A "global agreement" cut between insurance companies and smartphone-based ride-sharing services like Uber extends to a compromise in Minnesota with legislation that would increase the company's mandated commercial insurance coverage without jeopardizing their presence in Minnesota.
A bill headed to the Senate floor mostly matches its House companion on how much rideshare services must insure drivers in “Phase One,” or after they’ve turned on the app but before they’ve triggered a button signaling that they’ve accepted a fare.
Under the dual pieces of legislation, Uber supply must supply its drivers in Phase One with minimum liability limits of $50,000 in death and injury liability coverage, $100,000 in total coverage and $30,000 in property damage. In phases two and three--after they’ve agreed through the app to pick up a fare and once the customer is in the vehicle—that coverage jumps to $1.5 million. (It remains $1 million in the House version.)
After lengthy debate over the nuances of the bill the Senate Judiciary Committee passed the measure, sending it to the floor for discussion after the Legislature returns from its two-week break.
The compromise comes a long way from an earlier Senate incarnation, which required Uber to furnish its drivers with $1 million insurance policies before their drivers accepted a fare. The legislation would have been the most stringent in the nation. While lawmakers backing the measure said it would close dangerous insurance loopholes, Uber representatives balked, saying the increased costs of such a requirement could determine whether the service expands—or even remains—in Minnesota.
Earlier this week, however, an agreement between the nation’s leading insurance providers and so-called Transportation Network Companies like Uber and Lyft helped shape the legislation.
Much of that tension was alleviated after Friday’s hearing. Uber Minnesota General Manager Kenny Tsai said the company would like Minnesota’s current legislation to more closely reflect the “global agreement,” but said “We’re about 99 percent there.” Tsai said the company would like legislation to provide standard definitions of what a Transportation Network Company is, and what a driver’s duties for that company are.
“I think the clarity that we’d like to have is that this insurance bill applies to a driver that we partner with, and the nature of the relationship between drivers and us is clear.” He said.
Mark Kulda, Vice President of Public Affairs for the Insurance Federation of Minnesota, said the organization is pleased with the legislation’s incarnation.
“This brings the clarity that is needed,” he said, adding that with emerging technologies like Uber and Lyft, the insurance industry will catch up as well.
“What is preserved in this is the ability for the insurance market to change and adapt,” he said, such as personal insurance policies that could include commercial policy provisions for drivers who want to work on the side for Uber or Lyft.
“There will be some new, innovative products that are actually in other states right now that will probably come here,” he said. “We can see the emergence of those new products hopefully within months. Having this now helps our industry say 'Hey, maybe we can adapt a product now the marketplace.”
Photo: Uber Midwest General Manager Michael White speaks at a "Save Uber" rally last week. Behind him are Twin Cities Uber drivers.
Problems with water damage, additional need for security improvements and other unforeseen costs have added $30 million to the cost of a major State Capitol building renovation, Gov. Mark Dayton and lawmakers learned Friday.
If the additional money is approved by lawmakers, it would push the total price of the multi-year renovation to about $300 million. Dayton and lawmakers discussed the additional costs Friday in a meeting of the panel overseeing the project, which also saw leading lawmakers second-guessing some of the decisions by the project's architects.
The biggest chunk of the additional $30 million in costs, about $17 million, is tied to addressing what the architects described as "water intrusion and settlement." Last spring, demolition work tied to the renovation uncovered evidence of widespread water leaks into the Capitol basement, particularly underneath two outdoor staircases on the east and west sides of the building.
Dayton and lawmakers expressed some irritation about the idea of having to pony up more money for the project, but there seemed to be bipartisan agreement it was probably necessary.
"I don't know what the alternative would be," Dayton said. Said Sen. Dave Senjem, R-Rochester: "This seems in order -- we're mobilized, we're in there already, let's do it right."
The additional spending has to be approved through the legislative process. Senate Majority Leader Tom Bakk, DFL-Cook, said some of that might be able to come from construction bonds, but also suggested a portion may have to come directly from the general fund.
About $20 million from a contingency fund for the project is mostly spent, which Dayton said was also unfortunate but not too surprising.
"It's a huge building and it's 109 years old," Dayton said.
After discussing the cost overruns, Dayton and lawmakers haggled with the project's planners about public access to the building.
Severall senators were upset with tentative plans to park school buses and place handicapped parking spots directly at the building's front, facing south toward downtown St. Paul.
Bakk and Sen. Ann Rest, DFL-New Hope, expressed a strong preference that school buses could instead be parked along the building's east side, on Cedar Avenue. Bakk noted that a new Senate parking ramp under construction just north of the Capitol would have a lot of handicapped spots.
Dayton, as he has previously, weighed in on the building's art. A recent assessment by Ted Lentz, an architect and member of the Capitol Area Architectual and Planning Board, valued the building's art assets as a stunning $1 billion, but Dayton has been critical of certain aspects of the art, suggesting it over-emphasizes Civil War battles and portraits of former governors.
A subcommittee of the Capitol Preservation panel has been working on envisioning how to highlight existing art and possibly incorporate new art, too. The panel on Friday backed a request for $3 million in additional dollars to restore existing art that in some cases is damaged.
Senate DFL leaders on Friday unveiled a broad budget outline that called for spending $42.7 billion in the upcoming biennium, about $250 million less than what Gov. Mark Dayton in his budget.
