4235328 New Chapter 14 establishes substantive rules governing the provision of sedan service in the District of Columbia.
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DISTRICT OF COLUMBIA TAXICAB COMMISSION
NOTICE OF PROPOSED RULEMAKING
The District of Columbia Taxicab Commission (Commission), pursuant to the authority set forth in Sections 8(b)(1)(C), (D), (E), (F), (G), (I), (J), 14 and 20 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(b)(1)(C), (D), (E), (F), (G), (I), (J) and 50-319 (2009 Repl.), and D.C. Official Code § 50-313 (2009 Repl.; 2012 Supp.); D.C. Official Code § 47-2829(b), (d), (e), (e-1), and (i) (2012 Supp.)); Section 12 of the 1919 District of Columbia Taxicab Act, approved July 11, 1919 (41 Stat. 104; D.C. Official Code § 50-371 (2009 Repl.)); and Section 6052 of the District of Columbia Taxicab Commission Fund Amendment Act of 2012, effective September 20, 2012 (D.C. Law 19-168; D.C. Official Code § 50-320(a)) (2012 Supp.), hereby gives notice of its intent to adopt rules to establish a new Chapter 14 (Operation of Sedans) of Title 31 (Taxicabs and Public Vehicles for Hire) of the District of Columbia Municipal Regulations (DCMR). The rulemaking establishes substantive rules governing the provision of sedan service in the District of Columbia. Directions for submitting comments may be found at the end of this Notice.
The Commission also hereby gives notice of the intent to take final rulemaking action to adopt these proposed rules in not less than thirty (30) days after the publication of this notice in the D.C. Register.
The Commission intends to add Chapter 14, OPERATION OF SEDANS, of Title 31, TAXICABS AND PUBLIC VEHICLES FOR HIRE, of the DCMR to read as follows:
CHAPTER 14 OPERATION OF SEDANS
1400 APPLICATION AND SCOPE
1400.1 The purpose of this chapter is to establish substantive rules governing the operation of public vehicle-for-hire operators and vehicles licensed pursuant to Chapter 12 (Sedan and Limousine Operators, Vehicles, and Organizations) of this title to provide sedan service in the District of Columbia, including rules to ensure the safety of passengers and operators, to protect consumers, and to collect a passenger surcharge.
1400.2 The provisions of this chapter shall be interpreted to comply with the language and intent of the District of Columbia Taxicab Commission Establishment Act of 1985, D.C. Official Code §§ 50-301 et seq.
1400.3 In the event of a conflict between a provision of this chapter and a provision of another chapter of this title, the more restrictive provision shall control.
1401 GENERAL PROVISIONS
1401.1 Effective May 1, 2013, each trip by a public vehicle-for-hire operating as a sedan in the District of Columbia shall meet the following requirements:
(a) The operator shall use a sedan payment system (“SPS”) approved by the Office of Taxicabs (“Office”);
(b) The trip shall be booked through the digital dispatch service (“DDS”) that has been approved by the Office to provide the service and support for the SPS;
(c) The trip shall be paid for by a digital payment processed by the SPS;
(d) The rates and charges shall comply with § 1401.5; and
(e) The sedan passenger surcharge shall be collected.
1401.2 Each operator, vehicle, and organization providing sedan service shall at all times be in compliance with the provisions of both this chapter and Chapter 12 (Sedan and Limousine Operators, Vehicles, and Organizations) of this title. The sedan operating requirements set forth in this chapter shall be in addition to the sedan operating requirements set forth in Chapter 12.
1401.3 Each operator shall be in compliance with all applicable provisions of this title, and all other laws applicable to public vehicles-for-hire, including all reciprocal agreements between governmental bodies in the Washington Metropolitan Area governing public vehicle-for-hire service such as those in § 828 of this title.
1401.4 Each DDS providing service and support for an Office-approved SPS shall at all times be in compliance with the provisions of both this chapter and Chapter 16 (Dispatch Services) of this title.
