15
Municipal-Level TNC Regulation in Texas
Ten cities in Texas passed ordinances to regulate TNCs between late 2014 and May 2016.
Several cities where TNCs already operate, including Bryan, El Paso, and Lubbock, are planning
or considering ordinances in 2016. Still other Texas cities, including Amarillo and Waco, have
TNCs operating in their regions but have not yet passed bills to legalize or regulate their activity.
Fort Worth passed an ordinance in 2015 to approve a resolution to amend the Code of Rules and
Regulations of the Dallas/Fort Worth International Airport Board to incorporate TNCs under the
airport’s existing authority (
). This ordinance, which does not directly regulate TNCs, is not
included in the following review of TNC ordinances.
Among the 10 Texas cities with TNC ordinances, several have faced withdrawal of services from
Uber and/or Lyft related to disagreements over policies such as background checks, reporting
requirements, and vehicle restrictions. In March 2015, San Antonio amended the city’s TNC
ordinance, and Uber and Lyft suspended operations in the city. In October 2015, the City
Council passed a temporary, compromise agreement, and Uber and Lyft returned to San Antonio.
TNCs suspended operations in Austin, Corpus Christi, Galveston, and Midland in 2016. The
other five cities passed TNC ordinances, and TNCs continue to operate in their jurisdictions.
Table 4 presents a summary of 26 TNC policies enacted by municipal ordinance in the same
policy areas addressed in state-level TNC legislation. Some notable findings include:
Permits are required in 10 Texas cities. Most fees are an annual lump sum, but several
cities request a percentage of gross receipts: 2 percent in Corpus Christi and Houston.
Five cities require an additional license or permit for each TNC driver, ranging in cost
from $5 to $120 per vehicle.
Six cities require that TNCs disclose the use of dynamic pricing to passengers. At the
state level, this was required by only Nebraska. Four cities limit TNCs’ ability to use
dynamic pricing during “abnormal market disruptions” that result in a declaration of a
state of emergency.
In four Texas cities, TNCs Uber and/or Lyft halted operations because of disagreements
about the nature of background check requirements. Houston successfully negotiated
with TNCs to implement fingerprint-based background checks, but no other Texas
municipality has implemented such a policy without facing opposition from TNCs. In
early 2016, Corpus Christi and Galveston enacted TNC ordinances that required
fingerprint-based background checks that led Uber to suspend operations. After the
Austin City Council updated the city’s TNC ordinance to include fingerprint background
checks and other requirements, a lobby group with the support of TNCs forced a special
election to redact the ordinance and replace it with policies that had TNC support. On
May 7, 2016, Austin voters voted against the TNC-supported ordinance. Uber and Lyft
“paused” operations in Austin in response (
).