Pub. 4 2015 Issue 4

l e a d i n g a d v o c a t e f o r t h e b a n k i n g i n d u s t r y i n k a n s a s 6 T he potential negative financial impact of Transportation Network Companies (TNC) on Kansas bankers was barely a blip on KBA’s legislative radar screen heading into the 2015 state legislative session. The rapid growth of this industry wasn’t completely foreign to KBA staff, which had witnessed a brief update on the liability battles being waged between these companies and a handful of large municipalities, but it appeared those deliberations would likely be worked out long before any of these TNC’s descended upon Kansas. When state lawmakers gaveled-in the 2015 state legislative session back in January, KBA had no idea that Uber Technologies, Inc., a 40+ billion dollar San Francisco firm had Kansas and most of the nation in its sights for legislation that would establish insurance standards that were developed without an ounce of input from the financial services sector. While some in the media were repeatedly duped by claims that Kansas lawmakers were imposing unreasonable and onerous regulations on these tech savvy, app-driven transportation network companies, the simple fact is this year’s TNC debate in Kansas was launched by Uber Technologies, Inc. when they introduced House Bill 2249. In addition to establishing insurance standards that ignored the reality that TNC drivers with liens on their vehicles would likely be violating their loan agreements, Uber’s proposed legislation also established costly hurdles designed to discourage small localized TNC’s from forming in Kansas and even called for the state to preempt TNC’s from local regulations that apply to more traditional taxi/cab companies operating in a handful of Kansas cities. Uber’s strong-armed lobbying tactics have enabled them to achieve success with a number of state legislatures, but being bullied in the name of “innovation” didn’t sit well with state lawmakers who understood the company’s real objectives. Kansans, including those that serve in the state legislature, tend to adhere to principles such as one I recall being part of the FFA Creed I learned as a freshmen in high school. The FFA creed has evolved a bit over the past thirty years, but “playing square with those whose happiness depends upon me” remains intact and hasn’t been discarded for something more vogue or dare I say innovative. The simple fact is that Uber wasn’t interested in “playing square” with the Kansas banking industry that helps make their fleet of TNC drivers possible. Uber wasn’t even willing to “play square” with their own contracted drivers that were being misinformed their personal auto policy was all they needed. The reality that Uber wasn’t playing square led to three overwhelming votes (including overriding a gubernatorial veto) by the Kansas Legislature to establish reasonable insurance and safety standards for TNC companies. KBA commends the many state lawmakers that remained steadfast during the long and sometimes contentious debate on this matter. Senate Financial Institutions & Insurance Committee Chairman Jeff Longbine (R-Emporia) and House Insurance Committee Chairman Scott Schwab (R-Olathe) deserve special thanks for the many, many hours they invested in forging a compromise that establishes a new state law requiring comp and collision insurance coverage for all TNC drivers in Kansas. At the end of the day, KBA is pleased the final compromise legislation (Senate Bill 101) recently signed by Governor Brownback has Uber back in business in the sunflower state, but we’re even happier that good ol’ fashioned common sense won the day at the Kansas Statehouse. KBA LEADERS LEDGER GOOD OL’ KANSAS COMMON SENSE WON THE DAY ON TNC LEGISLATION By DougWareham, EVP-Government Relations Centered around: • Same scope and approach as bank regulators • Community bank specific • Processes • Technology • People Services: IT Audit, Penetration Test, Vulnerability Assessment, and Social Engineering. IT Audit Bundle Starting at: * $5,500.00 + Travel & Expenses *For banks under $50 million Contact Matt Keller for more information. ( 785) 594-0503 matt.keller@protectmybank.com Secure Banking Solutions, LLC • www.protectmybank.com Its not a secret anymore, small banks CAN afford the best!