T&E Items 1,2 & 3
February 27,2015
Worksession 3
MEMORANDUM
Committee members should bring the packet and addendum from the January 26
worksession, and the packet from the February 9 worksession.
TO:
FROM:
Transportation, Infrastructure,
Ene~..:Jf~nvironment
Committee
Josh Hamlin, Legislative
Attome~
SUBJECT:
Worksession:
Expedited Bill 53-14, Taxicabs - Licenses - Vehicle Requirements
- 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.
Expedited
Bill
53-14
would:
permit 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.
BilJ
55-14
would require the County Department ofTransportation (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.
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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
customer 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.
Recent Changes in the Regulatory Landscape
Since the last Committee worksession, there have been developments both in Virginia
and Maryland related
to
the regulation of TNCs, and it now appears likely that a bill creating a
statutory framework to regulate TNCs will be considered by the Maryland General Assembly in .
its 2015 session.
l
Virginia
On February 17, Governor Terry McAuliffe signed into law a bilf that legalized the
operation ofTNCs in Virginia.
3
The Virginia law is consistent with the emerging model ofTNC
regulation in that it: requires the TNCs to get licenses to operate in the Commonwealth; requires
drivers to
be
screened by the companies and registered with the Virginia Department of Motor
Vehicles; and requires certain levels of insurance while allowing for the hybrid multi-step
commercial policies that are used by Uber and Lyft. Operating licenses will cost the companies
$100,000 to register, and $60,000 annually to renew. The Virginia law is very similar in most
respects to the law that was passed in the District of Columbia last fall.
http://www.washingtonpost.com/local!trafficandcommuting/new-regulations-for-uber-and-Iyft-open-the-door­
for-expansion!2015!02/21!8445149a-b83e-lle4-a200-cO08aOla6692 story.html
2
https:!Ilegiscan.com/vNtext/SB1025/2015
3
http://www.washingtonpost.com!blogs/dr-gridlock!wp/2015!O2!18!uber-and-Iyft-are-oow-legal-in-virginia/
1
2
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Maryland Public Service Commission
In Maryland, the Public Service Commission (PSC) is considering regulations (©311­
325) to regulate TNCs under the existing legislative framework. The proposed regulations are
more restrictive to TNCs than the recently passed laws in the District of Columbia and Virginia.
Key provisions of the proposed regulations include:
(1)
a requirement that each TNC obtain a
permit from the PSC; (2) a requirement that each TNC driver obtain a for-hire driver's license,
which requires a fmgerprint-based criminal background check; and (3) insurance requirements
that are identical to other passenger vehicles-for-hire.
Should the regulations be adopted as proposed, the PSC regulations
would
apply in
Montgomery County. While the regulations would arguably not preempt the County's ability to
regulate TNCs as providers of taxicab service, they would overlap any County TNC law and
create a duplicative regulatory regime. Also, it appears as though a General Assembly bill
regulating TNCs is imrninent.
4
If the General Assembly enacts a bill similar to the TNC bill
introduced last year, HB1160, (©326-337) the County would likely be preempted from
regulating TNCs.
Issues for Committee Discussion in this Worksession
In this worksession, the Committee will discuss the issue of accessibility of TNCs and
taxicabs, concerns raised by a number of taxicab drivers through the Montgomery County
Professional Drivers Union ("MCPDU") about their relationships with taxicab companies, the
transferability of Passenger Vehicle Licenses, including the sublicensing provisions in Bill 53­
14, and the centralized digital dispatch system that is the subject of Bill 55-14.
Circle numbers referenced up to 230 are in the January 26 worksession packet, and circle
numbers 231-258 are in the January 26 worksession addendum. Circle numbers 259-310 are in
the February 9 work session packet.
Accessibility
Should TNC vehicles/drivers be subject to the same accessibility standards as taxicabs?
If
not, should a surcharge (in the form ofa per-trip charge to the passenger or annual charge to
the TNC) be imposed to subsidize the maintenance and expansion ofthe accessible vehicle stock
in the County?
Under Bill 54-14, a TNC would be required to have its digital dispatch interface be
accessible to the blind and visually impaired and the deaf and hard of hearing. A TNC would be
required to submit an accessibility improvement plan to the Director of DOT, and would be
prohibited from imposing additional charges on individuals with disabilities. Finally, a
transportation network operator (TNO) that accepts a ride request through digital dispatch from a
passenger with a disability who uses mobility equipment, upon picking up the passenger the
TNO must stow the passenger's mobility equipment in the vehicle if the vehicle is capable of
stowing the equipment. If the passenger or TNO decides that the vehicle is not capable of
stowing the equipment, the company that provides digital dispatch must not charge a trip
4
https:l!technical.ly!baltimore!2015!02!18!maryland-uber-still-odds-ridesharing-regulations!
3
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cancellation fee or, if any fee was charged, must provide the passenger with a timely refund. See
lines 318-339 at ©29 of Bill 54-14.
The current provisions of Chapter 53 require a fleet or association to have a Customer
Service Plan that includes a phased in plan for service improvements to senior citizens, people
with disabilities, and underserved populations. Section 53-506(a) requires that the overall
number of accessible taxicab licenses be at least 5% of the total of available County taxicab
licenses. By regulation, a fleet or association is required to maintain a level of at least 8%
accessible vehicles. A taxicab fleet or association holding 30 or more PVLs must participate in
user-side subsidy programs such as Call-n-Ride.
The industry stakeholders' positions on the accessibility issue are as follows:
• Uber:
No substantive issues with the provisions of Bill 54-14. Uber has indicated that it
would be open to discussion about a surcharge to support accessibility programs.
• Lyft:
No substantive issues with the provisions of Bill 54-14. Lyft has indicated that it
would not object to a legislated requirement that it either collect a per-ride fee or pay a
flat-fee surcharge to support the expansion of wheelchair accessible options in the
County. See ©178-181.
• CCTI: CCTI proposes to require TNC vehicles to participate in user-side subsidy
programs such as Call-n-Ride, unless they opt out by paying a fee to the County, and
would subject TNCs to the same accessibility standards as taxicabs, including Americans
with Disabilities Act compliance and a requirement that a participating TNC provide an
adequate number of vehicles to meet service demand.
Accessibility standards have been a major issue in jurisdictions that have thus far
engaged in regulating TNCs. Houston includes TNC vehicles in its requirement that 3% of the
entire
vehicle-for-hire fleet in the city be wheelchair accessible vehicles. Seattle (©338-341) and
Austin impose 10 cent per-ride surcharges to fund subsidies for expanding the number of
wheelchair accessible vehicles in those cities. Minneapolis imposes a flat $10,000 surcharge on
Uber and Lyft to fund a program aimed at increasing the availability of wheelchair accessible
vehicles (©342-344).
Uber is also being sued for violations of the Americans with Disabilities Act (ADA). In
the suit, filed in September 2014, the National Federation for the Blind said it has learned of
many instances across the United States in which Uber drivers have refused to transport blind
passengers after arriving to meet them and discovering they had guide dogs. In one instance, a
driver gave the passenger a ride but locked her service dog in the
trunk,
the suit said. Uber has
denied the allegations of discrimination, and has also argued that it is not a public-service
provider or "public accommodation" covered by the ADA. The U.S. Department of Justice
disagrees with Uber's position in this regard, saying in a filing that "the ADA applies to private
entities that are primarily engaged in providing transportation services," even if a company is not
a public accommodation.
S
5
http://www.ada.gov/briefs/uber soLpdf
4
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Uber has begun trying to play a more active role in the direct provision of accessible
transportation in some jurisdictions.
In
New York City's outer boroughs
6
and Chicago,? its
UberW AV
8
program connects riders needing accessible vehicles with existing third party
providers of the vehicles. While this allows Uber users to request accessible transportation,
it
does not expand the pool of accessible vehicles. In Philadelphia, where only seven of the 1,600
licensed taxicabs are wheelchair accessible, Uber is attempting to increase the number of
accessible vehicles in another program under the UberWAV name.
9
Uber is directly contracting
with licensed paratransit drivers to provide wheelchair accessible vehicles.
10
Bill 54-14, includes some accessibility provisions, described above, but does not include
any specific requirements as to the availability of wheelchair accessible
mc
vehicles or any
charges or fees aimed at expanding the availability of wheelchair accessible vehicles-for-hire in
the County. The Committee may wish to consider the approaches taken in other jurisdictions in
determining how best to maintain or improve levels of service for County residents requiring
wheelchair accessible transportation. The Committee may also wish to consider other measures
strengthening the accessibility provisions in the Bill.
As part of that consideration,
Council member Berliner, by letter dated February 19 to Acting DOT Director Al Roshdieh,
requested DOT's position on the use of a per-ride surcharge and a requirement of in-app
availability of wheelchair-accessible vehicles (©345-348). A response to this inquiry has not yet
been received, but will be part of an addendum to this packet should it be received before the
worksession.
l>riverl1'leetIssues
Since the Bills were introduced, several taxicab drivers affiliated with the Montgomery
County Professional Drivers Union (MCPDU) have communicated with Councilmembers
concerning problems in their relationships with the fleets for whom they drive. The drivers
described a situation in which they must pay to the taxicab company what they perceive as an
exorbitant daily lease rate for a taxicab with a PVL, a charge for insurance far above market
rates, an elevated credit card processing fee, and myriad others charges related to their operation
of a fleet taxicab. Drivers also expressed dissatisfaction with the dispute resolution and decision­
making processes in the industry.
Specific requests made by the drivers include:
(1)
a cap on the lease rates charged for
taixcabs; (2) the opportunity for drivers to choose their own means of processing credit cards,
and a 5% limit on processing charges imposed by fleets; (3) uniform contract language; (4)
mandatory dispute resolution, culminating in binding arbitration; and (5) regular review of
Chapter 53 by the County, ©198-202. In response to information provided by the drivers and
testimony at the public hearing, Councilmember Berliner, by letter, requested certain relevant
information from the five taxicab companies operating in the County. All companies have
responded, providing varying amounts of information. This letter and the responses received are
at ©203-236. Also, in his above-referenced February 19 letter to Acting DOT Director
http:Ublog.uber.com!nyc-uberwav
7
http:Ublog.uber.com!accessiblechicago
8"WAV" is an abbreviation of "Wheelchair Accessible Vehicle."
!l
http://blog.uber.com!phillyWAV
10
http:Uarticles.philly.com!2014-09-24!business!54244415 1 puc-wheelchair-accessible-vehicles-brokerage­
license
6
5
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Roshdieh, Councilmember Berliner posed a number of questions related to: taxicab lease rates;
credit card processing and other charges imposed on drivers; dispute resolution; and expanding
opportunities for drivers to obtain licenses.
Riemer proposal
On February 23, Council member Riemer sent a memorandum to the Committee members
asking their consideration of a number of amendments to Chapter 53 that would address the
concerns raised by the MCPDU drivers (©349-362). The Riemer proposal would:
• Create a commission, appointed by the Executive and confirmed by the Council,
composed of two representatives of fleets and two representatives of drivers to
recommend to the Director of DOT:
).>-
Maximum taxicab lease rates charged by fleets;
).>-
Uniform agreeme.nts that must be used by fleets; and
).>-
A list of types and amounts of other allowed charges.
• Require that all operating agreements between fleets and drivers or affiliates:
).>-
Not exceed a term of one year;
).>-
Not be subject to automatic renewal;
).>-
Provide for dispute resolution culminating in binding arbitration.
• Require that all operating agreements between fleets and drivers provide that a fleet
ensures that the driver. will earn from fares and tips, less expenses, an amount at least
equal to the County minimum wage.
• Limit the credit card processing charge imposed by a fleet to 5% ofthe transaction.
A letter in support of the Riemer proposal was received from representatives of the AFL-CIO on
February 24 (©363).
The requirement that a fleet ensures that a driver earn an amount equivalent to the County
minimum wage may raise some concern about the independent contractor status of drivers. The
Internal Revenue Service applies a 20 factor test in determining whether a person is an employee
or independent contractor. Requiring a fleet to essentially guarantee that a driver earns a
minimum amount would militate in favor of a fmding that the person is an employee in two of
those factors: "how the business pays the worker" and "the extent to which the worker can
realize a profit or loss." Employment status exists on a continuum. Putting the fleet in the
position where it may pay the worker, and removing the risk of loss for the worker, would move
the relationship toward employee on the continuum.
It
is not certain that this requirement would
result in a driver being deemed an employee, but the prospect should be considered, along with
the practical difficulty in determining the hours worked and tips received by the driver.
In
addition to the provisions above, which directly correspond to some of the drivers'
requests, the Riemer proposal would also dramatically alter the makeup of the taxicab business
in the County by:
• Requiring the issuance of 200 new PVLs to individuals in 2016;
• Making PVLs non-transferable; and
• Establishing 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.
