Bill to take brakes off new cab firms advances

By Chris Barge, Rocky Mountain News (Contact)

Published February 22, 2008 at 12:30 a.m.

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Photo by Javier Manzano / The Rocky

Ahmed Odawaay and other members of Pro Taxi, a union representing 550 independent metro-area cab drivers, celebrate Thursday after the House Transportation and Energy Committee voted 8-4 to send HB 1227 to the House Appropriations Committee.

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Denver's cabbies finally had their day at the state Capitol.

More than 100 independent drivers returned Thursday for round two of last year's grudge match with Denver's three taxi companies.

While last year's fight centered on a bill that would have deregulated the industry, debate this time focused on more subtle legislation that would make it easier for new cab companies to open for business.

The drivers won this time, with the House Transportation and Energy Committee voting 8-4 to send House Bill 1227 to the House Appropriations Committee.

"They were so happy," Abdi Buni, president of Pro Taxi, said of the cabbies who showed up to support his testimony in favor of the bill. Buni's union represents 550 independent drivers.

"I told them in the hall afterward, 'Look, it will change something from impossible to difficult,' " he said.

The bill, co-sponsored by House Majority Leader Alice Madden, D-Boulder, and Sen. Abel Tapia, D-Pueblo, would institute about a dozen recommendations from the Public Utilities Commission.

Cabbies are especially interested in a provision that would eliminate a requirement that new companies prove there is a public demand for more service before they can begin operating.

Instead, the burden of proof would be shifted to Denver's "big three" - Metro Taxi, Yellow Cab and Freedom Cab. The firms, which have fought more competition, would have to pay for studies to prove that the market doesn't need more companies.

Representatives from Metro Taxi and Boulder Yellow Cab urged the transportation committee to strike the taxi cab portion of the bill, saying it would flood the market with too many cabs, cause everyone to make less money and ultimately hurt the quality of taxi service overall.

"We drivers are making good money," said Ray Baldwin, a driver for Metro Taxi. To imply that they aren't is incorrect and "out of line," he added.

Independent drivers, meanwhile, said the bill would help level the playing field for small businesses in a market dominated by large corporations.

"If we had been making money, we wouldn't be here today," Buni said.

Rep. Alice Borodkin, D-Denver, tried to strike the taxi provision from the bill, arguing that it was premature since two studies commissioned by lawmakers last year to assess the Denver taxi market have not been completed.

Borodkin's motion failed on a 3-8 vote, with only Reps. Don Morostica, R-Loveland, and Spencer Swalm, R-Centennial, voting with her.

A bill last year by Rep. Jerry Frangas, D-Denver, that would have deregulated the industry and allowed unlimited operators, ultimately was gutted and replaced by legislation calling for the studies.

In addition to the cabbie provision, HB 1227 would:

* Extend the PUC's existence for 11 years;

* Give the PUC authority to fine utilities;

* Authorize the PUC to take input from other state agencies in rule-making proceedings;

* Allow the PUC's office of consumer counsel to represent the social and environmental interests - in addition to economic interests - of residential, agricultural and small business consumers of utility service.

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