and personal injury protection, to the extent required by section 34A of chapter 90. The insurance may be held by the transportation network driver, the transportation network company or a combination thereof. In the City of Cambridge, drivers are required to provide proof of a ride share endorsement to their personal auto policy for the vehicle to be used to provide transportation network services;

CURRENT LEGISLATION FOR REFERANCE Chapter 159A ½ Section 2: Jurisdiction of division; decals; insurance policy requirements; fare policies; safety inspections; accommodations for special needs riders; provision of driver identification to riders; electronic toll transponders; suspension or revocation of background check clearance certificate; judicial review [ Text of section added by 2016, 187, Sec. 4 effective November 3, 2016.] Section 2. (a) The division shall have jurisdiction over transportation network companies to ensure the safety and convenience of the public, as expressly set forth in this chapter. (b) In consultation with the registry of motor vehicles, the division shall provide for the establishment of removable decals to be issued by transportation network companies, in a form and manner prescribed by the division, to transportation network drivers to designate a vehicle as a transportation network vehicle for law enforcement and public safety purposes. The decal shall be applied to both the front and back panels of a vehicle at all times while the vehicle is providing transportation network services. A transportation network driver who provides transportation network services using the digital network of more than 1 transportation network company shall display the respective decals for each transportation network company while the vehicle is providing transportation network services. A transportation network driver who ceases to be certified to provide transportation network services for any reason shall return the decal within 14 days of that cessation to the respective transportation network company in the manner and form prescribed by the division. (c) In consultation with the commissioner of insurance, the division shall implement the insurance policy requirements established in section 228 of chapter 175. (d) A transportation network company shall provide clear and conspicuous transportation fare estimates to riders at all times, including during surge pricing, high volume and high demand times. Fare estimates shall include a clear rate estimate or the amount of the price increase resulting from surge pricing or increased demand. (e) A transportation network company and driver shall not raise base fares during a federal or a governor-declared state of emergency. (f) In consultation with state police, local law enforcement and the registry of motor vehicles, the division shall ensure the safety and annual inspection of transportation network vehicles, including a transportation network vehicle inspection pursuant to section 7A of chapter 90. A transportation network driver shall obtain a transportation network vehicle inspection at the driver's next annual emissions testing or within 12 months of obtaining a transportation network driver certificate, whichever comes first. (g) The division shall ensure the accommodation of riders with special needs. A transportation network company shall not impose additional charges or increase fares when providing services to persons with disabilities and all transportation network drivers shall comply with applicable laws, rules and regulations relating to the accommodation of service animals. (h) A transportation network company shall not be subject to the department's rate or common carrier requirements pursuant to chapters 159, 159A or 159B. (i) A transportation network company shall provide a driver's name, picture and the license plate number of the vehicle in use to a rider on any digital network used to facilitate a pre-arranged ride. (j) In consultation with the division, the Massachusetts Department of Transportation's highway division shall provide for the issuance of electronic toll transponders set at the commercial vehicle rate to be issued by transportation network companies to transportation network drivers. The electronic toll transponders shall be used each time a transportation network driver provides transportation network services on a toll road, bridge or tunnel; provided, however, that the issuance of an electronic toll transponder pursuant to this subsection shall not prohibit a transportation network driver from establishing or maintaining an electronic toll transponder account for personal use. (k) In consultation with the division, a transportation network company shall provide its ride data to the Massachusetts Department of Transportation and the department shall cross-reference that data with its toll data to

