Rideshare dynamic pricing measure amended, advanced

Lawmakers gave first-round approval Feb. 11 to a bill intended to give the governor more discretion over where rideshare companies are permitted to use dynamic pricing during a state of emergency.

Current law prohibits transportation network companies such as Uber and Lyft from using dynamic pricing statewide during any state of emergency declared by the governor.

Lincoln Sen. Beau Ballard, sponsor of LB771, said the governor must then take an extra step to clarify that the prohibition applies only to a certain area. When prices are capped during a statewide ban, he added, fewer drivers want to drive, limiting their earnings and decreasing the number of rides available.

Under the bill, dynamic pricing would be permitted in any political subdivision that is specified as the subject of a state of emergency declared by the governor unless specifically prohibited in the governor’s emergency proclamation or an executive order. Any prohibition would be for the time period specified in the proclamation or the executive order.

Dynamic pricing would be permitted in any political subdivision that is not specified as the subject of a state of emergency declared by the governor.

Ballard offered an amendment, adopted 32-2, under which the bill would go into effect when signed by the governor.

Sen. John Fredrickson of Omaha supported LB771, saying a statewide ban on dynamic pricing during a localized emergency “doesn’t always make sense.”

However, he said, the bill as introduced would eliminate an automatic consumer safeguard and allow rideshare companies to impose dynamic pricing in an affected area unless the governor takes additional action to prohibit it.

Fredrickson introduced an amendment that instead would prohibit dynamic pricing for seven days after the governor declares a state of emergency. The prohibition would be confined to the areas outlined in the emergency proclamation.

Fredrickson said the amendment would give the governor discretion to further regulate dynamic pricing during a state of emergency through executive order.

After voting 37-0 to adopt Fredrickson’s amendment, senators advanced LB771 to select file on a vote of 35-0.