Agenda Item 7
January 19, 2016
Public Hearing
MEMORANDUM
January 15, 2016
TO:
FROM:
SUBJECT:
County Council
/)o
J.
l.
Josh Hamlin, Legislative
Attorney~
Public Hearing:
Expedited Bill 53-15, Taxicabs - Credit Card Transactions
Expedited Bill 53-15, Taxicabs - Credit Card Transactions, sponsored by Lead Sponsors
Councilmembers Elrich, Riemer and Navarro, was introduced on December 8, 2015. A
Transportation, Infrastructure, Energy and Environment Committee worksession is tentatively
scheduled for February 4, 2016 at 9:30 a.m.
Bill 53-15 would:
(1)
limit the amount a licensee may charge a driver or affiliate for processing a
credit card transaction;
(2)
amend the requirements for credit card processing systems in taxicabs; and
(3)
·generally amend County law concerning taxicabs.
Expedited Bill 53-15 would refine existing provisions of the law related to processing
credit card payments for taxicab service. These provisions were added to the law by Expedited
Bill 53-14, which was enacted earlier this year and substantially revised Chapter 53. Specifically,
the Bill will prohibit licensees from charging drivers and affiliates more than the actual cost to the
licensee for processing a credit card transaction, and will make it easier for drivers to use their own
credit card processing systems.
This packet contains:
Expedited Bill 53-15
Legislative Request Report
Circle#
1
3
F:\LA W\BILLS\1553 Taxicabs - Credit Card Transactions\PH Memo.Docx
 PDF to HTML - Convert PDF files to HTML files
Expedited Bill No. =53=--....:.1=-5_ _ _ __
Concerning: Taxicabs - Credit Card
Transactions
Revised: 12103/2015
Draft No. 1
Introduced:
December 8. 2015
Expires:
June 8 2017
Enacted: - - - - - - - - - -
Executive: - - - - - - - - -
Effective: - - - - - - - - - -
Sunset Date: -'-'-No=n e
......_________
Ch. _ _ , Laws of Mont. Co. _ __
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
Lead
Sponsors: Councilmembers Eirich and Riemer
AN EXPEDITED ACT
to:
(1)
(2)
(3)
limit the amount a licensee may charge a driver or affiliate for processing a
credit card transaction;
amend the requirements for credit card processing systems in taxicabs; and
generally amend County law concerning taxicabs.
By amending
Montgomery County Code
Chapter 53, Taxicabs
Sections 53-218 and 53-313
Boldface
Underlining
[Single boldface brackets]
Double underlining
[[Double boldface brackets]]
* * *
Heading or defined term.
Added to existing law by original bill.
Deletedfrom existing law by original bill.
Added by amendment.
Deletedfrom existing law or the bill by amendment.
Existing law unaffected by bill.
The County Council for Montgomery County, Maryland approves the following Act:
 PDF to HTML - Convert PDF files to HTML files
ExPEDITED BILL NO.
53-15
1
Sec
1.
Sections 53-218 and 53-313 are amended as follows:
53-218. Responsibility of licensees, affiliates, and drivers.
2
3
4
*
(f)
(1)
*
*
A licensee must not impose on a driver or affiliate:
a charge of more than [l
%
over bank, merchant services and
equipment provider] the fees paid by the licensee [on] for
processing any credit card transaction; or
(2)
any other charge of a type or amount other than those on the list
adopted by regulation under Section 53-111.
5
6
7
8
9
10
11
12
13
*
*
*
*
*
53-313. Passenger receipts; credit card transactions.
*
(b)
Any system or service used to process credit card transactions must:
( 1)
(2)
be compliant with all applicable tax laws; and
[accept payment through any County user-side subsidy program;
and
(3)]
be approved by the Director.
14
15
16
17
18
19
20
21
22
*
*
*
Sec. 2. Expedited Effective Date.
The Council declares that this legislation
is necessary for the immediate protection of the public interest. This Act takes effect
on the date when it becomes law.
Approved:
23
Nancy Floreen, President, County Council
Date
0
f:\law\bills\1553 taxicabs - credit card transactions\bill 1.docx
 PDF to HTML - Convert PDF files to HTML files
LEGISLATIVE REQUEST REPORT
Expedited Bill 53-15
Taxicabs
-
Credit Card Transactions
DESCRIPTION:
Expedited
Bill
53-15 would refine existing provisions of the law
related to processing credit card payments for taxicab service. These
provisions were added to the law by Expedited Bill 53-14, which was
enacted earlier this year and substantially revised Chapter 53.
Specifically, the
Bill
will prohibit licensees from charging drivers
and affiliates more than the actual cost to the licensee for processing
a credit card transaction, and will make it easier for drivers to use
their own credit card processing systems.
Some
PVL
licensees continue to charge drivers and affiliates
substantial fees for processing credit card transactions.
Ensure that taxicab drivers and affiliates are able to reliably process
credit card transactions at the lowest cost.
MCDOT
To be requested.
To be requested.
To be requested.
To
be
researched.
