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STREET HAIL LIVERY SERVICE THROUGHOUT UPPER MANHATTAN AND THE OUTER BOROUGHS DENIED BY THE NEW YORK STATE SUPREME COURT On Friday, August 17, 2012, New York State Supreme Court Justice Arthur F. Engoron rejected the Mayor Bloomberg plan to expand street hail livery service throughout upper Manhattan and the outer boroughs. The basis for the court action, as stated by Justice Engoron was, among a number of issues, that New York City had violated the home rule provisions of the New York State Constitution. Mayor Bloomberg had petitioned the state legislature to pass the law permitting street hail livery service throughout the boroughs without first acquiring the approval of the New York City Council. In addition, Justice Engoron cited the "poison pill" provision of the legislation crafted by the state legislature which stipulated that if part of the law passed by the state was at any time declared invalid then the entire law would have to be invalidated. When negotiations with the City Council broke down, Mayor Bloomberg turned to Albany and the State legislature to pass the livery hail legislation. Justice Engoron indicated that, by so doing and by circumventing the City Council, the City had neglected its primary duty to negotiate the terms of the street hail livery service legislation with the City Council which had primary jurisdiction over the legislation. Justice Engoron indicated that “When all is said and done, railways are a state concern, taxicabs are a local concern,” He added that the city had proved itself “up to the task of regulating its own taxicabs.” To illustrate this point, Matthew Daus, Esq. wrote in his June 2012 column in this magazine the following :
The legislation had authorized the city to issue 18,000 “hail licenses” for northern Manhattan and the the outer boroughs. The new law required that 20 percent of the new livery vehicles be wheelchair accessible. In addition, the law also permitted the city to issue 2,000 medallions for wheelchair accessible yellow taxis which was expected to raise $1 billion for the city by way of a public auction. The yellow taxi industry led by the Metropolitan Taxicab Board of Trade, a plaintiff in the case, described the street hail livery service legislation as “flawed and destructive”. In response and representing New York City in the court action, the city’s corporation counsel, Michael A. Cardozo, stated that, “The irrational fear of lost profits by medallion owners and lenders should not be permitted to derail these important programs.” The City plans to appeal the Supreme Court's decision.
Livery Street Hail Litigation: Analysis & Predictions By Matthew W. Daus, Esq. Photo: Elena Michaels NEW TAXICAB RATE OF FARE The New York City Taxi and Limousine Commission (TLC) hereby announces the following industry information specific to the increase in metered rate of fare for all medallion taxicabs, approved July 12, 2012.
As of 12:01 a.m. on September 4, 2012, medallion taxicabs are authorized to charge the following rates of fare:
All taximeters must be recalibrated by a TLC licensed taximeter establishment. A list of all TLC licensed public taximeter shops may be found on the TLC’s website: www.nyc.gov/taxi. (Conversion charts in lieu of a recalibrated meter are NOT permitted). Taxicab owners will be responsible for procuring new exterior taxicab decals. The size and placement of all new decals is now posted on the TLC’s website as well as a list of authorized printers. For illustration purposes decals on the Ford Crown Victoria will be placed as shown below:
Owners must also affix an overlay sticker for the rate card. Rate card overlays may be obtained only at TLC licensed taximeter shops.
The new rate of fare is effective as of 12:01 a.m. Tuesday, September 4, 2012 provided that the taxicab meets the requirements outlined above. At their next scheduled inspection on or after Sunday, September 30, 2012, all taxicabs must:
Photo: Elena Michaels NEW LEASE CAPS The New York City Taxi and Limousine Commission (TLC) hereby announces the following industry information specific to the increase in lease caps for all medallion taxicabs as published in TLC rules Chapter 58, Section 21. The following changes are effective as of 12:01a.m. on September 30, 2012: I. Credit card fees. Owners may no longer charge drivers 5% of credit card fares for processing fees. All processing costs are now included in lease caps for fleets and agents.
An owner of a taxicab can charge a lease rate to a driver that is not greater than the following:
An owner of a taxicab can charge a lease rate to a driver that is not greater than the following: A “Medallion-only” lease includes:
A lessor can offer coverage for collision and physical damage to the vehicle to the lessee not to exceed $50 per week but cannot require that the lessee purchase such coverage. The lessor may agree with the driver to provide services or accommodations on an arms length basis outside of the lease; all of these transactions must be recorded by the lessor and the records must be available for inspection by the Commission.
All owners, lessors, and agents must post the updated Driver’s Bill of Rights (found on the TLC website: www.nyc.gov/taxi) as directed in the TLC rules.
All owners, lessors, and agents who own taxicabs must update the meter, rate card, and exterior decals as outlined in Industry Notice 12-25 before the new lease caps take effect for their lease rates.
An Owner/Lessor or Agent leasing medallions and vehicles (fleet leases) has the option – but is not required – to include a shift’s worth of gas as part of the lease, and may charge a gas surcharge of up to $21 per shift in addition to the fleet lease cap amounts set forth above. The TLC will adjust this surcharge amount after December 31 to keep pace with prevailing fuel prices. This lease surcharge is optional at the choice of the Owner/Lessor or Agent. Owners/Lessors or Agents can continue to sell gasoline to their lessees, even if the cost is more than $21 per shift, provided that drivers have the option to purchase gasoline elsewhere and that the price is at or below market rate. EXTERIOR ADVERTISING COMPANIES The following is a list of exterior advertising companies, their addresses and phone numbers. VERIFONE MEDIA, LLC
VECTOR MEDIA TAXI
TLC AUTHORIZED PRINTERS Taxicab Partitions, Inc.
Star Paper, LLC
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