Minnesota Taxi and Household Goods Movers

Opening intrastate transporation markets

The deregulation of interstate trucking and airlines in the late 1970's-early 1980's did not automatically generate similar efforts in the states.  Many state and city governments were slow to open intrastate markets and to embrace the idea that reducing barriers to entry meant increasing competition, improving quality and lowering prices for consumers of local transportation services. 
In Minnesota, the Institute for Justice has changed that through its legislative efforts.
Starting in 2006, IJ has worked to end the use of the Public Convenience and Necessity (PC&N) test in transportation markets in Minnesota.  This unfortunately-common anti-competitive test requires applicants to show that their entry into the market will not diminish their future competitors' profits. 
IJ has opened transportation markets at both the state and city levels.  In 2006, IJ convinced the City of Minneapolis to lift the cap on the number of licensed taxis and eliminate the cap completely on January 1, 2011.  In 2007, the State of Minnesota ended the use of the PC&N test in its regulation of in-state household goods movers thanks to IJ’s lobbying.  At IJ's request in 2009, the City of Bloomington, the third largest city in the state, repealed its PC&N test for taxis.  Finally, in 2010, two smaller cities, Brainerd and Melrose, responded to the firm's initiatives and also deregulated their taxi markets by ending their use of the PC&N test.


Essential Background


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Press Release: Minnesota Ends Use of Anti-Competitive Test In Licensing of Commercial Vehicles (March 2, 2010)

Op-eds, News Articles and Links

Reports, Maps, Charts and Facts

Op-Ed: George F. Will: Cabs and Cupidity (May 27, 2007) The Washington Post


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Article: Lee McGrath: Overcoming An Inconvenient Law (August 2008) Liberty & Law, Voolume 17, Number 4

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