Committee backs temporary suspension of business registration for TNC and taxi drivers amid litigation over SB 182

The Budget and Finance Committee on March 10 recommended that the full Board extend a temporary suspension of business registration requirements for transportation network company (TNC) drivers and taxi drivers through fiscal year 2021'22 while litigation over SB 182 proceeds.

Sonny Angulo, representing Supervisor Peskin, said SB 182 (as described in the presentation) prohibits the treasurer from requiring TNC drivers who live outside San Francisco to register as a business, which the city says reduced annual revenue by more than $1.2 million and undermined the city's business licensing authority. In light of ongoing litigation (and the paused litigation during the AB 5 period), the ordinance would temporarily suspend the registration requirement while the legal challenge proceeds and provide relief during the COVID pandemic.

Committee members questioned fee amounts and driver counts. Budget Legislative Analyst Sevin Campbell said the registration fee was about $90 previously and that Prop F lowered fees for the smallest businesses to roughly $50 going forward; the BLA said that prior to Jan. 1, 2018 about 21,000 drivers were registered (generating roughly $1.29 million in fees at that snapshot in time) and that roughly one-third of drivers then lived in San Francisco; the BLA also noted about 4,000 taxi drivers registered at that time and cautioned that the population changes frequently.

Two callers from the taxi industry spoke in favor of continuing the suspension. A caller identified as Barry Toronto, speaking on behalf of a taxi workers group in the transcript, said the $90 fee is burdensome and unfair if TNC counterparts are not paying; Chris (identified in the record as Chris Swise) of Yellow Cab said the suspension is a "huge help" for drivers and thanked staff. The committee voted to forward the ordinance to the full Board with a positive recommendation.