The V.I. Legislature approved controversial exclusive taxi franchises at the territory’s sea and air terminals Monday, after reducing their length from 10 years to five, crafting exceptions for limousines and rental cars, and putting new requirements on the St. Thomas airport franchisee.
The franchises to the territory’s air and sea terminals as follows:
– the Henry E. Rohlsen Airport to the St. Croix Taxicab Association;
– the Austin “Babe” Monsanto Marine Terminal to the St. Thomas Taxi Association;
– the Urman V. Fredericks Marine Terminal to the East End Taxi Association;
– the Cyril E. King Airport to the Virgin Islands Taxi Association;
– and the Edward W. Blyden IV Marine Terminal on St. Thomas to ATS Taxi Service.
As originally proposed by retiring Sen. Celestino White, the four bills would have granted automatically renewable 10-year leases to the companies currently working the concession. With the franchisee given the automatic option to renew, the bills would have effectively given 20-year franchises, which was arguably the greatest of several objections raised by its opponents.
In a report commissioned by the St. Thomas-St. John Chamber of Commerce, attorney Adriane Dudley said the legislation violated Federal Aviation Authority regulations which expressly forbid entities receiving funding through the FAA from entering into exclusive franchises lasting longer than five years.
The V.I. Hotel and Tourism Association, Department of Tourism and the Chamber of Commerce also objected to the legislation, arguing it will undercut competition, raise prices, lower quality and overall make the Virgin Islands a less desirable tourist destination.
White said hotels opposed the franchises because they wanted to preserve the income for themselves through shuttle services.
The bills also establish many of the details of the lease, including the number of taxis to be on hand when a flight lands, minimum insurance for each driver, and the placement of trash receptacles near the taxi stand. The V.I. Port Authority objected to the legislation on the grounds that the details of concessions at the airports and marine terminals were properly negotiated by VIPA, not dictated by legislation.
Senators Usie Richards, Sammuel Sanes, Shawn-Michael Malone and others also expressed concern that the bills only received a single committee hearing, rather than the customary two, before being sent before the full Senate for a vote.
"If you have a process that is incomplete, that is unfair," Malone said, addressing the crowd of taxi drivers that packed the legislative hearing room on St. Thomas to standing-room only. “We cannot have legislation without the input of all the stakeholders.”
Senators Terrence "Positive" Nelson, Neville James and Nereida "Nellie" Rivera-O’Reilly all said they were generally opposed to exclusive franchises on principle, but sympathized with the several taxi franchisees for a stable business environment and would consider supporting the franchises if they were shortened and some exceptions were crafted.
White proposed amendments to limit the franchises to five years and exempt limousine services, allowing them to pick up passengers at airports and marine terminals, both of which were approved without opposition.
Malone offered an amendment requiring the franchisee at St. Thomas’ Cyril E. King Airport to provide lanes designated for specific hotels, where taxis would take passengers to no more than two hotels on the same trip. This would help allay some of the concerns of hoteliers about excessively long, stop-filled journeys for their guests, Malone said.
White opposed that change, saying it was a "Virdin Brown killer amendment," referring to former Sen. Brown, who White said used such amendments to render legislation he didn’t like unworkable. White said it was unfair to make the taxis "serve the hotels and provide this and that."
James disagreed, asking, "Do we understand we are giving exclusive contracts to the taxi companies and we can’t ask for something in return? They gain exclusivity and all we ask is to give some service in return to the tourists."
The Legislature adopted Malone’s amendment establishing designated lanes for express service. Voting yea were James, Malone, Richards, Sanes, Sens. Ronald Russell and Janette Millin Young. Voting nay were Nelson, White, Sens. Alicia "Chucky" Hansen and Patrick Simeon Sprauve. Not voting were O’Reilly, Sens. Louis Patrick Hill and Carlton "Ital" Dowe. Sens. Craig Barshinger and Alvin Williams were absent.
Richards said he could support the measures as amended, despite his concerns, if rental car companies were also allowed to give courtesy rides to pick up and drop off rental car customers. This was accomplished by overriding a 2011 line-item veto of legislation to that effect. White offered the sole "nay" vote on the veto override.
Voting for the four exclusive franchises as they were amended were Hansen, James, Malone, Nelson, Russell, Sanes, Sprauve, White and Young. Voting nay were O’Reilly and Richards. Dowe and Hill abstained. Barshinger and Williams were absent.
