Governor Signs Bill Barring Local Uber, Lyft Regulations | Eastern North Carolina Now

    Publisher's note: The author of this post is Barry Smith, who is an associate editor for the Carolina Journal, John Hood Publisher.

Statute sets statewide standard for rules affecting transportation network companies

    RALEIGH     Gov. Pat McCrory has signed a bill into law establishing state regulation for transportation network companies, such as Uber and Lyft.

    "This law will help ride sharing companies and the people who use them flourish while increasing safety," McCrory said in a statement. "It encourages competition, innovation and opens the door to individual entrepreneurship while helping North Carolinians connect with businesses, education, concerts, sporting events, and each other."

    McCrory signed Senate Bill 541 Friday during a ceremony at the Charlotte Chamber of Commerce. Legislative sponsors of the bill were on hand, along with representatives from Uber and Lyft.

    The new law sets minimum liability insurance requirements for ride sharing companies. It also requires the companies to conduct background checks of drivers, specifies that drivers are partners independent contractors rather than employees, and sets parameters letting the companies enter into contracts to service airports in the state.

    It prevents local governments from adopting their own regulations for the companies, exempts drivers from having to secure "For Hire" licenses plates for their cars, and requires the companies to pay $5,000 application fees annually that will cover their drivers statewide.