Agenda Item 11 B
December 2, 2014
Public Hearing
MEMORANDUM
November 26, 2014
TO:
FROM:
County Council
Josh Hamlin, Legislative
r
rebael Faden, Senior
Legislativ~,l,ey
Attomer:?ilJ.l;
SUBJECT:
Public Hearing:
Bill 54-14, Taxicabs - Transportation Network Service ­
Requirements
Bill 54-14, Taxicabs - Transportation Network Service - Requirements, sponsored by
Councilmembers Berliner and Floreen, was introduced on October 28, 2014. A Transportation,
Infrastructure, Energy and Environment Committee worksession is tentatively scheduled for
January 26,2015 at 9:30 a.m., along with Bills 53-14 and 55-14.
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 transportation network application company and transportation network
operator to meet certain accessibility standards.
Background
On October 9, the Transportation, Infrastructure, Energy and Environment (T&E)
Committee held a worksession to discuss issues surrounding the entry in the Montgomery
County market of transportation network companies (TNCs) such as Uber and Lyft.
l
Chapter 53
of the County Code regulates taxicabs and the provision of taxicab service, but TNCs, which
provide a technology platform for drivers to use their private vehicles to transport passengers, are
not currently regulated in the County.
The packet for the October 9 T&E Committee worksession can be accessed at:
http://www.montgomervcountvmd.goy/council'ResourcesIFiJes1
agenda/cmi20
141141
009no
J
41
009 TE2.pdf
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The Regulatory Landscape
County Taxicab Law (Chapter 53)
Taxicabs in the County are regulated under Chapter 53 of the County Code.
2
To be
regulated under Chapter 53, a person must be in the business of providing "taxicab service,"
which means carrying passengers for compensation between points chosen by the passenger for a
time- or distance-based fare, or hailed from the street, parking lot, or taxi stand. MCC §53-101.
"Taxicab" is defmed as a motor vehicle that:
(1)
is designed or configured to carry seven or fewer persons, not including the
operator;
(2) is used to provide for-hire taxicab service in the County; and
(3) either:
(A) appears to be a taxicab or otherwise for-hire;
(B) displays the words "taxi," "cab," or ''taxicab'' anywhere on the vehicle;
(C) is advertised or held out to the public as a taxicab; or
(D) is used to respond to an immediate request for passenger transportation.
All taxicab drivers who operate within the County are required to hold a County-issued
passenger vehicle license (PVL). MCC §§53-20l through 53-204. Individual taxi drivers are
required to hold an "Individual PVL," which authorizes the operation of a single taxicab and
imposes a number of duties on the individual driver.
An
entity that holds five or more PVLs
meets the definition of a "fleet" and must hold a "Fleet PVL" and is subject to additional
operating requirements. In order to obtain a PVL, an individual taxi driver must comply with all
of the requirements contained in Chapter 53, including carrying minimum liability insurance and
maintaining a vehicle less than seven model years old that is in "clean and safe operating
condition." MCC §§ 53-217 through 53-219, §§53-224 through 53-236. To obtain a Fleet PVL,
the fleet entity must not only meet the requirements for Individual PVLs; it must also, among
other things, submit a customer service plan, provide an adequate number of taxicabs to meet
service demands 24 hours a day, 7 days a week, and meet the requirements regarding the
provision of accessible taxicabs. MCC §§ 53-220 through 53-223. PVLs are valid for one year,
may be renewed, and are subject to revocation for failure to meet the regulatory requirements.
MCC §§53-215 through 53-216, §§ 53-701 through 53-704.
In addition to the licensing and operating requirements of taxicabs, a key feature of the
County's regulatory regime is the County's role in rate setting. Under Section 53-106 of the
Code, the Executive is required to set rates by regulation. Rates include an initial charge, a
distance-based charge, and various additional charges for additional passengers, "personal
service," pickup and delivery, and rides during a snow emergency.
Taxicab companies are also subject to annual data reporting requirements. The
requirements are set by regulation, and require a fleet or unaffiliated trade group to report the
following:
• Number of calls received
• Number of cabs in service daily
Executive Regulations have been adopted pursuant to Chapter 53 at COMCOR Chapter 53, Taxicabs­
Regulations.
2
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Total paid miles driven
Total number of trips
Total revenue excluding extras
Total revenue from extra charges
Transportation Network Companies
Shared ride service companies have faced resistance around the globe when entering new
markets.
