DENVER (AP) – Colorado has become the first state to put in place statewide regulations on companies like UberX and Lyft, which connect riders to drivers through cellphone apps.
Gov. John Hickenlooper signed the bill on Thursday.
A handful of other state legislatures this year have tried and failed to pass bills to provide oversight for the ridesharing companies. Taxi and limo companies have opposed such measures, saying the web-based businesses are not regulated as strictly as traditional transportation companies.
The new law puts the companies under the oversight of the state’s public utilities commission. It requires ridesharing companies to submit drivers to background checks, vehicle inspections, and provide proof of insurance.