AGENDA ITEM #7A
June 23,2015
Introduction
MEMORANDUM
June 19,2015
TO:
FROM:
SUBJECT:
County Council
Josh Hamlin, Legislative Attorn
Introduction:
Bill 33-15, Taxicabs - Transportation Services Improvement Fund
Bill 33-15, Taxicabs Transportation Services Improvement Fund, sponsored by Lead Sponsor
Councilmember Berliner and Co-Sponsors Councilmembers Floreen and Rice, is scheduled to be
introduced on June 23, 2015. A public hearing is tentatively scheduled for July 14 at 1:30 p.m.
Bi1133-15 would:
• create a Transportation Services Improvement Fund;
• impose a per-trip surcharge on certain transportation network services to finance the Fund;
and
• provide for disbursements from the Fund to be used to improve the delivery of accessible
taxicab services
Background
In its 2015 session, the Maryland General Assembly passed a law regulating
"transportation network companies" (TNCs) - ride-hailing services such as Uber and Lyft. The
law, 2015 Laws of Maryland, Chapter 204, effective July 1, 2015, created a new regulatory
framework within which TNCs in the State will operate. In addition to its regulatory function, the
law also authorizes a county or municipality that licensed or regulated taxicab services on or before
January 1, 2015, including Montgomery County, to impose an assessment on TNC trips that
originate within the county or municipality. "Assessment" means a charge imposed by a local
jurisdiction on each transportation network service that includes a passenger trip. The assessment
may be up to 25 cents per trip, other than in an exempt jurisdiction.
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The revenue generated from
the assessments must be used for "transportation purposes."
Generally, an assessment may not be imposed on a transportation network service by both
a county and a municipality. However, in a county that was not authorized to impose an assessment
by virtue oflicensing or regulating taxicab services on or before January 1,2015, and that has not
imposed an assessment by July 1, 2016, both the county and a municipality may impose an
assessment, subject to specified notification requirements.
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Baltimore City is the only exempt jurisdiction under the law.
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Under the law, a transportation network company must:
• collect assessments on behalf of an operator who accepts a request for a ride made through
the transportation network company's digital network;
• collect any assessment, fee, charge, or tax imposed by an exempt jurisdiction on a
transportation network service; and
• submit to the Comptroller no later than 30 days after the end of a calendar quarter, or as
otherwise specified by the Comptroller in regulations:
1. the assessments and other revenues collected by the transportation network
company on behalf of the transportation network operators;
2. the allocation of the assessments and other revenues attributable to each county or
municipality that has imposed an assessment; and
3. under oath, a certification that it has submitted the correct amount of assessments
and revenues.
The Comptroller must then distribute each quarter the amount necessary to administer the
assessments (up to 5% of the revenue from the assessments and other revenues) to an
administrative cost account. After making this distribution, within 45 days of the end of each
quarter, the Comptroller must then distribute the remaining revenue to the county or municipality
that is the source ofthe revenue.
In its discussion of Bill 54-14, which would have regulated TNCs at the County level,
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the
Transportation, Infrastructure, Energy, and Environment (T&E) Committee considered the
problem that TNCs do not generally provide accessible transportation. The T&E Committee
discussed the possibility of imposing a surcharge on TNCs and a fund used to incentivize
accessible taxicab service. When the General Assembly took up the matter of
mc
regulation,
Councilmember Berliner advocated on behalf of the authorization of a local charge that was
ultimately included in the State law.
Bill 33-15 would impose the charge authorized by the State TNC law, and would create a
fund to receive and distribute the revenue generated by the charge. Money from the fund would
be used to offset higher costs of operating accessible taxicabs in the County, with the intended
effect of increasing the availability of accessible transportation in the County. The Bill would
require the Executive to, by regulation, establish the procedure for making disbursements from the
fund.
This packet contains:
Bill 33-15
Legislative Request Report
Circle #
1
4
F:\LAW\BILLS\1533 Transportation Services Improvement Fund\Intro Memo.Docx
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Virtually
all ofthe provisions ofBilI 54-14 would be preempted under the 2015 State
TNe
law.
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Bill No.
33-15
Concerning: Taxicabs - Transportation
Services Improvement Fund
Revised:
06/0912015
Draft No.
L
Introduced:
June 23. 2015
Expires:
December 23. 2016
Enacted: _ _ _ _ _ _ _ _ __
Executive: _ _ _ _ _ _ _ __
Effective: _ _ _ _ _ _ _ _ __
Sunset Date:
...!.N~o:.:.:n~e
_ ___:_---_
Ch. _ _, Laws of Mont. Co. _ __
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
Lead Sponsor: Councilmember Berliner
AN
ACT to:
(I)
(2)
(3)
(4)
create a Transportation Services Improvement Fund;
impose a per-trip surcharge on certain transportation network services to fmance
the Fund;
provide for disbursements from the Fund to be used to improve the delivery of
accessible taxicab services; and
generally amend the law governing the licensing and regulation of taxicabs.
