HB 5951 Summary

• Establishes regulatory framework for transportation network companies (TNCs) operating in Michigan, requiring annual applications to the Department of State attesting to compliance with specified requirements.

• Mandates TNCs maintain primary liability insurance of minimum $1,000,000 per incident during prearranged rides, plus contingent coverage of $50,000/$100,000/$30,000 during active rides and $20,000/$40,000/$10,000 while drivers are logged in but not actively transporting passengers.

• Requires drivers to be at least 21 years old with valid operator's license (or chauffeur's license for vehicles with 9+ passenger capacity), pass background checks including national sex offender database, have no more than 3 moving violations or major violations in past 3 years, and submit to annual vehicle safety inspections.

• Prohibits TNCs from soliciting street hails or picking up passengers at taxicab stands or restricted areas; requires vehicles display department-approved signage readable from 50 feet during prearranged rides; mandates companies provide customer support, fare transparency, and trip receipts to passengers.

• Repeals the Limousine Transportation Act of 1990 (PA 271) and preempts local ordinances regulating TNCs; clarifies TNCs do not own or control drivers' personal vehicles.