ensure that tolls incurred by a driver providing transportation network services through a digital network are paid at the commercial rate through the pay by plate system and through the electronic transponder system. (l) A transportation network company shall notify the division upon receipt of information that a driver utilizing its network has violated a law or rule or regulation related to the provision of transportation network services or that the driver is not suitable to provide transportation network services. (m) If, after the division issued a background check clearance certificate, the division is notified by a transportation network company, law enforcement or government entity that a driver is unsuitable and the division verifies the unsuitability, the division shall immediately revoke or suspend the background check clearance certificate and shall notify the driver and each transportation network company who issued the driver a driver certificate that the background check clearance certificate has been revoked or suspended. The division shall issue rules and regulations to establish a process for a driver to appeal a revocation or suspension. The rules or regulations shall include an opportunity for a hearing. A driver aggrieved by a final order or decision of the division pursuant to this subsection or subsection (d) of section 3 may institute proceedings for judicial review in the superior court within 30 days after receipt of such order or decision. Any proceedings in the superior court shall, insofar as applicable, be governed by section 14 of chapter 30A, and may be instituted in the superior court for the county: (i) where the parties or any of them reside or have their principal place of business within the commonwealth; (ii) where the division has its principal place of business; or (iii) of Suffolk. The commencement of such proceedings shall not, unless specifically ordered by the court, operate as a stay of the division's order or decision. Chapter 159A ½ Section 4: Transportation network driver certificates; posting in vehicle location visible to riders; driver qualifications; background checks; suspension of certificate; quarterly audit of transportation network company's driver certification and background check processes [ Text of section added by 2016, 187, Sec. 4 effective November 3, 2016.] Section 4. (a) A driver who seeks to utilize the digital network of a transportation network company to provide pre- arranged rides shall apply to a transportation network company for a transportation network driver certificate. A person shall not provide transportation network services in the commonwealth without a valid background check clearance certificate and a transportation network driver certificate. The transportation network driver certificate shall be in a form prescribed by the division which shall include the name, picture of the driver and the license plate number of the vehicle in use and shall post a certificate for each transportation network company that has certified the driver in a location in the vehicle that is visible to the rider while transportation network services are being provided. A transportation network company shall not issue a transportation network driver certificate to a driver applicant unless the transportation network company has verified that the driver has received a background check clearance certificate from the division. (b) At a minimum, and subject to such other requirements as the division may establish by regulation, a transportation network company shall only issue a transportation network driver certificate to a driver who: (i) is at least 21 years of age; (ii) has access to a vehicle that has been registered in the commonwealth and inspected pursuant to section 7A of chapter 90 and regulations promulgated under said section 7A of said section 90 at a facility licensed by the registry of motor vehicles; or has access to a vehicle that has been registered in another state, and the vehicle complies with the inspection requirement of the state where the vehicle is registered; (iii) complies with insurance requirements established in this chapter or in section 228 of chapter 175; (iv) provides notice to all insurers of the vehicle that the applicant intends to use the vehicle to provide transportation network services; (v) is determined to be suitable to perform transportation network services pursuant to subsections (c) and (d); (vi) does not appear on the National Sex Offender Registry; (vii) has not had a conviction in the past 7 years for: (1) a sex offense or violent crime as defined in section 133E of chapter 127; (2) a crime under section 24 of chapter 90 or been assigned to an alcohol or controlled substance

education, treatment or rehabilitation program by a court; (3) leaving the scene of property damage or personal injury caused by a motor vehicle; (4) felony robbery; or (5) felony fraud; and (viii) has a driving record that does not include more than 4 traffic violations or any major traffic violation, as defined by the division of insurance, in the preceding 3 year period. (c) Prior to providing transportation network services, a driver applicant shall be subject to a 2-part background check process to determine if the driver applicant is suitable. The transportation network company shall: (i) conduct a background check and disqualify applicants on the basis of a suitability standard to be determined in regulations promulgated by the division; and (ii) submit identifying information regarding an applicant to the division, which shall refer that information to the department of criminal justice information services, which shall obtain all available criminal offender record information, as defined in section 167 of chapter 6, and pursuant to section 172 of said chapter 6 and sex offender registry information. (d) Not less than 2 times per year, the transportation network company shall conduct a background check pursuant to clause (i) of subsection (c) and shall immediately remove a driver from its digital network if the driver is found not suitable pursuant to the suitability standards to be determined in regulations promulgated by the division. (e) The transportation network company shall immediately suspend a transportation network driver's certificate, and notify the division of the suspension, upon learning of and verifying a driver's arrest for a crime or a driver's citation for a driving infraction that would render the driver unsuitable to provide transportation network services. A transportation network company shall report such suspension, in a form and manner prescribed by the division, to the division, which shall ensure all transportation network companies that certified that driver take appropriate action. Any such suspension may be limited to the period of time necessary to determine whether continued provision of transportation network services by the driver is consistent with the public interest. (f) In accordance with this section, the division shall quarterly audit the driver certification and criminal background check processes of a transportation network company. Non-compliance with this section shall constitute cause for the division to suspend or revoke a transportation network company permit pursuant to section 6. Chapter 159A ½ Section 10: Taxation or additional requirements on transportation network companies by entities other than Massachusetts Port Authority prohibited Section 10. Except where expressly set forth in this chapter, no municipality or other local or state entity, except the Massachusetts Port Authority, may: (i) impose a tax on or require any additional license for a transportation network company, a transportation network driver or a vehicle used by a transportation network driver where the tax or licenses relate to facilitating or providing pre-arranged rides; (ii) require any additional license for a transportation network company or transportation network driver; or (iii) subject a transportation network company to the municipality's or other local or state entity's rates or other requirements, including but not limited to entry or operational requirements; provided, however, that a municipality or other local or state entity may regulate traffic flow and traffic patterns to ensure public safety and convenience. Chapter 175 Section 228: Transportation network drivers; insurance requirements Section 228. (a) As used in this section, the words ''digital network'', ''division'', ''pre-arranged ride'' and ''transportation network company'' shall have the same definitions as set forth in section 1 of chapter 159A1/2 unless the context clearly requires otherwise. (b) The insurance requirements in this section shall constitute adequate insurance for transportation network drivers and shall satisfy the financial responsibility requirement for a motor vehicle established by section 34A of chapter 90 and section 113L; provided, however, that the insurance requirements in this section shall only satisfy the financial responsibility requirements for a motor vehicle established by said section 34A of said chapter 90 and said section 113L with respect to the provision of transportation network services in a vehicle operated by a transportation network driver. A transportation network driver shall also comply with said section 34A of said chapter 90 and said section 113L and maintain insurance coverage for the vehicle during those periods of time when the vehicle is being operated, but is not providing transportation network services.

