Taxicab application process scrutinized

The Transportation and Telecommunications Committee heard testimony Jan. 31 on a bill that would amend the Public Service Commission (PSC) requirements for taxicab permits.

LB889, introduced by Lincoln Sen. Bill Avery, would exempt taxicab carrier applicants in cities of the metropolitan or primary class from a requirement to demonstrate a present or future public convenience or necessity during the application process.

The bill also would require the PSC to set a maximum rate fare for taxicab carriers. Carriers would not be restricted from advertising, promoting, billing or charging a lesser rate for services.

Avery said problems arise when taxicab operators seeking permits must spend thousands of dollars on legal fees to prove their services would be a public convenience and necessity. Operators tend to drop out of the application process at that point, he said, which perpetuates a lack of competition for taxicab services at a time when Lincoln is “on the brink of an economic takeoff.”

To add to the frustration, Avery said, the only cab service available in Lincoln has rates that are higher than cities up to three times its size.

“I brought this bill to correct what is a rather serious problem in Lincoln with the absence of cab services,” Avery said.

Bruce Bohrer, Lincoln Chamber of Commerce executive vice president, testified in support of the bill.

“A lot of businesses have talked to us about this issue,” Bohrer said. “People that come [to Lincoln] for large events that go on for weeks are surprised that we do not have a cab service that is reliable and fairly priced.”

DiAnna Schimek, Lincoln City Council member, testified in support of the bill, saying the council has received “numerous complaints” from Lincoln residents who have been unable to rely on taxicabs.

“Lincoln’s need for taxicab services has apparently risen above the services that are currently being provided,” she said.

Jeff Altman, instructor at the Nebraska Commission for the Blind and Visually impaired, testified in support of the bill, saying transportation is one of the biggest challenges for blind people. The commission wants blind people to be able to be employed and function in society, he said, but a lack of transportation options has made it more difficult for them to do so.

Hobert Rupe, executive director of the Nebraska Liquor Control Commission, also testified in support of LB889, saying reliable taxicab services are needed for consumer safety. The certified server training program offered by the commission encourages servers to arrange a taxicab for customers who appear over-intoxicated, he said, but servers have stated they cannot rely on taxicabs to pick up their customers.

“[The commission] believes that adequate taxicab services are a part of safely delivering alcoholic beverages,” Rupe said.

Don Bellino, manager of Cornhusker Cab in Papillion, testified in opposition to the bill.

The application process to be a Lincoln carrier was initially “cumbersome,” Bellino said, but it assures that taxicab operators are safe and financially fit. Companies that are not willing to make initial investments could be “cutting corners” and would be less safe, he said.

Steve Mason, an insurance agent, also testified in opposition to the bill, saying smaller taxicab companies may not be able to maintain higher insurance limits. Any time the general public is transported by professionals there are higher standards, he said.

“Changing regulations could result in more cabs on the street, but with insufficient [insurance] coverage,” Mason said.

Kirby Young, owner of Capital Cab in Lincoln, testified in opposition to the bill. In May of 2011, he said, 25 workers were laid off because Lincoln did not have a great enough need for transportation services. Furthermore, he said, a significant wait time for a taxicab is common throughout the country.

PSC executive director Mike Hybl provided neutral testimony on the bill.

The purpose of the current standard is to eliminate discrimination and undue advantages, Hybl said. He added that seven recent applications currently are pending for taxicab services wanting to operate in Lincoln.

The committee took no immediate action on the bill.