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CITY COUNCIL STAFF REPORT
DATE: August 3, 2016 LEGISLATION
SUBJECT: PROPOSED ORDINANCE AMENDING SECTION 16.02.015 (B) OF,
AND ADDING CHAPTER 16.37 TO, THE PALM SPRINGS MUNICIPAL
CODE RELATING TO PERMITTING TRANSPORTATION NETWORK
COMPANIES TO OPERATE AT THE PALM SPRINGS INTERNATIONAL
AIRPORT.
FROM: David H. Ready, City Manager
BY: Department of Aviation
SUMMARY
The proposed ordinance will establish a regulatory program that would permit
Transportation Network Companies, such as Uber and Lyft, to fully operate at the Palm
Springs International Airport. Currently, such operators are permitted to drop off
passengers at the Airport, only.
RECOMMENDATION:
1. Waive reading of the text and introduce for first reading Ordinance No.
"AN ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA,
AMENDING SECTION 16.02.015 (b) OF, AND ADDING CHAPTER 16.37 TO,
THE PALM SPRINGS MUNICIPAL CODE RELATING TO PERMITTING
TRANSPORTATION NETWORK COMPANIES TO OPERATE AT THE PALM
SPRINGS INTERNATIONAL AIRPORT".
STAFF ANALYSIS:
A new mode of commercial ground transportation alternative is rapidly evolving
nationwide. This service, designated as Transportation Network Companies (TNCs) by
the California Public Utilities Commission, has already been approved by many of
California's airports due to growing passenger demand. TNCs provide pre-arranged
transportation services for compensation using an online-enabled application or
platform to connect drivers using their personal vehicles with passengers.
To address the evolution of this new commercial transportation mode, the California
Public Utilities Commission issued Decision 13-09-045 on September 19, 2013, creating
ITEM NO.;�-�
City Council Staff Report
August 3, 2016 - Page 2
TNC Ordinance
an order instituting rulemaking on regulations relating to passenger carriers, ridesharing,
and new online-enabled transportation services.
TNCs are regulated by the Public Utilities Commission ("PUC"), which recognizes
Transportation Network Companies (TNCs) as charter party carriers. Each TNC is
required to have a charter party carrier permit issued by the PUC to operate in
California. Further, TNCs are not permitted to own their own fleet of vehicles and the
PUC also established various measures to ensure public safety including criminal
background checks, California DMV checks on drivers, and a 19-point vehicle
inspection on all vehicles operated by TNC drivers providing TNC services. Commercial
liability insurance providing at least $1 million per incident coverage for incidents
involving TNC drivers and vehicles engaged in TNC services is also required. The
issuance of Airport operational permits will be conditional to compliance with these PUC
requirements.
The proposed ordinance is an enabling ordinance that will provide the City a regulatory
basis for TNCs to operate at the Airport. The ordinance recognizes that the operational
model for TNCs is unique and requires an alternative regulatory program for addressing
the opportunities presented by online ride-sharing services provided by companies like
Uber and Lyft consistent with the PUC regulations.
The proposed ordinance also establishes certain operational rules and regulations,
including requiring drivers to park in a specific staging area to receive calls for service
and prohibits drivers from driving or looping around the airport roadways while waiting
for their assigned passengers. When a passenger is ready for pickup, TNC drivers will
leave the staging area and will proceed to a designated pickup area.
Airports allowing TNC pickups like Los Angeles, San Diego, Sacramento, San Jose,
Spokane, Portland and Phoenix manage these commercial operations by restricting the
pickup to designated areas on the roadway systems adjacent to the terminal. The
attached Exhibits 1A and 1B provide each airport's published diagram depicting their
designated areas.
On April 20, 2016, the Airport Commission voted unanimously to recommend approval
of TNCs to pick up at the Airport. Specifically, the Airport Commission's Operations
Committee reviewed the three options and their preference was Option C, allocating
eight (8) spaces along the inner curb outside of the baggage claim. Below is a
description of the alternatives, and Exhibit 2 illustrates the locations.
• Option A: 8 spaces in the commercial vehicle lane about 500 feet south of the
baggage claim middle exit door. This area is shared by other commercial
vehicles including limos and hotel shuttles.
02
City Council Staff Report
August 3, 2016- Page 3
TNC Ordinance
• Option B: 6 spaces in the outer commercial lane adjacent to the taxicab staging
area, approximately 80 feet from the baggage claim middle exit door. This area
consists only of commercial vehicles.
• Option C: 8 spaces on the terminal's front curb, north of the baggage claim exit,
approximately 100 feet from the middle baggage claim exit door. This area will be
on the main public roadway, and behind the bus stop.
SunLine Services Group (SSG), a Joint Powers Authority established in the Coachella
Valley which regulates taxicab operations at PSP Airport, has indicated its opposition to
the proposed ordinance in a letter in which they express concern on the effects to the
local taxi industry. A copy of that letter is attached as Exhibit 3. Alternatively, the Palm
Springs Hospitality Association (PSHA) provided a letter expressing their support of the
proposed amendment, stating that not allowing TNC Airport pickup could adversely
affect tourism and convention business. A copy of that letter is attached as Exhibit 4.
ENVIRONMENTAL ANALYSIS:
Pursuant to the California Environmental Quality Act ("CEQX) Guidelines, Section
15060(c)(2), the proposed amendment is exempt from CEQA because the activity will
not result in a direct or reasonably foreseeable indirect adverse physical change in the
environment. Therefore, the proposed TNC Ordinance is exempt from CEQA review.
FISCAL IMPACT:
Commercial ground transportation providers at PSP Airport, including taxicabs and car
rentals, are required to pay fees to operate. Transportation Network Companies are
also commercial operators and subject to paying equivalent fees. Current pre-
arranged commercial operators at PSP (e.g. limousine providers) are assessed a
minimum fee per transaction of $3.00 per pickup for vehicles carrying up to 9
passengers, and this fee escalates as follows: $5 for 10-15 passengers, $18 for 16-30,
and $31 for 31 or more passengers. TNCs will be subject to this same fee schedule
with a minimum of $3.00 fee for each pickup and escalating consistent as stated. This
minimum fee schedule is in alignment with the larger SOCAL airport network as
depicted here:
Airport Airport Trip fee
Burbank $3.00 for 30 minutes
Orange County $3.00 per pickup
Los Angeles $4.00 per pickup
Sacramento $1.25 per pickup and $1.25 per drop-off
San Diego $2.59 per pickup plus vehicle charge
San Francisco $3.85 per pickup
03
City Council Staff Report
August 3, 2016 - Page 4
TNC Ordinance
At this time, it is unknown the amount of revenue that will be generated from the new
TNC trip fees, however, staff estimates the amount could reach $30,000. Updated
revenue reports will be provided quarterly.
�,�,.�'-'may
Thomas P. Nolan, A.A.E. David H. Ready, Esq,-P .
Executive Director, Airport City Manager
Attachments:
1. Ordinance No.
2. Exhibit 1A - Other Airport Examples of TNC Designated Areas
3. Exhibit 1 B - Other Airport Examples of TNC Designated Areas
4. Exhibit 2 - Current Ground Transportation Operations August 2016
5. Exhibit 3 — SunLine Transit Agency Letter
6. Exhibit 4 — Palm Springs Hospitality Association Letter
04
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June 22, 2016
Mr. Robert Moon
Mayor
City of Palm Springs
3200 E. Taquitz Canyon Way
Palm Springs, CA 92262
Dear Mayor Moon,
SunLine Services Group (SSG) is a Joint Powers Authority established in the Coachella
Valley under the laws of the State of California. One of its functions is to regulate taxicab
operations.
We, like many other municipalities, have been confronted with the destabilizing impact
of Transportation Network Companies(TNC)and their effect on the local taxi industry.
The SunLine Board, Agency staff, Taxi Operators, and Franchise Owners, have worked
collaboratively to explore regulation changes, service delivery advances to improve
customer satisfaction, and other initiatives to prevent unnecessary advantages for
TNC's over Coachella Valley Taxis.
It has come to our attention that the Airport Commission and the City of Palm Springs is
considering allowing TNC providers to pick-up customers at the Airport and potential
plans to allow TNC's to stage in areas considered more strategic than the current Taxi
staging que or in the same vicinity as Taxis. SunLine CEO, Lauren Skiver appeared at
the June 15, 2016 Airport Commission meeting and expressed the perspective of the
SunLine Board on this issue. The Board has concerns over these proposed changes
and urges the City of Palm Springs to reconsider broadening TNC service at the Palm
Springs Airport.
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We support SIRA and the Taxi Industry in working collaboratively to ensure that
Afih passenger needs are met, safety at the Airport is maintained, and that decisions that
create an advantage for TNC's over Taxis are carefully considered.
Sincerely,
KristOFrank Chair
SunLine Services Group Board
Cc: Bob Elsner, Chairman
Palm Springs Airport Commission
Thomas Nolan, Executive Director
Palm Springs Airport
09
EXHIBIT 4
136M
HOSPITALITY
ASSOC IATI ON
The Hospitality Community Connection
July 15, 2016
Honorable Mayor Robert Moon
City Council Members
City of Palm Springs
3200 E.Tahquitz Canyon Way
Palm Springs, CA 92262
Dear Mayor and City Council:
The Palm Springs Hospitality Association represents over 180 businesses in Palm Springs, most of which have
a direct connection to the visitor. Our association is very concerned about not allowing "ride-sharing companies"
like Uber and Lyft to pick up rides(for our visitors and residents)from the Palm Springs International Airport.
It is our understanding you are considering allowing ride-sharing companies to pick up rides at the"cell phone
lot". The PSHA Board of Directors agreed at our Board Meeting on July 14, 2016, that making people(visitors
and residents alike)carry their luggage that far from the curbside would not be a good decision.
We recommend you create and approve an amendment to the city code permitting ride-sharing companies the
opportunity to take people to their destination"from"our airport(if possible)at the same location as the taxi cab
companies.
One of our major competitors as it relates to bringing Convention Business and Visitors to our destination is
Phoenix, Arizona. Their City Council just approved a measure allowing ride-sharing companies to pick up rides
from their 3 valley airports. Please see the attached sheet showing Shared Driving Policies from other cities.
Understanding how important Tourism and Convention business is to the City of Palm Springs, I am sure you
will agree following in line with other competitive cities is what is most important for this issue.
Thank you for consideration of our request.
Sincerely,
(/iWt,8i W
Vincent Bucci, PSHA President
Palm Springs Hospitality Association Board of Directors
cc: David Ready, City Manager
Palm Springs Hospitality Association—P.O. Box 4507—Palm Springs, CA 92263
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City of Palm Springs
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TEL: (760) 318-3800 • FAX: (760)318-3815 • TDD: (760) 864-9527
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MEMORANDUM
Date: August 3, 2016
To: David H. Ready— City Manager
From: Thomas P. Nolan —Airport Director
Subject: Taxicab and TNC Regulations
TNCs are regulated and licensed by the California Public Utilities Commission under Rule 12-
12-001 accompanied by Decision No. 13-09-045 and 16-04-041. In addition, when operating
at an airport, TNCs operate under a Permit/Agreement with the TNC firm, not the individual
driver.
SunLine Services Group, which is the entity formed by Riverside and Coachella Valley Joint
Powers Authority to meet their Government Code obligation for administering Taxi services,
has a specific Taxi Ordinance NO. 2015-01.
Key Licensing Requirements
Background Checks
TNCs are required by the CPUC to have each driver undergo a Name and Social Security
Numberbased Criminal Background Check.
Taxis are required by SunLine to conduct a Fingerprint based Criminal Background Check.
Post Office Box 2743 • Palm Springs, California 92263-2743
09 -03-Zotb
2/2
Drug and Alcohol Testing
TNCs are required to have and maintain a zero tolerance intoxicating policy.
Taxis require drivers to undergo a pre-employment controlled substance and alcohol testing,
and are subject to ongoing testing prior to permit renewal.
Driving Records
TNCs are required to obtain every driver's driving record prior to service and quarterly
thereafter.
Taxis obtain a DMV printout reflecting the last ten years driving record.
Attached are a list of California Commercial Service Airports that allow TNC Pickups; a sample of
some CPUC TNC Regulations, and sample of some Sunt-ine Taxi Regulations
TNC FEES CALIFORNIA AIRPORTS 2016
San Francisco SFO $3.85 per pickup
Los Angeles LAX $4.00 per pickup
Oakland OAK $3.15 per pickup and $3.15 per drop-off
San Jose SJC $2.80 per pickup
Sacramento SMF $1.25 per pickup and$1.25 per drop-off
John Wayne SNA $3.00 per pickup
Burbank BUR $3.00 for 30 minutes
San Diego SAN $2.59 per pickup plus vehicle charge
Santa Barbara SBA Currently free of charge-contract in progress
San Luis Obispo SBP $2.00 per pickup and $2.00 per drop-off
Fresno FAT Currently free of charge
Monterey MRY $3.00 per pickup and $3.00 per drop-off
Redding RDD No current agreement
Modesto MOD Currently free of charge as no commercial airline is operating
Ontario ONT No current agreement
Long Beach LGB No current agreement
Sample of TNC Requirements by
California Public Utilities Commission (CPUC)
Source: CPUC Decision 13-09-045,CPUC Decision 16-04-041
TNC Companies TNC Drivers
Shall maintain commercial liability insurance polices
providing not less that$1,000,000 per-incident Shall be required to provide proof of both their
coverage personal insurance and the commercial insurance
Shall perform criminal background check on each
TNC driver before the driver begins offering service.
The criminal background check must be a national
criminal background check including the national sex
offender database. The criminal background check
must use the applicants social security number and Shall display consistent trade dress in the front and
not just the applicant's name. Any person who has the rear of the vehicle(i.e.distinctive signage or
been convicted,within the past seven years,of display on the vehicle)when providing TNC services
driving under the influence of drugs or alcohol,fraud, that is sufficiently large and color contrast as to be
sexual offenses, use of a motor vehicle to commit a readable during daylight hours at distance of 50 feet.
felony,a crime involving property damage,and/or Acceptable forms of trade dress include, but are not
theft,acts of violence,or acts of terror shall not be limited to,symbols or signs on vehicle doors,roofs,
permitted to provide TNC Services grills,or placed in the front and rear windshields.
Shall institute a zero tolerance intoxicating substance Prohibited from transporting more than 7 passengers
policy with respect to drivers on any giving ride
Shall obtain each TNC driver's record before the
driver begins providing service and quarterly
thereafter. Driver with convictions for reckless
driving,driving under the influence,hit and run,or
driving with a suspended or revoked license shall not Prohibited from accepting street hails from potential
be permitted to be a TNC driver. passengers
Shall establish a driver training program to ensure Must possess a valid California driver's license, be at
that all drivers are safely operating the vehicle prior to least 21 years of age, and must provide at least one
the driving being able to offer service. year of driving history before providing TNC services
May only use street-legal coupes,sedans,or light-
duty vehicles including vans, minivans,sport utility
vehicles(SUVs)and pickup trucks.
