Nevada Legislature pushing rideshare companies to ensure compliance with state law

CARSON CITY — A bill requiring Uber, Lyft and similar companies to ensure that their drivers have valid state business registrations before they go to work was heard by the Senate Commerce Committee on Friday.

Senate Bill 226, sponsored by Sen. Kelvin Atkinson, D-North Las Vegas, would also require quarterly reporting from the ride-sharing companies on the number of drivers employed as independent contractors.

Lobbyists representing the companies opposed the measure, saying it goes too far in requiring the companies to ensure compliance with state law for drivers who are not their employees.

The annual state registration fee costs $200.

Atkinson said an estimated 57,000 drivers work for the transportation network companies, but there is no assurance they are registered with the secretary of state’s office as required by law.

“We’ve got to hold people responsible,” he said.

Atkinson said he has tried to get this information since the transportation network companies were authorized to operate in Nevada by the Legislature in 2015. The state also needs accurate numbers of drivers as lawmakers make transportation-related policy decisions, he said.

The companies agreed to ensure compliance with the business license requirements when they were authorized to operate, Atkinson said.

“A promise is a promise is a promise,” he said.

Josh Griffin, representing Uber, and Michael Hillerby, representing Lyft, said the companies do tell drivers of the requirement to get a state business license.

But Griffin said the bill goes too far in requiring the companies to ensure the drivers comply with the law.

In comments outside of the hearing, Senate Majority Leader Aaron Ford, D-Las Vegas said Atkinson’s bill is no surprise to the companies.

“There were promises made,” he said. “There were expectations laid out.”

The companies were told that lawmakers expected them to come forward with some assurances and a plan to ensure compliance, Ford said.

Atkinson said he is open to a discussion about providing some relief to drivers who are part time. There is now in state law a home-based business exemption from the registration fee.

Contact Sean Whaley at swhaley@reviewjournal.com or 775-461-3820. Follow @seanw801 on Twitter.