LANSING, Mich. – The Michigan Licensing and Regulatory Affairs said rideshare businesses like Uber and Lyft will be state regulated the same as limousine and taxicab carriers under new state law effective Tuesday.
The Transportation Network Company Act mandates criminal background checks of drivers and inspections on vehicles more than five years old by a licensed mechanic.
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“As transportation options continue to increase, we look forward to helping ensure the safety of all Michiganders who look for convenient and affordable ways to get around, LARA’s Corporations, Securities and Commercial Licensing Bureau Director Julia Dale said. “By vetting prospective companies, we’re also helping protect those who want to earn extra income by providing rides.”
Under the act, companies register with LARA by submitting an application along with business entity documents, proof of insurance and detailed signage or emblem for LARA to approve. Companies pay an application fee ranging from $25 to $100, and an annual registration fee ranging from $100 to $30,000.
Drivers of a registered company must be at least 19 years old, have a valid driver’s license, not have more than four moving violations or one major violation within the last three years, not be a registered sex offender and not have any felony convictions within the last five years.