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The above three components of the Riemer proposal should be discussed in conjunction with the
matters of PVL transferability and sublicensing. The issuance of a significant number of
individual PVLs, in particular, 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 consider whether
circumstances have changed sufficiently or otherwise warrant a move away from a fleet based
model. Also, given the persistent allegations of large numbers of fleet taxicabs sitting idle, the
Committee should consider whether it is more desirable to reclaim and redistribute "idle"
licenses through more active enforcement or strengthening of the continuous operation
requirement.
Transfer ofPVLs and Sublicensing
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
2 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 3 years.
The CCTI Draft includes amendments to MCC § 53-204 that would remove the above­
described restrictions on the transfer ofPVLs. Transfers would still be subject to the approval of
the Director under the process set forth in MCC § 53-204(b) as follows:
(b)
A license may be transferred only if:
(l)
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.
Is the removal ofrestrictions on the transferability ofPVLs in the public interest?
The restrictions on the transfer ofPVLs from fleets to individuals - no more than two per
year, and no more than 30% of the licenses 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 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 an
7
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academic exercise.
It
should also be noted that the advocacy group representing at least some
taxicab drivers when Chapter 53 was last comprehensively amended in 2004 11 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.
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, leading 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 12 is essentially guaranteed, regardless of any consolidation of existing
licenses. That said, if the Committee believes that it remains important to prevent consolidation,
this restriction could be retained while the other restrictions are removed.
On February 24, CCTI submitted a "white paper" the justification for a cap on the
number of taxicabs, and discussing the issues related to transferability ofPVLs (©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 a limited number of taxicabs ensures higher
quality customer service, that allowing PVLs to have transfer value is intrinsic to the established
taxicab market, and that transferability ofPVLs is critical
to
the viability of taxicab companies.
Centralized Digital Dispatch
Bill 55-14 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.
The D.C. regulations require the establishment of a taxicab cooperative,13 while Bill 55­
14 merely requires the establishment of a centralized electronic dispatch system by DOT. Input
from DOT on how it would administer such a digital dispatch will be crucial in determining how,
if at all, the requirements of Bill 55-14 should be amended.
In his February 23 proposal, Councilmember Riemer, in addition to requesting
Committee support for the driver protection measures discussed above, 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.
The vendor preferences in the Riemer proposal would seem to further the goal of greater
regional interoperability of the dispatch. The removal of the dispatch and affiliation
11
The group in 2004 was called Cabdrivers Allied for Better Service (CABS).
12
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.
13
http:Udctaxi.dc.gov/sites/default/files/dc/sites/dc%20taxi/event contentlattachments/Chapters16and99.pdf
8
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requirements may at some point be appropriate, but the Committee should be mindful of the fact
that not all passengers use smartphones or pay with credit cards. Market demand may drive the
continuation of
2417
telephone dispatch. However, the removal of the existing dispatch and
affiliation requirements could, theoretically, result in a situation where these passengers have
limited or no access to pre-arranged taxicab service.
This packet contains:
Proposed Maryland PSC Regulations
Maryland General Assembly HB1160 (2014)
Seattle Rule on Wheelchair Accessible Services Surcharge
MinnPost story on Wheelchair Accessible Program
Berliner Letter to Roshdieh
Riemer Proposal
Support letter for Riemer Proposal
Schaller Memorandum, July 26, 2004
Schaller Memorandum, August 9, 2004
CCTI Response to PVL Issues Raised in W orksession #2
F:\LAW\BILLS\14S4 Taxicabs - Transportation Network Service\T&E Memo 02.27.IS.Doc
Circle #
311
326
338
342
345
349
363
364
374
379
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20.95.01.03
.03 Definitions.
A. In
this
chapter, the following terms have the meanings indicated.
B. Terms Defmed.
(1) "Commission" means the Public Service Commission of Maryland.
(2) "Company" includes every corporation, association, partnership, group of individuals, or
individual owning, controlling, operating, or managing one or more motor vehicles engaged in
the transportation of persons for hire over any road between fixed termini, over a more or less
regular route, on a more or less fixed schedule, or transportation from point to point that is
pre-arranged between the company and a rider.
(3) Motor Vehicle.
(a) "Motor vehicle" includes all vehicles or machines propelled by any power other than
muscular used upon the public roads, not on rails, for public transportation of persons for
compensation.
(b)
"Motor vehicle" does not include a taxicab.
(4) "Operator" means any person engaged in driving a motor vehicle for which a permit has been
issued.
(5) "Owner" means the individual, partnership, carrier, transportation network company, TNC
Partner, or company, to whom a permit has been issued.
(6) "Permit" means the motor carrier or driver's permit issued by the Commission.
(7) "Roads" means State or State-aid roads, improved county roads, or streets and roads of
incorporated towns and cities in the State.
(8) "State" means the State of Maryland.
(9) "Surge pricing" means the practice of a company that uses a digital platform applying a
multiplier to customer fares during a surge pricing event.
(10)
"Surge pricing event" means a finite time period for a dermed geographic area, during
which a Company may utilize surge pricing in response to increased demand, in
accordance with criteria set forth in the Company's tariff.
(11) "Transportation Network Company" (TNC) means a company issued a permit by the
Commission and operating in the State of Maryland that offers pre-arranged
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transportation services for compensation using a TNC platform or application to connect
riders to for-hire transportation services provided by TNC Drivers. A company that
received a motor carrier permit from the Commission prior to January 1,2015 is a
transportation Network Company when that company uses a TNC platform or application.
(12) "TNC Partner" means an individual with a passenger-for-hire driver's license who
operates a motor vehicle that is:
(a) owned, leased, or otherwise authorized for use by the individual;
(b) not a taxicab;
(c) approved for use as a passenger-for-hire vehicle by the Commission; and
(d) used to provide for-hire transportation services.
(13) "TNC Platform" means a digital platform used by a Transportation Network
Company to connect riders to TNC Partners who provide for-hire transportation services
for compensation.
.
(14) "TNC Partner Vehicle" means a vehicle that is used by a TNC
Partner to provide pre-arranged passenger transportation services requested through a
TNC Platform, using Commission approved motor vehicles and operators.
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20.95.01.06
B. Civil Penalty Violations. The following violations are subject to a civil penalty under Public
Utilities Article, §I3-202, Annotated Code of Maryland:
(I) Operating a motor vehicle after a permit is suspended or revoked;
(2) Failure to present a motor vehicle for inspection;
(3) Failure to file with the Commission an inspection certificate from a facility licensed by the
State to perform motor vehicle inspections;
(4) Failure to carry appropriate insurance or provide evidence of coverage to the Commission
under Regulation .18 of this chapter;
(5) Operating a motor vehicle which has been placed out of service;
(6) Operating a motor vehicle without a valid state driver's license or valid passenger-for-hire
driver's license;
(7) Operating a motor vehicle while under the influence of alcohol or drugs, as defined under
State law;
(8) Violation of State or local law relating to motor vehicle traffic control, the violation of which
directly contributed to the cause of a fatality;
(9) Reckless driving while operating a motor vehicle, as defmed under State or local law;
(10) Leaving the scene of a motor vehicle
~cident
while
operating a motor vehicle;
(11) Operating a motor vehicle which has had recurring violations ofthe equipment and safety
standards under 49 CFR 393, as amended, which is incorporated by reference, Transportation
Article, Title 22, Annotated Code of Maryland, or COMAR Title 11, committed with actual
knowledge of and a conscious failure to avert the violation;
(12) Use of a motor vehicle subject to the provisions ofthis chapter before obtaining approval of
the Commission;
(13) Falsification of a certification statement that a defect in a motor vehicle has been repaired;
(14) Operating a motor vehicle which has been placed out of service for the same violation more
than two times
in
a I-year period or over 50 percent ofthe time inspected in a I-year period,
whichever is less; or
(15) Failure ofthe owner or an operator of a motor vehicle to permit inspection of a vehicle or of
records relating to a permit.
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(16) Operating a motor vehicle without a valid motor carrier permit.
20.95.01.08
.08 Schedules-Times, Rates, and Charges.
A. The provisions ofthis regulation do not apply to a motor carrier providing transportation for
hire by or through contract with a public authority, or a federal, State, district, or municipal
transportation agency.
B.
(l)
A schedule oftimes, rates, and charges may not be instituted or changed by an owner
without
prior appfOyal of the Commission
providing the Commission JG-.14 days written notice.
(2)
Unless the Commission suspends a schedule filed under paragraph
(1)
of this section
within 14 days, the schedule shall take effect on the date specified in the schedule.
(3)
A schedule of rates may include a range of maximum and minimum rates. including
any applicable surge pricing.
C. An owner shall file with the Commission a schedule of its times, rates, and charges
gi¥e
the
Commission and the pHblie
:3
0 days written notice before
any
changes in its times, fates, and
chargcs, as required in Regulation .08B of this Subchapter. For transportation services
provided through the use of a Transportation Network Company's digital platform, the
Transportation Network Company shall be the owner required to submit rates on behalf of
its TNC Partners.
D. An application for authority to institute or change times, rates, and charges shall
be
typewritten or printed and shall include an original and:
(1)
Two copies of the proposed
tariff
change; and
the following information:
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(a) A reference to the specific time, rate, or charge section being instituted or changed,
(b)
A list ofthe time, rate, or charge pages being revised,
(c) A brief description of the nature of the time, rate, or charge addition or change,
(g) The proposed effective date,
(h) The name and telephone number of a representative of the owner capable of answering any
question the Commission may have concerning the time, rate, or charge, and
(i) The signature ofthe owner, or in the case of a corporation, of an authorized representative.
E.
An
owner shall provide access to a copy of the effective and proposed schedule of times,
rates, and charges to the public at their principal place of business, or gn a website, or in both
locations.
F. A Transportation Network Company shall disclose the following information to a
passenger before the passenger agrees to a trip with a Transportation Network Company:
(1) The method for calculating the fare;
(2) The applicable rate being charged;
(3) Notice that surge pricing is in effect and the multiplier to be applied,
if
applicable;
(4) Notice of the type and amount of any additional fee or fees being charged; and
(5)
An
estimated fare for the transportation service that will be provided, based on
passenger-input pick-up and drop-otT points.
G. A Transportation Network Company shall permit all passengers to view on their
personal computer or mobile device a photograph of the authorized TNC Partner, the
vehicle's license plate number, and the Transportation Network Company's Commission
motor carrier permit number prior to entering the Commission approved vehicle.
H. A Transportation Network Company, on completion of transportation services, shall
transmit an electronic receipt to the passenger's electronic mail address or mobile
application documenting:
(1) The origin and destination of the trip;
(2) The total time of the trip;
(3) The total fare paid, including the base fare and any additional charges incurred for
distance traveled or duration of the prearranged ride;
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(4) The driver's first name;
(5) The Company name, a customer support telephone number and e-mail address.
I. A Transportation Network Company shall make available on its digital network and web
site a customer support telephone number and e-mail address for passenger inquires, as
well as instructions to passengers for filing a complaint with the Commission. A
Transportation Network Company may provide customer support by other means, in
addition to offering a customer support telephone number.
J.
A Transportation Network Company shall submit to the Commission for acceptance a
tariff setting forth maximum and minimum rates, with any applicable surge pricing capped
at a maximum multiplier, and demand criteria under which surge pricing may be applied.
K.
The Commission may maintain on its website a list of the rates and charges offered by
all transportation-for-hire companies, for the purposes of comparison by consumers.
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20.95.01.09 (Deleted)
.09 Schedules.
A. Ex:eept in an emergeney, a motor vehicle may not be operatea on
any
scheaufe other than that
approvea by FILED WITH the Commission.
B. An O'\Vfler shall give the Commission
ana
the public 30 8.ays notice before the proposea
ef:feethre eate of a re·;ision or abanaomnent of a scheaufe of times, rates,
ana
charges.
C. An o'+'t'Her operating on a regular sehedale shall notify the public of a proposea seheaule
re>lision or abanoomnent by conspicuously posting notices in all terminals ana on all motor
vehicles proviaing service to passengers affected by the schedule change.
D. Notice to the public shall be
in
a
rofHl
aeceptable to
the
Commission
ana
shall contain, at a
minimum, the effect of the proposed seheaufe revision or abaneemnent and
the
proposed
effecthze 8.ate, and shall indicate that a protest may be made in writing to the Marylana Publio
Service Commission.
20.95.01.11
.11 Required Equipment, and Minimum Safety Standards.
