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City of Seattle Legislative Information Service

Information retrieved on September 26, 2016 12:02 PM


Council Bill Number: 118036
Ordinance Number: 124441


AN ORDINANCE relating to companies and drivers of a new type of for-hire vehicle in order to create a pilot program for transportation network companies and affiliated drivers and vehicles: establishing minimum operating requirements for transportation network companies and affiliated drivers; imposing vehicle inspections; imposing a zero tolerance drug use policy for affiliated drivers; imposing minimum insurance requirements for transportation network companies and affiliated vehicles; requiring rate transparency for transportation network companies; and establishing licensing fees; raising the maximum number of taxicab licenses issued by the City; revising terminology; adding new sections and amending various Sections of Chapter 6.310 of the Seattle Municipal Code.

Status: Passed
Date passed by Full Council: March 17, 2014
Vote: 9-0
Date filed with the City Clerk: March 19, 2014
Date of Mayor's signature: March 19, 2014
(about the signature date)


Date introduced/referred to committee: February 24, 2014
Committee: Taxi, For-Hire, and Limousine Regulations
Sponsor: CLARK
Committee Recommendation: Pass as Amended
Date of Committee Recommendation: February 27, 2014
Committee Vote: 5(Clark, Bagshaw, Burgess, Godden, Rasmussen)-0-4 (abstain: Harrell, Licata, O'Brien, Sawant)

Index Terms: TAXICABS, PUBLIC-REGULATIONS, MOTOR-VEHICLE-SERVICES, ADMINISTRATIVE-PROCEDURES, LICENSES

References/Related Documents: Repealed by Ordinance 124524 ; Ordinance 124526

Fiscal Note: Fiscal Note to Council Bill No. 118036

Electronic Copy: PDF scan of Ordinance No. 124441



Text

CITY OF SEATTLE

ORDINANCE __________________

COUNCIL BILL __________________

AN ORDINANCE relating to companies and drivers of a new type of for-hire vehicle in order to create a pilot program for transportation network companies and affiliated drivers and vehicles: establishing minimum operating requirements for transportation network companies and affiliated drivers; imposing vehicle inspections; imposing a zero tolerance drug use policy for affiliated drivers; imposing minimum insurance requirements for transportation network companies and affiliated vehicles; requiring rate transparency for transportation network companies; and establishing licensing fees; raising the maximum number of taxicab licenses issued by the City; revising terminology; adding new sections and amending various Sections of Chapter 6.310 of the Seattle Municipal Code.

NOW, THEREFORE,

BE IT ORDAINED BY THE CITY OF SEATTLE AS FOLLOWS:

Section 1. The City Council ("Council") makes the following legislative findings of fact and declarations:

1. The Council finds that technology that allows consumers to directly dispatch drivers for trips via the internet using mobile interfaces such as smartphone applications, ("application dispatch") did not exist in Seattle when for-hire driver and vehicle regulations were last amended by Ordinance 122763 in 2008; and

2. The Council caused a taxi, for-hire, and limousine services demand study ("demand study") to be undertaken to evaluate passenger demand and assess the quality of service and the final study was completed by consultants on September 3, 2013; and

3. The Council finds, and the demand study supports, that the public is receptive to application dispatch technology and such technology is capturing a growing share of the traditional taxicab and for-hire vehicle market, especially during periods of peak demand ; and

4. The Council finds, and the demand study supports, that some companies using application dispatch technology to offer transportation services in Seattle are unlicensed and affiliated with unlicensed for-hire drivers (unlicensed drivers) and vehicles 2 ; and

5. The Council finds that as the use of application dispatch technology by unlicensed companies, vehicles, and drivers raises significant public safety and consumer protection concerns; and

6. The Council finds that the use of application dispatch technology by unlicensed companies and drivers are competing with existing licensed taxicab and for-hire drivers in the transportation market and causing negative impacts; and

7. The Council finds that unlicensed drivers using application dispatch technology are providing trips as forhire drivers via a new type of for-hire vehicle because they are operating motor vehicles used for the transportation of passengers for compensation and these drivers are currently operating illegally without for-hire driver licenses or regulatory oversight; and

8. The Council finds that companies providing transportation services via application dispatch with unlicensed affiliated drivers are operating illegally without a license or regulatory oversight; and

9. The Council finds that there is no gratuitous purpose for offering and receiving transportation services, and unlicensed drivers and companies using application dispatch technology offer transportation services for compensation for the following nonexclusive reasons: the companies are registered for-profit corporations, drivers are recruited with promises to be paid, drivers intend to be paid, and passengers are paying for services rendered; and

10. The Council finds that the creation of a pilot program, establishing minimum operating requirements for unlicensed drivers and unlicensed companies using application dispatch technology is appropriate and necessary to protect the safety of the public; and

11. The Council finds a pilot program establishing transparency of rates prior to a passenger initiating a ride via application dispatch is appropriate and necessary for consumer protection; and

12. The Council finds that the creation of a pilot program regulating unlicensed companies and affiliated drivers using application dispatch technology will promote fair competition among other licensed transportation providers; and

13. The Council finds that the creation of a pilot program strikes a balance between safety and innovation, so that regulation provides a safety net that the public can rely on for its protection while new businesses innovate and use technology to better the lives of Washingtonians; and

14. The Council finds that the issuance of an additional 100 taxicab licenses per year for the years 2014 and 2015 as authorized by SMC 6.310.500(D) would promote fair competition and meet current and future demand for efficient and economical for-hire transportation services; and

15. The Council finds it necessary to review the pilot program to ensure it is fulfilling its purpose of promoting public safety, consumer protection and fair competition, so City Council will assess the benefits and any negative unintended consequences of the pilot program by no later than June 1, 2015. The review of the pilot program shall include an assessment of taxi industry trips and revenue, the percentage of taxi industry trips that are dispatched on any platform, the response times for any companies in the dispatch market, the locations of rejected rides by any companies in the dispatch market, the financial burdens of drivers across the different platforms, any available data about driver experiences and driver migrations across platforms, collisions, driver violations, rates, and customer satisfaction rates and complaints. If no further action is taken by City Council, the program will automatically continue; and

16. The Council finds that it has the authority to establish code to regulate for-hire vehicles as granted by Article 11, Section 11 of the Washington State Constitution and RCW 46.72.160.

Section 2. Section 6.310.100 of the Seattle Municipal Code, last amended by Ordinance 118341, is amended as follows:

6.310.100 Purpose(( . ))

A. Transportation network companies (TNC) provide application dispatch services (technology that allows consumers to directly request dispatch of for-hire drivers for trips via the internet using mobile interfaces such as smartphone applications,) to connect drivers with passengers for transportation services. While active on a TNC dispatch system, TNC drivers are for-hire drivers operating for-hire vehicles. The ordinance codified in this chapter is an exercise of The City of Seattle’s power to license for-hire vehicles, taxicabs, for-hire drivers (( and )) taxicab associations, and transportation network companies, and issue TNC vehicle endorsements , for regulations and revenue. Some of its regulatory purposes are to increase the safety, reliability, cost-effectiveness, and the economic viability and stability of privately-operated for-hire vehicle and taxicab services within The City of Seattle. This chapter is not intended to regulate limousines and is consistent and compliant with RCW Chapter 46.72A.

B. The Director may issue a moratorium suspending the issuance of TNC vehicle endorsements or TNC licenses upon finding that the continued issuance of TNC vehicle endorsements or TNC licenses threatens public safety or raises substantial consumer protection concerns. In making such a finding the Director shall consider, but is not limited to considering: consumer complaints, the stability of the market for taxi and for-hire transportation services, consumer demand for transportation services, and the financial viability of transportation service providers. Where the issuance of TNC vehicle endorsements or TNC licenses has been suspended pursuant to this subsection, the suspension shall last no more than 180 days. At least 30 days in advance of issuing a moratorium, the Director shall notify the Council in writing of the intent to do so and the reasons for doing so.

C. Within 60 days of the effective date of this ordinance, and within every 60 days thereafter through June 30, 2016, the Director shall report to chair of the Taxi, For-hire, and Limousine Regulations Committee of the Seattle City Council on the response, behavior, and experience of the different segments of the for-hire market.

D. If, upon review of the market for for-hire transportation, the Director finds that it is in the public interest that the cap on the number of TNC-endorsed vehicles that may be concurrently active on a TNC system should be adjusted or removed, the Director will submit the findings to the Council in writing and seek legislative authority to change or remove the cap.

Section 3. Section 6.310.110 of the Seattle Municipal Code, last amended by Ordinance 123361, is amended as follows:

6.310.110 Definitions(( . ))

For the purposes of this chapter and unless the context plainly requires otherwise, the following definitions apply:

"Active on the TNC dispatch system" includes but is not limited to: when the driver is logged onto the transportation network company (TNC) application dispatch system showing that the driver is available to pick up passengers; when a passenger is in the vehicle; when TNC dispatch records show the vehicle is dispatched; or when the driver has accepted a dispatch and is enroute to provide transportation services to a passenger.

(( A. )) "Affected licensee" means any licensee that may incur some penalty as a result of a violation. For example, if a for-hire driver of a taxicab commits a violation, the for-hire driver, the taxicab owner, and the taxicab association with which that taxicab is associated are all affected licensees.

(( B. )) "Affiliated taxicab" means a taxicab licensed to operate within a particular taxicab association.

"Application dispatch" means technology that allows consumers to directly request dispatch of for-hire drivers for trips via the internet using mobile interfaces such as smartphone applications.

(( C. )) "Approved mechanic" means a mechanic on a list maintained by the Director. The list shall contain the name of each mechanic that has applied to the Director for inclusion and who (1) has met all requirements of the National Institute for Automotive Service Excellence, (2) has been awarded a Certificate in Evidence of Competence satisfactory to the Director, (3) does not own, lease or drive a taxicab or for-hire vehicle, and (4) has no financial interest, including any employment interest, in any taxicab association, taxicab or for-hire vehicle or in any company that owns or leases taxicabs or for-hire vehicles.

"Business service contract" means a written contract between a for-hire driver or a for-hire driver’s representative and a business entity authorizing the for-hire driver to pick up passengers at the business entity’s place of business.

(( D. ))"Certificate of Safety" means a document from an approved mechanic certifying that a particular vehicle meets all vehicle safety standards set forth in this chapter and in regulations adopted pursuant to this chapter.

(( E. )) "Committed a violation" means that a licensee has been issued a Notice of Violation and either has not contested the violation or did contest the violation but lost.

(( F. )) "Community Development Financial Institution" means a non-profit loan fund certified by the Community Development Financial Institution Fund of the U.S. Department of the Treasury, that serves economically distressed communities and underserved populations by providing credit, capital and financial services that are normally unavailable from traditional financial institutions.

"Compensation" means remuneration or anything of economic value that is provided, promised, or donated primarily in exchange for services rendered. This includes, but is not limited to voluntary donations, fee-sharing between a taxicab association or transportation network company and an affiliated driver, advertisement of a taxicab association or transportation network company services, and increased patronage for taxicab association or transportation network company services.

(( G. )) "Contract rate" means the rate specified in a written contract signed by both parties before the dispatch of a taxicab or for-hire vehicle for the services identified in the contract. Contracts for package delivery may be made on an oral basis.

(( H. )) "Department" means the Department of Finance and Administrative Services of The City of Seattle, or any department that succeeds to the Department’s duties under this chapter.

(( I. )) "Director" means the Director of Finance and Administrative Services or the director of any successor department and the Director’s authorized designee.

(( J. )) "For-hire driver" means any person in physical control of a taxicab or for-hire vehicle, who is required to be licensed under this chapter. The term includes a lease driver, owner/operator, or employee , who drives taxicabs or for-hire vehicles , including vehicles dispatched by transportation network companies.

(( K. ))"For-hire vehicle" means any motor vehicle used for the transportation of passengers for compensation, except:

1. Taxicabs as defined in this chapter;

2. School buses operating exclusively under a contract to a school district;

3. Ride-sharing vehicles under Chapter 46.74 RCW;

4. Limousine carriers licensed under Chapter (( 81.90 )) 46.72A RCW;

5. Vehicles used by nonprofit transportation providers solely for elderly or handicapped persons and their attendants under Chapter 81.66 RCW;

6. Vehicles used by auto transportation companies licensed under Chapter 81.68 RCW;

7. Vehicles used to provide courtesy transportation at no charge to and from parking lots, hotels, and rental offices; and

8. Vehicles licensed under, and used to provide "charter party carrier" and "excursion service carrier" services as defined in, and required by, Chapter 81.70 RCW.

(( L. )) "Handicapped person" means any person who, by reason of illness, injury, age, congenital malfunction, or other permanent or temporary incapacity or disability, is unable without special facilities or special planning or design to use mass transportation facilities and services as efficiently as persons who are not so affected. Handicapped persons include ambulatory persons whose capacities are hindered by sensory disabilities such as blindness or deafness, such mental disabilities as mental retardation or emotional illness, and physical disabilities that still permit the person to walk comfortably, or a combination of these disabilities. It also includes a semiambulatory person who requires such special aids to travel as canes, crutches, walkers, respirators, or human assistance, and a nonambulatory person who must use wheelchairs or wheelchair-like equipment to travel.

(( M. )) "Knowingly permit" means (1) to know of an action or condition that violates this chapter or any regulation promulgated pursuant to this chapter, and (2) to fail to take reasonable steps to cure the violation and to prevent future violations. There is a rebuttable presumption that a person knows a fact, action or condition of which a reasonable person in the same position would have knowledge.

(( N. )) "Lease driver" means a for-hire driver who is an independent contractor/sole proprietor who has leased a taxicab or for-hire vehicle from a taxicab or for-hire vehicle licensee or taxicab association.

