Requiring Uber and Lyft to conduct criminal background checks of drivers using multi-state and national databases and to review driving records.īoth companies already cover their drivers with a $1 million insurance policy and do criminal background checks going back seven years. Requiring the company to maintain motor vehicle liability insurance of at least $1 million per accident for bodily injury and property damage. Requiring a driver to maintain an owner’s or operator’s motor vehicle liability insurance policy that meets the requirements of the law. Requiring disclosure of the fare calculation method on the company website and providing customers with an estimated fare before the ride begins. Requiring Uber and Lyft to obtain a permit to operate and pay a $5,000 annual fee to maintain the permit. Key provisions of the proposed law include: Uber wants this state-wide regulation so much that it has enlisted people who have used its service to sign a petition asking that the legislation be passed. Uber and Lyft actually stopped operating in San Antonio when the city passed a restrictive law that included fingerprinting drivers, requiring them to undergo random drug testing, and charging the company a fee to operate in the city. 
For example, Dallas and Austin are satisfied with Uber’s background checks on its drivers while Houston and San Antonio want stricter regulations. Right now cities across Texas have their own regulations governing Uber and Lyft, which is how taxicabs are also regulated. How the Bill Would Regulate Ride Sharing Services Ten states have already passed laws regulating Uber and Lyft, and about thirty-five others are considering similar ones. Uber and Lyft are new transportation services that use smartphone apps to connect customers with drivers, who use their own vehicles to pick up people who need rides.
Uber and Lyft are spending huge sums of money lobbying for state regulation over municipal control because the state law would be less restrictive. The Texas legislature is considering a new law-HB 2440-to regulate Uber and Lyft, taking away control from local cities that now have their own, often different, regulations.
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