5256447 Taxicab Commission, DC - Notice of Final Rulemaking- Amending Chapters 16 and 99 - DCTC Taxicab Co-Op
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DISTRICT OF COLUMBIA TAXICAB COMMISSION
NOTICE OF FINAL RULEMAKING
The District of Columbia Taxicab Commission (“Commission”), pursuant to the authority set forth in Sections 8(c)(2), (3), (5), (7), (8), (19), 14, 20, and 20a of the District of Columbia Taxicab Commission Establishment Act of 1985 (“Establishment Act”), effective March 25, 1986 (D.C. Law 6-97; D.C. Official Code §§ 50-307(c)(2) (3), (5), (7), (8), (19), 50-313, 50-319, and 50-320 (2012 Repl. & 2014 Supp.)), and D.C. Official Code § 47-2829 (b), (d), (e), (e-1), and (i) (2012 Repl. & 2014 Supp.), hereby gives notice of its intent to adopt amendments to Chapter 16 (Dispatch Services) and Chapter 99 (Definitions) of Title 31 (Taxicabs and Public Vehicles for Hire) of the District of Columbia Municipal Regulations (DCMR).
This final rulemaking amends the existing regulations for dispatch in Chapter 16, to facilitate the establishment of the District of Columbia Taxicab Industry Co-op (“Co-op”). The Co-op would be an industry-owned association organized under the laws of the District of Columbia to promote the use of DCTC-licensed taxicabs, including wheelchair accessible vehicles, by the residents of and visitors to the District. The Co-op would manage, and provide service and support for the District of Columbia Universal Taxicab App (“DC TaxiApp”), with which all DCTC-licensed taxicabs would be equipped, in addition to any other apps their owners and operators wish to use. Operators would not be required to accept requests for service made through the DC TaxiApp. The Co-op would establish and maintain competitive, market-based rates and charges for trips booked through the DC TaxiApp. All definitions applicable to this chapter would appear in Chapter 99.
The Co-op would support the long-term viability of the metered taxicab industry, to help ensure continued availability of street hail service and wheelchair accessible vehicles, which is in the interest of the District and within the authority of the Commission. The rulemaking would promote the public interest in taxicab transportation by insuring that adequate and high quality taxicab service is provided to all quadrants and neighborhoods of the District; promote and maintain a healthy and viable taxicab industry by leveling the competitive playing field of metered taxicabs with emerging classes of for-hire transportation; provide for the universal availability and utilization of current transportation equipment and technology; and increase and promote the availability for wheelchair accessible taxicab service throughout the District, among numerous other policy and legal interests served by the rulemaking.
The proposed rulemaking was adopted by the Commission on October 8, 2014 and published in the D.C. Register on October 24, 2014 at 61 DCR 11234. The Commission held a public hearing on the proposed rules on November 6, 2014, to receive oral comments on the proposed rules. The Commission received valuable comments from the public at the hearing and throughout the comment period which expired on November 24, 2014. The Commission did not need to make any substantial changes and no substantial changes have been made. The changes to the text from the original proposed rules impose no additional legal obligations on stakeholders, but reorder language for clarity, logical presentation, and readability. Penalties which would have been imposed on charter members if the Co-op is not formed have been removed. Ongoing regulatory obligations which would have been imposed on the Co-op following its formation have been removed, and a portion of these obligations are now reflected as required elements of the Co-op’s bylaws, together with additional actions which the Co-op would be able to undertake if it chooses to do so. Additional non-substantial changes have been made to correct grammar, clarify initial intent, and clarify proposed procedures, including milestone dates for the establishment of the Co-op and implementation of the DC TaxiApp.
This final rulemaking was adopted by the Commission on December 10, 2014, and will take effect upon publication in the D.C. Register.
Chapter 16, DISPATCH SERVICES, of Title 31, TAXICABS AND PUBLIC VEHICLES FOR HIRE, of the DCMR, is amended as follows:
The title of Chapter 16 is amended to read as follows:
Chapter 16, DISPATCH SERVICES AND DISTRICT OF COLUMBIA TAXICAB INDUSTRY CO-OP
Section 1600, APPLICATION AND SCOPE, is amended as follows:
Subsections 1600.1 and 1600.2 are amended to read as follows:
1600.1 This chapter establishes regulations for dispatch services, and for taxicab owners and operators, and facilitates the creation of the District of Columbia Taxicab Industry Co-op (“Co-op”).
1600.2 The provisions of this chapter shall be interpreted to comply with the language and intent of the Establishment Act, as amended.