A. A motor vehicle, including a leased or reserved motor vehicle, used by a carrier
or
Transportation Network Company
shall:
(1)
Comply with Transportation Article, Title 22, Annotated Code of Maryland, relating to
required equipment on motor vehicles;
(2) Comply with 49 CFR 393, as amended, which is incorporated by reference, relating to
required equipment on motor vehicles operated in Maryland;
(3) Be equipped with:
Ea)
lA...n
operative speeaometer,
(b) Thfee roadsiae reflectors,
Eo) A fire ex:tingmsher with a minimum rating of 5 BC,
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(a) A light or lights within the motor vehicle arranged to illuminate the entire interior except for
the area occupied by the driver, and
(b)
A heating
and air conditioning
system,
installed by the vehicle manufacturer at the time
of manufacture;
(4) Have a sigil posted oonspiouously, pfohibiting smoking Of the oarrying of lighted tobacoo
products;
Be identified by a distinctive number, and have the name, trade name, or company logo
conspicuously displayed, unless waived by the Transportation Division of the Commission
or,
if
the vehicle is a TNC Partner Vehicle, be identified by a removable insignia as specified in
subchapter 24
of this
Chapter, and in the Transportation Netwok Company's digital
platform by providing the TNC Partner Vehicle license plate number and a picture of the
TNC Partner; and
(~)
(6) Be kept clean and sanitary.
B. Inspection.
(1)
At the direction of the Commission an owner of a motor vehicle shall present the motor
vehicle for inspection by a Commission representative.
(2) Upon presenting proper identification, the Commission or its representative may enter a
motor vehicle for the purpose of inspecting the vehicle, vehicle equipment, or records ofthe
carner.
(3) A representative ofthe Commission, after inspection and a determination that a motor vehicle
does not comply with the requirements of this chapter, may require:
(a) The repair or replacement of the motor vehicle;
(b)
That the motor vehicle be removed from service pending the repair or replacement; and
(c) That an owner of a motor vehicle, which has been removed from service for repair, provide
evidence of the repair.
(4) The Commission may require an owner of a motor vehicle to provide an inspection certificate
from a facility licensed by the State to perform Motor vehicle inspections.
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20.95.01.19
.19 Prohibited Conduct.
A.
An
owner of a motor vehicle used in the transportation of a person for hire, which is not
licensed as a taxicab by a county or by the Commission, may not:
(1)
Paint, identify, or letter the motor vehicle to resemble the distinctive color scheme or
markings of a taxicab;
(2) Equip the motor vehicle with a dome light or
taxi
meter;
(3) Advertise the use of a motor vehicle as a taxicab service;
(4) Dispatch a motor vehicle to pick up a customer calling for a taxicab;
(5) Accept or dispatch a motor vehicle from a telephone number identified or advertised as
providing taxicab service; or
(6) Advertise the transportation of a person for hire, unless the advertisement includes the permit
number issued by the Commission.
B. An
owner of a motor vehicle may not permit or direct an operator of a motor vehicle in the
transportation of a person for hire to:
(1)
Pick up an individual hailing the motor vehicle from the street;
(2) Discharge an individual at random; or
(3) Solicit an individual at a public or private taxicab stand or at Baltimore/Washington
International Airport.
C. A
Transportation Network Company may not permit or direct a
TNC
partner to:
(1)
Pick up an individual hailing the motor vehicle from the street or through any means
other than the digital platform used by the Transportation Network Company;
(2)
Discharge an individual at random;
(3)
Solicit an individual at a public or private taxicab stand or at BaltimorelWashington
International Airport; or
(4) Solicit an individual on the street.
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20.95.01.20
.20 Transportation Network Company
A. A Transportation Network Company shall:
(1) Have a permit from the Commission authorizing its operation;
(2) Register with the Maryland State Department of Assessments;
(3) Maintain a registered agent in Maryland;
(4)
Comply with all Commission for-hire drivers licensing requirements, vehicle
inspections and insurance requirements, and shall ensure compliance by all TNC Partners
operating under its permit;
(5) Maintain a current registry of all operators, vehicles and TNC platform activity
associated with the TNC and make available for Commission review upon request;
(6) Provide TNC Partners with a Transportation Network Company identification as
defined under 20.95.01.22 (9);
(7) Provide the following information on its website:
(a) The Transportation Network Company's customer service telephone number
or electronic mail address;
(b) The procedure for reporting a complaint; and
(c) A telephone number and electronic mail address for the Maryland Public
Service Commission.
(8) Maintain, or require its TNC partners to maintain primary insurance coverage:
(a) Of the types specified in Section 20.95.01.18 of this Chapter; and
(b) In amounts no less than those specified in Section 20.95.01.18 of this Chapter
(9) Transportation Network Company and TNC Partner insurance coverage must be
in effect at all times when a TNC Partner is logged on to the Transportation Network
Company's platform.
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(10) A TNC Partner's personal automobile insurance policy does not meet the
requirements of this section, unless the policy expressly provides primary coverage when
the TNC Partner is offering for-hire transportation services.
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20.95.01.21 Transportation Network Company Partner Licenses.
(1) Individuals who wish to operate as TNC partners shall apply for passenger-for­
hire driver's licenses through a TNC.
(2) Each TNC is authorized to file with the Commission applications for temporary
driver's licenses.
(3) The Commission shall issue temporary driver's licenses to a TNC on behalf of
TNC Partners upon review of a complete application. An application will be deemed
complete if it contains:
(a) A local and national background check completed by a third party that is
accredited by the National Association of Professional Background Screeners;
(b) A copy of the TNC Partner's valid driver's license, the TNC Partner's social
security number, and two color photos I" by
1~"
of the TNC Partner, which may be digital
photographs;
(c) A complete certified driving record;
(4) Once a TNC submits a completed application for a temporary driver's license,
the Commission·shall have no more than ten (10) business days to render a decision on the
application and issue or deny a temporary license.
(5) During the review process described in subsection (4) of this section, a TNC
Partner whose application is pending before the Commission is authorized to operate as a
TNC Partner on a provisional basis until the Commission renders a decision on the
application for temporary license.
(6) Within 60 days of the issuance of a temporary driver's license by the
Commission, a TNC Partner who wishes to continue operating as a TNC Partner shall
provide a fmgerprint supported State and FBI background investigators' record check to
the Commission.
(7) The Commission shall issue a driver's license of up to three years to a TNC
Partner upon receipt of a fingerprint supported State and FBI background investigators
record check, unless the results of the record checks show that the applicant has been
convicted of a crime or driving offense that bears a direct relationship to the applicant's
fitness to serve the public as a for-hire driver.
(8) Subsections 2 through 7 of this regulation shall expire 90 days after the effective
date of this regulation, after which TNC Partner passenger-for-hire driver's license
applications submitted by the Transportation Network Company shall be processed by the
Commission in the same manner as other passenger-for-hire driver's license applications.
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.20.95.01.22 Transportation Network Company Partner
A. A TNC Partner shall:
(1) Comply with all Commission for-hire drivers licensing, vehicle inspection, and
insurance requirements;
(2) Accept only transportation arranged through a TNC's platform and shall not
solicit or accept street-hails;
(3) Display a TNC identification defined under 20.95.01.22 (9) at any time that the
operator is logged onto a TNC's platform;
(4) Possess a valid driver's license;
(5) Be at least 18 years of age, and have at least six months of driving experience; and
(6) Provide the Commission with Maryland State inspection certificates upon
request.
20.95.01.23 Transportation Network Company Partner Vehicle Permits.
(1) Individuals who wish to operate as TNC partners shall apply for vehicle permits
through a TNC.
(2) Each TNC is authorized to file with the Commission applications for vehicle
permits.
(3) The Commission shall issue vehicle permits to TNCs on behalf of TNC Partner
Vehicles upon receipt and review of a complete application. An application will be deemed
complete if it contains:
(a) A copy of the valid vehicle registration for the TNC Partner Vehicle;
(b) A copy of a safety inspection certificate for the TNC Partner Vehicle issued
within the last 90 days by a facility licensed by the State to perform motor vehicle
inspections; and
(c) Proof that the vehicle complies with the requirements of Section 20.95.01.24.
(4) Once a TNC submits a completed application for a permit, the Commission shall
have no more than ten (10) business days to render a decision on the application and issue
or deny a permit.
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(5) For a period of 90 days following the publication of this regulation as a final
regulation, a TNC Partner whose application is pending before the Commission is
authorized to operate their TNC Partner Vehicle on a provisional basis until the
Commission renders a decision on the application.
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20.95.01.24
.Transportation Network Company Partner Vehicle
A. A TNC Partner Vehicle shall:
(1) Have a permit from the Commission authorizing its operation;
(2)
Have a manufacturers rated seating capacity of no more than
8
passengers
including the driver;
(3) Not exceed more than 10 model years old;
(4) Be inspected for safety before being used to provide for-hire services, and
thereafter on an annual basis at a facility licensed by the State of Maryland to perform
motor vehicle inspections;
(5) Comply with all required equipment and minimum safety standards as defined in
COMAR 20.95.01.11;
(6) Comply with all insurance requirements as defined in COMAR 20.95.01.18; and
(7) At all times while engaged on the TNC platform display on the vehicle a
consistent and distinctive TNC identification, approved by the Commission, consisting of a
logo, insignia, or emblem. The TNC identification shall be:
(a) Sufficiently large and color contrasted so as to be readable during daylight
hours at a distance of at least 50 feet,
(b) Reflective or otherwise patently visible in darkness,
(c) Displayed in a manner that complies with Maryland Motor Vehicle Laws.
(9) The TNC identification may take the form of a removable device.
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HOUSE BILL 1160
C5
By:
Delegate Barnes
Introduced and read fIrst time: February 7,2014
Assigned to: Economic Matters
A BILL ENTITLED
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AN ACT concerning
4lr1868
CFSB919
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Public Utilities ­ Transportation Network Services ­ Establishment
FOR the purpose of authorizing the establishment of transportation network services
in the State; authorizing an individual to submit an application for registration
as a transportation network operator; requiring a transportation network
application company to approve or deny a certain application within a certain
period of time; requiring a transportation network application company to
conduct, or have a third party conduct, a certain criminal history records check
using a certain database and obtain and review a driving record check for each
applicant before approving an application for the applicant; prohibiting a
transportation network application company from approving an application for
an applicant who has been convicted of certain crimes; requiring a
transportation network operator to meet certain qualifications; requiring a
transportation network application company to create an application process for
individuals to apply for registration as a transportation network operator;
requiring a transportation network application company to maintain certain
records and a certain registry of transportation network operators; requiring a
transportation network application company to submit certain information
to
the Public Service Commission; requiring a transportation network application
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company to conduct, or have a third party conduct, a safety inspection of a
motor vehicle that will be used to provide transportation network services
before the motor vehicle is used to provide transportation network services;
requiring a transportation network application company to provide certain
information on the transportation network application company's Web site;
authorizing a transportation network application company or a transportation
network operator to provide transportation network services at no cost, for a
suggested donation, or for a certain fare; requiring a transportation network
application company to disclose certain fare information to a passenger before
the passenger arranges a trip with a transportation network application
company or a transportation network operator; requiring a transportation
network application company to transmit a certain electronic receipt to a
EXPLANATION:
CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets1 indicate matter deleted from existing law.
1111111111111111111111111111111111111111
@
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2
HOUSE BILL 1160
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1-101.
passenger on completion of providing transportation network services; requiring
a transportation network application company to implement a certain policy on
the use of drugs or alcohol while an individual is arranging or providing
transportation network services; requiring
Ii
transportation network application
company to maintain certain insurance coverage; requiring a transportation
network operator to provide certain insurance information
if
a certain accident
occurs; specifying that a transportation network application company and a
transportation network operator are not common carriers; exempting a person
that provides transportation network services from certain provisions of law
relating to rate regulation; exempting a motor vehicle used to provide
transportation network services from certain provisions of law relating to
for-hire driving services; specifying that certain provisions of law relating to
for-hire driving services do not apply to a transportation network application
company or a transportation network operator; defining certain terms; and
generally relating to transportation network services.
BY repealing and reenacting, without amendments,
Article - Public Utilities
Section 1-101(a)
Annotated Code of Maryland
(2010 Replacement Volume and 2013 Supplement)
BY repealing and reenacting, with amendments,
Article - Public Utilities
Section 1-101(e), (Pp), (qq), and (rr), 4-101, and 10-102(b)
Annotated Code of Maryland
(2010 Replacement Volume and 2013 Supplement)
BY adding to
Article - Public Utilities
Section 1-101(Pp), (qq), and (rr) and 4-101.1; and 10.5-101 through 10.5-107
to
be under the new title "Title 10.5. Transportation Network Services"
Annotated Code of Maryland
(2010 Replacement Volume and 2013 Supplement)
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:
Article ­ Public Utilities
(a)
In this division the following words have the meanings indicated.
(e)
(1)
"Common carrier" means a person, public authority, or federal,
State, district, or municipal transportation unit that is engaged in the public
transportation of persons for hire, by land, water, air, or any combination of them.
