Jolt
Afternoon Jolt: Today's Winners and Losers
Today's Loser: Limousine and Town Car Companies
The senate passed legislation last week sponsored by Sen. Scott White (D-46, N. Seattle) that would differentiate limousine services from taxicabs. Taxicab companies are upset about limo drivers stealing their would-be clients, chiefly by picking up people who wave their arm to catch a limo or town car rather than prearranging their rides (particularly at cruise ship terminals).
Currently taxicab companies are subject to a variety of state and local regulations. Proponents of the legislation see the bill as a way to level the playing and bring limousine companies into the regulatory fold.
The new legislation would clearly delineate the roles of limos and cabs by requiring all limo rides to be prearranged. Limousine companies would also have to document those prearranged services electronically. Limo drivers and limousine service providers argue that these regulations will interfere in the free market by decreasing competition while favoring the big cab companies.
Winners: Taxi Drivers
Not only are their competitors losers, but taxi drivers are winners in their own right. Another bill (which passed the house unanimously yesterday) helps drivers in two ways.
First, sponsored by a crew of labor rights Democrats, including main sponsor Rep. Tami Green (D-28, Lakewood) and labor allies Rep. Mark Miloscia (D-30, Federal Way) and Mike Sells (D-38, Everett) the bill would make cab companies cover cabbies with industrial insurance.
Second, thanks to a last-minute amendment by Seattle freshman Rep. David Frockt (D-46, N. Seattle), the bill allows cities to regulate the amount a company can charge a cabbie to use the cab. In its initial form, the bill only allowed cities to regulate customer rates, but not lessee rates. That would have been a change from current standards which allow cities to enforce a lease cap. Frock's amendment helped cabbies by making sure that standard stayed in place.
The labor lefties originally changed that rule to give cab companies a potential revenue boost to offset the insurance hit, but Frockt jumped in to help the cabbies. Lease rates can still rise to help offset costs, but companies are capped at a top rate.
Frockt's amendment also helped customers—deleting a section of the bill that would have made cities raise consumer rates to offset insurance costs.
Looks like those veteran legislators needed a hand from a Seattle freshman, Frockt who credits the city of Seattle for alerting him to the issue.
The senate passed legislation last week sponsored by Sen. Scott White (D-46, N. Seattle) that would differentiate limousine services from taxicabs. Taxicab companies are upset about limo drivers stealing their would-be clients, chiefly by picking up people who wave their arm to catch a limo or town car rather than prearranging their rides (particularly at cruise ship terminals).
Currently taxicab companies are subject to a variety of state and local regulations. Proponents of the legislation see the bill as a way to level the playing and bring limousine companies into the regulatory fold.
The new legislation would clearly delineate the roles of limos and cabs by requiring all limo rides to be prearranged. Limousine companies would also have to document those prearranged services electronically. Limo drivers and limousine service providers argue that these regulations will interfere in the free market by decreasing competition while favoring the big cab companies.
Winners: Taxi Drivers
Not only are their competitors losers, but taxi drivers are winners in their own right. Another bill (which passed the house unanimously yesterday) helps drivers in two ways.
First, sponsored by a crew of labor rights Democrats, including main sponsor Rep. Tami Green (D-28, Lakewood) and labor allies Rep. Mark Miloscia (D-30, Federal Way) and Mike Sells (D-38, Everett) the bill would make cab companies cover cabbies with industrial insurance.
Second, thanks to a last-minute amendment by Seattle freshman Rep. David Frockt (D-46, N. Seattle), the bill allows cities to regulate the amount a company can charge a cabbie to use the cab. In its initial form, the bill only allowed cities to regulate customer rates, but not lessee rates. That would have been a change from current standards which allow cities to enforce a lease cap. Frock's amendment helped cabbies by making sure that standard stayed in place.
The labor lefties originally changed that rule to give cab companies a potential revenue boost to offset the insurance hit, but Frockt jumped in to help the cabbies. Lease rates can still rise to help offset costs, but companies are capped at a top rate.
Frockt's amendment also helped customers—deleting a section of the bill that would have made cities raise consumer rates to offset insurance costs.
Looks like those veteran legislators needed a hand from a Seattle freshman, Frockt who credits the city of Seattle for alerting him to the issue.