It follows the House Republican budget targets, released Tuesday, which called for a a budget of $40 billion, though it left out a chunk of spending. Republicans did not include in their total budget the more than $600 million in general fund dollars they would divert to road and bridge repairs in the next two years. Once that is factored in, as well as a $2-billion unspecified tax cut plan, the gap between the Dayton, DFL and GOP plans closes substantially.
The DFL proposal, characterized by Senate Majority Leader Tom Bakk as a "middle ground between the House Republican budget targets and Gov. Dayton's budget recommendations," would set aside $250 million to grow the state's budget reserve, or rainy day fund.
Bakk was vague Friday about what the DFL budget proposal will look like, but said details will become clearer in coming weeks as budget negotiations get underway.
The plan calls for $1.14 billion in new spending, about $730 million less than the projected $1.87 billion budget surplus. Of that, nearly half will be dedicated to education.
DFLer's tax proposal calls for $200 million in tax cuts, which is likely to include property tax cuts, said Senate Taxes Chair Rod Skoe, DFL-Clearbrook.
In a statement, Senate Minority Leader David Hann, R-Eden Prairie, criticized the DFL budget targets.
“The state budget should reflect Minnesotans’ values, but Senate Democrats clearly refuse to do the hard work Republicans are doing to eliminate wasteful spending," Hann said. "The Republican budget, on the other hand, is designed to increase family budgets and grow the state’s economy."
This is a developing story. Check back later for an update.
A bill that would protect people from being sued in retaliation for calling police cleared its first Senate committee Thursday, as advocates for the bill say it will protect others from the expensive, frivolous lawsuits they were forced to experience.
The legislation, which passed the Senate Judiciary Committee Thursday, would clarify the state’s anti-SLAPP statutes, which are designed to protect people who speak out in governmental activities or situations from being sued. (SLAPP stands for Strategic Litigation Against Public Participation.)
The legislation stems from controversy that began in 2010 when Jeffrey L. Nielsen was charged with disorderly conduct, theft and two traffic offenses after he was accused of taking campaign signs belonging to now-Grant City Council member Steve Bohnen. Nielsen was convicted of disorderly conduct while the other charges were dropped. Nielsen then sued Grant resident Keith Mueller, who reported him, along with Bohnen and Washington County, alleging fraud, conspiracy and malicious prosecution. It led to years of courtroom battles and hundreds of thousands in legal bills for the defendants, who were ultimately able to get their cases dismissed.
Mueller told the Senate Judiciary Committee that clarifying the state’s anti-SLAPP statutes to include calling the police as an act of public participation could have prevented his ordeal.
“While it’s too late for me to benefit from this law change, it’s important to me to clarify that reports to law enforcement are an act of public participation,” Mueller told the committee.
Bohnen testified that four years of legal distractions “compromised my ability to be a good father, husband, businessman and road commissioner.”
“I cannot stress enough the pressures that come with this type of legal attack,” he said. “I owe an excess of $1 million in legal bills, and my desire to call law enforcement has been effectively chilled.”
Jim Franklin, executive director of the Minnesota Sheriff’s Association, said Nielsen’s lawsuit against the Washington County Sheriff’s office was unlike any he had seen in 40 years, and backs the legislation.
“We as law enforcement—police, fire, sheriffs, EMS, live and die by these 911 calls. They are critical to our successful operations on a daily basis,” Franklin said. “If we don’t have people calling, cooperating and helping us, we are in deep trouble.”
The bill heads next to the Senate floor. A House version also awaits a floor vote
Suggesting any state government support for building a Minneapolis soccer stadium would be politically unpopular, Gov. Mark Dayton once again Thursday said he considers it highly unlikely that he or state legislators would provide subsidies to the emerging effort.
"I just think politically -- I think the term 'stadium fatigue' describes it," Dayton said Thursday, running through the last decade in which lawmakers approved major state funds to build Target Field, TCF Bank Stadium and the Vikings stadium now under construction. "That's with the Legislature, myself, the public. I just don't think there's any public appetite for taking on the financing of another stadium."
Major League Soccer Commissioner Don Garber was in Minneapolis a day earlier announcing the league's plans to move into Minnesota. A private group led by former UnitedHealth CEO Bill McGuire has set its sights on an site near downtown Minneapolis, but so far has declined to say whether the investors would seek a public subsidy.
Dayton said it's hard for him to comment on any prospect of a public subsidy. "I don't know what the ask is," he said. But as he did a day earlier, Dayton said the only sort of state response he could foresee would be in making routine transportation improvements to the site, which is near Interstate 94.
"If there's an exchange that MnDOT's involved in, that needs to be expanded, or there needs to be a new exit ramp" or the like, "I don't want to put myself into a corner and say none of that would be considered," Dayton said.
The governor said he was personally excited by the prospect of a new sports franchise. But he also said he didn't attend Wednesday's event because he didn't want to create the appearance he might be willing to back a major subsidy.
"I've tried to be very clear, in the indirect communications I've had with a number of principles, that in my view there's not going to be public support for subsidizing a new stadium," Dayton said. House Speaker Kurt Daudt, Senate Majority Leader Tom Bakk and Minneapolis Mayor Betsy Hodges have also spoken against the prospect of a subsidy.
"It's great you're coming. It's great you're trying to bring this franchise and excitement and opportunity to Minnesota," Dayton said. "But this time you're going to have to go it alone."