Bill introduced to allow Uber to legally operate
A bill that would enable ride-hailing apps like Uber to operate legally in the state was introduced Monday in the state Senate.
Senate Bill 439 would set guidelines for smartphone applications that would be used for transportation services, including transportation network companies.
The 30-page bill was assigned to the Senate Commerce, Labor and Energy committee. It’s likely to be fought by the state’s taxi and limousine industry.
Sen. James Settelmeyer, R-Minden, chairman of the Senate Commerce, Labor and Energy committee, said he has been working on the language in the bill for months to answer all questions and concerns. Uber is the only ride-sharing technology that has attempted to enter the Nevada market and Settelmeyer said it is prohibited now from operating in Nevada.
The question is whether the state wants Uber to operate under an approved regulatory scheme or in an unregulated manner, Settelmeyer said.
Under provisions of the bill, companies would be required to register for an annual permit with the Public Utilities Commission as a transportation network company. It also requires that the company have a state business license and a registered agent in the state.
Companies that are registered will be required to provide the name, age and address of its drivers, a copy of a driver’s license, a record of the driving history of the applicant and a description of the vehicle.
Driver applicants also will be subject to criminal background checks every three years, including a search of sex offender registries.
Drivers must also be at least 19, possess a valid driver’s license and have a car registered in the state.
Companies registered as transportation network companies also would be required to inspect vehicles to make sure the vehicle has four doors or more and carries seven passenger or fewer.
Contracted drivers also will be required to be insured.
Companies also would be required to keep trip sheets, driver and vehicle inspection records, complaint and resolution records and accident records for at least three years.
Companies also will be required to provide an annual report to the Public Utilities Commission by May 15 of each year.
The bill has a provision against long-hauling passengers, although transportation network companies also are required to give a fare estimate before each ride.
The bill also enables the commission to fine companies up to $100,000 for violations of any rules or regulations as well as prohibit illegal drivers from working for the company.
The commission also is charged with developing regulations to carry out the proposed law.
Representatives of the Livery Operators Association, a group that has taxi and limousine companies in the state, said they’d oppose the bill.
“The Livery Operators Association has not had an opportunity to review the bill that Uber introduced today, but we do know that the proposal seeks to establish a new regulatory authority that bypasses established regulatory processes,” said Kimberly Maxson Rushton, executive director of the association. “We believe that this is totally unnecessary because the Nevada Transportation Authority is fully capable of managing transportation providers like Uber.”
Rushton said Uber expects special treatment so that it can operate without oversight to protect the safety of the public and without paying appropriate licensing fees.
“Uber does not conduct thorough FBI background checks on its drivers, the drivers are not covered by full-time commercial liability insurance and Uber denies any responsibility or liability for the actions of its drivers,” she said.
“We know that a vast majority of Nevadans want the same protections they are guaranteed to receive when they get into any licensed taxi, limo or vehicle for hire in Nevada. Uber can operate in Nevada legally right now; they just choose not to.”
Uber officials reacted positively to the bill’s introduction.
In a blog on Uber’s website, a person identified as Steve Thompson called it a response to Uber’s petition efforts.
“This bill is an important step forward in creating a permanent regulatory framework for ridesharing in Nevada,” the blog post said.
“Nevada has embraced ridesharing and the reasons are crystal clear: The Uber platform means more economic opportunity for drivers, greater choice for riders and safer streets for the cities we call home. But we need your help to put over 20,000 Nevadans back to work and create a permanent home for ridesharing in the Silver State.”
Contact reporter Richard N. Velotta at rvelotta@reviewjournal.com or 702-477-3893. Find him on Twitter: @RickVelotta. Review-Journal writer Sean Whaley contributed to this report.
RELATED STORIES
Henderson business leaders back Uber’s return
Despite Uber petition, service is still illegal in Nevada
See all of our coverage: 2015 Nevada Legislature.
