Politics

Uber bills advance in state House

By Aaron Gould Sheinin
March 3, 2015

Comprehensive coverage

The Atlanta Journal-Constitution has Georgia’s largest team at the Gold Dome for this year’s legislative session. To find the most expertise on issues that matter to taxpayers, go to myAJC.com/georgialegislature.

Uber and other ride-sharing services were the focus of two pieces of legislation that gained key votes Tuesday in the state House.

First, the House voted overwhelmingly to approve a bill that would require the companies to maintain $1 million in insurance coverage for all drivers from the moment the driver accepts a ride request to the time the ride ends.

House Bill 190, sponsored by Rep. Rich Golick, R-Smyrna, also calls for a minimum $300,000 in coverage for bodily injury or death and $50,000 for property damage whenever a driver is logged into the company's system but not carrying passengers.

Golick framed the issue as one of fairness and safety.

“Under Georgia law, there is no requirement for these companies to carry insurance related to their business activities,” Golick said, noting that “reputable” companies such as Uber and Lyft are insured.

“The objective here is not regulation,” Golick said. “It’s not to do anything that is oppressive to innovation in this sector.”

Golick also said the bill is necessary because a driver’s personal insurance policy will not cover damages incurred while operating as a commercial driver.

A spokesman for Uber, however, told The Atlanta Journal-Constitution that the bill will make it very difficult for it to operate in Georgia.

“A step forward for HB 190 means a step in the wrong direction for ride sharing in Georgia,” Uber spokesman Taylor Bennett said after the bill passed the House. “This bill puts the interests of big insurance companies ahead of small business owners by needlessly driving up their costs to make a living.”

On Monday, Bennett said “there’s no rhyme or reason behind” the bill.

Golick, however, said any claim that his bill would run Uber out of Georgia is “an absolutely deceptive statement, at best.”

The bill passed 141-26 and next goes to the Senate. The bill is intended to create an even playing field, as state law already requires limousines to carry the same level of insurance.

Meanwhile, the House Regulated Industries Committee voted to advance House Bill 225, which would require Uber and Lyft drivers to pass background checks and require the companies themselves to pay taxes or annual fees, things the companies have thus far resisted.

Sponsored by Rep. Alan Powell, R-Hartwell, HB 225 is the latest attempt to add some level of regulation to these popular, app-based companies. While representatives of Uber and Lyft told lawmakers Tuesday that they agree with many parts of the bill, they still sought changes including a continued delay in paying taxes.

Uber public policy associate Nick Zabriskie testified that the company wanted to “continue to explore” ways that the “Department of Revenue and the state of Georgia can hopefully capture revenue from these industries in a way that achieves the parity we described.”

But committee Chairman Howard Maxwell, R-Dallas, said the exploration had ended.

“We’re going with what we’ve got,” he said.

About the Author

Aaron Gould Sheinin

More Stories