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Bill would allow PSC to lower TNC annual fee and repeal vehicle inspection requirement; industry and PSC disagree on safety impact
Summary
Senator Carolyn Bosn unveiled LB465 to allow the Public Service Commission to set TNC annual fees below the current $25,000 and to remove the state’s initial and annual vehicle inspection requirement for drivers of rideshare platforms.
Senator Carolyn Bosn introduced LB465 to allow the Nebraska Public Service Commission discretion to set the annual fee for transportation network companies (TNCs) at less than the current flat $25,000 and to repeal the statute requiring initial and annual vehicle inspections for TNC drivers.
Bosn told the Transportation and Telecommunications Committee the TNC inspection requirement is a barrier that dissuades potential drivers from completing activation and that federal and national data show most crashes are attributable to driver behavior rather than mechanical failure. She said the bill would align Nebraska with surrounding states and let the PSC choose a lower fee if warranted.
Matt Schaefer, testifying for Uber, said company data show the inspection step is the most common point where potential drivers abandon onboarding and that half of U.S. states do not have annual inspection requirements for TNCs. "The inspection part is the most common place where potential drivers abandon the process," Schaefer said, arguing that app‑based feedback and rapid deactivation serve as an immediate safety check.
Nebraska Public Service Commissioner Kevin Stocker testified in opposition. He said inspections and the ability for the PSC to obtain inspection reports are an established tool to weed out unsafe vehicles and that inspection costs in Nebraska average about $75 per year. Stocker cautioned that removing the requirement would impose heavier regulatory burdens on other carriers while lifting them from TNCs and could create marketplace disparities.
Transportation operators and county officials also testified on both sides. The committee received no online comments before closing the hearing. The PSC said it is open to discretion over fee setting but noted that carriers already express ongoing concerns about insurance costs and regulatory burdens under the current scheme.
No committee action or vote was taken during the hearing.