3
In
the United States, Uber has been stopped from operating in New Orleans, Miami,
and Portland. Other jurisdictions have struggled to establish a regulatory framework covering
the companies and the services they provide. The term ''transportation network companies
(TNCs)" has emerged as a common reference to companies such as Uber and Lyft.
In
the
Washington, DC metro area, the three jurisdictions are at different stages in the process.
Maryland
Maryland's regulation of for-hire driving services is set forth in Title 10 of the Public
Utilities Article of the Maryland Code. Jurisdiction is split between the State's Public Service
Commission (PSC), which regulates limousine and sedan services, and local jurisdictions, which
primarily regulate taxicabs.
4
The practical distinction between the services appears to be that
taxicab services are obtained in the manner prescribed in State and County law definitions of
"taxicab services,"
i.e.,
advertising as a taxicab or as providing taxicab services, carrying
passengers for compensation between points chosen by the passenger for a time- or distance­
based fare, or providing passenger service after being hailed from the street or other location.
The status of TNCs in Maryland is presently unsettled, with the State alternatively
attempting to establish a new regulatory framework and asserting regulatory authority under
existing law. Also, the City of Annapolis is seeking to regulate Uber as a taxicab company
under the City's laws.
HB 1160/SB 919
In the last legislative session, a bill was introduced in the Maryland General Assembly to
create a new type of transportation service, a "transportation network service," which would
have covered TNCs and their drivers. Under the bill, transportation network services would be
regulated under a regulatory framework separate and distinct from the existing law applicable to
for-hire driving services. Generally, the bill would have set up a registration process for
transportation network operators and imposed vehicle safety inspection, driver safety, consumer
protection, and insurance requirements. The bill would have removed TNCs from the regulatory
reach of the PSC, and did not include alternative enforcement provisions. HB 1160 received an
unfavorable report in the Economic Matters Committee and was withdrawn.
August PSC ruling re: Uber Black and Uber SUV
3
http://bits.blogs.nytimes.coml20 14/04/17/uber-faces-rebukes-in-europe/? php=true& type=blogs&
r=O
4
Taxicab services operated in or from a point in Baltimore City, Baltimore County, the City of Cumberland, or the
City of Hagerstown are regulated by the PSC.
3
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The Maryland Public Service Commission (PSC) ruled on August 6, 2014 that Uber, in
the provision of its UberBLACK and UberSUV services,s engages in the public transportation of
persons for-hire and should be regulated as a non-taxicab, passenger-for-hire service. The order
directed Uber to apply for a motor carrier permit for UberBLACK or UberSUV services within
60 days. The order also directed Commission staff to draft new regulations that are applicable to
UberBLACK and UberSUV. The order does not apply to UberX or Lyft, or other mcs, but is
significant in that it signals recognition that the services provided by
mcs
are subject to
regulation by the PSC. However, it draws a distinction between the UberBLACK and UberSUV
services and the UberX and Lyft services which more closely resemble services provided by
taxicab companies. More importantly, it leaves, for the time being, a regulatory vacuum in·
which the mcs remain unregulated.
ope
request to investigate UberX and
Lyft
On August 5, 2014, the Maryland Office of People's Counsel (OPC) requested that the
PSC investigate compliance by UberX and Lyft with the PSC's licensing requirements. The
PSC has not yet conducted the requested investigation, but in light of the PSC's August 6 ruling,
could conceivably fmd that UberX and Lyft are subject to PSC regulation.
District of Columbia
The Council of the District of Columbia recently enacted the "Vehicle-For-Hire
Innovation Amendment Act of 2014,,,7 creating a new regulatory framework for "private
vehicle-for-hire companies and drivers, separate from the District's regulation of taxicabs. The
District bill, which is currently under Mayoral review, includes provisions very similar to Bill
54-14, and imposes registration, vehicle and driver safety, insurance, consumer protection, and
accessibility requirements on
mcs
and their drivers. The bill also deregulates taxicab fares
booked through digital dispatch services.
Virginia
In
its attempts to regulate mcs, Virginia has recently reversed course, and appears to be
headed toward a resolution through parallel regulation similar to that which is being considered
in the District and implemented in several state and local jurisdictions which will be explored
below. Initially the Commonwealth issued a Cease and Desist order to Uber and Lyft, June 5,
2014. However, on August 6, the Governor and Attorney General announced that the parties had
agreed upon temporary regulation while a long-term legislative solution is developed. The
"temporary legal framework" includes the familiar safety, consumer protection, and insurance
requirements which are a feature of all such regulation.
