Date: 07/08/2015

Final
Common Carrier Regulation (pursuant to HB15-1316)

TRANSPORTATION LEGISLATION REVIEW COMMITTEE

Votes: View--> Action Taken:
<none><none>




02:10 PM -- Common Carrier Regulation (pursuant to HB15-1316)

Doug Dean, Director, PUC, provided an overview of three tiers of taxicab service regulation depending on the service area: regulated competition in counties outside the Denver metro area, modified regulated competition in the Denver metro area and El Paso county, and regulated monopoly for all other areas. He discussed how regulated monopoly allows existing common carriers to limit new companies if they can prove that new competition would be detrimental to the public interest. He discussed House Bill 15-1316 and the PUC's role in limiting the size of regulated competition.


02:16 PM

Representative Tyler asked why the state should be regulating taxicab companies. Mr. Dean explained that state law requires the PUC to regulate common carriers and described the commission's existing authority to set rates. He said that there have been no new rate cases for the last ten years and that the fare pricing has remained relatively constant during this time. He discussed the complexities of taxicab pricing, how taxicab companies make their money, how lowering rates could hurt drivers, surge pricing, and the need for market fairness. He responded to questions from the committee regarding the need for future taxicab regulation, equity between TNCs and taxicab companies, and how the PUC is working with taxicab companies.


02:23 PM

Ron Jack, Chief Operating Officer, PUC, discussed the process of drafting consensus rules for TNCs. He said that the PUC has been very successful in working with TNCs and plans to take the same approach when the PUC revises rules for common carriers. Representative Tyler asked if the PUC saw a need for changes in legislation. The panel reviewed areas of negotiations between TNCs and taxicabs where the different parties lacked consensus. Discussion ensued regarding the rulemaking process, how federal rules impact state regulations, how HB15-1316 applies differently to TNC drivers and the parent companies, how the PUC cross-checks the hours of service for taxi drivers, and challenges with collecting data from TNCs.


02:32 PM

Mr. Dean and Mr. Jack responded to questions from the committee regarding how other states are handling issues with TNCs and taxicabs. The panel explained that Colorado was the first to legislate TNCs and other states are looking to Colorado as an example. Discussion ensued regarding implementing a study of TNCs, background checks or fingerprint checks for drivers, and separate laws requiring DORA to fingerprint individuals.


02:38 PM

The panel responded to questions from the committee regarding nonconsensual tows.

02:42 PM -- Max Sarr, General Manager, Freedom Cab, came to the table and introduced himself. He discussed how TNCs have more advantages than taxicab companies, how taxicabs have been charged with large fines for violating safety and hours of service requirements, and how taxicabs are losing business to TNCs. He suggested that if TNCs and taxicabs could not have similar regulations then the legislature should deregulate taxicabs. Mr. Sarr responded to questions from the committee regarding whether the hours of service limitation for taxicab companies should be eliminated.

02:49 PM -- Diane Burtolin, representing Metro Taxi, gave a history of taxicab regulations and the government's role in ensuring safe transportation and serving the public without discrimination. She said that the taxicab market is a social structure that is regulated to serve the consumer. She discussed the benefits of regulation including how it reduces the public's safety concerns and increases predictability. She provided an example of deregulation in the Netherlands and discussed the many factors to consider if the government plans to reduce regulation. She responded to questions from the committee regarding other laws in the Netherlands that may have taken the place of regulation and what the country's regulations look like today.

03:05 PM -- Julie Reiskin, Executive Director of the Colorado Cross-Disability Coalition, distributed a handout (Attachment H). She said that Metro Taxi and Yellow Cab have voluntarily integrated accessible vehicles into their fleets. She said that by not requiring taxicab companies to provide accessible vehicles, the state is effectively punishing the companies that do provide them. She discussed data showing the high number of wheelchair users in the Denver metro area, how Winter Park is a top tourist destination for wheelchair users, the need for accessible taxis during snowstorms or for getting to the airport, the challenges with transporting electric wheelchairs, and who can qualify for the "Access-a-Ride" service. Ms. Reiskin responded to questions from the committee regarding whether an accessible vehicle can be used as a regular taxicab and whether Uber offers accessible vehicles.

0708TransAttachH.pdf0708TransAttachH.pdf

03:22 PM -- Kyle Brown, General Manager, Metro Taxi, testified before the committee. He distributed a copy of a study (Attachment I) of taxicab regulation and deregulation to the committee. He discussed how deregulation can put the public at risk, the importance of bringing TNC safety standard to the same level as taxicabs standards, accessibility for low income individuals, and the price of accessible vehicles. He said that without service standards, prices will skyrocket because drivers are going to work for the company where they can make the most money, and as a consequence, all companies will have to raise their rates to attract drivers. He provided a history of taxicab service at Denver International Airport (DIA).

0708TransAttachI.pdf0708TransAttachI.pdf

03:38 PM -- Mr. Dean came to the table to answer questions from the committee regarding whether TNC drivers pay a fee to pick-up or drop-off at the airport and when TNCs were first allowed to serve DIA.

03:46 PM -- Carl Allen, Regional Vice President, Transdev on Demand, introduced himself. He said that Transdev North America is the largest private sector provider of multiple modes of transportation in North America and explained that they operate the Yellow Cab company, Supershuttle, and Execucar in the Denver metro area. He explained that taxicabs and TNCs are in the exact same business of bringing customers from point A to point B for a fee, and discussed how Yellow Cab now has an app called zTrip that allows users to access a taxicab much like a TNC. He also discussed who assumes risk, hours of service regulations, the ability to audit, vehicle markings, and fares. He responded to questions from the committee regarding Transdev's views on open market entry.


04:01 PM

Mr. Jack returned to the table to answer questions from the committee on the insurance requirements for taxicabs and TNCs in Colorado.

04:03 PM -- Abdi Buni, President, Green Taxi, testified before the committee. Mr. Buni discussed the changing nature of the taxicab market and the importance of market competition, and responded to questions from the committee regarding how to improve equitability between TNCs and taxicabs.

04:16 PM -- Elias Chajari, Vice President, Green Taxi, testified before the committee. He discussed the challenges of running a taxi company in Colorado and how he appreciated the passage of HB15-1316. He said the current taxicab company application fee is too expensive.


04:19 PM

The committee adjourned.