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Iowa Gov. Terry Branstad has signed a bill into law that creates new statewide rules for ridesharing companies such as Uber and Uber to do business in Iowa.

Branstad signed the bill this week following approval this session in the Democratic-controlled Senate and Republican-majority House.

The law establishes a new regulatory system for companies that let people use smartphones to pay for prearranged rides. It will require liability insurance for vehicles, add background checks for drivers and change licensing expectations. State regulators would also have the authority to ensure compliance.

A representative for Uber says the new law mirrors similar legislation enacted in more than two dozen other states. The industry, which is still fairly new, has faced criticism over concerns about public safety for customers.

Topics Legislation Personal Auto Sharing Economy Ridesharing