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HOUSE BILL 1160
3
1
(2)
"Common carrier" includes:
(i)
an airline company;
a car company, motor vehicle company, automobile company,
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(ii)
or motor bus company;
(iii) a power boat company, vessel-boat company, steamboat
company, or ferry company;
(iv)
company;
(v)
(vi)
(vii)
(3)
a taxicab company;
a toll bridge company; and
a transit company.
a railroad company, street railroad company, or sleeping car
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"Common carrier" does not include:
(i)
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a county revenue authority;
a toll bridge or other facility owned and operated by a county
(ii)
revenue authority;
(iii)
(iv)
Resources Article;
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a vanpool or launch service; [or]
a for-hire water carrier, as defined in
§
8-744 of the Natural
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(v)
OR
(VI)
A TRANSPORTATION NETWORK APPLICATION COMPANY;
A TRANSPORTATION NETWORK OPERATOR.
(pp)
"TRANSPORTATION NETWORK APPLICATION COMPANY" HAS THE
MEANING STATED IN
§
10.5-101
OF THIS ARTICLE.
(QQ)
"TRANSPORTATION NETWORK OPERATOR" HAS THE MEANING
STATED IN
§
10.5-101
OF THIS ARTICLE.
(RR) "TRANSPORTATION NETWORK SERVICES"
STATED IN
§
10.5-101
OF THIS ARTICLE.
HAS
THE
MEANING
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HOUSE BILL 1160
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[(Pp)]
(SS)
(1)
"Transportation
transportation of persons by:
(i)
(ii)
of
persons
for
hire"
means
the
regularly scheduled operations;
charter or contract operations; or
tour or sightseeing operations.
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(iii)
(2)
"Transportation of persons for hire" includes the transportation of
persons, whether on the cooperative plan, carried by a corporation, group, or
association engaged
in
the transportation of its stockholders, shareholders, or
members.
[(qq)]
(TT)
"Water company" means a public service company that owns a
water plant and sells or distributes water for gain.
[(rr)]
(UU)
"Water plant" means the material, equipment, and property owned
by a water company and used or
to
be used for or in connection with water service.
4-101.
(A)
In this title [,]
THE FOLLOWING WORDS HAVE THE MEANINGS
INDICATED.
(B)
["just]
"JUST
and reasonable rate" means a rate that:
(1)
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does not violate any provision of this article;
fully considers and is consistent with the public good; and
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(2)
(3)
except for rates of a common carrier, will result in an operating
income to the public service company that yields, after reasonable deduction for
depreciation and other necessary and proper expenses and reserves, a reasonable
return on the fair value of the public service company's property used and useful in
providing service to the public.
(C)
"TRANSPORTATION NETWORK
STATED IN
§
10.5-101
OF THIS ARTICLE.
SERVICES"
HAS
THE
MEANING
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4-101.1.
THIS TITLE DOES NOT APPLY
TRANSPORTATION NETWORK SERVICES.
TO
A
PERSON
THAT
PROVIDES
30
10-102.
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HOUSE BILL 1160
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(b)
(1)
This title applies to any motor vehicle used in the transportation of
persons in exchange for remuneration except:
[(1)]
[and]
(I)
motor vehicles designed to transport more than 15 persons;
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[(2)]
(II)
transportation solely provided by or on behalf of a unit of
federal, State, or local government, or a not-for-profit organization as identified in
§
501(c)(3) and
(4)
of the Internal Revenue Code, that requires a criminal history records
check and driving record check for its drivers, for clients of services including:
[(i)]
[(ii)]
[(iii)]
[(iv)]
[(v)]
[(vi)]
[(vii)]
1.
2.
3.
aging support;
developmental and other disabilities;
kidney dialysis;
Medical Assistance Program;
Head Start;
Welfare-to-Work;
mental health; and
job training; AND
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4.
5.
6.
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[(viii)]
8.
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(III) A
MOTOR
THAT
IS
USED
VEHICLE
BY
A
TRANSPORTATION NETWORK OPERATOR TO PROVIDE TRANSPORTATION
NETWORK SERVICES UNDER TITLE
10.5
OF THIS ARTICLE.
(2)
NETWORK
OPERATOR.
THIS TITLE DOES NOT APPLY TO A TRANSPORTATION
APPLICATION COMPANY OR A TRANSPORTATION NETWORK
TITLE
10.5.
TRANSPORTATION NETWORK SERVICES.
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10.5-101.
(A)
IN THIS TITLE THE FOLLOWING WORDS HAVE THE MEANINGS
INDICATED.
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HOUSE BILL 1160
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(B)
"TRANSPORTATION NETWORK APPLICATION COMPANY" MEANS A
PERSON THAT USES A DIGITAL NETWORK OR SOFTWARE APPLICATION TO
CONNECT A PASSENGER TO TRANSPORTATION NETWORK SERVICES.
(C)
"TRANSPORTATION NETWORK OPERATOR" MEANS AN INDIVIDUAL
WHO OWNS OR OPERATES A MOTOR VEHICLE THAT IS:
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(1)
THE INDIVIDUAL'S PERSONAL MOTOR VEHICLE;
NOT REGISTERED AS A MOTOR CARRIER UNDER
§
13-423
OF
THE TRANSPORTATION ARTICLE; AND
(2)
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(3)
USED TO PROVIDE TRANSPORTATION NETWORK SERVICES.
(D) "TRANSPORTATION NETWORK.SERVICES" MEANS TRANSPORTATION
OF A PASSENGER:
(1)
BE'lWEEN POINTS CHOSEN BY THE PASSENGER; AND
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THAT IS PREARRANGED BY A TRANSPORTATION NETWORK
APPLICATION COMPANY.
(2)
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10.5-102.
(A)
AN
INDIVIDUAL MAY SUBMIT AN APPLICATION TO THE
TRANSPORTATION NETWORK APPLICATION COMPANY FOR REGISTRATION AS A
TRANSPORTATION NETWORK OPERATOR.
(B)
A
TRANSPORTATION NETWORK APPLICATION COMPANY SHALL
APPROVE OR DENY AN APPLICATION SUBMITTED UNDER SUBSECTION (A) OF
THIS SECTION WITHIN
60
DAYS AFTER THE APPLICATION HAS BEEN SUBMITTED.
(C)
BEFORE APPROVING AN APPLICATION SUBMITTED UNDER
SUBSECTION (A) OF THIS SECTION, A TRANSPORTATION NETWORK APPLICATION
COMPANY SHALL:
(1)
CONDUCT, OR HAVE A THIRD PARTY CONDUCT, A LOCAL AND
NATIONAL CRIMINAL HISTORY RECORDS CHECK FOR EACH APPLICANT USING
THE FOLLOWING DATABASES:
THE FEDERAL BUREAU OF INVESTIGATION'S NATIONAL
INSTANT CRIMINAL BACKGROUND CHECK SYSTEM, OR OTHER SIMILAR
(I)
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HOUSE BILL
1160
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COMMERCIAL NATIONWIDE DATABASE THAT USES A PRIMARY SOURCE SEARCH;
AND
(II)
DATABASE;AND
(2)
APPLI CANT.
(D)
A
TRANSPORTATION NETWORK APPLICATION COMPANY MAY NOT
APPROVE AN APPLICATION SUBMITTED UNDER SUBSECTION (A) OF THIS
SECTION FOR AN APPLICANT WHO:
(1)
AS SHOWN IN THE CRIMINAL HISTORY RECORDS CHECK
REQUIRED UNDER SUBSECTION (C)(l) OF THIS SECTION, HAS BEEN CONVICTED
WITHIN THE PAST
7
YEARS OF:
(I)
A CRIME OF VIOLENCE UNDER
§
14-101 OF THE
CRIMINAL LAW ARTICLE;
(II)
SEXUAL ABUSE UNDER TITLE
3,
SUBTITLE
3
OF THE
CRIMINAL LAW ARTICLE;
(III) ROBBERY UNDER
CRIMINAL LAW ARTICLE; OR
TITLE
OBTAIN AND REVIEW A DRIVING RECORD CHECK FOR EACH
A
NATIONAL
SEX
OFFENDER
PUBLIC
REGISTRY
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SUBTITLE
3
OF THE
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(IV) FRAUD THAT IS PUNISHABLE AS A FELONY UNDER
TITLE
8
OF THE CRIMINAL LAW ARTICLE;
(2)
AS SHOWN IN THE DRIVING RECORD CHECK REQUIRED UNDER
SUBSECTION (C)(2) OF THIS SECTION, HAS BEEN CONVICTED WITHIN THE PAST
7
YEARS OF:
(I)
RECKLESS
TRANSPORTATION ARTICLE;
DRIVING
UNDER
§
21-901.1
OF
THE
(II)
DRIVING UNDER THE INFLUENCE OF
ALCOHOL UNDER
§
21-902 OF THE TRANSPORTATION ARTICLE;
DRUGS
OR
(III) FAILURE TO REMAIN AT THE SCENE OF AN ACCIDENT
UNDER TITLE 20 OF THE TRANSPORTATION ARTICLE; OR
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8
HOUSE BILL
1160
1
2
(IV) FLEEING OR ELUDING THE POLICE UNDER
§
21-904 OF
THE TRANSPORTATION ARTICLE; OR
(3)
AS SHOWN IN THE DRIVING RECORD CHECK REQUIRED UNDER
SUBSECTION (C)(2) OF THIS SECTION, HAS BEEN CONVICTED WITHIN THE PAST
3 YEARS OF DRIVING WITH A SUSPENDED OR REVOKED LI CENSE UNDER
§
16-303 OF THE TRANSPORTATION ARTICLE.
10.5-103.
3
4
5
6
7
8
A
TRANSPORTATION NETWORK OPERATOR SHALL:
(1)
POSSESS:
9
10
11
12
(I)
A VALID DRIVER'S LICENSE;
(II) PROOF OF REGISTRATION FOR THE MOTOR VEHICLE
THAT IS USED FOR TRANSPORTATION NETWORK SERVICES; AND
(III) PROOF OF INSURANCE FOR THE MOTOR VEHICLE THAT
IS USED FOR TRANSPORTATION NETWORK SERVICES; AND
(2)
10.5-104.
(A)
BE AT LEAST 21 YEARS OLD.
13
14
15
16
17
18
19
20
A
TRANSPORTATION NETWORK APPLICATION COMPANY SHALL:
(1)
CREATE AN APPLICATION PROCESS FOR INDIVIDUALS TO
APPLY FOR REGISTRATION AS A TRANSPORTATION NETWORK OPERATOR UNDER
§
10.5-102 OF THIS TITLE;
(2)
MAINTAIN A CURRENT REGISTRY OF THE TRANSPORTATION
NETWORK APPLICATION COMPANY'S TRANSPORTATION NETWORK OPERATORS;
(3)
SUBMIT PROOF TO THE COMMISSION THAT THE COMPANY:
21
22
23
24
25
26
27
(I)
IS LICENSED TO DO BUSINESS IN THE STATE; AND
(II) MAINTAINS A WEB SITE THAT PROVIDES THE
TRANSPORTATION NETWORK APPLICATION COMPANY'S CUSTOMER SERVICE
TELEPHONE NUMBER OR ELECTRONIC MAIL ADDRESS;
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HOUSE BILL
1160
1
2
3
4
9
(4)
CONDUCT, OR HAVE A THIRD PARTY CONDUCT, A SAFETY
INSPECTION OF THE MOTOR VEHICLE THAT A TRANSPORTATION NETWORK
OPERATOR WILL USE BEFORE THE MOTOR VEHICLE MAY BE USED TO PROVIDE
TRANSPORTATION NETWORK SERVICES;
(5)
PROVIDE THE FOLLOWING INFORMATION ON ITS WEB SITE:
5
6
7
8
9
10
11
(I)
THE
TRANSPORTATION
NETWORK
APPLICATION
COMPANY'S CUSTOMER SERVICE TELEPHONE NUMBER OR ELECTRONIC MAIL
ADDRESS;
(II) THE
TRANSPORTATION
NETWORK
APPLICATION
COMPANY'S ZERO TOLERANCE POLICY ESTABLISHED UNDER
§
10.5-106 OF THIS
TITLE;
(III) THE PROCEDURE FOR REPORTING A COMPLAINT ABOUT
AN INDIVIDUAL WHO A PASSENGER REASONABLY SUSPECTS VIOLATED THE
TRANSPORTATION NETWORK APPLICATION COMPANY'S ZERO TOLERANCE
POLICY; AND
(IV) A COMPLAINT TELEPHONE NUMBER AND ELECTRONIC
MAIL ADDRESS FOR THE COMMISSION; AND
(6)
MAINTAIN RECORDS FOR:
(I)
THIS TITLE;
(II) INFORMATION COLLECTED THROUGH A CRIMINAL
HISTORY RECORDS CHECK AND A REVIEW OF EACH APPLICANT'S DRIVING
HISTORY UNDER
§
10.5-102(C) OF THIS TITLE;
(III) THE
INFORMATION
REQUIRED
FOR
EACH
TRANSPORTATION NETWORK OPERATOR UNDER
§
10.5-103 OF THIS TITLE;
(IV)
OF THIS SECTION;
(V)
THE
SAFETY
SUBSECTION (A)(3) OF THIS SECTION;
INSPECTION
REQUIRED
UNDER
THE REGISTRY REQUIRED UNDER SUBSECTION (A)(2)
EACH APPLICATION SUBMITTED UNDER
§
10.5-102 OF
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
(VI) EACH TRANSPORTATION NETWORK SERVICE ARRANGED
BY THE TRANSPORTATION NETWORK COMPANY, INCLUDING COPIES OF
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10
1
2
3
4
5
6
HOUSE BILL 1160
RECEIPTS THAT ARE TRANSMITTED TO A PASSENGER UNDER
§
10.5-105(C) OF
THIS TITLE;
(VII) EACH COMPLAINT FILED FOR AN ALLEGED VIOLATION
OF THE TRANSPORTATION NETWORK COMPANY'S ZERO TOLERANCE POLICY
UNDER
§
10.5-106(A)(2)OF THIS TITLE;
(VIII) EACH INVESTIGATION BEGUN UNDER
§
10.5-106(A)(3)
OF THIS TITLE;
(IX) THE
TRANSPORTATION
NETWORK
APPLICATION
COMPANY'S INSURANCE POLICY REQUIRED UNDER
§
10.5-107(A) OF THIS TITLE;
AND
EACH ACCIDENT THAT INVOLVES A MOTOR VEHICLE
THAT IS USED FOR TRANSPORTATION NETWORK SERVICES PROVIDED BY THE
TRANSPORTATION NETWORK APPLICATION COMPANY.
