LINCOLN — A legislative committee advanced a bill Tuesday that would allow ride-sharing companies such as Uber and Lyft to legally operate in the state.
But a floor fight appears likely when the measure gets debated by the full Legislature because of concerns raised by insurance and banking representatives.
The chairman of the Legislature’s Transportation and Telecommunications Committee, State Sen. Jim Smith of Papillion, opposed the bill’s advancement from his committee. Smith said he was concerned that Legislative Bill 629 didn’t require adequate insurance coverage for private cars used by drivers.
“I’d like to have some kind of protection for the drivers who are simply trying to make a buck,” he said.
Right now, companies like Uber and Lyft are operating illegally in the state. A couple of drivers have been ticketed, but their cases are still pending.
People are also reading…
Nebraska requires transportation companies, such as taxis, to obtain authority from the State Public Service Commission to operate and provide insurance for their drivers.
Uber has argued it is not a taxi company but an Internet-based service that arranges rides for people in private vehicles operated by part-time drivers. Advocates say ride-sharing services provide a cheaper and more convenient alternative to cabs.
But a dispute has developed. Banks and insurance companies point out that private insurance policies are nullified when a vehicle is used for a commercial purpose.
Uber has offered to provide liability coverage for its drivers but has said it is not responsible for comprehensive and collision insurance during the period when a driver has turned on a computer “app” but has not yet accepted a ride arranged by Uber.
Banking lobbyists have argued Uber should also provide comprehensive and collision insurance during that “app on” period to ensure that a bank doesn’t lose money in the event of an accident involving a driver’s vehicle that is being financed. In some states, insurance firms have begun to provide supplemental coverage to drivers who wish to pay for insurance themselves.
An amended version of LB 629 was advanced from the Legislature’s Transportation and Telecommunications Committee on a 5-2 vote, with Smith and Omaha Sen. Beau McCoy voting no, and one senator, Hyannis Sen. Al Davis, recorded as present but not voting.
The committee opted to add an amendment supported by Uber that doesn’t require insurance during that “app on” period. Members didn’t consider a competing amendment from the bankers and insurance firms that would have required a warning to drivers that they aren’t covered by insurance at all times.
Gretna Sen. John Murante, who supported the Uber amendment, said that if regulation of business is necessary, it should be done “in the most minimal way.”
Smith said that while he voted no on advancing the amended bill, he supports passing a law so that firms like Uber and Lyft can legally operate.
Contact the writer: 402-473-9584, paul.hammel@owh.com