(( O. )) "Lender" means a bank, trust company, mutual savings bank, savings and loan association, or credit union authorized to do business and accept deposits in this state under state or federal law and includes a Community Development Financial Institution qualified and approved by the Director to provide loans to licensees under Section 6.310.380

(( P. )) "Lessor" means a licensee of a taxicab or for-hire vehicle who leases to a lease driver.

(( Q. )) "Licensee" means any person or entity licensed under this chapter, including for-hire drivers, taxicab or for-hire vehicle owners, (( and )) taxicab associations , and transportation network companies .

(( R. )) "Motor vehicle" means every motorized vehicle by or upon which any person may be transported or carried upon a public street, highway or alley; provided, that vehicles used exclusively upon stationary rail tracks or propelled by use of overhead electric wires are not considered motor vehicles for purposes of this chapter.

(( S. )) "Operating in The City of Seattle" means owning, leasing, advertising, driving, occupying and/or otherwise using a taxicab or for-hire vehicle that at any time transports any passenger or item for compensation from a point within the geographical confines of The City of Seattle. The vehicle is considered to be operating during the administering of inspections at the City’s inspection facility. The term does not include being in control of a vehicle that is physically inoperable. A taxicab association is "operating in The City of Seattle" if it represents or includes any taxicab that at any time transports any passenger or item for compensation from a point within the geographical confines of The City of Seattle. A transportation network company is "operating in The City of Seattle" if it provides application dispatch services to any affiliated driver at any time for the transport of any passenger for compensation from a point within the geographical confines of The City of Seattle.

(( T. )) "Owner" means the person whose lawful right of possession of a taxicab or forhire vehicle has most recently been recorded with the state Department of Motor Vehicles.

"Personal vehicle" means a vehicle that is not a taxicab or for-hire vehicle licensed under this chapter and that is not used for a commercial purpose. A personal vehicle that is used for TNC trips is a for-hire vehicle and subject to regulation under this chapter.

(( U. )) "Senior Citizen" means any person over the age of 60 with a valid identification confirming that person’s age.

(( V. )) "Special rate" means discounted rates for senior citizens and handicapped persons.

(( W. )) "Taxicab" means every motor vehicle:

1. That is held out to the public as providing transportation to passengers or articles for hire;

2. Where the route traveled or destination is controlled by the customer;

3. That carries signs or indicia of a taxicab, including the words "taxi," "taxicab," or "cab"; and

4. Where the fare is based on an amount recorded and indicated on a taximeter, or by a special contract rate permitted under this chapter. Despite the foregoing, "taxicab" does not include those vehicles listed in Section 6.310.110 J2-J8 or for-hire vehicles.

(( X. )) "Taxicab association" means a person or (( organization )) entity licensed under this chapter that represents or owns at least 15 taxicabs licensed by the City that use the same color scheme, trade name, and dispatch services. An individual person may be a taxicab association as long as that individual owns or represents at least 15 taxicabs and otherwise meets the requirements of this chapter; provided, that for taxicab associations formed in connection with the wheelchair accessible taxicab demonstration project provided for under this chapter, the Director may waive the requirement for such taxicab associations to have 15 licensed taxicabs and any taxicab association license fee for the duration of the demonstration project.

(( Y. )) "Taxicab association representative" means the person or persons that a taxicab association has authorized to:

1. File applications, special contract rates and charges on behalf of the taxicab association and individual owners in the taxicab association; and

2. Receive and accept all correspondence and notices from the City pertaining to the taxicab association, or to the taxicabs, taxicab owners and/or for-hire drivers operating within the taxicab association; and

3. Forward any correspondence, notices and/or legal process received by the association and intended for a taxicab owner and/or taxicab driver operating within the taxicab association.

(( Z. )) "Taximeter" means any instrument or device by which the charge for hire of a passenger carrying vehicle is measured or calculated either for the distance traveled by such vehicle or for waiting time, or for both, and upon which such calculated charges shall be indicated by means of figures.

"Trade dress" means the unique visual element associated with a transportation network company that is attached to a vehicle affiliated with a TNC so the public and passengers can identify the vehicle as being associated with that particular TNC. Trade dresses are not mandatory and must be approved by the Director.

"Transportation network company" (TNC) means a person or entity licensed under this chapter affiliated with TNC drivers that provides application dispatch services via one unique application dispatch system to connect TNC drivers with passengers for the transport of passengers for compensation and meeting the licensing requirements of Section 6.310.130 and any other requirements under this chapter.

"Transportation network company (TNC) driver" means a licensed for-hire driver affiliated with and accepting dispatched trips from a licensed transportation network company, while operating either a for-hire vehicle or taxicab licensed under this chapter ("TNC licensed driver") or a personal vehicle with a TNC vehicle endorsement ("TNC endorsed driver"). For purposes of this chapter, at any time while a driver is active on the TNC dispatch system, the driver is considered a TNC driver.

"Transportation network company (TNC) licensed driver" means a licensed for-hire driver affiliated with and accepting dispatched trips from a licensed transportation network company, while operating a for-hire vehicle or taxicab licensed under this chapter.

"Transportation network company (TNC) endorsed driver" means a licensed for-hire driver affiliated with and accepting dispatched trips from a licensed transportation network company, while operating a personal vehicle with a TNC vehicle endorsement.

"Transportation network company (TNC) representative" means the person or persons that a transportation network company has authorized to:

1. File applications, rates and charges on behalf of the TNC;

2. Receive and accept all correspondence and notices from the City pertaining to the TNC, or to affiliated drivers operating within the TNC; and

3. Forward any correspondence, notices and/or legal process received by the TNC and intended for an affiliated driver operating within the TNC.

"Transportation network company (TNC) vehicle endorsement" means an endorsement on a for-hire driver’s license for a personal vehicle that allows the for-hire driver to use the endorsed vehicle to affiliate with a transportation network company in order to provide transportation to passengers via an application dispatch system. The endorsement demonstrates that the vehicle has met the minimum operating requirements as set forth in Sections 6.310.325 and 6.310.327.

(( AA. )) "Wheelchair accessible taxicab" or "Wheelchair accessible for-hire vehicle" means a taxicab or for-hire vehicle designed or modified to transport passengers in wheelchairs or other mobility devices and conforming to the requirements of the Americans with Disabilities Act (ADA), and inspected and approved by the Director.

Section 4. Section 6.310.120 of the Seattle Municipal Code, last amended by Ordinance 118341, is amended as follows:

6.310.120 Scope(( . ))

This chapter applies to all taxicab associations, all transportation network companies, all taxicabs, all forhire vehicles and all for-hire drivers operating (( within )) in The City of Seattle. This chapter is not intended to be a part of the New License Code, Chapter 6.202 et seq.

Section 5. Section 6.310.125 of the Seattle Municipal Code, last amended by Ordinance 121738, is amended as follows:

6.310.125 Violation classifications(( . ))

A. Requirements contained within this chapter shall specify violation classifications in parentheses for the purpose of assessing monetary penalties and penalty points. General provisions for penalty enforcement are set forth in (( SMC )) Sections 6.310.600, 6.310.605, 6.310.610, and 6.310.635. Monetary penalties and penalty points for each violation classification are specifically set forth in (( SMC )) Section 6.310.605.

B. Violation classifications are as follows:

1. Class A violations of administrative or nonsafety requirements.

2. Class B violations of safety requirements.

3. Class C other serious violations.

4. Suspensions, revocations, and denials of licenses or TNC vehicle endorsements are imposed when taxicab associations, transportation network companies, taxicab licensees, or for-hire drivers fail to comply with licensing or endorsement requirements pursuant to this chapter, or there is an immediate safety concern with the taxicab or for-hire vehicle .

Section 6. Section 6.310.130 of the Seattle Municipal Code, last amended by Ordinance 119872, is amended as follows:

6.310.130 Licenses required(( . ))

A. It is unlawful to own, lease, drive or otherwise operate within The City of Seattle any taxicab or for-hire vehicle , not affiliated with and dispatched by a licensed transportation network company, within the scope of this chapter, unless:

1. The for-hire driver has a valid license issued under this chapter;

2. The for-hire vehicle or taxicab has a valid license issued under this chapter.

3. If the vehicle is a taxicab, the taxicab is affiliated with a taxicab association licensed under this chapter;

4. The for-hire driver that operates a taxicab is affiliated with a taxicab association licensed under this chapter.

B. It is unlawful to operate within The City of Seattle as a transportation network company (TNC) driver, unless:

1. The driver has a valid for-hire driver’s license issued under this chapter;

2. The vehicle is either:

a. A personal vehicle with a TNC vehicle endorsement, or

b. A for-hire vehicle or taxicab licensed under this chapter; and

3. The driver is affiliated with a TNC licensed under this chapter.

(( B. )) C . It is unlawful to operate a taxicab association within (( t )) T he City of Seattle without a valid license issued pursuant to this chapter.

D. It is unlawful to operate as a transportation network company within The City of Seattle without a valid license issued under this chapter .

E. It is unlawful to operate an application dispatch system within The City of Seattle unless:

1. The person or entity is a licensed transportation network company; or

2. The person or entity uses the application dispatch system exclusively for taxicabs and/or for-hire vehicles licensed under this chapter, using rates consistent with Section 6.310.530.

(( C. )) F . The regulatory licenses issued to for-hire drivers, for-hire vehicles, taxicabs, (( and )) taxicab associations , and transportation network companies under this chapter shall be suspended by the Director if the for-hire driver, for-hire vehicle, taxicab, (( or )) taxicab association , or transportation network company does not maintain a required current business license issued by The City of Seattle.

Section 7. Section 6.310.150 of the Seattle Municipal Code, last amended by Ordinance 123472, is amended as follows:

6.310.150 Fees(( . ))

***

C. For-hire driver license:

Annual fee . . . . $50

Add/change affiliation*(( ** )) . . . . $20

Late fee . . . . $15

ID photo . . . . $5

Fingerprinting . . . . Charge as determined by Director to cover costs

Replacement license . . . . $5

Training class fee . . . . As determined by Director

*(( ** )) For-hire drivers may only be affiliated with a combined maximum of three taxicab associations or transportation network companies at any given time. This fee is only charged when the driver is affiliated with three taxicab associations or transportation network companies and now wants to delete one association or company and add another.

D. Transportation Network Company (TNC) Vehicle Endorsement for For-Hire Driver’s License:

Annual vehicle endorsement fee...$50

Change affiliation....$20

Change vehicle....$20

Change vehicle license plate...$10

Late fee . . . . $15

ID photo . . . . $5

Fingerprinting . . . . Charge as determined by Director to cover costs

Replacement license . . . . $5

Training class fee . . . . As determined by Director

E. Transportation network company:

Annual fee ....$50,000 for the first year; for the second year and thereafter, either .35% of annual gross revenue or $50,000, whichever is greater.

Section 8. Section 6.310.200, which was last amended by Ordinance 118341, is amended as follows:

(( SMC ))6.310.200 Taxicab association (( -)) (( L ))icense application(( . ))

A. Any business or individual desiring to operate as a taxicab association within The City of Seattle shall file with the Director a signed and notarized taxicab association application, on forms approved by the Director. The application shall include the following information:

***

(( 4. A brief description of the uniform the applicant taxicab association proposes to require for drivers of affiliated taxicabs, which shall include full length pants (hemmed slack material), collared shirt, and shoes. The uniform may include the option to wear shorts in the summer, provided that the shorts extend no higher than two inches (2") above the kneecap and are of a similar color and pattern to the uniform full-length pants. Further, the uniform may be modified in individual cases as necessary to (1) avoid interfering with the for-hire driver’s religious beliefs, and/or (2) accommodate the for-hire driver’s disability or disabilities; ))

(( 5 )) 4 . The name, address, phone number and date of birth of the taxicab association representative;

(( 6 )) 5 . The taxicab number (assigned by the City/County) and the name of each taxicab vehicle owner that will be affiliated with the taxicab association;

(( 7 )) 6 . The special and/or contract rates that will be charged by taxicabs affiliated with the taxicab association; and

(( 8 )) 7 . Any other information required by regulations adopted pursuant to this chapter.

(( 9 )) 8 . The above application and information must be completed for each annual license renewal.

***

Section 9. A new Section 6.310.260 to Seattle Municipal Code is adopted, as follows:

6.310.260 Transportation network company license eligibility and application

A. Any business or individual desiring to operate as a transportation network company within The City of Seattle shall file with the Director a signed and notarized transportation network company license application on forms provided by the Director.

1. To be eligible for a license, the transportation network company is limited to providing application dispatch services to transportation network company drivers meeting the requirements set forth in Section 6.310.452; further, no TNC licensed by the City of Seattle shall own or be owned or controlled, in whole or in part, by any other TNC licensed by the City of Seattle, or be owned or controlled in whole or in part by any party or entity owning or controlling, in whole or in part, another TNC licensed by the City of Seattle.