1401.5 Passenger rates and charges. The rates and charges for each sedan trip shall comply with the following requirements:
(a) They shall be calculated based on time and distance, except for a fare approved by the Office in an administrative order for a trip to an airport or for another point-to-point trip based on a well-traveled route or an event-related trip;
(b) They shall be reflected in an estimated fare provided to the passenger prior to the acceptance of service;
(c) If the DDS uses surge or demand pricing and it applies to such trip, the effect of such pricing shall be revealed in the estimated fare;
(d) They shall be consistent with the DDS statement of its fare calculation method posted on its website pursuant to § 1601.7;
(e) They shall not exceed the estimated fare by more than twenty (20) percent or twenty-five dollars ($25.00), whichever is less; and
(f) They may include a gratuity provided that the passenger is permitted to pay no gratuity and the amount of the gratuity is determined by the passenger.
1401.6 All costs connected with an SPS or proposed SPS, including development, obtaining approval by the Office, installation, operation, repair, lease, service and support, maintenance, and upgrade shall be the responsibility of the owner or operator of the vehicle, the DDS, or any other person, as may be allocated by a written agreement.
1402 PASSENGER SURCHARGE ACCOUNTS
1402.1 Collection of the sedan passenger surcharge required by this chapter shall require each owner of a sedan vehicle to maintain a passenger surcharge account at the Office, unless such owner associates with a DDS that maintains a surcharge account on behalf of the sedan owners that use its Office-approved SPS, as provided in this section.
1402.2 Requirements for sedan owner surcharge account. Unless a sedan owner associates with a DDS that maintains a DDS surcharge account under § 1402.2, each owner of one or more sedan vehicles shall maintain a surcharge account at the Office meeting the following requirements for each vehicle:
(a) The account shall be opened by making an initial payment to the Office of one-thousand dollars ($1,000) per sedan vehicle no later than fourteen (14) days after the owner associates with an Office-approved SPS;
(b) The owner shall maintain with the Office current and valid account information for a payment card, or a checking or savings account of a federally-insured financial institution, to which the Office may post charges necessary to maintain the surcharge account at the levels required by this section;
(c) The Office shall keep each surcharge account in a federally-insured financial institution that does business in the District, in a bank account that bears interest;
(d) The owner shall ensure that the surcharge account at all times has a minimum balance of seven-hundred fifty dollars ($750) per vehicle;
(e) The Office shall withdraw from the account on a monthly basis an amount equal to the number of sedan trips reported by the SPS as made by each vehicle in the prior month times the amount of the sedan passenger surcharge.
(f) The Office may, at any time, deduct from the surcharge account any additional amount necessary to bring the surcharge account into compliance with this section based on the trip data from the SPS, and the owner may, within fifteen (15) days thereafter, request a reconsideration of such action, which shall be ruled upon by the Office within thirty (30) days;
(g) The owner may, at any time, using a form provided by the Office, request a reconciliation of its account, if it believes the account contains more than one-hundred fifty (150) percent of the minimum balance he or she is required to maintain, which shall be ruled upon by the Office within thirty (30) days; and
(i) The balance of a surcharge account shall be refunded to the vehicle owner within thirty (30) days after a vehicle is no longer licensed by the Office for use as a sedan, if the surcharge account does not extend to any other vehicles. The account shall be closed after the remaining balance is refunded. If the account extends to other vehicles owned by the same owner, the Office shall refund any amount in the surcharge account that exceeds one-thousand dollars ($1,000) multiplied by the number of vehicles covered by the surcharge account.
