T&E Items 1,2 & 3
June 8, 2015
Worksession 5
MEMORANDUM
Committee members should bring the packet and addenda from the January 26, February
9, February 27, and March 10 worksessions.
.
.
Transportation, Infrastructure,
En~r
Environment Committee
Josh Hamlin, Legislative Attorne .
:
!
TO:
FROM:
Worksession:
Expedited Bill 53-14,
Taxi~abs
-- Licenses - Vehicle Requirements
SUBJECT:
-- Driver Identification Cards; Bill 54-14, Taxicabs -- Transportation Network Service
Requirements; and Bill 55-14, Taxicabs - Centralized Electronic Dispatch System.
Expedited Bill 53-14, Taxicabs
Licenses -- Vehicle Requirements -- Driver
Identification Cards sponsored by Councilmembers Floreen, Berliner, Riemer, and then Council
President Rice; Bill 54-14, Taxicabs -- Transportation Network Service - Requirements,
sponsored by Councilmembers Berliner and Floreen; and Bill 55-14, Taxicabs -- Centralized
Electronic Dispatch System, sponsored by Councilmember Riemer, were introduced on October
28,2014. A public hearing on all three Bills was held on December 2,2014. Prior worksessions
on the Bills were held on January 26, February 9, February 27,2015, and March 10,2015.
Expedited
Bill 53-14 would:
pennit the holder of a fleet Passenger Vehicle License to grant a sublicense to another
person;
increase the age limits for vehicles used as taxicabs;
amend certain requirements for color and markings of vehicles used as taxicabs;
allow software-based meters to be used in taxicabs; and
amend certain requirements for temporary identification cards for taxicab drivers.
Bill 54-14 would:
require a transportation network application company to obtain a license to operate in the
County;
require a transportation network application company and transportation network
operator to meet certain registration requirements;
require a vehicle used to provide transportation network service to meet certain standards;
require a transportation network application company and transportation network
operator to
be
insured; and
require a transportation network application company and transportation network
operator to meet certain accessibility standards.
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Bill 55-14 would require the County Department of Transportation (DOT) to implement a
centralized electronic taxicab dispatch system, and permit the Director to require certain taxicab
operators to participate in the centralized electronic taxicab dispatch system.
December 2,2014 Public Hearing
The T&E Committee held a public hearing on all three Bills on December 2,2014. There
were 30 speakers at the hearing, representing a wide range of perspectives on the issues covered
in the Bills. Public hearing testimony is summarized and included in the packet for the January
26 worksession.
January 26,2015 T&E Worksession
The Committee held its first worksession on the Bills on January 26, 2015. The packet
for that worksession raised a number of issues of common concern to the owners and operators
of "traditional" regulated taxicabs and the TNCs and drivers that Bill 54-14 would regulate.
These issues also encompass many of the amendments to existing law regulating taxicabs that
are proposed in Expedited Bill 53-14. The Committee discussed the issues of insurance,
fares/ratesetting, driver background checks, and began discussion of the question of licensing
both TNCs and TNC drivers.
February 9, 2015 T&E Worksession
The Committee held a second worksession on the Bills on February 9, 2015.
In
that
worksession, the Committee discussed licensing, vehicle standards,
data
and trip records, and
custqmer service, as well as proposed changes to Chapter 53 received from the Coalition for a
Competitive Taxicab Industry ("CCTI") after the introduction of the Bills.
February 27, 2015 T&E Worksession
The Committee held a third worksession on the Bills on February 27, 2015.
The
Committee discussed several of these issues raised by a number of taxicab drivers through the
Montgomery County Professional Drivers Union ("MCPDU") about their relationships with
taxicab companies at that worksession. Specifically, the Committee considered:
(1)
whether to
set caps on lease rates for taxicabs; (2) whether to permit taxicab drivers to use their own credit
card processing terminals, and whether to cap rates that fleets may charge their drivers for credit
card processing; (3) whether to limit other charges imposed on drivers by fleets; (4) whether the
County should develop and require the use 'of uniform lease contracts; (5) whether the dispute
resolution currently required to be provided for
in
operating agreements between fleets and
drivers should include binding arbitration; and (6) how best to ensure the availability of
accessible transportation with the entry ofTNCs into the market.
March 10,2015 T&E Worksession
On March 10, 2015, the Committee held a fourth worksession on the Bills. At that
worksession the Committee discussed elements of Councilmember Riemer's proposal
concerning digital dispatch, various driver protections, and the issuance of 200 new PVLs to
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individuals. The sublicensing of PVLs was also discussed, without resolution, in the March 10
worksession.
New Maryland Law Regulating TNCs.
The Committee has been following developments at the State level pertaining to TNCs,
both at the Public Service Commission and in the General Assembly. On the last day ofits 2015
session, the General Assembly enacted a bill comprehensively regulating TNCs.
1
This'
enactment has a significant impact on the Committee's consideration of the issues related to the
three Bills before it.
.
On May 12,2015, Governor Hogan signed Senate Bill 868 into law.
2
SB 868 and House
Bill 1231 were cross-filed in the General Assembly on February 27 and March 2 respectively.
As introduced, the bills would have defined and regulated TNCs in a manner consistent with
Virginia and the District of Columbia in key areas, and would have expressly preempted local
TNC regulation. SB 868 was substantially amended in the last days of the session, but the
enacted law still provides a regulatory framework similar to those established
in
Virginia and the
District. Specifically, the new State law:
• places TNCs under the oversight of the Maryland Public Service Commission ("PSC");
• requires TNCs to have a permit from the State;
• requires the PSC to adopt regulations "to ensure that TNCs and operators are making
reasonable efforts to make transportation network services available to all people,
including people with disabilities";
• provides for the licensing of transportation network operators (drivers), including the
issuance of a temporary license supported by a commercial background check, and a
permanent license upon submission of a fingerprint-based background check (although
the latter requirement may be waived on request of the TNC and a showing that TNC's
background check process is "as comprehensive and accurate as" the fingerprint-based
background check;
• establishes minimum insurance requirements for TNCs;
• allows a local jurisdiction to levy an assessment of up to 25 cents per ride on rides
provided by TNCs that originate in the local jurisdiction.
While the express preemption language was removed from SB 868 before enactment, the
regulatory regime established in the law would almost certainly preempt local jurisdictions from
regulating TNCs beyond the levy of the assessment for which the law provides. Thus, the vast
majority of the provisions of Bill 54-14, which would have regulated TNCs, are likely
preempted. The one surviving provision of Bill 54-14 could be the amendments to Sections 53­
101 and 53-106, which would exempt taxicab trips scheduled through a digital dispatch from the
rates set by regulation for other taxicab rides. Intended to allow taxicabs operating in a manner
similar to TNCs to compete on price, this provision could still be an important component of the
Bill that is ultimately considered by the full Council, particularly if that Bill contains provisions
establishing a centralized electronic dispatch system.
hnp://www.baltimoresun.comlbusinesslbs-bz-rideshare-bill-20 I 504 I4-story.html
2
hnp://mgaleg.maryland.gov/20 15RS/chapters nolniCh 204 sb0868T.pdf
I
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Issues Tentatively Resolved at Prior Worksessions
The Committee considered several issues, some contained in the three existing bills and
others raised during the worksessions, and through straw votes tentatively resolved a large
number of them. For discussion purposes, staff has prepared a "substitute bill" incorporating
these resolved matters; the substitute bill can serve as a starting point for Committee
consideration this worksession.
3
The resolved issues fall into three categories: (1) amendments
to ease certain regulatory requirements to allow taxicabs to better compete with the TNCs that
have entered the marketplace, including provisions from Bill 53-14; (2) amendments related to
the establishment of a centralized electronic dispatch system contained in Bill 55-14; and (3)
amendments intended to improve conditions for drivers that do not own their own PVLs.
Substitute
Bill
Provisions
The substitute bill (©484-511) for Committee discussion combines provisions from all
three Bills, and specifically includes the following provisions that would:
Remaining provisions ofBil154-14:
• define "digital dispatch," "dispatch," and "dynamic pricing" (lines 8-17);
• deregulate taxicab fares scheduled through a digital dispatch (lines 20-43);
Amendments to be made by Bill 53-14:
• increase the age limits for vehicles used as taxicabs (lines 463-464; 466; 471);
• amend certain requirements for color and markings of vehicles used as taxicabs (lines
393; 481-483; 489-500; 505-506; 513-516);
• allow software-based meters to be used in taxicabs (lines 520-528);
• amend certain requirements for temporary identification cards for taxicab drivers (lines
575-585; 596-597; 602-603);
Amendment to be made by Bill 55-14:
• require the Director of DOT to establish a centralized electronic dispatch system (lines
105-126);
Other amendments requested by
ceT!:
delete the driver examination (lines 566; 614-620);
eliminate paper manifest requirements (lines 623-633);
change required inspections from every six months to every 12 months (line 536);
eliminate the customer service requirements (which have never been fully implemented)
(lines 53-100; 201-202; 212-213; 218; 221-222; 232-233; 236-237; 395-397; 405-459;
648-649);
3
The substitute bill has been prepared in a reader-friendly format for ease of reference. The Bill ultimately voted
out of Committee will be an amended version of one of the three existing bills, following the established convention
for such amendments.
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allow impoundment of vehicles in violation of County taxicab law (lines 637-640);
Other amendments to improve conditions for drivers:
require the Executive to establish, by method (2) regulation, standardized lease/affiliation
agreements (lines 127-131; 228-229);
require the Executive to set lease caps and ancillary fees (lines 132-161; 268-269);
provide for one-year maximum terms on agreements between licensees and affiliates or
drivers (line 243);
allow drivers to use their own system for processing credit card transactions (lines 244­
245);
prohibit automatic renewal of agreements between licensees and affiliates or drivers (line
246);
prohibit credit card processing charges to drivers greater than 5% of the transaction (line
266-267); and
provide for a mandatory dispute resolution process, culminating in binding arbitration
(lines 247-264; 270-388).
The proposed amendment to allow sublicensing of PVLs is also included in the substitute bill
(lines 164-194), although the Committee has not yet fully considered the proposal; the question
of whether to allow sublicensing is related to the larger issue of whether, and how, to create more
opportunities for drivers to own their own PVLs, and will be discussed by the Committee in that
context.
Staff was directed to compose language creating a mandatory
dispute resolution process culminating in binding arbitration, including a list of what disputes
would be subject to arbitration. The language included in the substitute bill is modeled on the
process codified in Alexandria, Virginia since 2005, and creates a three-step process:
(1)
informal grievance procedure; (2) voluntary formal or informal mediation; and (3) binding
arbitration with costs borne by the losing party. Rather than a list of specific issues subject to
arbitration, which staff believes would be unworkable, the process includes a definition of
"dispute" that essentially includes a disagreement between a driver and a fleet or association over
whether the termination or suspension of the driver, or the denial of resources or benefits to the
driver that are enjoyed by other similarly situated fleet or association drivers, was reasonable or
based on good cause.
4
CCTI has submitted a position paper opposing mandatory arbitration (©529), expressing
the belief that: (1) imposing the requirement would violate the due process rights of the parties;
(2) that the Alexandria process is vague and punitive and would lead to frivolous complaints; and
(3) that the process is unnecessary, as the existing dispute resolution "has been in place for ten
years and no individual driver
has
ever invoked this provision nor sought any relief through an
alternative dispute resolution process." Staff disagrees with the assertion that mandating parties,
as part of a licensing regime, participate in binding arbitration as part of a dispute resolution
"Good cause" is dermed as "one or more ofthe causes for revocation ofan identification card under Section 53­
604, or a material failure of a driver to comply with established, written rules or practices of the company or to
perform in accordance with his or her written contract ..." The list of causes for revocation includes a general
public safety cause in Section 53-604(aX5): "a licensee or driver operated a taxicab, or allowed a taxicab to be
operated, in a manner that enpangered the,Public health, safety, or welfare, or with a record ofsubstandard customer
service as dermed by applicable regulation."
