Bill sets up state as Uber overseer

LR objects, says rules not enough

A Senate bill being considered in Arkansas would put the regulation of companies like Uber and Lyft under state control.

Senate Bill 800, sponsored by Jason Rapert, R-Bigelow, creates rules for what are known as transportation network companies, which use a website, digital network or software such as a smartphone app to facilitate rides between their contracted drivers and passengers.

The legislation would apply to Uber, which currently operates in Little Rock and Fayetteville.

Little Rock passed a special set of regulations for nontraditional, transportation-related services like Uber last year after much debate and with input from the company's representatives. Those local regulations differ from what is proposed in SB800. If the bill becomes law, it would negate any local codes.

Fayetteville contends Uber is operating illegally there because the company doesn't comply with the city's transportation codes. Police have issued 55 citations to drivers.

Uber says it is not a transportation company, but a technology company.

"We are adopting what is considered to be model legislation around the country, where it is taking care of regulation across the entire state so we don't have a hodgepodge of dissimilar regulations and dissimilar treatment of people involved in this," Rapert said in a phone interview Tuesday.

Little Rock objects to SB800 for numerous reasons, including that it takes away the city's control over the age of vehicles, the age of drivers, enforcement of permit requirements and the ability to deal with any issues that may arise, City Attorney Tom Carpenter said.

The city requires drivers to be at least 21 years old and that vehicles not be older than 7 years. SB800 sets the minimum driver age at 19 and does not put any limitation on vehicle age.

Little Rock also objects to the insurance requirements in the bill, which would have companies provide a minimum liability coverage of $1 million for death, personal injury and property damage while a driver is in service. "In service" is defined as the moment a driver accepts a ride request, while the driver is en route to pick up a passenger, during the ride and until the passenger exits the vehicle.

For other times a driver is logged into the app or network, such as when drivers are listed as available and waiting for ride requests, the company must provide the minimum insurance coverage required under Arkansas Code Annotated 27-22-104(b). Those requirements are $25,000 coverage for bodily injury or death; $50,000 coverage for bodily injury or death of two or more people; and $25,000 for the injury to or destruction of property of others.

Carpenter called that "woefully inadequate" in an email to state senators Tuesday, also pointing out that California recently amended its insurance requirements for transportation network companies during those waiting times. California requires $50,000 for death and personal injury per person, $100,000 for death and personal injury per incident and $30,000 for property damage during those other times.

Uber originated in San Francisco.

Rapert said Tuesday that Carpenter's argument was a "red herring" because states already have different levels of required coverage. He said no Little Rock official has contacted him with questions or concerns about the legislation.

He added that the Arkansas Insurance Department, the insurance industry, the state Public Service Commission and Uber have been involved with his legislation "since day one."

The Senate adopted an amendment to Rapert's bill Tuesday with a voice vote. The amendment added penalties for violating the regulations and clarified that drivers of transportation network companies are considered independent contractors for whom the company would not have to provide workers' compensation coverage.

The amendment also exempted from public disclosure company records obtained by the Public Service Commission for investigative or audit purposes. The bill requires a transportation network company to keep trip and driver records for one year and to make those records available to the commission if the commission is investigating a complaint or conducting an annual audit.

SB800 does not require a company to turn over customer complaints to the commission, but it gives the commission authority to investigate any known complaint. A customer could report a complaint to the commission on his own. The bill does not exempt any of the commission's records from being public.

In Little Rock, the public has access to taxi company complaints because the city requires the companies to give it copies of all complaints.

If the Senate passes the bill, it will then go to the state House of Representatives.

Metro on 03/25/2015

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