By adding
Montgomery County Code
Chapter 53, Taxicabs
Article 8. Transportation Services Improvement Fund
Section 53-801
Boldface
Underlining
[Single boldface brackets]
Double underlining
[[Double boldface brackets]]
* * *
Heading or defined term.
Added to existing law by original hill.
Deletedfrom existing law by original bill.
Added by amendment.
Deletedfrom existing law or the bill by amendment.
Existing law unaffected by bill.
The County Council for Montgomery County, Maryland approves the following Act:
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BILL No.
33~15
1
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Sec. 1. Section 53-801 is added to Chapter 53 as follows:
Article 8. Transportation Services Improvement Fund
53-801.
Transportation Services Improvement Fund
Definitions.
In this section:
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ill
ill
ill
Fund
means the Transportation Services Improvement Fund
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established in this Section.
Transportation
Network Services
means
"Transportation
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Network Services" as defined in.§. 10-101 ofthe Public Utilities
Article ofthe Maryland Code.
{hl
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Fund established.
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ill
There is
f!
Transportation Services Improvement Fund created
to improve the delivery of accessible transportation services in
the County;
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ill
The Fund consists of:
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®
(ill
(Q
~
all revenue from the surcharge imposed on transportation
network servicess under this Section;
all funds appropriated to it
Qy
the County Council; and
all funds received
Qy
the Fund from any other public or
private entity.
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Per-ride surcharge.
There is
f!
$0.25 surcharge on Transportation
The
Network Services for each trip originating in the County.
surcharge must be collected as provided in .§. 10-406 of the Public
Utilities Article ofthe Maryland Code.
@
Uses gf. the Fund.
Disbursements from the Fund must be used to
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offset the higher operational costs of accessible taxicab services for
owners and operators including, but not limited to:
F~BILLS\1533
Transportation Services Improvement Fund\BilI2.Doc
o
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BILL No. 33-15
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®
vehicle costs associated with purchasing and retrofitting
an accessible vehicle;
extra fuel and maintenance costs associated
with
operating an accessible vehicle; and
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an
.cg
ill
additional time involved in providing accessible taxicab
servIces.
The Executive must
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regulation
Disbursements from the Fund.
establish the procedure for determining when and how to make
distributions from the fund to accessible taxicab owners and operators,
including imposing conditions of reimbursement, imposing
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maxImum amount of reimbursement, and considering timely
distribution of reimbursement to accessible taxicab owners and
operators.
Approved:
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George Leventhal, President, County Council
Date
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Approved:
Isiah Leggett, County Executive
Date
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This is a correct copy ofCouncil action.
Linda M. Lauer, Clerk of the Council
Date
Q
hdW\BILLS\1533 Transportation Services Improvement Fund\BiII2.Doc
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LEGISLATIVE REQUEST REPORT
Bill 33-15
Taxicabs
-
Transportation Services Improvement Fund
DESCRIPTION:
Bill
33·15
would impose the charge authorized by the State
transportation network company (TNC) law, and would create a fund
to receive and distribute the revenue generated by the charge. Money
from the fund would be used to offset higher costs of operating
accessible taxicabs in the County, with the intended effect of
increasing the availability of accessible transportation in the County.
The
Bill
would require the Executive to, by regulation, establish the
procedure for making disbursements from the fund.
PROBLEM:
TNCs, now regulated by State law, generally do not, and are not
required under State law to, provide wheelchair accessible
transportation. While the County has a required percentage of
accessible taxicabs, the entry ofTNCs into the for-hire transportation
market has the effect of diluting the number of accessible vehicles
relative to the total number of for-hire vehicles operating in the
County.
Impose a
25
cent per ride charge on rides provided by TNCs
in
the
County, and use the revenue to fund incentives, in the form of money
to offset higher operating costs, for operators of accessible taxicabs.
Department of Transportation
Department of Finance
To be requested.
To be requested.
To be requested.
To be researched.
Josh Hamlin, Legislative Attorney
To be researched.
GOALS AND
OBJECTIVES:
COORDINATION:
FISCAL IMPACT:
ECONOMIC
IMPACT:
EVALUATION:
EXPERIENCE
ELSEWHERE:
SOURCE OF
INFORMATION:
APPLICATION
WITHIN
MUNICIPALITIES:
PENAL TIES:
Not applicable
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