Upstate Uber

Bhairavi Desai, executive director of the New York Taxi Workers Alliance, center, speaks to reporters against allowing Uber and other app-based drivers to expand service to upstate New York, at the state Capitol on Wednesday, June 1, 2016, in Albany, N.Y. (AP Photo/Hans Pennink)

(Hans Pennink)

ALBANY, N.Y. -- A New York State Senate committee on Wednesday for the first time approved a bill that would allow ridesharing companies like Uber or Lyft to operate throughout the state, instead of just in New York City.

The Senate Insurance Committee passed the bill sponsored by Sen. James Seward, which would require drivers for so-called transportation network companies to have automobile liability coverage of a minimum of $1 million whenever they have a paid passenger in their personal vehicle.

Sen. James Seward

Seward, R-Oneonta, said that he's cautiously optimistic that the full Senate and state Assembly will approve the legislation before the legislative session ends June 16, despite strong opposition from the traditional taxi cab and limousine industry.

Some Assembly Democrats have said that App-based ridesharing companies should be required to ensure that their drivers use vehicles equipped to provide access for passengers with disabilities - which Seward's bill does not address.

The United Spinal Association sent Gov. Andrew Cuomo a letter this week urging him to veto any ride-hailing bill that does not require the companies to ensure that passengers with disabilities can access the vehicles. The group said Uber has independent contractors operating 30,000 cars in New York City, and not one of the vehicles is wheelchair accessible.

Nationwide, at least 23 states have passed laws or made changes to allow companies like Lyft and Uber to operate statewide. New York, so far, isn't among them.

That's why you can't catch an Uber or Lyft ride in Syracuse, but you can in more than 60 smaller U.S. cities, like Scranton, Pa., Flint, Mich., Erie, Pa., Waco, Texas, and Burlington, Vt.

"Upstate communities are clamoring for this option," said Seward, whose 51st Senate District includes Cortland County.

"We're still in discussion with the Assembly. They have a different version," Seward said. "Our approach is to deal with the insurance coverage for these transportation network companies and their drivers. The bill preserves local control over all the other issues. Handicapped accessibility, screening of drivers, would be determined based on local concerns on a community-by-community basis."

"These type of concerns that traditional taxi and livery services have about 'unfair competition' from the TNCs could be dealt with on the local basis, through local regulations of taxi and livery commissions that most communities have," Seward said.

David Beier, president of the Committee for Taxi Safety, said he doubts Uber's promise to create jobs upstate.

"They're not creating jobs, they're destroying an industry," Beier said.

But Seward said it will be a shame if state lawmakers don't pass a bill that gives Upstate consumers the ability to take advantage of app-based ride-hailing services.

"I would hope that the local government officials, mayors and others, who want this in their communities...it's incumbent on them to reach out to their Democratic members of the Assembly and say let's resolve these issues," Seward said.

Under Seward's bill, whenever a ride-hailing company's driver has a passenger in their car they must have auto insurance that provides a minimum of $1 million in coverage for death, bodily injury or property damage.

When they are doing business, but do not have riders in their car, drivers for ride-hailing companies would be required to have automobile liability insurance in the minimum amounts: $50,000 for death and bodily injury per person; $100,000 for death and bodily injury per incident; and $25,000 for property damage.

"Uber's low-paying, part-time only business model keeps drivers dependent on cruising long hours and barely earning minimum wage. Professional taxi and livery jobs across the state would be destroyed and replaced with low-paying, part-time only work," said Bhairavi Desai, executive director of the New York Taxi Workers Alliance, who led a rally opposing Seward's bill on Wednesday in Albany. "This legislation would be a disaster for drivers and puts the public at risk."





The Associated Press contributed to this report. Contact Mike McAndrew anytime | email | Twitter | 315-470-3016