Section 1601, GENERAL REQUIREMENTS, is amended as follows:
Subsection 1601.1 is amended to read as follows:
1601.2 Nothing in this chapter shall be construed as:
(a) Soliciting or creating a contractual relationship, agency relationship, or employer-employee relationship between the District of Columbia and any other person; or
(b) Delegating to any person a non-delegable legal duty of the Commission of the Office. A rule or standard of the Co-op shall not be construed as a rule or regulation of the Commission.
Section 1603, OPERATING REQUIREMENTS FOR ALL DISPATCH SERVICES, is amended as follows:
Subsection 1603.18 is deleted and reserved.
Section 1605, PROHIBITIONS, is amended as follows:
Subsection 1605.5 is deleted.
A new Subsection 1605.5 is added to read as follows:
1605.5 Once a trip has been accepted by a taxicab operator through the DC TaxiApp, the taxicab operator shall not fail to pick up the passenger or to complete the trip after the passenger has been picked up. A violation of this subsection shall be treated as a refusal to haul pursuant to Chapter 8, and subject to the penalties provided in that chapter. No taxicab operator shall be required to accept a trip through the DC TaxiApp.
Subsections 1605.6 and 1605.8 are deleted and reserved.
Section 1607, PENALTIES, is amended as follows:
A new Subsection 1607.2 is added to read as follows:
1607.2 A taxicab owner or operator that violates this chapter shall be subject to the civil penalty stated in the applicable provision of this chapter.
A new Section 1612, DISTRICT OF COLUMBIA UNIVERSAL TAXICAB APP, is added to read as follows:
1612 DISTRICT OF COLUMBIA UNIVERSAL TAXICAB APP
1612.1 Not later than one hundred eighty (180) days after the effective date of this section (“implementation date”), each DCTC taxicab operator shall provide service only when able to receive requests for service through the District of Columbia Universal Taxicab App (“DC TaxiApp”).
1612.2 Nothing in this section or § 1613 shall be construed to prevent any person from using any digital dispatch service.
1612.3 The rates and charges, if any, for trips booked through the DC TaxiApp, shall be established by the Co-op pursuant to § 1613.
A new Section 1613, DISTRICT OF COLUMBIA TAXICAB CO-OP, is added to read as follows:
1613 District of Columbia Taxicab Industry Co-op
1613.1 The Co-Op shall be an industry-owned cooperative association, chartered to promote the use of all available DCTC-licensed taxicabs, including wheelchair accessible vehicles, by the residents of and visitors to the District.
1613.2 The Co-op shall provide all necessary service and support for the DC TaxiApp in the manner prescribed by this section, § 1612, and any license agreement with the District.
1613.3 The Co-op shall be owned and operated for the mutual benefit of its members, including independent owners, taxicab companies, taxicab associations, and taxicab operators.
1613.4 Each taxicab company required by D.C. Official Code § 50-329.02 to provide dispatch services shall be a charter member of the Co-op, and shall remain a member of the Co-op. Each taxicab company or association with between twenty (20) and ninety nine (99) vehicles, each independent owner, and each taxicab operator may be, but shall not be required to be, a member of the Co-op.
1613.5 Each member of the Co-op shall provide a capital contribution based on the number of vehicles it owns or with which it is associated.
1613.6 Within fourteen (14) days after the effective date of this section, the charter members shall select three (3) individuals to act as incorporators for the purpose of establishing the Co-op.