4
Dispute Resolution:
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process, and notes that there are other instances where a binding arbitration requirement is
imposed in such a context, including the City of Alexandria. Staff also believes that the
language in the draft bill provides for a process with sufficient specificity and is not punitive.
In
particular, CCTI objects that the process would lead to frivolous complaints going to arbitration;
staff believes that provision that the losing party pays the costs (to which CCTI also objects)
would
be
a sufficient deterrent to bringing a frivolous complaint. Staff spoke with the Division
Chief handling taxicabs in Alexandria's Department of Transportation who, in addition to
expressing the general view that the process worked well, indicated that disputes had gone to
arbitration "once or twice, if that" in the 10 years that the process has been in place. Whether the
process is necessary or not is a fair question, but Committee members have heard from drivers
that it has not been a lack of disputes, but a lack of confidence in the strength of the current
process to achieve resolution.
Issues for Committee Discussion in this Worksession
In addition to going over the substitute bill, there are several issues remaining for
Committee discussion. Several of these issues have been discussed in the prior worksessions,
including the offenses which should disqualify an individual from receiving a PVL or
identification card, the revocation or non-renewal of PVLs that are underutilized, and the concept
of establishing a commission (or reconstituting the Taxicab Services Advisory Committee) to
review and make recommendations concerning the performance and regulation of the taxicab
industry. Also discussed but not resolved is the multifaceted issue of the structure of the
licensing regime: transferability, issuance/reissuance, and sublicensing of PVLs. Other issues
were raised in materials submitted for prior worksessions (deletion of provisions related to
special licenses) or were raised since the last worksession (prohibition on cross-ownership,
issues related to liability insurance). Councilmember Berliner may propose amendments that
address many of these issues ©512-528. Finally, the Committee must decide if, and in what
form, the centralized electronic dispatch proposed in Bill 55-14 will be implemented.
In
considering these issues, it may be helpful for the Committee to consider how their
resolution would impact certain guiding principles that have emerged in prior discussions. Will
change to the existing ,law: (1) help the taxicab industry adapt and compete with the TNCs that
have entered the for-hire transportation marketplace; (2) give greater protections or
independence to drivers in their relationships with fleets; and (3) improve the delivery of taxicab
services to County residents and guests?
If the Committee approves the substance of the substitute bill, and any amendments to
resolve the outstanding issues discussed at this worksession, staff anticipates preparing a revised
Committee draft bill for final Committee action at the June 22 worksession.
Guide to prior attachments: Circle numbers referenced up to 230 are in the January 26
worksessio~
packet, and circle numbers 231-258 are in the January 26 addendum. Circle
numbers 259-310 are in the February 9 worksession packet. Circle numbers 311-383 are in the
February 27 worksession packet, circle numbers 384-435 are in the February 27 addendum, and
circle numbers 436-441 are in the February 27 addendum # 2. Circle numbers 442-483 are in the
March 10 worksession packet.
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Should the disqualifying offenses for holding a PVL or Driver Identification Card be updated?
The Committee discussed the issue of whether to amend the offenses enumerated in
Sections 53-213 and 53-309 as grounds for denial of a PVL or identification card, respectively.
The discussion took place
in
the context of maintaining harmony between proposed requirements
for County mc drivers and those for taxicab drivers. Since the State will now regulate mcs,
that context is no longer directly relevant, but the question remains as to whether all of these
disqualifying offenses are appropriate in the current environment. CCTI, in its redraft of Chapter
53, requested two changes:
(1)
a change of subsections 53-213(a)(5) and 53-309(a)(5) from
"violation of any law governing controlled dangerous substances" to "commission of any
felony
involving controlled dangerous substances;" and (2) deletion of subsections 53-213(a)(6) and
53-309(a)(6) which currently read "violation of any gaming law." ©278, 292. Council staff
believes that each of these changes is appropriate, and they are included in the Berliner
amendments at ©524, lines 331-335 and ©526, lines 390-394.
Should the prohibition ofcross-ownership be deleted?
CCTI has a few additional requests for changes since the last worksession ©530),
including request to delete Section 53-203's prohibition of cross-ownership (ownership interest
in more than one fleet or association) (©531). The rationale provided for this request was that
this provision prevents individuals with interests in a fleet or association from owning or
operating a mc as now defined in State law. Staff does not believe that the cross-ownership
prohibition would preclude having interests in both a fleet or association and a mc or other for­
hire driving service, and further believes that the prohibition is important in retaining a
competitive taxicab industry. If there was no such prohibition, a fJ.eet owner could buyout other
fleets and effectively create a monopoly. As an alternative, Section 53-203 could be amended to
expressly provide that nothing in the section prohibits a fleet or association from providing non­
taxicab for-hire driving services as defined under State law and not regulated by the County.
The Berliner amendments include such a
pro~ision
at ©516, lines 106-108.
Should eachjleet and association be required to maintain
its
own separatefacilities?
CCTI has requested the deletion of language in Section 53-221 requiring each fleet and
association to maintain its own centralized administrative, vehicle maintenance, customer
service, complaint resolution, dispatch, management, marketing, operational, and driver training
services (©531). The rationale for this request is that it would allow cost-sharing and create
economies of scale to better allow the fleets to compete with the much larger, remotely operated
. mcs. Staff believes that some relaxation of this requirement is appropriate, but does not
recommend deleting the requirement that the required facilities/services be located in the
County, and recommends retaining the requirement that the Director approve obtaining the
services from another entity. The Berliner amendments would allow sharing of facilities located
in the County with the Director's approval ©524-525, lines 338-353.
Should the Section
53-212,
"Special Licenses," be deleted?
In its redraft of Chapter 53, CCTI requested that Section 53-212, "Special Licenses," be
deleted (© 276-277), because it had never been used. DOT has indicated that a 2009 study
conducted by Worcester Polytechnic Institute concluded the provisions of Section 53-212 were
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essentially unworkable, and that no special licenses have been issued. In view of this
information, staff believes it would be appropriate to delete this section. The Berliner
amendments include a deletion of this section, 10523-524, lines 289-320.
Should the "continuous operation" requirements be deleted, or strengthened?
CCTI requested the deletion of the requirements of Sections 53-227 and 53-214, that
taxicabs associated with PVLs be kept in regular service, and this request was discussed in
Committee on February 9. The number ofPVLs issued is intended to ensure that the number of
taxicabs in operation is adequate to meet the public need for taxicab services. One of the criteria
for the issuance of new licenses under MCC
§
53-205 is that the issuance must "be based on
public convenience and necessity, such as the need for more taxicab services in the County
generally or in certain geographic areas of the County, or for certain types of passengers, as
shown by such measurements as taxi utilization rates and response times ..." Presumably, that
number is based on the licensed taxicabs being in continuous operation.
To allow a licensee to hold a license for an out-of-service vehicle for an extended period
would seem to compromise the intent to meet public need. Alternatively, it may be that since the
entry of TNCs into the for-hire transportation market, the number of issued licenses exceed the
public's need. However, if that is the case, the County under current law could revoke for lack
of use and essentially "retire" the unneeded license. Staff does not believe the taxicab-riding
public would benefit in any way from the deletion of the continuous use requirements, and
recommends their retention.
Further, discussions in earlier worksessions revealed that no PVLs have been revoked, or
been denied renewal, as a result of failure to keep associated vehicles in continuous operation,
despite allegations that there are over 100 chronically unused taxicabs owned by fleets. Because
the County has an interest in having taxicabs on the road serving customers, the continuous
operation requirements should be strengthened to allow DOT to more aggressively reclaim
underutilized PVLs and, ultimately, redistribute them in a manner which ensures utilization. The
Berliner amendments include a number of provisions to strengthen the requirements to make
sure that the PVLs in circulation are being used to transport passengers. These provisions
include:
• an express requirement that a licensee must own a taxicab associated with each license
unless a sublicense has been granted (10515, lines 94-95);
• an affirmative statement in Section 53-227 that each licensee must keep each licensed
taxicab in continuous operation as defined by the Department (10525, lines 356-357); and
• a requirement in subsection 53-228(f) that, if the Department rejects an application to
keep a taxicab out of service for more than 30 days, the licensee must promptly reinstate
the taxicab in service
or return the license
(©526, line 378).
Should the Taxicab Services Advisory Committee be reconstituted?
In his February 23 proposal (©349-362), Councilmember Riemer proposed the
establishment of a "Commission on Fleet-Driver Relations" to regularly review the County's
laws that regulate taxicab drivers, licensees, and fleets, and to create recommended uniform
agreements, maximum lease and affiliation rates, and a list of other permissible charges that a
fleet may charge a driver. The Riemer-proposed Commission would be composed of two
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members representing fleets and two members representing drivers, and failures of the
Commission to reach agreement would be resolved by binding arbitration. The Committee
determined that, since the recommendations of unifonn agreements, maximum lease and
affiliation rates, and permissible other charges would still be subject to approval by the
Executive and Council through the regulatory process, this process was not the most desirable.
Instead the Committee agreed that uniform agreements, maximum lease and affiliation rates, and
permissible other charges would be set by regulatiori (see ©490, lines 127-131 and ©494, 228­
229). However there was some support on the Committee for a Commission that would serve a
very similar function and most importantly, report to the Council and Executive biennially on the
state of the taxicab industry.
Given the number of changes likely to be made by this Bill, and the pressure being
exerted on the taxicab industry by TNCs, regular assessment of the state of the industry will be
crucial in coming years to ensure that necessary course corrections are made to preserve the
taxicab business and deliver quality service to the public. A commission made up of
stakeholders, both from within the industry and from the riding public, could regularly review all
aspects of the taxicab business and make recommendations to the Council and Executive for
changes in law and regulation. Such a mechanism would serve the interests of the County in
maintaining safe, reliable transportation provided by fairly treated and compensated drivers.
In his proposed amendments, Councilmember Berliner proposes the creation of a
"Taxicab Services Commission" to replace the defunct Taxicab Services Advisory Committee
(©512-513, lines 1-40). This proposed Commission would consist of 11 members, including
three fleet representatives, two owner-drivers, two lessee-drivers, general public members
including a representative of senior citizens and a representative of the disability community.
The
Co~ission
would meet at least quarterly, and would conduct a biennial review of the
taxicab industry.
The Berliner amendments provide for the Commission to conduct a review to be
conducted each even numbered year (©513-514, lines 42-71) and a report to be submitted to the
Executive and Council. The biennial report would describe the status of the industry and include
recommendations as to changes to the number of licenses in circulation, rates and fees, insurance
and accessibility requirements, affiliation and dispatch requirements, and any other changes that
the Commission determines would improve the delivery of taxicab services. The review would
include consideration of taxicab rates, lease and affiliation rates, and fees charged to drivers,
with a focus on driver income compared to the County minimum wage and the cost of industry­
related regulatory and enforcement expenditures.
How should the issues surrounding PVLs be resolved?
The structure of the licensing regime in the County is the most complicated issue
remaining for Committee consideration.
It
involves several sub-issues: transfers, new issuance,
reissuance, and sublicensing. Many of these sub-issues have been discussed by the Committee in
prior worksessions, but none have yet been resolved. There has been a great deal of discussion
in worksessions about the prospect of increasing the proportion of individual owner-drivers, and
if the Committee takes that as a primary objective, each sub-issue should be considered with that
goal in mind. Barwood has submitted a document illustrating the ways drivers may obtain PVLs
(©532).
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• Should the current restrictions on PVL transfers be relaxed? Should the
jleeVindependent driver balance be altered to permit more individual PVL holders?
