Senate revives bill authorizing ride-sharing companies such as Uber

CARSON CITY — A bill authorizing ride-hailing companies like Uber to operate in Nevada was resurrected Thursday on the Senate floor as an amendment with new tax provisions to fully fund a new medical school in Las Vegas and boost the state highway fund.

The amendment to Assembly Bill 175 was worked out between state Sen. James Settelmeyer, R-Minden, and state Sen. Kelvin Atkinson, D-Las Vegas. It incorporates many of the provisions of Senate Bill 439, the original Uber bill that died earlier in the Senate.

Among other things, the amended version imposes a 3 percent excise fee on the total fare charged. The tax would apply not only to ride-hailing firms but also taxicabs and limousines. A 25-cent per ride fee in the original bill was scrapped.

Representatives of the taxi and limo industry cried foul, calling the amendment a “thinly veiled attempt to trade critical public safety for the promise of millions of dollars in return.”

“The current transportation industry has always paid its fair share to Nevada through fees and taxes,” Kimberly Maxson-Rushton, executive director of the Livery Operators Association of Las Vegas, said in a statement. “Nevada legislators should tell Uber that it cannot buy its way around public safety in Nevada. It’s not for sale.”

The industry argues the bill would allow ride-sharing companies like Uber and Lyft to circumvent public safety regulations, jeopardizing the state’s vital tourism economy.

Steve Thompson, Uber Nevada general manager, hailed action on the bill.

“Nevada leaders have the chance to support the tens of thousands of Nevadans demanding increased job opportunities and more affordable and reliable transportation options by bringing Uber back to the Silver State,” he said in a statement.

Senate Majority Leader Michael Roberson estimated the tax would generate $90 million to $100 million over the biennium. The first $5 million would go to the state highway fund, the rest to the state general fund.

But Roberson said he intends to earmark $19 million to fully fund a medical school at University of Nevada, Las Vegas. It would be in addition to the $9.3 million Gov. Brian Sandoval proposed in his budget to start development of the school.

“I said this morning we are not leaving this session until we fund the UNLV medical school. The revenue from this bill will certainly help us do that,” said Roberson, R-Henderson.

The bill also provides for regulation of transportation network companies by the state Public Utilities Commission. A study will be conducted on how transportation network companies should conduct background checks with a report due in about six months.

The issue of background checks was a concern for Senate Democrats, who opposed the original bill because they said it did not include enough public safety measures. Though ride-sharing firms conduct their own background checks, Democrats argued the procedure should include checking fingerprints through law enforcement databases.

Senate Minority Leader Aaron Ford, D-Las Vegas, said his caucus is comfortable with the compromise of a study.

“Another one of the key important points that needs to be acknowledged here is having money in the highway fund, and funds for the medical school will create jobs for the construction industry,” Ford said.

Settelmeyer, chairman of the Senate Committee on Commerce and Labor, said one ride-sharing company estimates it could hire 10,000 drivers in the next two years and another predicts 5,000.

“That’s 15,000 jobs in a year or two,” he said.

Senators by voice vote accepted the amendment. A vote on the bill itself could come as early as Friday. It will then return to the Assembly.

Contact Sandra Chereb at schereb@reviewjournal.com or 775-687-3901. Find her on Twitter: @SandraChereb.