Mayor Ivy R.

Taylor Statement on Ongoing Meetings with TNCs

New smart phone applications make peoples lives easier and more convenient. Many San Antonio
residents have embraced the options offered by Transportation Network Companies (TNCs). However,
regulation of TNCs is a hotly-debated topic across the United States and the globe, reflecting the rapid
growth of new technologies allowing real-time information sharing and the difficulty in applying codes
crafted before such technologies existed. Because the TNCs business models are so new the treatment of
these companies differs greatly from state to state and even from city to city within the same state. The
Texas legislature is expected to take up TNC regulation during the 2015 session.
Last year San Antonio City Council adopted regulations addressing TNC operation. While my City Council
colleagues and I want to facilitate the economic development and transportation opportunities offered by
TNCs, we remain committed to public safety first. Passengers, TNCs, operators and other drivers will all
benefit from the assurance that a driver and vehicle are safe.
City Council was fully aware of the challenges of regulating an emerging industryand of anticipating the
response of another major industry, the insurance sectorand directed staff to conduct a review of the
ordinance after six months and again after one year of implementation. Given the concern from the
general public, TNC drivers and the TNC companies, we have expedited the initial review and are
conducting it now. As part of the review process, city staff and elected officials and their staff are meeting
regularly with TNC representatives.
At this time, it is not feasible to implement the insurance standards specified in the existing ordinance
because products that provide drivers with the required gap coverage are not yet available in Texas. I
will ask my City Council colleagues to revisit the insurance requirements and delay the applicability of
the gap coverage requirement until a conforming insurance product is available or the legislature takes
action to set a statewide standard, whichever comes first. We are exploring the following options, among
others, to ease the regulatory burden of the existing ordinance:

Stating that in-person application requirement is satisfied by the provision that applicants
obtain a ten-point fingerprint check;
Allowing random drug-testing as an acceptable alternative to pre-employment screening;
Clarifying that TNCs can determine the level of English-language proficiency required for the
safe and effective use of their platform;
Considering alternative fee and payment processes and structures; and
Clarifying access to and use of TNC data.

While discussions are ongoing and other potential changes may emerge, I anticipate that action on these
items could take place as early as the March 5th City Council meeting.