Whitney M. Woodworth

Statesman Journal

Oregon legislators are preparing a bill that could allow ride-hailing apps like Uber and Lyft to expand beyond Portland and operate in cities across the state.

A legislative concept — a precursor to a bill — would create a statewide licensing system instead of city-by-city regulations. The bill would treat ride-hailing drivers as independent contractors, require the companies to obtain licenses, establish insurance requirements and demand criminal background checks on all drivers.

If passed, the bill could have wide-reaching impacts on cities like Salem, Eugene and Bend, which have long-debated how to balance allowing companies like Uber to operate with existing regulations.

Uber spokesman Jon Isaacs said the move could offer Oregonians safer streets, safer options, cleaner air and less congestion.

The addition of a statewide law would also create consistent standards and rules to keep riders safer and drivers insured, he said.

Current regulation allows a rider to hail a ride from Portland International Airport to Salem but not the reverse.

"We're encouraged that Oregon is considering joining the 38 other states that have passed comprehensive, statewide ridesharing regulations," Lyft spokesman Scott Coriell said.

Salem City Hall has made moves in the past to try to accommodate Uber, though the company has never set up permanent operations in the state capital.

Ride-sharing companies have faced push-back from local governments in Willamette Valley cities where officials said it needed licenses. Uber and Lyft came to Portland in 2015 but struggled to take root in cities like Eugene and Salem.

Salem Mayor Chuck Bennett advocated for Uber to come back to Salem even before he was sworn in January.

He said on Friday he would be supportive of a statewide bill but thinks Salem should have "it's own set of rules."

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The wheels of the legislature turn more slowly than the city's, he added. A proposed bill would go through a series of hearings and committees before it's signed. Even if it's readily passed, it could be fall or even 2018 before it goes into effect.

In comparison, Salem City Council should be holding additional hearings on ride-hailing services in the next few weeks, Bennett said. Uber and Lyft could be coming to the city in as little as two months.

Regardless of which governing body brings ride-hailing apps to the city, he said, the service would be welcome.

It would bring hundreds of flexible, part-time jobs, allowing people to supplement their income, and help residents move more easily around the city.

"It would provide a service we badly need," Bennett said. "It's a service people want."

In a Statesman Journal poll, 63 percent of responders said they would like to see Uber in Salem. Many cited the flexibility of the app and the ability to use it to safely visit the city's many bars and breweries. Of those that said no, the majority said it was because they didn't agree with the companies' business practices.

On Feb. 16, the Bend City Council approved a new taxi code that would allow companies like Uber to begin operating in the city as earlier as May, according to the Bend Bulletin.

The bill remains in concept form, but co-sponsor Rep. Brian Clem, D-Salem, said it should be written into a proposed bill sometime next week and assigned to a committee. The committee should hold public hearings mid-March, and the bill could go to vote in April.

The concept states the changes begin on Jan. 1. 2018. Clem said an emergency clause would allow it to go into effect sooner. After that, ride-hailing services could immediately start going into cities like Salem, Eugene and Medford, he said.

Co-sponsor Rep. Jodi Hack, R-Salem, said she knew many residents and leaders in her district wanted to have the option for ride-hailing apps. Bennett's recent State of the City address spurred her to be supportive of city hall's effort to allow the services.

"It's important to Salem," she said.

Clem, too, said he knew the addition of services like Uber was a top priority for Bennett. He labeled ride-hailing apps as part of the "wave of the future."

When the legislature previously discussed the service, many legislators, including Clem himself, didn't use the apps. Now, he said, he uses it all the time. Clem was interviewed while at an airport. Once he landed, he planned to hail an Uber or Lyft — whichever one was quicker — and take it to his destination.

He said he doesn't expect much push back from the public. His office worked with the services and local groups to draft the concept, and he said he wanted to put an emphasis on protecting riders.

The legislative concept proposes that ride-hailing services would be required to obtain a license from the Department of Consumer and Business Services for a $5,000 fee. Each company would also have to keep records of each prearranged ride and files on each driver.

The company would be required to conduct a criminal background check, search the national sex offenders database and review the driving records of each driver. Those who have had certain traffic violations like careless driving in the past three years or felony, DUI, reckless driving, sex offenses, domestic violence assaults convictions within the past seven years will not be able to be drivers.

The addition of ride-hailing has the potential to help build local economies, he added. Drivers can earn extra income in their hometowns. Studies also show that those with access to apps like Uber and Lyft stay out longer and spend more money at local businesses. The services also provide transportation options to under-served communities, Isaacs said.

Lee Lynch, general manager of Willamette Valley Yellow Cab, conceded that the growth of ride-hailing apps like Uber is changing the industry. Instead of focusing on fighting against it, he said he wants to embrace what makes the family-owned Salem company great. He ticked off a list of benefits: drivers are trained in defense-driving courses, learn first-aid and CPR, accommodate those with disabilities and provide 24/7 service.

"When the snow and ice comes, we don't stop," Lynch said.

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During recent winter weather, several Willamette Valley cabs, which are equipped with snow chains, offered free rides to warming shelter volunteers.

Lynch also added that the company treats their workers like full-time employees, providing good, clean vehicles and assisting stranded vehicles.

"We support our employees," he said.

User-friendly, accessible ride-hailing apps can also help reduce impaired driving, according to traffic safety groups. Peak times for the services tend to be around the times bars and restaurants close.

"I do believe that having services like Uber increase the likelihood that those that have made a poor decision to drink and potentially drive, have another option to arrive home," said Janelle Lawrence, Executive Director of Oregon Impact, a community organization that holds educational events on impaired and distracted driving.

Drivers will be treated as independent contractors. Insurance coverage would be required to cover a limit of $100,000 per incident while a driver is connected to a digital network and a limit of $1 million while a driver is providing a prearranged ride.

Isaacs said these regulations ensure coverage is consistent no matter where in the state the ride is being given.

"Uniform regulations will provide clarity for drivers and passengers and will allow Lyft to bring safe and affordable transportation options to all of Oregon," Coriell said. "We look forward to continuing a public discussion about the benefits ridesharing."

For questions, comments and news tips, email reporter Whitney Woodworth at wmwoodwort@statesmanjournal.com, call 503-399-6884 or follow on Twitter @wmwoodworth