(c) A transportation network driver who is logged onto the transportation network company's digital network and is available to receive transportation requests, but is not engaged in a pre-arranged ride shall have automobile liability insurance that provides per occurrence, per vehicle coverage amounting to at least $50,000 of coverage per individual for bodily injury, $100,000 of total coverage for bodily injury, $30,000 of coverage for property damage, uninsured motorist coverage, to the extent required by said section 113L, and personal injury protection, to the extent required by section 34A of chapter 90. The insurance may be held by the transportation network driver, the transportation network company or a combination thereof. (d) When a transportation network driver is engaged in a pre-arranged ride, the driver shall have automobile liability insurance that provides at least $1,000,000 in per occurrence, per vehicle coverage for death, bodily injury and property damage, uninsured motorist coverage, to the extent required by section 113L, and personal injury protection, to the extent required by section 34A of chapter 90. The insurance may be held by the transportation network driver, the transportation network company, or a combination thereof. (e) In every instance where insurance maintained by a transportation network driver to fulfill the insurance requirements in subsections (c) and (d) has lapsed, failed to provide the required coverage, denied a claim for the required coverage or otherwise ceased to exist, insurance maintained by a transportation network company shall provide the coverage required by said subsections (c) and (d), beginning with the first dollar of a claim, and shall have the duty to investigate and defend that claim. (f) Coverage under an automobile insurance policy maintained by the transportation network company shall not be dependent on a personal automobile insurer first denying a claim nor shall a personal automobile insurer be required to first deny a claim. (g) Insurance required by this section shall be placed with an insurer authorized to do business in the commonwealth or, if such coverage is not available, from any admitted carrier, then with a surplus lines insurer eligible pursuant to section 168. (h) Insurers that write automobile insurance may exclude any and all coverage afforded under the policy issued to an owner or operator of a vehicle for any loss or injury that occurs while a driver is providing transportation network services or while a driver provides a pre-arranged ride. This right to exclude all coverage may apply to any coverage included in an automobile insurance policy including, but not limited to: (i) liability coverage for bodily injury and property damage; (ii) personal injury protection coverage as defined in section 34A of chapter 90; (iii) uninsured and underinsured motorist coverage; (iv) medical payments coverage; (v) comprehensive physical damage coverage; and (vi) collision physical damage coverage. Such exclusions shall apply notwithstanding any requirement of said section 34A of said chapter 90 and section 113L. Nothing in this section implies or requires that a personal automobile insurance policy provide coverage while the transportation network driver is logged on to the transportation network company's digital network, while the transportation network driver is engaged in a pre-arranged ride or while the transportation network driver otherwise uses a vehicle to transport riders for compensation. Nothing shall preclude an insurer from providing coverage for the transportation network driver's vehicle if the insurer so chooses to do so by contract or endorsement. Automobile insurers that exclude the coverage described in this section shall not have a duty to defend or indemnify any claim expressly excluded by a policy. Nothing in this section shall invalidate or limit an exclusion contained in a policy, including any policy in use or approved for use in the commonwealth before the enactment of this section that excludes coverage for vehicles used to carry persons or property for a charge or available for hire by the public. An automobile insurer that defends or indemnifies a claim against a transportation network driver that is excluded under the terms of its policy shall have a right of contribution against other insurers that provide automobile insurance to the same transportation network driver in satisfaction of the coverage requirements of this section at the time of loss. (i) The commissioner of insurance, in consultation with the division of transportation network companies established in section 23 of chapter 25, shall issue an annual report concerning the coverage minimums required for transportation network vehicles during the period of time where the transportation network driver is logged onto the digital network but is not engaged in a pre-arranged ride. The report shall include, at a minimum: (i) an examination, based on actuarial data, of whether the existing coverage requirements provide adequate protection for riders, transportation network drivers and the general public; (ii) whether it is presently feasible for a transportation network company to obtain an insurance policy providing coverage of $1,000,000 per occurrence, per vehicle during the relevant time period; (iii) if such a policy is available, whether the coverage minimums should be raised so that all transportation network vehicles carry $1,000,000 of coverage per occurrence, per vehicle, at all times while

operating as a transportation network company; (iv) whether a strategy can be developed to raise the coverage requirements during this period through the use of admitted motor vehicle insurance carriers, the surplus lines market and technological innovations in the insurance industry such as the use of telematics to improve risk assessment; and (v) any recommended action by the division of insurance, the division of transportation network companies established in said section 23 of said chapter 25, the legislature or other government entity that would encourage the insurance market to provide policies with higher insurance limits while transportation network companies are not engaged in a pre-arranged ride. The commissioner of insurance shall file an annual report detailing any recommendations together with actuarial analysis with the clerks of the senate and house of representatives, the chairs of the house and senate committees on ways and means and the chairs of the joint committee on financial services not later than February 15.