Jon Campbell, and Joseph Spector

The Journal News

ALBANY - Ride-hailing companies like Uber and Lyft could begin expanding across New York as soon as July under a framework agreement at the state Capitol.

Lawmakers were briefed late Wednesday on the details of a deal between Gov. Andrew Cuomo and legislative leaders to regulate ride-hailing services statewide, a move that would clear the way for Uber and Lyft to expand outside New York City, where they already operate.

The tentative deal is expected to be included in a final state budget for the fiscal year that starts Saturday.

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The measure would task the state Department of Motor Vehicles with regulating the ride-hailing industry, which has rapidly expanded across the country.

But all counties outside New York City and four large cities — Yonkers, Rochester, Buffalo and Syracuse — will have the option to ban ride-hailing apps within their boundaries, according to Assemblyman Kevin Cahill, a Kingston Democrat who chairs the Assembly Insurance Committee.

Agreement nears

The pending deal is a compromise after months of negotiations between Cuomo and top lawmakers, who had to navigate disagreements over issues like insurance-coverage limits and whether local governments should have any say in regulating the industry.

"We had a variety of views, and we were doing our best to bridge those differences," Cahill said Thursday.

"I think, at the end of the day, what the (Assembly) speaker preliminarily agreed to and what was presented to our conference last night was a product that most people felt was close enough."

The planned ride-hailing law would take effect 90 days after it's passed, according to Cahill. But since it's being tucked into the budget, the clock wouldn't start until the budget is passed.

Cuomo and lawmakers had been nearing accord on a budget agreement in recent days, but a final deal had not yet been reached as of Thursday afternoon.

As of Thursday evening, no bill language laying out the ride-hailing compromise had been publicly released, though lawmakers had begun publicly discussing details of the tentative agreement.

"We are hopeful that lawmakers will soon reach a compromise to ensure that New Yorkers will gain access to affordable, reliable transportation options," said Alix Anfang, a spokeswoman for Uber.

Finer points

Insurance limits and local control had been central sticking points in the ride-hailing talks, and the compromise appears to split the difference.

Assembly Democrats had been pushing to allow local governments to regulate the industry, rather than the state, while Cuomo and the Senate GOP were pushing for a statewide structure.

The pending deal includes an opt-out system, which would allow counties and the four large cities to prevent ride-hailing services from doing business within their borders.

The agreement doesn't apply to New York City, where Uber and Lyft operate under the city's taxi structure. That structure will remain in place for the companies.

Outside New York City, Cahill said the agreement calls for higher insurance coverage limits for ride-hailing companies than what was originally proposed by Cuomo.

According to Cahill, the companies will be required to have $75,000/$150,000 coverage for its drivers when they have the app open, but have not yet arranged to pick up a passenger.

That means the policy would cover $50,000 in injury claims per person and $100,000 in total claims per accident.

After a driver has arranged to pick up a passenger, the minimum coverage limit would be bumped up to $1.25 million, with $250,000 in supplemental coverage, Cahill said.

Cuomo and Senate Republicans had proposed $50,000/$100,000 coverage when a driver hadn't yet arranged to pick up a passenger and $1 million after they made an arrangement.

Assembly Democrats had been pushing for as high as $100,000/$300,000 and $1.5 million, respectively.

Lobbying battle

The state Trial Lawyers Association, a potent lobbying force in Albany, had also been pushing for higher insurance limits, while Uber and Lyft had pushed for the lower amounts.

Ride-hailing companies, meanwhile, would be required to participate in the Black Car Fund, a New York City-based workers compensation program that tacks a 2.5 percent surcharge on fares to cover drivers if they're injured on the job.

Still unresolved, according to Cahill, is what level of tax would be levied on ride-hailing trips and how exactly it would be split up. Two lawmakers briefed on the plan said it will likely include a 4 percent sales tax.

Public transit systems and local governments have been pushing for a share of any tax revenue that is generated.

Cahill said the tax issue, however, wouldn't be enough to derail any potential agreement.

Debate continues

The ride-hailing comes after an aggressive lobbying push by Uber and Lyft, companies that allow riders to hail and pay drivers through an app on their smartphone.

In January and February, Uber and Lyft spent more than $700,000 total on lobbying and advertising in New York, on top of the $2.7 million they spent in all of 2016, according to state records.

Taxi companies and drivers were among those who had pushed back, arguing that ride-hailing apps should be subject to the same local regulations they are.

John Tomassi, president of the Upstate Transportation Association, a coalition that includes taxi companies, said the pending deal was "bought by Uber and would make upstate passengers less safe than those in New York City."

"If state lawmakers aren’t willing to make Uber fingerprint its drivers statewide, they must allow local governments to make that choice for themselves," he said.

Various state lawmakers praised the agreement, saying it will give upstate and suburban residents have more transportation options.

"Suburban and upstate residents deserve the same ride sharing opportunities as their neighbors in New York City," Assemblyman Ken Zebrowski, D-New City, Rockland County, said in a statement.