1402.3 Requirements for DDS surcharge account. A DDS that applies and is approved pursuant to § 1403 to maintain a surcharge account on behalf of the sedan owners that use its Office-approved SPS shall maintain a DDS surcharge account at the Office meeting the following requirements for all of the vehicle(s) owned by such owners:
(a) The account shall be opened at the Office with an initial deposit of ten thousand dollars ($10,000), plus one-thousand dollars ($1,000) per vehicle for each vehicle on the vehicle inventory no later than fourteen (14) days after the Office approves the SPS;
(b) The DDS shall maintain with the Office current and valid account information for a payment card, or a checking or savings account of a federally-insured financial institution, to which the Office may post charges necessary to maintain the surcharge account at the levels required by this section;
(c) The Office shall keep each DDS surcharge account in a federally-insured financial institution that does business in the District in a bank account containing only surcharge accounts and bearing interest;
(d) The DDS shall ensure that its account maintains a minimum balance of ten-thousand dollars ($10,000.00), plus seven-hundred fifty dollars ($750) for each vehicle on the vehicle inventory;
(e) The Office shall withdraw from the account on a monthly basis an amount equal to the number of sedan trips reported by the SPS as made by each vehicle on the DDS’ inventory in the prior month times the amount of the sedan passenger surcharge.
(f) The Office may, at any time, deduct from the surcharge account any additional amount necessary to bring the surcharge account into compliance with this section based on the trip data from the SPS, and the DDS may, within fifteen (15) days thereafter, request a reconsideration of such action, which shall be ruled upon by the Office within thirty (30) days;
(g) The DDS may, at any time, using a form provided by the Office, request a reconciliation of its account, if it believes the account contains more than one-hundred fifty (150) percent of the minimum balance it is required to maintain, which shall be ruled upon by the Office within thirty (30) days; and
(8) The balance of a surcharge account corresponding to a specific vehicle shall be refunded to the DDS within thirty (30) days following an event that results in such vehicle no longer being licensed by the Office for use as a sedan. If the surcharge account does not extend to any other vehicles, the surcharge account shall also be closed at such time. The balance of a surcharge account shall be refunded to the DDS and the account closed within thirty (30) days following an event that results in the SPS no longer being authorized for use by the Office.
1403 REQUIREMENTS FOR SEDAN PAYMENT SYSTEMS
1403.1 An SPS may be operated only by a DDS with a valid certificate of registration issued by the Office of Taxicabs pursuant to Chapter 16 of this title.
1403.2 SPS equipment requirements. An SPS shall incorporate any reasonable combination of fixed or mobile hardware technology components, such as a Bluetooth-enabled smartphone, mobile data terminal, or tablet, with an attached or integrated credit card reader, and printer, and shall:
(a) Allow the DDS to validate the operator as required by § 1402.3(b)(1);
(b) Collect and allow the DDS to report the electronic trip data required by
§ 1402.3(b)(2);
(c) Allow the DDS to report and process the information required by § 1402.3(b)(3) to enable the Office to receive the sedan passenger surcharge for each trip;
(d) Allow the sedan operator to accept each digital dispatch;
(e) Allow the DDS to process each digital payment;
(f) Provide a printed receipt, or, if the passenger chooses, allow the operator to trigger the sending of an electronic receipt no later than when the passenger exits the vehicle, which shall contain at least: the date and time of the trip; the mileage of trip; the name of the DDS; the vehicle’s public vehicle identification number PVIN; the operator’s name; the origination and destination of the trip; and a breakdown of the total fare paid, including all fees and charges and any gratuity; and
(g) Not allow the operator to store or access the passenger’s payment information.