The app used to connect drivers and passengers must
display for the passenger: 1)a picture of the driver,
and 2)a picture of the vehicle the driver Is approved
to use, including the license plate number to identify
the vehicle
Vehicles shall not be significantly modified from
factory specifications,e.g., no"stretch"vehicles
Sample of TNC Requirements by
California Public Utilities Commission(CPUC)
TNC Companies TNC Drivers
Shall ensure all vehicles are inspected by a facility
licensed by the California Bureau of Automotive
Repair(a)before the vehicle is first introduced into
service as TNC vehicle;and(b)every 12 months or
50,000 miles thereafter,whichever occurs first.
Minimum 19 point inspection. TNCs shall be
responsible for ensuring that each of their
vehicles/drivers'vehicles complies with this
requirement,and shall maintain records of such
compliance for a period of three years.
Must have a license with the CPUC. There are six
types of charter party carrier permits/certificates.
TNCs shall apply for class P permit.
Shall perform, prior to allowing a driver on the
platform and quarterly thereafter,driving records
checks through the DMV In order to ensure that
drivers meet applicable requirements. TNCs shall use
the DMV Employer Pull Notice Program once it is
available for use by TNCs.
CPUC may conduct unscheduled visits to inspect TNC
records,including proof of commercial liability
insurance,criminal background check information,
TNC driver's license and driving record,vehicle
inspection records,driver suspensions,deactivations,
and subsequent reactivations.
TNCs that primarily transport unaccompanied minors
must comply,at a minimum,with the background
check requirement articulated by the CPUC in
Decision 97-07-063,including successfully completing
the Trustline registry process for any and all drivers.
Must ensure that the personal vehicle used by their
drivers complies with all applicable regulations
before placing a vehicle into service,including, but
not limited to driver training, meeting insurance
requirements,a 19-point inspection performed at a
California Bureau of Automotive Repair-licensed
facility,and trade dress.
Excerpt of Taxis Requirements by SunLine
Franchisee or the Owner of the vehicle and no Vehicle Inspection Sticker shall be
issued to the vehicle regardless of its ownership until the Vehicle Permit Fee owing
to SSG shall have been paid.
Section 1.095 Driver Permit—Required
A. It is unlawful for any person to drive a Taxicab without Laving first obtained a
Driver Permit. A Driver Permit may be obtained from SSG as provided below.
The Driver Permit shall state the Driver's name, California Driver's License
number, date of issuance and the name of the Franchisee with whom the Driver is
employed within the meaning of Government Code section 53075.5. If the
Franchisee and the Driver are the same person,he or she shall apply for and obtain
from SSG both a Driver Permit and enter into a valid Franchise Agreement with
SSG.
B. An applicant for a Driver Permit shall complete an application form which shall
contain the following information:
1. Applicant's full name,residence address, and age;
2. Applicant's last two previous residence addresses;
3. A listing of all equivalent permits which have been issued to the applicant
by any governmental agency;
4. Applicant's height,weight,gender, and color of eyes and hair;
5. The number and expiration date of the applicant's California Driver's
License;
6. All moving violations within the last 3 years, including dates of violations
and the jurisdiction where each violation occurred;
7. All criminal convictions,including dates of conviction and the court where
the conviction was rendered;
8. Authorization for SSG, or its agents or employees to seek information and
conduct an investigation into the truth of the statements set forth in the
application and the qualifications of the applicant.
9. The name of the Franchisee with whom the applicant is employed or who
has given the applicant an offer of employment within the meaning of
Government Code section 53075.5.
C. At the time the applicant submits an application for a Driver Permit, the applicant
shall do all of the following:
261IM4041-0002
3053763.1 aOMIl16 -19-
Excerpt of Taxis Requirements by SunLine
1. Provide SSG with an original current Department of Motor Vehicles
("DMV")print-out ("1-1-6") reflecting the past 10 year driving record of
the applicant if applicable. If the applicant has been licensed as a Driver in
the State of California for less than 10 years,he or she shall provide original
verified driving records from other jurisdiction(s) sufficient to reflect any
convictions listed under section 1.110 hereof for the 10 year period prior to
filing the application.
2. Be fingerprinted by SSG and provide SSG with two current 2"X 2"passport
sized photographs of the applicant;
3. Submit to pre-permit/employment controlled substances testing as set forth
in the Ordinance of SSG at a collection site certified to perform controlled
substance testing pursuant to Part 40 (commencing with Section 40.1) of
Title 49 of the Code of Federal Regulations in or near the jurisdiction of
SSG.
4. Pay the Driver Permit Fee as established by resolution of the Board of
Directors to cover the administrative costs incurred by SSG in processing
the application as required by this section. No Driver Permit application
shall be processed without the payment of such Fee, and;
5. Submit the employment verification form which states the name of the
Franchise with whom the applicant is employed or who has given the
applicant an offer of employment within the meaning of Government Code
section 53075.5. The employment verification form will be supplied to the
Franchisee by SSG.
6. Successfully pass a Driver test certifying familiarity with the Coachella
Valley area, the provisions of the Ordinance of SSG and Regulations
adopted to implement it and sufficient proficiency in the English language.
D. A copy of the application for a Driver Permit along with the DMV H-6 form or
corresponding out of state driving record shall be used to conduct a local criminal
background check in the event a Department of Justice background check is not
received within 7 working days. The applicant's application shall be denied in the
event that the check discloses conviction of an offense enumerated in Section 1.110.
In the event a local background check is conducted pending the Department of
Justice report,a temporary permit will be issued if the local check of the Applicant
fails to disclose a conviction enumerated in section 1.110.
E. In the event of denial of a Driver Permit, the applicant may, within 10 days of
notification of denial, apply to the SSG for a hearing on the denial in accordance
with the procedures set forth in section 1.256.
F. The applicant's fingerprints shall also be referred to the California Department of
Justice electronically for a general criminal background check. If the results of a
general criminal background check indicate that the applicant has been convicted
261MB9071-0002
3033763.1 c09..01,15 -20-
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June 22, 2016 JUN 0 7 2DI6
Mr. Robert Moon
Mayor
City of Palm Springs
3200 E. Taquitz Canyon Way
Palm Springs, CA 92262
Dear Mayor Moon,
SunLine Services Group (SSG) is a Joint Powers Authority established in the Coachella
Valley under the laws of the State of California. One of its functions is to regulate taxicab
operations.
We, like many other municipalities, have been confronted with the destabilizing impact
of Transportation Network Companies (TNC) and their effect on the local taxi industry.
The SunLine Board, Agency staff, Taxi Operators, and Franchise Owners, have worked
collaboratively to explore regulation changes, service delivery advances to improve
customer satisfaction, and other initiatives to prevent unnecessary advantages for
TNC's over Coachella Valley Taxis.
It has come to our attention that the Airport Commission and the City of Palm Springs is
considering allowing TNC providers to pick-up customers at the Airport and potential
plans to allow TNC's to stage in areas considered more strategic than the current Taxi
staging que or in the same vicinity as Taxis. SunLine CEO, Lauren Skiver appeared at
the June 15, 2016 Airport Commission meeting and expressed the perspective of the
SunLine Board on this issue. The Board has concerns over these proposed changes
and urges the City of Palm Springs to reconsider broadening TNC service at the Palm
Springs Airport.
32 505 Harry Oliver 7rai1, Thousand Palms, Ca!,fo,,,;j 92276 Phone. 76C 343-3456 Fax 760-343 s;" hqnorg
We support SRA and the Taxi Industry in working collaboratively to ensure that
passenger needs are met, safety at the Airport is maintained, and that decisions that
create an advantage for TNC's over Taxis are carefully considered.
Sincerely,
Kristy Franklin, Chair
SunLine Services Group Board
Cc: Bob Elsner, Chairman
Palm Springs Airport Commission
Thomas Nolan, Executive Director
Palm Springs Airport
RECEIVED
03 August, 2016 ZITY OF PALM SMNG_,
Mr. Thomas Nolan, Executive Director, Palm Springs International Airport 2016 AUG —3 PM 3: 31
Mr. David Ready, City Manager, City of Palm Springs
Mr. Robert Moon, Mayor, City of Palm Springs )A M E S T H O M P$('1.
City Council Members, City of Palm Springs CITY CLERK
3200 E. Tahquitz Canyon
Palm Springs, CA. 92262
RE: Agenda Item 3A—August 3. 2016
Dear Ladies and Gentlemen:
We are taxi drivers working under the regulation of Sunline Transit Agency, who are asking the City Council to
not allow Transportation Network Companies(TNC)to operate out of Palm Springs International Airport. There
are numerous TNCs now operating within the Coachella Valley—Lyft, Sidecar, the Uber X'platform, and
others, which has severely compromised our ability to earn a sustainable income.
While there are other areas of operations outside of the Coachella Valley that may be able to financially handle
the competition of the TNCs, our region is much different as we are seasonal in our ability to earn an
income. As all businesses in the Coachella Valley,there are only about 5 months in which we can be truly
profitable, and while we try to put money back to get us through the lean, lean off-season—it IS a constant
struggle to survive.
To add insult to injury, the majority of TNC drivers have "real"jobs. One driver recently bragged how he works
40-48 hours at a local casino, and then "Ubers 60 hours a week". When asked, "When do you sleep?', he
responded that he does fine on 4-5 hours of sleep!
The statements made within the body of the letter from the Palm Springs Hospitality Association are
erroneous. There are multiple transportation options available for every guest arriving at Palm Springs
International Airport. A taxi is always available, as well as rental cars, Black Car, and shuttle services. If a
guest insists on a TNC, it is the guest who elects to walk out to El Cielo to meet their TNC driver.
Sunline can supply you with documentation providing completed rides for each of the three taxi franchises that
operate out of PSP. One company posted numbers that reflects that their drivers average three rides per
day. With a fare downtown to be less than$15, that works out to$45 per day/$315 per week. With the
franchises weekly leases of$500+, or others splitting 50150, a driver will take home AFTER refueling.... well,
you get the picture. Many drivers have left, and the franchises have cars sitting.
The only opportunity for a taxi driver to keep his head above water is to hopefully catch a good ride out of
PSP. And if the driver is smart, he books the return. Those few choice rides can make the difference as to
whether we can pay our utility bill, or even eat a decent meal. If the TNCs are allowed into PSP, then our
source of revenue declines even further, and the franchises will not survive.
Driving a taxi IS our"real"job, and we need your assistance to make certain that WE have an opportunity to
make a decent living!
Thank you,
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As a back story, Uber is generally quite selective as to the market areas that they operate. Their
demographics are that of young, tech savvy, college based, and year-round. Greater Palm
Springs did not, and will likely never meet that criteria. It was only at the literal 6-7 months of
badgering by a local limo service. Inserting the argument that Uber's largest California based
utilizers were San Francisco, Los Angeles, and San Diego, the question was posed to Uber, "And
where do you think these same utilizers are on any given weekend? Palm Springs!" Uber
elected to bring the Black Car** platform to the Coachella Valley as a pilot in February, 2014,
with the Uber X platform coming into PS approximately one year ago.
* Uber X—Transportation Network Company (TNC)
John/Jane Q. Public utilizes his own personal vehicle to provide transportation on demand.
Little or no investment outside of their customary costs.
Limited "background checks" —local rather than Federal. Random Alcohol/Drug testing not
required.
** Uber Black Car—Transportation Charter Party
Legal corporation established and filed with the California Secretary of State.
Application submitted to CPUC for acceptance.
Vehicles are registered to company.
Requires commercial insurance, with City of Palm Springs listed as an Insured party.
Due to the expense of start up and operations, this is full time.
Three tiers to Uber X platform.....
Tier 1: TNC app OFF. (Not searching for work)
Owner's personal auto insurance policy and coverage in effect.
Tier 2: TNC app ON. (Waiting for a call with no passengers)
Owner's personal auto insurance policy and coverage are now null and void.
(The CPUC requires all TNC drivers to obtain GAP insurance—a secondary policy independent
from their personal auto insurance policy-to cover the time their app is turned ON until driver
is dispatched a call. There are no known local TNC drivers who have actually purchased a GAP
policy.)
Tier 3: TNC app ON. Passenger on board.
For Uber to operate their Uber X platform in the Stater of California,the CPUC requires a $1
million dollar policy per incident.
Now Uber and Lyft have posted insurance for the Commercial Liability as well as GAP, but the
question remains. With Uber identifying itself as merely a technological company—not a
transportation company, how are they able to provide GAP and Commercial Insurance for these
non-insured drivers? According to the CPUC, these drivers are considered employees, not
independent contractors, where the drivers would be solely responsible for these costs.
Also in question, the$1 million dollar policy appears to only cover Uber and no one else as
recently, an Uber X platform (TNC) driver was involved in an accident with his passenger
sustaining injury requiring medical attention. The passenger submitted their medical bills to
Uber and was denied reimbursement. Uber directed the passenger to contact the driver for
reimbursement. Since the driver was operating as a "livery", their personal auto insurance was
null and void while engaged in transporting a paying customer.
An accident involving an Uber X driver caused major structural damage to his vehicle. As the
owner's insurance was not in effect since the driver was working as a "livery", he went out and
immediately purchased another vehicle as he plans to default on his financial commitment to
the damaged vehicle that he is unable to repair.
This Tier system basically means that all these other TNCs that are flooding our local streets,
and currently dropping off passengers at PSP, are basically "uninsured motorists", with less
than stellar results.
It is the MO of TNC drivers that they complete one ride so they can get to the next. PSP already
has an abundance of pedestrian near-misses due to the customary congestion in the non-
commercial corridor. Adding TNC's RickyRacers, who will most likely be "uninsured motorists",
is just asking for trouble.
Prominent news accounts have an Uber X driver running over and killing a 6 year old child. An
Uber X driver bludgeoned a passenger with a hammer, while another female guest, severely
compromised, woke up in a hotel room with an Uber driver.
We would ask that you please speak with Indio City Councilman, Mr. Michael Wilson, who rode
with a Black Car driver during the Coachella Music Festival. He related to the driver that the
evening before,there were 24 vehicle accidents, with 23 involving Uber drivers.
More importantly, all drivers working as a livery should be in the commercial loading area,
paying their just fees, which include annual company fee, vehicle transponder fee, and trip fees.
How did the ACOC expect PSP to monitor the number of rides a TNC driver takes if they are
allowing then to load in a non-commercial zone where there is no retrieval system in place?
The City Council has a financial responsibility to the citizens. While we welcome our guests and
regard their needs, at what cost will the City be willing to sell out? $30,000? While these
monies could be put to good use,the major influx and headaches associated with the decision
to allow TNCs should require IN ADVANCE the re-establishment of a landside office with
ADEQUATE personnel who will be doing nothing but monitoring. That $30,000 will be gone in a
flash, and heaven forbid that someone is injured on city property. Just be prepared to start
adding a few more zeros to that $30,000.
