Uber and Lyft are able to operate in New York City under the same regulatory scheme as traditional for-hire car services, but cannot operate upstate or in the city’s suburbs. | AP Photo Assembly would allow local regulation of ride-hailing

ALBANY — Democrats who dominate the state Assembly will give localities, rather than the state, the ability to regulate ride-hailing services, a key legislator said Thursday.

Assemblyman Kevin Cahill, a Democrat from Kingston, told POLITICO New York that he would be introducing a bill “very soon” to lay out his chamber’s vision for allowing ride-hailing apps like Uber and Lyft to operate. Legislation is expected before Monday and as soon as this week.


According to the Buffalo News, the Assembly bill would also raise the minimum insurance requirements for ride-hailing group policies. A dispute over coverage levels scuttled a legislative push to legalize ride-hailing in 2016.

The Assembly’s plan will differ from enabling language proffered by Gov. Andrew Cuomo in his executive budget in a key way: rather than vesting most regulatory authority with the state’s Department of Motor Vehicles, the Assembly plan would allow counties or municipalities to set their own rules regarding who can be a driver and how ride-hailing can operate.

“Statewide regulation would deprive our localities of the ability to tailor the industry to their needs,” Cahill, chair of the chamber’s insurance committee, said. “There may be communities that want this to be disrupted, and there may be communities that want it to seamlessly enter the arena. It is not ours to dictate where that happens.”

Cuomo’s plan would allow localities to regulate ride-hailing companies with respect to traffic and parking, but says requirements about who can drive are “exclusively” the domain of the state. Republicans who control the state Senate advanced legislation that pre-empted local regulation.

Uber and Lyft are able to operate in New York City under the same regulatory scheme as traditional for-hire car services, but cannot operate upstate or in the city’s suburbs. As such, upstate lawmakers have been among the most vocal advocates for the legislation, but have differed in the specific parameter. Several Republicans in the chamber said they support local regulation.

On Wednesday, officials from Nassau, Suffolk and Westchester counties wrote a letter to top lawmakers asking that they be allowed to regulate ride-hailing the same way they can regulate other taxi, livery and for-hire cars.

“Under the cover of state operating authority, we believe many of these companies and their agents will operate in violation of our local laws, thinking they are not responsible to our agents,” the officials wrote. “In addition, this new licensing scheme will create an unfair and non-level playing field for our local for-hire vehicle companies.”

Deputy Nassau County executive Charles Ribando told POLITICO that his county currently requires fingerprint and urine testing of commercial drivers, which would not be required under Cuomo’s scheme. Uber and Lyft perform background checks of their drivers, but have resisted fingerprinting requirements in other localities.

“Once it’s regulated through the DMV and the state, we lose,” Ribando said. “Our major concern is making sure people driving for-hire vehicles out here are responsible and they’re vetted properly.”

Uber officials have also said that a statewide regulatory scheme will enable them to operate with greater ease around New York. Alix Anfang, a company spokeswoman, said, "While we can’t comment on legislation we haven’t seen, we hope that the final compromise ensures that all New Yorkers have access to Uber."