South Dakota opens the door to ridesharing
Neither Uber nor Lyft currently operate in South Dakota. Last year, Sioux Falls, the state’s largest city, announced that it would apply the same requirements to ridesharing services as govern taxi drivers, including requirements to maintain commercial permits, independent contractor licenses, commercial license plates, to undergo vehicle inspections and to collect state sales tax.
Sponsored by state Rep. Mark Willadsen, R-Sioux Falls, H.B. 1091 would pre-empt local requirements that ridesharing drivers maintain commercial driver’s licenses or that their vehicles have commercial license plates.
The measure also follows the year-old “national compromise” on insurance requirements for ridesharing. During the so-called “Period 1” – when a driver is logged in to a ridesharing app but has not been connected with a potential rider – the law will require bodily injury liability coverage of at least $50,000 per-person and $100,000 per-incident, which may be provided either by the driver or the TNC. Once a driver has been connected with a rider, the law requires $1 million of TNC-provided liability coverage.