Other issues are the fact that while the Commission's Report references Los Angeles, San Diego,
Sacramento..... what they have failed to mention is that according to an article in the Desert
Sun, who printed statements from San Diego personnel who implied that since Uber refused to
allow in depth background checks and fingerprinting, that they wanted to level the playing
field, so no longer require their taxi drivers to go through the process. The basically dummied
down.
While we were unable to reach the person in charge of overseeing the Uber X program today at
LAX, it is my understanding that Uber X is on their way out. Also, although Ontario
International Airport is part of LAWA, they have never allowed any TNC.
And what about the situation in Austin, Texas that has made national news. Uber is not
allowed in the city because it refused to require its drivers to be fingerprinted. People can
obtain false documentations, changing their name and profiles, but they can't change their
fingerprints. What is there to hide?
Currently, local taxi drivers are paying anywhere from $475 to$675 per WEEK to operate.
There needs to be a good deal more public discussion regarding this matter, and we urge the
City Council to set aside any decision until ALL the information is obtained.
Jay Thompson
From: David Ready
Sent: Monday, August 01, 2016 10:17 AM
To: Jay Thompson
Subject: FW: What to Consider Before Deciding on TNC's
Attachments: Palm Springs City Council Presentation_TNC.pdf
Jay - fyi -for council meeting yellow folder.
iY
DAVID H. READY, Esq., Ph.D.,
CITY MANAGER
City of Palm Springs Tel: (760)322-8350
3200 E. Tahquitz Canyon Way Fax: (760)323-8207
Palm Springs, CA 92262 TDD: (760)864-9527
www.paimspringsca.gov David.Readv( almspringsca.gov
From: michal@yellowcabofthedesert.com [mailto:michal(.@yellowcabofthedesert.coml
Sent: Thursday, July 28, 2016 4:28 PM
To: Jennifer Nelson; Robert Moon; Chris Mills; Ginny Foat; Geoff Kors; JR Roberts; David Ready
Cc: Bill Meyers; Roy Meghnagi; Gadi Srulovitz; Gadi Srulovitz; Bill Meyers; Red Papadopoulos; Ricardo Cruz Diaz; Luis
Aceves; Thomas Nolan; Yvonne Parks; dbeebe(a)sunline.org; kristyforlaguinta@gmail.com; rbetts(cbcitvofdhs.org; Greg
Pettis; gdanahobert(d)aol.com; Lauren Skiver; Stephanie Buriel; Charis Robin; Lee Greer; rtarpeninw-Okesa.com;
jwhite@kesg.com; Zak Dahlheimer; skip.descant(Edesertsun.com; mlopez(glkmir.com; localnews@thedesertsun.com,
ashley.hopkinson(cDthedesertsun.com; editor(gldesertoublicrecord.com; publisher(gbcoachellavalleyweekly.com;
kevin.holmes(gIalphamediausa.com; danL&sunnyl03fm.com; gene.nicholsCdaIohamediausa.com; Greg Klibanov; Mabo
Subject: What to Consider Before Deciding on TNC's
Dear Mayor Moon and Councilmembers:
It was recommended that the taxi industry email you a copy of the attached presentation for you to
review prior to making your decision regarding TNC's to operate out of the Palm Spring International
Airport on August 3rd, 2016. Industry leaders would welcome the opportunity to speak more in depth on
the matter. We thank you for your time and consideration.
Thank you,
Mrs. Michal Brock
General Manager
Yellow Cab of the Desert, Inc.
Desert Premier Transportation, Inc.
75-150 St. Charles Place
Palm Desert, CA 92211
(760) 340-8294
(760) 340-5042 fax
A.
D3 03, - Zol�e
DESERT CITY CAB
WHAT TO CONSIDER
BEFORE DECIDING TO ALLOW TNC ' S
TO OPERATE OUT OF PALM SPRINGS
INTERNATIONAL AIRPORT
�1
0
July 28,2016
DESERT CITY CAB
Packet Contents
What Your Peers Have To Say:
• City of Los Angeles May, Eric Garcetti Urges Fingerprint Background Checks............Page 1
• City of Houston Implements Drug Testing and Fingerprint Background Checks for TNC drivers
toProtect the Public ...................................................................................Page 3
• City of Houston Issues Scathing White Paper Criticizing Uber's and Lyft's Background
Checks...................................................................................................................................Page 5
• Massachusetts District Attorney Association President Concerned About Lack of Regulation for
TNCs.....................................................................................................................................Page 18
What the Professionals Have to Say:
• Letter from Ret. Deputy Director of Immigration and Customs Enforcement at the Dept.
Homeland Security Alonzo "Al" Pena to Mayor Ivy Taylor and Members of the City Council of
San Antonio regarding fingerprint-based background checks..................................Page 19
• White paper issued by the International Biometrics and Identity Association urging Uber and
Lyft to implement fingerprint-based criminal background checks...............................Page 21
What the Media Has To Say:
• Uber Banned From Logan Airport..................................................................Page 29
• Newark Airport Imposes Restrictions on Uber& Lyft..........................................Page 32
• What Happened to Austin, Texas, When Uber and Lyft left town..............................Page 34
• Inside the Campaign that Makes You Think Twice About Getting Into an Uber..............Page 36
Safety Statistics:
• Local Taxicab Driver Permit Denials Based on Category.......................................Page 41
• "Ridesharing" Incident Statistics....................................................................Page 44
L
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ql
CITY HALL
LOS ANGELES, CALIFORNIA 90012
March 16, 2016
Ms. Liane Randolph
Commissioner, California Public Utilities Commission
505 Van Ness Avenue
San Francisco, CA 94102
Dear Commissioner Randolph,
For several decades, the City of Los Angeles has required Taxicab operators to seek a
franchise agreement with the city in order for their drivers to operate within the city limits. A
condition of that franchise agreement has been that taxi drivers are required to submit Live
Scan fingerprints so that their provided identification can be crosschecked against law-
enforcement databases for the purpose of determining a driver's criminal history and verifying
driver identity.
This has had the effect of disqualifying many potential applicants from employment as taxicab
drivers. Under the city's regulations, the Los Angeles Department of Transportation receives the
results of Live Scan reviews and either rejects or accepts an applicant and notifies the Taxicab
franchisee as to whom they may hire. Drivers who are rejected may appeal to the Board of
Taxicab Commissioners, who are appointed by the Mayor and confirmed by City Council.
For the past several months, in conversations with you and the CPUC staff, we have discussed
the potential for a pilot program to begin implementing a fingerprinting requirement for Charter-
party Carrier(TCP) and Transportation Network Company (TNC) drivers, similar to that which is
already applied to Taxicab drivers, in the City of Los Angeles. The goal of the pilot would be to
safeguard the public and help transit providers use data for the development of future
regulations for TCPs, TNCs and the Taxicab industry.
Specifically, we propose the following elements of a fingerprinting pilot program: TNC and TCP
drivers would be required to be fingerprinted and have a background check under the California
DOJ screening process.
TNCs and TCPs would be required to report on the number of existing drivers whose non-
fingerprint background checks were found to be incomplete or inconsistent with the results of
the new screening process, including reporting on the nature of missing information.
Page 1 of 44
Ms. Liane Randolph
March 16, 2016
Page 2
TNCs and TCPs would be required to reveal their criteria, patterns and practices for denying
drivers employment, driver appellate processes and their pre- and post-fingerprinting rates of
acceptance and rejection for new drivers.
The implementation of the pilot could be handled two ways. In one scenario, the TNC or TCP
who is checking the background of a driver could be the recipient of the new screening data and
make an independent assessment of the driver candidate and hire or reject that candidate
based on the results of the screening. In the alternative scenario, the CPUC or LADOT could be
the recipient of the results of the Live Scan background check and provide a similar service as
LADOT provides in the case of taxicab franchisees, in accepting or rejecting a candidate driver.
If the CPUC is willing to engage in the pilot, the City of Los Angeles could expand its operations
to accommodate the addition of TNC and TCP drivers.
Lastly, and with regards to the jurisdictional challenge posed by a City of Los Angeles-oriented
pilot, we would propose that TNCs configure their ride-hail platforms to disallow a non-
fingerprinted driver from picking up a passenger within the City of Los Angeles. The City's
Planning department can provide shapefiles and GIS data to configure the apps to reject fares
originating from within the city from drivers who have not submitted their fingerprints.
We know that the CPUC is committed to passenger safety as well as a robust, thriving and
competitive transportation services marketplace. The opaque nature of current TCP and TNC
background check protocols and practices is a cause for concern for the riding public.
Furthermore, even if the TCP and TNC claims of safety and security are to be believed, their
best practices are subject to change at any time without the backstop of law or regulation.
Without gathering a significant pool of control and test data, we do not believe that the
Commission or the City can adequately respond to the rapidly changing landscape of this
marketplace.
We view the addition of a fingerprinting pilot program as the next logical step towards enhancing
the safety of the riding public. We urge you to consider our proposal and continue working with
us towards implementation.
Sincerely,
LCX9__41a_
Eric Garcetti Herb J. Wesson, Jr.
Mayor President, Los Angeles City Council
City
of Los Angeles Councilmember, loth District
0� VILe
Paul Krekorian
Chair, Budget and Finance Committee
Councilmember, 2nd District
Page 2 of 44
User ID:e138237, Date/Time: 10/15/2015 12:45 PM, Document Name: Microsoft Word-Latter to CM Kitchens
CITY OF HoUSTON Annise D. Parker
Office of the Mayor Mayor
P.O.Box 1562
19 Houston,Texas 77251-1562
Telephone-Dial 11
www.houstonix.gov
October 15, 2015
Honorable Alm Kitchen
Council Member, District 5
City of Austin
301 W. Second Street
Austin, Texas 78701
Re: City of Houston TNC Licensing Standards
Council Member,
The City of Houston regulates all vehicles-for-hire in the interest of public safety and customer service,
regardless of service category. On August 6, 2014, Houston's City Council approved an ordinance
expanding our regulatory framework to include Transportation Network Companies (TNCs)- companies
such as Uber and Lyft that dispatch drivers using their personal vehicles to provide commercial
transportation service via a smart phone application. The City of Houston's ordinance requires all
applicants for a license to drive a vehicle-for-hire, including TNC applicants, to complete the following
steps to qualify for a license:
• Undergo a five panel drug test
• Complete a physical examination
• Undergo a warrant check with the City of Houston's Municipal Courts Department
• Pass a ten fingerprint FBI background check conducted through the Texas Department of Safety
In our experience over the past year, it has proved critically important to require TNC drivers to undergo
a fingerprint-based FBI background check before licensure. Uber and other TNCs use commercial third
party companies that use name-based searches or the basic identifiers used for credit checks, such as
social security numbers, past counties of residence, and voter records. These are effectively skip-trace and
credit check companies. Additionally, these private checks do not search all 50 states and commercial
databases only have access to information that is already publicly available.
Because they do not use a biometric identifier (i.e. fingerprints), these companies miss applicants that use
aliases. For example, a recent TNC driver, who had been cleared by Hirease, underwent a City of
Houston fingerprint background check that produced results showing she had 24 alias names, 5 listed
birth dates, 10 listed social security numbers, and an active warrant for arrest.
In the approximately ten months since Houston's ordinance went into effect, our fingerprint-based FBI
background check found that several applicants for TNC driver's licenses-who had passed a commercial
criminal background check - had a prior criminal history. The charges include: murder, assault,
battery, racketeering, indecent exposure, DWI/DUI, possession of a controlled substance,
prostitution, fraud, robbery, aggravated robbery, larceny, violation of probation, sale of alcohol to
a minor, traffic of counterfeit goods, unlawful carry of a weapon, reckless driving, public
intoxication, driving with a suspended license and unauthorized use of vehicle.
Council Members: Brenda Stardig Jerry Davis Ellen R.Cohen Dwight A. Boykins Dave Martin Richard Nguyen Oliver Pennington Edward Gonzalez
Robert Gallegos Mike Laster Larry V.Green Stephen C.Costello David W.Robinson Michael Kubosh C.O."Brad"Bradford Jack Christie
Controller: Ronald C.Green
Page 3 of 44
Honorable Ann Kitchen
City of Hou.slun fNC Licensing Standards
October 15,2015
Page 2 of 2
In light of the compelling evidence and Houston's own experience regulating TNCs, Houston strongly
believes that all Texas cities should require all vehicle-for-hire drivers to undergo a fingerprint-based FBI
background prior to being authorized to provide transportation services to fellow 1'exans. I have attached
the City of Houston's white paper summarizing our research on fingerprint-based background checks as
well as the extensive body of research that has informed our opinion.
Only government agencies have the full authority to see all information contained in the FBI database,
which is the single strongest source of criminal history information in the country. I he only way a TNC
driver can undergo this full check is if a government body acts as a regulatory authority. It is important to
remember that TNCs may have a zero tolerance policy when it comes to criminal history of any kind;
however. that policy is hard to enforce when the background check fails to identify the criminal record.
Please feel free to contact me with any questions or if you require any of our source documents. My staff
in the Administration& Regulatory Affairs Department stands ready to assist you in any way.
Regards,
Christopher Newport, M or's Chief of Staff
City of Houston
Page 4 of 44
(i)
Safety, Effectiveness & Best Practices for Vehicle-for-Hire
Criminal Background Checks
Tina Paez, Director
Administration & Regulatory Affairs Department
City of Houston
March, 2016
Page 5 of 44
Table of Contents
1. Exhibit I: City of Houston Research Summary Regarding Criminal
History Background Checks ............................................................3
2. Exhibit Il• Assertions vs. Facts -- Transportation Network
Companies and Criminal Background Checks ................................7
3. Exhibit III: What does the U.S. Attorney General Really Say about
Criminal History Checks? .............................................................. 10
4. Exhibit IV: Excerpt from San Francisco False Advertising Suit... 13
Page 6 of 44
Exhibit I: City of Houston Research Summary on Criminal
History Background Checks
Page 7 of 44
City of Houston
Administration& Regulatory Affairs Department
Criminal History Background Checks:
Research Summary as of 4/7/2015
Introduction
Despite assurances from TNCs that commercial background companies conduct criminal background
checks at least comparable to the ones run by municipalities, but usually even more thorough, in fact
these background checks are incomplete. Following are the specific deficiencies in these private criminal
history checks based on our research and the commercial background check providers' website
information:
• NOT National Background Checks:
o Hirease"national criminal search" check does not include Delaware,Massachusetts,
South Dakota,Wyoming
o Sterling Infosystems "state criminal records search" does not cover California,
Louisiana, Mississippi or Wyoming
o Do not search every county,creating potential gaps
• DO NOT use truly unique search identifiers, i.e.fingerprints
o Many are name-based; or they use the basic identifiers used for credit checks, i.e. social
security numbers, past counties of residence, voter records. These are basically skip trace
and credit check companies.
o Because they do not use a biometric identifier, these companies miss applicants that use
aliases. For example, a recent TNC driver, who had been cleared by Hirease,
underwent a City of Houston fingerprint background check and it turned out she had 24
alias names, 5 listed birth dates, 10 listed social security numbers, and an active
warrant for arrest.
o Even Hirease, the company that performs commercial third party background checks for
Uber, admits that fingerprint-based checks are more secure because '.fingerprinting helps
uncover criminal history not discovered through traditional means, offers extra
protection to aid in meeting industry guidelines, and helps prevent fraud"
(www.hirease.com/fingerprinting).