Other Jurisdictions
UberBLACK and UberSUV drivers are already licensed by the State through the PSC. UberX and Lyft drivers are
not.
6
http://webapp.psc.state.md.us/Intranetisitesearch/Whats new/Ordetl/o20No.%2086528%20­
%20Case%20No.%209325%20-%20Ubetl/o20Technologies,%20Inc.%2O-%20Public%20Version.pdf
7
http://lims.dccouncil.uslDownloadl315191B20-0753 -Enrollment.pdf
5
4
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While the jurisdictions in the DC metro area are still trying to figure out how to regulate
TNCs, several jurisdictions have enacted laws or adopted regulations "legalizing" the ridesharing
companies and creating new regulatory regimes applicable to them.
In
March of this year, the
Seattle City Council enacted a law regulating TNCs as "for-hire driver services" which imposed
licensing, insurance, and driver and vehicle safety standards, and included a cap on the number
of for-hire drivers, limiting each TNC to 150 active drivers on the road at any given time.
8
In
July, that law was repealed and replaced with a new law that allows all for-hire companies to
continue operating without a cap placed on the number of drivers on the road.
9
In
June,
Colorado became the first
state
to pass legislation
lO
regulating TNCs. The Colorado law requires
a TNC to be licensed and insured, and imposes driver and vehicle safety standards.
In
July of this year, the Minneapolis, Minnesota City Council passed a law regulating
TNCs. At the same time, "the City Council voted to modernize the City's longstanding taxi
ordinances to make them less restrictive to companies while still maintaining safety for
passengers.,,11 Also in July, Columbus, Ohio enacted its "Peer-to-Peer Transportation Network"
law. The Minneapolis
l2
and Columbus
l3
laws are similar in many respects to the Colorado and
Seattle laws, in that they impose licensing, insurance, driver history, and vehicle inspection
requirements.
Key issues in regulating TNCs
As is evident from the preceding discussion, there are a number of common issues
addressed by legislation regulating TNCs, generally relating to safety, consumer protection, and
accessibility. While the particulars of the laws differ from jurisdiction to jurisdiction, all impose
requirements related to insurance, driver and vehicle safety, licensing, and transparency in rates,
and many also address accessibility concerns.
Bill 54-14
Bill 54-14 addresses the same issues that are addressed by the legislation previously
discussed. Its provisions tackle those issues as follows:
Definitions and Rates
Bill 54-14 would define the terms "transportation network application company (TNAC)"
and "transportation network operator (TNO)" to cover companies such as Uber and Lyft and
their drivers, and would define "digital dispatch" to mean a network-based dispatch system
which may be used by TNACs or current Passenger Vehicle License (PVL) holders.
It
would
amend the current law concerning taxicab rates to provide that fares for rides booked through
http://www.washingtonpost.comlblogs/govbeatlwp/20 14/03/18/seattle-becomes-first-city-to-cap-uber-Iyft­
vehicles/
9
http://www.goveming.comlnewslheadlines/mct-seattle-new-rideshare-rules.html
10
http://legiscan.comlCO/textlSB 125/idll 022212/Colorado-20 14-SB 125-Enrolled.pdf
11
http://www.ci.minneapolis.mn.uslnewsfWCMSIP-128522
12
http://www.minneapolismn.gov/www/ groups/public/@regservices/documents/webcontentlwcms 1p-1290 14.pdf
13
https:/lcolumbus.legistar.com/LegislationDetail.aspx?ID=1833098&GUID=D7 A215D2-06C4-4F5F-BA3F­
OCF2EAAB6E35&Options=&Search=&FullText=
1
8
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digital dispatch, by either a TNAC or a PVL holder, are not subject to the existing rate structure.
It
would also limit "surge pricing," a fare structure that bases a rate on time and distance factors,
increased by a multiplier related to consumer demand, during a declared state of emergency.
Licensing and Registration
Bill 54-14 would require a TNAC to obtain a license to operate in the County, and
comply with several requirements related to safety and consumer protection.
Driver and Vehicle Requirements
Bill 54-14 would require TNOs,
i.
e.,
drivers, to be registered by TNACs.
