Ride-hailing companies such as Uber and Lyft will now be regulated in Ohio by the state's Public Utilities Commission, The Toledo Blade reported.
Gov. John Kasich (R) signed House Bill 237 into law earlier this week.
The ride-hailing bill, sponsored by state Reps. Mike Duffey (R) and Bob Hackett (R), substitutes statewide regulation by the Public Utilities Commission of Ohio for locally enacted rules. The rules would apply to so-called "transportation network companies" that are typically hailed via cellphone applications or the Internet, The Blade said.
The rules could also apply to taxi and limousine services only during the times they employ a similar digital business model. But they would remain under local regulation when it comes to their more traditional practice of being hailed on the street or by telephone.
The legislation was sought by San Francisco-based Uber as an alternative to a patchwork of local regulation. The legislation requires such companies to obtain a $5,000 state operating permit, sets minimum levels of auto insurance that the companies' contract drivers would have to obtain, and require drivers to undergo criminal, sex-offender and driving history background checks, the newspaper reported.
The legislation received supported from the Ohio Insurance Institute.
In a letter urging the governor to sign the bill, the institute, a trade association which claims to represent insurers holding over 85% of Ohio's private auto insurance market and over half the commercial auto insurance market, said the requirements of the bill "will better protect TNC drivers, passengers and pedestrians from uninsured losses associated with this new type of commercial activity," Crain's Cleveland Business reported.
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