Ride-sharing regulations advanced

Senators gave second-round approval May 5 to a bill that would authorize the state to regulate ride-sharing companies.

Introduced by Omaha Sen. Heath Mello, LB629 would designate a transportation network company (TNC) as a new class of transportation service provider. A TNC would fall under the jurisdiction of the Public Service Commission and be defined by the bill as a corporation, partnership or other entity that uses an online application or digital network to connect riders to drivers for transportation service.

The bill would establish regulations for a TNC regarding stages of operation, permits, insurance, driver background checks, vehicle inspections, fee collection and complaint investigation. TNC drivers in Nebraska would be required to have a valid driver’s license, proof of registration, proof of automobile liability insurance and be at least 21 years old.

Mello introduced an amendment on select file that would increase from $20,000 to $25,000 the annual TNC registration fee and increase from $500,000 to $1 million the minimum primary liability insurance coverage a TNC must maintain for death, personal injury and property damage.

The amendment also would expand the definition of personal vehicles used by TNC drivers to include those that a driver owns, leases or is authorized to use. It would exclude from the definition of prearranged ride a shared expense carpool or vanpool arrangement.

Additionally, the amendment would require that a driver provide the TNC with a signed confirmation that a vehicle lienholder had been notified prior to a vehicle being used for a TNC.

Mello said the amendment represents a compromise by TNCs, the Public Service Commission and banking and insurance industries.

After adopting the amendment 34-0, senators advanced the bill to final reading by voice vote.