Page 8 of 44
o Since Houston's ordinance became effective, the City's Sngerprint-based FBI
background check found that several applicants for TNC driver's licenses — who
had already been cleared through a commercial criminal background check—had a
prior criminal history. The charges include:
• Murder • Aggravated Robbery
• Assault • Larceny
• Battery • Violation of Probation
• Racketeering • Sale of alcohol to a minor,
• Indecent exposure • Traffic of counterfeit goods
• DWI/DUI • Unlawful carry of a weapon
• Possession of a controlled • Reckless Driving
substance • Public intoxication
• Prostitution • Driving with a suspended license
• Fraud • Unauthorized use of vehicle
• Robbery • Sexual Assault
o TNCs may have a zero tolerance policy when it comes to criminal history of any
kind; however, that policy is hard to enforce when the background check fails to
identify the criminal record.
National Background Checks
The background checks conducted by firms such as Hirease and Sterling are NOT true national checks.
Commercial background checks are based on the personal information of the applicant, including name
and social security number. These companies typically use the applicant's social security number to
identify past counties of residence. The company then searches the courthouse records of these and
surrounding counties. However, as these checks do not search every county,they create a huge potential
gap where crimes go undetected.
In order to supplement these county checks, commercial background companies often rely on commercial
"national databases" composed of records collected from the various state criminal record repositories.
However, these databases do not contain information from all states and pale in comparison to the scope
of the background check conducted by the FBI. For example, the "national criminal search" conducted
by Hirease does not cover Delaware, Massachusetts, South Dakota, or Wyoming. The "state criminal
records search" conducted by Sterling Infosystems does not cover California, Louisiana, Mississippi, or
Wyoming. The FBI provides the only true nationwide check. TNCs claim that regional processing
times mean that the FBI database is not always 100% up-to-date and therefore imply that background
checks conducted through the FBI cannot be trusted. However, the US Attorney General's Office
concludes that the FBI database, "while far from complete, is the most comprehensive single source of
criminal history information in the United States." More so, neither the TNCs nor their commercial
background check providers have demonstrated that their commercial databases are immune to these
same criticisms. In fact, the US Attorney General's Office goes on to point out that "in many instances
the criminal history record information available through a commercial check is not as comprehensive as
an [FBI] check because many states do not make criminal history records available to commercial
Page 9 of 44
database compilers." Both Hirease and Sterling have failed to demonstrate the efficacy of their non-
fingerprint based criminal history checks.
Fin¢erarint Background Checks
Commercial background check companies do not use biometric identifiers to match an applicant with his
or her record. This substantially increases the twin risks of false positives(when a person with a common
name is associated with another person's record) and false negatives (when a record is missed because an
individual provides false identifying information). A national taskforce compared the efficacy of name-
based and fingerprint-based background checks using the FBI Interstate Identification Index database.
The taskforce found that "based on name checks alone, 5.5 percent of the checks produced false positives
and 11.7 percent resulted in false negatives."(U.S. Dept. of Justice 2006,p. 25).
The City of Houston's TNC ordinance has been effective since November 4, 2014. In the approximately
10 months since the ordinance went into effect, the City's fingerprint-based FBI background check
found that several applicants for TNC driver's licenses — who had passed a commercial criminal
background check — had a prior criminal history. The charges include: murder, assault, battery,
racketeering, indecent exposure, DWVDUI, possession of a controlled substance, prostitution,
fraud, robbery, aggravated robbery, larceny, violation of probation, sale of alcohol to a minor,
traffic of counterfeit goods, unlawful carry of a weapon, reckless driving, public intoxication,
driving with a suspended license and unauthorized use of vehicle. TNCs may have a zero tolerance
policy when it comes to criminal history of any kind; however, that policy is hard to enforce when the
background check fails to identify the criminal record.
All criminal justice record information ultimately originates from one of four primary government
sources: law enforcement agencies, the courts, corrections agencies, and prosecutors. Although
commercial background check providers claim to obtain data from multiple private databases,these extra
databases do not necessarily add value to the background check process. If a single database, like the FBI
database, reliably gathers information from these primary sources, then searching further databases is
unnecessary and redundant. Commercial background check companies search multiple databases in order
to pad their resume in comparison to the FBI's comprehensive database. Private databases may not
reliably and regularly collect information from all primary sources in all states.
COMPARISON OF MUNICIPAL CRIMINAL HISTORY CHECK VS.PRIVATE SECTOR PROVIDERS
Scope of Record Review MUNICIPAL* Hirease Smiling Note
Many states do not make
✓ Excludes Delaware, Excludes California,Louisiana, criminal history records
50.stete National Criminal Records Massachusetts,South Dakota, Mississpp4 Wyoming available to commercial
Search Wyoming database compilers
Search of all counties ✓ x x
'Note:The City of Houston requires a fingerprint background check through the State DPS which gets information from the Fill database.For the most up-to-
date local arrest information,Houston requires driver applicants to present themselves to our Municipal Courts fora warrant check.Houston's national
search through the CPS includes the national sex offender registry.
Page 10 of 44
Exhibit II: Assertions vs. Facts — What Transportation
Network Companies Traditionally Assert About Criminal
Background Checks
Page 11 of 44
Assertions vs. Facts: Transportation Network Companies and Criminal History Checks
TNC Assertion: The FBI background check does not check the National Sex Offender Registry.
Fact: The National Sex Offender Registry (NSOR) is a government database available only to law
enforcement that is maintained by the FBI's Criminal Justice Information Services Division. Thus the
FBI already has complete access to information on sex crimes and has no need to search a separate
database. It is also impossible for any private entity to search the NSOR.
Because the NSOR is only available to law enforcement, the Department of Justice also maintains the
National Sex Offender Public Website (NSPOW). Unlike the NSOR, which contains complete
information on sex offenders, the NSPOW only contains publicly available information. Several states
have laws that allow sex offenders to apply for an exemption from being reported on the publicly-
available website. For instance, the NSPOW omits approximately 25%of the registered sex offenders in
California.
A private company can only search the publicly available information in the NSPOW. It cannot search
the NSOR maintained by the FBI. The FBI has no need to search a separate database, because it already
has records on this information.
TNC Assertion: Commercial criminal history checks include a "multi-database" or "multi-layer" search
and are superior to the FBI criminal history check.
Fact: Commercial criminal history checks often tout that they conduct a "multi-database" or "multi-
layer" search, implying that they are therefore superior to the FBI database. The FBI database, however,
is the single most comprehensive source of criminal history information in the nation. The FBI has no
need to search multiple databases, because they already gather information from the primary originators
of criminal history information—courts and law enforcement agencies.
TNCAssertion: The FBI database is missing information and is thus unreliable.
Fact: It can take several years for a court case to work its way through the criminal justice system. If a
record is missing final disposition information, in many cases it is because final disposition does not yet
exist for that record. More so, because the FBI database has complete access to criminal history
information final disposition information is not needed to protect public safety. The presence of an arrest
record alone is enough to flag an applicant for further investigation.
TNC Assertion: Commercial database companies have access to the same criminal history information as
government agencies.
Fact: Private companies can only get access to information in the FBI and state criminal history databases
that has been made publicly available. This means that they do not have the ability to view all records,
including unadjudicated arrests and juvenile records. Government agencies, on the other hand, have the
Page 12 of 44
ability to see this information and take it into account during the licensing process. The only way for a
vehicle-for-hire driver to undergo this type of check is if a government body acts as a regulatory
authority.
TNCAssertion: Commercial criminal history checks are true national checks.
Fact: Commercial criminal history companies represent themselves as conducting nation-wide checks.
They claim that these checks are national in scope because they search county courthouse records in
combination with multi-state databases. Commercial background check companies use non-biometric
identifiers, such as the applicant's name, social security number, and date of birth, to identify past
counties of residence. The commercial background check provider then searches the records for these
counties. They do not search the records of all counties for all applicants. A crime committed in a county
in which the applicant did not reside may go unreported.
The commercial multi-state databases used to supplement these piecemeal county checks are also not
truly national in scope. The "national criminal search" conducted by Hirease, one of Uber's commercial
background check providers does not cover Delaware, Massachusetts, South Dakota, and Wyoming. The
"state criminal records search" conducted by Sterling Infosystems, Lyft's commercial background check
provider, does not cover California, Louisiana, Mississippi, or Wyoming. These gaps lead to serious
According to the District Attorney's Office in San Francisco, Uber's background check approved a driver
who was convicted of felony exploitation of children in Wyoming on November 7,2005.
Page 13 of 44
Exhibit III: What does the U.S. Attorney General Really Say
about Criminal History Checks?
Page 14 of 44
What Does the US Attorney General Really Say About Criminal History Checks?
Background
The City of Houston believes that, to the greatest extent possible, regulations regarding the use of
fingerprint background checks vs. name-based or other background checks should be based on empirical
data and objective facts. As such, the City extensively researched the efficacy of various criminal history
checks. Although actual data comparing the failure rate of various checks was scarce, the US Attorney
General's Office issued a report in June 2006 that,to the City's knowledge, is one of the best resources on
fingerprinting and the efficacy of various criminal history checks.
Being familiar with this report is important not only because it can serve as a guide to drafting better
regulations for public safety, but because marketing materials routinely distributed by Transportation
Network Companies (TNCs) selectively cite the report to imply support for their policy positions. When
read in its entirety, however, the report's conclusions are clear. The Attorney General recommends
expanded use of the FBI data,not less. The report does not recommend the use of private criminal history
databases in lieu of a check conducted by the FBI.
The Importance of Fingerprints
The report consistently stresses the importance of basing criminal history checks on positive biometric
identification, such as fingerprints. Criminal history checks "have generally been required to be
supported by fingerprints in order to substantially reduce the twin risks posed by name checks [non-
biometric checks], which can result in false positives or false negatives. ' A study conducted in Florida
in 1998 confirmed this risk. The study"found that based on name checks alone, 5.5 percent of the checks
produced false positives and 11.7 percent resulted in false negatives. These results would have translated
into large absolute number of false positives and false negatives if the 6.9 million civil applicant
background checks processed by the FBI in 1997 had been processed by...name checks alone."" Due to
this risk,the report officially recommends that"checks should be based on fingerprints.'"
Commercial Criminal History Databases
Although commercial criminal history databases can act as a valuable supplement to a check conducted
through the FBI database,the report identifies several shortcomings that make them unsuitable as the only
source of criminal history information. "Searches of commercially available databases are name-based
[non-biometric] and do not provide for positive identification through a fingerprint comparison. As a
consequence, the matching of individuals to a record is not as reliable as a fingerprint check.°" The laws
governing the information available to a commercial database also vary from state to state. "In many
Page 3
Page 25
3 Page 7
Page 53
Page 15 of 44
instances, the criminal history record information available through a commercial check is not as
comprehensive as an [FBI] check because many states do not make criminal history records available to
commercial database compilers. Also, states that do contribute criminal history records to commercial
databases may not do so on a regular basis. As a result, some information in commercial databases may
not be as timely as the information available through the [FBI]."'
The FBI Database
The report acknowledges that no criminal history database is perfect. The report finds, however, that
"nevertheless, the [FBI database]...is the most comprehensive single source of criminal history
information in the United States, and provides users, at a minimum, with a pointer system that assists in
discovering more complete information on a person's involvement with the criminal justice system."" At
no point does the report advocate for using a commercial background check database in lieu of the FBI
database. In fact the report officially recommended that access to the FBI's criminal history information
be offered to private employers. The Office of the Attorney General "think[s] that the fingerprint-based
criminal history information maintained by the FBI and state record repositories should be one of the
authorized sources of information for this purpose, as system capacity allows.'" Ultimately the report
recommends increasing the use of the FBI database, not replacing it.
Conclusions
The report acknowledges that both the FBI database and commercial databases have a role to play in
conducting criminal history checks. "A check of both public and commercial databases and of primary
sources of criminal history information such as country courthouses would, perhaps, provide the most
complete and up-to-date information."" The value of the FBI database, however, is not contested by the
report and at in no way can the report be construed as advocating a minimized role for the FBI database or
for fingerprinting. Because governmental agencies are the only organizations with complete access to the
information in the FBI database, it is important that regulatory bodies require this check of anyone who
intends to provide transportation service to the general public.
5 Page 54
e Page 17
Page 7
e Page 54
Page 16 of 44
Exhibit IV: Excerpt from San Francisco False Advertising
Suit
Page 17 of 44
David F.Capeless
Drrksh Attorney
Bnkshire January 13, 2016
President,MDAA
Marian T.Ryan Senator James B. Eldridge, Chair
Dist ict Attorney
Middlesex Joint Committee on Financial Services
Vice President,MDAA State House, Room 218
Jonathan W.Blodgett Boston, MA 02133
District Attorney
EOeter
Representative Aaron Michlewitz, Chair
District Attorney
Daniel F.Conley Joint Committee on Financial Services
Suffolk State House, Room 254
Timothy J.Cm Boston, MA 02133
District Attorney
Plymouth
Dear Chairman Eldridge and Chairman Michlewitz,
Joaeph D.Fwly,Jr.
District Atlomey
Worcester I write on behalf of the Massachusetts District Attorneys to support House bill 3351, An
Mthony D.Gulluni Act Establishing Department of Public Utilities Oversight of Transportation Network
Hamtel„Harney Companies, but with one amendment - fingerprinting. The District Attorneys are
Michael W.Monoey concerned about the lack of regulations and oversight of so called transportation network
District Attorney companies (TNC), such as Uber and Lyft. As the popularity of these TNCs increases, so
Norfolk
Michael O'Keefe does the risk to the customer utilizing their services.
District Attorney
Cope b,slo„d, Public safety mandates that drivers for these companies pass a stringent screening
David E.Sullivan process which includes fingerprinting and a review of not only Massachusetts Criminal
Dstnct Attorney
se'.
Northnusrern Offender Record Information, but also out of state records. It is incumbent upon the
Thomas M.Quinn In government to protect innocent passengers from becoming victims in this quickly
Di,t,ietAttorney growing industry of TNCs.
Bristol
Tara L.Maguire If you have any questions or concerns, kindly do not hesitate to contact me.
Exeeutiw Director
Sincerely,
David F. Capeless
Berkshire District Attorney
President, Massachusetts District Attorneys Association
Page 18 of 44
DMEP
STRATEGIC
CONSULTANTS, L.L.C.
July 28, 2015
Mayor Ivy Taylor and Members of the City Council of San Antonio:
Let me introduce myself. My name is Alonzo "Al" Pena. I retired as Deputy Director of
the Immigration and Customs Enforcement which is a part of the Department of
Homeland Security in December of 2010. 1 was with ICE since its creation and before
that I served 16 years US Customs. I began my law enforcement career with the Texas
Department of Public Safety in 1982.