1403.3 SPS service and support requirements. Each SPS shall operate in combination with a single DDS that shall:
(a) Maintain with the Office an inventory of vehicles and operators that meets the following requirements:
(1) The initial inventory shall be filed with the application for SPS approval under § 1403;
(2) At all times while the SPS is used by any sedan operator, the DDS shall maintain the inventory to insure that it is current and accurate through such means and at such times as required by the Office;
(3) For each vehicle associated with the SPS, the inventory shall contain:
(A) The name and address of the vehicle’s owner(s), including the owner’s work and cellular telephone numbers;
(B) The vehicle’s vehicle identification number (VIN), make, model, and year of manufacture;
(C) A certification that the vehicle is in compliance with Chapter 9 (Insurance Requirements) of this title;
(D) An indication of whether the vehicle is wheelchair accessible;
(E) An indication of whether the vehicle is in active use; and
(F) If the vehicle is associated with a sedan organization, the name, address, and telephone numbers of such organization;
(4) For each operator associated with the SPS, the inventory shall contain:
(A) The name and address of the operator, including the operator’s work and cellular telephone numbers;
(B) The number of the operator’s license issued by the Office;
(C) An indication of whether the operator is actively using the SPS; and
(D) If the operator is associated with a sedan organization, the name, address, and telephone numbers of such organization; and
(5) The Office may remove a vehicle or operator from an inventory at any time with reasonable notice to the DDS if such vehicle or operator is not legally authorized or permitted to operate; and
(b) Maintain a data connection to the SPS equipment used in each vehicle that shall do all of the following:
(1) Validate the status of the operator license issued by the Office in real-time by connecting to the Office’s Back Office Management Information System (“BOMIS”) and verifying that the license is not revoked or suspended and that the operator is in compliance with Chapter 9 (Insurance Requirements) of this title;
(2) Transmit to the BOMIS every twenty-four (24) hours via a single electronic data feed, in a data structure consistent across all DDSs as established by the Office, the following information:
(A) The date;
(B) The operator license number and the PVIN for the vehicle, reported in a uniform, anonymous format established by the Office;
(C) The name of the sedan organization with which the vehicle or operator is associated, if applicable;
(D) The time at the beginning of the tour of duty;
(E) The time and mileage of each trip;
(F) The geospatially-recorded place of origin and destination of each trip, generalized to census tract level;
(G) The number of passengers transported during the trip;
(I) A unique trip number assigned by the DDS and reported in a format established by the Office; and
(J) The total fare paid, including all fares and charges, and any gratuity; and
(H) The time at the end of the tour of duty;
(3) Process and report to the BOMIS the information needed for the Office to receive the passenger surcharge for each sedan trip, by debiting either the sedan owner’s surcharge account or the DDS surcharge account, as provided by § 1402.
1404 REVIEW PROCESS FOR PROPOSED SEDAN PAYMENT SYSTEMS
1404.1 No person shall operate an SPS in the District of Columbia unless such SPS has first been approved by the Office under this section.
1404.2 Only a DDS with a valid certificate of registration or applying concurrently for a certificate of registration pursuant to Chapter 16 (Dispatch Services) of this title may be approved to operate an SPS.
1404.3 Application requirements for a proposed SPS. In order to apply for approval by the Office of a proposed SPS, a DDS shall file an application under penalty of perjury, accompanied by a fee of one-thousand dollars ($1,000), and including the following information:
(a) The name and contact information of the applicant;
(b) Information and documentation demonstrating that the SPS meets the equipment requirements in § 1403.2;
(c) Information and documentation demonstrating that the SPS meets the service and support requirements in § 1403.3, including the initial vehicle inventory;
(d) Information and documentation about the forms of digital dispatch and digital payment that the SPS would offer to passengers;
(e) An indication of whether the DDS proposes to maintain a DDS surcharge account on behalf of its associated vehicle owners pursuant to § 1402.3 (c), and, if so, a bank certification reflecting its ability to comply with the initial deposit requirement of § 1402.3(a);
(g) A sample of the operating agreement the DDS uses to associate with sedan owners and operators to provide SPS service; and
(h) Such other information and documentation as the Office may require at the time of application or during the review process to determine that the SPS will meet all the requirements of § 1403 and this section, and that the sedan passenger surcharge will be received by the Office for each sedan trip using the proposed SPS.
1404.4 Throughout the review process, the DDS shall bear the burden of establishing to the satisfaction of the Office that the proposed SPS will meet all the requirements of § 1403 and this section, and that the sedan passenger surcharge will received by the Office for each sedan trip using the proposed SPS.
