Proposition K Reform

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Request for Information

Proposition K reform Request for Information responses due May 1, 2009

San Francisco voters passed Proposition A in the November 2007 election, giving the Board of Supervisors the option of transferring the powers of the Taxi Commission to the SFMTA. The Board of Supervisors exercised that option; as of March 1, 2009, the Taxi Commission ceased to exist and the SFMTA has regulatory jurisdiction over the San Francisco taxi industry.

By passing Proposition A, the voters also created the possibility of reforming Proposition K, the 1978 ballot initiative that created the taxi medallion system that is in place today.

Under the Proposition K system, taxi medallions, which are permits to operate taxis in San Francisco, are issued by the City to a person and that person pays an annual permit fee.

There are 1,500 taxi medallions currently authorized in the City. The medallions are not transferable, and the medallion holder is required to drive a minimum number of hours every year in order to retain the right to keep the permit. So long as the medallion holder meets the full-time driving requirements, he or she may also lease the medallion to other drivers for additional income. If the medallion holder does not drive sufficient hours, the permit can be taken away by the City and given to the next person on the waiting list for a medallion. There are currently more than 3,000 people on the waiting list for a taxi medallion, and it is not uncommon for a person to wait more than 15 years for their turn to get a taxi medallion.

There are features of the San Francisco taxi industry that could be improved. For example, the industry lacks an exit strategy for career drivers, who may dedicate their working lives to the taxi industry without being able to build up assets sufficient to support retirement. Because a person must surrender their medallion when they can no longer drive, medallion holders who are elderly or disabled must continue to drive or risk losing the medallion, which may be their sole source of income.

The level of income of taxi drivers makes it difficult for drivers to afford health care or to be able to save for retirement. Because they work as independent contractors in San Francisco, drivers do not have access to employer-based benefits.

It has been suggested that there are opportunities to improve the San Francisco taxi industry through reform of Proposition K. In addition, there may be opportunities to generate revenue for the City through taxi medallion sales. The SFMTA is hosting a process to explore the options for Proposition K reform. The goal is to identify alternatives that would meet the needs of the taxi industry while generating revenue for the City.

The SFMTA is requesting proposals from the public and the taxi industry for creative options to reform the taxi medallion system in San Francisco. Please see the Request for Information for details on submitting your ideas.

Proposals for Proposition K reform

Proposals that have already been received by the SFMTA are posted in this section.

The accessible file Proposals received by March 27, 2009, part 1 of 2 (accessible PDF) includes the following proposals:

Barry Korengold.
Carl McMurdo.
Luxor.
Royal Taxi.
Yellow Cab Cooperative.

The file Proposals received by March 27, 2009, part 2 of 2 (PDF) includes the folllowing proposals:

Asian Law Caucus.
Yellow Cab Cooperative slide presentation.
Taxi Permit Reform Initiative (2004).

For assistance with documents which are not accessible, please contact Christiane Hayashi, Director, Taxis and Accessible Services, at 415-701-5235.

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