The Taxpayers Protection Alliance announced on April 20 that limited-government groups are urging Congress to expand the Graves Amendment to cover ridesharing platforms as lawmakers prepare to advance a surface transportation reauthorization bill.
The issue centers on federal liability rules that currently shield rental and leasing companies from vicarious liability under the Graves Amendment, enacted in 2005, when they are not negligent. Groups including the R Street Institute, the James Madison Institute and the 60 Plus Association say those protections should be extended to ridesharing and peer-to-peer platforms to reflect changes in the transportation sector, according to the Taxpayers Protection Alliance’s website.
Several states have already adopted related liability frameworks for transportation network companies. In Texas, House Bill 1745 limits vicarious liability by requiring plaintiffs to prove gross negligence by clear and convincing evidence after companies meet statutory obligations related to driver screening and insurance.
In Florida, state law provides that a transportation network company is not liable for harm caused by a driver logged into its platform when the company does not own the vehicle and complies with statutory requirements, according to the American Tort Reform Association.
About 30 states have also enacted measures limiting or eliminating the basis for vicarious liability claims against peer-to-peer car-sharing platforms. Advocates for expanding the Graves Amendment say a federal standard would replace a patchwork of state laws and reduce litigation risk for ridesharing companies operating across state lines. The peer-to-peer car-sharing market is projected to grow from $9 billion in 2025 to $21 billion by 2033, at an annual growth rate of about 11%, according to the R Street Institute.
The Taxpayers Protection Alliance is a nonpartisan nonprofit based in Washington, D.C., founded in 2011. The organization focuses on fiscal policy and government accountability, conducting research and analysis on taxation, spending and regulatory issues affecting consumers and businesses, according to its website.
