House committee scheduled to hear bill today
A bill to foster competition between companies that operate taxis, limos and roadway shuttles is scheduled to be heard today by the House Business and Industry Committee.
The public policy organization Think New Mexico says these businesses ought not be monopolies.
Here are the high points of House Bill 194, designed to amend the state motor carrier act that dates to the 1930s:
- Fred Nathan, director of Think New Mexico, says the law squelches competition between motor carriers (moving companies, taxies, shuttles, buses, limousines and ambulances). The law prevents new businesses from entering the market unless they can prove that there is “public need” for their service. Newcomers must show that the existing companies are not fully serving the market. The existing companies generally protest applications, making the process time consuming and expensive.
- For taxis and other passenger carriers, Nathan says, the reform bill would limit protests and shift the burden of proof from the entrepreneur to the protesting motor carriers. A prospective business would receive permission to open a new business unless the PRC found that allowing it would diminish the level of service available to the community.