San Diego Lawmaker's Ties To Taxi Industry Raise Ethics Issue

You listening to KPBS where news matters. This is KPBS Midday Edition. IM Maureen Cavanaugh. There's no doubt that ridesharing companies like Uber and Lester taking a bite out of the traditional taxicab business. And if certain state legislations were waived, the rideshare business would get even bigger. But there has been a major obstacle I'm getting overpass in Sacramento. According to an article in the LA Times, the obstacle is state Senator Ben Hueso. His extended family owns the largest fleet of taxicabs in San Diego. We contacted Senator Wessel's office copied he was not available to join us. Earlier today I spoke with Los Angeles Times reporter Liam Dillon. Hello, I am thanks for joining us. Always happy to be here. How has Ben Hueso been involved in the taxicab business? Ben Hueso's older brothers on a taxicab company in San Diego. It has been in the Hueso family for many years. The company, USA cab has grown to be currently the largest fleet of camps in San Diego. So then is a state senator. He was elected a few years ago and has been a legislature for a number of years. He is in charge of a powerful committee in the Senate. That committee is often in charge of hearing bills related to the rideshare industry. What he is done with two bills in particular, at the moment, is he is not scheduled them for a vote yet even though they were passed the assembly on controversially, only one note -- no vote between the two bills. He is sitting on the bills. As a result they are not getting past. To be clear, Senator Hueso has no financial connection to the taxi business? That is correct. How much competition are Uber giving to traditional Companies? I think it is pretty clear. Almost everywhere you go you've seen in California on all over the country, arise in Uber and left. Uber CEO, and who knows the hundred % veracity of this claim, but it is pretty shocking numbers that the beginning of last year in San Francisco, taxi revenue there was about $140 million a year while per revenue in the city was about $500 million in growing 200% a year. You can see the increase on these. Remember the rideshare companies only came into effect a few years ago. You can see the impact that they've had on the market and the bottom line of the taxi companies. You said just a minute ago, two bills to ease legislation for rideshare companies have stalled in the Senate take -- Senate committee that Ben Hueso chairs. But with those bills do? The first one would exempt rideshare Company drivers from having to have commercial license plates so taxicab companies and a number of others have to have commercial plates and tend to be more expensive,, greater legislation. That is still in dispute currently copy would resolve that issue and exempt rideshare drivers from commercial plates. The other would legislate them to carpool to essentially save money for passengers. Currently that is not allowed under state rules. Both of these state rules are relatively uncontroversial in the sense that the past the first house appearance in Sacramento pretty easily and relatively minor in the grand scheme of things. But the issue is that Hueso has not allowed for hearing at. Latest Senator Hueso see these bills being delayed? He is advocating more of a comprehensive approach to trying to regulate the rideshare industry. He has a valid point in the sense that regulations for ridesharing are significantly less in many ways than they are for the taxi industry. Right track the kids will say these are two different things. I think everyone can say this is no industry in the state and the best way to regulate it, with respect to important issues as public safety and consumer protection, so was so is -- once with the brakes on the whole situation until there are more comprehensive original -- regulations in place. I think there are some -- I would also think that given this is a strategy to not hear these two bills in particular, he may fear that if he were to allow these to have a vote, then they would pass. Probably the majority of his colleagues, at least with respect to these two bills would not agree with him. I just the senator answer accusations that he may be stalling these two bills to help this family's business? He simply says that he isn't. I think one thing that puts a fine point on this, I mentioned the commercial license plate issue, well Hueso's brother, the company USA cab is part of a coalition in San Diego that is suing the state over this very issue, it is suing the state to force rideshare companies to have commercial plates. Of there is a direct connection therebetween this bill that was so is not allowing to be heard and a lawsuit that his brother is involved in. Was so told me he was unaware of the lawsuit. He said I have a legitimate policy reason. I am an expert in transportation issues because of my family's long history with taxis. I know how this stuff works. And any allegation I'm doing this for my family or my brother, you'd have to apply the same argument to doctors who carry bills on behalf of the medical industry. That is his point is that he is an expert and therefore he knows better than his colleagues in the legislature. So he is the one who should decide the speed of things. Liam, this is not exactly David and Goliath battle with rideshare. Apparently Uber has become a major player in the lobbying came in Sacramento. Absolutely. In the last few years, if the claim clear that regulations going to happen in that they would come from the state rather than localities, Uber has been spending a lot. The last summer alone was the top 3% of companies. And they are pumping the dollars. I am sure lift is to. But Uber is new and -- is a new presence and being felt. We just heard yesterday about a bill by Representative González that would represent drivers at companies like over to unionize. It seems like there's a lot of concern over how to regulate these new businesses, would you agree? Absolutely going back to whatever we're talking to earlier, this is no. People like it. Therefore, there's going to be a lot of money involved, so there will be a lot of attention on this. We think the González bill might be one of the biggest struggles or biggest fights of the legislature this year. Certainly, number of tech groups have come out against it, obviously labor would be in support. That is going to be a big fight. And it'll be interesting to see how the regulations shape out with respect to insurance, public safety, it will cost someone whether it's the drivers themselves, passengers, taxi industry. Everybody cares because everybody's bottom line is on the line. Finally, to senator was so have to call for a vote on these bills? Or can he led them languish? He does not have to. But he told me he expect to hear them in June, which again, by that point, people have said in his committee for almost a year by that point. I've been speaking with Los Angeles Times reporter Liam Dillon. Liam, thank you so much. Think you, Maureen -- talk -- thank you, Maureen.