GA HB 907 Taxicab Monopoly

A Frontal Assault Against the Free Market Sponsored by Republicans  by Gregory E. Williams

March 2 Update, Crossover Day Report!

Former Democrat, now convenient Republican Alan Powell is gearing up for a “busy” day tomorrow, which includes a mis-informed, Anti Free Market bill registered as House Bill 907…HB 907 is colloquially known as the “Taxicab Monopoly Protection Act” and if passed in current form would significantly limit YOUR Transportation options in Georgia…Its a bad bill…I’ve had the privilege/duty of educating both legislators and main stream media folks about the “Medallion” protocol which is current policy in Atlanta and outlying municipalities…The over-regulation of Taxicabs is the main reason the Taxicab business model has failed. Taxicabs are content with the status quo of “protected industry” status and have had no incentive to improve their product or customer service. The nuances of the Medallion issue are extremely complicated and I don’t have the time or command the attention span of the average reader to explain them. My article about this subject has relevant links for your reading displeasure. The “Medallion” or “Certificate of Public Necessity” is a major part of the current edition of the bill and would put innovative companies like Uber and Lyft out of business in Georgia…

http://taxirisk.com/taxicab-facts-for-atlanta-georgia/

http://www.credfinrisk.com/taxi.html
Former Democrat, now Republican House Rep Alan Powell, is actively working to limit Transportation Options in Georgia…This protectionist act “hailed” by a legislator from Hartwell, GA, home to ZERO Taxicabs or Rideshare companies…Follow the dollars, and ask WHY is Alan Powell the lead sponsor on the Taxicab Monopoly Protection Act, aka, HB 907…

Georgia Limousine Association, Post Office Box 16847, Atlanta, GA 30340  09/09/2013
Monetary Primary 2014 $500.00

yep, you read that correctly…Alan Powell is an active recipient of Lobbyist monies from a protected Monopoly in GA…

Crossover Day tomorrow in the Georgia General Assembly. A session marred by embarrassing bills, government encroachment, and crony protectionism…There’s been some good, some bad, and a lot of potential for bad tomorrow….Many of the proposed bills will have zero effect on the daily lives of the average citizen, which is why they pass despite the best efforts of high paid lobbyists….There is no greater threat to the spirit of Free Market Capitalism and the principle of Limited Regulation than the current edition of House Bill 907 (The Anti- Uber/Lyft bill), aka, the Taxicab Monopoly Protection Act…Its not currently on the Rules Calendar (yet), which means that Transportation Choice in Georgia is (currently) not at risk. Do not put it past some zealous Capitol Cronies to engage in subterfuge, backroom deals, and taxpayer betrayal as they promulgate a last ditch effort to curb competition in the Transportation industry and protect the failed, antiquated Taxicab industry…

FEBRUARY 24 RESPONSE to Alan Powell’s letter to his colleagues and to the public:

Lead Sponsor Alan Powell has stated he only has three items to address in his quest to regulate RideShare Transportation Options:

1. Make sure drivers have background checks
2. Make sure drivers have insurance
3. Make sure the RideShare companies are paying their sales tax

In response to these three alleged HB 907 directives, Uber and Lyft already conduct rigorous background checks, both criminal and driving record histories. They also both require drivers to provide major carrier insurance AND Uber/Lyft both offer a supplemental Umbrella policy as part of their Liability program. Uber/Lyft have a self-rational interest to prevent dangerous drivers on the road representing their companies, after all its bad for business.

For the third item, I have emailed Powell about that. I agree that Uber and Lyft are both using roads, bridges, and other infrastructure products. On one level, the drivers are already paying “fair share” taxes towards these since they are clearly buying lots of gas and paying the GAS TAX with every purchase (This is called a Consumption Tax, and is the preferred method of tax collection from Free Market proponents). The Taxicab industry is also supposed to be paying these and at the HB 907 committee meeting last Thursday, one House Rep said something to the effect that with the 6000 Taxicabs in Atlanta, the state was only receiving about $1 million a year. Apparently this tax collection business wasn’t of major concern until two viable competitors showed up on the scene. I personally am not opposed necessarily to Uber and Lyft collecting the 4% GA state sales tax. I asked Powell via email if he would also want any local county, city, etc taxes to be added to any fares. For example, the City of Atlanta currently has a 9% sales tax. Currently, both Uber and Lyft maintain digital track records of EVERY trip taken, so they could easily adapt to the “collect taxes” model. I fear the Taxicab industry, with their antiquated technology and drivers who switch from using the meter to charging a “flat fee” on a whim would be quite reticent in this new duty and there is nothing in this bill that mandates the Taxis keep a digital records of all trips for potential tax auditing purposes. There goes that whole “level playing field” argument promulgated by the Taxicab Lobby since Uber and Lyft would be the only ones compelled to pay the tax.

Powell claims that the social media campaign against HB 907 is full of misinformation. There is nothing further from the truth, in fact the campaign against HB 907 is the only thing spreading light on certain legislators engaging in Protectionism of a Favored Monopoly. I will be updating this blog with a couple of specific items in the HB 907 that would put the RideShare companies out of business in Georgia.

Breaking News on Feb 24:

Rep Harry Geisinger, Roswell, GA, told Neal Boortz he was removing his name as a sponsor of HB 907!

February 20 Update!