In
order to be
registered, a TNO wotild be have to apply, and would be subject to a local and national criminal
background check, a national sex offender database background check, and a full driving history
check. A TNO applicant would be subject to disqualification for the same reasons that an
applicant for a PVL or driver identification card is subject to disqualification under current law.
Vehicles used to provide transportation network service would be subject to age limits and initial
and annual safety inspection requirements.
Insurance
Bill 54-14 would require a TNAC or TNO to carry insurance coverage of at least $1
million per occurrence for accidents involving a TNO at all times when the TNO is engaged in a
prearranged ride.
It
would also require insurance coverage for the time period when a TNO is
logged onto a TNAC's digital dispatch showing that the TNO is available to pick up passengers
but is not engaged in a prearranged ride.
Accessibility
Under Bill 54-14, a TNAC 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 TNAC would be required
to submit an accessibility improvement plan to the Director of MCDOT, and would be prohibited
from imposing additional charges on individuals with disabilities. Finally, a 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 cancellation fee or, if any fee was charged, must provide
the passenger with a timely refund.
This packet contains:
Bill 54-14
Legislative Request Report
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Bill No.
54-14
Concerning: Taxicabs - Transportation
Network SelVice - Requirements
Draft No.
L
Revised:
1012412014
Introduced:
October 28. 2014
Expires:
April 28. 2016
Enacted: _ _ _ _ _ _ _ _ __
Executive: _ _ _ _ _ _ _ __
Effective: -:----:-:_ _ _ _ _ _ __
Sunset Date:
...!N.:.::o~n~e
_ _ _ _ __
Ch. _ _. Laws of Mont. Co. _ __
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
By: Councilmembers Berliner and Floreen
AN
ACT to
(1)
(2)
(3)
(4)
(5)
(6)
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;
require transportation network application company and transportation network
operator to meet certain accessibility standards; and
generally amend the laws governing the licensing and regulation of taxicabs.
By amending
Montgomery County Code
Chapter 53, Taxicabs
Sections 53-101and 53-106
By adding
Sections 53-801, 53-802, 53-803, 53-804, 53-805, and 53-806
Boldface
Underlining
[Single boldface brackets]
Double underlining
[[Double boldface brackets]]
* * *
Heading or defined term.
Added to existing law
by
original
bill.
Deletedfrom existing law
by
original
bill.
Added
by
amendment.
Deleted from existing law or the
bill by
amendment.
Existing law unaffected
by bill.
The County Council for Montgomery County, Maryland approves the following Act:
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BILL No. 54-14
1
Sec. 1. Sections 53-101 and 53-106 are amended, and Sections 53-801,
53-802, 53-803, 53-804, 53-805, and 53-806 as follows:
53-101.
Definitions.
2
3
4
5
6
7
In this Chapter, unless the context indicates otherwise:
*
*
*
Digital dispatch
means the hardware and software applications and
networks, including mobile phone applications, which passengers and
operators use to obtain and provide taxicab or transportation network
servIce.
8
9
10
11
*
*
*
Dispatch
means the traditional methods of pre-arranging vehicle-for-hire
service, including through telephone or radio.
12
13
14
15
*
*
*
Surge pricing
means !! fare structure that bases !! rate on time and distance
factors, increased
Qy
!! multiplier related to consumer demand.
16
*
operating in the County that:
*
*
17
Transportation network application company (TNAC)
means !! company
18
19
ill
uses!! digital network or software application to connect !!
passenger to transportation network services provided
Qy
!!
transportation network operator; and
20
21
22
23
24
25
ill
does not accept rides hailed on the street.
Transportation network operator (TNO)
means an individual who operates!!
motor vehicle
- -
that is:
26
27
ill
ill
ill
owned or leased
Qy
the individual;
not licensed as !! taxicab; and
used to provide transportation network service.
o
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BILL No. 54-14
28
Transportation network service
means transporting
~
passenger between
~
29
points chosen
by
the passenger and that is prearranged
by
network application company.
transportation
30
31
*
53-106.
(a)
Rates.
*
*
32
33
34
35
36
37
38
39
40
The County Executive must set taxicab rates for trips other than those
scheduled through
~
digital dispatch service by regulation to promote
the public interest after holding a public hearing and considering the
recommendations of the Committee.
*
(£l
*
~
*
~
Each rate charged for
trip booked scheduled through
digital
dispatch service must comply with either:
41
42
43
44
45
ill
ill
@
applicable rate regulations; or
~
time-and-distance or surge pricing rate set.Qy the service.
