At one end, I think it's perfectly reasonable for the state to require more insurance coverage for Uber drivers since there will be more risk involved than a regular driver.
Background checks required by state? That's Uber's job to decide, and they do it anyway. If Uber doesn't do background checks, and there are incidents (even a small number) it will hurt their business at the end of the day. It's in their best interest to do the background checks in the manner they please.
This is a weird situation where Uber doesn't want to "employ" it drivers and pay for w/e is needed for them to do business, but at the same time their drivers require them to provide them with everything to do their job and now their source of income (employer) left the state and them jobless.
I wish we were provided with more details like how much this background check/insurance would cost. They already do both (Uber does a background & provides commercial insurance coverage) so honestly this half-written articles do nothing but make people even MORE confused on how Uber REALLY does business.