Assemblymember Phil Steck, representing Colonie, Niskayuna, and Schenectady announced today that he has filed a bill legalizing transportation networks in Upstate New York. Steck said: “We have been working on this bill since the end of last session. We have studied the issue carefully. We believe this bill balances the needs of the transportation networks such as Lyft and Uber, as well as those of potential drivers and passengers.” The highlights of the bill are as follows:

• Contains lower insurance requirements than other current pending legislation. For example, it provides for single limit coverage of at least $500,000 for bodily injury and property damage and includes the current level of personal injury protection coverage required by State insurance law. Steck commented: “We do not feel these companies should be disadvantaged as compared to Taxi companies. Over $1 million in coverage is excessive. That is not even required in New York City.”
• Provides for one steady insurance requirement from the time the driver has committed to, or is in the course of, a prearranged ride. Steck noted: “While the companies say that their technology allows them to monitor various events during the ride, there is an advantage in simplicity. Three stages of insurance seem unnecessarily complicated.”
• Eliminates local control. The Department of Motor Vehicles will carry out the regulatory responsibilities necessary to implement the legislation statewide except in New York City, where the Taxi and Limousine Commission already governs these companies.
• Provides for background checks of drivers but not fingerprint background checks unless DMV has “reasonable suspicion” to believe the proposed driver is unsuitable. Steck commented: “This is a basic civil liberties protection for drivers. If there is a belief that the driver is unsafe, but there is uncertainty that the driver is really a person who should be disqualified, then a fingerprint check may be required under regulations issued by the Department.”
• Authorizes group insurance that the companies can buy for the benefit of all drivers. However, the legislation provides that the companies can back charge the drivers no more than 50% of the cost of the insurance. Steck added: “We want to ensure that the drivers are successful financially. They are classified by the companies as independent contractors, so they must already bear most of the costs associated with participating in the program.”
• Requires that drivers obtain a Class E license. Steck remarked: “This protects the safety of passengers and the expectations of commercial insurers who often insure drivers with such licenses. A Class E license is at the lowest level of commercial licenses and is not onerous to obtain.”

Assemblymember Steck concluded: “No one reasonably doubts that we need to improve auto for hire services in Upstate NY. But the way to do that is with thoughtful legislation not publicity stunts, unfounded accusations, or extremely expensive advertising campaigns. There is no taxi lobby of any kind that has hindered the development of legislation. The issue is simple: The Attorney General shut down one of these services because it was operating without insurance and was not in compliance with local control. Our bill addresses these issues in a fair and balanced way. We hope it will be helpful in achieving a compromise that will allow these services to operate.”