Sep 17, 2014 7:00 PM by News Staff
SACRAMENTO, Calif. (AP) - Drivers for ride-sharing companies such as Uber and Lyft must carry minimum levels of insurance under a new state law that will take effect next summer.
Gov. Jerry Brown announced Wednesday that he had signed AB2293 by Democratic Assemblywoman Susan Bonilla of Concord.
It establishes requirements for the types of insurance drivers must carry.
Taxi drivers have complained that ride-sharing companies have not had to play by the same rules, including insurance standards. The legislation prompted initial opposition from transportation startups that said it would stifle innovation.
Uber and Lyft ultimately supported Bonilla's bill after she agreed to lower the amount of insurance that is required when drivers do not have passengers in their vehicles.
AB2293 also clarifies that the Public Utilities Commission has oversight over ride-sharing companies.
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