1404.5 The Office shall complete its review and issue its decision approving or rejecting each SPS, including its decision whether the DDS is approved to maintain a surcharge account on behalf of its associated owners pursuant to § 1402.3, within fourteen (14) days, provided however, that the fourteen (14) day period may be extended by the Office for no more than ten (10) additional days at the discretion of the Office, and, if the Office has applications for more than five (5) SPS systems (without regard to the number of applications) pending at any time for review and approval, the Office may hold in abeyance its review of any applications over this number.
1404.6 The applicant shall cooperate with Office staff throughout the review process, including at the demonstration described in § 1403.7. An application may be rejected by the Office if the applicant does not cooperate in a timely and reasonable manner during the review process. The Office may deny an application that contains materially false information or as to which materially false information is provided orally or in writing in order to induce approval.
1404.7 The Office may arrange one (1) demonstration of the SPS equipment, where the Office technical staff shall have the opportunity to examine and test the equipment and ask questions of the DDS’s technical staff, who shall attend the demonstration. An applicant shall be given the opportunity for one (1) additional demonstration upon a showing of good cause, or if required by the Office.
1404.8 An approval of an SPS shall continue in effect for twelve (12) months, during which time no substantial change may be made to the SPS without written approval from the Office. A DDS shall promptly inform the Office of a proposed substantial change that would require written approval.
1404.9 Each approved SPS shall be listed on the Commission’s website promptly following approval and shall remain listed until such approval is no longer effective.
1404.10 Each approved SPS shall be submitted by the DDS for renewal at least sixty (60) days prior to the expiration of the then-existing approval, unless the Office provides otherwise in writing. Renewal shall require compliance with the procedures in this section for an approval of a new SPS, except to the extent the Office does not so require. An approval shall continue in effect beyond its expiration date during such time as an application for re-approval is pending in proper form.
1404.11 Approval of an SPS may be suspended or revoked at any time by the Office with reasonable notice to the DDS if the Office determines that the SPS no longer meets the requirements of this chapter or that the owners or operators associated with it are not in substantial compliance with this title or other applicable law. Approval of an SPS may be suspended immediately by the Chairman of the Commission without prior notice to the DDS, but with prompt notice and opportunity to be heard, thereafter, if the Office determines that the SPS or the owners or operators associated with it are in such non-compliance with this title or other applicable law so as to pose a significant threat to public safety, operator safety, or consumer protection.
1404.12 If the Office denies an application for approval of a proposed SPS, it shall transmit a written notice of denial to the applicant. The notice shall state the reasons for the Office’s decision in writing.
1404.13 A denial may be appealed to the Chairman of the Commission within fifteen (15) business days after the notice of denial is provided by the Office. If the notice is not appealed within the fifteen (15) day period, the Office’s denial shall constitute a final decision of the Office. If the notice is appealed within the fifteen (15) day period, the Chairman shall issue a decision on the appeal within thirty (30) days. A timely appeal of a denial of a renewal application shall extend an SPS’s existing approval pending the Chairman’s decision on the appeal. A decision of the Chairman to affirm or reverse a denial shall constitute a final decision of the Office. A decision of the Chairman to remand a denial of a renewal application pending further review shall extend an SPS’s existing approval pending the final decision of the Office.
1405 PROHIBITIONS
1405.1 No person may provide or attempt to provide sedan service in the District of Columbia other than in compliance with the provisions of this chapter, and all applicable provisions of Chapters 12 and 16 of this title.
1405.2 No person may process or collect a fare or charge in connection with sedan service that does not comply with the rates and charges set forth in § 1601.6(b).
1405.3 A vehicle owner or operator shall not be entitled to payment for a sedan trip if the vehicle or the operator was not on the DDS vehicle inventory required by
§ 1403.3(a) when the digital dispatch was initiated by the passenger.
1405.4 No sedan operator may pick up or transport a passenger if the SPS printer component is not functioning as required, regardless of whether an electronic receipt is available, as required by §1403.2(f).
