Rhode Island takes up ridesharing insurance issue

Dueling bills in the state legislature would firm up insurance requirements for drivers operating in Rhode Island

Insurance News

By Lyle Adriano

Rhode Island is the latest to join the ridesharing regulation bandwagon, with two proposed bills competing for lawmakers’ approvals.

Two bills were proposed to serve as regulations for companies such as Uber and Lyft operating in Rhode Island.

The Senate bill, proposed by Sen. Maryellen Goodwin, defines transportation network companies (TNCs), sets regulations for them, and establishes TNC drivers as independent contractors instead of employees. This bill shares features with similar legislation in other states. It would also require TNCs to pay a yearly fee of $10,000 to secure a permit to operate in the state.

"It's very necessary that we take some legislative action," Goodwin testified to her fellow senators. "We don't want our residents and our visitors to the state hopping into cars that are uninsured that have drivers that don't have significant background checks."

Goodwin believes her bill is the start of a conversation, and would take notes on what has and has not worked in other states.

The other House bill, introduced by Rep. John Edwards, is intended to "level the playing field between the cabs, liveries and Uber" by laying down provisions that call for strict driver background inspections. The bill will require drivers to undergo fingerprinting and appear before a law enforcement officer for a national criminal records check. This bill also demands a yearly fee for a TNC permit to operate, at $15,000.

"They came in here and they did what they wanted to do and ignored our existing regulations," Edwards remarked. "This will bring them back into the fold."

A Senate Commerce Committee has listened to Goodwin’s proposal April 14. Edward’s bill was recently introduced and has yet to be presented in the House.

An article on the Miami Herald noted that taxi operators in the region are not too keen over Goodwin’s bill. Taxi operators complained that the Senate bill does not “go far enough in putting Uber and Lyft through the same requirements that they've been following for years.

The same news feature noted that taxi operators were more in favor of Edward’s bill, since it subjects TNCs to the same stringent requirements taxi companies go through.

Keep up with the latest news and events

Join our mailing list, it’s free!