Ride-sharing apps like Uber and Lyft have taken a step toward becoming legal in communities outside New York City.
A bill, sponsored by Senate Insurance Committee Chairman James L. Seward and passed by a 55-5 vote in the Senate, provides the framework for ride-sharing companies to expand their operations statewide.
“We are encouraged to see that the Senate and the governor are listening to the voices of New Yorkers over those of special interests and making ride sharing a priority. It is now time for the Assembly to do the same and ensure that upstate has what New York City and 47 other states have,” according to a statement from Uber.
Proponents of the bill said it would improve local economies and enable the creation of jobs.
“Ride sharing has the potential to be of great benefit to the economic health of local communities,” state Sen. Terrence Murphy said in a statement. “Through the use of mobile phone apps, local transportation network companies like Uber and Lyft will be able respond to connect riders with transportation that matches their specific needs.”
Murphy added that these companies would provide an affordable transportation option to underserved areas, reduce the incidence of drunken driving and ease traffic congestion. Murphy did not return requests for additional comment.
The bill would alter insurance laws in New York state, which have complicated the passage of such legislation in the past, and allow ride-sharing companies to take out group policies for their drivers. The bill requires insurance coverage levels of $50,000 per person and $100,000 per incident when drivers are without passengers and at least $1 million of coverage while a ride-share vehicle is transporting a passenger. In New York, all drivers are required to have minimum coverage of $25,000 per person and $50,000 per incident.
Cassandra Anderson, a spokeswoman for New York Insurance Association, said these liability coverage amounts are more appropriate than others that have been proposed in the past.
“The coverage amounts align with the national model that has been adopted in more than 30 states,” she said.
Insurance requirements played a part in the death of a Senate-passed ride-sharing bill in the Democrat-controlled Assembly in 2016. The Assembly’s bill required higher coverage for drivers: $100,000 per person and $300,000 per incident when the car is not being used for service and a $1.5 million policy when riders are in the car.
“It is essential that as this issue continues to be discussed that unreasonably high levels of liability coverage are not mandated,” New York Insurance Association President Ellen Melchionni said. “Excessive liability coverage will make it so these services cannot be offered at an affordable rate across the state.”
In the recently passed Senate bill, criminal and driving history background checks would also be required for all ride-sharing drivers, along with the adoption of nondiscrimination and zero-tolerance drug and alcohol policies.
However, the bill does not include language that would require fingerprint background check of drivers, something groups such as the Upstate Transportation Association have sought.
The bill also creates a task force that would identify and address barriers to and opportunities for greater access for New Yorkers of all abilities and includes drivers in workers’ compensation insurance offered through the existing Black Car Fund.
The Senate bill also differs from Gov. Andrew Cuomo’s ride-sharing proposal included in his executive budget last month. While the $152 billion executive budget includes a 5.5 percent tax on rides that begin outside of New York City, the Senate’s measure cuts that tax to 2 percent and does not subject rides to the 4 percent state sales tax.
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