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Bill To Regulate Ridesharing Companies Advances

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Colorado State Capitol (credit: CBS)

Colorado State Capitol (credit: CBS)

DENVER (AP) — Colorado lawmakers advanced legislation to regulate transportation companies that use cellphone apps to connect riders to drivers on their personal cars.

The legislation would put companies like UberX and Lyft under the purview of the state’s public utilities commission, which will oversee required vehicle inspections and background checks for drivers. The bill also seeks to clarify when drivers will be covered under the companies’ insurance, and when they’ll be covered by their personal insurance.

The House Transportation Committee approved the bill Wednesday on a 12-1 vote. It still needs to be voted on eventually by the full House. It has already cleared the Senate.

Opposition has come from traditional tax companies that argue the new companies are undercutting their business by avoiding costly requirements that they are required to follow.

(© Copyright 2014 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

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