Under current law, all transfers of PVLs must be approved by the Director of DOT, and
the law prohibits the Director from approving a transfer of any license if the transferee already
holds, or would then hold, more than 40% of the total number of licenses then in effect.
It
also
prohibits the approval of the transfer of a license to an individual of a license issued to a fleet if:
(1)
the same fleet has already transferred more
than
two licenses to individuals during that
calendar year; or (2) the transfer would result in individuals holding more than 30% of the total
number of licenses then in effect. Finally, the law generally prohibits the approval of a transfer
of a license if the license was issued or transferred within the previous three years.
CCTI submitted a "white paper" that included discussion of the issues related to
transferability of PVLs (©379-383). In the paper, CCTI argues for a limited number of taxicabs,
citing positions stated County consultant Bruce Schaller. CCTI's positions are that allowing
PVLs to have transfer value is intrinsic
to
the established taxicab market, and that transferability
of PVLs is critical to the viability of taxicab companies. Accordingly, the CCTI Draft includes
amendments to Section 53-204 that would remove the above-described restrictions on the
transfer of PVLs. Transfers would still be subject
to
the approval of the Director under the
process set forth in Section 53-204(b) as follows:
(b)
A license may be transferred only if:
(1)
the licensee notifies the Department in writing of the proposed
transfer not less than 30 days before the date of the proposed
transfer, specifying all terms and conditions of the proposed
transfer and the identity of the proposed transferee;
(2) the Director finds that the proposed transferee meets all
requirements of this Chapter and applicable regulations; and
(3) the licensee surrenders the license when the Director approves the
transfer.
The provisions in question are as follows:
§
53-204(c) - Three-year holding requirement. This requirement was enacted to prevent people
from "flipping" PVLs: obtaining them from the County at low cost and immediately reselling
them for a substantial profit. Given the substantial diminution in resale value of PVLs since
TNCs began operating in the County, the risk of flipping seems low. Also, if as is being
considered, there is a new issuance of PVLs
to
individuals, the risk would be lower still. The
prohibition also restricts the ability of licensees to sell their license should they need or wish to
leave the business or the area. In the current marketplace, staff believes the prohibition serves
little purpose, and imposes a greater cost in limiting liquidity in the PVL market than it provides.
The Berliner amendments would delete this restriction, ©516, lines 120-122.
§
53-204(d) - Limitation on fleet-to-individual transfers. The restrictions in subsection 53­
204(d) on the transfer of PVLs from fleets to individuals - no more than two per year, and no
more than 30% of the PVLs in effect to be held by individuals - are based on the two-fold
rationale of preventing fleets from taking windfall profits based on the market prices of the
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licenses and limiting the fragmentation of the taxicab industry. The market forces in 2004, when
these provisions were enacted, clearly differ from those today. Certainly, the market value of
PVLs has diminished with the entry of TNCs into the marketplace, and the increasing number on
individual TNC drivers may render the attempt to prevent the fragmentation of the industry
futile.
It
should also be noted that the advocacy group representing at least some taxicab drivers
when Chapter 53 was last comprehensively amended in 2004
5
did not support a limitation on the
percentage of individual ownership of licenses. This group actually advocated for much greater
individual ownership, while retaining an affiliation requirement. Staff believes that deleting
these transfer restrictions is appropriate, particularly if there is a desire to increase to proportion
of individual owner-drivers. The Berliner amendments would delete both limitations in this
subsection (along with an obsolete provision that modified them), ©516-517, lines 123-142.
§ 53-204(e) - Prohibition on transferee's holding more than 40% of PVLs. The current law's
restriction on a transferee holding more than 40% of the licenses in effect is a clear attempt to
prevent a consolidation in the industry, which would lead to diminished competition and
presumably less incentive to deliver quality service. Again, with the entry of TNCs to the for­
hire transportation market, competition for a large, and likely growing, percentage of the rides
6
is
essentially guaranteed, regardless of any consolidation of existing licensees. However, staff
believes that it remains important to prevent consolidation to promote competition in the taxicab
industry, and recommends retaining this restriction.
Should the County issue new licenses? How many, and to whom?
Councilmember Riemer has proposed to require the issuance of 200 PVLs to individuals
who
only
own one PVL in 2016. He also proposed that future new issuances
be
made with 50%
of new PVLs going to individuals, and 50% going to fleets (©357-358). MCPDU, in a letter to
the Committee dated June 1 (©534), expressed support for the issuance of 200 new individual
PVLs.
In
a letter to Councilmember Berliner dated February 26, 2015 (©466-470), David
Mohebbi, president of CCTI, advocated a new PVL issuance to both fleets and drivers, and urged
the retention of transferability of PVLs. In its March 5 position paper, CCTI specifically
addressed the proposed issuance of 200 new licenses in 2016, contending that adding 200 new
taxicabs would "significantly [negatively] affect driver income." (©471-474). PVL holder and
driver Jaynul Islam, on behalf of a group of lessee- and owner-drivers, submitted a list of
concerns on June 3 (©547), including a statement of opposition to the issuance of 200 new
licenses, saying that it would reduce driver income and destroy the value of PVLs. CCTI
recommended the issuance of 100 new licenses in 2016, with future issuances made in
accordance with the existing provisions of
§
53-205. CCTI also supports the Riemer proposal's
allocation of future license issuances of 50% to individuals and 50% to fleets (©473).
The issuance of a significant number of individual PVLs would have the effect of moving
the County away from the fleet-based model that was discussed and adopted when the County
last comprehensively revised Chapter 53 in 2004. Two memoranda from Bruce Schaller, the
consultant engaged by the County to study the County's taxicab market as part of its 2004
revision, are particularly pertinent to this discussion (©364-373, 374-378). For a specific
discussion of fleet- vs. individual driver-based systems, see ©376. The Committee should
group in 2004 was called Cabdrivers Allied for Better Service (CABS).
6
TNCs do not compete with traditional taxicabs for street hails, or rides booked by telephone, but the number of
rides booked by app-based dispatch is growing and, for a variety of reasons, will almost certainly continue to grow.
5
The
11
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consider whether circumstances have changed sufficiently or otherwise warrant a move away
from a fleet based model. The entry of a large (or unlimited) number of mcs into the market
may have sufficiently altered the landscape to abandon the current fleet/individual balance.
However, in the absence of the self-regulating rating system used by mcs, is does seem likely
that a de facto removal of the cap on licenses (as the issuance of 200 new individual licenses
would seem to do) could lead to diminished customer service.
If the Committee desires to increase the proportion of individual PVL holders, it should
consider alternatives to the issuance of a large quantity of new individual licenses without
consideration for the public need. Given the persistent allegations of large numbers of fleet
taxicabs sitting idle, the Committee might consider whether it is more desirable to issue a smaller
number of new individual licenses and then reclaim, through revocation or nonrenewal, and
redistribute "idle" licenses through more active enforcement or strengthening of the continuous
operation requirement as previously discussed.
The Berliner amendments would require the new issuance of 50 licenses to individuals
who do not already hold a license by June 1, 2016 (©528, lines 434-436), and change the
proportion of individual PVLs in future issuances from 20% to "at least 50%" ©518, line 181).
• Should the reissuance of revoked or non-renewed PVLs be treated differently than a
new issuance?
Current law in Section 53-210 establishes a rolling process for reissuing licenses, with
licenses reissued based on an "eligibility list" with eligible drivers ranked by seniority.
However, references to "reissued licenses" in Section 53-205, "Periodic Issuance of New
Licenses," makes it unclear how revoked or non-renewed PVLs would be reissued. If, as part of
a plan to create more opportunities for individual drivers to own PVLs, the County is seeking to
"reclaim" underutilized PVLs and issue them to eligible drivers, clarification of the reissuance
process is in order. The Berliner amendments would clarify the difference processes for new
issuance and reissuance by removing references to reissued licenses in Section 53-205 (©518,
lines 160-179), and creating a new section providing for the reissuance of revoked or non­
renewed PVLs on a rolling basis (©520, 209-232).
In
order to retain the current number of
licenses in circulation over the longer term, the Berliner amendments also include language
providing that no licenses may be reissued until after 50 have been revoked or not renewed
(©528, lines 437-439).
• Should the sublicensing ofPVLs be permitted?
The substitute bill includes the provisions of Bill 53-14 that would amend existing law to
allow a fleet PVL holder to grant a sublicense to a vehicle owner to provide taxicab service
under the license. See lines 178-194 at ©492-493. This amendment is an effort to ease the
capital costs of fleets by allowing fleets to permit a taxicab driver who owns their own taxicab
vehicle to drive the taxicab under the authority of the fleet's license. Fleets could then operate
more like mcs, but using licensed taxicabs. Current law requires that a license be issued only
to the owner of each taxicab.
Some jurisdictions that use medallion systems, such as New York and Chicago, permit
such arrangements as "medallion-only leases." Allowing the use of fleet PVLs by owners of
12
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taxicabs through sublicensing could have the desirable effect of getting more taxicabs on the
road by giving fleets more flexibility in the way the PVLs are used.
It
would also allow taxicab
owner/drivers the option of driving their vehicle without having to purchase a license outright.
Bill 53-14 would require approval by the DOT Director of each grant of a sublicense, and
grantees are subject to all requirements of PVL holders, which should provide necessary
oversight of such arrangements.
Stakeholder positions: CCTI supports sublicensing as a means to afford PVL holders
more flexibility in the use of their PVLs, which would result in more taxicabs on the road.
In
his
February 27, 2015 letter to Councilmember Riemer, Acting Director Roshdieh stated that DOT
"has no objection [to sublicensing] as long as drivers have an opportunity to seek legal counsel
of the contract in advance of its execution and the term of the sublicense does not exceed the
term of the PVL" (©437). Since the March 10, worksession, DOT staff have expressed the view
that sublicensing will have a favorable impact on the riding public because of the increased
ownership interest in the business held by sublicensees,
i.e.,
drivers will take better care of
vehicles that they own. MCPDU opposes sublicensing, saying that it would shift costs and risks
to drivers (©534-538). The group of drivers represented by Jaynul Islam supports sublicensing
as a means to "maximize the use ofPVLs that are already on the market, give taxi drivers a stake
in ownership, and generate revenue for affiliates and fleets" (©547-548).
Staff believes that allowing sublicensing would have the effect of getting more taxicabs
on the road, and would create an intermediate step for drivers who seek more independence than
exists under a leased vehicle arrangement, but either don't desire or are unable to obtain a PVL
outright. There is a risk for sublicensee drivers in that they will bear the significant cost-burden
of vehicle ownership without the basic assurance of renewal that PVL holders enjoy: a PVL
holder could decline to renew a sublicense agreement at the end of its term, leaving the driver
with a vehicle but no legal means to operate it as a taxicab.
If the sublicensing is included in the bill, staff recommends including a limitation of the
length of a sublicensing agreement to the term of the PVLs, as recommended by DOT, and
including sublicensing in the uniform agreements and maximum rates provisions of Section 53­
111.
• Should the County establish a fund to provide relief to PVL holders that can show a
significant decline in value from the price that they paid for the license?
Councilmember Riemer proposed to establish a "licensee reimbursement fund" to
provide relief to PVL holders who can demonstrate a significant decline in value of their licenses
from the purchase price (lines 68-73 at ©354). The intent of this fund would be to assist the
estimated 40 individuals who purchased PVLs from fleets at market prices in prior years, and
have seen the value of the PVLs decline precipitously since that time. Because
it
is likely that a
Council bill will be introduced in the near future related to the County charge on INC rides
authorized in the new State INC law, staff believes that it would be appropriate to defer
discussion of this proposal. Because the revenue generated from the TNC charge must be used
for "transportation purposes," it may be possible to use some of the revenue to implement the
fund Councilmember Riemer has proposed.
13
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Should the County establish a centralized electronic dispatch? How?