2. The license application shall include the following information:

a. The applicant transportation network company’s name, business street address and post office box address (if any), business facsimile number, business phone number and business email address where the transportation network company representative can generally be reached between 9 a.m. and 5 p.m. on all nonholiday weekdays;

b. The form of business entity under which the association will operate (e.g. corporation, partnership, cooperative association);

i. If the applicant transportation network company is individually owned, the name, business address (or home address if no business address), telephone number and date of birth of the owner, or

ii. If the applicant transportation network company is a corporation, partnership or other business entity, the names, home and business addresses, telephone numbers, and date of birth of all officers, directors, general and managing partners, registered agents, and of all other persons vested with authority to manage or direct the affairs of the legal entity or to bind the legal entity in dealings with third parties, and the entity’s true legal name, state of incorporation or registration with the Secretary of State of the State of Washington (if any) and State of Washington business license number, and any other information that the Director may reasonably require;

c. Verification that applicant uses only one application dispatch system, as approved by the Director;

d. The trade dress the applicant transportation network company proposes to use, if any, for each affiliated driver’s vehicle, with a photo of the trade dress submitted with the application. The trade dress may be placed on the vehicle body, but not on the roof or covering any windows, vehicle lights, or obscuring the view of any mirrors, and cannot exceed four square feet;

e. The name, address, phone number and date of birth of the transportation network company representative;

f. The for-hire driver license number with TNC vehicle endorsement (if applicable), vehicle make, model, and year, and the name of each transportation network company driver affiliated with the transportation network company;

g. Evidence that each vehicle affiliated with a transportation network company has insurance in an amount no less than required by RCW 46.72.050 and underinsured motorist coverage indicating a minimum coverage of $100,000 per person, and $300,000 per accident, at any time while active on the TNC dispatch system. The Director may require a statement on Department of Licensing letterhead verifying that the policy meets state requirements. In addition, the Director shall review the insurance policies to determine that the adequately protect the public. The insurance policy or insurance binder must be submitted to the Director and shall:

i. Be issued by an admitted carrier in the State of Washington with an A.M. Best Rating of not less than B+ VII; provided however, that the Director may temporarily suspend any or all of these requirements if no other viable insurance options are available to the industry,

ii. Name The City of Seattle as an additional insured,

iii. Provide that the insurer will notify the Director, in writing, of any cancellation and/or nonrenewal at least 30 days before that cancellation and/or nonrenewal takes effect, and

iv. Not include self-insured retention, nonstandard deductibles, aggregate limits, territorial restrictions, named driver requirements or exclusions, or any other provisions that limit insurance coverage.

h. State of Washington vehicle registration for each vehicle affiliated with the transportation network company.

i. Certificate of 19-point inspection for each vehicle affiliated with the transportation network company as required in Section 6.310.270(X).

j. Dispatch records identifying the average and minimum and maximum number of drivers and number of dispatches on the TNC dispatch system per day for the six months prior to the date of application. TNCs that were not operating in Seattle prior to the effective date of this ordinance do not need to provide these records. Under the City’s authority to regulate the safety, reliability, costeffectiveness, and economic viability and stability of privately-operated for-hire vehicle and taxicab services within The City of Seattle, this information shall only be used by the Director for purposes of determining eligibility and to assist in drafting the pilot program assessment report for review by Council.

k. Any other information required by regulations adopted pursuant to this chapter.

l. The above application and information must be completed for each annual license renewal.

B. All applications submitted to the Director must be accompanied by the license fee set forth in Section 6.310.150.

C. The transportation network company applicant or licensee must inform the Director in writing within seven days if any of the information provided pursuant to Section 6.310.260.A changes, ceases to be true or is superseded in any way by new information.

D. A transportation network company license is valid for no more than one year. No transportation network company license may be renewed unless the renewal fee has been paid and all outstanding penalties assessed against the transportation network company and its affiliated drivers have been paid to the Director. The Director shall not renew the transportation network company license unless the Director determines that the transportation network company’s continued operation is in the public interest. All denials of renewal applications must be set forth in writing, together with the reasons for denial. The written denial shall be delivered either personally or by first class mail to the address provided by the applicant on the license renewal application.

Section 10. A new Section 6.310.265 to Seattle Municipal Code is adopted, as follows:

6.310.265 Transportation network company (TNC) standards for license application or renewal denial

A. The operation of a TNC is a privilege, not a right. The TNC’s ability to satisfy stated criteria for a TNC license does not create a right to a TNC license.

B. The Director shall deny any TNC license application if the Director determines that:

1. The applicant fails to submit proof of insurance as required by Section

6.310.260.

2. The applicant provides application dispatch services to anyone other than TNC drivers meeting the requirements set forth in Section 6.310.452;

3. The applicant uses more than one application dispatch system;

4. The applicant leases, permits, or otherwise allows others to use its application dispatch system;

5. The applicant affiliates with and provides application dispatch services to drivers without a for-hire vehicle driver’s license;

6. The applicant affiliates with and provides application dispatch services to drivers operating vehicles without a for-hire vehicle or taxicab license, or a vehicle without a TNC vehicle endorsement.

7. The application has a material misstatement or omission;

8. The application is incomplete; and/or

9. Within three years of the date of application, the applicant, or any owner, officer, director, managing partner, general partner or principal of the applicant, has had a bail forfeiture, conviction or other final adverse finding for crimes of fraud, theft, larceny, extortion, embezzlement, racketeering, Uniform Controlled Substances Act, prostitution, alcohol and/or narcotics where the commission of such crime(s) involved a TNC, vehicle affiliated with a TNC, or TNC driver.

C. The Director may deny any TNC license application if the Director determines that, within five years of the date of application, the TNC applicant, or if the TNC applicant is a business entity, any officer, director, managing partner, general partner, registered agent or principal of the TNC:

1. Within five years of the date of application, has had a bail forfeiture, conviction or other final adverse finding involving crimes directly related to the applicant’s ability to operate a TNC, including but not limited to prostitution, gambling, fraud, larceny, extortion, income tax evasion; and/or

2. Has exhibited past conduct, as evidenced by a criminal conviction, bail forfeiture or other final adverse finding (including in a civil suit or administrative proceeding) in operating a TNC, business or vehicle that would lead the Director to reasonably conclude that the applicant will not fulfill the TNC responsibilities and requirements set forth in this chapter.

3. Has failed to meet one or more operating responsibilities as detailed in Section 6.310.270.

Section 11. A new Section 6.310.270 to Seattle Municipal Code is adopted, as follows:

6.310.270 Transportation network company (TNC) operating responsibilities

In addition to meeting the license application requirements set forth in Section 6.310.260, the TNC must:

A. Maintain a business office in The City of Seattle that:

1. Is open and personally staffed all business days between 9 a.m. and 5 p.m. (Class A);

2. Has a toll-free business telephone number and toll-free passenger complaint hotline that is answered during all hours that TNC drivers are operating. (Class A);

3. Has a mailing address and email address where the TNC representative will accept mail. (Class A);

4. Stores all records that this chapter requires the TNC to maintain including, but not limited to, copies of for-hire drivers licenses and TNC vehicle endorsements (if applicable) of TNC drivers, lists of all TNC drivers and their affiliated vehicles, vehicle repair and service records, passenger comment records, new driver training records, vehicle insurance policies, vehicle registrations, and passenger complaint records. Records may be maintained electronically. (Class A --each requirement);

5. Provides secure storage for all items left in a TNC driver’s vehicle by patrons and turned in by TNC drivers. (Class A);

B. Ensure that only 150 TNC endorsed drivers may be active on the TNC dispatch system at any given time. The data and records required to ensure compliance shall be prescribed by rules adopted by the Director; (revocation and Class C)

Ensure that each TNC driver’s vehicle is insured as required in Sections 6.310.260 and 6.310.452. (revocation and Class C);

C. Ensure that each affiliated vehicle maintains the TNC’s dress trade, if any, at all times while active on the TNC dispatch system. (Class B);

D. Ensure that TNC drivers do not accept payment of fare or tips. Payment shall only be made electronically via the TNC application dispatch system. (Class B);

E. Ensure that TNC endorsed drivers driving a TNC endorsed vehicle do not pick up hails, cruise or otherwise solicit trips. (revocation and Class C);

F. Ensure that TNC drivers driving a TNC endorsed vehicle do not take trips not dispatched by the TNC. (revocation and Class C);

G. Require that passengers be able to view a picture of the driver and vehicle license plate number on their smart phone, tablet or other mobile device used to connect with the TNC dispatch application before the trip is initiated. (Class B);

H. May maintain a rating platform for TNC drivers and passengers to rate each other following a trip. TNCs shall ensure that such ratings are not based on unlawful discrimination, and that drivers do not discriminate against passengers or potential passengers on the basis of geographic endpoints of the ride, race, color, national origin, religious belief or affiliation, sex, disability, age, or sexual orientation/identity. (Class B);

I. One year from the effective date of this ordinance, the TNC shall submit to the Director a report detailing all rides that were requested but not accepted by TNC drivers. The report shall include the location and zip code of each rejected ride. (Class A);

J. Maintain insurance as required by Section 6.310.260, (Class C and revocation) and maintain on file at the TNC’s place of business proof of insurance required by Sections 6.310.260 and 6.310.452. (Class A);

K. Send, by first class mail and email, to a TNC driver any correspondence from the Director within five business days after the TNC receives such correspondence and keeps a written record of the mailings (Class A);

L. All violation notices issued by the Director to a TNC driver shall be mailed and emailed to both the driver and TNC, and the TNC shall maintain a record of the violations for at least two years (Class B);

M. Weekly, collect, verify accuracy and completeness, and store for at least two years TNC application dispatch records, including the hours each TNC driver is active on the TNC dispatch system, as prescribed by the Director (Class A);

N. Collect and provide service information, vehicle collision reports, service response time reports, reports of crimes against TNC drivers, and passenger complaints, pursuant to rules adopted by the Director as follows:

1. Service Information Reports. Submit quarterly, in a form approved by the Director, the monthly total of paid trips, paid miles, trip revenue, and daily operating hours for each TNC driver and vehicle (Class A);

2. Vehicle Collision Reports. Submit monthly, on forms approved by the Director, a list of vehicle collisions required to be reported to the Washington State Patrol pursuant to RCW 46.52.030(1) and WAC 446.85-010 including the name of the TNC driver, identification of the vehicle, collision fault, injuries, and estimated damage (Class A);

3. Service Response Time Reports. Submit quarterly, on forms approved by the Director, average response times for service requests in the operating areas served by TNC drivers (Class A);

4. Crimes Against Affiliated Drivers Reports. Submit quarterly, on forms approved by the Director, a list of all crimes of assault or robbery against TNC drivers that were reported to the Seattle Police Department, including the name of the TNC driver and identification of the vehicle, incident number, description of the crime, and injuries (Class A), and

5. Passenger complaints. Submit quarterly, in a form approved by the Director, a report which contains information on complaints received directly from passengers and from the passenger complaint hotline as compiled from the log required pursuant to subsection 6.310.270.0 regarding:

a. Driver conduct sorted by driving behavior, communication, personal dress or hygiene;

b. Vehicle condition sorted by appearance, mechanical and/or safety; and

c. Lack of driver knowledge of route or requested destination (Class A).

O. Maintain a log of, and forward to the Director upon request, each oral or written passenger complaint that the TNC receives about a vehicle, the TNC, or TNC driver. The TNC must include a notice of the action taken by the TNC to resolve the complaint and the disposition (Class A);

P. Notify the Director within two working days of the TNC having knowledge of the following:

1. A conviction, bail forfeiture or other adverse finding received by a TNC driver for any criminal offense or traffic violation that occurs during or arises out of the driver’s operation of the vehicle while active on any TNC dispatch (Class A for traffic violation, Class B for any criminal offense),

2. A conviction, bail forfeiture or other adverse finding received by a TNC driver for any other criminal offense directly bearing on the driver’s fitness to operate a vehicle or the affiliated driver’s fitness to be licensed, including but not limited to theft, fraud, robbery, burglary, assault, sex crimes, alcohol, drugs, or prostitution (Class B),

3. A vehicle accident required to be reported to the State of Washington involving any TNC driver (Class B),

4. Any restriction, suspension or revocation of a State of Washington driver’s license issued to a TNC driver (Class B), and/or

5. Any matter listed in subsections 6.310.265.B.9 or 6.310.265.C (Class B);

Q. Notify the Director within five working days of any change in the affiliation status of a TNC driver or vehicle, including any TNC driver joining the TNC, and any suspension, termination, nonrenewal or revocation of a TNC driver’s access to the TNC dispatch application, for-hire license or TNC vehicle endorsement. (Class A);

R. Comply with all regulations promulgated pursuant to this chapter (see applicable rules for penalties or actions);

S. Permit the Director to carry out inspections without notice of all TNC driver and vehicle records required to be kept under this Chapter 6.310, (Class B);

T. Employ a zero tolerance drug and alcohol policy with respect to TNC drivers as follows:

1. The TNC shall include a notice on its website, mobile application, and passenger trip confirmations of its zero-tolerance policy and the methods to report a driver the passenger reasonably suspects was under the influence of drugs or alcohol during the trip;

2. The website and mobile application must include a phone number, website link, and email to report a zerotolerance complaint, as well as the phone number and email to report a zero-tolerance complaint to the Seattle Consumer Affairs department, (Class B);

U. Allow passengers to indicate whether they require a wheelchair-accessible vehicle or a vehicle otherwise accessible to individuals with disabilities. On January 1, 2015 and biannually on June 1 and January 1 thereafter, each TNC shall submit to the Director a report detailing the number and percentage of their customers who requested accessible vehicles, and how often the TNC was able to comply with requests for accessible vehicles, and a description of any instances or complaints of unfair treatment or discrimination of persons with disabilities. This report shall be made public by the Director. This report shall be used by the Director to determine what, if any, regulations need to be amended or adopted to ensure that TNCs are accessible to, and do not discriminate against persons with disabilities, (Class B),

V. Review criminal background checks on every TNC driver and maintain records thereof. Drivers convicted of any traffic and/or criminal offense directly bearing on the driver’s fitness including but not limited to theft, fraud, robbery, burglary, assault, sex crimes, alcohol, drugs, or prostitution shall not be permitted to provide TNC services. (Class B)

W. Review driving records of TNC drivers and maintain records thereof. Drivers with convictions for any alcohol or drug related offense, reckless driving, hit and run, or driving with a suspended or revoked license shall not be permitted to provide TNC services. (Class B)

X. Prior to providing TNC services and annually thereafter, require every affiliated vehicle to undergo a 19point inspection by a third party vendor approved by the Director that certifies in writing that the following items are mechanically sound and fit for driving: (revocation and Class C)

1. Foot brakes (check stopping: at 20 mph, a vehicle must be capable of stopping within 25 feet);

2. Emergency brakes (engine stall test);

3. Steering mechanism;

4. Windshield (no chips or cracks larger than one inch);

5. Rear window and other glass (no chips or cracks larger than one inch);

6. Windshield wipers;

7. Headlights;

8. Tail lights;

9. Turn indicator lights;

10. Stop lights;

11. Front seat adjustment mechanism;

12. Doors (open, close, lock);

13. Horn;

14. Speedometer;

15. Bumpers;

16. Muffler and exhaust system;

17. Condition of tires, including tread depth;

18. Interior and exterior rear view mirrors; and

19. Safety belts and air bags for driver and passenger(s).

Affiliated vehicles shall not be rebuilt or significantly modified from factory specifications. Transportation network companies shall maintain vehicle inspection records.

