Landmark ride-sharing legislation introduced by Sen. Cyrus Habib, D-Kirkland, would provide a statewide framework to protect passengers, drivers and the public, while allowing Transportation Network Companies (TNCs) such as Uber, Lyft and others to operate legally in Washington.

“This industry is in transition, and innovative new companies have deployed technology to reduce costs and improve quality for consumers,” said Habib, who represents Redmond in the 48th Legislative District. “We as lawmakers should do our part to create policy that marries innovation and consumer protections. This legislation will provide protections for passengers and drivers so these new transportation options can serve the public safely and fairly.”

SB 5550, which was introduced with bipartisan support, would require TNCs to cover their drivers with liability, uninsured motorist and personal injury insurance to provide coverage in case of an accident while a driver is on duty. The legislation would also provide an avenue for a driver’s personal insurance to cover both commercial and personal use of their automobile should the Office of the Insurance Commissioner allow such an insurance product and it meets all applicable coverage requirements.

Additionally, TNCs would be required to conduct background checks on drivers’ criminal and driving records before they can drive on the network, as well as inspections of the vehicles to ensure they are safe for driving and meet all applicable standards.

The legislation would require TNCs to report to the state on how many drivers participate in the network, how many hours they drive, and the details of any accidents that occur while a driver is on duty. TNCs would be required to secure annual permits from the state and pay an annual fee, which will pay for the administration of the new consumer protections. The legislation would ensure privacy of passengers’ personally identifiable information and prohibit discrimination against people with disabilities and other protected groups.

“As someone who has used and relied upon these services, I know how important it is that consumers have safe, accessible and affordable options for getting around,” said Habib, who has been blind since age 8. “I am proud of the hard work and collaborative spirit shown by the many stakeholders I’ve worked with for months to craft this comprehensive policy. I look forward to working with interested parties as this bill moves through the legislative process.”

Rep. Larry Springer, D-Kirkland, will be introducing companion legislation in the House.