HB 907 Update…The Taxicab Monopoly Protection Act was brought up in the Public Safety and Homeland Security committee today. Meeting was originally scheduled for 2 pm but didn’t actually begin until closer to 5 pm due to a busy House Schedule. HB 907 was brought up for discussion around 6 30 or so as Chair Alan Powell presented the latest rendition of the bill, hot off the presses. No one really had time to read it so Powell and a guy with the Limo Lobby gave the salient details. Powell reiterated his fear of rampant “sex molesters” working as Transportation employees and the Limo guy talked about how great it was to have a “level playing field” by adding onerous regulations to RideShare companies Lfyt and Uber. To their credit, both Lyft and Uber representatives said their companies maintain a strict No Tolerance policy for Sex Molesters…After sitting there for 5 hours, they opened up the Public Comment (me and a bunch of other folks) and allotted speakers 2 minutes each…Testimony went late, I took full advantage of my two minutes but unfortunately the bill passed committee with only one dissenting vote (Scott Holcomb)…I truly fear that none of the folks on the committee had time to digest the latest incarnation of the bill and many of the committee members asked questions that indicated they don’t really understand the RideShare business model. I look forward to continuing the fight and urge all House and Senate members to oppose the bill, as the “fixes” are insufficient half measures and the bill is a huge win for the Taxicab Monopoly…

February 18 Update!

ts been a whirlwind 48 hours for HB 907, (The Taxi Cab Monopoly Protection Act) we’ve seen pragmatic free market champions like Neal Boortz, Erick Erickson, and State House Representative Edward Lindsey publicly state their opposition to this heavy handed Big Government endeavor. I’m optimistic that the sponsors of this bill will go back to the drawing board and work to deregulate the Taxi Cab industry instead of trying to use government coercive tactics to fend off Free Market, innovative companies like Uber and Lyft…

February 17 Update!!!

It seems that House Rep Alan Powell, the lead sponsor of HB 907, aka the Taxicab Monopoly Protection Act that would shut down RideShare services like Uber and Lyft in Georgia, is insistent on pushing the bill through the General Assembly. He has found two more Republican sponsors (Harry Geisinger, Roswell, GA (***Geisinger has now removed his name and Rick Jasperse, Jasper, GA) to replace the ones that removed their names. Frankly, its embarrassing to see 5 Republican sponsors of a bill which would decimate the evolving free market transportation options in Georgia and I urge each of the sponsors to re-consider their protection of the scurrilous Taxi Monopoly in Georgia…Please use the posted contact info to let these legislators know the error of their ways…
Republican sponsorship of a bill like this can TRULY make people leave the Party. I cannot say it strongly enough, it is the Height of Hypocrisy.

Talk about bad timing, less than a week after the worst weather-related traffic jam in 32 years, a crony cabal of Republican State House Representatives just dropped a bill that would inexorably limit transportation options for all Georgians. The irony of the State Legislature pushing legislation that would adversely impact travel options for the metro Atlanta region less than a week after Snow Jam II is inescapable. House Bill 907, aka, the Taxi Monopoly Protection Act (TMPA), would essentially put RideSharing companies like Uber and Lyft out of business in the State of Georgia. The bill is sponsored by 5 Republicans and 1 Democrat. Why ANYONE would want their name attached to a bill that protects the Taxi Cab Monopoly is beyond me, yet, here we are.

Rideshare services like Uber and Lyft connect drivers and passengers through the use of an app on Smartphones. Passengers put a credit card on file with the company and the fare is charged directly to the card on file, a true, cash-less transaction The companies themselves do not engage in Taxi services, they are merely a conduit between two consenting individuals engaged in a free market practice. HB 907 would impose massive regulatory burdens on drivers in this New Economy Transportation business model, including the purchase of “medallions,” registration fees, vehicles inspections by the government, mandatory purchase of $1 million in liability insurances, and a host of other regulations.

The sponsors of the bill represent a strangely logical cross section of Georgia. You may wonder why three of the sponsors hail from rural Georgia. Let’s Connect the Dots Notice the Chairmanships for the sponsors below:

The UPDATED Sponsor Roll Call:

Alan Powell, Hartwell, GA (HD 32 Public Safety and Homeland Security – Chairman)
email: alan@alanpowell.net Phone: 404.463.3793

Tom Rice, Norcross, GA (HD 95 Motor Vehicles – Chairman)
email: tqgrice@aol.com Phone: 404.656.5912

Jimmy Pruett, Eastman, GA (HD 149 State Planning Community Affairs – Chairman)
email: jimmy.pruett@house.ga.gov Phone: 404.656.7857

Rick Jasperse, Jasper, GA (HD11 Health & Human Services – Vice-Chair)
email: rick.jasperse@house.ga.gov Phone: 404.656.0188

“Rusty” Kidd, Milledgeville, GA
email: rusty.kidd@house.ga.gov Phone: 404.656.0202

Mary Margaret Oliver, Democrat (HD 82, Decatur, GA–Democrat)
email: mmo@mmolaw.com Phone: 404.656.0265

http://www.legis.ga.gov/Legislation/20132014/138749.pdf


Source: http://gregslistlive.blog.com/2014/02/05/hb-907-a-frontal-assault-against-the-free-market-sponsored-by-republicans/

Comments

Many Georgia politicians who started as Democrats, switched parties a few years back, including Alan Powell, Mike Jacobs and Nathan Deal.  All is not well under the Gold Dome, but they claim to be doing the best they can.

Norb Leahy, Dunwoody GA Tea Party Leader