The substitute bill includes the provisions of Bill 55-14 pertaining to the establishment of
a centralized electronic dispatch. This represents an effort to adopt a program being pursued in
Chicago and the District of Columbia (©191-195), and considered in New York City (©196­
197), to create a digital dispatch system for all taxicabs. The intent of the Bill is twofold: (1)
create a mechanism by which currently-regulated taxicabs can deliver taxicab services in a
manner competitive with TNCs; and (2) be a part of a uniform regional dispatch system that
would better serve the transportation needs of passengers in the Washington, DC metropolitan
area.
In his February 23 proposal, Councilmember Riemer, in addition to requesting
Committee support for many driver protection measures, requested that Bill 55-14 be amended to
require preference given to a vendor providing a dispatch using open standards, and a vendor
providing a dispatch that can include the most jurisdictions in the Washington, DC metropolitan
area. The Riemer proposal would also remove the requirement that a fleet or association provide
a dispatch service, and the requirement that all drivers must drive for or affiliate with a fleet or
association. CCTI opposes the preference for a vendor providing a dispatch that can include the
most regional jurisdictions, instead arguing that vendor selection "should be based entirely on the
quality and cost ofthe system sold (©472).
The D.C. regulations require the establishment of a taxicab cooperative,1 while Bill 55­
14, modeled on the Chicago law, merely requires the establishment of a centralized electronic
dispatch system by DOT. DOT would have the option of contracting with a third party to
provide the service through the County procurement process.
8
The Bill is drafted to impose a
general requirement, and leave the details of implementation to DOT. DOT has expressed
objection to this approach, saying that it puts the Department in the position of being a
participant in the market, rather than a regulator. As an alternative, DOT has suggested that
CCTI should administer the dispatch.
There is not a clear example of successful implementation of a centralized dispatch,
because it is a new concept. Staff believes that the general approach embodied in Bill 55-14
represents the best means to establish an operational system. Staff does not believe that having
CCTI administer the system is a better alternative, particularly if one of the objectives of this Bill
is to foster driver independence and facilitate the establishment of a driver association as an
alternative to the existing fleets. Staff believes that the vendor preferences in the Riemer
proposal would further the goal of greater regional interoperability of the dispatch, which would
allow taxicabs to better compete with TNCs and improve customer service. Staff therefore
recommends their inclusion the Committee elect to pursue a centralized electronic dispatch in the
proposed form.
http://dctaxi.dc.gov/sites/default/files/dc/sites/dc%20taxi/event content/attachments/Chapters 16and99.pdf
8
Chicago has issued an RFP for its Taxicab Dispatch Application HE-Hail" Program and Centralized Wav Taxicab
Dispatch Service, with proposals due on June 5, 2015:
http://www.cityofchicago.orglcitylen/depts/bacp/provdrs/vehic/alerts/2015/may/request-for-proposals--rfp--for­
taxicab-dispatch-application-e-h.html
7
14
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The removal of the dispatch and affiliation requirement proposed by Councilmember
Riemer are premature, in staffs view. Removing these requirements on the assumption that an
untested alternative to the existing fleet dispatch systems could present problems both for riders
and for DOT, as its current enforcement model depends in part on the affiliation requirement.
It
may be appropriate in the future, once a centralized electronic dispatch is up and running, to
revisit this issue. The Commission proposed by Councilmember Berliner would, as part of its
biennial review of the industry, consider making recommendations related to changes in the
affiliation and dispatch requirements.
Should the insurance requirements be changed?
CCTI has requested that Section 53-225 be amended to require insurance
in
the same
amounts required for taxicabs by the PSC, rather than in amounts required by regulation.
Current County insurance requirements are as follows: $100,000 for bodily injury or death, each
person; $300,000 for bodily injury or death each accident; and $25,000 for property damage.
COMCOR 53.40.01.01. PSC-required insurance is as follows: $25,000 for injury to anyone
person; $50,000 for injuries to two or more persons; and $10,000 for property damage. COMAR
20.90.02.19 (Baltimore City and County) and COMAR 20.90.03.17 (Cities of Hagerstown and
Cumberland). The proposed change represents a significant reduction in coverage amounts, and
may not provide adequate protection for passengers or the general public.
This packet contains:
Substitute Bill
Berliner Amendments
CCTI Position Paper on Arbitration
CCTI Chapter 53 Revisions, "Late Version"
Barwood, "Obtaining a PVL in Montgomery County"
MCPDU June 1 Letter and Supporting Documents
Jaynul Islam, "Driver and Affiliate Concerns"
Circle #
484
512
529
530
532
534
547
F:\LAW\BILLS\1454
Taxicabs - Transportation Network Service\T&E Memo 06.08.1S.Doc
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Bill No.
xx-14
Concerning: Taxicabs - Licenses ­
Vehicle Requirements - Driver
Identification Cards
Revised:
Draft No.
Introduced: _ _ _ _ _ _ _ __
Expires: _ _ _ _ _ _ _ _ __
Enacted: _ _ _ _ _ _ _ _ __
Executive: _ _ _ _ _ _ _ __
Effective: _ _ _ _ _ _ _ _ __
Sunset Date: ____- - - - - -
Ch. _ _, Laws of Mont. Co. _ __
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
By:
AN
ACT
to:
(1)
(2)
require the Department of Transportation to implement a centralized electronic
taxicab dispatch system;
require the Executive to establish uniform lease and affiliation agreements, set
maximum lease and affiliation rates, and compile a list of types and amounts of
other charges that a licensee may charge a driver;
provide a process for resolving disputes between fleets and drivers;
permit the holder of a fleet Passenger Vehicle License to grant a sublicense to
another person on certain conditions;
amend certain requirements for age, color, and markings of vehicles used as
taxicabs;
allow software-based meters to be used in taxicabs;
amend certain requirements for temporary identification cards for taxicab drivers;
delete certain reporting and customer service plan requirements; and
generally amend the laws governing the licensing and regulation of taxicabs.
(3)
(4)
(5)
(6)
(7)
(8)
(9)
By amending
Montgomery County Code
Chapter 53, Taxicabs
Sections 53-101, 53-106, 53-110, 53-201, 53-204, 53-214, 53-219, 53-220, 53-222, 53­
228,53-229, 53-231, 53-232, 53-233, 53-235, 53-306, 53-307, 53-308, 53-309, 53-603,
and 53-604
By adding
Chapter 53, Taxicabs
Sections 53-111 and 53-204A
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BILL No. xx-14
By renumbering
Chapter 53, Taxicabs
Sections 53-221,53-310, 53-311, 53-312,53-313,53-314,53-316, 53-317, 53-318,53­
319, 53-320, 53-321, 53-322, 53-323, 53-324, and 53-325
Boldface
Underlining
[Single boldface brackets]
Double underlining
[[Double boldface brackets]]
* * *
Heading or defined term.
Added to existing law by original bill.
Deletedfrom existing law by original bill.
Added by amendment.
Deletedfrom existing law or the bill by amendment.
Existing law unaffected by bill.
The County Council for Montgomery County, Maryland approves the following Act:
-2
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BILL No. xx-14
1
2
3
4
Sec.
1.
Sections 53-101, 53-106, 53-110,53-201,53-204,53-214,53-219,
53-220,53-222,53-228,53-229,53-231,53-232, 53-233, 53-235, 53-306, 53-307,
53-308,53-309,53-603, and 53-604 are amended, and
204A are added, as follows:
53-101. Definitions.
In this Chapter, unless the context indicates otherwise:
*
Sec~ions
53-111 and 53­
5
6
7
*
*
8
9
10
11
12
Digital dispatch
means the hardware and software applications and
networks, including mobile phone applications, which passengers and
operators use to obtain and provide taxicab or transportation network
servIce.
*
*
*
13
14
15
16
17
Dispatch
means the traditional methods of pre-arranging vehicle-for-hire
service, including through telephone or radio.
*
*
*
~
/)ynamic pricing
means
~
fare structure that bases
rate on time and
distance factors, increased
Qy
~
multiplier related to consumer demand.
18
19
*
53-106. Rates.
*
*
20
21
(a) The County Executive must set taxicab rates for trips other than those
scheduled through
~
digital dispatch service by regulation to promote
22
23
24
25
the public interest after holding a public hearing and considering the
recommendations ofthe Committee.
*
*
~
*
~
(£}
Each rate charged for
trip scheduled through
digital dispatch
26
27
service must comply with either:
ill
applicable rate regulations; or
-3­
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BILL No. xx-14
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
ill
@
!!
time-and-distance or dynamic pricing rate set
Qy
the service.
If
!!
licensee that uses digital dispatch charges
!!
fare other than the
metered taxicab rate, before the customer books
!!
vehicle the licensee
or company must disclose to the customer:
ill
ill
ill
the fare calculation method;
the applicable rate being charged; and
the option for the customer to receive an estimated fare.
The licensee must review any customer complaint about
!!
fare that
exceeds the estimate provided under this subsection
Qy
20% or
whichever is less.
~
W
During g state of emergency declared
Qy
the County Executive,
!!
licensee that provides digital dispatch and engages in dynamic pricing
must limit the multiplier
Qy
which its base fare is multiplied to the
next highest multiple below the three highest multiples set on different
days
in
the 60 days before the declaration of
!!
state of emergency for
the same
~
of service in the County.
[(c)]ill The Director may approve rates other than those set in the
regulations as provided
in
a contract filed with the Department if the
Director finds that the alternative rates will not result
in
a significant
reduction of service to the general public. Any alternative rates that
are higher than the rates set by regulation under subsection (a) must
also be set by regulation.
[(d)](g) A person must not charge for taxicab service except as allowed
under applicable regulations or [subsection (c)] this Section.
46
47
48
49
50
51
52
53
54
*
(a)
*
*
Sec. 53-110. [Customer service requirements.
A regulation issued by the Executive must establish:
-4­
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BILL No. xx-14
55
56
57
(1)
specific
customer
servIce
requirements
and
mInImum
performance criteria applicable to each licensee, but which may
vary by type of licensee:
(2)
the required submission dates for any customer service plan and
other data that licensees must regularly submit;
(3)
the dates certain minimum levels of service and other
performance requirements must be met; and
(4)
the consequences of failure to meet any requirements.
58
59
60
61
62
63
64
The service requirements and performance criteria must focus on recurrmg
problems with customer service that the Department has identified through
customer complaints or otherwise.
(b)
These regulations must also include:
(1)
performance-based
qualifications
and
requirements
for
65
66
67
68
69
70
receiving additional licenses under Section 53-205;
(2)
the standards and procedure by which the Director may deny or
revoke a license if a licensee does not meet any mandatory
customer service requirement;
(3)
defined geographic areas of service, subject to modification as
provided in Section 53-222(b){l0), and minimum acceptable
service parameters for each geographic area;
(4)
information required for a review or audit of performance
criteria and data submission;
(5)
guidelines for a complaint resolution process for customer
complaints' that employs, to the extent feasible, an independent
mediation or dispute resolution mechanism;
71
72
73
74
75
76
77
78
79
-5­
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BILL No. xx-14
80
81
(6)
guidelines for procedures each fleet or association must employ
to keep each person who calls for service informed of the status
of that person's request;
82
83
84
85
86
(7)
any special procedures that the Executive concludes are
necessary to assign appropriate priority to service requests from
persons with special medical needs or non-emergency travel to
or from medical facilities; and
87
(8)
the percentage of calls for prearranged service that should be
picked up within 10 minutes, and the percentage of calls for
immediate service that should be picked up within 20 minutes.
The Executive by regulation may set a different response
standard for each type of service.
"Prearranged service" is
service requested, by telephone or electronically, at least 2
hours before the passenger is scheduled to be picked up.
