Christie signs law regulating Uber, Lyft

Gov. Christie on Friday signed into law legislation that regulates ride-hailing companies such as Uber and Lyft, establishing consumer protections for such things as criminal background checks for drivers and insurance requirements.

"This legislation makes it easier for this innovative business model to conduct business in our state, creating earning opportunities for our residents, and providing transportation services that are already in high demand," Christie said in a statement.

"This law ensures app-based ride services abide by safety and service standards, protecting riders, motorists and our roadways through commonsense drug, alcohol, inspection and background screenings, and requiring adequate insurance policies."

Under the law, ride-sharing companies are allowed to conduct their own background checks. If the state attorney general determines that the vetting procedures are insufficient, driver applicants would have to submit to state police checks.

Opponents of the legislation had argued that would-be drivers should have to submit to fingerprint tests as part of a background check. Limousine drivers are required to take such tests.

The law also requires ride-hailing companies to maintain $1.5 million in commercial auto insurance.

"Today's action allows us to continue operating across the state and will improve the lives of New Jerseyans through access to safe, affordable transportation for riders, and flexible economic opportunities for drivers," Uber said in a statement.

New Jersey is the 36th state to adopt a ride-sharing law, according to Uber. Gov. Wolf signed legislation last year that allowed companies such as Uber and Lyft to operate in Philadelphia.

The New Jersey law prohibits such companies from discriminating against riders based on race, age, and sexual orientation, among other things.

In a win for the limousine industry, which opposed the ride-sharing law, Christie on Friday also signed legislation eliminating a requirement that limousines collect sales and use tax for rides that originate in New Jersey.

The law takes effect May 1.