1613.7 Within thirty (30) days after the effective date of this section, the charter members shall cause the incorporators to file with the Office proposed bylaws and other documents to establish the Co-op in compliance with District regulations and laws applicable to the incorporation of a domestic cooperative association, which shall include terms and conditions in the bylaws for the Co-op to:
(a) Maintain a physical place of business in the District;
(b) Establish and maintain a digital dispatch service to be operated in compliance with this title and other applicable laws, which makes the DC TaxiApp available to all taxicab owners and operators;
(c) Not give preferential treatment to any person or group of persons regulated by this title or other applicable law, including any member of the Co-op or other person, in its operations; in the marketing, availability, or functionality of the DC TaxiApp; or in the rates and charges which the Co-op sets for trips booked through the DC TaxiApp;
(d) Execute any necessary license agreement for the use of the DC TaxiApp, and comply with all terms and conditions thereof;
(e) Establish, maintain, and publicize competitive, market-based rates and charges for trips booked through the DC TaxiApp, including such fees as necessary to support the operations of the Co-op;
(f) Develop, distribute, and require the acceptance of terms of service between the Co-op and vehicle owners and operators, and between the Co-op and passengers, including a distribution agreement with vehicle owners concerning the revenue generated through the use of the DC TaxiApp;
(g) Market the DC TaxiApp to encourage its use by all passengers seeking service from a DCTC-licensed taxicab;
(h) Maintain a fair, reasonable, and non-discriminatory system which allows the passenger to rate the operator based on the quality of service received;
(i) Promote the availability of wheelchair accessible taxicab service, and use incentives to owners and operators;
(j) Carry such commercial insurance as necessary in connection with the use of the DC TaxiApp;
(k) Maintain its business records for five (5) years;
(l) Comply with all applicable provisions of this title for enforcement and compliance to the same extent as if the Co-op were a taxicab company or association, including, where appropriate, filing a public complaint with the Office against any person in connection with a violation of this section or § 1612;
(m) Establish rules and standards for its operations, including rules and standards for the safe and prompt provision of service through the DC TaxiApp;
(n) Apply for any necessary grants made available by the Office, and comply with all terms and conditions thereof;
(o) Engage in any activity authorized by law, not inconsistent with its bylaws, and in the interest of its members, including:
(1) Offering insurance, such as life, health, dental, disability, and vehicle;
(2) Providing retirement and savings plans, and other benefits; and
(3) Offering discounts on goods and services of interest to members;
(p) Conduct its business to ensure that no person is required to act in a manner contrary to an obligation imposed by this title or other applicable law;
(q) Comply with all applicable District and federal laws and regulations, and engage only in fair and lawful competition;
(r) Not make any change in its bylaws which conflicts with the Office’s approval pursuant to § 1613.8, or with any provision of this title or other applicable law; and
(s) Provide that the District shall have standing to enforce the requirements of this section and § 1612 through an appropriate action at law or in equity in the District of Columbia Courts.
1613.8 The Office shall review the documents filed pursuant to § 1613.7 for purposes of ensuring compliance with this section, § 1612, and other provisions of this title and other applicable laws. The Office shall issue a written decision within ten (10) days. If the Office does not approve the filing, it shall state the basis of its decision in detail. The documents shall be modified and re-filed consistent with the Office’s direction within fourteen (14) days. Each charter member shall have standing to appeal the Office’s decision to deny approval to the Chief of the Office, whose decision may be further appealed to the Commission. A decision of the Commission shall be a final agency decision.
1613.9 Within thirty (30) days after the approval required by §§ 1613.8, the charter members shall cause the incorporators to:
(a) Conclude the legal establishment of the Co-op and its digital dispatch service under this title and other applicable laws;
(b) Obtain a physical place of business for the Co-op within the District; and
(c) Schedule a meeting to be held within thirty (30) to sixty (60) days following the issuance of public notice to all prospective members of the Co-op, to:
(1) Elect a board of directors;
(2) Approve the Co-op’s bylaws; and
(3) Engage in such other business as necessary to begin full daily operation of the Co-op and use of the DC TaxiApp by all taxicab owners and operators not later than the implementation date.
1613.10 During the first twenty four (24) months after the effective date of this section, the Office may make one or more grants to the charter members or to the Co-op in an amount not to exceed twenty five thousand dollars ($25,000), to defray the documented expenses to establish or operate the Co-op pursuant to the provisions of this section, § 1612, and other applicable laws, upon such terms and conditions as may be contained in the grant. Each grant shall be made pursuant to all applicable laws, regulations, and guidelines, and any administrative issuance of the Office.
1613.11 The Office shall acquire or develop the DC TaxiApp, which shall remain the intellectual property of the District of Columbia. The DC TaxiApp shall be made available by license to the Co-op for its exclusive use in a manner consistent with this section, § 1612, and all applicable laws.
1613.12 The Office shall not undertake any enforcement action against a person based upon a violation of a Co-op rule or standard.
Chapter 99, DEFINITIONS, of Title 31, TAXICABS AND PUBLIC VEHICLES FOR HIRE, of the DCMR, is amended as follows:
Section 9901, DEFINITIONS, is amended as follows:
Subsection 9901.1, is amended to add the following definitions to read as follows:
“Co-op” – the District of Columbia Taxicab Industry Co-op, as defined in this chapter.
“DC TaxiApp” – the District of Columbia Universal Taxicab App, as defined in this chapter.
“District of Columbia Taxicab Industry Co-op” – an industry-owned cooperative association which provides service and support for the use of the District of Columbia Universal Taxicab App, as defined in this chapter, and for other lawful purposes.
“District of Columbia Universal Taxicab App” – a software application which allows passengers to book available DCTC-licensed taxicabs by digital dispatch.
