State

Bill legalizing Uber and Lyft in New York state expected to pass

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State lawmakers have agreed in principle on the bill that could legalize ride-hailing services, such as Uber and Lyft, in Syracuse and elsewhere in New York state.

State lawmakers have agreed in principle on the bill that could legalize ride-hailing services in Syracuse and elsewhere in New York, according to one co-sponsor of the legislation.

John McDonald III, an assembly representative for the 108th district of New York state, said there “seems to be an agreement” among lawmakers on Bill A.08195’s insurance component, which has been the primary issue in efforts to legalize services such as Uber and Lyft in the state.

The bill is on the New York State Assembly Insurance Committee’s agenda for Wednesday, and McDonald said he expects it to pass through the New York State Senate and Assembly before the end of the legislative session on June 16. It would then need approval from Gov. Andrew Cuomo before becoming law.

Much of the controversy over ride-hailing services stems from critics’ concerns that the services are unsafe and that ride-hailing companies, unlike taxi companies, operate without providing their drivers with insurance. Currently, ride-hailing services can’t operate in New York, except for in New York City, because state law does not include the services in its insurance regulations.

If approved, the bill would require ride-hailing companies to provide their drivers with liability coverage, first party benefits coverage and uninsured motorist coverage.



When drivers are simply “logged onto” the company’s network but not transporting passengers, the bill would require ride-hailing companies to carry liability insurance of $100,000 for death and bodily injury per person, $300,000 for death and bodily injury per incident and $25,000 for property damage.

When a ride-hailing driver is transporting passengers, the bill would require companies to carry liability insurance of $1,500,000 for death, bodily injury and property damage incidents.

In both scenarios, those figures are significantly higher than insurance requirements for taxi drivers, McDonald said.

“Whether those numbers will hold up I’m not sure, but it does seem like there’s some consensus to deal with the insurance component,” he said, adding that lawmakers are hoping to satisfy both the general public and taxi companies in the state.

The bill would also require ride-hailing companies to supply their drivers with workers’ compensation, which provides workers with wage replacements in the case of work-related injuries.

McDonald said under the bill, local governments would have jurisdiction in managing background checks for ride-hailing services. Local governments would also have control over how accessible the services must be for people with disabilities, he said.

Even if the bill passes through the senate and assembly later this month, it could take several more months for it to go into law. McDonald said Cuomo takes “batches of bills” during different periods throughout the summer, making it unpredictable when the bill would reach the governor’s desk.

But McDonald also said he expects it will become law by the start of 2017, calling that a conservative estimate and saying it could happen sooner.

“The wheels are in motion to approve ride-sharing in New York,” he said.





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