(AP) - A California Senate panel is blocking legislation aimed at preventing ride-sharing services Uber and Lyft from adjusting their prices based on demand, a practice known as "surge pricing."
The measure fell one vote short in the Senate Transportation and Housing Committee on Tuesday.
SB1035 would have allowed the California Public Utilities Commission to regulate ride-sharing fares and operations, a shot at the companies' model of raising prices when demand is high.
It also would have sought stricter background checks for drivers.
The bill has drawn fierce opposition from technology leaders who warn it would dismantle the industry.
It was written by Democratic Sen. Ben Hueso of San Diego, whose family has longstanding ties to the taxi industry. He says it would impose a minimal protection for customers and drivers.
Follow us for more stories like this
CapRadio provides a trusted source of news because of you. As a nonprofit organization, donations from people like you sustain the journalism that allows us to discover stories that are important to our audience. If you believe in what we do and support our mission, please donate today.