10.5-105.
(A)
TITLE
4
OF THIS ARTICLE DOES NOT APPLY TO A PERSON THAT
PROVIDES TRANSPORTATION NETWORK SERVICES.
(B)
(1)
A
TRANSPORTATION NETWORK APPLICATION COMPANY OR A
TRANSPORTATION NETWORK OPERATOR MAY:
7
8
9
10
11
12
13
14
15
16
(x)
17
18
19
20
21
22
23
24
25
26
(I)
COST;
OFFER TRANSPORTATION NETWORK SERVICES AT NO
(II) SUGGEST
A
NETWORK SERVICES PROVIDED; OR
DONATION
FOR
TRANSPORTATION
(III) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION,
CHARGE A FARE FOR TRANSPORTATION NETWORK SERVICES PROVIDED.
(2)
IF A FARE IS CHARGED UNDER PARAGRAPH (1)(111) OF THIS
SUBSECTION, A TRANSPORTATION NETWORK APPLICATION COMPANY SHALL
DISCLOSE THE FOLLOWING INFORMATION TO A PASSENGER BEFORE THE
PASSENGER ARRANGES A TRIP WITH A TRANSPORTATION NETWORK
APPLICATION COMPANY OR A TRANSPORTATION NETWORK OPERATOR:
(I)
THE METHOD FOR CALCULATING THE FARE;
27
28
29
30
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HOUSE BILL 1160
1
11
(II)
THE APPLICABLE RATE BEING CHARGED; AND
FOR
THE
TRANSPORTATION
2
3
4
5
6
7
8
(III) AN ESTIMATED FARE
NETWORK SERVICES THAT WILL BE PROVIDED.
(C)
THE TRANSPORTATION NETWORK APPLICATION COMPANY, ON
COMPLETION OF TRANSPORTATION NETWORK SERVICES PROVIDED, SHALL
TRANSMIT AN ELECTRONIC RECEIPT TO THE PASSENGER'S ELECTRONIC MAIL
ADDRESS OR MOBILE APPLICATION DOCUMENTING:
(1)
THE ORIGIN AND DESTINATION OF THE TRIP;
THE TOTAL TIME AND DISTANCE OF THE TRIP; AND
A BREAKDOWN OF THE TOTAL FARE PAID, IF ANY.
9
(2)
(3)
10
11
10.5-106.
(A)
12
A
TRANSPORTATION NETWORK APPLICATION COMPANY SHALL:
13
14
15
16
17
18
19
(1)
IMPLEMENT A ZERO TOLERANCE POLICY ON THE USE OF
DRUGS OR ALCOHOL WHILE AN INDIVIDUAL IS ARRANGING OR PROVIDING
TRANSPORTATION NETWORK SERVICES;
IMMEDIATELY SUSPEND AN INDIVIDUAL WHO IS ARRANGING
OR PROVIDING TRANSPORTATION NETWORK SERVICES ON RECEIPT OF A
PASSENGER COMPLAINT ALLEGING THAT THE INDIVIDUAL VIOLATED THE ZERO
TOLERANCE POLICY; AND
CONDUCT AN INVESTIGATION FOR THE ALLEGED VIOLATION
OF THE ZERO TOLERANCE POLICY.
(B)
A
SUSPENSION ISSUED UNDER SUBSECTION (A) OF THIS SECTION
SHALL LAST FOR THE DURATION OF THE INVESTIGATION.
(2)
20
21
22
23
(3)
24
25
26
27
28
29
10.5-107.
(A)
A
TRANSPORTATION NETWORK APPLICATION COMPANY SHALL
MAINTAIN A COMMERCIAL LIABILITY INSURANCE POLICY THAT:
PROVIDES COVERAGE OF AT LEAST
$1,000,000
PER INCIDENT
FOR ACCIDENTS INVOLVING A TRANSPORTATION NETWORK OPERATOR WHILE
PROVIDING TRANSPORTATION NETWORK SERVICES; AND
(1)
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12
HOUSE BILL 1160
1
2
3
4
5
6
7
8
9
COVERS A CLAIM INVOLVING A MOTOR VEHICLE OPERATED BY
IS
PROVIDING
A
TRANSPORTATION
NETWORK
OPERATOR
WHO
TRANSPORTATION NETWORK SERVICES, REGARDLESS OF WHETHER THE
TRANSPORTATION NETWORK OPERATOR HAS AN INSURANCE POLICY THAT IS
ADEQUATE TO COVER ANY PORTION OF THE CLAIM.
(B)
(1)
IF AN ACCIDENT OCCURS INVOLVING A MOTOR VEHICLE THAT
IS BEING USED FOR TRANSPORTATION NETWORK SERVICES, THE
TRANSPORTATION NETWORK OPERATOR SHALL PROViDE PROOF OF THE
TRANSPORTATION NETWORK OPERATOR'S:
(2)
10
(I)
(II)
PERSONAL INSURANCE; AND
EXCESS LIABILITY COVERAGE.
11
12
13
14
(2)
A
TRANSPORTATION NETWORK OPERATOR WHO IS INVOLVED
IN AN ACCIDENT WHILE PROVIDING TRANSPORTATION NETWORK SERVICES
SHALL HAVE
24
HOURS TO PROVIDE PROOF OF EXCESS LIABILITY COVERAGE.
15
16
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
July 1, 2014.
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~~
Applicant:
Edward
B.
Murra', Ma)'or
City
OfSe~e
Finance and Aw,\in,tranve Services
Fred Podesta, Director
­
I
Page:
10f4
Publication:
10/16/2014
Supersedes:
New
Effective:
11/12/2014
City of Seattle
Department of Finance and Administrative
Services
Director's Rule:
R-6.310.175
Wheelchair Accessible Services Surcharge
Collection
Code and Section Reference:
SMC 6.310.175
Type of Rule:
Code Interpretation
Ordinance Authority:
SMC 3.02.060
,
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Approved:
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Fred Podesta, Director
II
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/D~l?e'
ItL
Date
Department of Finance and Administrative Services
700
Fifth
Avenue,
42
nd
&
43
r4
Aoors
Tel
(206) 386-0041
Fax (206)684-7898
P.O. Box 94669
Seattle, Washington 98124-4669
Hearing Impaired use the Washington Relay Service (1-
J
-I)
http://www.se~ttle.gov/FAS
@
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City
of Seattle
Taxicab and For-Hire Vehicle Rules
Rule R-6.310.175
Wheelchair Accessible Services Surcharge Collection.
Seattle Municipal Code (SMC) 6.310.175.A states as follows:
6.310.175 Wheelchair Accessible Services Fund
A.
In addition to the fees specified in subsection 6.310.150, as part of the license
issuance or renewal fee, taxicab, for-hire vehicle licensees, and transportation network
companies shall pay a $0.10 per ride surcharge for all rides originating in the City of
Seattle for each vehicle. As part of the City's taxi, for-hire, and transportation network
company regulation, this surcharge shall be used to offset the higher operational costs of
wheelchair accessible taxi ("WAT") services for owners and operators including, but not
limited to: vehicle costs associated with purchasing and retrofitting an accessible vehicle,
extra fuel and maintenance costs, and time involved in prOViding wheelchair accessible
trips. Funds shall be distributed by reimbursement for documented, itemized costs. The
Director shall adopt by rule the procedure for determining when and how to distribute
funds to WAT owners and drivers, induding imposing conditions of reimbursement,
imposing a maximum amount of reimbursement, and considering timely distribution of
reimbursement to WAT drivers and owners. In determining the distribution of funds, the
Director shall consider factors including, but not limited to actual consumer demand for
WAT services, total number ofWAT rides, total number ofWAT rides requested through
a TNC application, total paid trips per WAT, and average operating hours per WAT.
R-6.310.175
Wheelchair Accessible Services Fund. All Wheelchair Accessible Services (WAS)
surcharges will be deposited into the Wheelchair Accessible Services Fund. This fund is a
self-supporting fund that shall be used to offset the higher operational costs of
wheelchair accessible taxi (WAT) services.
Responsibility of Companies. Taxi Associations, For-Hire Vehicle Companies, and
Transportation Network Companies must collect WAS surcharges from all affiliated
vehicles - licensed or endorsed, file the authorized forms and data reports with the City of
Seattle, and remit the surcharges to the City of Seattle. Inability to collect from a driver
does not release the company's obligation to pay the WAS surcharge. For information on
data reporting, please refer to the SMC 6.310.540 as necessary.
Authorized forms. Reports shall be made upon forms authorized by the Director of the
Department of Finance and Administrative Services (the Director) or his/her designee.
Forms provided by the Director will be available to all licensed taxicab associations, for­
hire vehicle companies or transportation network companies prior to the due date of the
fee. The Director may reject a report made on a form not authorized by the Director.
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Trip. A trip is defined as transporting a passenger from one place to another for
compensation.
Trip Reporting Method. The Company will collect and report revenue trip documentation
for all affiliated licensees and remit $0.10 per trip to the Consumer Protection Unit of the
City of Seattle.
Reporting Frequency. The fee imposed by SMC Chapter 6.310.175 shall be reported and
paid in quarterly installments, unless, at the Director's discretion, companies are assigned
to a monthly or annual reporting period.
Due dates.
1. If on a quarterly schedule: WAS surcharge trip reports and payments are due on the
last day of the next month after the period covered by the form. For example, trip
reports covering the first quarter of the year are due on April 30.
2. If on a monthly schedule: WAS surcharge trip reports and payments are due on the
last day of the next month after the month covered by the report. For example, a
trip report covering the month of February is due on March 31, and a trip report
covering the month of March is due April 30.
3. If the due date for filing a trip report and payment falls upon a Saturday, Sunday, or
legal holiday, the filing is timely if the report is either
(i)
received by the City (in the
City' s possession), or
(ii)
postmarked by the United States Postal Service, on the
next business day.
Payment with Trip Report Required. The Director may refuse to accept any trip report
which is not accompanied by a remittance of the WAS surcharge payment shown to be due
thereon, or any payment which is not accompanied by a trip report form, and if not
accepted, the company shall be deemed to have failed to file a report, and shall be subject to
the imposition of a Class C penalty as prescribed in SMC 6.310.540.C.
Completing the trip report. All trip reports shall be signed by a responsible officer or agent
of the company unless the company has opted to file electronically. The individual signing
the form will certify or declare, under penalty of perjury under the laws of the State of
Washington, that the information contained in the trip report is true and correct.
Nonpayment of WAS Surcharge. If payment and trip report is not received by the due date,
an invoice for an estimated payment shall be sent to the Taxi Association, For-Hire Vehicle
Company or Transportation Network Company. The estimated payment will be based on
historical and current industry data obtained by the Consumer Protection Unit of the City
of Seattle.
Audits and Penalties. If any company fails to timely submit payment, the City of Seattle will
assess the WAS surcharge based on the estimated surcharge for that quarter and may issue
a license suspension notice.
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The City of Seattle may periodically audit trip records, dispatch records, application
records, or other records as required of companies to ensure accurate and complete
reporting of revenue trips.
Appeals. A company may request a hearing before a Hearing Examiner to appeal any
license suspension. A request for hearing must be submitted to the City of Seattle within
ten days ofthe license suspension.