Y. Pay all penalties imposed by the Department that are either not contested or are upheld after review (revocation of license);

Z. Determine whether a TNC driver, who has been the victim of a crime of assault or robbery, has reported the crime to 911. If not, the TNC shall call 911 and report the crime immediately (Class B).

AA. Maintain a TNC license to operate in The City of Seattle as issued under this chapter (revocation and Class C).

BB. To the extent that the TNC’s insurance coverage is insufficient to satisfy the requirements of SMC 6.310.260.A.2.g, the TNC itself shall assume liability, including the costs of defense and indemnification, for a TNC driver’s claim(s) in an amount up to the minimum insurance coverage requirements per RCW 46.72.050 and minimum underinsured motorist coverage of $100,000 per person and $300,000 per accident. (Class B and 14 day suspension.).

CC. TNCs shall provide a written insurance disclosure to TNC drivers. The written insurance disclosure must include the following language: "[insert full corporate name and designation of TNC] confirms, in accordance with SMC 6.310.260.A.2.g, that while driver [insert driver’s full name] is active on its TNC dispatch system as defined by SMC 6.310.110, the driver’s vehicle is insured as required by RCW 46.72.050 and SMC 6.310.260.BB." This disclosure to be signed by the driver and an officer of the TNC. No additional language in the disclosure will contradict or in any way diminish the force of the required language. (Class B.)

Section 12. A new Section 6.310.275 to Seattle Municipal Code is adopted, as follows:

6.310.275 Transportation network company (TNC) transfers in the interest of a transportation network company

A TNC license is not transferable. However, an interest in a business entity holding a TNC license may be transferred, but only after the new owner or principal has submitted an application, met the standards and requirements contained in Sections 6.310.260 and 6.310.265 and secured written approval of the Director.

Section 13. A new Section 6.310.325 is added to the Seattle Municipal Code as follows:

6.310.325 Vehicles affiliated with a transportation network company (TNC) vehicle operating requirements

No vehicle affiliated with a TNC shall operate within The City of Seattle to transport passengers for compensation unless the following minimum vehicle requirements are met:

A. The vehicle is a taxicab or for-hire vehicle licensed under this chapter, or the vehicle has a TNC vehicle endorsement.

B. Affiliated with a licensed transportation network company;

C. Affiliated with a driver with a for-hire driver’s license;

D. The vehicle has insurance coverage as required by section 6.310.260;

E. Passed the 19-point vehicle inspection as required by subsection 6.310.270.X; except for for-hire vehicles and taxicabs licensed under this chapter; and

F. The vehicle model year can be no more than seven years prior to the license date.

Section 14. A new Section 6.310.327 is added to the Seattle Municipal Code as follows:

6.310.327 Transportation network company (TNC) vehicle endorsement eligibility and application

A. Within 45 days of the passage date of this ordinance, any person who wishes to affiliate and operate for a TNC using a personal vehicle shall submit an application for a TNC vehicle endorsement, and shall obtain a TNC vehicle endorsement within 90 days of submitting the applications; provided that a person with a for-hire driver’s license who has any ownership interest in a licensed for-hire vehicle or taxicab is not eligible to obtain a TNC vehicle endorsement. Failure to obtain a TNC vehicle endorsement within this timeframe, for any reason other than delay caused by the City, prohibits any person from lawfully operating as a driver for a TNC with a personal vehicle. Driving without a TNC vehicle endorsement is unlawful per Section 6.310.130, subject to penalties pursuant to Section 6.310.600.

B. The TNC vehicle endorsement is not valid and effective until and unless the driver obtains a for-hire driver’s license under this chapter. The for-hire driver’s application process is governed by Section 6.310.400.

C. To be eligible to apply for a TNC vehicle endorsement the following is required:

1. The registered owner is the only driver that may operate the vehicle to provide transportation to passengers via the TNC application dispatch system;

2. The applicant does not have any ownership interest in a licensed for-hire vehicle or taxicab licensed; (denial of endorsement) and

3. The vehicle is personal and not a for-hire vehicle or taxicab licensed under this chapter. (denial of endorsement)

D. To apply for the TNC vehicle endorsement, the applicant shall complete, sign, swear to and file with the Director a TNC vehicle endorsement application on forms provided by the Director to include the following information:

1. Name, aliases, residence and business address, residence and business telephone numbers;

2. Place and date of birth which shall be at least 21 years prior to the date of application, height, weight, color of hair and eyes;

3. Washington State driver’s license number. Providing the social security number is optional. The applicant must present his/her Washington State driver’s license at time of application;

4. Proof that the applicant is authorized to work in the United States;

5. Evidence of personal and commercial vehicle insurance as required by Section 6.310.452; (denial of endorsement)

6. Evidence of for-hire driver’s license; (denial of endorsement)

7. Proof that applicant’s vehicle has passed the vehicle inspection as required by subsection 6.310.270.X (denial of endorsement); and

8. Proof that applicant’s vehicle model year is no more than seven years prior to the license date. (denial of endorsement)

9. Such other information as may be reasonably required by regulation promulgated under this chapter.

10. The above application and information must also be completed and supplied during any annual license renewal.

Failure to meet any of these requirements within this timeframe, for any reason other than delay caused by the City, shall result in the denial of the issuance of the TNC vehicle endorsement. All denials or revocations of TNC vehicle endorsement applications must be set forth in writing, together with the reasons for denial or revocation. The written denial shall be delivered either personally or by first class mail to the address provided by the applicant on the license renewal application.

E. The TNC vehicle endorsement consists of a certificate that shall include the following information:

1. Vehicle identification number (VIN);

2. Registered owner’s full legal name;

3. License plate number;

4. Expiration date; and

5. Unique certificate number that will correspond with the TNC vehicle endorsement sticker affixed to the forhire driver’s license.

F. The TNC vehicle endorsement is inseparable from the for-hire driver’s license and the lease, transfer or assignment of the vehicle endorsement is prohibited.

Section 15. A new Section 6.310.328 is added to the Seattle Municipal Code as follows:

6.310.328 Transportation network company (TNC) vehicle endorsement standards for denial

A. The Director shall deny any TNC vehicle endorsement application if the Director determines that:

1. The applicant has failed to submit a complete, satisfactory application pursuant to SMC Section 6.310.327;

2. The applicant has failed to affiliate with a licensed TNC;

3. The applicant has made any material misstatement or omission in the application for an endorsement;

4. The applicant fails to meet one or more of the applicant or vehicle requirements pursuant to Sections 6.310.325 and 6.310.327; and/or

5. Within three years of the date of application, the applicant has had a conviction, bail forfeiture or other final adverse finding of criminal fraud, larceny, theft, prostitution, extortion, racketeering, robbery, or violation of the Uniform Controlled Substances Act where such crime involved the use of the endorsed vehicle.

B. The Director may deny any TNC vehicle endorsement application if the Director determines that:

1. Within five years of the date of application, the applicant has had a conviction, bail forfeiture, or other final adverse finding involving crimes reasonably related to the applicant’s ability to operate a for-hire business, including but not limited to prostitution, gambling, fraud, larceny, extortion, income tax evasion;

2. Within two years of the date of application, the applicant has been found, either through a criminal conviction, bail forfeiture or other final adverse finding (including in a civil suit or administrative proceeding) to have exhibited past conduct in driving or operating a for-hire vehicle for-hire business which would lead the Director to reasonably conclude that the applicant will not comply with the provisions of the chapter related to vehicle requirements and the safe operation of the vehicle;

3. Within two years of the date of application, the applicant has engaged in the business of operating any taxicab or for-hire vehicle within The City of Seattle without a current valid license from The City of Seattle;

4. Within twelve months of the date of application, the applicant has violated King County or Port of Seattle ordinance or regulation pertaining to the operation of taxicabs while in those jurisdictions, if such violation would constitute grounds for license revocation or denial if occurring within the City; and/or

5. Within twelve months of the date of application, the applicant has had its City of Seattle for-hire vehicle license revoked.

Section 16. A new Section 6.310.329 is added to the Seattle Municipal Code as follows:

6.310.329 TNC vehicle endorsement expiration and renewal

A. All TNC vehicle endorsement shall be effective for no more than one year and shall expire the same day as the forhire driver’s license it endorses.

B. TNC driver must renew the TNC vehicle endorsement every year. No TNC vehicle endorsement may be renewed unless all outstanding penalties assessed against the for-hire driver of the endorsed vehicle are paid in full to the Director.

C. The Director shall grant all timely submitted and completed renewal applications of qualified TNC drivers; provided, however, that the Director shall deny any renewal application if grounds exist for the Director to deny an endorsement pursuant to Section 6.310.327 or Section 6.310.329 A. If no such grounds exist, the Director shall examine all Department records on the endorsed vehicle and may deny the renewal if grounds exist that would justify denial under Section 6.310.329 B.

Section 17. Section 6.310.330 of the Seattle Municipal Code, last amended by Ordinance 124256, is amended as follows:

6.310.330 Taxicab licensee and for-hire vehicle licensee responsibilities(( . ))

***

E. The taxicab or for-hire vehicle licensee must maintain daily trip sheet records, in accordance with SMC Section 6.310.460.F, and complaint logs, as prescribed by the Director by rule for all licensed vehicles. A taxicab licensee must insure that all original daily trip sheets are given to the taxicab association representative at least weekly. The forhire vehicle licensee must keep daily trip sheets and complaint logs for a minimum of two (2) years. The for-hire vehicle licensee must provide to the Director, through their association representative, quarterly the following information compiled from the daily trip sheets:

1. Number of service requests (trips) during the last quarter;

2. Average operating hours per week per vehicle for the last quarter;

3. Number of complaints received regarding:

a. Driver conduct categorized by driving behavior, communication, personal dress or hygiene,

b. Vehicle condition categorized by appearance, mechanical and/or safety,

c. Service response, (( and ))

d. Lack of driver knowledge including incorrect route or no knowledge of destination requested

4. Total fare revenue during last quarter;

5. Average service response time per month; and

(( 4. )) 6. All complaints received regarding either the for-hire driver or the taxicab or for-hire vehicle, where such complaint involves an alleged violation of this chapter, including a note of the action taken to resolve the complaint and the disposition, if known (all violations within subsection E are Class A).

***

K. A wheelchair accessible taxicab licensee must personally drive the vehicle a minimum of thirty hours per week for at least forty weeks per year for a period of three years following the date of issuance of a new wheelchair taxicab license (wheelchair taxicab license revocation). If a licensee fails to fulfill the minimum use requirement in any one year period within the three year period following the date of issuance, the license shall be subject to revocation. Wheelchair taxicab licensees shall submit original trip sheets to the Director on a monthly basis, in a manner prescribed by Director’s rule, to prove compliance with the minimum use requirement. For purposes of this paragraph, "licensee" or "licensees" refers to individual licensees, single soleshareholders of a licensed corporation, or single members of a licensed limited liability company. This subsection shall take effect and be in force retroactively as of the effective date of this ordinance. (Class A, if trip sheets are submitted late; wheelchair taxicab license revocation, if trip sheets are falsified or not in compliance).

***

N. After December 31, 2007, new taxicab licenses shall be issued to single individuals only, and no corporation, limited liability company, or partnership shall obtain any license held by an individual until the expiration of a period of five (( (5) )) years following the original date of issuance to the individual licensee currently holding the license; (( provided, however )) except that throughout subsection 6.310.330.N, wheelchair accessible taxicab licenses, provided they were not issued for 2006-2008 demonstration projects, are not transferable until the expiration of a period of three years following the original date of issuance, provided further, however , that new taxicab licenses may be issued to and be held by the following business entities:

1. Corporations held by a single shareholder provided that the taxicab must be personally operated by the single shareholder for a period of five years from the date of issuance of the license and the ownership of the shares of the corporation cannot be changed within the five-year period. Any change of ownership of shares of the corporation shall result in revocation of the license.

2. Limited liability companies comprised of a single member provided that the taxicab must be personally operated by the single member for a period of five years from the date of issuance of the license and no change of membership may take place within the five-year period. Any change of membership of the limited liability company shall result in revocation of the license.

For a period of five (( (5) )) years following the date of issuance of a new taxicab license, all new taxicab licensees must personally drive the taxicab for a minimum use requirement of (( thirty (30) )) 30 hours per week for a minimum of (( forty (40) )) forty weeks per year (taxicab license revocation). If a licensee fails to fulfill the minimum use requirement in any one year period within the five year period following the date of issuance, the license shall be subject to revocation. Taxicab licensees shall submit original trip sheets to the Director on a monthly basis, in a manner prescribed by Director’s rule, to prove compliance with the minimum use requirement. For purposes of this paragraph, "licensee" or "licensees" refers to individual licensees, single sole-shareholders of a licensed corporation, or single members of a licensed limited liability company. (Class A, if trip sheets are submitted late; taxicab license revocation, if trip sheets are falsified or not in compliance).

