Ontario PCs seek to regulate Uber, AirBnB and the sharing economy province-wide

Nationalpost.com
Oct. 27, 2015
By Ashley Csanady

An Ontario MPP wants to create one set of rules to govern popular apps like Uber across the province.

Tim Hudak, the former leader of the provincial Progressive Conservatives, wants to create province-wide guidelines for ride-sharing services such as Uber, home-sharing websites such as AirBnB and HomeAway and the growing number of parking-spot sharing apps, such as the Toronto-made Rover. Should the bill pass, Ontario would be the first province to regulate the sharing economy in Canada.

The move comes as cities across Ontario struggle to adjust to the massive increase in riding-sharing services to compete with traditional taxis and growing concerns about people renting their homes in the short-term and the implications for zoning, bylaws and other considerations.

The goal, Hudak said, is to clarify the rules for everyone to make it easier for families to make extra money off their existing assets.

“This kind of uncertainty we have across the province today doesn’t help anybody,” Hudak said as he unveiled the Opportunity in the Sharing Economy Act, which see second-reading debate on Thursday. “ ... We can’t put off this conversation any longer, so let’s get going,”

The bill, if passed, would:

• Regulate both riding-sharing companies and their drivers. Companies would be required to post clear rates, allow feedback, have policies of non-discrimination with respect to passengers and neighbourhoods and set vehicle safety standards, among other reforms.
• Drivers would be barred from taking street hails and be required to hold a valid licence, proper insurance, possess a clear criminal record and no more than three recent driving violations, pass a criminal background check, and be at least 21 years old.
• Cities would receive stronger enforcement provision, including the ability to level demerit points for repeat offenders, such as bandit cabs. They would also be allowed to audit ride-sharing companies and drivers and would be given access to an Accessible Vehicle Fund to boost such offerings on the roads.
• Homeowners would be allowed to rent their houses or condos for up to 120 days a year without a municipal licence. They would also be required to hold minimum liability insurance.
• Owners of parking spots would be allowed to lease them 365 days without municipal interference, provided a clear path to the road is available and no sideways or thoroughfares are obstructed.

“We weren’t even talking about Uber a couple years ago and now it dominates our headlines,” the Niagara West-Glanbrook MPP said. That’s why he included a mandatory five-year review in the legislation so it will keep pace with coming innovations.

“I think we need to put pressure on the province and municipalities to empty the box when it comes to a lot of these outdated rules and regulations,” Hudak said, adding cabs were first regulated in British North America in 1635, under the Hackney Carriage Act of Great Britain.

“Imagine how much red tape builds up over time,” he said.

Hudak also sees the sharing economy as a place for economic growth: he said clearer rules would encourage Ontario-grown companies to enter the exploding sector.

To allay cities’ concerns, he met with municipalities to ensure they could get onboard with the new rules and to make sure the bill is structured to empower them to be involved in regulating and monitoring services such as Uber.

The province announced a review of the sharing economy in its 2015 budget. Finance Minister Charles Sousa has met several times Hudak about his bill, and said regulating the sharing economy is “something we’re very keen” to do. Transportation Minister Stephen Del Duca said he also had discussions about the bill but he believes that, for now, cities should continue to regulate taxis and limousines.

The bill would require the government’s support to become law since the Liberals have a majority at Queen’s Park.