New background check regulations for Uber, Lyft enacted in Texas

AUSTIN – Governor Greg Abbott signed a bill to create statewide regulations for ride-hailing companies like Lyft and Uber on Monday. The bill will void local rules set by cities.

When an election prompted Uber and Lyft to stop operating in Austin, lawmakers and city official disputed whether state or local government should regulate these types of companies.

Austin’s city ordinance required ride-hailing company drivers to get fingerprint background checks, which Uber and Lyft have resisted in other Texas cities.

Dallas didn’t require drivers to have these checks.

The bill Abbott signed requires companies to get a license from the Texas Department of Licensing and Regulation to operate their business statewide.

The new law goes into effect immediately.