Legal Impediments To Forming Carpools Vanpools And Other Types Of Ridesharing Arrangements

The most significant impediment in state laws to forming ridesharing arrangements are laws requiring motor vehicles transporting passengers for compensation to qualify as common or contract carriers. In recognition of the undesirability of such requirements, the legislatures of 32 states have adopted an exception to permit pooling without approval of the state public utility commission. Thirteen states do not have any such specific exceptions, and 6 states have motor carrier laws which regulate common but not contract carriers. Another impediment to ridesharing arrangements is the cost of availability of insurance. This report discusses compulsory insurance laws, guest statutes, no-fault laws, lapse in insurance coverage and workmen's compensation laws. This report also discusses whether ridesharing vehicles are commercial motor vehicles or buses, and the consequences of considering them as such. Aspects such as inspection, authority to acquire vans, the number of passengers, and hitchhiking restrictions are discussed. State fair labor standards acts, and income tax laws and their relation to ridesharing are also covered. Comments are made on the use of state-owned vehicles for ridesharing.