COEUR d'ALENE - A bill to prohibit municipalities from regulating Uber drivers in Idaho has nearly cleared the Legislature, despite opposition from cab companies and cities, including Coeur d'Alene.

"The city sent a letter to legislators, voicing opposition to that bill," said Coeur d'Alene City Administrator Jim Hammond. "The concern cities have is for safety."

Uber is an Internet-based ride sharing service that pays ordinary citizens to give rides to customers similar to a taxi service. The difference is Uber riders can download an app on their phone or computer and request a ride and Uber drivers use the same app to find the rider and bill them. No cash changes hands.

Uber, a multi-billion-dollar company, collects the fare and pays the drivers 80 percent.

What worries the cities is the fact that anyone can become an Uber driver, with no requirements for a commercial driver's license, thorough background checks or additional insurance coverage.

While the bill includes a number of conditions an applicant must meet before the company can accept them as a driver, some cities and cab drivers don't believe it goes far enough to ensure all Uber drivers are safe.

In fact, the city of Boise tried to regulate Uber last year, so the company hired attorney Ken McClure, of Givens and Pursley, to push the bill through the legislative process.

If it passes, only the state will have the authority to regulate Uber drivers.

Meanwhile cab drivers have to go through a series of commercial licensing requirement, and multi-state criminal background checks to ensure they are safe. They must also obtain commercial vehicle insurance.

"We are not on a level playing field," said Al O'Grady, owner of Advanced Transportation Taxi and Shuttle Service. "Uber is a very dangerous company."

O'Grady specializes in shuttling customers between Coeur d'Alene to the Spokane International Airport. He has several licensing requirements and must get his vehicles inspected twice a year. He also has to purchase commercial insurance and undergo a background check from the U.S. Department of Justice.

He recently applied to be an Uber driver just to see what was required of them.

"They basically sent me to pick up a guy and all he did was make sure I used my turn signals and headlights," O'Grady said. "I wanted to check out the competition from the inside."

O'Grady said most Uber drivers probably don't realize the liability they incur by using their personal vehicles for commercial purposes.

He said there was an Uber driver in California recently who crashed his car with two Uber riders inside. The crash injured one and killed the other. The driver's personal automobile insurance denied the claim because he was using his personal vehicle for commercial purposes.

"These drivers have no type of formal training," O'Grady said. "In fact, a lot of insurance companies are starting to cancel policies if they find out you are an Uber driver."

Josh Tebbe, a partner at Redman and Company Insurance in Rathdrum, said most personal automobile insurance policies exclude "public and livery conveyance."

Tebbe said there is an exception for "shared expense carpooling," but otherwise collecting money to transport someone from one place to another would most likely be considered "public and livery conveyance."

"The insurance companies are not going to want to pick that up," he said, adding it's a relatively new subject in the insurance industry. He just learned about Uber about a month ago.

Blaine Svetich, owner of Coeur d'Alene Taxi and Limo Service, said he is totally against Uber and its business model.

"They are making a lot of money on the backs of unsuspecting college students," he said. "They are dangerous."

Svetich said Uber is banned in several countries, states and cities.

When he learned of the legislation banning cities from regulating Uber, Svetich called Gov. Butch Otter asking him to oppose the bill, which is expected to clear the Senate this week. Otter will have the last say on whether municipalities can regulate "transportation network systems."

He also applied to become an Uber driver, to see how well Uber investigates its drivers.

Svetich said Uber does background checks, but there is nothing stopping someone from giving it a false identity. It never even asked him for identification.

"I could say I am Johnny Cash, and they check me out and say 'OK,'" he said. "And there is nothing stopping me from handing the keys over to my nephew, who could be a pedophile."

Svetich said Uber drivers can loiter around airports and wait for Uber riders without having to secure an airport license like cab drivers do.

"I am required to get an airport license," he said, adding he has to obtain several other licenses and taxi insurance. "Yes it is expensive, and yes it sucks, but it's necessary to ensure public safety."

Svetich said he thinks the legislation will open Pandora's box.

"Why wouldn't they be required to get the same things we have to get?" he asked. "If they don't have to follow any rules, why should we?"

Hammond, who is a former state senator, said he hopes the full Senate or the governor will stop the legislation.

"If it passes, then caveat emptor," Hammond said, translating "let the buyer beware."