Mississippi and West Virginia governors both sign ridesharing laws
Mississippi and West Virginia have become the 30th and 31st states to pass legislation to create a statewide regulatory framework for ridesharing services offered by transportation network companies like Uber and Lyft.
Mississippi is the most recent state to join the club, as Gov. Phil Bryant on April 4 signed into law H.B. 1381. Somewhat unusually, the measure establishes the Mississippi Insurance Department and the state’s elected insurance commissioner as regulator of TNCs, who each would have to pay a $5,000 license fee to the department.
The law, which takes effect July 1, requires TNCs to maintain at least $1 million of liability coverage for their drivers from the moment a ride is arranged until a passenger is dropped off at his or her destination. Any time a driver is logged in to the ridesharing app, but not actually engaged in a ride, he or she will be required to maintain third-person bodily injury coverage of at least $50,000 per person and $100,000 per incident and physical damage coverage of at least $25,000. This so-called “Period 1” coverage could be provided by the driver, the TNC or a combination of the two.
Drivers also would be required to undergo criminal background checks, which could be conducted by the TNC or by a third party. The legislation also specifically defined TNC drivers as independent contractors, so long as the TNC and driver both agree in writing, the TNC does not prescribe specific work hours or territories and the TNC doesn’t impose any noncompete clauses on drivers.
H.B. 4228 – West Virginia’s ridesharing effort, which we covered a bit back in February – was signed March 15 by Gov. Earl Ray Tomblin. It sets identical insurance requirements to the Mississippi bill, as both were based on last year’s major interindustry compromise between TNCs and major insurers. It also includes very similar language defining drivers as independent contractors, stipulated that TNCs therefore are not responsible for drivers’ workers’ compensation. It also takes effect July 1.
The law passed the state Senate unanimously and passed the House of Delegates in a 94-4 vote. An earlier attempt to pass statewide ridesharing legislation in 2015 had been hung up by a provision that would have required companies to include protections barring companies and drivers from refusing service or otherwise discriminating against gay, lesbian, bisexual and transgender riders. The signed bill requires companies to adopt nondiscrimination policies, but limits the protected classes to those already covered under existing state anti-discrimination law. However, companies can choose voluntarily to adopt more stringent nondiscrimination policies that do include LBGT consumers.
