INDUSTRY NOTICE #12-1    January 24, 2012

IMPORTANT: MEDALLION OWNERS WILL SOON RECEIVE ACCESSIBLE DISPATCH PAYMENT INVOICES

The New York City Taxi and Limousine Commission (TLC) recently voted unanimously to revise our current taxicab accessibility regulations. As part of this process we created an accessible dispatch program to provide on-demand service to persons who use wheelchairs.

The dispatching service will be funded by an annual payment from all medallion owners. The selected dispatch provider, Metro Taxi, Inc. will collect the fee — $98 per medallion annually — and will be responsible for dispatching accessible yellow medallion taxicabs in Manhattan.

Medallion owners will all soon be receiving an invoice from Metro Taxi, and we strongly urge that this annual payment be made on or before the due date as required by Metro Taxi so that we can ensure the best possible taxicab service to all New Yorkers.

Beyond making this annual payment, non-accessible medallion taxicabs will not be required to take further action. The operators of accessible medallion taxicabs will receive separate instructions about their participation in this program.


REGULATORY UPDATE

Overview and Highlights of Chapter Amendment to S.5825, A.8496: The State and City of New York's Plan to Expand Street Hail Service Citywide, Increase Wheelchair Accessibility and Raise Revenue from Auctioning New Medallions and Permits

Quick Summary. The State and City of New York and the taxicab industry are approaching an important
crossroads in the integration and expansion of wheelchair-accessible cabs.

On December 21st, 2011, New York State Governor Andrew Cuomo signed a Chapter Amendment to the laws of 2011 (the "Chapter Amendment") which authorizes New York City ("NYC") to issue:

(i) up to 2,000 new taxicab licenses to vehicles that are accessible to individuals with disabilities;

(ii) 18,000 hail vehicle licenses;

(iii) up to 450 hail base permits to for-hire base stations; and

(iii) to amend the state tax law, NYC administrative code and the state vehicle and traffic law, in relation to taxicabs and hail licenses.


This new law is expected to significantly impact NYC for-hire ground transportation, as well as raise government revenue from the sale of new medallions and hail permits. Highlights include new oversight authority being vested in the Governor via the NY State Department of Transportation (DOT), as well as several direct delegations of authority to the Mayor of NYC and the TLC with a reduced advisory role accorded to the NYC Council.

This new law could increase the total size of the wheelchair accessible fleet to 5832: comprised of 2232 (or 17%) of all 12,237 yellow taxicabs, and up to 3600 of the 18,000 livery street hail permit vehicles. Also, the Chapter Amendment authorizes the first ever government subsidy fund and grant program in the amount of $54 million for accessible vehicle wheelchair ramp retrofitting.

In addition to the staggered issuance of permits, several significant reports must be prepared on the new hail permits and accessibility initiatives. Other provisions authorize a 50 cent surcharge to apply to these new vehicles to be paid by passengers and collected and recorded by owners. Holding it all together are increased fines and penalties for engaging in illegal street hails without required permits.

The Chapter Amendment has many nuances and the implementation of these systemic changes will be determined largely by subsequent regulations, studies, legal interpretation and litigation. Subsequent TLC regulations will govern the procedures for not only medallion auctions, but also for how the new base and vehicle hail permits and accessible grants will be distributed.

To further complicate developments, just two days after the passage of this new law, Federal District Judge George Daniels issued a decision in Noel v. TLC that appears to halt the issuance of any permits under the Chapter Amendment until he approves a TLC plan. This legal action was commenced by disability advocates, and the Court found that the TLC discriminated against wheelchair users under the Americans with Disabilities Act (ADA).

While the legislative intent of the Chapter Amendment concludes that taxis and liveries are part of the "mass transit system", the Court found that the TLC does not operate a "public transportation system" under the ADA. However, the Court did find that based on the limited number of approved wheelchair accessible vehicle models and vehicles in the overall fleet, that the TLC does not provide "meaningful access" for disabled passengers in violation of the ADA.


For Windels Marx Lane & Mittendorf, LLP


Melissa Jenkins Latham
matter COMMUNICATIONS
P: 978-518-4523
C: 978-853-4166
melissa@matternow.com


TLC BUCKLE UP MESSAGE URGES TAXI RIDERS TO GET CLICK-ISH

NEW VIDEO PSA ENCOURAGES SEATBELTS FOR SAFETY

The NYC Taxi and Limousine Commission (TLC) announced in Decrember 2011, the release of a new video public service announcement encouraging passengers to buckle their seatbelts for safety that can be viewed on each taxicab’s Passenger Information Monitor (PIM).

In the latest year for which statistics are available, 2009, taxicabs were involved in 4,093 accidents resulting in just over 1,500 (largely) minor to moderate injuries. Of those accidents where seatbelt use was recorded only 41% were belted, and 59% were not.

A recent in-cab survey of taxi passengers on PIM touch screens yielded similar results. Of the 7,245 riders who responded to the question ― Are you wearing a seatbelt?, only 35% (or 2,536) answered yes, while 65% (or 4,709) answered no.

"Pretty much everyone has gotten the message that you need to buckle up in the front seat of a car, but far too few taxi passengers are buckling up in the back seat", said TLC Commissioner/Chair David Yassky. "Buckling up isn’t just for the front seat – every passenger in an automobile is safer when the seatbelt is buckled."

The 35 second messages which are also available for viewing on the TLC’s web site at www.nyc.gov/taxi were produced by NYC Media which is a part of the Mayor's Office of Media and Entertainment, the official TV, radio and online network of New York City.

The New York City Taxi and Limousine Commission (TLC) was created in 1971, and is the agency responsible for the regulation and licensing of almost 200,000 yellow medallion taxicabs and for-hire vehicles, their drivers, and the businesses that operate and support their industries. It is recognized as the largest and most active taxi and for-hire industry regulatory body in the United States.

To find out more about the TLC, or to review its rules, regulations and procedures, we encourage you to visit our official web site at WWW.NYC.GOV/TAXI or call 311 in New York City, or 212-NEW-YORK from outside of New York City.