During my career in law enforcement I have had numerous opportunities to see how
Cartels and other similar groups infiltrate their operations into the United States. One of
the preferred methods is falsification of identifications. I have seen how Cartels have
utilized forged passports and driver's licenses to provide cover for their members.
Biometric fingerprinting undertaken by police departments, also known as 10 print, is in
my opinion the only viable method of screening individuals to confirm their identity and
determine if the individual has any prior criminal history. Private companies who
perform this same fingerprint or background check, unlike a City police department, do
not have access to law enforcements data bases. Consequently critical information
regarding past criminal history is omitted. Additionally, use of police departments to
conduct the fingerprinting can serve as a deterrent against drivers with prior convictions,
or individuals with false identities from applying and thereby adding a further level of
security to the process.
Use of law enforcement database fingerprint search avoids any possibility of falsifying
identities and misidentification of individuals. When the fingerprint check is performed
by a city police department, a police officer or certified technician is personally
supervising the fingerprinting process and signs the fingerprint card attesting to having
been present during the fingerprinting process. In a private setting there is no verification
as to how the process is conducted or whether the fingerprints submitted for analysis are
those of the individual being screened.
Use of name only background checks such as the Immigration Services "e-verify" and 1-9
verification is insufficient. It leads to abuse of the system, presentation of fraudulent
documents and no system of independent verification. This is exactly the type of system
criminal organizations and terrorist groups look for. They can provide their members
with false identities and have them sign up as drivers for companies such as UBER and
Lyft who do not use law enforcement background checks.
Given the recent rise of organized criminal activity and self-styled religious terrorists in
this country it is imperative for every city to have a system that verifies the identity of all
public transportation drivers. These individuals travel the streets of our cities daily. It
would be very easy for any cartel such as MS-13 or religious fanatic groups to hide in
10205 Oasis St.Ste. 320, San Antonio Texas 78316
202-657-8218
Page 19 of 44
DMEP
STRATEGIC
CONSULTANTS. L.L.C.
plain sight posing as a driver for these companies knowing that the true identity of the
driver is unknown to law enforcement officials because the identification documents used
are false and the screening system was not designed to verify the authenticity of such
documents.
As a career law enforcement officer at the State and National level, I recommend that any
background check of any transportation company operating on city streets be subject to a
fingerprint check performed by a City police department or other law enforcement
agency to ensure the accuracy of the screening and provide law enforcement with an
accurate data base of transportation drivers in the city.
Sincerely
A&Y P-44
Alonzo R. Pena
President& Founder
10205 Oasis St. Ste. 320,San Antonio Texas 78316
202-657-8218
Page 20 of 44
GeW International
Biometrics+Identity
Association
Uber and Lyft: Fingerprint-Based Criminal Background Checks Essential to
Assure Public Safety
Overview
The issue of public safety protections at Uber and Lyft is generating a great deal of debate and
controversy, specifically in connection with their policies against fingerprint-based background
screening.
In a study, the Society for Human Resource Management found that 87%of all businesses
perform background checks in hiring decisions.' Either or both of the following techniques are
commonly used:
• A name-based background check (or biographic check) searches the applicant's reported
name
against relevant databases, comparing records that have the same name.
• Fingerprint-based background checks (or biometric checks) use the fingerprints of the
individual to match against a law enforcement database, comparing records that have
the same print (even if the names are different).
Uber and Lyft clearly prefer to only use name-based background checks, and exclude fingerprint
based background checks from their driver qualification process. (A notable exception is New
York City, where fingerprint-based background checks are required and Uber has declared its
intention to remain for the long term.)"
Elsewhere, both Uber and Lyft have fought strongly against the efforts to require fingerprint-
based criminal background checks, claiming that they are unnecessary, onerous, ineffective,
and intrusive.
Uber and Lyft's stance is in sharp contrast to the widespread and growing use of fingerprint-
based background checks. These checks are now required for employment in a wide variety of
professions that involve the safety and security of the public, access to sensitive information,
unescorted access to restricted areas, or unmonitored access to vulnerable populations.
A wide range of employees are required by local public safety statutes to undergo fingerprint
background checks, including taxi drivers, airport workers, teachers, real estate professionals,
mortgage brokers, security guards, day care workers, home health aides, nurses, government
employees, and even most school volunteers.
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2 1 June 13,2016 1 Uber and Lyft: Fingerprint-Based Criminal Background Checks Essential to Assure Public Safety
Uber and Lyft's opposition to fingerprint-based background checks unfortunately comes at a
high cost to public safety. The record of safety incidents involving the two services continues to
grow. In the latest high-profile incident, an Uber driver who had passed the company's
biographic screening procedure was later discovered to be a twice-convicted felon with an
outstanding warrant."' These incidents have prompted state, local, and national governments
around the world to consider mandating fingerprint background checks for Uber and Lyft
employees in the interest of public safety.'
Rather than comply, Uber has pulled out of cities that require such checks and threatened to
pull out of cities that are considering such measures. Uber has already abandoned service in
Galveston and Corpus Christi, and has said that it will leave Miami, Houston, and other localities
if full background checks are mandated.v
Uber and Lyft recently poured millions into a proposition to repeal an Austin ordinance that
would require fingerprint checks for drivers from both companies"' Notwithstanding a great
deal of publicity and an aggressive campaign, the proposition was resoundingly defeated by
voters.""As a result, Uber and Lyft have also stopped operating in Austin. Almost immediately
thereafter, RideShare Austin, an innovative tech and communityjoint project emerged, which
has already indicated that it will abide by fingerprint background check requirements in the
interest of public safety.v"'
Uber and Lyft continue to actively campaign against fingerprint-based background check
requirements in the United States and abroad."
The Need for Substantive Debate
While the political battle over fingerprint background checks for Uber and Lyft drivers continues
to escalate, little attention has been focused on the core reasoning of their position.
As a non-profit trade association representing the identity and biometrics industry, the
International Biometrics+ Identity Association (IBIA) seeks to set the record straight about the
value and efficacy of fingerprint-based criminal background checks. Only a rigorous and
comprehensive background check that includes a search of FBI and state fingerprint-based
systems, in addition to other potential sources of biographic background information, will
provide Uber and Lyft with all the necessary information to most effectively protect the safety
and security of their passengers.
By providing policy-makers and the public with an understanding of fingerprint background
checks and the reasons that they are a key addition to biographical data checks, IBIA hopes to
shed light on the safety and security importance of requiring Uber and Lyft to employ these
background check tools.
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3 1 June 13,2016 1 Uber and Lyft: Fingerprint-Based Criminal Background Checks Essential to Assure Public Safety
Fingerprint background checks are highly accurate and reliable. The technique has been used
worldwide for decades to provide governments and employers the most comprehensive link to
past criminal behavior. Uber and Lyft driver applicants can conveniently access hundreds of
service provider facilities throughout the U.S. for fast collection of all ten electronic fingerprint
images. Fingerprint collection service facilities are especially prevalent in the large urban areas
where Uber and Lyft operate. In IBIA'S view, their business model does not justify exemption
from measures designed to protect public safety and security of the people they serve.
Fineerarint matching is extremely accurate and reliable
Fingerprint background checks through local, state, and federal criminal files are the gold
standard for public and private employers who wish to determine if a prospective employee or
contractor has had disqualifying criminal activity. The accuracy and reliability of these checks
has been tested and proven over decades of use around the world to assure public safety and
security. The prospective employer is provided with critical information on which to base an
informed decision to hire.
Fingerprint checks are used for identification at international borders, in law enforcement
applications, and in government and civil background check procedures because they offer a
simple and the most accurate method to determine if a subject has a criminal history.
INTERPOL, the FBI, and law enforcement authorities around the world use fingerprint
submissions for both civil background check and criminal investigations.
Ten-print fingerprint searches of the FBI's Next Generation Identification (NGI) database are
very accurate. The FBI reports automated true match accuracy rates of over 99.6%.1 Over a
decade ago, the Department of Homeland Security's IDENT database was already reporting
automated match rate accuracy of 99.5%against a database of millions of records."'
On its website, Uber asserts that "a person's skin may smooth with age or use, or the prints
may get smudged during the process."' This allows people with criminal records to pass
a...background check because their prints have changed from when they were arrested." Uber
also claims that many low quality prints must be manually reviewed by examiners, whose
record of matching is of dubious value.
Fingerprint collection technologies and matching algorithms are highly accurate and reliable,
and continue to improve. The National Institute of Standards and Technology(NIST) and
international standards bodies have designed proven frameworks for fingerprint accuracy
matching that provide scientific rigor to the field. The widespread deployment of fingerprinting
systems around the world has brought the technology to a point where even damaged or hard
to read fingerprints can be accurately matched without any human intervention.
The advent of automated identification electronic collection and matching has dramatically
improved the sophistication of fingerprinting systems. The typical fingerprint collection process
is now entirely electronic, leaving no ink or paper to smudge or distort the fingerprint image.
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4 1 June 13,2016 1 Uber and Lyft: Fingerprint-Based Criminal Background Checks Essential to Assure Public Safety
The FBI and state law enforcement agencies have converted their old fingerprint cards into
digital records.
Electronic fingerprint collection devices also alert the operator to a poor quality capture
immediately, thereby allowing the operator to re-capture high-quality prints while the applicant
is still present to help ensure matching accuracy."" Higher resolution collection devices now
provide a greater level of detail; helping to match against even the most degraded samples.
It is true that poor quality submitted fingerprint images are occasionally rejected by the
receiving law enforcement agency for technical reasons. If a person cannot provide fingerprint
images of sufficient quality due to amputation, burns, or other medical reasons, then other
more labor-intensive protocols are applied to complete the background checks. However, such
instances would be rare.
Name-based background checks are inherently vulnerable
Background check systems are only as good as the information against which they search.
Errors or deliberate misrepresentations in biographic data (such as deliberate misspelling,
switched first and last names or unknown dates of birth) are commonplace.
The critical advantage of fingerprint background checks is that they can foil an attempt to use
false or misleading biographic information to avoid detection. Fingerprint-based searches are
based not on what applicants claim about their identity, but what their identity actually is.
These searches provide gil names (aliases) that have been associated with the fingerprints that
were submitted for the search.
Criminal actors utilize false identities to blend into society and to commit crimes of opportunity
and, by searching biographic records only, Uber risks exposure to fraudulent applications
designed to thwart the effectiveness of fingerprint database checks. Biographic searches also
contain data entry errors that can eliminate qualified job seekers from conside ration.•iv
Misspellings of names in a biographic-only system can be a serious problem, either because of
entry errors or intended subterfuge. These errors have real consequences. Boston bomber
Tamerlan Tsarnaev's record of transit to Russia was obscured by a misspelling of his name—a
fact that ultimately affected the associated investigation by the FBI.
On its website, Uber says that all applicants undergo a national, state, and local-level criminal
history check that screens a series of national, state, and local databases including the US
Department of Justice National Sex Offender Database (which Uber's own website says is
incomplete) and the PACER database, both of which are name-based.
Uber itself recognizes the vulnerability of name-based checks. A company spokesperson noted
that "a potential driver may have a stolen or fraudulent identity (or)an illegally obtained but
valid social security number that cancels his or her true identity""°
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5 1 June 13,2016 1 Uber and Lyft: Fingerprint-Based Criminal Background Checks Essential to Assure Public Safety
The FBI, state and local law enforcement agencies can search their records on the basis of both
biometric and biographic information. As a result, fingerprint-based background checks are the
only way for employers to obtain a complete view into a prospective employee's criminal arrest
record and to ensure that applicants with criminal arrest records cannot thwart background
checks by providing false biographic information to disguise their identity and background.
Public safety and security is the ultimate reason to perform a background check. Fingerprints
are the common currency of criminal records and are relied on for accuracy and reliability. To
ensure the safety of their passengers, Uber, Lyft and other shared ride services should want to
undertake the most comprehensive and rigorous background checks available and include
fingerprint-based searches in its system. By failing to do so, drivers with a history of drunk
driving arrests, violent crime, sexual assault, child endangerment, fraud and identity theft,
illegal immigrants or drug offenses may be behind the wheel.
Instead, they seek to avoid compliance with law and/or best practice until after actual harm has
occurred and a need has been identified.
Collection of fingerprints is simple and convenient
As biometrically-enabled background checks become more prevalent, a broad spectrum of
companies now offer fingerprint collection as part of their comprehensive background check
services. Given the many new entrants in this field, competition for new business is strong.
Uber claims that collection of fingerprints is a barrier to entry for potential drivers, suggesting
that travel to an enrollment facility for fingerprinting would dissuade prospective new
employees. Fingerprint checks as a part of a rigorous background check may be a barrier to
entry for Uber applicants, but not for the reason that Uber cites. If a potential Uber driver does
indeed have a disqualifying criminal history or outstanding wants and warrants, this can and
should be a barrier to entry.
The FBI and state governments hold regularly scheduled open competitions in which they
certify companies to "channel" biometric information into the relevant databases. These
certified channelers then either open brick and mortar outlets themselves or sub-contract with
other service providers to make fingerprint collection services widely accessible. The average
response time for a civil electronic fingerprint check against FBI holdings is about 1 Yz hours—a
time that can be reduced to around 15 minutes for an additional fee.""
If Uber is concerned that biometric collection is inconvenient, it should partner with a certified
channeler that has the most convenient locations in Uber's markets of interest. There are
currently seventeen certified FBI channelers and hundreds of fingerprint collection centers, and
competition between them is fierce. Given the size of the on-demand economy, channelers are
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6 1 June 13,2016 1 Uber and Lyft: Fingerprint-Based Criminal Background Checks Essential to Assure Public Safety
likely to court this new business vigorously and optimize their systems, if needed, to provide
the rapid results that Uber desires.
In short, there are options that offer the convenience, speed and quality of capture that the
companies desire. Since Uber and Lyft operate in large cities where there are numerous
locations for collection of fingerprints, the fingerprinting process should be convenient for
applicants and give quick results to Uber and Lyft in support of an informed applicant suitability
determination.
This is truly a case where security and convenience are not mutually exclusive.
Continuous vettin¢or"Rap Back" ensures that today's backeround checks remain current
In 2014,the FBI introduced its Rap Back service as part of its new Next Generation Identification
(NGI) system. For Rap Back, civil applicant fingerprints submitted for the initial criminal history
records check are retained by the FBI in their civil master file. If the person is then hired, they
can be subscribed into the FBI Rap Back service by the sponsoring organization for a small fee
($2.25 for two years).
As long as the subscription is active, all criminal activity in the U.S. is compared against that
retained civil fingerprint record. If there is a match, and the criminal activity is included on the
selected list of"triggering events", the FBI will immediately send a notification to the
sponsoring organization along with an updated criminal identity history summary, also referred
to as a record of arrest and prosecution or "rap" sheet. This continuous criminal record vetting
service eliminates the dependence on employee self-reporting of their own arrests and makes
it unnecessary for the employer to re-submit fingerprints periodically for a new criminal history
records check.
