Uber, Lyft can operate with insurance

Gov. Charlie Baker will file legislation allowing Uber, Lyft and other app-based ride-for-hire services to legally operate in the state of Massachussetts after months of heated public hearings.

“Massachusetts has always been at the forefront of emerging technologies, with this legislation providing a modern regulatory framework to embrace innovation and protect and serve consumers,” said Baker in a statement. “A diverse transportation network is key to our future economic growth and our collaboration will ensure customers have safe and reliable choices when they travel.”

The bill requires Uber and Lyft to get permits from the state, and to issue certificates to all their drivers.

The legislation will require drivers to have full background checks, and also requires the companies to give driver information to the state for another background check. The state would also be able to bar drivers from working for Uber and Lyft.

Drivers for so-called Transportation Network Companies also will be required to have USD1 million in insurance coverage when the driver accepts a ride, and auto insurance that meets the state’s minimum coverage requirements.

Vehicles used by Uber and Lyft would be inspected by the state under the bill.