The PSC says that Lyft and competing ride-share company Uber, which has announced its intentions to operate in Omaha, risk running afoul of state law.

"It doesn't change any of our concerns as to the potential dangers of the situation, particularly the reliance on the driver's personal insurance to be the primary coverage," Breiner said. "That personal insurance is not effective in a situation where they’re driving commercially, such as they would be as Lyft or Uber."

In the letter to ride-share companies, Breiner warned "any operations that you undertake in the state, as well as the persons who perform any such operations on your behalf, are violating state law. These violations will result in criminal prosecutions as well as civil penalties. Any vehicle that is used in these unlawful operations will be impounded as a public nuisance."

At this time, however, Breiner said the commission is not asking police to ticket Lyft drivers. “We’re making some contacts with Omaha and Lincoln police departments to address the situation, but at this time, no final determination has been made."

Thelen said that Lyft, which also launched in Omaha Thursday, has received the letter from the PSC and that the company wants to have an open dialogue with the regulation agency.