Uber claims that fingerprint checks fail to find disqualifying information. It notes that "in 2014
at least 600 people in San Diego, Los Angeles, and San Francisco—all cities that require taxi
drivers to [be fingerprinted]—who previously drove taxis failed our background check."I'l In
these cases, Uber claims that its biographic checks uncovered criminal histories and driving
violations that allowed them to disqualify applicants for employment.
It should be noted that the fingerprint-based criminal history check should be viewed as a key
element of a comprehensive background check that includes biographic background searches
and not the single source of information in determining suitability for hire. However, without
knowing specifically what databases are being compared and the timeframes, there is no way
to comment further on the company's claim. For example, depending on the timing of the
query, Uber may be citing a subsequent criminal record that occurred after the initial
fingerprint background check and before the Uber application. In short, Uber's claim says
nothing about relative accuracy or reliability.
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7 1 June 13,2016 1 Uber and Lyft: Fingerprint-Based Criminal Background Checks Essential to Assure Public Safety
Background checks merely Provide the means to inform hiring decisions
Fingerprints are color blind and automated fingerprint-based background checks do not
discriminate against any group. A fingerprint background check is a tool used to find
information. Once derogatory information is identified and connected to a person, the
requestor must process and adjudicate the information result appropriately. Employers will
then assess the results of the fingerprint checks to determine the final employment decisions.
Yet Uber uses the disproportionately high number of criminal records among minorities as a
reason not to perform background investigations using fingerprints."''' As some biometric
records make their way into databases through mere arrests and booking of suspects rather
than final dispositions of court cases, Uber argues that minorities are more likely to garner a
"hit" in the system that does not necessarily reflect a disqualifying offense. Uber also notes
that some criminal records are never expunged, leaving derogatory information in the system
for so long that subjects are not given the chance to rehabilitate themselves.
In fact, a recent study demonstrates the demographic breakdown of traditional taxi drivers
versus Uber drivers. The findings demonstrate that there are more African American taxi
drivers than African American Uber drivers. It should be noted taxi drivers are subject to
fingerprint and full criminal history checks prior to their employment, indicating that there is no
inherent racial bias on the hiring results based upon the checks xix
To the extent that Uber is concerned about the completeness and accuracy of information in
criminal and civil fingerprint databases, Uber should establish a policy and process for
appropriate review and adjudication of any reported criminal event data, a commonly accepted
process practiced by government and the private sector.
Adjudication staff could review an applicant's criminal identity history summary, or rap sheet,
to determine if derogatory information is potentially disqualifying. If an initial determination is
made that the applicant is ineligible for employment, Uber should consider issuing preliminary
determination of ineligibility letters to applicants, and conduct redress actions, among other
things,to ensure a fair and equitable adjudication process. This would include providing the
driver applicant with an opportunity to dispute any information reported in error that should
be further reviewed with law enforcement or the court system.
Conclusion
Uber has created a business revolution based upon the use of technology. Traditional aspects
of the taxi industry have been replaced with technology in favor of efficiency, customer
satisfaction, cost savings and accountability. It is ironic Uber would prefer an antiquated and
vulnerable process by relying solely on name-based background checks of its applicants.
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9 1 June 13,2016 1 Uber and Lyft: Fingerprint-Based Criminal Background Checks Essential to Assure Public Safety
""'USA Today,"RideAustin offers non-profit altemative to Uber,Lyft",
http://www.usatoday.com/story/tech/2016/05/23/rideaustin-offers-non-profit-altemative-uber-lvft/84788522/
'x Politicker New Jersey,"Former US AG holder says he doesn't support fingerprinting for NJ Uber bill",June 8,
2016,http:/;politickerni.com/2016/06/former-us-aw-holder-says-he-doesnt-support-fingerprinting-for-ni-uber-bill
"FBI,"Next Generation Identification", https://www fbi gov/about-us/ciis/fingerprints biometriesingi
Research Gate,"Matching Performance for the US-VISIT IDENT System Using Flat Fingerprints",
ltttps://www.researchgate.net/publication/242592707 Matching Performance_for the US-
VISIT IDENT System Using Flat Fingerprints
x"Uber,"Details on Safety at Uber", July 15,2015, https://newsroom uber com/details-on-safetv/
x"'According to IBIA's contacts,around 3%of all submissions to FBI databases are rejected,and the vast majority
of that 3%consists of poor quality prints which can be rectified through a simple resubmission of higher quality
prints.
x"See New York Times,"Accuracy in Criminal Background Checks",August 9,2012,
http:i/www.nvtimes.coni/2012/08/1 0,,opinion/accuracv-in-criminal-backyround-checks.htmI
x"Los Angeles Times,February 22, 2016,"Kalamazoo shooting: Here's how Uber does its background checks",
http://www latimes com/business/technolo"/[a-fi-tn-uber-background-check-20160222-story htm]
See FBI NGI Monthly Fact Sheet at www.fbi.povabout-us/c is/fingerprints biometrics'ngi
Uber,"Details on Safety at Uber",July 15,2015,httRs;//newsroom.uber.com/details-on-safety/
Uber,"Details on Safety at Uber",July 15,2015,httos://newsroont.uber.com/details-on-safety/
x'xhttps://www google com/search?p=taxi+driver+demographics&tbm=inch&tbo=u&source=univ&sa=X&ved=oahU
KEwizir740a LNAh UKWz4KHcH EDRSQsAQIaA&biw=1920&bih=911#imgrc=UpucsGzCN4g U8M%3A
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Page 28 of 44
A new law would thwart Uber's quest to
allow more drivers at Logan Airport
The ride-for-hire service has still been able to dispatch drivers
despite a Massport ban
An Uber driver's vehicle. —Jeff Chiu/AP
By
Adam Vaccaro
March 24, 2016
One of the provisions of a proposed law seeking to regulate Uber and similar ride-for-hire
services in Massachusetts would ban drivers from picking up passengers at Logan International
Airport for five years.
The ban is one of Uber's several gripes with the bill, which the company has expressed in media
appearances and a blog post. But if enacted, it would change nothing about how Uber currently
does business at Logan. That's because Logan's overseer, Massport, already restricts most Uber
drivers from picking up riders at the airport—and the transportation service has still been
able to dispatch drivers to pick them up anyway.
Advertisement
Today you can indeed step off a plane and summon an Uber ride home. That system would be
preserved even if the five-year ban took effect. So why is Uber upset?
Cementing the ban with the new law would thwart the company's attempts to get rid of the
existing Logan ban and open the airport to more drivers, which is something it has been fighting
for.
"That's something that we've been hoping to achieve since we've been here, and something we
would very much like to find a way to make possible," said Meghan Joyce, Uber's east coast
general manager, who acknowledged there would be no functional change to how the company
currently does business at Logan under the proposed law.
How is Uber able to offer rides from the airport, despite the existing restrictions?
Uber's most ubiquitous service is its lower-cost "ride-share" service, UberX, which allows just
about anybody with a car to apply to become a driver and offer rides in a personal, non-
commercial vehicle. However,the San Francisco-based company also offers more expensive
services that connect riders with licensed livery vehicles, like black car services.
Page 29 of 44
To pick up passengers at Logan, Massport requires that commercial transportation services must
be licensed as a livery vehicle and registered separately with Massport. That means UberX is a
no-go at Logan, but the livery services offered through the app are fair game.
Advertisement
So when an Uber user calls for an UberX ride at the airport, the alert only goes out to the
licensed livery vehicles and riders are directed to head to their terminal's limousine lot to meet
their driver. At its own discretion, Uber allows those licensed drivers to charge riders at
the UberX rate for what is usually a more expensive ride.
From the rider's perspective, it's still a trip from the airport summoned through UberX and
served at an UberX rate—though there may be a wait because of the limited supply of properly
permitted drivers. The arrangement was explored last year in a resort from CommonWealth
magazine.
The proposed law would keep the same system in place. The five-year ban would apply to
UberX drivers, but licensed livery drivers could still pick up riders at Logan. (Uber's chief
competitor Lyft, which also opposes the bill, does not connect riders with livery services, so it
cannot currently pick up any riders at Logan.)
Massport spokeswoman Jennifer Mehigan said there have been no significant conversations with
Uber about opening the doors to UberX drivers.
Joyce said allowing UberX drivers to pick up at the airport would result in shorter wait times for
riders as they disembark from airplanes. Plenty of UberX drivers are already on-premises at
Logan on a daily basis because they can drop riders off there. But since they are not allowed to
pick up, they leave Logan with empty backseats. Uber currently charges riders an extra$3.50 fee
for trips to Logan as an "incentive" for drivers who figure to leave without picking up a new
fare.
Advertisement
"There is a dramatic difference in availability and liquidity of rides at airports that have ride-
sharing available and those that don't. You might notice, when you touch down at Logan
Airport, the ETAS to get UberX are significantly longer, if you see an UberX at all, than you see
at [other airports]," Joyce said. "And that's because our ride sharing product isn't allowed."
Needless to say, more rides out of Logan would also mean more money for Uber.
At other airports in the U.S., Uber has reached agreements that open the gates for UberX in
exchange for per-trip fees, similar to a fee incurred for taxi rides from the airport. The taxi
industry, which believes the bill does not go far enoueh in regulating Uber and Lyft, would stand
to benefit the most from the five-year ban.
Page 30 of 44
The Logan ban is far from the only issue Uber has with the bill, which passed in the House
earlier this month and is now awaiting action and possible changes from the Senate.
Uber doesn't like a similar pick-up ban in the bill at the Boston Convention and Exhibition
Center.Nor does it support requirements that all UberX drivers undergo a certification through
the state's Department of Public Utilities and notify their personal insurance agencies that they
are driving for Uber. The company also hopes the Senate will scratch a stipulation
restricting ride-for-hire companies from raising fares during states of emergency, like blizzards.
Each of those would represent a change to how Uber operates in Massachusetts today.
But the Logan ban is the only provision Uber disapproves of simply because it would preserve
the status quo, rather than change it.
Page 31 of 44
Uber hit with restrictions for Newark
Airport, Elizabeth train station pick-ups
Taxi drivers celebrated outside Elizabeth's city hall Tuesday after the council voted to ban ride-
hailing companies from Newark Liberty International Airport's Terminal A and both Elizabeth
train stations. (Courtesy of Wendy Zuniga)
Marisa lati I NJ Advance Media for NJ com
ABy Marisa lati I NJ Advance Media for NJ com
Email the author I Follow on Twitter
on May 11, 2016 at 8:1 0—AM, updated May 11, 2016 at 5:04 PM
ELIZABETH —The city council on Tuesday voted to forbid ride-hailing companies from
operating at Newark Liberty International Airport's Terminal A and at both Elizabeth train
stations.
The mayor, though, has said the city would not administer any ban on Uber and similar services
at the terminal, which rests on land owned by the Port Authority of New York and New Jersey.
After the agency argued it had sole jurisdiction over the terminal's operations, Mayor J. Christian
Bollwage said the ordinance was "unenforceable" as written.
The council forged ahead to approve the ordinance unanimously Tuesday, eliciting cheers and a
standing ovation from dozens of taxi drivers who showed up to the meeting in union t-shirts.
In addition to restricting ride-hailing companies'pick-up locations, the ordinance
obligates companies and drivers to pay fees, and it requires a police investigation and three
references for each driver.
Council president Nelson Gonzalez said the regulation aims to increase public safety and the city
is obligated to protect its residents.
The ordinance is "symbolic," he said, even if the ban at the airport terminal is unworkable. He
added that he thought the Port Authority's position was unjust.
"We have an ordinance, and we have state laws, regulating taxi cabs, limousines and many other
forms of transportation at the airport for many years," Gonzalez said. "Something doesn't seem
fair about this to me."
Elizabeth votes to regulate Uber The city council on Tuesday approved an ordinance that bans
ride-hailing companies from Newark Liberty International Airport's Terminal A and both
Elizabeth train stations. 5/10/2016 (Marisa lati I NJ Advance Media
Page 32 of 44
As for the fees the ordinance imposes on ride-hailing companies and their drivers, he noted that
Uber is worth $40 billion.
"If Uber decides they don't want to pay the annual licensing fees and ensure adequate liability
coverage for the vehicles used to transport passengers and [they] leave, they will do so of their
own volition, not because we're chasing them out," he said.
After the meeting, taxi union representative Hector Corchado said the council "sent a message to
the world"by choosing to regulate ride-hailing companies.
N 1 .i.
` M t
C
Uber can still pick Lip at airport terminal:N.J. mayor
The Port Authority told city officials Tuesday that Elizabeth has no jurisdiction over Terminal
A's operations.
Uber spokesman Craig Ewer said the company was disappointed by the outcome and hoped the
state legislature would soon develop consistent regulations across New Jersey.
"We will be reviewing our options as this ordinance is considered by the mayor for approval,"he
said.
The state legislature focused its attention on ride-hailing companies Monday, when Sens. Paul
Sarlo (D-36)and Joseph Kyrillos(R-13) introduced a bill that would implement consistent
regulations across the state.
The proposal includes a requirement that each driver undergo a background check and have $1.5
million in liability coverage. The bill would also enable the state Motor Vehicle Commission and
the Division of Consumer Affairs to examine ride-hailing companies'records to make sure they
are acting legally.
Page 33 of 44
What happened to Austin,Texas,when Uber and Lyft left town-Busines... http://www.businessinsider.com/what-happened-to-austin-texas-when-ub...
BUSINESS
INSIDER
What happened to Austin , Texas, when Uber
and Lyft left town
HARTMANS
JUN. 1
JUN. 2,2016,8:30 AM
You've probably heard the news by now:
Uber and Lyft have left Austin.
The ride-hailing companies suspended
operations in early May after voters upheld
strict regulations on the companies and
their drivers—specifically,
fingerprint-based background checks,a
requirement that cars must be clearly
marked with the companies'logos,and
rules on where drivers can pick up and
drop off passengers.
But it's what's happened in the aftermath of
the two companies leaving town that
should make Uber and Lyft take notice.
a7/R�
Crowdsourced
ride-hailing
Arcade City Austin/Request a Ride is a Facebook group that has grown rapidly in the weeks following Uber's
and Lyft's departures.The group,which requires approval to join,is currently populated by more than
33,000 members who use the group to find rides to and from their destinations.Arcade City's rules are simple:
• Post your request for a ride in the group
• Delete the request once you've been connected with a driver
• Ask for an Uber or Lyft profile if you'd like
• "Be cool to each other."
Arcade City's website describes the service as"an open marketplace where riders connect directly with drivers,"
and an app version is currently being beta-tested by seven drivers in Austin,according to The Guardian.
But for now,the residents of Austin are simply using the Facebook page to connect with someone who's willing to
give them a ride.According to the page,there's no surge pricing,no need to give the company a cut(for the time
being,anyway),and the option to schedule a ride well in advance,a feature Lyft already offers and Uber just
unveiled.