3. At the time of the transfer of any taxicab license occurring after August 1, 2008, the transferor(s) and transferee(s) of the license shall report to the Director the amount of consideration, if any, paid by the transferee to the transferor in exchange for the transfer of the license. The amount of consideration shall be reported in a manner determined by rule promulgated by the Director. The failure to report, or the reporting of false information, shall be grounds for suspension or revocation of the license. In creating and maintaining records of the amount of consideration paid, the Director shall not identify the transferees and transferors, nor shall the Director require the submission of any records that identify the transferees and transferors.

4. The Director shall conduct a survey of taxicab licensees to determine the market value of taxicab license transfers that have occurred from January 1, 1991 through August 1, 2008. All licensees shall respond in good faith to the survey to provide accurate information to the extent reasonably possible (Class A). Responses to the survey shall be made in such manner determined by (( rue )) rule promulgated by the Director. In creating and maintaining records of the amount of consideration paid, the Director shall not identify the transferees and transferors, nor shall the Director require the submission of any records that identify the transferees and transferors.

5. This subsection shall take effect and be in force retroactively as of the effective date of this ordinance.

***

Section 18. Section 6.310.340 of the Seattle Municipal Code, last amended by Ordinance 122763, is amended as follows:

6.310.340 Taxicab and for-hire vehicle---(( L )) l icense transfer(( . ))

A for-hire vehicle or taxicab license may be transferred subject to the following restrictions and/or conditions:

A. New taxicab licenses issued after December 31, 2007 are not transferable for a period of five ((( 5 ))) years from the original date of issuance(( . )) , except that wheelchair accessible taxicab licenses, provided they were not issued for 2006-2008 demonstration projects, are not transferable for a period of three years from the original date of issuance. This subsection shall take effect and be in force retroactively as of the effective date of this ordinance.

***

Section 19. Section 6.310.415 of the Seattle Municipal Code, last amended by Ordinance 121738, is amended as follows:

(( SMC )) 6.310.415 For-hire driver training program(( . ))

A. All initial for-hire driver applicants , within 120 days of submitting an application, must have successfully completed (( , prior to taking the written examination, no earlier than six (6) months before submitting the application, )) a training program approved by the Director that provides information about (( the history and geography of the Seattle and Puget Sound area, )) defensive driving, use of emergency procedures and equipment for the driver’s personal safety, risk factors for crimes against for-hire drivers, enhancement of driver/passenger relations, and (( appearance and )) professional conduct and communication skills. The oral examination may be taken prior to the training class to expedite the licensing process (denial of license).

B. Currently-licensed for-hire drivers must meet the requirements of subsection A of this section if:

1. A taxicab association or transportation network company with which the for-hire driver is affiliated requests that the for-hire driver receive a refresher course; or

2. The Director has reasonable grounds, based on documented complaints and/or violations, to believe that a refresher course is necessary (suspension).

( (C. A for-hire driver must complete a separate training session and written test on for-hire driver personal safety within three (3) months from the date of issuance of the initial license. The Director shall set forth the requirements of the training program by rule (suspension). ))

((D )) C . A for-hire driver who operates a wheelchair accessible taxicab must successfully complete a separate training program for the special needs of passengers in wheelchairs, including but not limited to, loading and tie-down procedures and door-to-door service as prescribed in rule by the Director (Class C).

Section 20. Section 6.310.420 of the Seattle Municipal Code, last amended by Ordinance 121738, is amended as follows:

6.310.420 For-hire driver written and oral examination(( . ))

A. The Director shall prescribe the content of the examination, which must test the applicant’s:

1. Knowledge of taxicab, for-hire vehicle , transportation network company vehicle endorsement and for-hire driver requirements contained in applicable codes and regulations;

2. Ability to speak and understand oral and written English sufficient for fulfilling the minimum acceptable standards for a taxicab, for-hire vehicle and/or for-hire driver;

3. Knowledge of vehicle safety requirements;

4. Knowledge of the geography of Seattle, King County and surrounding areas, and knowledge of local public and tourist destinations and attractions; and

5. Knowledge of risk factors for crimes against forhire drivers, emergency procedures, and taxicab equipment for driver’s personal safety.

B. After submitting an application for an initial forhire license, the applicant must pass a written and oral examination administered by The City of Seattle and/or jointly with King County.

C. An applicant who fails the written and/or oral examination(( , including the initial and periodic for-hire driver written safety test, )) is entitled to one (( (1) )) free opportunity to retake the examination. A second failure will result in a sixty-day wait for another opportunity to take the examination, and another license application fee. All later examination tries will require the sixty-day wait, and repayment of the (( license )) application fee.

D. The written and oral examination is not required for the renewal of a for-hire driver’s license unless the applicant’s license has remained expired for more than one (( (1) )) year. If the license has remained expired for more than one (( (1) )) year, and the applicant can provide documentation that he/she had previously passed the oral examination, only the written examination will be required.

Section 21. A new Section 6.310.452 is added to the Seattle Municipal Code as follows:

6.310.452 TNC driver operating, conduct, and passenger relations standards

In addition to meeting the for-hire operating standards set forth in Section 6.310.450, the TNC drivers must meet the following operating, conduct, and passenger relations standards:

A. Drivers operating for a transportation network company shall not transport passengers for compensation without: 1) first obtaining and maintaining a valid for hire driver’s license; (first violation, civil penalty; subsequent violation, misdemeanor; both Class C) and 2) using a vehicle that is a for-hire vehicle or taxicab licensed under this chapter, or a vehicle with a TNC vehicle endorsement. (Class C)

B. TNC drivers shall not be in control of a for-hire vehicle for more than 12 hours spread over a total of 15 hours in any 24-hour period. Thereafter, such TNC driver shall not drive any for-hire vehicle until ten consecutive hours have elapsed. For the purposes of this subsection, hours driven in for-hire vehicles in other platforms (taxicabs, for-hire vehicles) are aggregated. (suspension and Class B);

C. TNC drivers, while active on the TNC dispatch system, shall not operate a vehicle that is unaffiliated with a TNC to transport passengers. (Class C and revocation)

D. TNC drivers shall have evidence of personal and commercial vehicle insurance in their possession at all times when active on the TNC dispatch system. (Class B)

E. TNC drivers shall maintain a personal auto insurance policy provided, that if the insurance policy lapses or is canceled, or a vehicle is deleted from the policy, proof of a new policy including the vehicle must be filed with the Director before the vehicle is canceled or deleted from the previous policy (summary suspension);

F. TNC drivers shall immediately notify the transportation network company and the Seattle Police Department when the TNC driver has been the victim of a crime (Class B).

G. TNC drivers shall not accept payment of fare or tips. Payment shall only be made electronically via the TNC application dispatch system. (Class B).

H. TNC endorsed drivers driving with a TNC endorsed vehicle shall not pick up, cruise or otherwise solicit trips (Class C and revocation)

I. TNC drivers driving with a TNC endorsed vehicle shall be the registered owner of the affiliated vehicle used to transport passengers (Class A).

J. TNC drivers shall, at the end of each trip, check the vehicle for any article(s) that are left behind by passenger(s). Such articles are to be reported as found property, and such property is to be returned to a transportation network company representative as soon as is practicable (Class A);

K. TNC drivers shall have in the driver’s possession a valid Washington State driver’s license, a valid for-hire driver’s license, and documentation that they are affiliated with a licensed TNC at any time the TNC driver is active on the TNC dispatch system.(suspension and Class B);

Section 22. Section 6.310.465 of the Seattle Municipal Code, which Section was last amended by Ordinance 122763, is amended as follows:

6.310.465 For-hire driver(( --))(( P )) p assenger relations standards(( . ))

(( A. A taxicab driver shall wear only the uniform adopted by the association and approved by the Director or a costume meeting all requirements of SMC 6.310.225 and SMC 6.310.480. (Class A). ))

(( B )) A . When wearing a costume a driver shall display a photograph of the driver dressed in the costume along with the driver’s for-hire license. (Class A).

(( C. A for-hire driver’s clothes shall be neat and clean at all times that the driver is on the driver’s shift. The term "neat and clean" as it relates to clothes shall mean that all clothing is clean, free from soil, grease and dirt and without unrepaired rips or tears. Drivers shall not wear as an outer garment any of the following: undershirt or underwear, tank tops, body shirts (seethrough mesh), swimwear, jogging or warm-up suits or sweatshirts or similar attire, shorts or trunks (jogging or bathing), sandals, or any similar clothing. Summer uniforms can include Bermuda shorts (hemmed slack material) that extend down to within two (2) inches of the top of the knee cap. (Class A). ))

(( D. A for-hire driver shall be clean and well groomed at all times while on duty. "Clean" means that state of personal hygiene, body and hair cleanliness and absence of offensive body odor normally associated with frequent clothes laundering and bathing or showering. "Well groomed" means beards and mustaches are groomed and neatly trimmed, and scalp and facial hair is neatly trimmed, and combed or brushed (Class A). ))

(( E )) B . A forhire driver shall provide customers with professional and courteous service at all times (Class A).

(( F )) C . A forhire driver shall not refuse a request for service because of the driver’s position in line at a taxicab zone; a passenger may select any taxicab in line (Class B).

(( G )) D . A forhire driver shall at all times assist a passenger by placing luggage or packages (under (( fifty (50) )) 50 pounds) in and out of the taxicab or for-hire vehicle (Class A).

(( H )) E . A forhire driver shall not refuse to transport in the taxicab or for-hire vehicle any passenger’s wheelchair which can be folded and placed in either the passenger, driver, or trunk compartment of the taxicab or for-hire vehicle, an assist dog or guide dog to assist the disabled or handicapped, groceries, packages or luggage when accompanied by a passenger (Class B).

(( I )) F . A forhire driver shall provide each passenger a taximeter receipt upon payment of the fare (Class A).

(( J )) G . A forhire driver shall use the most direct available route on all trips unless the passenger specifically requests to change the route (Class B).

(( K )) H . A forhire driver shall not permit any person or pet to ride in the taxicab or for-hire vehicle unless that person or pet accompanies, or is in the vehicle at the request of, a farepaying individual. This requirement shall not apply to (( uniformed )) driver trainees (Class A).

(( L )) I . A forhire driver shall not refuse to transport any person except when:

1. The for-hire driver has already been dispatched on another call;

2. The for-hire driver arrives at the place of pick-up and upon arrival the passenger is acting in a disorderly or threatening manner, or otherwise is acting in a manner that would cause a reasonable person to believe that the for-hire driver’s health or safety, or that of others, may be endangered;

3. The passenger cannot, upon request, show ability to pay the fare; or

4. The passenger refuses to state a specific destination upon entering the taxicab (Class B).

(( M )) J . A forhire driver shall not smoke in the taxicab or for-hire vehicle (Class A).

(( N )) K . A forhire driver shall be able to provide a reasonable amount of change, and if correct change is not available, no additional charge will be made to the passenger in attempting to secure the change (Class A).

(( O )) L . A forhire driver shall not make any discriminatory charges to any person, or make any rebate or in any manner reduce the charge to any person unless such is in conformity with the discounts or surcharges contained in the filed rates (Class B).

(( P )) M . A forhire driver shall not operate a wheelchair accessible taxicab unless the for-hire driver has successfully completed the special training requirements set forth in (( SMC )) subsection 6.310. 415.D (( E )) (Class C and five-day suspension).

N. A for-hire driver must be clean and neat in dress and person and present a professional appearance to the public.

Section 23. Section 6.310.470 of the Seattle Municipal Code, which Section was last amended by Ordinance 122763, is amended as follows:

6.310.470 For-hire driver soliciting and cruising standards(( . ))

A. Taxicabs(( . ))

1. A for-hire driver may solicit passengers only from the driver’s seat or standing immediately adjacent to the taxicab (within (( twelve (12))) 12 feet), and only when the vehicle is safely and legally parked (Class A).

2. A for-hire driver shall not use any other person to solicit passengers (Class A).

3. A for-hire driver shall not hold out the taxicab for designated destinations (Class A).

4. A for-hire driver shall not park a taxicab and wait for walk up passengers in a marked passenger load zone, truck load zone, or charter bus zone. A for-hire driver may drop off passengers or pick up hailed trips in a passenger load zone except as provided by (( SMC )) subsections 6.310.475 . D and 6.310.475. E (Class A).

B. For-hire (( V )) v ehicles((.))

(( 1. A for-hire driver in a forhire vehicle is prohibited from soliciting passengers, from cruising for passengers, or from picking up passengers in a taxi zone (Class B). ))

1. A for-hire driver in a for hire vehicle licensed under this chapter may solicit passengers only from the driver’s seat or standing immediately adjacent to vehicle (within 12 feet), and only when the vehicle is safely and legally parked (Class A).

2. A for-hire driver shall not use any other person to solicit passengers (Class A).

((3. All trips must be prearranged as defined by the Director by rule (Class B) ))

3. A for-hire driver in a for hire vehicle licensed by this chapter is prohibited from picking up passengers in a designated taxi zone (Class B).

