Las Vegas Sun

March 29, 2024

After Senate setback, what’s next for Uber?

Ride-share Protests

Kyle Roerink

People outside the state Senate building in Carson City on Monday, March 30, 2015, protest bills that would allow ride-share companies like Uber to operate in Nevada.

Ride-sharing company Uber hit an unexpected roadblock in its bid to launch in Nevada when the Senate failed to pass a bill Wednesday that would allow the company to operate legally in the state.

The defeat was a setback for the technology giant, which operates in more than 160 cities around the country, but the fight is far from over.

Lobbyists were back in action Thursday trying to revive the bill ahead of a critical deadline next week.

Uber first arrived in Nevada in October but was quickly taken off the road by a November court ruling. Despite its short time in the state, the company has gained popular support, with more than 53,000 people signing a petition to allow Uber to come to Nevada.

With an army of 16 lobbyists pushing Uber's bill at the Capitol and an equally strong push opposing the legislation from the politically connected taxicab industry, there's a good chance the battle will drag on until the final days of the Legislature, which is scheduled to finish its session June 1.

Here's a look at what's happened so far and what lies on the road ahead for Uber:

Partisan feud blocks passage

After passing unanimously out of committee last week, Senate Bill 439, which would set up a new regulatory framework for Uber and other so-called transportation network companies, came up for a vote before the full body Wednesday afternoon.

Because of a 25-cent-per-ride fee included in the legislation, the bill needed a two-thirds vote to pass, meaning it would need support from Republicans and at least some Democrats.

But after a pair of amendments put forward by Senate Minority Leader Aaron Ford were rejected without discussion, a partisan split took hold and politics overshadowed policy.

The amendments would have required more thorough, fingerprint-based background checks for Uber drivers and put a cap on the company's surge pricing feature, which increases the cost of rides during times of high demand.

Sen. Kelvin Atkinson asked for the vote to be delayed to allow more time for debate, but Republicans pushed ahead and Democrats dug in on an 11-10 party line vote that scuttled the bill's chances.

A separate bill, Senate Bill 440, allowing a new type of insurance for transportation network companies passed out of the Senate Wednesday on an 11-10 party line vote.

What's in the bill

The main Uber measure, Senate Bill 439, would codify many of the company's already in place regulations for driver and vehicle safety, while adding in several additional requirements unique to Nevada.

The bill would put Uber and other similar companies under the authority of the Public Utilities Commission, which would be responsible for permitting, inspecting company records and enforcing regulations.

Among the requirements laid out in the bill, Uber drivers would have to undergo criminal background checks, vehicle inspections and annual reviews of their driving records. Drivers who have been convicted of driving under the influence, violent crimes or sexual assaults within the previous seven years would be barred from transporting passengers.

Democrats have pushed for stricter background checks and mandatory drug testing to make the rules similar to those that apply to taxicab drivers.

One unique aspect of the proposed law is the 25-cent-per-ride fee that would be deposited in the state highway fund for road construction.

Taxicab and limousine operators have fought the bill from its inception, arguing that Uber shouldn't receive special treatment and should instead be forced to go through the existing licensing process overseen by the Taxicab Authority and Nevada Transportation Authority.

"Transportation network companies like Uber should comply with existing transportation regulations," Livery Operator's Association of Las Vegas executive director Kimberly Maxton-Rushton said in a statement. "This includes mandatory FBI background checks, drug screening for drivers, full-time commercial insurance, routine vehicle maintenance and inspections and other provisions which specifically protect the safety of the traveling public."

But Uber argues that it's different than existing transportation companies because it simply offers a technology platform that connects a network of independent drivers to people in need of rides. Since its arrival in Nevada, the company's representatives have said current laws don't consider this new type of model and that new regulations are needed.

What's next for Uber

Even though the Uber bill failed to pass the Senate the first time around, it can still be brought back for more debate, amendments and another vote before the Tuesday midnight deadline for first house passage. Both sides of the debate expect another hearing on the bill.

"Over 50,000 Nevadans are urging lawmakers to stand up for consumer choice and jobs in Nevada," Uber spokeswoman Eva Behrend said. "Lawmakers can still listen to their voices and bring SB 439 back for a vote."

Uber will have to win the support of at least three Democrats to pass the bill in the current version, although its progress could be greased by removing the 25-cent-per-ride fee, allowing it to pass on a simple majority vote.

If the bill passes the Senate, it would move to the Assembly and the debate would start anew with another round of committee hearings, amendments and floor votes.

If the bill fails to pass before the Tuesday midnight deadline, Uber's chances will narrow. But nothing is ever dead at the Legislature until the final gavel, and legislators have a number of ways they could keep the proposed law afloat. The most common way to revive so-called "zombie bills" is to write it into another existing piece of legislation as an amendment.

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