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
f:\law\bills\1553 taxicabs - credit card transactions\lrr.doc
(jJ
 PDF to HTML - Convert PDF files to HTML files
Agenda Item 7
January 19, 2016
Public Hearing
MEMORANDUM
January 15, 2016
TO:
FROM:
SUBJECT:
County Council
/)o
J.
l.
Josh Hamlin, Legislative
Attorney~
Public Hearing:
Expedited Bill 53-15, Taxicabs - Credit Card Transactions
Expedited Bill 53-15, Taxicabs - Credit Card Transactions, sponsored by Lead Sponsors
Councilmembers Elrich, Riemer and Navarro, was introduced on December 8, 2015. A
Transportation, Infrastructure, Energy and Environment Committee worksession is tentatively
scheduled for February 4, 2016 at 9:30 a.m.
Bill 53-15 would:
(1)
limit the amount a licensee may charge a driver or affiliate for processing a
credit card transaction;
(2)
amend the requirements for credit card processing systems in taxicabs; and
(3)
·generally amend County law concerning taxicabs.
Expedited Bill 53-15 would refine existing provisions of the law related to processing
credit card payments for taxicab service. These provisions were added to the law by Expedited
Bill 53-14, which was enacted earlier this year and substantially revised Chapter 53. Specifically,
the Bill will prohibit licensees from charging drivers and affiliates more than the actual cost to the
licensee for processing a credit card transaction, and will make it easier for drivers to use their own
credit card processing systems.
This packet contains:
Expedited Bill 53-15
Legislative Request Report
Circle#
1
3
F:\LA W\BILLS\1553 Taxicabs - Credit Card Transactions\PH Memo.Docx
 PDF to HTML - Convert PDF files to HTML files
Expedited Bill No. =53=--....:.1=-5_ _ _ __
Concerning: Taxicabs - Credit Card
Transactions
Revised: 12103/2015
Draft No. 1
Introduced:
December 8. 2015
Expires:
June 8 2017
Enacted: - - - - - - - - - -
Executive: - - - - - - - - -
Effective: - - - - - - - - - -
Sunset Date: -'-'-No=n e
......_________
Ch. _ _ , Laws of Mont. Co. _ __
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
Lead
Sponsors: Councilmembers Eirich and Riemer
AN EXPEDITED ACT
to:
(1)
(2)
(3)
limit the amount a licensee may charge a driver or affiliate for processing a
credit card transaction;
amend the requirements for credit card processing systems in taxicabs; and
generally amend County law concerning taxicabs.
By amending
Montgomery County Code
Chapter 53, Taxicabs
Sections 53-218 and 53-313
Boldface
Underlining
[Single boldface brackets]
Double underlining
[[Double boldface brackets]]
* * *
Heading or defined term.
Added to existing law by original bill.
Deletedfrom existing law by original bill.
Added by amendment.
Deletedfrom existing law or the bill by amendment.
Existing law unaffected by bill.
The County Council for Montgomery County, Maryland approves the following Act:
 PDF to HTML - Convert PDF files to HTML files
ExPEDITED BILL NO.
53-15
1
Sec
1.
Sections 53-218 and 53-313 are amended as follows:
53-218. Responsibility of licensees, affiliates, and drivers.
2
3
4
*
(f)
(1)
*
*
A licensee must not impose on a driver or affiliate:
a charge of more than [l
%
over bank, merchant services and
equipment provider] the fees paid by the licensee [on] for
processing any credit card transaction; or
(2)
any other charge of a type or amount other than those on the list
adopted by regulation under Section 53-111.
5
6
7
8
9
10
11
12
13
*
*
*
*
*
53-313. Passenger receipts; credit card transactions.
*
(b)
Any system or service used to process credit card transactions must:
( 1)
(2)
be compliant with all applicable tax laws; and
[accept payment through any County user-side subsidy program;
and
(3)]
be approved by the Director.
14
15
16
17
18
19
20
21
22
*
*
*
Sec. 2. Expedited Effective Date.
The Council declares that this legislation
is necessary for the immediate protection of the public interest. This Act takes effect
on the date when it becomes law.
Approved:
23
Nancy Floreen, President, County Council
Date
0
f:\law\bills\1553 taxicabs - credit card transactions\bill 1.docx
 PDF to HTML - Convert PDF files to HTML files
LEGISLATIVE REQUEST REPORT
Expedited Bill 53-15
Taxicabs
-
Credit Card Transactions
DESCRIPTION:
Expedited
Bill
53-15 would refine existing provisions of the law
related to processing credit card payments for taxicab service. These
provisions were added to the law by Expedited Bill 53-14, which was
enacted earlier this year and substantially revised Chapter 53.
Specifically, the
Bill
will prohibit licensees from charging drivers
and affiliates more than the actual cost to the licensee for processing
a credit card transaction, and will make it easier for drivers to use
their own credit card processing systems.
Some
PVL
licensees continue to charge drivers and affiliates
substantial fees for processing credit card transactions.
Ensure that taxicab drivers and affiliates are able to reliably process
credit card transactions at the lowest cost.
MCDOT
To be requested.
To be requested.
To be requested.
To
be
researched.
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
f:\law\bills\1553 taxicabs - credit card transactions\lrr.doc
(jJ