Repeal of rideshare vehicle inspection requirement proposed

The Transportation and Telecommunications Committee heard testimony March 3 on a measure intended to make it easier for Nebraskans to use their personal vehicles for rideshare services.

LB465, sponsored by Lincoln Sen. Carolyn Bosn, would eliminate the requirement that drivers for transportation network companies such as Uber and Lyft obtain initial and annual vehicle safety inspections.

Bosn said national data show that most crashes are due to human error and not mechanical problems.

“We have strong evidence that the vehicle inspection requirement is not materially contributing to the overall safety of ridesharing services and instead is actually keeping Nebraskans from being able to earn an income on their own schedule,” she said.

TNCs currently are required to pay an annual flat fee of $25,000 to the Nebraska Public Service Commission or an annual per-vehicle fee of up to $80. LB465 would allow the commission to set a lower annual flat fee.

Matt Schaefer testified in support of the bill on behalf of Uber. He said the inspection requirement is the most common reason potential rideshare drivers abandon the activation process and that passenger feedback helps Uber remove drivers from the platform if their vehicles are unsafe.

Half the states do not require rideshare vehicle inspections because there is no evidence they contribute to safety, Schaefer said.

“Uber’s data shows that accidents happen at the exact same rates between states with inspections and without inspections,” he said.

Testifying in opposition to LB465 was PSC commissioner Kevin Stocker. He said the inspection, which costs Nebraska rideshare drivers approximately $75 per year, is a “minimal investment to ensure safe and reliable transportation.”

“People using Uber and Lyft expect the driver to take reasonable steps to ensure that their vehicle is safe,” Stocker said. “The current requirements weed out unsafe vehicles and encourage proper vehicle maintenance.”

The committee took no immediate action on the bill.