1405.5 No owner or operator may alter or tamper with a component of the SPS or make any change in the vehicle that prevents the SPS from operating in conformity with the SPS approval granted by the Office.
1405.6 No operator may operate a vehicle as a sedan with an SPS that has been tampered with, broken, or altered. The operation of a sedan with a tampered, broken, or altered SPS shall give rise to a rebuttable presumption that the operator knew of the tampering, breaking, or alteration.
1405.7 No operator may provide sedan service other than through a digital dispatch processed by an Office-approved SPS.
1405.8 No operator may be paid for sedan service other than through a digital payment processed by an Office-approved SPS.
1405.9 A sedan operator shall pick up a passenger at the time and location provided in the digital dispatch.
1406 PENALTIES
1406.1 Each violation of this chapter by a sedan or limousine organization, independent vehicle owner, or vehicle operator, shall subject the violator to:
(a) A civil fine of two-hundred fifty ($250) dollars, which shall double for the second violation of the same provision, and triple for each violation of the same provision thereafter;
(b) Suspension, revocation, or non-renewal of the operator’s license issued pursuant to Chapter 12 of this title;
(c) Impoundment of each vehicle found to be operating in violation of this chapter, including operating as a sedan without an office-approved SPS or with an SPS the approval of which has been suspended, revoked, or not renewed;
(d) Confiscation of any SPS equipment used in violation of this chapter; or
(e) A combination of the sanctions enumerated in this subsection.
1406.2 Each violation of this chapter by a DDS or its authorized representative shall subject the DDS to:
(a) A civil fine of five hundred ($500) dollars, which shall double for the second violation of the same provision, and triple for each violation of the same provision thereafter;
(b) Suspension, revocation, or non-renewal of the approval of the SPS associated with the DDS;
(c) Suspension, revocation, or non-renewal of the certificate of registration of the DDS issued by the Office under Chapter 16 of this title;
(d) Confiscation of any SPS equipment used in violation of this chapter; or
(e) A combination of the sanctions enumerated in this subsection.
1407 ENFORCEMENT OF THIS CHAPTER
1407.1 The enforcement of any provision of this chapter shall be governed by the procedures set forth in Chapter 7 (Enforcement of this Title) of this title.
1499 DEFINITIONS
1499.1 The terms “sedan,” “limousine,” “owner,” and “operator” shall have the meanings ascribed to them in Chapter 12 of this title.
1499.2 The terms “dispatch,” “digital dispatch,” “digital dispatch service,” “DDS,” and “digital payment” shall have the meanings ascribed to them in Chapter 16 of this title.
1499.3 The term “cashless meter payment” shall have the meaning ascribed to it in Chapter 6 of this title.
1499.4 The following words and phrases shall have the meanings ascribed:
“Associated” connotes a voluntary relationship of employment, contract, ownership, or other legal affiliation. For purposes of this chapter, an association not in writing shall be ineffective for compliance purposes.
A “PVIN” or public vehicle-for-hire identification number is a unique number assigned by the Office of Taxicabs to each public vehicle-for-hire.
“Sedan passenger surcharge” means a twenty-five cent ($.25) passenger surcharge required to be received by the Office for each trip in a sedan.
Copies of this proposed rulemaking can be obtained at www.dcregs.dc.gov or by contacting Jacques Lerner, General Counsel and Secretary to the Commission, District of Columbia Taxicab Commission, 2041 Martin Luther King, Jr., Avenue, S.E., Suite 204, Washington, D.C. 20020. All persons desiring to file comments on this proposed rulemaking should submit written comments via e-mail to dctc@dc.gov or by postal mail or hand delivery to the DC Taxicab Commission, 2041 Martin Luther King, Jr., Ave., S.E., Suite 204, Washington, D.C. 20020, Attn: Jacques Lerner, Interim General Counsel and Secretary to the Commission. Comments should be filed within thirty (30) days after publication of this notice in the D.C. Register.
