There has been significant misinformation in regard to Uber and Lyft, the ridesharing applications that are currently heavily lobbying Upstate New Yorkers in a multi-million dollar campaign.

Under a settlement between the New York State Attorney General and Lyft, ridesharing applications are legally able to operate in Upstate New York providing they (1) meet New York State Auto Insurance Standards and (2) they comply with local rules and regulations concerning vehicles for hire. The Attorney General had stopped them from operating because of non-compliance with both of these principles.

This compliance simply requires a local entity with oversight of the drivers to allow for a modicum of safety for the passengers and other motorists. In New York City, the oversight authority is the Taxi and Limousine Commission of the City of New York (TLC). The ride-sharing applications have complied with the rules of the TLC.

Assemblyman Steck commented: "To comply with basic regulatory standards is not too much to ask of multi-million dollar companies to ensure the safety of customers. Nor do the regulations have to be to the same standard of New York City, where taxi service is far better than here, because we do want to facilitate these companies operating Upstate. There is no question that the current taxi situation in the Capital District is unacceptable. Uber and Lyft would be a great addition to our marketplace. But I cannot in good conscience agree to allow a business, which does not actually have any direct employees as drivers, to operate here without a establishing a modicum of safety for passengers. Nevertheless, in recognition of the importance of this issue to many of my constituents, we should pass the insurance bill now and work to make appropriate corrections later."

To comply with the New York City regulations, Uber drivers need only comply with a few basic steps:

1. Complete a defensive driving course within the last 3 years and be examined by a doctor within the past 90 days
2. Upgrade your driver’s license to a Commercial Driver’s License (CDL)
3. Submit an online application "For-Hire Driver" license ($84/year for 3 years)
4. Submit to a TLC drug test and background check ($100)

Current statute dictates that local municipalities are responsible for the oversight of vehicle for hire services in New York State. Assemblymember Steck is calling for a regional approach to bring this much-needed service to the Capital Region.

“Local municipalities do not have the time or resources to provide adequate oversight for either taxis or ridesharing drivers, and Uber and Lyft drivers should not have to be regulated to death by different standards throughout Upstate. A regional entity like CDTA would be best suited to provide the oversight for drivers to operate throughout our region.” said Assemblymember Steck “I recently co-sponsored legislation and voted to have CDTA contract with local municipalities to provide oversight for our current taxi service, which is in dire need of regulatory oversight – an example of exactly just how bad a service can be without oversight. They, or another established regional entity, would be able to do the same for ridesharing drivers so that we can get them on the road as soon as possible.” In that regard, he noted that the CDL requirement might be overkill in Upstate New York, but that would be up to the regulatory body to decide.

One challenge in regulating Uber and Lyft is that these drivers are not employees. For that reason, these companies are exempt from the laws that prohibit discrimination on the basis of age, race, sex, and disability. Nor, for the same reason, are the companies responsible for criminal or other wrongful acts drivers commit while in the service of Uber or Lyft. If they were, drivers would be appropriately screened in the best interest of the safety of passengers and other motorists. These, and appropriate insurance requirements, should be in effect from the moment the driver turns the app on until the moment it is turned off.

A bill to establish insurance standards was reported out of the New York State Assembly Insurance Committee, but the question of non-compliance with local municipal rules has not been addressed. Steck pointed to the recent pull-out of Uber and Lyft in the city of Austin, Texas after losing a referendum vote, where ride-sharing companies did not want to cede to local control. In this vote, residents were asked to decide whether a transportation ordinance, requiring finger-print based criminal background checks and passed by their City Council, be repealed and replaced with one backed by the ride-sharing companies that did not require the background checks be finger-print based. It should be noted that Uber and Lyft spent approximately $8 million to lobby the voters of Austin, Texas to repeal finger-print based criminal background checks. The voters decided to uphold the City Council’s decision.

Steck added: "Uber and Lyft should have the right to operate in Upstate New York, and we support that right. But, like any other business, they should not operate on terms set solely by them. Government has an obligation to make sure that they operate safely and fairly.”