88
89
90
91
92
93
94
(c)
As a condition of receiving a license under this Chapter, each licensee
must agree that all data submitted under this Section is public
information.
The Director must regularly make that information
95
96
97
98
available to the public in an annual report on taxicab service in a
format set by regulation, and in any other fashion that the Director
finds will inform the public.
(d)
The Director, after consulting the Taxicab Services Advisory
Committee, may use any reasonable mechanism to collect more data
that may be used to measure and evaluate customer service
performance, including complaint data, customer surveys, and service
sampling techniques.]
Centralized electronic dispatch system.
99
100
101
102
103
104
105
-6­
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BILL No. xx-14
106
107
108
109
110
111
W
The Director must establish
£!
centralized electronic dispatch system to
dispatch taxicabs for trips that begin or end in the County through an
Internet-enabled application, digital platform, or telephone dispatch
system.
!hl
The Director may enter into
£!
contract with
£!
licensee or other private
ImtlY
through the County procurement process to manage and operate
the system.
In selecting
£!
contractor, the Director must give
preferences to vendors who:
112
113
114
115
116
117
118
119
ill
ill
i£)
use or creates an open standard in developing the system; and
include the greatest number of jurisdictions in the Washington,
D.C. region in the system.
The Director may require every taxicab licensed under this Chapter to
participate in the system.
@
The Director may require dispatch fees, approved under Section 53­
107, to be assessed to cover the costs of operating the system.
120
121
D:il
The system must maintain verifiable records, in
£!
form prescribed hy
the Director, summarizing responses to requests for service made
under the system. The system must provide all required records to the
Director upon request.
122
123
124
125
ill
Nothing in this Section prohibits
£!
licensee from being affiliated with
or dispatched hy any other two-way dispatch system. ,
126
127
128
53-111. Uniform aereements; maximum lease and affiliation rates and other
charges.
129
130
W
The Executive must establish, hy method
ill
regulation:
ill
uniform lease and affiliation agreements which must conform
to the minimum requirements of Section 53-219;
131
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BILL No. xx-14
132
133
134
135
136
137
138
139
140
141
142
ill
maximum lease and affiliation rates that
~
licensee may charge
!!
driver; and
~
ill
ill
list of
~
and amounts of other charges that
~
licensee may
charge
~
driver.
Maximum lease and affiliation rates, and other charges that
~
licensee
may charge
Executive to:
~
driver, must be set at amounts determined
Qy
the
ill
enable the licensee to receive adequate revenues to
QID::
the
licensee's reasonable expenses and receive
~
fair and reasonable
rate of return on the licensee's investment; and
ill
W
provide drivers with an opportunity to earn
reasonable income.
~
fair and
143
144
145
146
In determining the maximum lease rates, the Executive must consider:
ill
ill
vehicle, equipment and license costs;
asset depreciation;
the costs of insurance, operation and maintenance, uninsured
repairs, wages and salaries, garage storage, taxes, fees, two-way
dispatching and administration, as well as all other periodic
expenses paid
by
the licensee; and
147
148
ill
149
150
151
152
153
ill
@
any other factors that the Executive considers appropriate to
further the purposes ofthis Chapter.
The Executive must periodical.ly review the maxImum lease and
affiliation rates, and other charges that
~
licensee may charge
~
driver,
to ensure that the rates and charges are consistent with the objectives
expressed in this section.
154
155
156
157
W
The Executive may require all licensees to provide such financial
information as may be reasonably necessary to establish maximum
-8­
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BILL No. xx-14
159
160
161
162
163
164
165
166
167
168
169
170
171
172
173
174
175
176
177
rates and charges allowed under this Section. Infonuation submitted
under this subsection is confidential and must not be disclosed to the
public.
ARTICLE 2. TAXICAB LICENSES.
Division 1. General License Provisions.
53-201. Required.
(a)
A person must not provide taxicab servIce without possessmg a
license as required under this Chapter.
(b)
[A] Except as provided in subsection (c)(3), g license must be issued
only to the owner of each taxicab.
(c)
A [licensee] person must not operate a taxicab or provide taxicab
service unless the [licensee] person either:
(1)
(2)
holds a fleet license; [or]
holds one or more individual licenses and is affiliated with an
association or a fleet[.]; or
ill
(d)
holds g sublicense granted
Qy
g holder of g fleet license under
Section 53-204A and is affiliated with that fleet.
A licensee must hold a license for each taxicab.
*
*
*
178
179
180
181
182
183
184
185
53-204A. Sublicenses.
(g)
The holder of g fleet license may grant g sublicense to another person
under this Section.
Di}
A sublicense may be granted only if:
ill
the holder of g fleet license notifies the Department in writing
of the proposed grant not less than 30 days before the date of
the proposed grant, specifying all tenus and conditions of the
proposed grant and the identity of the proposed grantee;
-9­
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BILL No. xx-14
186
187
188
189
190
191
192
193
194
195
196
197
198
199
200
201
202
203
204
ill
the Director finds that the proposed grantee meets all
requirements for
regulations; and
~
licensee under this Chapter and applicable
ill
the Director approves the grant of the sublicense.
§;
W
The Director must not approve
grant of
~
sublicense if the grantee
already holds, or would then hold, more than 40% of the total number
of licenses then in effect.
@
The holder of
~
sublicense is subject to all of the requirements of this
Chapter that apply to
~
licensee.
*
*
*
*
53-214. Additional criteria to deny a license.
*
(b)
or applicant:
*
The Director may decline to issue or renew a license to any licensee
*
(4)
*
*
who has not [operated at the customer service levels required by
applicable regulations, or has not] complied after reasonable
notice with any required safety, operational, or inspection
requirement of this Chapter.
205
206
207
208
209
210
211
*
*
*
53-219. Responsibility of licensees, affiliates, and drivers.
*
(b)
*
*
Each licensee must promptly take appropriate action when the
licensee becomes aware from any source that a driver of a taxicab for
which the licensee holds the license or regarding which the licensee is
a party to an affiliation agreement has not complied with all
- 10­
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BILL No. xx-14
212
213
214
215
216
217
218
219
220
221
222
223
224
225
226
227
228
229
230
231
232
233
234
235
236
237
requirements of this Chapter [and the customer service standards
adopted under this Chapter].
(c)
Each licensee must exercise due diligence to monitor the activities of
each driver of a taxicab for which the licensee holds the license or
regarding which the licensee is a party to an affiliation agreement to
assure that the driver complies with all requirements of this Chapter
[and the customer service standards adopted under this Chapter].
(d)
Notwithstanding the legal status of any driver as an independent
contractor rather than an employee of the licensee, for the purposes of
this Chapter:!. [(and particularly the customer service standards adopted
under this Chapter)] the responsibility of each licensee for the conduct
and performance of drivers under this Chapter:
(1)
(2)
applies to each driver, including affiliates of the licensee; and
prevails over any inconsistent contract or other agreement
between a licensee and an affiliate or a driver.
(e)
Any contract or other operating agreement between a licensee and any
affiliate or driver must use the applicable uniform agreement adopted
.Qy
regulation under Section 53-111 and must:
( 1)
inform the driver of:
(A)
the driver's obligation to comply with all requirements of
this Chapter [and the customer service standards adopted
under this Chapter]; and
(B)
the licensee's obligation to take appropriate action when
the licensee becomes aware that a driver has not
complied with any requirement of this Chapter [or
customer service standard];
- 11 ­
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BILL No. xx-14
238
239
240
241
242
243
244
245
246
247
248
249
250
251
252
253
254
255
256
257
258
259
260
261
262
263
264
(2)
(3)
empower the licensee to take appropriate action, as required in
subsection
(b);
[and]
,
not restrict a driver, affiliate, or taxicab owner from providing
taxicab service in the County after the contract or agreement
expires or is
terminated[.]~
ill
ill
(Q)
(f)
not exceed
f!
term of one year;
not require
f!
driver or affiliate
to
use the fleet or association
system for processing credit card transactions; and
not be subject to automatic renewal.
Any contract or other operating agreement between a licensee
and any affiliate or driver must require both parties, at either
party's request, to participate in good faith in an independent,
third-party mediation or alternative dispute resolution process,
which may be administered by the Department or the
Department's designee.
[(1)
(2)
A dispute is subject to the process required by this subsection if
the dispute is connected with the operation of the contract or
agreement or involves the affiliate's or driver's compliance
with any requirement of this Chapter or a customer service
standard adopted under this Chapter.
subject to this process.
The implementing
regulations may specify that certain classes of disputes are not
(3)
The dispute resolution administrator may stay the operation of
any action taken by a party when a stay is necessary to preserve
the rights ofany party.
(4)
This subsection does not preclude either party from taking any
other lawful action to enforce any contract or agreement.]
- 12­
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BILL No. xx-14
265
266
267
268
269
270
271
A licensee must not impose on
~
driver or affiliate:
ill
ill
~
charge of more than 5% of the transaction for processing
~
credit card payment; or
any other charge of
~ ~
or amount other than those on the list
adopted
Qy
regulation under Section 53-111.
53-220. Dispute Resolution.
ill
Definitions.
In
this Section:
272
273
274
275
276
277
278
279
280
281
282
283
ill
Dispute
means
~
disagreement between
~
person who holds
~
taxicab driver identification card issued under this Chapter and
the fleet or association under whose colors the person drives
. over whether an action taken
Qy
the fleet or association to
terminate, suspend or impair the person's ability to drive under
the fleet or association's colors, or to terminate. suspend or
impair the person's right to enjoy the resources and benefits
provided
Qy
the fleet or association, on the same basis as other
similarly situated fleet or association drivers, was reasonable
and based upon good cause.
ill
Good cause
means one or more of the causes for revocation of
an identification card under Section 53-604, or
~
material
284
285
286
287
288
289
290
failure of
~
driver to comply with established, written rules or
practices of the company or to perform in accordance with his
or her written contract with the company, after reasonable
notice and an opportunity to comply or perform.
~
(Q)
Each fleet or association may have
written dispute resolution
procedure as part of its agreements with its affiliates or drivers, so
long as such dispute resolution procedure incorporates, at
~
minimum,
- 13­
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BILL No. xx-14
291
292
293
294
295
296
297
298
299
300
301
302
303
304
305
306
307
308
309
binding arbitration pursuant to the American Arbitration Association
Commercial Arbitration Rules, R-I through R-58.
W
If
~
fleet or association has an agreement with an affiliate or driver
that does not include
~
dispute resolution procedure meeting the
requirements of subsection
!!21.
then disputes will be subject to
resolution under this subsection.
ill
disputes must first be the subject of an internal gnevance
procedure conducted as follows:
(A)
the aggrieved
~
must submit
~
complaint
in
writing to
the fleet or association within 30 days from. the date of
the fleet or association's action, containing
~
written
statement of the matter in dispute and the names,
addresses and telephone numbers of each party to the
dispute.
tID
within two weeks after the submission of the written
complaint, the fleet or association must appoint
~
representative from within the fleet or association to hear
the dispute. The representative must have had no direct
or indirect involvement in the dispute.
(g
310
311
312
313
314
315
316
317
within two weeks after appointment, the representative
must conduct an informal hearing concerning the dispute.
both parties must use best efforts to resolve the dispute.
within two weeks after the hearing has been concluded,
the fleet or association representative must provide
written decision.
~
(D)
{ID
ill
If the dispute is not resolved through the internal grievance
procedure, both parties may agree to informal or formal
- 14 ­
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BILL
No. xx-14
318
319
320
321
322
323
324
325
326
327
328
329
330
331
332
333
334
335
336
mediation of the dispute, pursuant to paragraph
parties fail to agree to mediation, either
~
m
If the
may elect to
proceed to arbitration, pursuant to paragraph
.G1
ill
Informal or formal mediation.
