House bill would set statewide regulation of Uber, transportation network companies

DES MOINES - The Iowa House has approved a bill to establish common rules for transportation networks companies such as Uber.

Rep. Chris Hagenow, R-Windsor Heights, described House File 394, as an attempt 'to avoid a patchwork of regulations around the state.”

Transportation network companies are taxi-like services that connect riders to drivers via mobile phone apps. Drivers use their personal vehicles to transport passengers.

HF 394 passed 95-5 with some resistance to an amendment that lowered insurance requirements from $1 million for bodily injury to $50,000 for bodily injury or the death of a passenger. Rep. Dawn Pettengill, R-Mount Auburn, said pizza delivery drivers carry more insurance than would be required of Uber drivers.

Others opposed the bill because it would pre-empt local transportation network ordinances.

Cedar Rapids, where Uber launched in December 2014, has put its transportation network company ordinance on hold until it knows the fate of HF 394, according to Maria Johnson, the city's communication manager.

Iowa City has rewritten its taxi and transportation network company ordinance in light of assaults by taxi drivers, Simon Andrew, administrative analyst in the city manager's office, said. Uber said in January that ordinance change would prevent it from operating in the city.

'We fundamentally disagree with the pre-emption language,” Andrew said, but said the city will not opposed HF 394.

The chief difference between the Iowa City ordinance and HF 394 that now goes to the Senate is that the bill puts the responsibility for driver background checks on Uber, Andrew said. Iowa City would prefer the city conduct the background checks, he said.