If
~
licensee or transportation network application company that uses
digital dispatch charges
~
fare other than the metered taxicab rate,
~
before the customer books
disclose to the customer:
vehicle the licensee or company must
46
47
48
ill
ill
ill
the fare calculation method;
the applicable rate being charged; and
the option for the customer to receive an estimated fare.
~
49
50
51
The licensee or TNAC must review any customer complaint about
or
ru.,.
whichever is less.
fare that exceeds the estimate provided under this subsection
by
20%
52
53
54
ill
During
~
state of emergency declared .Qy the County Executive,
~
licensee or TNAC that provides digital dispatch and engages in surge
pricing must limit the multiplier
by
which its base fare is multiplied to
to
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BILL No. 54-14
55
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60
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the next highest multiple below the
J.
highest multiples set on different
days in the 60 days before the declaration of
~
state of emergency for
the same
~
of service in the County.
[(c)]ill The Director may approve rates other than those set in the
regulations as provided in a contract filed with the Department if the
Director finds that the alternative rates will not result in a significant
reduction of service to the general public. Any alternative rates that
are higher than the rates set by regulation under subsection (a) must
also be set by regulation.
[(
d)](g}
62
63
64
65
66
67
68
A person must not charge for taxicab service except as allowed
under applicable regulations or [subsection (c)] this Section.
*
53-801.
*
*
Article 8. Transportation Network Application Companies.
Transportation network application company license; required.
69
70
ill
A transportation network application company must obtain
issued
Qy
the Director in order to operate in the County.
~
license
71
A TNAC may obtain
~
license
Qy
applying to the Director on
~
form
72
73
provided
Qy
the Department that, at
~
minimum, requires the applicant
to provide:
74
75
76
77
ill
ill
ill
@
proof that the TNAC is licensed to do business in the State;
proof that the TNAC maintains
County;
proof that the TNAC maintains
~
~
registered agent. in the
website that includes the
78
79
information required
Qy
subsection 53-802(c);
~
written description of how the TNAC's digital dispatch
80
system operates; and
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BILL No. 54-14
81
82
83
84
85
86
87
88
89
ill
(£)
proof that the TNAC has secured all insurance policies required
Qy
this Article.
~
Any fee for
license issued under this Section must be set under
Section 53-107.
53-802.
Requirements for transportation network application companies.
Each transportation network application company must:
ill
(Q)
obtain
~
TNAC license required under Section 53-801:
create an application process for
TNO;
~
person to apply to register as
~
~
90
91
92
(£)
maintain and provide to the Department
current registry of each
TNO and vehicle registered with the TNAC;
@
maintain
~
website that contains:
93
94
95
ill
ill
ill
the TNAC's customer service telephone number or electronic
mail address;
the TNAC's zero tolerance policy established under subsections
(h)-(i);
96
97
98
99
the procedure for reporting
~
complaint about
~
TNO who
~
passenger reasonably suspects violated the zero tolerance policy
under subsections
(h)-O);
and
100
101
102
103
104
105
ill
ill
~
telephone number or electronic mail address for the
Department's Division of Transit Services Taxicab Unit.
verify that each motor vehicle used for passenger service has passed:
ill
ill
an annual state-required safety inspection; or
an initial safety inspection within 90 days before entering
service
Qy
~
licensed mechanic in an inspection station
106
authorized
Qy
the State of Maryland, the District of Columbia,
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BILL No. 54-14
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112
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or the Commonwealth of Virginia to perfonn vehicle safety
inspections.
ill
(g)
annually verify the safety inspection status of each vehicle after the
initial verification is conducted;
verify that each background check required
Qy
Section 53-803(b) has
been conducted, and that no TNO is subject to disqualification under
Section 53-803(c);
(h)
ill
establish
~
zero tolerance policy on the use of alcohol or illegal
drugs or being impaired
Qy
the use of alcohol or drugs while
~
transportation network operator is logged into
~
TNAC's digital
dispatch;
ill
immediately suspend
~
rno
~
for the duration of the
written complaint from
~
investigation upon receIvmg
120
121
122
123
124
125
passenger submitted through regular or electronic mail
containing
~
reasonable allegation that the
rno
violated the
zero tolerance policy established under paragraph
ill
and
ill
ill
conduct an investigation when
~
passenger alleges that
~
TNO
violated the zero tolerance policy established
Qy
paragraph
ill
ill
establish!! zero tolerance policy regarding discrimination or
126
127
128
129
130
131
132
discriminatory conduct on the basis of
~
protected characteristic
while
~
TNO is logged into
~
TNAC's digital dispatch system.
