TOPEKA, Kan. (April 20, 2015) – The R Street Institute praised Kansas Gov. Sam Brownback for heeding consumer concerns and vetoing S.B.117, a bill that would have placed burdensome restrictions on ridesharing companies and may have forced them to cease operations in the state.

Recognizing the need for innovation to spur economic growth, Gov. Brownback said in his veto statement that placing these burdens on an emerging industry would invite more problems, not less.

“While we applaud the Kansas Legislature’s initiative to advance full legalization of transportation network companies operating in Kansas, this effort must be undertaken in a manner that promotes competition and innovation, rather than impeding it,” said R Street President Eli Lehrer. “While well-intentioned, the restrictions in the bill would have limit innovations that could help significantly reduce costs.”

Many of the nation’s leading insurance trade associations, along with transportation network companies, have reached an accord about what exactly constitutes a comprehensive, yet flexible insurance framework for ridesharing.

“We encourage the Legislature to start from scratch and craft legislation that follows the compromise model that is already under consideration in numerous states across the country,” said Lehrer.


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