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 :


Home Rule Message

The “Home Rule” law’s origin comes from the New York State Constitution, which provides that the State legislature shall be allowed to pass laws that affect local matters at the request of 2/3 of the local legislature (here the NYC Council) or on request of the chief executive and a majority of the local legislature. This claim is very strong as taxi and livery industry regulation and oversight has been a “City matter” for 75 years and the Street Hail Livery Law was enacted without any input from the City Council.

In order for the State to pass a law without local input or a home rule message as happened here, the State law must further and bear a “reasonable relationship to a substantial State wide concern.” The industry contends there is no substantial state interest to justify the State Legislature acting without a Home Rule message because,inter alia, the Street Hail Livery Law is not part of a comprehensive plan to affect NYC’s transportation system.

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.


1. For a full analysis of the issues concerning this case please refer to the following column in the July 2012 archives of TLC Magazine:

Livery Street Hail Litigation: Analysis & Predictions

By Matthew W. Daus, Esq.
Partner & Chair, Transportation Practice Group,
Windels, Marx

Photo: Elena Michaels


Industry Notice #12-25

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.


New taxicab rate of fare.

As of 12:01 a.m. on September 4, 2012, medallion taxicabs are authorized to charge the following rates of fare:


Metered trips in New York City

  • $2.50 initial charge (first 1/5 mile);


  • $0.50 MTA tax;


  • $0.50 per each additional 1/5 mile;


  • $0.50 per 60 seconds in stopped or slow traffic;


  • $1.00 surcharge from 4 p.m. to 8 p.m. on weekdays, excluding holidays;


  • $0.50 night surcharge from 8 p.m. to 6 a.m. daily.


Trips to/from JFK International Airport and Manhattan

  • $52.00, plus any tolls and/or tip;


  • the $0.50 night surcharge shall not be added to this flat rate;


  • the $1.00 peak surcharge shall not be added to this flat rate;


  • the $0.50 MTA tax SHALL be added to this flat rate.


Trips to Newark Airport

  • the amount shown on the taximeter plus a surcharge of $17.50; and


  • all necessary tolls to and from the destination.


Prior to charging the new rate, all vehicle owners must recalibrate taximeters, update door decals, and affix a rate card overlay sticker.

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.


Implementation dates.

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:

  • have recalibrated their taximeter and passed the mile run test;


  • have received and posted a new rate card; and


  • have the new exterior decals as described above properly affixed.

Photo: Elena Michaels


Industry Notice #12-26

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.


II. Medallion and vehicle (fleet) lease caps.

An owner of a taxicab can charge a lease rate to a driver that is not greater than the following:



III. Driver Owned Vehicle (DOV) lease caps.

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:

  • use of the medallion


  • all applicable TLC fees except for TLC vehicle inspection fees (the lessor is not required to provide vehicle registration or payment of the Commercial Motor Vehicle Tax)


  • insurance as required by TLC rules


  • credit card fees or charges


  • up to 3 drivers on a lease at the request of the drivers


A lessor may not accept payment for the lease or purchase of a vehicle. 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.


An “All-in” lease includes:

  • use of the medallion


  • all applicable TLC and DMV fees except TLC vehicle inspection fees


  • insurance as required by TLC rules


  • credit card fees or charges


  • all vehicle purchase and/or finance costs, vehicle sales tax, and related costs


  • up to 3 drivers on a lease at the request of the drivers


Title for the lease vehicle must pass to one or more of the lessees, if the lessee requests, after 3 years or after all vehicle financing costs have been paid whichever is sooner.

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.


IV. Driver’s Bill of Rights.

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.


V. Change meters and update fare.

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.


VI. Voluntary Optional gasoline surcharge.

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.
Please call if you have any further questions 718-391-5606.

VERIFONE MEDIA, LLC
28-25 Borden Avenue, Long Island City, NY 11101
Phone - 718-786-5975 • Contact: Celeste Pipia


SHOW MEDIA NEW YORK, LLC
37-10 22nd Street, Long Island City, NY 11101
Phone - 718-784-7884 • Contact: Phillip Guevaora / Nicholas Witkowich


ADVANCED MEDIA GROUP, INC
34-14 64th Street, Woodside, NY. 11377
Phone - 718-396-7777 • Contact: Daniel Seoane


TAXI TOP, LLC
48-02 Van Dam Street, Long Island City, NY 11101
Phone - (718) 255-5730 • Fax (718) 937-8607

VECTOR MEDIA TAXI
708 Third Ave, New York, NY 10017
Phone - 212-557-9405 • Contact: Chad Silver



TLC AUTHORIZED PRINTERS

Taxicab Partitions, Inc.
14-15 Inwood Avenue Bronx, NY 10452 • 718-538-7272 • Alberto@TaxicabProducts.com


American Taximeters & Communications
21-46 44th Drive Long Island City, NY 11101 718-937-4600 • tonym@at-c.com


Downtown Taximeter Shop, Inc.
609 West 47th Street, New York, NY 10036 • 212-757-3198 • DowntownTaxi@yahoo.com


Oldee Taxi Instruments, Corp.
43-05 Vernon Boulevard, Long Island City, NY 11101
andrea@oldeetaxiinstruments.com • agallego@oldeetaxiinstruments.com


Decal Techniques, Inc.
25 Mahaw Street W. Babylon, NY 11704 • 800-735-3322 • decalgene@earthink.net


DMP Company, Inc.
447 10th Avenue New York, NY 10001 • 212-564-4275 • dmptaxi@aol.com


ABC Meter Shop, Inc.
10-02 46th Avenue Long Island City, NY 11101 • 718-361-8515 • Alexg195@yahoo.com


Metroshop, Inc.
37-03 21st Street, Long Island City, NY 11101 • 917-359-1868 • Mark_10@msn.com


521 West 21st Management Corp.
415 W. 127th Street, New York, NY 10027 • 212-665-4900 • Eastwest79@aol.com


Plastic-Craft Products Corp.
744 West Nyack Road, West Nyack, NY 10994 • 845-358-3010 dane@plastic-craft.com

Star Paper, LLC
174 5th Avenue, Suite 401, New York, NY 10010 • 212-462-4800 • juan@starpaper-printing.com


Trizz Taximeter Repair Corp.
520 W. 44th Street, New York, NY 10036 • 646-336-7625 • twckkbzg@aol.com


Custom Shields, Inc.
P.O. Box 456 Southeastern, PA 19399 • 484-367-7201 • phanson@customshields.com


New Star Taxi Meter
12-04 44th Avenue, Long Island City, NY 11101 • 917-681-2044 • starabf@aol.com


Pioneer Graphics, Inc.
37 Sarah Drive, Farmingdale, NY 11735 • 718-898-1111 • pioneergraphic@yahoo.com

 

 


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