TOPEKA, Kan. (5/6/15)--The Kansas Legislature Tuesday overturned Gov. Sam Brownback’s veto of a bill that will better protect both credit unions that have loans on cars used by transportation network companies (TNC) and the drivers themselves.
With a 34-5 vote by the Senate and a 96-25 vote by the House, Senate Bill 117 will now become law, despite major opposition from Uber (The Topeka Capital-Journal May 5).
CUNA strongly supports legislation mandating that the appropriate amount of insurance--specifically comprehensive and collision coverage--is applied to vehicles used by drivers working for TNCs and that also have liens held by credit unions.
In fact, to supplement efforts by the Kansas Credit Union Association (KCUA) to push through Senate Bill 117, CUNA President/CEO Jim Nussle sent a letter to Brownback last month urging the state’s governor to sign the bill.
“The Kansas Credit Union Association and Kansas credit unions have been engaged throughout the discussions on SB 117 to ensure that drivers and vehicles are insured at all stages of the TNC transaction, protecting both the drivers and lienholders in the event of an accident,” Haley DaVee, KCUA vice president of governmental affairs/association services, told News Now in a statement. “We are glad to see that the Kansas Legislature recognized the importance of the provisions in this bill and voted to override the veto.”
CUNA recently announced that it will serve as a clearinghouse for expertise, guidance and information regarding TNCs (News Now April 27).
Credit unions require proper collision insurance to protect their collateral, and personal auto insurance policies are insufficient for commercial use, CUNA has said.
CUNA is also striving to protect credit union members from losses resulting from lapses in coverage, as TNC drivers generally use personal vehicles to provide the ride-sharing service, potentially resulting in gaps in coverage that can leave drivers uninsured.
Further, the nature of the job carries more risk than day-to-day personal driving activities, including transporting strangers, making more stops and dealing with the various distractions that can arise with additional people in the car.