(A)
within two weeks after the internal grievance procedure
has been concluded, any
~
requesting mediation must
submit
£!
written notice requesting mediation to all
parties.
@
within two weeks after such notice has been submitted,
the parties may agree to an impartial person to mediate
the dispute in an informal process. If the parties do not
agree to informal mediation, the
~
requesting
mediation must submit
£!
written Request for Mediation
to the American Arbitration Association (AAA). If the
parties are unable to agree to mediation, either
~
may·
elect to proceed to arbitration, pursuant to paragraph
.G1
.cg
£!
request for mediation must contain
£!
brief statement of
the dispute, and the names and addresses and telephone
numbers of each
~
to the dispute.
337
338
339
340
341
342
343
(ill
the mediator must notifY all parties of the time, date and
place of the mediation.
(ID
the costs of the mediation must be borne equally
Qy
the
parties unless they agree otherwise in writing.
ID
the mediation conducted
Qy
AAA must be in substantial
accord with the American Arbitration Association
Commercial Mediation Rules. M-l through M-17.
- 15 ­
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BILL No. xx-14
344
345
346
347
348
349
350
351
352
353
354
355
356
357
358
359
360
361
362
(Q)
the mediator may end the mediation
it.
in the sole
discretion of the mediator, the continuation of the
mediation would not be useful.
an
the parties in mediation must use their best efforts to
resolve the issues in controversy and the mediator may
execute
~
written settlement agreement if agreed on
Qy
~
the parties but may not impose
parties.
settlement on the
ill
Where neither the internal grievance procedure nor mediation,
if attempted, has resolved the dispute, either
~
may submit
the matter to arbitration, which is binding upon the parties.
Such arbitration must be conducted as follows:
(A)
within two weeks after the mediation process or the
internal grievance procedure has been concluded, the
P.ID1Y
requesting arbitration must submit
~
written notice
of intent to arbitrate to all parties.
.au
within two weeks after such notice has been submitted,
an impartial person to arbitrate the dispute must be
agreed upon
Qy
the parties,
QL
if the parties do not agree,
~
363
364
365
366
367
368
369
the
P.ill:!Y
requesting arbitration must submit
written
request for arbitration to the (AAA) and simultaneously
mail
~
£QPY
of the request for arbitration to every
Pill1Y
to
the dispute.
.ad
~
request for arbitration must contain
~
brief statement of
the dispute, and the names and addresses and telephone
numbers of each
Pru1Y
to the dispute.
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370
371
372
373
374
375
376
377
378
379
380
381
382
383
384
385
386
387
388
@
the
arbitrator must notify
all
parties
and their
representatives, if any, of the time, date and place of the
arbitration.
@
the costs of the arbitration must be borne
Qy
the
PID1Y
which does not prevail, unless the parties agree otherwise
in writing, or the costs are otherwise apportioned
Qy
the
arbitrator if there is no prevailing party.
®
the arbitration, whether conducted
Qy
AAA or another
arbitrator chosen
Qy
the parties, must be in substantial
accord with the American Arbitration Association
Commercial Arbitration Rules, R-l through R-56.
ill)
the arbitrator may conclude the arbitration hearing if in
the sole discretion of the arbitrator, continuation of the
hearing would not be useful.
(H)
within two weeks after the arbitration hearing has been
concluded, the arbitrator must render an award
in
writing,
which must be binding upon the parties and which may
be enforced
Qy
any court having jurisdiction over the
parties.
389
390
391
392
393
394
Division 4. Additional Duties of Fleets and Associations.
[53-220] 53-221. Essential requirements.
Each fleet and association must:
*
(c)
Director;
*
*
operate under [uniform] colors and markings approved by the
- 17 ­
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BILL No. xx-14
395
396
397
398
399
400
401
402
403
404
405
406
407
408
409
410
411
412
413
(d)
[submit a customer service plan as required by applicable regulations
that specifies how the fleet or association will achieve the plan's goals
for safe, reliable customer service and on-time performance;
(e)]
submit accurate, verifiable operating and statistical data reports as
required under this Chapter;
[(f)]wprovide an adequate number of taxicabs to meet service demand 24
hours a day, 7 days a week, as defined by applicable regulations; and
[(g)]illcomply with all requirements of this Chapter regarding the provision
of accessible taxicabs.
*
[53-222. Customer Service Plan.
(a)
*
*
Each fleet and association is responsible for providing timely, safe,
reliable quality taxicab service.
To that end, each fleet and
association must submit to the Director a customer service plan as
required by Section 53-110 and applicable regulations.
(b)
At a minimum, each fleet and association's initial customer service
plan must:
(1)
specify the fleet or association's anticipated percentage of trips
that will achieve the applicable response time standards set
under Section 53-11 O(b)(8) for prearranged service requests and
calls for immediate service, or submit proposed response times
for immediate and prearranged service that are different in any
service area specified by the fleet or association.
When
414
415
416
417
418
419
420
421
different response times are proposed, the plan must describe
why the differences are proposed, considering growth in a
service area or the fleet or association's willingness to serve
areas that need additional service;
- 18 ­
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BILL No. xx-14
422
423
424
425
426
427
428
429
430
431
432
433
434
435
436
437
438
439
440
441
442
443
444
445
446
447
448
(2)
(3)
include timelines to achieve the proposed standards if they will
not be met in the next year;
describe any operational changes the fleet or association intends
to implement that would result in improved service;
(4)
describe what procedures the fleet or association will employ to
keep each person who calls for service informed of the status of
that person's request;
(5)
describe any special procedures the fleet or association will use
to assign appropriate priority to service requests that involve
persons with special medical needs or non-emergency trips to
or from medical facilities;
(6)
specify the number of taxicabs needed to achieve response
times, and justify an increase in taxicab licenses, if requested,
based on public convenience and necessity;
(7)
include a phased-in plan for service improvements, particularly
noting any improvements intended to achieve better service to
senior citizens, people with disabilities, or other underserved
populations identified by the Directors;
(8)
describe the fleet or association's participation, and goals for
participation, in user-side subsidy programs;
(9)
calculate the fleet's or association's user-side subsidy program
participation data for the previous 12 months;
(10) describe the fleet or association's geographic areas of service,
including any planned expanSIOn m a servIce area or a
willingness to serve areas that need additional service;
(11) calculate prior taxicab productivity, measured by the number of
daily trips per cab or an equivalent measurement;
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449
450
451
452
453
454
455
456
457
458
459
460
461
462
463
464
465
466
467
468
469
470
471
472
473
474
475
(12) describe the fleet or association's development of and
participation in innovative taxicab services;
(13) list the number of consumer complaints involving the fleet or
association, by type, filed with the County or another
government agency in the. past 24 months; and
(14) list the number of enforcement actions against the fleet or
association or its drivers of which the fleet or association is
aware, started and completed during the past 24 months.
(C)
Any customer service plan filed after the initial plan must show any
changes in the data included in the initial plan, and any new data
required by applicable regulations.]
*
*
*
53-228. Procedure when vehicle placed in or removed from service.
*
(g)
five model years old.
53-229. Age of vehicles.
*
*
Any vehicle placed in service as a taxicab must not be more than
[4]
(a)
A licensee must not use any vehicle that is more than
[7]
eight model
years old to provide taxicab service
in
the County. As used in this
Chapter, the "model year" of a vehicle is the year designated by the
vehicle manufacturer, as indicated on the vehicle or in the
manufacturer's records. A licensee may maintain a vehicle in service
until the next December 31 after its [seventh] eighth model year ends
if the vehicle passes a comprehensive safety inspection performed
during the preceding August by a state-certified inspector in good
standing.
*
- 20­
*
*
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BILL No. xx-14
476
477
478
479
480
481
482
483
484
485
486
487
488
489
490
491
492
493
494
495
496
497
498
499
500
501
502
53-231. Vehicle numbering, lettering, and markings; rate chart.
(a)
When a license for a taxicab is issued under this Chapter, the
Department must assign a license number to the taxicab. The licensee
(or the f1eet, if the vehicle is affiliated with a fleet) must assign a
vehicle number to each taxicab.
The vehicle number must be
permanentlyapplied[,] and plainly visible[, and not less than 3 inches
high, on each of the 2 sides, on each of the 2 rear door roof columns,
and on the rear of each taxicab].
*
(a)
*
*
53-232. Doors; lettering; color; special equipment.
Each taxicab operated in the County must have at least 3 doors. All
doors must operate safely.
(b)
A licensee or driver must not operate a taxicab unless the taxicab
bears markings in letters plainly distinguishable [and not less than 3
inches high,] on each of the 2 sides of the taxicab, showing the
approved name [and telephone number] of the fleet or association by
whom the taxicab is owned or operated[, and the word "taxicab,"
"taxi" or "cab."l:.
(c)
[All taxicabs in a fleet or association] Each fleet or association must
[be uniform in color] register its colors with the Department. A fleet
or association may register one or more color combinations, and any
fleet or association may register black as one of its colors. A fleet or
association must not use colors that are similar to those of another
fleet or association so that the public can readily identify taxicabs
operated
Qy
that fleet or association. [However, the] The Director
may approve advertising in different colors or markings as long as the
public can still readily identify taxicabs operated by that licensee, or
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503
504
505
506
507
508
509
510
511
512
513
the use of a set of different colors and markings to identify a
specialized service provided by or geographic area served by a fleet or
association.
Any color or color combination approved by the
Department,. other than black, must be reserved for the exclusive use
of that fleet or association when the fleet or association is operating
taxicabs in the County.
(d)
Each licensee must insure that each fleet or association uses only the
approved name of the fleet or association in advertising or listing its
service to the pUblic.
53-233. Cruising lights.
Each taxicab [must] may, but is not required
m.,.
have cruising lights that
514
515
516
517
518
519
520
521
operate electrically as a sign or insignia mounted on the forward portion of the roof
of the taxicab. [These] Cruising lights must not be used until approved by the
Department [. These lights],. and must be designed so that the vehicle can be easily
identified as a taxicab.
53-235. Taxicab meters.
(a)
Each taxicab must be equipped
with~
ill
an accurate, properly installed and connected taximeter which
has a security seal affixed by the Department[.t or
~
522
ill
(b)
reliable, independently verifiable software-based metering
523
524
525
526
527
528
system, approved
by
the Department.
In addition to regular inspections, the Department may conduct
periodic tests of these meters or metering systems. Upon successful
completion of the tests, [the]
security seal,. and
in
~
~
~
taximeter must be affixed with a
software-based metering system must be marked
manner acceptable to the Department. These tests should be
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529
530
531
532
533
534
535
536
537
538
539
540
541
542
543
544
545
546
547
548
scheduled in a manner that minimizes interruption of taxicab service
to the pUblic.
*
53-236. Inspections.
*
*
*
(d)
*
*
Each taxicab licensed under this Chapter must undergo a complete
inspection of its mechanical condition and any special equipment used
to transport persons with disabilities every
[6]
12 months at a time and
place designated by the Department.
The inspection must be
performed by a licensed state inspector at a state-certified inspection
station in good standing. The Director must immediately, without
holding a hearing, suspend the license of any taxicab in an unsafe
physical or mechanical condition. The Director must immediately
reinstate any unexpired suspended license after receiving satisfactory
proof that the violation or defect has been corrected.
*
53-306. Application; temporary card.
*
*
(a)
A person who holds a valid identification card must apply [to] for a
renewal card not less than 30 days before the current card expires.
*
(c)
(1)
*
*
549
550
551
552
553
554
An
applicant who has not held an identification card, or who
held a card that has expired, may apply for a short-term
temporary identification card under applicable regulations.