Section 24. Section 6.310.500 of the Seattle Municipal Code, which Section was last amended by Ordinance 122763, is amended as follows:

6.310.500 Taxicabs(( --))(( M )) m aximum number(( . ))

A. The total number of taxicab licenses in effect at any one (( (1) )) time shall not exceed (( eight-hundred and fifty (850) )) 1,100 . The number of taxicab licenses shall be set by the Director at such times and in such manner as necessary to meet the demand for efficient and economical taxicab service within the city limits and to support a competitive, safe, fair and viable business environment for the taxicab industry; however, no more than (( 35 )) 100 licenses can be issued within a calendar year. The Director shall adopt by rule the procedure for determining when and how many new taxicab licenses will be issued. In determining the total number of licenses issued, the Director shall consider factors (( such as )) including, but not limited to consumer demand for transportation services, average service response times, total number of taxi rides, total paid trips per taxicab, and average operating hours per taxicab, and may consider any other factors that may affect the supply and demand for taxi service within the city limits. The Director shall adopt by rule any vehicle and safety standards required for the issuance of new licenses, including but not limited to vehicle size, fuel efficiency, and emissions standards.

B. The number of for-hire vehicle licenses in effect at any one (( (1) )) time shall not exceed (( two hundred (200) )) 200 . Except that if the State Legislature authorizes cities to regulate executive sedans and executive vans, as defined in RCW 46.04.274, then executive sedans and executive vans licensed by the Department of Licensing on the authorization date which meet City vehicle standards would be allowed to obtain for-hire vehicle licenses, and such for-hire vehicle licenses shall not be included in the calculation of total number of for-hire vehicle licenses pursuant to this subsection. TNC vehicle endorsements issued per Section 6.310.327 shall not be included in the calculation of total number of for-hire vehicles licenses pursuant to this subsection.

C. The Director may, at the Director’s discretion, issue wheelchair accessible taxicab licenses to special service vehicles used to provide transportation to disabled persons defined in KCC 6.64.010 or to handicapped persons as defined in (( SMC )) Section 6.310.110. These licenses shall be non-transferable for a period of (( five (5) )) three years from the date of issuance and shall not be included in calculating the maximum number of taxicab licenses allowable pursuant to subsection A. The Director may issue temporary and nontransferable wheelchair accessible taxicab licenses to individual for-hire drivers selected by King County for a demonstration project to determine the economic feasibility of the long term issuance of such licenses. This subsection shall take effect and be in force retroactively as of the effective date of this ordinance.

D. If the Director determines that issuance of additional taxicab licenses is warranted, not to exceed the maximum allowable taxicab licenses issued pursuant to subsection A of this section, such licenses shall be issued pursuant to:

1. A competitive request for proposal and award process under which licenses will be issued to applicants whose proposals demonstrate that they are most able to meet the needs of the public in providing taxicab service by meeting qualifications prepared by the Director that are not in conflict with the general provisions of this chapter; or

2. Pursuant to a lottery of qualified applicants; or

3. Pursuant to a combination of both procedures as prescribed by rule adopted by the Director. The rule shall include minimum qualifications for taxicab license applicants, including but not limited to the driving and conduct records of prospective applicants.

E. The Director shall issue 100 additional taxicab licenses in 2014. The Director shall issue 100 additional taxicab licenses again in 2015. Each of these issuances shall be done pursuant to the methods described in subsection 6.310.500.D. To be eligible for the issuance of these new taxicab licenses, an applicant must either: 1) have no ownership interest whatsoever in a licensed for-hire vehicle or licensed taxicab, or 2) relinquish any ownership interest in a licensed for-hire vehicle or licensed taxicab prior to and as a condition of the issuance of the new license. For purposes of this subsection, relinquish means to surrender the for-hire vehicle or taxicab license to the original licensing agency or transfer the interest to another individual who does not have any ownership interest in a licensed for-hire vehicle or licensed taxicab. If the ownership interest is shared with one other individual who has no other separate and independent interest in a licensed forhire vehicle or licensed taxicab, the license may be transferred to that individual.

((E. At the earlier of September 1, 2010 or after a total of 50 licenses have been issued under this section, the Director shall provide a written report to the City Council concerning the economic impact that the 50 additional licenses have had on taxicab service and on the business of providing taxicab transportation services in Seattle. The report shall provide updated data to the extent reasonably available relating to the factors that serve as the basis for the issuance of licenses as set forth in Subsection A . This report shall also describe the economic effects, if any, of the provisions of SMC 6.310.330N on the market value of all taxicab license transfers occurring after August 1, 2008. No additional licenses may be issued until the submission of the report.))

Section 25. Section 6.310.530 of the Seattle Municipal Code, which Section was last amended by Ordinance 123939, is amended as follows:

6.310.530 Rates(( . ))

***

F. For-hire (( V )) v ehicle (( R )) r ates(( . ))

1. Every for-hire vehicle licensee shall file all rates and charges with the Director. All rates and charges, including any adopted senior citizen discount rate, shall be conspicuously displayed in the interior of the for-hire vehicle so as to be readily discernible to the passenger. The Director will prescribe the manner of such posting.

2. For-hire vehicles must charge for service based on : a written contract(( , )) ; flat charge per trip, by zone(( , )) ; or by an hourly rate with minimum increments of (( one half ( 1/2) )) 1/2 hour. Flat charges by zone or hourly rate may vary by time of day.

G. Transportation network company rates

1. A transportation network company may not lawfully operate until it has provided the Director with written documentation explaining its rate structure, demonstrating that it is consistent with State law per RCW Chapter 19.94. The rate structure shall also demonstrate how tolls or charges established for roads, bridges, tunnels or ferries shall be charged to passengers. TNCs shall either a) charge flat rates between preset zones, which may vary by time of day, and file these rates with the Director, or b) provide the Director with certification from the Department of Licensing, on official letterhead, that its rate structure complies with RCW Chapter 19.94.

2. Regardless of the type of rate charged by a transportation network company, the rate shall be disclosed to the passenger and acknowledged via the electronic TNC dispatch system before the trip is initiated. A trip is initiated when the passenger enters the vehicle.

(( G. )) H. The rates specified in this section shall not apply to transportation of persons provided pursuant to a written contract which establishes a fare at a different rate for specified transportation and has been previously filed with the Director; provided, that no contract may include any provision the effect of which is to directly or indirectly require exclusive use of the transportation services of the contracting taxicab or for-hire vehicle.

(( H. )) I. It is unlawful under the Americans with Disabilities Act to charge a special service vehicle rate which is different from the taxicab rates adopted in subsection D of this section, except in those instances where the transportation of disabled persons is pursuant to a written contract as specified in subsection (( G )) H of this section (Class B).

(( I. )) J. The Director is authorized to approve a temporary fuel surcharge to be added to the taxicab meter rate, or the flat rate for trips from the downtown hotel district to Seattle-Tacoma International Airport, any time the price of fuel, as published by the American Automobile Association, exceeds a fuel surcharge trigger price established pursuant to an administrative rule adopted by the Director. The surcharge shall be an amount necessary to recoup the increased fuel costs.

(( J. )) K. The Director is authorized to temporarily suspend the flat rate from the downtown hotel district to Seattle-Tacoma International Airport when conditions exist at the airport or elsewhere that result in an average increase of ten (( (10) )) minutes to the normal trip time and are beyond the control of the drivers. Examples of such conditions would be vehicle security checks at the airport or major construction projects on Interstate 5 or State Route 99 that delay traffic.

(( K. )) L. The Director shall specify by rule how tolls or charges established for roads, bridges, tunnels or ferries shall be charged to taxicab or for-hire vehicle passengers and shall prescribe required signage for the vehicles for such purposes.

Section 26. A new Section 6.310.540 is added to the Seattle Municipal Code as follows:

6.310.540 King County-only business service contracts

A. This chapter does not apply to for-hire drivers with valid King County for-hire driver’s licenses operating forhire vehicles or taxicabs with valid King County-only licenses pursuant to a business service contract, provided that:

1. The for-hire drivers have proof that they are operating the for-hire vehicle pursuant to a business service contract;

2. The business service contract is on file with the Director; and,

3. In any 180-day period no more than 30% of all trips, regardless of origin, by a County-only licensed vehicle operating under the terms of a business service contract originate in the City of Seattle.

B. Each and every party to a business service contract shall provide the Director such data as the Director deems necessary as prescribed by rule to ensure compliance with this section.

C. Any failure to meet the requirements of this subsection is a violation of 6.310.130.

Section 27. Section 6.310.600 of the Seattle Municipal Code, which Section was last amended by Ordinance 121857, is amended as follows:

6.310.600 Penalties(( . ))

((A.)) Violations of SMC Section 6.310.130 shall be a misdemeanor and upon conviction shall be punished by a fine not to exceed One Thousand Dollars ($1,000.00), or by imprisonment for a term not to exceed ninety (90) days, or by both such fine and imprisonment. ))

A. Each violation of subsections 6.310.130.A, 6.310.130.B or 6.310.452.A shall be a civil infraction as contemplated by RCW Chapter 7.80 and deemed to be a Class 1 civil infraction under RCW 7.80.120(a), and shall subject the violator to a maximum penalty and default amount of $1,000, inclusive of statutory assessments.

1. As contemplated by RCW 7.80.160, a person who, after receiving a notice of civil infraction that includes a statement of the options provided in RCW Chapter 7.80 for responding to the notice and the procedures necessary for exercising these options, knowingly fails to exercise one of the options within 15 days of the date of the notice is guilty of a misdemeanor subject to the provisions of Chapters 12A.02 and 12A.04, except that absolute liability shall be imposed for such a violation and none of the mental states described in Section 12A.04.030 need be proved, regardless of the disposition of the notice of civil infraction. A person who willfully fails to pay a monetary penalty or perform community service as ordered by a court may be found in contempt of court as provided in RCW Chapter 7.21.

2. An action for a civil infraction shall be initiated and processed in the manner contemplated by RCW Chapter 7.80 and the Infraction Rules for Courts of Limited Jurisdiction. For purposes of RCW 7.80.040, the "enforcement officer" authorized to enforce the provisions of subsections 6.310.130.A and 6.310.130.B and 6.310.452.A are: (1) the Director of the Seattle Department of Finance and Administrative Services and authorized representatives or assistants of him or her; and (2) a commissioned officer of the Seattle Police Department and a person issued a Special Police Officer Commission by the Chief of Police with authority to enforce this title.

B. Each subsequent violation of subsections 6.310.130.A, 6.310.130.B or 6.310.452.A within five years of the prior violation is a misdemeanor subject to the provisions of Chapters 12A.02 and 12A.04, except that absolute liability shall be imposed for such a violation and none of the mental states described in Section 12A.04.030 need be proved. The Director may request that the City Attorney prosecute such violations criminally as an alternative to the civil infraction procedure outlined in this chapter.

C. Each violation of subsections 6.310.130.C -6.310.130.E shall be a civil infraction as contemplated by RCW Chapter 7.80 and deemed to be a Class 1 civil infraction under RCW 7.80.120(a), and shall subject the violator to a maximum penalty and default amount of $10,000, inclusive of statutory assessments.

1. As contemplated by RCW 7.80.160, a person who, after receiving a notice of civil infraction that includes a statement of the options provided in RCW Chapter 7.80 for responding to the notice and the procedures necessary for exercising these options, knowingly fails to exercise one of the options within 15 days of the date of the notice is guilty of a misdemeanor subject to the provisions of Chapters 12A.02 and 12A.04, except that absolute liability shall be imposed for such a violation and none of the mental states described in Section 12A.04.030 need be proved, regardless of the disposition of the notice of civil infraction. A person who willfully fails to pay a monetary penalty or perform community service as ordered by a court may be found in contempt of court as provided in RCW Chapter 7.21.

2. An action for a civil infraction shall be initiated and processed in the manner contemplated by RCW Chapter 7.80 and the Infraction Rules for Courts of Limited Jurisdiction. For purposes of RCW 7.80.040, the "enforcement officer" authorized to enforce the provisions of subsections 6.310.130.C and 6.310.130.D and 6.310.130.E are: (1) the Director of the Seattle Department of Finance and Administrative Services and authorized representatives or assistants of him or her; and (2) a commissioned officer of the Seattle Police Department and a person issued a Special Police Officer Commission by the Chief of Police with authority to enforce this title.

D. Each subsequent violation of subsections 6.310.130.C, 6.310.130.D or 6.310.130.E within five years of the prior violation is a misdemeanor subject to the provisions of Chapters 12A.02 and 12A.04, except that absolute liability shall be imposed for such a violation and none of the mental states described in Section 12A.04.030 need be proved. The Director may request that the City Attorney prosecute such violations criminally as an alternative to the civil infraction procedure outlined in this chapter.

(( B. )) E . For each violation of a provision in this chapter that has a class referenced in parenthesis after the provision, a civil penalty and penalty points shall be imposed by and paid to the Department according to the provisions of (( SMC )) Section 6.310.605 .

(( C. )) F . Any person who alters, edits, destroys, removes, copies, transfers, transmits, erases, deletes, overwrites, obscures, damages, encodes, locks, renders unreadable, or otherwise tampers with any image made by a digital security camera, other than as may occur in the normal operation of the digital security camera system as mandated and authorized by the Director, shall be guilty of a misdemeanor, and upon conviction shall be punished by a fine not to exceed (( One Thousand Dollars ($1,000.00) )) $1,000 , or by imprisonment for a term not to exceed (( ninety (90) )) 90 days, or by both such fine and imprisonment.

Section 28. Section 6.310.605 of the Seattle Municipal Code, which Section was last amended by Ordinance 121738, is amended as follows:

6.310.605 Monetary penalties and penalty points(( . ))

A. For-hire (( D )) d river , transportation network company driver or (( T )) t axicab/(( F )) f orhire (( V )) v ehicle (( V )) v iolations(( . ))

Violation

Penalties Against a For-hire Driver, TNC Driver or a Taxicab Licensee or Forhire Vehicle For Each Violation

Penalty Points Attributed to Taxicab Association or Transportation Network Company For Each Violation

1. Violations ((F))found ((D))during a ((C))calendar ((Y))year ((A))away from The City((’s)) of Seattle’s ((I))inspection ((F))facility((.))

