The Honolulu City Council Committee on Planning, Infrastructure, and Transportation postponed consideration of Bill 42 (2025), which would exempt taxicab companies that use digital dispatch systems from the city's rate-setting regulations, after extended discussion about definitions and industry impacts and a commitment from the Department of Customer Services to propose revised language.

Council Vice Chair Weier and Council Member Tupola introduced the bill, saying it aims to “level the playing field” between traditional taxicabs and transportation network companies. During public testimony, Bridal Naka, a taxi industry representative, said the industry should be allowed to set prices: “We shouldn't be told what to charge… we ultimately are private business,” she said, urging deregulation to help drivers earn a living wage.

Dale Evans, who testified in person on behalf of taxi operators, described the industry as struggling: “The taxi industry is in crisis. This is worse than World War II… The pandemic has been very destructive,” he said. Evans attributed much of the industry's decline to transportation network companies (TNCs) entering Honolulu in 2014 and to a rate-setting process tied to the Consumer Price Index that he called slow and unfair.

Kim Hashiro, director of the Department of Customer Services (CSD), told the committee the bill as drafted applies specifically to digital-dispatch systems and “doesn't affect everyone,” and that CSD recommends uniform rules that treat all taxi companies the same regardless of dispatch technology. Hashiro clarified that CSD implements a ceiling based on the CPI, not a set rate: “It is not a set rate. So taxi companies are able to adjust the rates below that ceiling, but it is not a fixed rate.”

Council members pressed for clearer definitions of “digital network” and “digital dispatch taxicab company.” Council Member Dos Santos Tam asked whether the bill would exempt fuel surcharges and waiting-time charges; the director confirmed those items fall under the same section and would be affected if the exemption applied. Hashiro read the existing baggage-fee schedule from municipal rules, noting 75¢ for regular baggage and $6.38 for extra-large or heavy items defined in the code.

Committee discussion emphasized the need to draft narrow, technology-neutral language so taxi operators that do not use a digital dispatch system are not excluded from any relief. Council Member Tupola said taxi numbers have fallen sharply in recent years, stating they dropped “from 2,479 taxi cabs to now we have about 350,” and urged working with CSD to find a path forward.

The chair postponed the bill to an undetermined date and asked Council Member Tupola and staff to coordinate with CSD on suggested language; Director Hashiro agreed to provide proposed language. No committee vote was taken on the bill at this meeting.

Why it matters: the bill could change how taxi fares, surcharges and related fees are regulated in Honolulu, affecting drivers, taxi companies, riders, and airport operations. The committee deferred action to allow staff and the department to refine definitions and ensure the policy would apply consistently across the industry.