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Brewer vetoes controversial Uber bill

Arizona governor vetoes bill exempting Uber from insurance regulations

PHOENIX (AP) -- Arizona Gov. Jan Brewer on Thursday vetoed legislation that would have exempted Uber and other rideshare companies from insurance regulations imposed on traditional taxi and livery companies.

Saying the bill does not offer fundamental safeguards that protect passengers, she vetoed the bill just one day after the state House of Representatives gave final approval to House Bill 2262.

"Consumer safety must not be sacrificed for the sake of innovation," Brewer wrote in her veto letter.

Brewer took issue with several provisions of the bill, including the part that exempts rideshare companies from the commercial insurance requirements that require traditional taxi and livery companies to insure drivers at all times on the job. An Uber driver who is working on the road but has not yet received a request for a ride is not insured unless the driver's personal insurance denies the claim, in which case Uber provides its contingent policy.

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"In the larger context, this uncovered exposure likely would have led to significant increases in insurance rates for all Arizona consumers and unnecessary litigation," she wrote.

The so-called Uber bill was one of the bigger issues of contention within the state Legislature this session. Democrats and Republicans were split within their own parties. Proponents of the bill said government should stay out of the way and let new companies like Uber innovate, while opponents said the lack of regulations pose a public safety threat.

The bill would not have required Uber drivers to be drug tested, a provision that the governor said should be in the bill when she expressed concerned over it this week.

"Arizona employers have effectively used employee drug testing as a way to ensure a drug free workplace," she wrote. "This is a vital tool to ensure that passengers and other drivers on the road are protected from drivers operating under the influence."

Brewer said the state welcomes the rideshare industry and offers a business-friendly environment. But the legislation would have increased costs for all drivers, put citizens at risk of insurance gaps, and subjected the public to danger because Uber drivers would not be drug-tested.

The bill was sponsored by Rep. Tom Forese, R-Gilbert.