First Class A in one year

$35((.00))

2

Second Class A in one year

$70((.00))

3

Third or more Class A violation in one year

$120((.00))

4

First Class B violation in one year

$70((.00))

4

Second Class B violation in one year

$175((.00))

7

Third or more Class B violation in one year

$300((.00))

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All Class C violations

$1,000((.00))

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2. Violations ((F))found ((D))during ((I))inspections at The City((’s)) of Seattle’s ((I))inspection ((F))facility((.))

Failure to appear for inspection scheduled by the Director (see Section 6.310.330 I and paragraph below)

$50

2 penalty points

Class A violation found during inspection at City’s inspection facility

Vehicle reinspection fee.
See fee schedule in
href="file:///\\lawnasvfb\LawDept\Data\GovAffairs\SO\Licensing\level4\TIT6BURE _SUBTITLE_IVNELICO_CH6.310TAFREVE_IGEPR.docx#TIT6BURE_SUBTITLE_IVNELICO_CH6.31 0TAFREVE_IGEPR_6.310.150FE"> Section 6.310.150

2 each violation

Class B violation found during inspection at City’s inspection facility

Vehicle reinspection fee.
See fee schedule in
href="file:///\\lawnasvfb\LawDept\Data\GovAffairs\SO\Licensing\level4\TIT6BURE _SUBTITLE_IVNELICO_CH6.310TAFREVE_IGEPR.docx#TIT6BURE_SUBTITLE_IVNELICO_CH6.31 0TAFREVE_IGEPR_6.310.150FE"> Section 6.310.150

4 each violation

"Failure to appear for inspection scheduled by the Director" includes a late arrival for the inspection. If notification that the vehicle ((can not)) cannot appear is made prior to the close of business on the business day before the scheduled inspection, and the taxicab plates are delivered to the inspection facility prior to the original inspection time, then no penalty will be due.

3. Penalties and penalty points are attributed to the taxicab association or transportation network company with which the taxicab and/or for-hire driver is affiliated at the time the violation occurs.



B. Taxicab (( A )) a ssociation or transportation network company (( V )) v iolations (( D )) d uring a (( C )) c alendar (( Y )) y ear(( . ))

Violation

Penalty Points
Against Taxicab
Association or Transportation

Network Company

First Class A violation in one year

5

Second Class A violation in one year

6

Third or more Class A violation in one year

7

First Class B violation in one year

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Second Class B violation in one year

12

Third or more Class B violation in one year

href="file:///\\lawnasvfb\LawDept\Data\GovAffairs\SO\Licensing\level1\TIT15STS IUS.docx#TIT15STSIUS">15

Any Class C violation

Revocation



As soon as an association or TNC accumulates more than five (( (5) )) penalty points per affiliated taxicab or for-hire vehicle , on average, it must pay a penalty to the Director of (( One Hundred Dollars ($100) )) $100 per affiliated taxicab or for-hire vehicle . As soon as an association or TNC accumulates more than seven (( (7) )) penalty points per affiliated taxicab or for-hire vehicle , on average, it must pay an additional penalty to the Director of (( One Hundred Fifty Dollars ($150) )) $150 per affiliated taxicab or for-hire vehicle . As soon as an association or TNC accumulates more than ten (( (10) )) points per affiliated taxicab or forhire vehicle , on average, it must pay an additional penalty to the Director of (( Two Hundred Fifty Dollars ($250) )) $250 per affiliated taxicab or for-hire vehicle . For purposes of this subsection, average number of penalty points per affiliated taxicab or for-hire vehicle means total association penalty points divided by number of taxicabs or for-hire vehicles within the association or TNC . (The Director will compute the number of taxicabs or for-hire vehicles within the association or TNC by averaging the number of taxicabs or for-hire vehicles in the association or TNC (rounded up) at the beginning of the year and the number of cabs or for-hire vehicles at the end of each completed quarter, i.e., March 31st, June 30th, etc.). If an association or TNC has exceeded the average amount of penalty points as outlined above, the penalty will be due as of the end of the current quarter. The association or TNC may ask for a hearing with the Director concerning the assessment of such penalty. At such hearing the association or TNC will present any evidence to refute or mitigate (( the )) its performance(( of the association )). After the hearing, the Director may impose the penalty, reduce the penalty, or with just cause waive the penalty and put the association or TNC on probation with specific performance guidelines. If the association or TNC does not meet the guidelines imposed, the Director will impose the penalty. In any case, the Director’s decision is final.

Upon renewal of the taxicab association or TNC license, the association or TNC will start the new year with zero (( (0) ))penalty points.

A Class C violation by a TNC shall result in revocation of the TNC license.

C. Taxicab or (( F )) f or-hire (( V )) v ehicle (( O )) o wner’s (( R )) r esponsibility for (( P )) p enalties (( I )) i ncurred by (( F )) f or-hire (( D )) d rivers. A taxicab or for-hire vehicle owner is jointly and severally liable for each monetary penalty assessed against any for-hire driver who commits a violation while operating a taxicab or for-hire vehicle belonging to that owner. The City is not required to pursue collection of the penalty from the driver as a prerequisite to pursuing collection of the penalty from the owner.

D. Taxicab (( A )) a ssociation’s or transportation network company’s (( R )) r esponsibility for (( P )) p enalties (( I )) i ncurred (( B )) b y (( F )) f or-hire (( D )) d rivers and (( T )) t axicab (( O )) o wners. In addition to incurring penalty points, the taxicab association or TNC is jointly and severally liable for each monetary penalty assessed against any for-hire driver or taxicab affiliated with the taxicab association or TNC . The City is not required to pursue collection of the penalty from the for-hire driver or the taxicab owner as a prerequisite to pursuing collection of the penalty from the taxicab association or TNC .

Section 29. Section 6.310.610 of the Seattle Municipal Code, which Section was last amended by Ordinance 122763, is amended as follows:

6.310.610 Suspension or revocation(( . ))

***

C. Revocation (( S )) s tandards

***

3. Transportation network companies (TNC)

a. The Director shall revoke a TNC license if during the license period:

i. The TNC, or any owner, officer, director, managing partner, general partner or principal of the TNC, receives a bail forfeiture, conviction or other final adverse finding for crimes of fraud, theft, larceny, extortion, embezzlement, racketeering, Uniform Controlled Substances Act, prostitution, alcohol and/or narcotics where the commission of such crimes involved or used a TNC or forhire vehicle. If an owner, officer, director, managing partner, general partner or principal of the TNC found in violation of this subsection is (a) removed immediately from all operational or management duties or authority and (b) is divested of all ownership in the TNC as soon as possible, the license may be reinstated;

ii. The TNC, or any owner, officer, director, managing partner, general partner or principal of the TNC, receives a bail forfeiture, conviction or other final adverse finding involving crimes directly related to the applicant’ s ability to operate a TNC, including but not limited to prostitution, gambling, fraud, larceny, extortion, income tax evasion. If an owner, officer, director, managing partner, general partner or principal of the TNC found in violation of this subsection is (a) removed immediately from all operational or management duties or authority and (b) is divested of all ownership in the TNC as soon as possible, the license may be reinstated;

iii. The TNC allows more than 150 TNC endorsed drivers to be active on the TNC dispatch system at any given time;

iv. An affiliated vehicle is active on the TNC dispatch system that has not been inspected by an approved third party as required by 6.310.270;

v. Has failed to meet the insurance requirements outlined in Section 6.310.260;

vi. An affiliated driver is active on the TNC dispatch system without personal and commercial vehicle insurance;

vii. Fails to pay all penalties imposed by the Department that are either not contested or are upheld after review; or

viii. The TNC has committed one Class C violations in any one year period.

b. The Director may revoke a TNC license if during the license period the TNC:

i. Dispatches to an unlicensed or unaffiliated driver;

ii. Dispatches to an unaffiliated vehicle;

iii. Dispatches to a vehicle that is neither a for-hire vehicle or taxicab, nor a vehicle with a TNC vehicle endorsement;

iv. Knowingly permits a third party to use the TNC dispatch system;

v. Knowingly permits a TNC endorsed driver driving a TNC endorsed vehicle to pick up hails, cruise, or otherwise solicit trips;

vi. Knowingly allows a TNC driver driving a TNC endorsed vehicle to take trips not dispatched by the TNC;

vii. Fails to review driving records of TNC drivers and maintain records thereof;

viii. Knowingly permits TNC drivers with any conviction listed in subsection 6.310.270 to continue affiliating with a TNC and/or operating as a TNC driver.

(( 3 )) 4 . Taxicab and (( F )) f orhire (( V )) v ehicle (( L )) l icenses(( . ))

***

(( 4 )) 5 . Forhire (( D )) d river’s (( L )) l icenses(( . ))

a. The Director shall revoke a for-hire driver’s license if:

i. The for-hire driver receives a bail forfeiture, conviction, or other final adverse finding for crimes pertaining to hit-and-run, or for crimes pertaining to driving under the influence of alcohol or controlled substances while operating a taxicab or for-hire vehicle; or

ii. The for-hire driver’s Washington State driver’s license expires or is revoked; or

iii. The for-hire driver has committed one (( (1) )) Class C violations in any one (( (1) )) year period.

b. The Director may revoke a for-hire driver’s license if:

i. The for-hire driver is found to be in possession of illegal drugs or an open container of alcohol while in control of or while operating any taxicab or for-hire vehicle; or

ii. The for-hire driver has received a conviction, bail forfeiture, or other final adverse finding involving crimes pertaining to prostitution, gambling, physical violence, Uniform Controlled Substances Act, fraud, theft, robbery, larceny, burglary, extortion and/or crimes directly related to the driver’s ability to operate a taxicab.

6. Transportation network company (TNC) drivers

a. The Director shall revoke the for-hire license of a transportation network company driver, if, while active on the TNC dispatch system:

i. The TNC driver receives a bail forfeiture, conviction, or other final adverse finding for crimes pertaining to hit-and-run, or for crimes pertaining to driving under the influence of alcohol or controlled substances while operating for-hire vehicle;

ii. The TNC driver’s Washington State driver’s license expires or is revoked;

iii. The TNC driver has committed one Class C violations in any one year period;

iv. The TNC endorsed driver driving a TNC endorsed vehicle picks up a street hail, cruises, or otherwise solicits trips whether active on the TNC dispatch system or not;

v. The TNC driver driving a TNC endorsed vehicle provides a ride that is not booked through the TNC application dispatch system;

vi. Drives a vehicle that is not affiliated with the TNC;

vii. Drives a vehicle that is neither a for-hire vehicle or taxicab licensed under this chapter nor a vehicle with a TNC vehicle endorsement;

b. The Director may revoke the for-hire license of a transportation network company driver if:

i. The TNC driver is found to be in possession of illegal drugs or an open container of alcohol while in control of or while operating any taxicab or for-hire vehicle; or

ii. The TNC driver has received a conviction, bail forfeiture, or other final adverse finding involving crimes pertaining to prostitution, gambling, physical violence, Uniform Controlled Substances Act, fraud, theft, robbery, larceny, burglary, extortion and/or crimes directly related to the driver’s ability to operate a for hire vehicle.

D. Effect of (( N )) n otice of (( S )) s uspension or (( R )) r evocation(( . ))

1. Summary (( S )) s uspension or (( R )) r evocation. Whenever any license or TNC vehicle endorsement is summarily suspended or revoked the suspension or revocation is effective upon issuance of the notice. Such notice may be appealed pursuant to the procedures of Section 6.310.635. If a timely appeal is not filed by the licensee or TNC driver , the notice of summary suspension or revocation shall be final. Such summary suspension shall extend until any administrative or judicial appeal is finally concluded in the licensee’s or TNC driver’s favor, until the license or endorsement expires, or until evidence satisfactory to the Director is produced showing that the violation is cured, whichever occurs first. Summary revocations shall extend until the end of the annual license or endorsement period or until any administrative or judicial appeal is finally concluded in the licensee’s or TNC driver’s favor, whichever occurs first.

2. Suspension or (( R )) r evocation. If the licensee or TNC driver does not file a timely appeal pursuant to Section 6.310.635, the notice of suspension or revocation shall be final. Suspensions or revocations become effective upon the date any notice of suspension or revocation or order on appeal affirming such notice becomes final. Unless a time period is specified in a particular section of the ordinance codified in this chapter, suspensions shall extend until the license or endorsement expires or until evidence satisfactory to the Director is produced showing that the violation is cured, whichever occurs first. Revocations shall extend until the end of the annual license or endorsement period.

3. Except in the case of a summary suspension or revocation as provided in subsection 6.310 .610.D.1 above, whenever a timely appeal is filed pursuant to Section 6.310.635, a licensee or TNC driver may continue to engage in the activity for which the license or endorsement is required pending a final decision on appeal.

Section 30. Section 6.310.635 of the Seattle Municipal Code, which Section was last amended by Ordinance 121738, is amended as follows:

6.310.635 Notice and hearing for denials, violations, suspensions and revocations(( . ))

A. For each violation, and for each denial, suspension or revocation, the Director shall give written notice to the affected licensee. If the affected licensee is a taxicab driver, the Director shall at the same time give written notice of violations to the taxicab licensee and the taxicab association. If the affected licensee is a transportation network company driver, the Director shall at the same time give written notice to the transportation network company. If the affected licensee is a taxicab licensee, the Director shall at the same time give written notice of violations to the taxicab association. All notices directed to a taxicab driver or taxicab licensee may be served by personal delivery to, or by first-class mail addressed to, the taxicab association.

