Insurance mandate being removed from Iowa ride-sharing bill after Uber opposition

DES MOINES - A proposed insurance mandate for drivers using ride-hailing services such as Uber is being removed from legislation after the company threatened to cease operations in Iowa.

Sen. Tod Bowman, a Democrat from Maquoketa who chairs the Iowa Senate's transportation committee, late Tuesday filed the amendment to a bill that creates statewide regulations for ride-hailing companies such as Uber and Lyft.

Bowman's amendment removes a requirement for ride-hailing drivers using cars with liens to carry comprehensive and collision insurance coverage.

At a committee hearing in early March, an Uber representative said the mandate - which was included at the behest of state banks - would be 'unworkable” for the company, and noted that when Kansas passed a similar measure, Uber ceased operations in that state.

Uber operates in the Quad-Cities, Cedar Rapids, Des Moines and Ames and has served more than 100,000 Iowans since beginning operations here, a company official said.

In place of the mandate, Bowman's amendment would require drivers of vehicles with liens to notify the lien-holder if the driver plans to use the vehicle for ride-hailing, and create a $250 civil fine for any driver who fails to do so.

Bowman said the amended version of the ride-hailing regulations could be debated soon in the Iowa Senate; it is on the chamber's debate calendar for Wednesday.

Bowman's colleague in the Iowa House said he believes the parties are close to reaching agreement on the bill.

'It sounded like they had consensus, and it sounded like the Uber people are on board,” said Rep. Josh Byrnes, R-Osage, who chairs the House transportation committee. 'I think it's a good consumer protection for Iowans.”

Reached earlier Tuesday before the amendment was filed, an Uber spokesman declined to say whether the company will support the bill before seeing the amendment, but said the company has been working with state lawmakers on the legislation.

'We've been tracking it pretty closely,” said Leor Reef, with Uber. 'Everybody has been working hard and having discussions on how it can work out for everyone.”

Reef was could not be reached for comment late Tuesday after the amendment was filed.

The ride-hailing regulation bill also establishes a permitting process through the state transportation department for drivers, among other provisions.

'This is important because it's going to protect consumers and drivers that share the roads, and it's going to provide a certain safety level, ensuring us (the drivers) are quality people that meet these minimum standards,” Bowman said.