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Committee defers HB 1301 after rideshare firms oppose reclassification as common carriers
Summary
HB 1301, which would change liability and regulatory treatment for transportation network companies, was deferred after Lyft, Uber and the Hawaii Association for Justice presented opposition and concerns about liability changes and potential impacts on fares and access.
The House Committee on Consumer Protection & Commerce deferred House Bill 1301 (HD1), which would change how transportation network companies (TNCs) are regulated, after testimony from Lyft, Uber and the Hawaii Association for Justice raised legal and policy concerns.
Lyft and Uber argued the bill would designate TNCs as common carriers, impose new duties and liabilities, and risk higher operational costs that would be passed to riders. “Classifying TNCs as common carriers would completely eliminate the uniform statewide framework that governs the rideshared industry in Hawaii,” Lyft’s witness told the committee. Uber’s representative said the change “could create more harm than good” and that the current regulatory framework has worked for years.
The Hawaii Association for Justice told the committee its principal worry is repeal of the insurance statute that governs TNCs and the proposed removal of joint-and-several liability rules; that group urged caution on liability changes. Testimony highlighted differences between technology platform models and traditional common-carrier models and argued that applying taxi-style liability rules to app platforms could have significant downstream effects on fares and driver earnings.
Committee action: The chair announced the measure would be deferred. The committee record notes existing statutes covering insurance and TNCs; the committee cited HRS provisions requiring insurance coverage while drivers are engaged in work and said further study was warranted.