B. Any notice of denial, violation, suspension or revocation, other than a summary suspension or revocation pursuant to (( Section )) subsection 6.310.610 . A, shall state that the driver, taxicab or for-hire vehicle licensee, transportation network company and/or taxicab association is entitled to a hearing to respond to the notice and introduce any evidence to refute or mitigate the violation. Upon written request, submitted by the person named on the violation, filed within ten (( (10) )) calendar days after the date of the notice of denial, violation, suspension or revocation, the Director shall set a hearing date and time to be held as soon as possible and not more than (( thirty (30) )) 30 calendar days from the date of the request or the next business day after that if the thirtieth day falls on a weekend or holiday.

C. Any notice of summary suspension or revocation pursuant to (( Section )) subsection 6.310. 610.A and 6.310.610.D.1 , shall state that the driver, taxicab or for-hire vehicle licensee, transportation network company and/or taxicab association is entitled to a hearing to respond to the notice and introduce any evidence to refute or mitigate the violation. Upon written request, submitted by the person named on the violation, filed within ten (( (10) )) calendar days after the date of the notice of the summary suspension or revocation, the Director shall set a hearing date and time to be held as soon as possible and not more than seven (( (7) )) calendar days from the date of the request or the next business day after that if the seventh day falls on a weekend or holiday. The Director shall render a decision affirming or reversing the summary suspension or revocation within three (( (3) )) business days after the conclusion of the hearing.

D. The decision of the Director is final only if a monetary penalty is imposed or if a timely appeal is not filed pursuant to subsection G. A taxicab license or forhire driver license may be reinstated without a hearing if the violation was for failure to pay a monetary penalty within (( thirty (30) )) 30 days, if the licensee pays the monetary penalty in full within ten (( (10) )) days of the date of license revocation and pays a license reinstatement fee. This authority to reinstate licenses without a hearing only applies if it is the first instance of failure to pay a monetary penalty in the calendar year.

E. The hearing shall be held by the Director or the Director’s designee, provided that the designee may not be a person who directly supervises the inspector who issued the notice of denial, violation, suspension or revocation.

F. The hearing shall be informal, but shall be recorded by electronic means provided by the Director. Within (( twenty (20) )) 20 days of the hearing, the Director shall issue a written ruling including factual findings and the Director’s conclusion, with supporting reasons, affirming, modifying or reversing the notice. The decision shall be mailed by first class mail to each affected licensee at the address listed on the application; or in any supplemental materials. (( However, if the licensee is a taxicab licensee or taxicab driver, the decision )) Licensee decisions for taxicabs and taxicab drivers shall be mailed by first class mail to the licensee at the address of the taxicab association. Licensee and endorsement decisions for transportation network company drivers shall be mailed by first class mail to the licensee at the address listed on the licensee’s for-hire driver’s license application as well as the transportation network company.

G. If the Director’s decision imposes or affirms a denial, suspension or revocation, including summary suspension or revocation, any affected licensee may appeal the entire decision to the Hearing Examiner by filing a notice of appeal with the Hearing Examiner within ten (( (10) )) days after the date of mailing of the decision. Decisions of the Director imposing a monetary penalty only, pursuant to subsection D, shall not be appealable to the Hearing Examiner.

***

Section 31. Section 6.310.300 of the Seattle Municipal Code, last amended by Ordinance 122763, is amended as follows:

6.310.300 Taxicab and for-hire vehicle license application(( . ))

***

C. The taxicab or for-hire vehicle license application shall include the following information:

***

5. Insurance policy or insurance binder proving compliance with Chapter 46.72 RCW, as now or hereafter amended, for each taxicab or for-hire vehicle for which a license is sought. The insurance policy or insurance binder shall:

***

d. Not include self-insured retention, nonstandard deductibles, aggregate limits, territorial restrictions, named driver requirements or exclusions , or any other provisions that limit insurance coverage.

***

Section 32. Section 6.310.230 of the Seattle Municipal Code, last amended by Ordinance 121738, is amended as follows:

6.310.230 Taxicab association(( --)) (( O )) o perating responsibilities(( . ))

***

4. Stores all records that this chapter requires the taxicab association to maintain including, but not limited to, copies of taxicab licenses and for-hire drivers licenses, lists of all affiliated taxicabs and affiliated drivers, taxicab vehicle repair and service records, passenger comment cards, new driver training records, vehicle insurance policies, vehicle registrations, (( vehicle for-hire certificate, )) passenger complaint log, taxicab sign out log or equivalent, and radio dispatch records (Class A --each requirement),

Section 33. Section 6.310.300 of the Seattle Municipal Code, last amended by Ordinance 122763, is amended as follows:

6.310.300 Taxicab and for-hire vehicle license application(( . ))

***

C. The taxicab or for-hire vehicle license application shall include the following information:

***

(( 7. State of Washington For-hire Certificate. ))

(( 8 )) 7 . State of Washington vehicle registration.

(( 9 )) 8 . Certificate of safety as required in SMC Section 6.310.320 E.

(( 10 )) 9 . Certificate of taxicab association membership (if application is for a taxicab license).

1 0 (( 1 )). Any other documents required by regulations promulgated under this chapter.

1 1 (( 2 )). The above application and information must also be completed and supplied during any annual license renewal.

Section 34. Section 6.310.320 of the Seattle Municipal Code, last amended by Ordinance 122802, is amended as follows:

6.310.320 Taxicab and for-hire vehicle(( --)) (( V )) v ehicle operating requirements(( . ))

***

J. The vehicle contains the following current documentation: (( the state for-hire certificate, )) the county and/or city taxicab or for-hire vehicle license, the vehicle registration, and the proof of insurance card (Class A);

***

Section 35. Section 6.310.450 of the Seattle Municipal Code, last amended by Ordinance 122763, is amended as follows:

SMC 6.310.450 For-hire driver operating standards(( . ))

***

D. A for-hire driver, before starting each shift, shall ensure that (( the state for-hire certificate, )) the county and/or City taxicab or for-hire vehicle license, vehicle registration and proof of insurance card are in the vehicle (Class A).

***

Section 36. Section 6.310.610 of the Seattle Municipal Code, last amended by Ordinance 122763, is amended as follows:

6.310.610 Suspension or revocation(( . ))

***

C. Revocation Standards.

***

3. Taxicab and For-hire Vehicle Licenses.

a. The Director shall revoke a taxicab or for-hire vehicle owner license if:

i. The licensee, or any officer, director, general partner, managing partner or principal of the licensee, has had a conviction, bail forfeiture or final adverse finding of criminal fraud, larceny, theft, prostitution, extortion, racketeering, robbery or violation of the Uniform Controlled Substances Act, where the crime is associated with operating a taxicab or for-hire vehicle;

ii. The licensee has had the license suspended twice within a one (( (1) )) year period for lack of a current, valid insurance policy;

(( iii. The licensee’s State of Washington for-hire certificate has been revoked; ))

(( iv )) iii . The licensee is not affiliated with a taxicab association licensed under this chapter; or

(( v )) iv . The licensee is subject to revocation because of a loan default pursuant to (( SMC )) Section 6.310.380 .

***

Section 37. Section 6.310.205 of the Seattle Municipal Code, last amended by Ordinance 119872, is amended as follows:

6.310.205 Taxicab association owners, partners, and principals(( --)) ((I)) i nvestigation(( . ))

(( All taxicab association owners, partners, and principals must consent to be fingerprinted for a criminal background check. ))

All taxicab association owners, partners, and principals shall be referred for fingerprinting, and all applications shall be referred for a state and national Washington State Patrol and Federal Bureau of Investigation criminal background check under RCW 35.21.920 to regulate the issuance of licenses of those engaged in the taxicab and forhire occupations and activities. Information relating to the applicants’ criminal history shall be forwarded to the licensing agency.

Section 38. Section 6.310.305 of the Seattle Municipal Code, last amended by Ordinance 118341, is amended as follows:

6.310.305 Taxicab and for-hire vehicle owners- (( I )) i nvestigation(( . ))

(( All applicants for a taxicab or for-hire vehicle license must consent to be fingerprinted for a criminal background check. ))

All applicants for a taxicab or for-hire vehicle license shall be referred for fingerprinting, and all applications shall be referred for a state and national Washington State Patrol and Federal Bureau of Investigation criminal background check under RCW 35.21.920 to regulate the issuance of licenses of those engaged in the taxicab and forhire occupations and activities. Information relating to the applicants’ criminal history shall be forwarded to the licensing agency.

Section 39. Section 6.310.405 of the Seattle Municipal Code, last amended by Ordinance 118341, is amended as follows:

6.310.405 Criminal (( B )) b ackground (( C )) c heck

(( All applicants for a for-hire driver’s license must consent to be fingerprinted for a criminal background check .))

All applicants for a for-hire driver’s license shall be referred for fingerprinting, and all applications shall be referred for a state and national Washington State Patrol and Federal Bureau of Investigation criminal background check under RCW 35.21.920 to regulate the issuance of licenses of those engaged in the taxicab and for-hire occupations and activities. Information relating to the applicants’ criminal history shall be forwarded to the licensing agency.

Section 40. A new Section 6.310.545 of the Seattle Municipal Code is adopted as follows:

6.310.545 Transportation network company owners, partners, and principals(( --)) (( I )) i nvestigation

All transportation network company owners, partners, and principals shall be referred for fingerprinting, and all applications shall be referred for a state and national Washington State Patrol and Federal Bureau of Investigation criminal background check under RCW 35.21.920 to regulate the issuance of licenses of those engaged in the taxicab and forhire occupations and activities. Information relating to the applicants’ criminal history shall be forwarded to the licensing agency.

Section 41. A new Section 6.310.750 to Seattle Municipal Code is adopted, as follows:

6.310.750 Additional remedies

Notwithstanding the existence or use of any other remedy, the City Attorney may seek legal or equitable relief to enjoin an act or practice that constitutes or will constitute a violation of this chapter or an applicable rule adopted under this chapter.

Section 42. Section 6.310.455 of the Seattle Municipal Code, last amended by Ordinance 122763, is amended as follows:

6.310.455 For-hire driver conduct standards(( . ))

***

R. A for-hire driver shall not use a (( cell )) mobile phone (( while a passenger is in the taxicab )) unless in hands-free mode, consistent with RCW 46.61.667. (Class B) ;

Section 43. Section 6.310.400 of the Seattle Municipal Code, last amended by Ordinance 121738, is amended as follows:

6.310.400 For-hire driver’s license application(( . ))

***

B. The following additional information must be filed prior to sitting for the written examination:

***

3. If an applicant will only drive a for-hire vehicle, then the 4-day classroom training by a taxicab association and the ride-alongs are not required. Seattle for-hire driver licenses shall be endorsed as "For-Hire Vehicles Only" or "FHV."

***

Section 44. A new Section 6.310.745 to the Seattle Municipal Code is adopted as follows:

6.310.745 Other laws

Nothing in this chapter relieves a for-hire driver, forhire vehicle or taxicab licensee, taxicab association, transportation network company (TNC), TNC vehicle endorsement holder or applicant thereof from complying with any other law, nor does the City issuance of a license or endorsement under this chapter imply that the applicant has met the obligations of all such other laws.

Section 45. The Department of Finance and Administrative Services shall issue a report to City Council regarding the transportation network company pilot program by no later than September 30, 2015. The report shall include an assessment of taxi industry trips and revenue, the percentage of taxi industry trips that are dispatched on any platform, the response times for any companies in the dispatch market, the locations of rejected rides by any companies in the dispatch market, the financial burdens of drivers across the different platforms, any available data about driver experiences and driver migrations across platforms, collisions, driver violations, rates, and customer satisfaction rates and complaints.

Section 46. Section 6.310.300, which was last amended by Ordinance 122763, is amended as follows:

(( SMC ))6.310.300 Taxicab and for-hire vehicle license application.

***

C. The taxicab or for-hire vehicle license application shall include the following information:

***

5. Insurance policy or insurance binder proving compliance with Chapter 46.72 RCW, as now or hereafter amended, for each taxicab or for-hire vehicle for which a license is sought. The insurance policy or insurance binder shall:

a. Be issued by an admitted carrier in the State of Washington with an A.M. Best’s Rating of not less than(( A B+ and be not less than A.M. Best’s Financial Size Category VII; provided however, that the Director may temporarily suspend any or all of these requirements if no other viable insurance options are available to the industry,

b. Name The City of Seattle as an additional insured,

c. Provide that the insurer will notify the Director, in writing, of any cancellation at least thirty (30) days before that cancellation takes effect, and

d. Not include self-insured retention, nonstandard deductibles, aggregate limits, territorial restrictions, named driver requirements, or any other provisions that limit insurance coverage.

***

Section (( 46 )) 47 . Without further action taken by City Council, the transportation network company pilot program will automatically continue.

Section (( 47 )) 48 . This ordinance shall take effect and be in force 30 days after its approval by the Mayor, but if not approved and returned by the Mayor within ten days after presentation, it shall take effect as provided by Seattle Municipal Code Section 1.04.020.

Passed by the City Council the ____ day of ________________________, 2014, and signed by me in open session in authentication of its passage this _____ day of ___________________, 2014.

_________________________________

President __________of the City Council

Approved by me this ____ day of _____________________, 2014.

_________________________________

Edward B. Murray, Mayor

Filed by me this ____ day of __________________________, 2014.

____________________________________

Monica Martinez Simmons, City Clerk

(Seal)

2013 City of Seattle and King County Taxi, For Hire Vehicle and Limousine Services Demand Study, Final Report, page 22 2 Id.

Tony Kilduff LEG TNC Code Revision ORD March 17, 2014 Version #3

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