Vetoed by Governor Jan Brewer

Vote Smart's Synopsis:

Vote to concur with Senate amendments and pass a bill that establishes a regulatory framework for rideshare companies.

Highlights:

• Requires a “transportation network” to provide a commercial liability insurance policy with at least $1 million of coverage per incident for accident claims involving a transportation network vehicle and its operator during a “transportation network trip” (Sec. 5).

• Defines “transportation network” as a company that uses a digital platform to match passengers with an operator who provides transportation, except for certain companies and programs, including, but not limited to, the following companies and programs (Secs. 1 & 3):
• A carpool or van service coordinated or promoted by a state or local body or non-profit agency;
• A program that is in place to meet federal air quality regulations; and
• A company that meets the requirements of a car rental service.

• Defines “transportation network trip” as the time period that begins when a transportation network operator accepts a requested ride through the network’s digital platform and ends when the passenger leaves the vehicle and the operator terminates the trip on the digital platform (Secs. 1 & 3).

• Authorizes a personal automobile liability insurance policy to exclude coverage for any loss or injury that occurs during a transportation network trip (Sec. 5).

• Requires a transportation network to perform a criminal background check and driver license record check on each transportation network operator before allowing them to transport passengers (Sec. 5).

• Requires a transportation network to ensure than an annual safety inspection is conducted on each vehicle to be used by a network operator (Sec. 5).

• Requires a transportation network to perform certain actions if a complaint is received that an operator is or was under the influence of drugs or alcohol while providing a transportation network trip, including the following actions (Sec. 5):
• Immediately revoke the operator’s access to the network’s digital platform;
• Conduct an investigation;
• Require the operator to take a drug test; and
• Permanently deny platform-access to the operator if the complaint is founded.

• Prohibits a transportation network operator from soliciting or accepting “street hails” (Sec. 5).

• Establishes the following civil penalties for violating the provisions of this bill (Sec. 5):
• Up to a $1,000 fine per violation by a transportation network, and up to $10,000 for violations in a 30 day period; and
• Up to a $250 fine per violation by a transportation network operator, and up to $1,500 for violations in a 30 day period.

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that establishes a regulatory framework for rideshare companies.

Highlights:

• Requires a “transportation network” to provide a commercial liability insurance policy with at least $1 million of coverage per incident for accident claims involving a transportation network vehicle and its operator during a “transportation network trip” (Sec. 5).

• Defines “transportation network” as a company that uses a digital platform to match passengers with an operator who provides transportation, except for certain companies and programs, including, but not limited to, the following companies and programs (Secs. 1 & 3):
• A carpool or van service coordinated or promoted by a state or local body or non-profit agency;
• A program that is in place to meet federal air quality regulations; and
• A company that meets the requirements of a car rental service.

• Defines “transportation network trip” as the time period that begins when a transportation network operator accepts a requested ride through the network’s digital platform and ends when the passenger leaves the vehicle and the operator terminates the trip on the digital platform (Secs. 1 & 3).

• Authorizes a personal automobile liability insurance policy to exclude coverage for any loss or injury that occurs during a transportation network trip (Sec. 5).

• Requires a transportation network to perform a criminal background check and driver license record check on each transportation network operator before allowing them to transport passengers (Sec. 5).

• Requires a transportation network to ensure than an annual safety inspection is conducted on each vehicle to be used by a network operator (Sec. 5).

• Requires a transportation network to perform certain actions if a complaint is received that an operator is or was under the influence of drugs or alcohol while providing a transportation network trip, including the following actions (Sec. 5):
• Immediately revoke the operator’s access to the network’s digital platform;
• Conduct an investigation;
• Require the operator to take a drug test; and
• Permanently deny platform-access to the operator if the complaint is founded.

• Prohibits a transportation network operator from soliciting or accepting “street hails” (Sec. 5).

• Establishes the following civil penalties for violating the provisions of this bill (Sec. 5):
• Up to a $1,000 fine per violation by a transportation network, and up to $10,000 for violations in a 30 day period; and
• Up to a $250 fine per violation by a transportation network operator, and up to $1,500 for violations in a 30 day period.

Full Bill Text