3l//
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New program hopes to spur availability of wheelchair-accessible cabs
in
Minneapolis
I
M... Page 1 of 3
MINNPOST
New program hopes to spur availability of
wheelchair-accessible cabs in
Minneapolis
By Karen Boros
I
07/17/14
A
The Transportation Network Companies Lyft and Uber would each be assessed a $10,000 surcharge for the initiative.
program designed to encourage the creation of more wheelchair-ready taxicabs is part of a
larger plan to overhaul of how taxis and transportation network companies such as Lyft and
Uber are governed in Minneapolis. The City Council is expected to vote on the proposal Friday.
Currently, taxicab companies operating in Minneapolis are required to have
10
percent of their
vehicles wheelchair ready - a provision that few of the companies are in compliance with,
according to Grant Wilson, the city's manager of business licenses.
Under the new plan, a pool of money would be created for the wheelchair incentives program
by assessing a
$20
charge to each of the roughly
900
taxicabs in Minneapolis. In addition, the
Transportation Network Companies Lyft and Uber would each be assessed a
$10,000
surcharge for the initiative.
"There are concerns that [drivers] can pick and choose who they want to give a ride to and
when they want to give them a ride," said Council Member Cam Gordon, who pointed out that
persons requiring a wheelchair are not the only passengers with complaints about service.
https:llwww.minnpost.com/politics-policy/20
14/07
Inew-program-hopes-spur-availability-...
2/24/2015
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New program hopes to spur availability of wheelchair-accessible cabs in Minneapolis
I
M... Page 2 of 3
"What are we going to do if it looks like people of color are not getting picked up or parts of the
city are not being served?"
"There is a requirement to provide service to all
persons seeking a ride and a responsibility to
convey all orderly passengers," replied Wilson,
who explained that service for both the taxicabs
and cars-for-hire will be monitored.
Taxicab companies must have at least 10 licensed
wheelchair-accessible cabs in their fleet to qualify
for the incentive program, which will waive the
$950 license fee for each of those vehicles. The
program will also supply stipends for training
drivers to work with passengers needing
wheelchairs.
Companies with less than 10 wheelchair-accessible vehicles will still qualify for a license-fee
reduction, though at half the rate: $475 for each wheelchair accessible vehicle in their fleet.
To qualify for the incentive program, the taxicab companies are also required to have 24-hour
dispatch and around-the-clock service availability.
"What we've seen is that there has been quite a bit of discrimination over the years in our
ability to get cabs," said Council Member Jacob Frey, who sponsored the revised ordinances.
The new rules will allow the app-based Lyft and UberX services to operate legally in
Minneapolis, where have
both
have already been in service for several months while the new
rules were being written.
The two companies allow individual drivers, using their own vehicles, to arrange via
smartphone passenger pick up and drop off for an agreed upon fee. The services are not bound
by the city-issued fee structure for taxicabs.
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New program hopes to spur availability of wheelchair-accessible cabs in Minneapolis
I
M... Page 3 of 3
~
Daily newsletter
~
Sunday review
o
Greater Minnesota newsletter
RElATED CONTENT:
THE LINE
MSP's sharing economy hits the road: What you need to know
about Lyft, Uber, Car2Go and HourCar
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07/18114
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transportation options than ever.
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UberX and Lyft clear key Minneapolis City Council committee
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ABOUT llIE AUTHOR:
Karen Boros
Karen Boros reports on Minneapolis City Hall.
MinnPost 1900 6th Avenue SE 1Minneapolis. MN 554141612.455.6950
httn5:://www.minnnosLcom/Dolitics-Do .
/
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MONTGOMERY COUNTY COUNOL
ROCKVILLE, MARYLAND
ROGER BERLINER
COUNCILMEMBER
DISTRICT 1
CHAIRMAN
TRANSPORTATION,INFRASTRUCTURE
ENERGY
&
ENVIRONMENT COMMITTEE
February 19,2015
AI Roshdieh, Acting Director
Montgomery County Department of Transportation
101 Monroe Street
Rockville, MD 20850
Dear Acting Director Roshdieh:
I write to you today concerning two important issues before the T&E Committee as it reviews
regulations concerning taxicabs and transportation networking companies: working conditions for
taxicab drivers and service for residents with disabilities. These issues will be taken up by our
committee on February 27.
On numerous occasions over the course of the last several months, I have had the opportunity to
meet with a number of taxicab drivers who have described their contractual relationships with certain
taxicab fleets operating in the County. I have been deeply affected and disturbed by what I have
learned.
I confess that I simply do not know how to reconcile the heavy regulatory presence our county
has assumed in the minute details of the operation of our taxi fleet and our totally hands off approach
to issues that are fundamental to drivers. While we have aggressively regulated the color of taxis, the
county has turned a totally blind eye to the relationship between the fleets to whom we granted
monopoly access and the drivers who work for them. Based on what I have heard and their public
testimony, I have reluctantly concluded that our drivers, many of whom are African immigrants, are
among the most disempowered workers in our county.
Attached to this letter is a position statement prepared by an attorney representing drivers as
part of mediation efforts between drivers and fleets. The position statement sets forth five issues
regarding which the drivers are seeking relief:
(1)
lease rates for taxicabs; (2) credit card processing
fees; (3) lease terms and conditions; (4) dispute resolution; and (5) regular County review of Chapter
53 of the County Code. I believe that there is considerable merit to these positions and I would like to
know DOT's views on these issues, as well as information on how DOT might administer changes in
the law enacted to implement them.
In particular, please provide the Committee with a written response to the following specific
issues prior to the Committee work session on the 27
th :
STEllA B. WERNER OFFICE BUILDING'
100
MARYLAND AVENUE,
6
TH
FLOOR, ROCKVILLE, MARYLAND
240-777-7828
OR
240-777-7900, TTY 240-777-7914,
FAX
240-777-7989
WWVV.MONTGOMERYCOUNTYMD.GOV
20850
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• I am interested in knowing how DOT might go about determining an appropriate cap on
vehicle leases, protections provided by New York City and Seattle. It is my view that
DOT is in a better position to make that determination than the Council, and my current
inclination is to legislatively direct DOT to do so;
• With respect to credit card charges, I would like to know whether DOT believes that
drivers should be forced to use a company provided terminal, or one of their own
choosing as long as it meets certain generally acceptable standards (as is the case in San
Francisco). In addition, I would like to know whether DOT believes that there should be
a cap on credit card charges (as is the case in Alexandria). The record indicates that
some taxi companies in Montgomery County (Barwood) charge drivers as much as
7.9%;
• With respect to lease terms, some taxi companies require drivers who bought and paid
for a PVL to contract with it for 5 years (Barwood). Needless to say, such arrangements
have led to charges that such a requirement is tantamount to "contracts of adhesion."
Does DOT believe that drivers who bought and paid for a PVL should have the right to
move from one company to another in order to ensure that taxi cab companies compete
not just for customers, but for the loyalty of drivers as well? More broadly, I would like
to know DOT's views on whether there should be clear and uniform contract
requirements.
• Drivers also seek a means of resolving disputes with fleets. Today, drivers feel that they
have no recourse. Please advise the Committee of whether the Department would
support a mechanism that will provide a meaningful and fair process for resolving
differences between drivers and fleets, and if so, what form you would propose.
• In addition to these issues raised in the mediation proceedings, drivers have come to me
with their interest in acquiring more PVLs. Meanwhile, the companies have called for
liberalizing the PVL transfer market. I would ask DOT to explain how the PVL market
could change to give drivers more opportunities to own their own license and to add
greater liquidity and transferability. Specifically, assuming our Council were to adopt
provisions similar to what Councilmember Reimer has proposed regarding a universal
dispatch system, does DOT believe that more can be and should be done to put more
PVLs in the hands of drivers directly? As was discussed at the last work session, current
rules contemplate that PVLs held by fleets that are idle would be returned to the County.
Why would
it
not make sense to reallocate those PVLs to drivers? Further, how should
the rules governing transfers be changed? Is the sub-licensing proposal by the companies
in the best interest of drivers and the public?
Service for the Disability Community
Through our review of taxi-related issues, I have come to appreciate many of the difficulties
that residents of our county who do have disabilities face when they seek to use taxicab or TNC
service. I believe that an important objective of our review of these bills must
be
to ensure that
disabled residents have access to better transportations options.
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To that end, I propose that any new regulations of TNCs include requirements that they
contribute to the provision of service for the disabled community. Having heard stories of TNC (and
taxicab) drivers mistreating guide dogs, for example, I believe that language in the legislation should
be strengthened to guarantee that TNCs are not discriminating against disabled residents and are
adequately trained to respond to their needs. Since traditional UberX or Lyft vehicles are usually not
able to accommodate wheelchair-bound individuals, I believe that more formal requirements are
needed to properly guarantee those individuals access to reliable transportation.
I am asking for your position on potential strategies for guaranteeing better transportation
options for disabled residents, based on models employed in other communities. From council staff's
review of this issue, there are two approaches that have been taken:
1.
Surcharge on
TNe
Rides
This surcharge would apply to all TNC rides in the county, and would be provided to the
Department on a regular basis to support taxicab drivers providing service in wheelchair­
accessible cabs. Seattle has such a surcharge in place, set at 20 cents.
2.
"UberWAV" Service
In
different communities, Uber has taken two approaches to linking disabled consumers with
wheelchair-accessible vehicles directly.
In
Philadelphia, Uber is piloting a version of UberWA V .
that links app users directly with Public Utilities Commission-licensed accessible vehicles. Given
that our jurisdiction covers only the UberX and Lyft services, such an approach may not be the
most appropriate here. However, in New York City, users on the Uber app in the outer boroughs
can request outer borough "green cabs" that are accessible. Lyft has informed me that they are
currently unable to provide such a service.
I believe that a potential approach would be to impose an initial 10 cent surcharge on UberX or
Lyft rides originating in Montgomery County, an amount that could be increased by Executive
Regulation, and to require providers to make wheelchair-accessible vehicles available on their app,
either by agreement with our traditional taxicabs or through their own partner vehicles, within two
years.
This issue also brings to the fore the concerns that disabled residents have brought to my
attention: that despite our efforts to have a reasonably-sized wheelchair-accessible fleet, rides are still
difficult to arrange and hard to come by. Indeed,
it
is my understanding that while there is a
requirement that as much as 8 percent of our fleets be wheelchair-accessible, there is no requirement
that these vehicles actually
be
on the road at anyone time. Given DOT's own testimony regarding the
number of vehicles that are currently sitting, I would appreciate your insight into how we can guarantee
that more wheelchair-accessible cabs are actually on the road at all times and better service for this
important part of our community.
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I appreciate your attention to all of these issues and I look forward to a timely and thorough
response in advance of our work session.
Sincerely,
Roger Berliner
Councilmember, District 1
Chair, Transportation, Infrastructure, Energy, and
Environment Committee
CC:
Howard Benn, Chief, Customer
&
Operations Support, DOT
James Ryan, Taxi Unit Manager, DOT
Jay Kenney, Chief, Aging and Disability Services, HHS
Shawn Brennan, Mobility and Transportation Program Manager, HHS
Betsy Luecking, Manager, Commission on People with Disabilities, HHS
Trish Gallalee, Chair, Commission on People with Disabilities
Josh Hamlin, Legislative Attorney, County Council
Councilmembers
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MONTGOMERY COUNTY COUNCIL
Rockville. Maryland
Hans Riemer
Councilmember (At Large)
Lead Member for Digital Government
Chair,
Ad Hoc
Committee on Liquor Control
TO:
FROM:
DATE:
RE:
Transportation, Infrastructure, Energy, and Environment (T&E) Committee
Council member Hans Riemer
February 23,2015
Proposed Amendments to Bill 55-14 - Digital Dispatch for Taxis
First, I want to express my appreciation to T&E Committee Chair Roger Berliner for initiating this round
of Council review of personal for-hire transportation policy. In Chair Berliner's recent letter to
Department of Transportation (DOT) Acting Director Roshdieh, he observed thattaxi drivers "are among
the most disempowered workers in our county." After meeting with many drivers, I completely agree.
There is a problematic imbalance of power between taxi companies and drivers in Montgomery County.
Until the arrival of Uber and other Transportation Network Companies (TNCs), companies were largely
insulated from competition - on both the labor market for drivers and the market for passengers - and
risk by the oligopoly regime of PVls
we
created. Drivers, who are not allowed to operate independently
of a company, had no choice but to take or leave the lease terms provided to them.
Over time, the companies have converted all of the drivers to independent contractors, which deprives
drivers of the right to collectively bargain under federal law. Although federal law is black and white ­
employees have collective bargaining rights and protections like the minimum wage and independent
contractors do not - the reality is that there is a broad spectrum of employment arrangements and every
industry is different. Taxi companies provide drivers their cars, maintenance, and all other equipment.
