After the election a year ago which lead to Uber and Lyft leaving Austin, hundreds of negative stories deluged the city from around the world. Since last year, our staff has heard the complaints of multiple companies and conference attendees regarding Austin’s lack of ride sharing services. Now, that time is about to end.

On May 29, Governor Greg Abbott signed a bill that sets a new era of statewide ridesharing standards. HB 100, passed by both the Texas House and Senate. The bill introduced by Texas Representative Paddie (R-Marshall), allows the State of Texas to regulate transportation network companies like Uber, Ride Austin, and Lyft, by overriding local government rules.

The bill passed by a two-thirds vote in both Texas Senate and House will become effective immediately. How will this bill impact Austin? Here are four ways the bill will transform ridesharing services in the city:

Local Control: Void and No Effect
Under section three of the bill; local municipalities have no control over the regulation of transportation network companies or their drivers. The bill prohibits cities from imposing taxes, permits, fees, and additional requirements of transportation network companies. The city will still regulate, permit, and enforce other types of vehicle-for-hire companies operating in Austin including taxicabs and limousines. The Chamber has called for consistent regulation and will reach out to taxicab companies to explore legislation related to similar state regulation in future legislative sessions.

Background Check Leniency
Under the new bill, annual background checks are required while fingerprint checks are optional. The state law will enforce a seven-year ban on transportation network drivers convicted of a serious offense. The Austin City Code will continue regulation of taxicabs and limousines operating in the city by permanently disqualifying a driver convicted of violent crimes, criminal homicide, indecency with a child, or sexual assault.

Local Revenue Illusive
Under the new policy, the city will no longer collect revenue. Since May 2016 to May 2017, taxicab, limousines, and other vehicle drivers regulated in the City of Austin have generated $915,732 in revenue and fingerprinted 9,728 drivers. The bill requires Texas ridesharing companies to obtain an occupational permit and pay a fee that will vary depending on fee structure.

Data Sharing Undecided
Ridesharing companies are not required to share data with local governments. Although a municipality and transportation network could “voluntarily enter into an agreement” to share data under section 2402.154 of HB 100, the amount of data shared has not been determined.

To have stories like this one delivered to your inbox, sign up for our advocacy newsletter here.