Ride hailing heading upstate after lawmakers cut deal

ALBANY — Ride-hailing services run from web platforms will expand to upstate New York this year after lawmakers worked out a deal on insurance and background-check requirements for drivers, a key lawmaker said Thursday.

The lawmakers also agreed to set up a task force that will make recommendations aimed at ensuring the rides offered by companies such as Uber and Lyft will be accessible to people with disabilities, Sen. Jim Seward, R-Milford, the chairman of the Senate Insurance Committee, said in an interview.

“This has been available all across the country, so I’m pleased now that this is moving forward in New York,” Seward said.

He said the agreement worked out by the Assembly, the Senate and the Cuomo administration calls for a system of background checks to be developed with input from the state Department of Motor Vehicles.

Those seeking to drive for a ride-hailing service will be denied if they have had three moving violations in the past three years, had a “major” violation such as reckless driving in the past three years or have been convicted of a felony in the previous seven years, the senator said.

“When people are getting into one of these vehicles, we want them to know they are getting into a safe situation,” Seward said.

The legislation allowing the ride services to expand to upstate communities was vigorously opposed by the lobby for taxi companies, the Upstate Transportation Alliance.

Its president, John Tomassi, predicted that, initially, there will be a surge in interest from people who want to be drivers for the app-based companies, but many of them will soon experience that it will be difficult to earn much money while paying for the upkeep of their cars.

Tomassi also suggested the victory by Uber and its allies is an example of well-financed special interests holding sway at the state Capitol.

“It’s disappointing that public safety took a backseat to the lawmakers being so enamored” with ride-hailing companies, Tomassi said.

He estimated his association spent about $25,000 on lobbying expenses while the other side of the argument poured in nearly $2 million.

Under the three-way deal, Seward said, a 4 percent tax will be tacked onto the fare charged to riders, with that money swept to the state treasury.

Counties, along with cities with populations greater than 100,000, could opt out of ride-hailing, but Seward said he doubts many local governments would want to keep the service out.

The companies would be required to provide insurance when drivers turn on their apps, head out to pick up fares and have riders in their cars. The highest insurance requirement is for those times when drivers are traveling to get riders or have them in their cars, times when the companies must have $1.25 million in blanket policy protection for bodily injury, death and property damage.

The New York taxi industry took a late jab at the legislation Wednesday afternoon after the Boston Globe reported that more than 8,000 Uber and Lyft drivers were turned down for licenses after failing enhanced background check requirements.

Those drivers had previously been approved by the companies despite having criminal records for offenses such as drunken driving and violent and sexual assault, the Globe reported.

Tomassi argued the report underscores the need for tighter screening in New York.

Joe Mahoney covers the New York Statehouse for CNHI’s newspapers and websites. Reach him at jmahoney@cnhi.com