The drivers pay per day lease rates of up to $120 per day, plus gas, plus an 8% fee on all credit card
charges, plus numerous other charges which sometimes require them to work 12 hours per day or more
just to break even. They are dependent on the companies and, in my view, much closer to employees
than other independent contractors.
It was not until the taxi companies came to the Council to request that we insulate them from a new
class of competitors that I learned just how much of the cost and risk of the taxi business is borne by the
drivers, with little ofthe upside potential that would normally accompany being an independent
business person. Now that drivers do have other options, it is no wonder that many are fleeing. I am
eager to hear what DOT, taxi companies, and other stakeholders propose to help remedy this situation.
While I support Bills 53-14 and 54-14, introduced by Chair Berliner and Councilmember Floreen to
legalize and regulate Uber and other TNCs and deregulate aspects of the taxi industry, I believe that a
1
100 Maryland Avenue
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Rockville, Maryland 20850
240-777-7964 I
MontgomeryCountyMD.gov/Riemer
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more transformative approach is needed if the taxi industry is to survive. That's why I introduced Bill 55­
14, to create a uniform digital dispatch for the taxi industry. A uniform digital dispatch has the potential
to create a taxi system with the best aspects of taxis - professional, regulated cars and drivers, street
hail, cab stands, more predictable rates - and the best aspects ofTNCs - the use of GPS to show all
available cars and provide predictable wait and drive time estimates, a robust rating system for
accountability, and easy payment.
Since introducing this bill, which quickly gained support from both driversand companies, my office has
worked extensively with the coalition of drivers represented by the AFL-CIO and Council legal staff to
develop a package of amendments that make the Digital Dispatch the backbone of a reformed taxi
industry in which lessee drivers have basic protections from the most abusive practices and a real voice
in their working conditions. In the long term, this proposal gives drivers the choice to assume both the
risk and the potential reward of operating a taxi independently or in co-op associations using the
uniform digital dispatch.
Please consider these proposed amendments to Bill 55-14, which are attached to this letter:
Creating a Sustainable Taxi Market with Independent Drivers and Co-Ops
Bill 55-14 would require DOT to implement a centralized digital dispatch system which all taxi
drivers would be required to participate in. Drivers could still use other means of dispatch
(telephone, street hail, other apps) but they would be required to run the centralized dispatch
as well and to accept fares on the dispatch ifthey are on duty and free. This effort is designed to
provide customers with the quality experience they crave, including easy credit card payments,
a rating system for drivers, and reliable GPS based dispatching and wait estimates, while
providing drivers with the infrastructure they need to operate independently or as part of an
association.
Proposed amendments:
o Remove the requirement in current law that taxi fleets and associations operate a
dispatch
o Remove the requirement that drivers be part of a fleet or association
o Issue a batch of new PVLs directly to drivers, made available by seniority, to allow
drivers to take advantage of these opportunities
o Use fees collected from the issuance of new PVls and from licensing TNCs to create a
fund DOT can use to provide relief to existing PVL owners that can show a significant
devaluation of their PVLs from the price the County allowed them to pay
o Make PVLs non-transferable. PVLS are a license issued by the Council and should not be
treated as property to be bought or sold
o Add a preference for a digital dispatch vendor that uses or creates open standards
o Add preference for a digital dispatch vendor that can include the most regional
jurisdictions on the same system. DC is in the process of establishing their own Dispatch
system, and other area jurisdictions are looking at doing the same. This preference can
be satisfied by the use of open standards
Giving Drivers a Voice
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Rockville, Maryland 20850
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MontgomeryCountyMD.gov/Riemer
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Create a Taxi Commission composed of two representatives of fleets and two representatives of
drivers - appointed by Executive and confirmed by Council. DOT Director or designee serves ex­
officio (non-voting)
o Every two years (and within 6 months of formation), the Commission creates a set of
uniform lease and affiliation agreements that include the types and maximum amounts
of charges that fleets may charge drivers. There can be a variety of agreements covering
different periods (daily, weekly, yearly), different types of cars (hybrids, older vehicles,
vans), and any other factors the Commission agrees upon. These uniform agreements
will be submitted as a report to the Department of Transportation, which will then
consider and adopt them - with changes as they see fit - as a Method 2 regulation
o Fleets are forbidden from using lease, affiliation or sub-licensing agreements other than
the uniform agreements and from imposing any charges or conditions that are not
included in the agreement
o The Uniform Agreements must also include dispute resolution procedures
o If the Commission cannot come to agreement, each member will present their
proposals, arguments, and supporting documentation to an arbitrator following the
rules of the American Arbitration Association. After hearing arguments, the Arbitrator
will submit an opinion and recommended uniform agreements to DOT to implement by
Method 2 Regulation
o The Commission should give advice on the Centralized Dispatch, on fares, and any other
matters related to the taxi industry but DOT will retain authority to set fares, control the
Dispatch, and otherwise regulate the industry
Provide taxi drivers an option to make a voluntary financial contribution to a third party
advocacy or trade organization they designate through the Digital Dispatch system
Provide basic protections for drivers:
o Prohibit fleets from taking adverse action against drivers without just cause
o Prohibit lease or affiliation agreements longer than one year and prohibit agreements
from automatically rolling over
o Prohibit exorbitant fees for credit card processing
o Require that either party has the option to bring disputes to binding arbitration
o Require that contracts at least allow lessee drivers to make minimum wage
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BILL No. 55-14
1
53-101. Definitions.
2
3
4
5
*
53-111.
*
*
Centralized electronic dispatch system.
The Director must establish g 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.
W
6
7
8
9
10
(Ii).
The Director may enter into g contract with g licensee or other private
nm1Y
through the County procurement process to manage and operate
the system.
In selecting a contractor. the Director must give
preferences to vendors who:
(1)
(2)
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12
13
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.
14
15
16
W
@
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.
17
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19
20
ill
The system must maintain verifiable records, in g form prescribed by
the Director, summarizing responses to requests for service made
under the system. The system must provide all required records to the
Director upon request.
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22
23
24
ill
(g)
Nothing in this Section prohibits g licensee from being affiliated with
or dispatched
Qy
any other two-way dispatch system.
Upon written authorization of a driver. the Director, through the
system. must deduct an amount designated by the driver from the
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BILL No. 55-14
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29
driver's fare reimbursement and forward that amount
to
a third party
trade or advocacy organization designated by the driver.
53-112. Commission on Fleet - Driver Relations.
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31
Ca)
The Executive must appoint. subject to confionation by the Council. a
Commission on Fleet - Driver Relations to regularly review the
County's laws that regulate taxicab drivers. licensees. and fleets.
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33
34
(b)
The Commission must consist of four members. The Executive must
appoint members so that:
(1)
(2)
two members are representatives of fleets: and
two members are representatives of drivers.
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36
37
38
(c)
The Director or the Director's representative who must serve as an ex
officio. non-voting member of the Commission.
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40
41
Cd)
A Commission member serves for a term of 3 years. or until a
successor is confirmed. whichever is later. A member must not serve
more than 2 consecutive full teons.
A person appointed to fill a
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43
44
vacancy serves for the remainder of the predecessor's term.
Ce)
Within six months of initial appointment. and then every two years.
the Commission must submit to the Executive and the Council a
report that includes:
(1)
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46
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48
unifoon lease and affiliation agreements which must conform
to the minimum requirements of Section 53-219:
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(2)
maximum lease and affiliation rates that a fleet may charge a
driver:
(3)
a list of
Wes
and amounts of other charges that a fleet may
charge a driver; and
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BILL No. 55-14
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54
(4)
recommendations concerning the centralized dispatch. licenses.
taxicab meter fares. and other matters related to the taxicab
industry.
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(0
If a majority of Commission members cannot agree on an item to be
included in the Commission report under subsection (e). the matter
must be resolved by arbitration following the rules of the American
Arbitration Association.
The decision of the arbitrator must be
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61
incorporated into the report of the Commission.
(g)
Within 90 days after receiving the Commission's report. the Executive
must adopt. by method (2) regulation:
(1)
(2)
uniform lease and affiliation agreements:
maximum lease and affiliation rates that a fleet may charge a
driver or affiliate: and
(3)
a list of types and amounts of other charges that a fleet may
charge a driver or affiliate.
53-113. Licensee reimbursement fund.
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65
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The Director must create a fund to provide relief to existing licensees that
can show a significant decline in value of their licenses from the price that they
paid. either to the County or to a private party transferor. for the license. The
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Director may deposit fees from the issuance of new licenses into the fund. and
must administer the fund according to regulations adopted under Section 53-104.
ARTICLE 2. TAXICAB LICENSES.
Division 1. General License Provisions.
53-201. Required.
(
a)
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A person must not provide taxicab servIce without possessmg a
license as required under this Chapter.
(b)
A license must be issued only to the owner of each taxicab.
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BILL No. 55-14
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(
c)
A licensee must not operate a taxicab or provide taxicab service
unless the licensee either:
(1 )
(2)
holds a fleet license; or
holds one or more individual licenses [[and is affiliated with an
association or a fleet]].
(d)
A licensee must hold a license for each taxicab.
*
*
*
53-204. Transferability[[; security interest]].
[[(a) Any license must not be transferred except as provided m this
Chapter.
(b)
A license may be transferred only if:
(1)
the licensee notifies the Department in writing of the proposed
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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 fmds that the proposed transferee meets all
requirements of this Chapter and applicable regulations; and
(3)
the transfer.
(
c)
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the licensee surrenders the license when the Director approves
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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 3 years.
(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 2 licenses to
individuals during that calendar year; or
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BILL No. 55-14
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(2)
the transfer would result in individuals holding more than 30%
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of the total number of licenses then in effect.
Until December 31, 2009, the Director, after reCeIvmg a written
request from a licensee, may waive either limit in this subsection on transferring a
license 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 if the
III
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transferee already holds, or would then hold, more than 40% ofthe total number of
licenses then in effect. This subsection does not prohibit the sale or transfer of a
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licensee that held more than 40% of the 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.
creation of a security interest only if:
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The Director may approve the
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BILL No. 55-14
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(1)
the licensee and, if different, the proposed holder of the security
interest has notified the Director at least 30 days before the security interest would
be created of the identities of all parties to and all terms and conditions of the
security interest; and
(2)
agreement that:
(A)
the security interest is subordinate, in all respects, to the
the secured party acknowledges
ill
the security interest
authority of the Director to suspend, revoke, or refuse to renew the license under
this Chapter; and
(B)
any transfer of the license pursuant to a foreclosure or
execution on the security interest is not effective unless the Director finds that the
proposed transferee satisfies all requirements of this Chapter and applicable
regulations.
The Director must send to the secured party, at its last address on file
with the Department, a copy of any written notice to the licensee regarding the
suspension, revocation, or refusal to renew the license. That notice is the only
notice the Director is required to provide to a secured party of any action taken or
proposed to be taken with respect to a license.
(g)
A transferred license is valid for the remainder of the term of the
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original license.]]
A license issued under this Chapter may not be transferred.
53-205. Periodic issuance of new licenses.
*
(c)
*
*
Individual allocation. During calendar year
2016.
the Director must
issue
200
new licenses to individuals who meet the reQuirements of
this subsection. After
2016.
[[Of]]
.clthe new or reissued licenses
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BILL No. 55-14
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issued in any 2-year period, [[20%]] 50% must be allocated to
individuals who:
(I)
have held a Taxicab Driver Identification Card, and have
regularly driven a taxicab in the County, during the preceding 3
years;
(2)
(3)
have a superior driving record, as defmed 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 of years 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)
Biennial limit. During calendar year [[2006]] 2016 the Director must
not issue more than [[70]] the 200 new licenses issued under
subsection (c).
In
each later even-numbered year, the Director may
issue a total number of new licenses that does not exceed 10% of the
number of licenses then in effect.
(e)
Additional licenses - extraordinary authority[[; population limit]].
The Director may issue more licenses than are authorized under
subsection (d) if the Director fmds, 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 I 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.]]
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BILL No. 55-14
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(f)
Individual limit. Notwithstanding any other provision of this Section,
the Director must not issue more than 10 new or reissued licenses in
any 2-year period to any licensee that holds or controls more than
40% of the licenses then in effect.
*
*
*
53-209.
Individual license
application.
In addition to the information required in Section 53-207, each applicant for
a license to be issued under Section 53-205(c) or otherwise to an individual must:
(a)
specify [[which fleet or association]] whether the applicant will
affiliate with a fleet or association before putting the taxicab into service;
*
53-211. 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;
*
*
(
e)
*
*
*
53-219. Responsibility of licensees, affiliates, and drivers.