(2)
The Director must not issue a temporary identification card
unless the applicant has:
(A)
properly verified his or her identity;
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555
556
557
558
559
560
561
562
563
564
565
566
567
568
569
570
571
(B)
a valid driver's license issued by Maryland or a bordering
state (including the District of Columbia);
(C)
submitted his or her driving records, as compiled by the
appropriate state motor vehicle agency, for the previous 3
calendar years from any jurisdiction where the applicant
held a license to drive a motor vehicle; and
(D)
undergone a criminal background check, conducted by
the appropriate state agency, showing that the applicant is
not disqualified because of a criminal conviction, receipt
of probation before judgment in lieu of a conviction, or
pending criminal charge from operating a taxicab [; and]
[(E) passed the examination required under Section 53-308].
(3)
[After August 31, 2007, the] The Director must not issue a
temporary or annual identification card unless the applicant has
shown, through a complete criminal background check, that the
applicant is not disqualified for any reason mentioned in
Section 53-309(a).
(4)
Any temporary identification card issued under this subsection
must differ conspicuously in style and color from the annual
identification card.
(5)
A temporary identification card expires [on the earlier of:
(A)
five days after the Department receives the results of the
nationwide criminal background check; or
(B)
(6)
90] 45 days after the card was issued.
572
573
574
575
576
577
578
579
580
The holder of a temporary identification card must return it to
the Department, without further proceedings, on the earlier of:
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581
582
583
584
585
586
587
588
589
590
591
592
593
594
595
596
597
598
599
(A)
the day the Department issues the holder an annual
identification card under this Chapter;
(B)
(C)
the
[90th]
45th day after the card was issued; or
one business day after the Department notifies the holder
that the card has expired under subsection (c)(5)[(A)].
(7)
By accepting a temporary identification card, the holder by
operation of law waives any cause of action against the County
or any officer, employee, or agency of the County for
improperly issuing a license to the holder. By employing or
leasing a taxicab to any person who holds a temporary
identification card, a taxicab licensee by operation of law
waives any cause of action against the County or any officer,
employee, or agency of the County for improperly issuing a
license to that person.
(d)
The Director may extend the expiration date of an identification card
[(including a temporary identification card issued under subsection
(c))] up to 60 days if:
(1)
(2)
the applicant has submitted all required documentation; and
processing of required state or federal criminal background
checks has been delayed through no fault ofthe applicant.
600
601
602
603
604
605
53-307. Physician's certificate.
(a)
Before the Director issues an identification card, [including] other
than a temporary card issued under Section 53-306(c), the applicant
must furnish a physician's certificate, issued within the previous 30
days, which certifies that:
- 25 ­
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BILL No. xx-14
606
607
608
609
610
611
612
(1)
the applicant has been given a physical examination, including
an initial tuberculosis test and any other test required by
applicable regulation; and
(2)
the applicant is free from any communicable disease, and is not
subject to any physical or mental impairment that could:
(A)
(B)
adversely affect the applicant's ability to drive safely; or
otherwise endanger the public health, safety, or welfare.
613
614
615
616
617
618
619
620
621
622
623
624
625
626
627
628
629
630
631
632
(
c)
*
53-308. [Examination of applicant.
*
*
~
Before issuing an identification card, other than
temporary card issued
under Section 53-306(c), the Director must require the applicant to show that the
applicant is able to:
(a)
(b)
perform the duties and responsibilities of a taxicab driver; and
pass an examination on knowledge of traffic laws, duties under this
Chapter, and general qualifications to operate a taxicab in the County.
53-309.] Criteria to deny an identification card.
*
[53-315. Trip records.
*
*
(a)
Each driver must keep an original written record, for a period of six
months, of all in- service trips on a form approved by the Department.
Each in-service trip must be entered on the trip record at the point of
pickUp.
(b)
The driver must submit trip records to the Department whenever the
Director requires.
Each trip record must include the date, the driver's starting and ending
time, and the taxicab's starting and ending mileage for the driver's
work day.
- 26­
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BILL No. xx-14
633
634
635
636
637
638
639
640
641
642
(d)
Each rest break the driver takes must be entered on the trip record.]
*
53-603. Penalty for violations.
*
*
*
(£}
*
*
In addition to any fine or penalty established
Qy
the Executive for
!!:
violation of this Chapter, the Director may impound any vehicle that
is providing taxicab services within the County in violation of this
Chapter.
53-604. Suspension or revocation of license or identification card.
(a)
The Director may revoke or suspend any license or identification card,
as appropriate, if, after notice and opportunity for a hearing, the
Director finds that:
643
644
645
646
647
648
*
(5)
*
*
a licensee or driver operated a taxicab, or allowed a taxicab to
be operated, in a manner that endangered the public health,
safety, or welfare[, or with a record of substandard customer
service as defined by applicable regulation].
649
650
651
652
653
654
655
656
657
658
659
*
*
*
Sec. 2. Sections 53-221, 53-310, 53-311, 53-312, 53-313, 53-314, 53-316,
53-317,53-318,53-319,53-320,53-321,53-322, 53-323, 53-324, and 53-325 are
renumbered as follows:
[53-221] 53-222. Operating requirements.
*
*
*
- 27­
*
*
*
[53-310] 53-309. Expiration of identification card.
*
*
[53-311] 53-310. Taxicabs from other jurisdictions.
*
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BILL
No. xx-14
660
661
662
663
664
665
666
667
668
669
670
671
672
673
674
675
676
677
678
679
680
681
682
683
684
685
[53-312] 53-311. Notice of change of address.
*
*
[53-314] 53-313. Passenger receipts.
*
*
*
*
[53-313] 53-312. Duty to accept and convey passengers.
*
*
*
*
*
[53-316] 53-314. Out of service notice.
*
*
*
*
*
[53-317] 53-315. Parking at taxicab stands.
*
*
[53-318] 53-316. Parking to solicit business.
*
*
*
*
*
*
[53-319] 53-317. Trips to be made by most direct route.
*
[53-320] 53-318. Accident reports.
*
*
[53-322] 53-320. Hours of operation.
*
*
*
[53-321] 53-319. Use by other persons prohibited.
*
*
*
[53-325] 53-323. Group riding.
[53-323] 53-321. Driver and passengers only permitted in vehicle; exception.
*
*
[53-324] 53-322. Maximum number of passengers.
*
*
- 28­
*
*
F:\LAW\BILLS\14S4 Taxicabs - Transportation Network Service\SUBSTI11JTE BILL3.Doc
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Amendments to Substitute Bill
Offered by
Councilmember Berliner
1
2
3
4
[Committee]
Commission means the Taxicab Services [Advisory Committee]
Commission.
*
*
*
53-103. Taxicab Services [Advisory Committee] Commission.
(a)
The County Executive must appoint, subject to confirmation by the
,County
Council,
a
Taxicab
Services
[Advisory
Committee]
S
6
7
8
9
10
Commission.
(b)
The [Committee] Commission must:
(1)
advise the Director in carrying out duties and functions under this
Chapter; [and]
(2)
meet quarterly or more frequently if requested
J2y
the County
Executive or County Council or ifthe Chair or Commission finds
it necessary;
11
12
13
14
15
16
ill
evaluate the performance of the taxicab industry in serving
members of the population with special transportation needs,
such as senior citizens and people with disabilities[.t and
17
18
19
ill
(c)
conduct the biennial review ofthe taxicab industry under Section
53-104
The [Committee] Commission consists of [5] four public members and
[4]
seven taxicab industry members. The County Executive [should]
20
21
22
23
must appoint members so that:
(1)
one public member represents senior citizens, and another public
member represents people with disabilities;
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24
25
26
(2)
[two] three of the [4] seven taxicab industry representatives
represent management and [2] four are taxicab drivers; and
(3)
[one] two of the [2] four drivers [is an owner-driver] are owner­
drivers and [one is a] two are non-owner [driver] drivers.
27
28
29
30
31
32
33
34
35
(d)
The Director or the Director's representative [must service as an ex­
officio non-voting member. The Director of the Office of Consumer
Protection, or the Director's representative,] and the Chair of the
Council Transportation, Infrastructure, Energy and Environment
Committee or the Chair's representative must [also] serve as [an] ex­
officio non-voting [member] members.
(e)
A [Committee] Commission member serves for a tenn of [3] three
years, or until a successor is confinned, whichever is later. A member
must not serve more than [2] two consecutive full tenns. A person
appointed to fill a vacancy serves for the remainder ofthe predecessor's
term.
36
37
38
39
40
(f)
The [Committee] Commission must annually select one public member
as chair.
41
42
53-104 Biennial Review of the Taxicab Industry.
W
Between September
1
and November
l i
of each even-numbered year,
the Taxicab Services Commission must conduct a review ofthe County
taxicab industry including:
43
44
45
46
47
48
49
ill
ill
ill
at least one public hearing;
solicitation of comments from stakeholders;
an evaluation of:
(A)
the economic condition of the taxicab industry; and
the adequacy of service rendered
12Y
the industry.
ill}
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50
51
(Q)
The Commission must submit
~
report to the Executive and County
Council not later than December
1
of the year the review is conducted,
describing the status ofthe industry and identifying any changes to the
regulation of the industry that the Commission finds
desirable, including:
necess~
52
53
54
55
or
56
57
58
ill
ill
ill
ill
ill
(Q)
changes to the number of licenses in circulation;
changes in taxicab rates set under Section 53-106;
changes in fees set under Section 53-107;
changes in insurance requirements under Section 53-225 or
applicable regulation;
changes to the accessibility requirements under Article
~
changes to the affiliation and dispatch requirements under this
Chapter; and
59
60
61
62
63
ill
any other changes that the Commission determines would
improve the delivery of taxicab services.
64
65
66
ill
The review of economic condition of the industry must include
consideration of taxicab rates, lease and affiliation rates, and industry
fees charged to and
Qy
licensees and drivers. In reviewing the rates and
fees, the Commission must consider:
67
68
69
70
71
ill
ill
driver income compared to the County minimum wage; and
the cost of industry-related regulatory and enforcement
expenditures.
72
73
53-105. Regulations.
*
*
*
3
*
*
74
75
76
[53-105] 53-106. Administrative record.
*
[53-106] 53-107. Rates.
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77
78
79
80
(
a)
The County Executive must set taxicab rates by regulation to promote
the public interest after holding a public hearing and considering the
recommendations of the [Committee] Commission.
*
[53-107] 53-108. Fees.
*
*
*
*
81
82
83
*
*
[53-108] 53-109. Taxicab stands.
84
85
86
87
88
89
90
91
92
93
94
95
*
[53-109] 53-110. Duplicates.
*
*
*
*
*
*
[53-1101 53-111. Centralized electronic dispatch system.
*
other charees.
[53-1111 53-112. Uniform aereements; maximum lease and affiliation rates and
*
53-201. Required.
*
*
*
~
*
A licensee must own
~
*
taxicab associated with each license unless
sublicense has been granted under Section 53-205A.
96
97
98
99
100
*
(a)
*
*
53-203. Types of licenses; cross-ownership.
A fleet or association, including any officer, director, owner, employee,
affiliate, subsidiary, or holding company, must not have any direct or
indirect ownership interest in or management control over any other
fleet or association that operates in the County.
101
102
103
(b)
An
individual must not hold a license originally issued to a fleet or
association under this Chapter, and a fleet or association must not hold
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104
105
106
107
108
109
110
111
112
113
114
115
a license originally issued to an individual under this Chapter, unless
the license was lawfully transferred under Section 53-204.
W
Nothing is this Section prohibits
~
fleet or association from providing
non-taxicab for-hire driving services as defined under State law and not
regulated
Qy
the County.
53-204. Transferability; security interest.
(a)
(b)
Any license must not be transferred except as provided in this Chapter.
A license may be transferred only if:
(1)
the licensee notifies the Department in writing of the proposed
transfer not less than 30 days before the date of the proposed
transfer, specifying all terms and conditions of the proposed
transfer and the identity of the proposed transferee;
116
117
(2)
the Director finds that the proposed transferee meets all
requirements of this Chapter and applicable regulations; and
118
119
120
121
(3)
the licensee surrenders the license when the Director approves .
the transfer.