There's also no set format for how and what to pay. Drivers can either set the price ahead of time or riders can
pay whatever they think is fair for the length and distance of the ride.
The advent of this peer-to-peer service has brought about another phenomenon:Drivers offering up their time to
Page 34 of 44
1 of 3 7/28/2016 1:23 PM
What happened to Austin,Texas,when Uber and Lyft left town-Busines... http://www.businessinsider.com/what-happened-to-austin-texas-when-ub...
help out those in need.Solomon Hapshire,a former Lyft driver,transports a blind man to his job as often as
three times a week.
"Sometimes he pays me a good amount,sometimes he pays me[just]what he can,but it doesn't matter,because
I'm helping,"he told The Guardian.
Natalie Williams,a former Uber and Lyft driver,told The Guardian that she recently got up in the middle of the
night to pick up a young woman who seemed like she was in an"uncomfortable situation."Williams took her
home and gave her some advice along the way.
Zipcar and new apps step up to the plate
Ever hear of getme,Fare,Fasten,Wingz,zTrip, RideAustin,or InstaRyde?Austin residents are about to.
The new ride-hailing apps have launched or are set to launch in Austin soon,which means residents may have
even more options for catching a ride if they're willing to try something new.
While some of these apps had already set up shop in Austin before Uber and Lyft left town,according to The
Texas Tribune,they'll likely receive more traffic as residents begin looking for new ways to get around—if these
new apps are willing to comply with the city's regulations,that is.
Zipcar isn't missing out on the opportunity of the ride-hail giants leaving town,too.For students at University of
Texas-Austin,Zipcar is offering incentives to join and to rent cars more often. Students at Zipcar s university
partners nationwide—which includes UT Austin—can join for$15,but UT Austin students can now also rent
cars for a discounted rate.According to The Daily Texan,students can rent cars for$9 Sunday through Thursday
from Ii p.m.to 8 a.m.
What this means for Austin's future
Amid all the ride-hailing drama,one key component of Austin's transportation future remains up for grabs:the
city's application for a$go million grant from the US Department of Transportation.Austin is one of seven
finalists in the Smart Cities Challenge,along with Denver,Pittsburgh,San Francisco,Portland,Columbus,
Ohio,and Kansas City.
Part of its application contains a section on transportation-network companies(a name for services like Uber and
Lyft),in which the city says it's going to work toward becoming an incubator for those types of services,
specifically naming some of the new apps springing up around the city.It also knocks Uber and Lyft in the
process:
Unfortunately,Uber and Lyft declined to participate in a community conversation on these issues to
help develop new forward looking government structures,choosing instead to initiate an election
(which they lost)and then to leave town.The invitation for Uber and Lyft to operate in Austin and to
join in the community conversation remains open,even while the City is welcoming new innovation
and models.
So what does this all mean?That Uber and Lyft may have left town,but the city of Austin seems to be doing just
fine without them.
Page 35 of 44
2 of 3 7/28/2016 1:23 PM
Inside the campaign that makes you think
twice about getting in an Uber
Amrita Khalid—
May 10 at 1:00PM Last u dated May 13 at 2:17PM
>f
' 0
■ ■ rT
•
Do you know who's driving you?
This story is part of a series of features, The Future of Ride-Hailing. The project is intended to
show how the taxicab industry, with varying degrees of success, is pushing back against the
existential threat posed by the rise of ride-hailing services like Lyft and Uber.
Four days after an Uber driver in Kalamazoo, Michigan, shot and killed six people, Dave Sutton
is working overtime. Sutton is the spokesman of Who's Driving You,a campaign funded by the
taxicab industry to shed light on Uber and Lyft's background checks for its drivers. While the
shooter, Jason Dalton, had a clean criminal record, meaning a background check wouldn't have
done anything to prevent his tragic shooting spree,the event brought national attention to his
organization's two-year-long behind-the-scenes PR battle.
ADVERTISING
inRead invented by Teads
"For-hire drivers are trusted with a different level of responsibility," Sutton says at a coffeeshop
in the D.C. neighborhood of Tenleytown. "They're similar to day care providers or childcare
Page 36 of 44
providers. Their customers are vulnerable. The drivers have control of the vehicle. Often,their
passengers are alone. They may be slightly inebriated. It may be late at night, or they may be in a
strange part of town. And during all of this, the driver has control of the vehicle."
Who's Driving You isn't exactly a passion project for Sutton. The 40-something PR executive is
employed by Melwood Global, a crisis communications firm based in Bethesda, Maryland,
whose clients include state attorney general campaigns, the Democratic National Convention
Committee, and the U.S.-Azerbaijan Chamber of Commerce. Knowing that it can't compete with
Uber and Lyft on pricing, vehicle availability, or the recruitment of drivers, the taxi industry has
rallied behind the one advantage it believes it has:public safety. The Taxicab, Limousine and
Paratransit Association TLPA , the oldest taxi industry group in the nation,enlisted Melwood
Global to shift the narrative around ridesharing and bring its message to the masses.
As the public face of Who's Driving You, Sutton has an encyclopedic knowledge of every sexual
assault, every kidnapping, and every wrongful death linked to Uber and Lyft. Much like an
American Lung Association lobbyist can rattle off the number of deaths linked to Big Tobacco
by demographic, Sutton can tell you about the Uber driver who struck that 7-year-old girl in San
Francisco or that there were nine sexual assaults linked to Lyft and Uber drivers in January
alone. He speaks with the fervor of an advocate for an issue,the safety risks of the app-based
ride-hailing model, he believes the American public is largely ignoring to their peril.
Who's Driving You keeps its public profile decidedly low. It consists of a website, a Facebook
page, and a Twitter account with slightly under 3,000 followers. Some examples of recent blog
posts on its website include "Seven Worst Uber Drivers Ever" and "7 Common Uber
Problems." The campaign has no boots on the ground and no Washington lobbying presence,
despite being located in neighboring Bethesda, Maryland. The Washington Post reported back in
March 2014 that the campaign had a total of four employees, including Sutton. When reached by
email earlier this month, Sutton would not confirm whether that number had changed or answer
any questions about the campaign's day-to-day activities.
Slowly but surely, however, Who's Driving You has forced the issue of public safety into the
national debate about ridesharing. As the ride-hailing services continue to expand, Sutton and his
camp argue it's necessary to hold Uber and Lyft drivers to the same stringent screening process
undergone by taxicab drivers in most major cities, and the effectiveness of their efforts might
determine the future of ridesharing.
Are taxis really safer than Uber?
Is riding in a thoroughly vetted taxi safer really safer than riding in an Uber or Lyft? The
question is at the heart of the taxi industry's very survival, but the answer has remained
surprisingly elusive. To date, there's been very little data comparing the two modes of transit.
Accuracy rates for FBI fingerprint background checks have been estimated at 99 percent.
While a sexual assault by an Uber driver in any city make national news,the same can't be said
for a sexual assault by a local taxi driver. Few police departments collect statistics on cab-related
Page 37 of 44
crime to begin with. The Atlantic in March 2015 found that the police departments of five major
cities—Boston, San Francisco, Chicago, New York, and Washington, D.C.--didn't
independently classify violent crimes that occurred in Uber, Lyft, and taxis. New York Police
Commissioner Bill Bratton said there was an increase of stranger rapes by taxi drivers in 2015
compared to previous years, but both Uber and Lyft drivers were included in the total count.
According to a document compiled by the city of Austin, in 2015 Uber drivers were allegedly
involved in 13 sexual assaults and one rape. Taxi drivers were involved in five sexual assaults;
and Lyft drivers, six. One sexual assault was listed as Uber or Lyft.
Experts argue that given the lack of consistent data, it's important to focus on which entity has
the safest process.
In the United States, a variety of professions, from government employees to nurses, mandate
fingerprint background checks, which cross-reference a person's fingerprints against those in
local, state, and federal criminal databases. Such biometric background checks are required for
taxi drivers in most major U.S. cities due to the responsibility cab drivers have for their
passengers' safety. Experts say that running a search on a person's fingerprints, as opposed to a
person's name, ensures a person who shares the same name with a criminal won't come up as a
false positive, or a criminal who uses multiple aliases or a fake name won't pass unnoticed. Most
taxi regulators, such as those in New York City, Los Angeles, and Washington, D.C., also
require federal criminal background checks that go back to when an applicant is 18 years old.
By contrast, both Uber and Lyft use background checks conducted by private companies, which
rely on an applicant's name, social security number, motor vehicle records, and other personal
information. Lyft spokeswoman Chelsea Wilson noted in an email that the company does not
operate in any city that would require it to fingerprint its drivers. Likewise, Uber pointed out in a
blog post that manual error and smudged or smoothed over fingerprints due to aging leads to
what it says is an imperfect LiveScan fingerprint process. Fingerprints nowadays are commonly
taken with LiveScan technology, which scans a person's fingerprints, as opposed to the
traditional ink-and-paper method.
Former New York City Taxicab Commissioner Matthew W. Daus said this was a"ridiculous and
defective argument" on Uber's part and pointed to the 11-plus percent error rate of Uber's name-
only check. Accuracy rates for FBI fingerprint_ background checks have been estimated at 99
percent.
"No process is 100 percent, but governments should strive to ensure the most accurate means
available, and saying this does not make their inferior and less accurate name checks more
comprehensive than biometric fingerprints through LiveScan," said Daus.
"Uber's private background checks cannot access the same level of criminal history that
fingerprint based government-conducted criminal background checks can," Sutton added. They
simply cannot."
The push for fingerprinting
Page 38 of 44
Uber and Lyft's vetting process for drivers is under more scrutiny than ever. Nine days prior to
the most high-profile violent crime in Uber's history,the company agreed to a $28.5'million
settlement for a class-action lawsuit over its$1 "Safe Ride" fee and claims that its service was
safer than a taxi cab. In April, Uber settled another $25 million lawsuit brought forth by the
district attorneys of Los Angeles and San Francisco related to its background checks.
The California case, in particular, represented a pivotal victory for Sutton and the taxi industry in
that the state declared that the name-only background checks Uber and Lyft ran on its drivers
were inferior to fingerprint background checks.
"Their priority is to attract new drivers, who may be unsafe and inexperienced, instead of fully
vetted and safer professional drivers."
The most serious flaws in Uber's screening process,prosecutors found, was its lack of biometric
identifiers and the fact that it only goes back seven years. The end-result was that drivers who
used false aliases or had less-recent criminal histories slipped through the cracks of Uber's
screening process. Prosecutors looked at the criminal records of Uber drivers in San Francisco
and Los Angeles and found convictions of sex offenses, kidnapping, assault, robbery, burglary,
fraud, and identity theft that occurred before the seven-year window of Uber's background
check. In the amended complaint by the Los Angeles and San Francisco prosecutors, they noted
that one Uber driver was convicted of second-degree murder in Los Angeles in 1982 and spent
26 years in prison. He applied to be an Uber driver under a different name.
Prosecutors also argued that Uber intentionally misrepresented the thoroughness of its screening
process by making claims that it goes back"as far as the law allows" and that they were
"industry-leading." As a condition of the lawsuit, Uber is barred from using such terms in its
advertising materials. Uber has defended its seven-year window, saying it complies with state
laws intended to make it easier for ex-felons to ease back into the workforce.
Outside of California, the emphasis on public safety is hitting some regions harder than others.
"Currently the safety incidents that happened around ridesharing is adding to the thought and the
notion that maybe there is an opportunity to improve the background check process," noted
Ernest Chapprah,the chair of the D.C. Taxicab Commission, which also has jurisdiction over
rideshare companies like Uber and Lyft. "But we are not at the point that a whole group of
people are asking for it."
Both ride-hailing companies are fighting back against city governments who want fingerprint
background checks, threatening to pull out of cities all together. Uber ceased operations in the
Texas cities of Garland, Midland, and Corpus Christi after the cities voted to require
fingerprinting of Uber and Lyft drivers. Both Uber and Lyft have funneled an estimated $8
million to fight background checks and other regulations in Austin. They are currently
threatening to leave Houston and just pulled out of Austin. After Uber threatened to leave
Newark,New Jersey, following the city's call for drivers to be licensed, the city finally settled
for a$10 million lump sum from Uber.
Page 39 of 44
It's clear the dispute between the taxi industry and rideshare companies over fingerprinting
represents something much larger. Former New York City Taxicab Commissioner Matthew W.
Daus believes it's a calculated decision on Uber and Lyft's part to increase revenue.
"If you really think about it, why would [Uber and Lyft] not just spend around $50-$75 dollars
per driver for a superior government-initiated biometric fingerprint criminal conviction
background check, to better protect the public and insulate themselves from liability?" Daus
asked. "It is because their priority is to attract new drivers, who may be unsafe and
inexperienced, instead of making the extra effort in many markets to recruit fully vetted and safer
professional drivers who currently work for other licensed taxicab and limousines companies."
From Uber and Lyft's perspective, the fight is one of an innovative startup technology that is
popular with consumers versus government bureaucracy. Sutton believes that Uber's defense that
it's a technology company misses the point.
"Uber didn't invent app technology—taxis were actually using it before Uber came along,"
Sutton said. "But at some point, you can place all that aside, and an individual gets into a vehicle
with a stranger. Strangers driving strangers. This is the same business it's been going on for a
hundred years. That's the taxicab business."
Page 40 of 44
SRA Number of Taxi Driver Permit Denials by Category
SUSPENDED LICENSE MULTIPLE CITATIONS POSITIVE DRUG OR ALCOHOL CRIMINAL RECORD DUI
Axis Title
■2014 ■2015 ■2016 Source: Sunline Regulatory Admistration
Page 41 of 44
2016 YTD Reported "Ridesharing Incident Statistics Source:Whosdrivingyou.org
IMPOSTERS
DUI&OTHER OFFENSES
FELONS BEHIND THE WHEEL
ALLEGED KIDNAPPINGS
ALLEGED SEXUAL ASSAULTS
I
ALLEGED ASSAULTS
DEATHS
0 10 20 30 40 SO 60
Page 42 of 44
2015 Reported "Ridesharing" Incident Statistics Source: Whosdrivingyou.org
IMPOSTERS
DUI&OTHER OFFENSES
FELONS BEHIND THE WHEEL
ALLEGED KIDNAPPINGS
ALLEGED SEXUAL ASSAULTS
ALLEGED ASSAULTS
DEATHS
0 10 20 30 40 50 60 70 80
Page 43 of 44
2014 Reported "Ridesharing" Incident Statictics Source:Whosdrivingyou.org
IMPOSTERS
DUI&OTHER OFFENSES
FELONS BEHIND THE WHEEL
i
ALLEGED KIDNAPPINGS
I
i I
ALLEGED SEXUAL ASSAULTS
I i
ALLEGED ASSAULTS
DEATHS
i
0 2 4 6 8 10 12 14 16
Page 44 of 44
Cindy Cairns
From: Revae Reynolds <rreynolds@ PALMS PRINGSOASIS.COM>
Sent: Tuesday, July 26, 2016 3:18 PM
To: Jennifer Nelson
Cc: Cindy Cairns; Scott White;Tim Ellis (timellis@ palm mountain resort.com); Linda Evans
Bender(Linda.Evans@tenetheaIth.com)
Subject: CVB Letter RE: Ridesharing
Attachments: 07.26.16 Moon Rideshare support.pdf
Hi, Jennifer:
Please find attached a letter from the CVB in support of an amendment to current city code having to do with
ridesharing at the Palm Springs International Airport. A hard copy is in the mail to Mayor Moon.
