Uber a Go by July 4th

Ride-hailing companies like Uber and Lyft will be able to operate statewide — including here on eastern Long Island — just before the July Fourth weekend following the approval by Gov. Andrew M. Cuomo on Monday of a bill passed by state legislators that will speed up the process.

The state budget adopted in April included a law that removed “transportation network companies” from local regulation, in reference to all companies through which riders use an app to summon cars. The State Department of Motor Vehicles will now be responsible for regulation. State legislation usually goes into effect 90 days after approval, but the action by lawmakers this week shortens the period, allowing companies to offer services as of June 29. Mandatory background checks for drivers and ongoing monitoring of compliance with traffic safety regulations will be required.

In East Hampton Town, where because of a business model that considered drivers to be independent contractors, Uber had been unable to continue service after the town adopted taxi-licensing regulations requiring companies to have offices within the town and vehicles used by drivers-for-hire to be owned by licensed companies. The state legislation overrides local rules.

While the state law allowed counties of a certain size, including Suffolk, to opt out of the legislation, potentially blocking ride-hailing services within their borders, Suffolk County Executive Steve Bellone held a press conference on Tuesday to welcome Uber, Lyft, and similar companies to the county.

Being able to use the app-based car service will “afford residents better access to transportation options” and help generate spending by passengers that will bolster the local economy, according to a county press release. 

“Any regulation of Uber or ride-sharing by local towns and villages is pre-empted,” State Assemblyman Fred W. Thiele Jr. said.

  While Southampton Town did not take as strong a stance as East Hampton, officials passed a law before last summer that required drivers for these companies to register with the town, just as other taxi drivers are required to do. The new state law also overrides Southampton’s requirements.

Supervisor Jay Schneiderman said he was a fan of ride-hailing services and saw the benefit they provided, adding that he was in favor of leveling the playing field. In legislation introduced by Councilman Stan Glinka, Southampton Town brought in $150,000 in licensing fees last summer from Uber and Lyft drivers, the supervisor said. James Burke, the town attorney, noted that the new state law will cause a loss in revenue, but said “a fair amount of work” in the office of the town clerk and Police Department had gone into licensing drivers.

Before East Hampton updated its regulations, in 2014, local taxicab operators had complained about competition from an influx of Uber drivers, and some residents had complained about chaotic and unsafe situations during the busy summer season as drivers jockeyed for customers. Some Uber drivers from out of town were also said to be sleeping in their cars overnight.

In June 2015 more than 20 Uber drivers were charged in East Hampton with misdemeanors including not having a town taxi license. Uber suspended service here, but mounted a campaign to have its customers protest the East Hampton regulations. The town maintained its position, with Supervisor Larry Cantwell saying the regulations were necessary to rein in the situation and maintain public safety. “This has never been about East Hampton versus Uber,” he said.

When discussion of the state legislation on ride-hailing began, Mr. Cantwell wrote to the governor saying the vehicle-for-hire industry, including Uber, “profoundly . . . impact[s] our community.” He said the “questionable tactics and actions” of 89 taxi and livery companies operating close to 1,100 licensed vehicles in the town were overwhelming public safety resources, and he cited roadway congestion, limited parking, and “literally fighting over fares.”

The town’s taxicab regulations, the supervisor wrote, were “very successful” and welcomed by the local business community and the public. He asked the governor to allow municipalities to maintain at least a degree of local control.

Even with state regulations in effect, East Hampton will be allowed to require Uber and similar companies to comply with certain restrictions that pertain to all taxicabs here. The town board recently moved to put several pertinent provisions, regarding parking and sleeping overnight in cars, in a section of the town code that will apply.

With Reporting by Taylor K. Vecsey