OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

http://www.cga.ct.gov/ofa

sHB-7126

AN ACT CONCERNING MOTOR VEHICLES IN LIVERY SERVICE, TAXICABS AND TRANSPORTATION NETWORK COMPANIES.


OFA Fiscal Note

State Impact:

Agency Affected

Fund-Effect

FY 18 $

FY 19 $

Department of Motor Vehicles

TF - Revenue Loss

Potential

Potential

Resources of the General Fund

GF - Potential Revenue Gain

less than $20,000

less than $20,000

Department of Transportation

TF - Revenue Gain

up to $20,000

up to $20,000

Note: TF=Transportation Fund; GF=General Fund

Municipal Impact: None

Explanation

The bill creates new regulations for transportation network companies (TNC) consisting of market entry, services standards, insurance, driver licensure and operations.

Section 2 of the bill requires TNCs to pay an annual $5,000 registration fee to the Department of Transportation which is anticipated to result in a potential revenue gain of up to $20,000 per year to the General Fund dependent on the number of TNCs registered in the state.

Sections 4 and 5 of this bill update insurance requirements for motor vehicle in livery service operator, taxicab operator or transportation network company driver. The bill gives the Department of Insurance (DOI) Commissioner the authority to adopt regulations to carry out section 4 and 5 of this bill. It results in no fiscal impact to the state or municipalities because the DOI has the expertise to adopt such regulations.

Section 8 of the bill allows vehicles operated under a taxi certificate to be registered as either a taxi or a passenger motor vehicle. Currently a taxi registration is $266 and a passenger motor vehicle registration is $80 which may result in a revenue loss to the Department of Motor Vehicles. The revenue loss is dependent on how many taxis choose to register as a passenger motor vehicle. There are currently 1,114 registered taxis in Connecticut.

Section 12 requires DOT to study the accessibility of transportation services for individuals with disabilities which will not result in a fiscal impact as DOT has the expertise to complete the study.

Lastly, the bill results in a potential revenue gain by creating a new class A misdemeanor. It is anticipated that this will result in a revenue gain of less than $20,000 from fines.

The Out Years

The annualized ongoing fiscal impact identified above would continue into the future.