Please share this electronically with the members of Council and City Manager Ready.
Thank you for your help.
Warm regards,
revae reynolds, mpa
executive administrative assistant
greater palm springs convention & visitors bureau
70100 highway 111 • rancho mirage, ca 92270
t: 760.969.1309 • f: 760.969.1371
rreynolds@K)almsr)ringsoasis.com
visitareateroa I msprinas.co m
� `1p�alm springs
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July 26, 2016
Honorable Mayor Robert Moon "
City Council Members P,
City of Palm Springs
9200 E.Tahquitz Canyon Way
Palm Springs, CA 92262
Dear Mayor Moon and City Council Members: r
4:, >
On behalf of the Greater Palm Springs Convention & Visitors Bureau (CVB , we urge you to
create and approve an amendment to the current city code that governs rideshoring
companies at Palm Springs International Airport. With tourism the number one industry in our
valley, it is vital that our destination stays at the forefront of tourism trends, changes and needs, kyr
particularly at Palm Springs International Airport. f
As we are all aware, ridesharing companies such as Uber and Lyff are gaining momentum in all '
regions of the country and are fast becoming a favored option at airports for all ages in terms of
convenience and affordability. In particular, ridesharing companies ore the top choice of our
important millennial travelers. ;
Other major tourism and meeting destinations, including Phoenix Sky Harbor International Airport, I, � .'
San Francisco International Airport, Dallas/Fort Worth Intemational Airport and others have
realized the importance of adding a convenient option for ridesharing and adopted permitting P'
systems that allow the safe and convenient curbside pick-up of arriving passengers.
We encourage the airport to engage the ridesharing companies to ensure their plan is vetted
and designed to optimize the process. The Palm Springs International Airport's excellence ofr'
service can be described in many ways, but the one quality that sets it apart from others is'the
"stress-free" experience it offers passengers,whether vacationing or attending a conference. '.
P 9 9 9 fix,
The CVB sees adopting an option for rideshare curbside service as a crucial part of that i
continuing promise of an easy, care-free arrival.
r
We hope you will agree with us that giving passengers more convenient rideshare options is
imperative for remaining competitive in the tourism industry. Thank you for considering our
concerns.
Sincerely,
hite
President & CEO w
Greater Palm Springs Convention & Visitors Bureau t
Tim Ellis
Chair, CVB Board of Directors r
k
Linda Evans t «t=
Chair, Joint Powers Authority Executive Committee
f e.
70100h9hway 111 • ranchu mirage,ca 92270
h 760.770.9000 • 800.967,3767 f:760.770.9001
visilyreoferpolmsprings.com
qx R>
. A
Jay Thompson
From: Jennifer Nelson
Sent: Monday,August 01, 2016 10:51 AM
To: Jay Thompson; Kathie Hart; Terri Milton
Subject: FW: Approve the plan to allow Lyft at PSP
Additional materials for Item 3A.
Jennifer Nelson
Executive Assistant to Mayor and Council
City of Palm Springs
3200 E. Tahquitz Canyon Way
Palm Springs, CA 92262
760-323-8200
Jennifer.nelson(a,palmspringsca.gov
City Hall is open Monday - Thursday from 8am to 6pm
Closed Fridays
From: Lee Kaplan [mailto:Leekaolan52(o)omail.com]
Sent: Monday, August 01, 2016 9:49 AM
To: Robert Moon
Subject: Approve the plan to allow Lyft at PSP
Dear Mayor Robert Moon,
I have so many customers who want to know why Lyft cannot pick up at PSP. It would be very beneficial for
the city of Palm Springs and the entire Coachella Valley if Lyft could pick up passengers at the airport to further
improve their desert experience. As we continue to grow here in the valley this additional customer service
opportunity would have a positive effect on our tourism industry.
Sincerely,
Lee Kaplan
693 E Arenas Rd
Palm Springs, CA 92262
i
Terri Milton RE
M SPR(t,,,,,
From: Jennifer Nelson Ta�s AUG
Sent: Monday, August 01, 2016 2:01 PM pM 2: 18
To: Jay Thompson; Kathie Hart;Terri Milton LAMES THpMPS,
Subject: FW:Yes to ridesharing at PSP! CITY CLERK
More additional materials...
Jennifer Nelson
Executive Assistant to Mayor and Council
City of Palm Springs
3200 E. Tahquitz Canyon Way
Palm Springs, CA 92262
760-323-8200
Jennifer.nelson a palmsprinesca.2ov
City Hall is open Monday - Thursday from Sam to 6pm
Closed Fridays
From: Parker Thomas [mailto:Parkerrthomas1994@gmail.com]
Sent: Monday, August 01, 2016 1:57 PM
To: Robert Moon
Subject: Yes to ridesharing at PSP!
Dear Mayor Robert Moon,
Having lyft pickups at the airport is a no brainer. It saves the passengers money and helps lyft drivers. The only
people who are hurt are cab drivers, and passengers shouldn't be punished because a dying industry needs to
stay alive.
Sincerely,
Parker Thomas
1374 E Madero Cir
Palm Springs, CA 92262
r
Internet Association
CITY OFECEIVE PALM SPRING::
2011 AUG - I PM 4: 51
JAMES THOHPSO+
August 1, 2016 CITY CLERK
Palm Springs City Council
City Hall
3200 E.Tahquitz Canyon Way
Palm Springs,CA 92262
RE: Internet Association Support of TNC Operations at the Palm Springs International
Airport
Dear Honorable Members of the Palm Springs City Council,
The Internet Association urges your support regarding the expansion of consumer transportation
options at the Palm Springs International Airport Allowing Transportation Network Companies
(TNCs) to operate at local airports has provided cities across the country the opportunity to offer
safe,affordable options to local consumers and visitors alike.
Not only will the traveling public benefit from the addition of more affordable,sustainable airport
transportation options,but airports also realize an entirely new stream of revenue.TNCs have
already been permitted by a number of California airports,including SFO,LAX and John Wayne in
Orange County,and continue to work closely together with airports on new state-of-the-art
technologies that help with traffic flow and management.
Airports gain from innovative TNC technologies that address roadway congestion,increasing
transportation costs,and safety. For example,TNCs pioneered the two-way rating system for
drivers and passengers,and also include an automated review of low-rated riders and drivers.
Additionally,these services offer passengers greater transparency and security because they
provide GPS tracking and trip summary receipts.
For these reasons and more,the Internet Association is pleased to urge your support of expanding
transportation options at the Palm Springs International Airport to include TNCs.Ayes'vote
ensures consumers will have access to more affordable,sustainable,and convenient ground
transportation options.
Should you have any questions about our position,please contact me at(916) 498-3316.
Sincerely,
AcZ
Robert Callahan
Executive Director for California
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Terri Milton
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From: Jennifer Nelson
Sent: Tuesday, August 02, 2016 931 AW -2 PM 3: 34
To: Kathie Hart; Terri Milton; CLERK
Cin
Subject: FW: Bring Lyft to PSP � �n CITY C CLERK sf U
Additional materials please...
Jennifer Nelson
Executive Assistant to Mayor and Council
City of Palm Springs
3200 E. Tahquitz Canyon Way
Palm Springs, CA 92262
760-323-8200
Jennifer.nelson a palmsprinasca.eov
City flail is open Monday- Thursday from Sam to 6pm
Closed Fridays
From: Jim Sample [mailto:irs4755Ca1gmail.com]
Sent: Tuesday, August 02, 2016 11:41 AM
To: Robert Moon
Subject: Bring Lyft to PSP
Dear Mayor Robert Moon,
To my elected officials, I'm writing as an advocate to allow ride sharing companies the ability and approval to
drop and pick up passengers at the Palm Springs International Airport. I became a Lyft driver in June, 2016 for
the purpose of keeping myself busy. I love it!!!! In my brief time as a driver, I've had several riders needing to
go to the airport . My first airport ride I was unaware of the fact that this was not permitted and was quickly
notified by Lyft that what I was doing could have adverse affects on my future as a driver for Lyft. The riders
had no idea that taking a ride sharing service to the airport was not allowed by the city. This was puzzling to all
riders as they used the same service in different cities with no repercussions. As a local resident of Palm
Springs, I do understand the dilemma the council is faced with trying to balance the future with the present and
how to bridge the gap. Perhaps understanding what other cities have done would assist the council in finding a
palatable solution for both sides of the argument. The challenge is to balance the new with the old. As most
solutions go, no one gets everything and every party gives up something. I looked forward to hearing your well
thought out approach to solving this issue. Thank you for your time.
Sincerely,
Jim Sample
3011 Twilight Ln
Palm Springs, CA 92264
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Cindy Berardi
From: Keith Larsen <taxi92240@gmail.com>
Sent: Monday, August 01, 2016 5:09 PM
To: CityClerk
Subject: Michelle Brock about uber in the desert sun article
The three cab companies licensed in the valley will have their own tents mere steps away from the Uber
Lounge, said Michal Brock, general business manager with Yellow Cab of the Desert. The tents, managed
jointly by the cab companies, will offer water and charging stations, she said.
"We're more interested in the transportation service and getting these people back to their hotels and wherever
they want to go," Brock said. "We're hoping there's not going to be much of a wait."
Even with the extra competition, Brock said the cab companies are ready for a positive festival season.
"We have been inundated with passengers in previous years and had trouble keeping up, so I understand the
need to have extra drivers out there," she said, acknowledging that the attention Uber tends to grab as it
continues to expand has raised some concerns.
"I definitely still believe we are the best service out there, and I know that we can show that," she said.
She wasn't worried about background checks and fingerprints back then I think its hypocrite.. I read the article
in the news that she emailed you about Uber rides at the airport I thought you might consider looking at this
article.. I currently Drive taxi but going to drive for Uber.i been going through a background check that's taken
over 5 weeks.. And with the fingerprint, don't they fingerprint you when you get your driver's license?. I know a
few taxi drivers that have switched over to Uber. So what you're going to get is drivers that used to drive Taxi
picking up at the airport... Anonymous taxi driver
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Cindy Berardi
From: Keith Larsen <taxi92240@gmail.com>
Sent: Monday,August 01, 2016 5:47 PM
To: Cindy Berardi
Subject: Re:Automatic reply: Michelle Brock about uber in the desert sun article
Taxi driver: one other thing I want to mention is that sunline Mike jones allowed all these cabs from La to come
out here during coachella and take our business. And welcomed uber.. And local drivers wait all year long for
the busy season.. Also allowed them to work stagecoach, white party, and Dinah Shore weekend.. After that
happened taxi business went downhill from that point.. Some of the drivers had a great living and could take
care of family are homeless.. Or one Step from being homeless. With High lease prices and no business no
more.. I think when you allow Uber to pick up at the airport, the lease prices should be really really really low.
That should be a concern. I am making the switch now like I said going through background check. I think
that's the future and people like is uber.. I see them downtown taking all our lives that we used to have.. Hotels
tell them to take uber. we don't get no more dinner rides. I don't remember the last time I dropped off at Las
consuela's or any restaurants.. Driving taxi cab four years ago was fun now it's depressing.. Sometimes I think
I'm just out there too advertise the taxi companies name. Come out downtown on Arenas and watch the Uber
picking up dropping off on Saturday night for your own eyes... Bless you and make the right decision.. Airport
customer should not have to walk over a block to wait for an Uber ride.. This is all about owners and money...
Drivers stopped making money years ago... Thank you and if you didn't mention this in your meeting that
would be great, let me know. Just keep me anonymous thank you.. Cindy
On Aug 1, 2016 5:09 PM, "Cindy Berardi" <Cindy.Berardi(aapalmsprin¢s-ca.gov>wrote:
> I will be out of the office July 25, 2016, through August 1, 2016, and City Hall is closed on Fridays. If you
need immediate assistance during regular business hours,please call the main line at(760) 323-
8204. Otherwise, all emails will be responded to when I return on Tuesday, August 2, 2016. Thank you.
t
Cindy Berardi
From: Jennifer Nelson
Sent: Wednesday,August 03, 2016 1:34 PM
To: Kathie Hart; Cindy Berardi;Terri Milton
Subject: Fwd: My Opinion
From: Carlos Avalon [mailto:carlosavalonCalaol.com]
Sent: Wednesday, August 03, 2016 12:32 PM
To: Ginny Foat
Subject: My Opinion
Dear Councilmember Foat:
A few items I'd like to give my opinon on as a resident-voter-activist.
1. Uber/Lyft to Airport: NO! We need to protect our traditional Taxi industry.
2. Marilyn Monroe coming back to downtown park: YES YES YES! Whatever it takes.
3. Transition of Apartments to Short-Term rentals: NO NO NO!
4. 400 homes at the old Palm Springs Country Club: NO! The moment our city's population reaches
50,000 we will not be the Village we all love and moved here for.. more traffic... etc. etc. I DO
SUPPORT all housing projects already approved, but not new ones. I think we need a bit of a freeze
on this growth. I also support hotel growth because it keeps us as a resort destination going strong.
Guess what I'm saying is that I love having 100,000 tourists in town any weekend, but not 100,000
official residents.. lol I must add that I support affordable housing and glad to know you went to La
Vern and are looking at projects like that for us here.
Thanks for your fine work and allowing me to give my little input.
Carlos
Carlos Avalon Music
AvaSon Entertainment
P.O. Box 796
Palm Springs, CA 92263 USA
Office Phone: 209.832.8320
Cell: 760.408.5577
www.carlosavalon.com
facebook: Carlos Avalon
YouTube: ThislsCarlosAvalon
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for-hire-vehicle-safety-chart-feb20l6.png(PNG Image,3200 x 3592 pixe... http://www_whosdrivingyou.org/wp-content/uploads/2015/04/for-hire-ve...
FOR-HIRE VEHICLE SAFETY CHART
(Ansvters may vary according to city)
uberX Lyft Taxicab Limousine
Police-conducted offenses,
criminal background • •
check for all offenses, including Violence,
Sexual Assault, Reckless Driving, DUI,etc It X
Independent Vehicle Safety Inspections It � • .
conducted by public authority
Passengers,s covered t es,all andtimes
innocent • •
bystanders covered at all times with
commercial auto liability insurance It
Fares are regulated to prevent price-
gouging during emergencies, holidays, • •
and peak traffic times It 39
Service required in all areas a city, X 3 • 39
including low-income neighborhoods
Fares are charged a metered •
rate based on time and distance
with inspected meters
19
Wheelchair-accessible vehicles required
to serve members of disability community 39 X • It
when needed
Source:Ta)dcab, Limousine&Paratransil Association(Feb 2016)
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