*
Any contract or other operating agreement between a licensee and any
driver or affiliate must use the applicable uniform agreement adopted
by regulation under Section 53-112 and must:
(1)
(2)
not exceed a term of one year; and
not be subject to automatic renewal.
lU
Any contract or other operating agreement between a licensee and any
driver must:
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BILL No. 55-14
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(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 or customer service
standard;
(2)
empower the licensee to take appropriate action, as required in
subsection (b);
[[and]]
(3)
not restrict a driver, affiliate, or taxicab owner from providing
taxicab service in the County after the contract or agreement
expires or is terminated[[.]]; and
(4)
provide that the licensee must ensure that the driver earns from
fares and tips. after deducting expenses, an amount at least
equal to the County minimum wage as set in Chapter 27.
[(f)]w(1)
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,
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third-party [[mediation or alternative dispute resolution process,
which may be administered by the Department or the
Department's designee]] binding arbitration process following
the labor arbitration rules of the American Arbitration
Association. The costs of the arbitration must be borne equally
by the parties.
(2)
A dispute is subject to the process required by this subsection if
the dispute is connected with the operation of the contract or
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BILL No. 55-14
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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.
The implementing
regulations may specify that certain classes of disputes are not
subject to this process.
(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 of any party.
(4)
This subsection does not preclude either party from taking any
other lawful action to enforce any contract or agreement.
(h)
A licensee must not impose on a driver or affiliate;
(1)
a charge of more than 5% of the transaction for processing a
credit card payment: or
(2)
any
other charge of a type or amount other than those on the list
adopted by regulation under Section 53-112.
(i)
A licensee must not take adverse action against a driver or affiliate
without just cause.
53-220. Essential Requirements.
Each fleet and association must:
(a)
establish a management office in the County, or at another location
approved by the Director;
(b)
provide a communication system approved by the Director that[[:
(1)
gives the driver and fleet or association two-way dispatch
communication; and
(2)]] allows public access to request service, register complaints, and
seek information. The communications system must allow a
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BILL No. 55-14
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Approved:
member of the public to speak to a staff member 24 hours a
day, 7 days a week.
*
53-221. Operating requirements.
*
*
Each fleet and association must:
(a)
provide its own centralized administrative, vehicle maintenance,
customer service, complaint resolution, [[dispatch,]] management,
marketing, operational, and driver training services located in the
County, or at one or more other locations approved by the Director,
that are physically separate from any other association or fleet. A
fleet or association may obtain these services, with the approval of the
Director:
*
*
*
280
Craig
L.
Rice, President, County Council
Date
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Approved:
Isiah Leggett, County Executive
Date
283
This is a correct copy ofCouncil action.
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Linda M. Lauer, Clerk of the Council
Date
- 11 ­
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American Federation of Labor and Congress of Industrial Organizations
EXECUTIVE COUNCIL
815 Sixteenth Street, N.W.
Washington, D.C.
20006
(202) 637-5000
www.aflcio.org
RICHARD L. TRUMKA
ELIZABETH H. SHULER
TEFERE GEBRE
PRESIDENT
Michael Sacco
Harold Schaitberger
Leo W. Gerard
Nancy Wohlforth
Randi Weingarten
Patrick D. Rnley
Ken Howard
James Andrews
Walter W. Wise
Joseph J. Nigro
Laura Reyes
Kenneth Rigmaiden
Bhairavi Desai
Harry Lombardo
SECRETARY·TREASURER
Michael Goodwin
Edwin D. Hill
William Hite
Rose Ann DeMoro
Rogalio "Roy"
A.
Acres
Newton B. Jones
James Boland
Maria Elena Durazo
Lawrence J. Hanley
James Callahan
J. David Cox
Stuart Appelbaum
James Grogan
Dennis D. Williams
EXECUTIVE VICE PRESIDENT
R.
Thomas Buffenbarger
Cecil Roberts
Gregory J. Junemann
Matthew Loeb
Diann Woodard
Baldemar Velasquez
Lee
A. Saunders
Veda Shook
Capt. Lee Moak
Sean McGarvey
D. Taylor
Harold Daggett
Mark Dimondstein
Robert
A.
Scardelletti
Clyde Rivers
Larry Cohen
Fred Redmond
Fredric V. Rolando
D. Michael Langford
Bruce
R.
Smith
Terry
O'Sullivan
Lorretta Johnson
DeMaurice Smith
David Durkee
Joseph T. Hansen
Paul Rinaldi
Cindy Estrada
To: Transportation, Infrastructure, Energy, and Environment (T&E) Committee
FROM: Peter Ibik, President, Montgomery County Professional Drivers Union NTWA AFL-CIO, Bhairavi
Desia, President, National Taxi Workers Alliance AFL-CIO, Joslyn N. Williams, President, Metro
Washington Council AFL-CIO, Tefere Gebre
l
Executive Vice President, AFL-CIO
DATE: February
24/ 2015
RE: 54-14 Taxi Driver Bill of Rights
We are writing to give our full support to Councilman Riemers Taxi Driver Bill of Rights. This bill will go a
long way towards lifting taxi drivers out of poverty.
We appreciate all the work that Councilman Riemer has done listening to taxi drivers over the past
several months and for crafting the Taxi Driver Bill of Rights. He has heard many drivers tell their stories
of excessive lease and other fees, of working between 12-16 hours a daYI 6 days a week, and still not
bringing home enough money to feed their families.
His ground breaking legislation will give drivers a voice in their working conditions and make other
necessary changes to the taxi industry so that taxi drivers can make a living wage for the hard work they
do and customers will be well served through a modern digital dispatch system.
With this innovative bill, the taxi industry, which for the past 35 years has been one of the most
exploitive industries in the county, could now become one of the most progressive. Montgomery
Countys reform will be a model for taxi reform legislation around the country that benefits drivers and
passengers.
We wholeheartedly support Councilman Reimers Driver Bill of Rights. A vote for this bill is a vote for
justice for taxi drivers.
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SCHALLER
COI.ULTII
• CUSTOMER·FOCUSED SOLUTIONS.
Date:
To:
From:
Re:
July 26.2004
Transportation and Environment Committee
Montgomery County Council
Bruce Schaller. Principal
Recommendations on Taxicab Issues
Attached are my recommendations on taxicab issues discussed at the July 22 meeting.
The overall thrust of these recommendations is to create a more competitive taxi
industry that will provide a superior level of customer service. Under the
recommended regulatory system. the County would issue additional PVLs to cab
companies that demonstrate a need for additional PVLs and a service-focused
management plan. The opportunity to grow their businesses is expected to give cab
companies both the incentive and ability to improve service. This incentive applies to
the current companies and also to new companies that will have the opportunity to
enter the market.
I believe that the "carrot" of new PVLs and the "stick" of other companies potentially
attracting market share are the most effective avenues to addressing the documented
taxicab service problems in the County.
The recommendations also include an overall cap on the number of PVLs issued to
prevent flooding of the market; provision for independent PVL holders to establish a
new company formed as an association of PVL holders; annual evaluations of
response time and other service-related data; and transparency in the annual review
process. Data collection is focused on data that is essential to the issue of additional
PVLs. Based on my experience, the data collection and analysis recommended below
will require effort but will not be burdensome to the companies or to County staff.
Per your instructions, I've also included alternative methods of allocation of company
and individually held PVLs.
I look forward to reviewing these recommendations with you on Wednesday.
94 Windsor Place, Brooklyn NY 112150718768-34870 fax 718768-59850 schaller@schallerconsult.com 0 www.schallerconsult.com
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Recommendations - Montgomery County Taxicab Issues
2
Contents
Recommendation 1. Establish annual review process as basis for determining issuance
of additional PVLs ................................................................................. 3
Alternatives for allocation of company held PVLs ............................. 5
Recommendation 2. ReqUire that Department issue annual State of the Taxicab
Industry Report ..................................................................................... 6
Recommendation 3. Issue 15% of new PVLs to drivers based on seniority ........................ 7
Alternatives for distribution of individually held PVLs..................... 8
Recommendation 4. Maintain transferability of PVLs with certain restrictions ............... 9
Recommendation 5. Create Taxicab Company license ....................................................... 10
Recommendation 6. Review need for vehicle license separate from PVL ......................... 10
Recommendation 7. Designate each PVL as individual or company-held ........................ 10
Note: "Department" below refers to DPWT or successor department with responsibility
for taxicab regulation.
SCHALLER CONSULTING
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Recommendations - Montgomery County Taxicab Issues
Recommendation 1. Establish annual review process as basis for determining
issuance of additional PVLs
3
A. Purpose:
• Evaluate company performance
• Assess need for additional PVLs
• Creates incentive for companies to improve service, market to customers.and
build their customer base
B.
Process:
• County regulatory staff conduct annual State of the Taxicab Industry review
and issue report (see Recommendation 2)
• Cab companies may apply for additional PVLs (see specifics below)
• New companies, including associations of independent owners, may apply for
cab company license with specified number of PVLs requested
• County conducts a hearing on the applications
• County makes determination and issues additional PVLs if determination is
made to do so
• Percentage of new PVLs are issued to drivers working for the company, based
on seniority (see Recommendation 3).
C. Overall cap on number of PVLs
• Legislation sets maximum of 80 new PVLs that can be issued in each of the
first two years.
o
Rationale: Set overall cap to allay fears of flooding the market.
• After first two years, Department is to evaluate whether the number of new
PLVs issued should continue to be capped, whether a formula should be used
to determine industry size, or whether no cap is needed.
D. Cab company submissions for PVLs must include:
• Fee that covers cost of process.
• Number of PVLs requested
• Demonstrate need based on:
o
Current taxi utilization rates (paid miles as percent of total miles; shifts
and miles per PVL per year, trips per shift)
" Response times
• Submit management plan showing:
o
How the company will provide prompt, high-quality service, including
addressing the needs of special need populations, grocery runs, senior
centers, etc.
" How drivers will make a competitive income
o
How company will effectively market its services
• New companies must show business plan and financial capability. Also, will
be "plus" factor
if
independent owners have committed to affiliating with the
company.
SCHALLER CONSULTING
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Recommendations - Montgomery County Taxicab
Issues
4
• Companies may propose a specific phase-in schedule for additional PVLs, or
may specify conditional phase-in, e.g .• additional PVLs that track percentage
increases in dispatched trips.
E.
Evaluation criteria for additional PVLs
• Demonstration of need
• Effect on response times and service quality
• Effect on competition in taxi industry and between taxis and other
transportation providers (e.g., sedans)
• Effect on driver income
F. Response time standard for review
• By legislation, establish standard of 20 minutes for immediate service and 5
minutes for advance reservation, county-wide
2417
basis
• Establish evaluation levels of:
o
Excellent:
90%+
o
Adequate: 80-89%
o
Poor:
79% and below
• Department may modify this standard by Method 2 regulation based on
finding that new standard better reflects customer expectations.
o
Finding must be based on customer research
c
Might introduce zones, peak/off-peak, etc.
G. In annual review, companies may also request special fare rates for group riding
and flat airport fares
• Companies may request special fares. e.g.. group rate to airports.
• Department may approve requests through regulation.
SCHALLER CONSULTING
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Recommendations Montgomery County Taxicab Issues
Alternatives for allocation of company-held PVLs
5
(1) Issue additional PVLs based on
showing of need or public convenience and
necessity,
as recommended above with cap on number issued per year.
• Advantages: Company-specific finding that fits size of company to trip
volumes. Also provides the most direct incentive for companies to market
their services, provide good service and grow their customer base.
• Disadvantages: Concern that company-specific finding may result in
oversupply of PVLs industry-wide.
• Example: Colorado
(2)
Public convenience and necessity or RFP process combined with formula.
County sets overall number of PVLs to be issued based on formula or other
method, and then companies apply and show need.
• Advantages: Combines overall finding of need on County-wide basis with
company-specific finding of need.
• Disadvantages: Difficult to determine "right number" of PVLs County-wide,
which as the County's experience shows, is based partly on quality of service
provided by companies. Also, companies are somewhat less assured of
having adequate number of PVLs to satisfy trip requests.
• Examples: Fairfax County, Arlington County, Alexandria (public convenience
standard); San Diego and Minneapolis (RFP process)
(3)
Equal distribution.
County determines number of PVLs to be issued and
apportions them by formula among the companies, either equal number for each
company, or same percentage increase to each company.
• Advantages: Simple, fair distribution.
• Disadvantages: Perpetuates current market shares with one company having
the dominant share of PVLs. Also, companies cannot be assured of having
adequate number of PVLs to satisfy trip requests.
• Example: Las Vegas
(4)
Auction.
County determines number of PVLs to be issued and conducts auction
of PVLs. Alternatively, County makes PVLs available at current market price or
at value determined by other means.
• Advantages: Revenue to County. Prevents windfall gain
if
PVLs can be
transferred for value. Creates opportunity for companies to obtain new PVLs.
• Disadvantages: Creates substantial barrier to companies obtaining additional
PVLs that may prevent smaller companies in particular from growing. Puts
focus of County policy on raising revenue rather than improving quality of