ill
Discriminatory conduct under this subsection includes:
CA)
refusing service on the basis of
~
protected characteristic,
including refusing service to an individual with
~
service
animal unless the
rno
has
~
documented serious
medical allergy to animals on file with the TNAC;
~
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BILL No. 54-14
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150
151
an
(Q
using derogatory or harassing language on the basis of
~
protected characteristic;
refusing service based on the pickup or drop-off location
of
~
passenger; and
~
~
.em
ill
rating
passenger on the basis of
protected
characteristic.
Discriminatory conduct under this subsection does not include
refusing to provide service to an individual with disabilities
because of violent, seriously disruptive, or illegal conduct
Qy
the individual. However,
~
TNO must not refuse to provide
~
service to an individual with
disability solely because the
individual's disability results in an appearance or involuntary
behavior that may offend, annoy, or inconvenience the TNO or
another person.
ill
immediately suspend
~
TNO for the duration of the
~
investigation after receiving
~
written complaint from
~
passenger submitted through regular or electronic mail
containing
reasonable allegation that the TNO violated the
zero tolerance policy established
Qy
paragraph
m
and
152
153
154
155
156
157
158
ill
conduct an investigation when
~passenger
submits
~
reasonable
allegation that
~
TNO violated the zero tolerance policy
established
Qy
paragraph
m
and
ill
maintain any records required
Qy
the Department to enforce this
Section.
A TNAC is not required to collect or transmit data or
information about any specific customer or that customer's trip.
However, as required
Qy
the Department or regulation, the TNAC
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BILL No. 54-14
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must transmit aggregate trip data collected
Qy
!! digital dispatch or
taxicab meter system to the Department for all trips.
53-803.
Registration of transportation network operators and vehicles.
To operate as !! transportation network operator, an individual must
submit an application to register with!! TNAC.
W
(hl
Before approving !! TNO registration application submitted under
subsection
W1
each TNAC must have !! third
P!!!1Y
that is accredited
Qy
the National Association of Professional Background Screeners or
!! successor accreditation entity conduct the following examinations:
ill
!! local and national criminal background check;
the national sex offender database background check; and
!! full driving record check.
ru
ill
(£)
A TNAC must reject an application submitted under subsection
and must permanently disqualify any applicant:
ill
173
174
175
176
177
178
179
180
181
182
183
184
185
ill
who, within
~
years before the registration application is
submitted, was convicted of, pled guilty or no contest
~
or was
placed on probation without !! finding of guilt for, or who when
the application is submitted, has !! charge pending for, or who
has, within
J
years before the application was submitted,
completed !! sentence or period of probation based on !! charge
for:
.cAl
ill)
any offense involving violence or !! weapon;
any sex offense;
soliciting for prostitution;
illegal sale or use of alcoholic beverages;
violation of any law governing controlled dangerous
substances;
F0W\BILLS\1454
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BILL No. 54-14
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191
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193
194
195
196
197
198
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200
201
202
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204
ill
(ill
violation of any gaming law;
any offense involving driving under the influence; or
any act of moral turpitude;
.an
ill
ill
who has
£!
pattern of reasonably verifiable complaints of
substandard customer service during the previous 24 months;
whose driving record during the
J
years immediately before the
application was submitted, demonstrates that the applicant is
not
£!
responsible, safe, or careful driver because the applicant
has received more than
.4
points under applicable criteria
defined
Qy
the State Motor Vehicle Administration or the
equivalent in another iurisdiction, or
Qy
other reasonably
verifiable evidence ofunsafe or dangerous driving;
ill
ill
who makes
£!
false statement or gives
£!
false answer on
£!
registration application;
who is unable to safely operate
£!
vehicle, or who may otherwise
endanger the public health, safety, or welfare, or who would be
unable to fulfill the duties of
£!
driver as required
Qy
applicable
regulation;
®
who has substantial delinquent debts to the County, State, or
Federal government; or
205
206
207
208
209
210
211
212
ill
whose record of violations of this Chapter or other laws or
regulations of the County, State, or any other jurisdiction
indicates that to protect public safety an operator should not be
registered.
