Assembly committee advances compromise that limits delivery-app vicarious liability, requires $1 million coverage

Assembly Bill 523, a negotiated compromise between the Nevada Justice Association and Uber, advanced in the Assembly Committee on Growth and Infrastructure on March 25 after a short work session and passed unanimously.

The bill creates a statutory framework that treats delivery network companies (DNCs) differently from transportation network companies (TNCs) and limits vicarious liability for the companies if specified insurance requirements are met. Chair Watts said the parties had worked together on a compromise and called the result an effort to address concerns from both perspectives.

Why it matters: The measure establishes a category of delivery network company and ties the companies' protection from vicarious liability to a requirement that DNCs maintain at least $1 million in insurance coverage for drivers. Sponsors said the change is intended to protect consumers while providing predictability for technology-based delivery and ride services.

What the bill does: Matthew Sharp, presenting for the Nevada Justice Association, told the committee the compromise requires delivery network companies such as Uber Eats to maintain certain insurance levels in exchange for statutory protection from vicarious liability for their drivers' acts or omissions. John Griffin, representing Uber, said the negotiated language would reduce Uber's current driver coverage from $1.5 million to $1 million while preserving protection for the company so long as the coverage requirement is met. Allison Brazier for the Nevada Justice Association clarified that "this does not affect any direct claims against Uber" and that the provisions would not apply to causes of action that arise before the bill's effective date.

The bill sets an effective date for causes of action arising on or after Oct. 1 of the year of enactment and does not alter existing litigation pending before that date. Committee staff described the measure as a revision of transportation-related provisions and circulated an agreed amendment for the committee's consideration.

Committee action: After the hearing, the committee moved into work session and approved the amendment and a do-pass recommendation. Assemblymember Brown May moved to amend and do pass AB 523; Assemblymember Karas seconded. Chair Watts called for the vote and the motion carried unanimously.

Quotations from proponents: - "This is a compromised bill between the Nevada Justice Association and Uber," Matthew Sharp said as he introduced the package. - John Griffin, speaking for Uber, told the committee that similar 1.5-to-1 insurance frameworks exist in other states and noted that claims exceeding the $1 million threshold are "very few." - Allison Brazier added: "This does not affect any direct claims against Uber."

Clarifying details and limits: Committee presenters said the bill preserves claims against a company's own negligence (it only addresses vicarious liability), requires defined insurance minimums for DNCs and the TNC period-coverage structure, and is modeled in part on definitions used in other states and national model language. The Nevada Transportation Authority (NTA) was referenced as an existing reporting source for claims data. The provision does not create retrospective changes to pending cases; it applies to causes of action arising on or after Oct. 1.

Status and next steps: The committee approved the amendment and advanced the bill out of committee by unanimous voice vote. The floor statement was assigned to Assemblymember Brown May.

Ending: Supporters told the committee they view the compromise as balancing public protection and business predictability; opponents were not recorded during the hearing and the committee heard no public callers on AB 523 that day.