(c)
[Except in the case of a transfer under subsection
(f),
a license issued
to any licensee may be transferred only if the license was not issued or
transferred within the previous three years.
122
123
124
125
126
127
128
129
130
(d)
The Director must not approve the transfer to an individual of a license
issued to a fleet if:
(1)
the same fleet has already transferred more than two licenses to
individuals during that calendar year; or
(2)
the transfer would result in individuals holding more than 30%
of the total number of licenses then in effect.
Until December 31,2009, the Director, after receiving a written request
from a licensee, may waive either limit in this subsection on transferring a license
5
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131
132
133
134
135
136
137
138
139
140
141
142
143
144
145
146
147
148
149
150
151
152
153
154
155
156
issued to a fleet when the Director concludes that a waiver is necessary to avert a
potential significant loss of service or to preserve or promote adequate taxicab
service in all areas of the County, and the waiver will not reduce or impair
competition, public welfare, and public safety. If the Director waives either limit
for a fleet, the Director must at the same time waive the same limit for each other
fleet so that each fleet's share of the waivers approved for all fleets is at least the
same as that fleet's share of all fleet licenses when the application for a waiver was
filed.
The Director may attach reasonable conditions to any waiver, including
requirements for purchase of commercial liability insurance and maintenance of
minimum numbers of accessible vehicles and limits on the number of new licenses
a company can apply for or receive in a 2-year period after it transfers existing
licenses.
(e)]
The Director must not approve a transfer of any license ifthe transferee
already holds, or would then hold, more than 40% of the total number
of licenses then in effect. This subsection does not prohibit the sale or
transfer ofa license to
£!
licensee that held more than 40% ofthe licenses
in effect on October 1,2004, or the sale or transfer of all or a majority
of the licenses held by that licensee.
[(f)]@A security interest may be created in a passenger vehicle license in
accordance with the Maryland Uniform Commercial Code, subject to
the Director's approval.
The Executive may by regulation attach
further conditions to the creation of a security interest, consistent with
this subsection, as necessary to avoid significant disruptions in taxi
servIce. The Director may approve the creation of a security interest
only if:
*
*
6
*
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157
158
159
160
161
162
163
164
165
166
167
168
169
170
171
172
173
174
175
176
177
178
179
180
181
[(g)]Ui)A transferred license is valid for the remainder of the term of the
original license.
*
(a)
*
*
53-205. Periodic issuance of new licenses.
Notice.
The Director may periodically issue new licenses to qualified
applicants [or reissue any license that has been revoked or not renewed
under this Chapter,] as provided in this Section. The Director must
advertise the availability of these licenses in at least one newspaper of
general circulation in the County for [2] two consecutive weeks before
accepting applications. The Director should also notify, by electronic
mail or other reasonable means, any licensee or driver who requests to
be notified of the availability of new [or reissued] licenses.
(b)
Criteria.
The Director may issue new [or reissued] licenses to qualified
applicants, including existing licensees and persons who do not then
hold licenses, who meet criteria defined by regulation which promote
competition and further the purposes ofthis Chapter. The criteria must:
(1)
be based on public convenience and necessity, such as the need
for more taxicab services in the County generally or in certain
geographic areas of the County, or for certain types of
passengers, as shown by such measurements as
taxi
utilization
rates and response times; and
(2)
consider the performance record of each applicant in providing
taxicab service in the County or elsewhere.
(c)
Individual allocation.
Of the new [or reissued1licenses issued in any
2-year period, [20%] at least 50% must be allocated to individuals who:
7
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182
183
184
185
186
187
188
189
(l)
have held a Taxicab Driver Identification Card, and have
regularly driven a taxicab in the County, during the preceding
three years;
(2)
(3)
have a superior driving record, as defined by regulation; and
do not already hold a license under this Chapter.
In deciding among individuals who qualify under this subsection, the Director must
rank them by the number ofyears that each individual has regularly driven a taxicab
in the County. If a sufficient number of qualified individuals do not apply for a
license under this subsection, the Director may allocate the remaining licenses to
individuals who already hold a license under this Chapter.
(d)
190
191
192
193
194
Biennial limit.
During calendar year [2006] 2016 the Director must not
issue more than 70 new licenses.
In
each later even-numbered year, the
Director may issue a total number of new licenses that does not exceed
10% ofthe number of licenses then in effect.
195
196
197
(e)
Additional licenses
-
extraordinary authority; population limit.
The
Director may issue more licenses than are authorized under subsection
(d) if the Director finds, after holding a public hearing, that additional
taxicabs are necessary to improve service to specified geographic areas
or types of taxicab users or generally to increase competition.
However, the total number of licenses issued must not exceed [1] one
license for each 1,000 County residents, as computed in the most recent
decennial U.S. Census or any census update published by the
appropriate federal agency.
198
199
200
201
202
203
204
205
206
207
208
(f)
Individual limit.
Notwithstanding any other provision of this Section,
the Director must not issue [more than 10]
~
new [or reissued licenses]
license [in any 2-year period] to any licensee that holds or controls more
than 40% of the licenses then in effect.
8
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209
210
211
212
213
214
215
216
217
218
219
220
221
222
223
224
225
226
227
228
229
230
231
232
233
234
235
53-206. Reissuance of revoked or non-renewed licenses.
ill
(Q)
The Director must reissue licenses that are revoked or not renewed as
provided in this Section.
Eligibility list.
The Director must compile and maintain
£!
list of
individuals that have submitted applications and who:
ill
have held
£!
Taxicab Driver Identification Card, and have
regularly driven
£!
taxicab in the County, during the preceding
three years;
ill
ill
W
have
£!
superior driving record, as defined
by
regulation; and
do not already hold
£!
license under this Chapter.
Ranking.
The Director must rank individuals on the applicant list
Qy
the number of years that each individual has regularly driven
£!
taxicab
in the County.
@
Reissuance.
As licenses become available for relssuance, the
Department must notify the applicant highest on the eligibility list that
£!
license is available and of the applicable acceptance procedures and
deadlines. The Department must send notice
Qy
mail to the address
listed
by
the applicant on the application or to any updated address
provided.by the applicant in writing to the Department. Ifthe taxicab is
not placed in service within 90 days after the license is issued, the
Director must revoke the applicant's eligibility and notify the next
applicant on the eligibility list. The Director may extend the time to
place
£!
taxicab in service to permit the taxicab to be retrofitted for use
as an accessible taxicab.
*
*
*
9
*
[53-206] 53-207. License issuance; initial fee.
*
*
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236
237
238
239
240
241
242
243
244
245
246
247
248
249
250
251
252
253
254
[53-207] 53-208. License application.
*
[53-208] 53-209. Individual licenses.
*
*
*
*
*
*
(
a)
*
[53-209] 53-210. Individual license application.
*
[53-210] 53-211. Individual new license lottery.
If the number of applications filed by qualified individual applicants as
defined under Sections 205 and 209 equals or is less than the number
of new licenses authorized for individual use in a 2-year period, the
Director must issue a license to each qualified applicant. Ifthe number
of applicants from qualified individuals exceeds the number of new
individual licenses authorized for that period, the Director must conduct
a lottery among each group of qualified individuals with an equal
number of years' experience regularly driving a taxicab in the County
to determine the priority of issuance.
(b)
Licenses issued by lottery must be awarded under the procedures ofthis
Section and Section 205.
(c)
The Director may conduct a separate lottery for:
255
256
257
258
259
260
(1)
(2)
(3)
(d)
new licenses for accessible taxicabs; and
other new licenses that become available[; and
any other authorized license that become available].
A lottery must be conducted so that each qualified applicant has an
equal probability of receiving a license, subject to the seniority ranking
required by Section 205(c).
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261
262
263
264
265
266
267
268
269
270
271
272
273
274
275
276
277
278
279
(e)
A lottery may be conducted
in
2 separate phases. Phase 1 would
determine the recipients of available individual licenses and continue
until all available licenses have been awarded. Phase 2 would create an
eligibility list for issuance of individual licenses that later become
available. The drawing in Phase 2 must continue until twice the number
of available licenses have been drawn, or a smaller number ifsufficient
applicants did not apply for an individual license.. The eligibility list
created under Phase 2 is valid for the remainder ofthe 2 year period, or
until the next lottery is conducted if longer than 2 years.
[(f)
As licenses become available for reissuance, the Department must
notify the applicant highest on the eligibility list that a license is
available and of the applicable acceptance procedures and deadlines.
The Department must send notice by mail to the address listed by the
applicant on the application or to any updated address provided by the
applicant in writing to the Department. If the taxicab is not placed in
service within 90 days after the license is issued, the Director must
revoke the applicant's eligibility and notify the next applicant on the
eligibility list. The Director may extend the time to place a taxicab in
service to permit the taxicab to be retrofitted for use as an accessible
taxicab.]
280
281
282
283
284
285
286
287
[53-211] 53-212. Fleet license application.
In addition to the information required in Section 53-207, each applicant for
a license issued to a fleet must:
(a)
submit evidence that the fleet provides or will be able to provide [its
own] centralized administrative, managerial, marketing, operational, dispatch, and
driver training services;
*
*
11
*
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288
289
290
291
292
293
294
295
296
297
298
299
300
301
302
303
304
305
306
[Sec. 53-212. Special licenses.
(
a)
In
addition to the licenses regularly available for issuance, the Director
may issue special licenses to qualified applicants to provide innovative
taxicab service, on an experimental or permanent basis, such as:
(I)
transportation for persons with special transportation needs,
including:
(A)
(B)
(C)
(D)
senior citizens;
people with disabilities;
citizens in up-county and rural areas; or
citizens using hospital, seruor centers,
underserved locations or areas;
(2)
jitney service, which is service over a regular route on a flexible
schedule; or
(3)
similar transportation services.
and other
(b)
The availability of licenses under this Section must be advertised in at
least one newspaper of general circulation in the County for 2
consecutive weeks. The Director should also notify, by electronic mail
or other reasonable means, any licensee or driver who requests to be
notified of the availability of new licenses.
307
308
309
310
311
312
313
(
c)
Licenses must be issued on a competitive basis using criteria set by
regulation that are intended to achieve a high level of taxicab service.
The Director may establish appropriate procedures, fees, and conditions
to issue a license under this Section.
(
d)
The Director may revoke a license issued under this Section at any time
for noncompliance with this Chapter or failure to provide the service
for which the license was issued.
12
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314
315
316
317
318
319
320
321
322
323
324
325
326
327
328
329
330
331
332
(e)
The licensee must return any license issued under this Section to the
Department:
(1)
when the vehicle is no longer eligible to provide the required
service; or
(2)
if the Director revokes the license because the service is no
longer needed or was underused during a reasonable time after
the license was issued.]
53-213. Criteria to deny a license.
The Director must not issue or renew a license to any person, licensee, or
applicant:
(a)
who, within 5 years before the application is submitted, was convicted
of, pled guilty or no contest to, or was placed on probation without a
finding of guilt for, or who when the application is submitted, has a
charge pending for, or who has', within 3 years before the application
was submitted, completed a sentence or period of probation based on a
charge for:
*
(5)
(6)
*
*
[violation of] any felony [law governing] involving controlled
dangerous substances;
[violation of any gaming law;
any offense involving driving under the influence of alcohol; or
any act of moral turpitude;
*
*
*
333
334
335
336
337
338
339
340
(7)]
[(8)]ffi
Sec. 53-221. Operating requirements.
Each fleet and association must:
(a)
provide [its own] centralized administrative, vehicle maintenance,
customer service, complaint resolution, dispatch, management,
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341
342
343
344
345
346
347
348
349
350