@
Each motor vehicle used for transportation network service must:
ill
have
~
manufacturer's rated seating capacity of
~
persons or
fewer, including the operator;
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BILL No. 54-14
213
214
215
216
217
218
219
220
221
222
223
224
225
226
227
228
229
ill
have at least
.4.
doors and meet all applicable federal motor
vehicle safety standards for vehicles of its size,
proposed use; and
~
and
ill
ill
be no more than 10 model years old at entry into service and no
more than 12 model years old while in service.
A person registered with
f!
TNAC as
f!
TNO under this Section must
be treated
Qy
the Department as holding the necessary authorization to
operate in the County as may be required
Qy
another jurisdiction or
interstate authority.
53-804.
Insurance requirements for transportation network application
companies and operators.
tiD
Each TNAC or TNO must maintain
f!
primary automobile liability
insurance policy that provides coverage of at least $1 million per
occurrence for accidents involving
f!
TNO at all times when the TNO
is engaged in
f!
prearranged ride.
®
For the time period when
f!
TNO is logged onto
f!
TNAC's digital
dispatch showing that the TNO is available to pick
yp
passengers but
is not engaged in
f!
prearranged ride, each TNO or
f!
TNAC, on the
TNO's behalf, must maintain
f!
primf!ry automobile liability insurance
policy that:
230
231
232
233
234
235
ill
recognizes that the TNO is
f!
transportation network operator,
and covers the TNO's provision of private vehicle-for-hire
service while the operator is logged into the TNAC's digital
dispatch showing that the TNO is available to pick
yp
passengers; and
236
237
-"iQ\
~ILLS\1454
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BILL No. 54-14
238
239
240
241
242
243
244
245
246
247
248
249
250
251
252
253
254
255
256
ill
provides minimum coverage of at least $50,000 per person per
accident, with
!ill
to $100,000 available to all persons per
accident, and $25,000 for property damage per accident; and
ill
does one of the following:
fA}
offers full time coverage similar to the coverage required
under Section 53-225; or
all
offers!! liability insurance policy purchased
Qy
the
TNAC that provides primary coverage for the time
period in which!! TNO is logged into the TNAC's digital
dispatch showing that the TNO is available to pick
!ill
passengers.
(£1
If!! TNAC obtains an insurance policy under this Section, it must
provide proof to the Department that the TNAC has secured the
policy.
@
A TNAC must not allow !! TNO who has obtained his or her own
policy to fulfill the requirements of this Section to accept !! trip
request through the digital dispatch service used
Qy
the TNAC until
the TNAC verifies that the TNO maintains the insurance required
under this Section. If the insurance maintained
Qy
g
TNO to fulfill the
insurance requirements of this Section has lapsed or been cancelled,
the TNAC must provide the coverage required
Qy
this Section,
beginning with the first dollar of
~
claim.
257
258
259
260
261
262
263
Uti
Nothing in this Section requires !! TNO to obtain !! personal
automobile insurance policy that provides coverage for the time
period when the TNO is logged into !! TNAC's digital dispatch
system.
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BILL No. 54-14
264
265
266
267
268
269
270
271
272
ill
If more than one insurance policy held
Qy
~
TNAC provides valid and
collectable coverage for
~
~
loss arising out of an occurrence involving
~
motor vehicle operated
Qy
TNO, the responsibility for the claim
must be divided on an equal basis among all of the applicable policies
unless the claim has been divided in
~
different manner
Qy
written
agreement of all insurers of the applicable policies and each policy
owner.
(g)
In
~
claims coverage investigation, each TNAC must cooperate with
any insurer that insures the TNO's motor vehicle, including providing
relevant dates and times during which an accident occurred that
involved the TNO to determine whether the TNO was logged into
~
273
274
275
276
277
278
279
280
281
282
283
284
285
286
287
288
289
290
(hl
TNAC's.digital dispatch showing that the TNO is available to pick !ill
passengers.
Each TNAC must disclose the insurance coverage requirements of
this Section on its website, and its terms of service must not contradict
or be used to evade any insurance requirement.
ill
fu
(first day of next month 90 days after this Act takes effect), each
TNAC that obtains insurance on
~
TNO's behalf under this Section
must disclose in writing to the TNO, as part of its agreement with the
TNO:
ill
the insurance coverage and limits of liability that the TNAC
provides while the TNO is logged into the TNAC's digital
dispatch showing that the TNO is available to pick !ill
passengers; and
ill
that the TNO's personal automobile insurance policy may not
provide
coverage,
including
collision
physical
damage
coverage, comprehensive physical damage coverage, uninsured
~ILLS\1454
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BILL No. 54-14
291
292
293
294
295
296
297
298
299
300
301
302
303
304
305
306
307
308
309
and underinsured motorist coverage, or medical payments
coverage, because the TNO uses g vehicle in connection with g
TNAC.
ill
An
insurance policy required
by
this Section may be obtained from
any insurance company authorized to do business in the State.
®
Each TNAC or TNO must secure primary insurance coverage that
complies with the requirements of subsection
(hl
by
(first day of next
month 120 days after this Act takes effect). Until that date, each
TNAC must maintain g contingent liability policy meeting at least the
minimum limits of subsection
(hl
that will cover g claim if the TNO's
personal insurance policy denies g claim.
ill
In this Section, "pre-arranged ride" means g period of time that begins
when g TNO accepts g requested ride through digital dispatch,
continues while the TNO transports the passenger in the TNO's
vehicle, and ends when the passenger departs from the vehicle.
53-805.
ill)
Requirements for transportation network operators.
Each transportation network operator must:
ill
ill
accept only rides booked through g TNAC's' digital dispatch,
and must not solicit or accept street-hails;
310
311
possess g valid driver's license issued
by
Maryland, the District
of Columbia, or Virginia;
312
313
ill
ill
(hl
possess proof of personal motor vehicle insurance for any
motor vehicle used as g private vehicle-for-hire; and
be at least 21 years old.
314
315
316
317
A TNO may affiliate with more than one company to use digital
dispatch unless an agreement between the TNAC and the TNO
provides otherwise.
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BILL No. 54-14
318
319
320
321
322
323
324
325
326
327
328
329
330
331
332
333
334
335
336
337
338
339
340
53-806.
Accessibility of digital dispatch for individuals with disabilities.
W
By January
L
2016, each TNAC that provides digital dispatch must:
ill
assure that its websites and mobile applications are accessible
to the blind and visually impaired and the deaf and hard of
hearing; and
ill
submit
~
plan to the Director that describes its actions to
improve service to senior citizens, people with disabilities, or
other underserved populations identified
Qy
the Director.
ru
Any TNAC that provides digital dispatch must not:
ill
impose any additional or special charge on an individual with
~
disability for providing services to accommodate the individual;
ill
require an individual with
~
disability to be accompanied
Qy
an
attendant.
W
If
~
TNO accepts
~
~
ride request through digital dispatch from
~
passenger with
disability who uses mobility equipment, upon
picking'yp 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
!!
trip cancellation fee or, if any fee was
charged, must provide the passenger with
~
timely refund.
Approved:
341
Craig
L.
Rice, President, County Council
Date
-0
F~lLLS\l454
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LEGISLATIVE REQUEST REPORT
Bill 54-14
Taxicabs
-
Transportation Network Service
-
Requirements
DESCRIPTION:
Bill 54-14 would establish a regulatory framework applicable to the
delivery of transportation network service.
It
would: require a
transportation network application company (WAC), such
as
Uber
and Lyft, to obtain a license to operate in the County; require a
WAC and transportation network operator
(WO)
to meet certain
registration requirements; require a vehicle used to provide
transportation network service to meet certain standards; require a
rnAC and rno to be insured; and require a rnAC and rno to
meet certain accessibility standards.
rnACs are not currently regulated in the County. These unregulated
drivers and companies are not currently required to meet regulatory
standards similar to those imposed on "traditional" taxicabs, such
as
insurance, driver training and testing, or vehicle inspection and
maintenance requirements.
Ensure an efficient, competitive market for the delivery of transit
services while maintaining high standards of public safety,
convenience, and comfort.
MCDOT
To be requested.
To be requested.
To be requested.
Several jurisdictions have enacted similar regulatory regimes.
Josh Hamlin, Legislative Attorney
To be researched.
PROBLEM:
GOALS AND
OBJECTIVES:
COORDINATION:
FISCAL IMPACT:
ECONOMIC
IMPACT:
EVALUATION:
EXPERIENCE
ELSEWHERE:
SOURCE OF
INFORMATION:
APPLICATION
WITHIN
MUNICIPALITIES:
PENALTIES:
NI
A
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