INITIATIVE PETITION FOR SUBMISSION TO THE SEATTLE CITY COUNCIL.

To the City Council of The City of Seattle:

We, the undersigned registered voters of The City of Seattle, State of Washington, propose and ask for the enactment as an ordinance of the measure known as Initiative Measure No. __ entitled:

[established ballot title of measure]

a full, true and correct copy of which is included herein, and we petition the Council to enact said measure as an ordinance, and, if not enacted within forty-five (45) days from the time of receipt thereof by the City Council, then to be submitted to the qualified electors of The City of Seattle for approval or rejection at the next regular election or at a special election in accordance with Article IV, Section 1 of the City Charter; and each of us for himself or herself says: I have personally signed this petition; I am a registered voter of The City of Seattle, State of Washington, and my residence address is correctly stated.

WARNING: Ordinance 94289 provides as follows: "Section 1. It is unlawful for any person 1. To sign or decline to sign any petition for a City initiative, referendum, or Charter amendment, in exchange for any consideration or gratuity or promise thereof; or 2. To give or offer any consideration or gratuity to anyone to induce him or her to sign or not to sign a petition for a City initiative, referendum, or Charter amendment; or 3. To interfere with or attempt to interfere with the right of any voter to sign or not to sign a petition for a City initiative, referendum, or Charter amendment by threat, intimidation or any other corrupt means or practice; or 4. To sign a petition for a City initiative, referendum, or Charter amendment with any other than his or her true name, or to knowingly sign more than one (1) petition for the same initiative, referendum, or Charter amendment measure, or to sign any such petition knowing that he or she is not a registered voter of The City of Seattle." "Section 2. Any person violating any of the provisions of this ordinance shall upon conviction thereof be punishable by a fine of not more than Five Hundred Dollars ($500) or by imprisonment in the City Jail for a period not to exceed six (6) months, or by both such fine and imprisonment."

(*Only Registered Seattle Voters Can Sign This Petition*)

CITY OF SEATTLE

INITIATIVE MEASURE NO. __________________

AN ORDINANCE repealing Ordinance 124441 and adding a new chapter defining transportation network companies, drivers, and services, creating qualifications for drivers, requiring background checks for drivers, prohibiting pick up of street hails by drivers, requiring transportation network companies to conduct background checks, inspect vehicles, establish zero tolerance policies for drugs and alcohol, pay an annual license fee and a per trip surcharge to the Department of Finance and Administrative Services, maintaining insurance for drivers, creating provisions for charging for services; creating a Seattle Accessible Transportation Fund into which a portion of the surcharge shall be deposited and amending Chapter 5.76 of the Seattle Municipal Code accordingly; imposing penalties for violations; raising the maximum number of taxicab licenses issued by the City; requiring review of penalties and training standards for for-hire vehicles; and revising various Sections of Chapter 6.310 of the Seattle Municipal Code regarding for-hire vehicles.

NOW, THEREFORE,

BE IT ORDAINED BY THE CITY OF SEATTLE AS FOLLOWS:

Section 1. City of Seattle Ordinance 124441 is repealed in its entirety.

Section 2. A new section 6.311.100 is added to the Seattle Municipal Code as follows:

6.311.100. Purpose. The purpose of this chapter is to ensure the safety, reliability and cost-effectiveness of Transportation Network Company (TNC) services within the City of Seattle and to preserve and enhance access to these important transportation options for residents and visitors to the City.

Section 3. A new section 6.311.120 is added to the Seattle Municipal Code as follows: 6.311.120. Definitions.

A. For the purposes of this chapter, the term:

1. "Transportation network company (TNC)" means an entity licensed under this chapter and operating in the City of Seattle that uses a digital network or software application to connect a passenger to transportation network company services provided by a transportation network company driver. A transportation network company is not a taxicab association or a for-hire vehicle owner licensed under SMC chapter 6.310.

2. "Transportation network company (TNC) driver" shall mean an individual who operates a motor vehicle that is:

a. Owned, leased or otherwise authorized for use by the individual;

b. Not a for-hire vehicle under SMC chapter 6.310; and

c. Used to provide transportation network company services.

3. "Transportation network company (TNC) services" shall mean transportation of a passenger between points chosen by the passenger and prearranged with a TNC driver through a TNC digital network or software application. TNC services begin when a TNC driver accepts a requested ride through the TNC's digital network or software application, continue while the TNC driver transports the passenger in the TNC driver's vehicle, and end when the passenger exits the TNC driver's vehicle.

B. Unless the context plainly requires otherwise, the definitions in SMC section 6.310.110 apply to terms not otherwise defined in this chapter.

Section 4. A new section 6.311.140 is added to the Seattle Municipal Code as follows:

Section 6.311.140. TNC license required.

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

B. The Director shall create an application process for a TNC license that ensures compliance with section 6.311.180.

C. The annual license fee for a TNC license shall be $10,000 plus a surcharge of 10 cents per trip as described in section 6.311.180.A.4. Of the surcharge amounts paid, five cents per trip shall be deposited by the Director in the Seattle Accessible Transportation Fund as described in section 6.311.240.

Section 5. A new section 6.311.160 is added to the Seattle Municipal Code as follows:

Section 6.311.160. TNC driver applications.

A. In order for an individual to become a TNC driver, a TNC shall require the individual to submit an application to the TNC. The application shall require the individual to provide information regarding his or her address, age, drivers license, driving history, motor vehicle registration and motor vehicle insurance, and other information required by the TNC.

B. Before approving an application submitted under subsection A of this section, a TNC shall:

1. Conduct, or have a third party approved by the Director conduct, a local and national criminal background check for each applicant that includes a check of national databases specified by the Director;

2. Conduct, or have a third party conduct, a driving record check with the Department of Licensing for each applicant;

3. Provide, or have a third party provide, driver training approved by the Director for each applicant that includes information on defensive driving, enhancement of driver/passenger relations, and professional conduct; and

4. Perform, or have a third party perform, the 19 point vehicle inspection required under section 6.311.180.A.3 on each applicant's vehicle to be used to provide TNC services.

C. A TNC shall not approve an application submitted under subsection A of this section and shall disqualify an applicant or TNC driver who:

1. Has made any material misstatement or omission in the application;

2. Fails to meet any of the qualifications of a TNC driver contained in section 6.311.200;

3. Fails to complete the driver training required by section 6.311.160.B.3;

4. Does not possess a vehicle that has satisfactorily passed the 19 point vehicle inspection required by section 6.311.180.A.3;

5. Has had 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 vehicle, within seven (7) years of the date of application;

6. Has had a bail forfeiture, conviction, or other final adverse finding for severe driving violations pertaining to reckless driving or driving on a suspended or revoked license;

7. Is required to register as a sex offender pursuant to RCW 9A.44.130; or

8. Fails to meet any other qualification requirements established by the TNC.

D. Nothing in this section limits the authority of a TNC to reject an application based on the TNC's policy, provided such policy is consistent with all applicable law.

Section 6. A new section 6.311.180 is added to the Seattle Municipal Code as follows:

6.311.180. Requirements for transportation network companies.

A. A transportation network company shall:

1. Create an application process that complies with section 6.311.160 for a person to apply to become a TNC driver;

2. Maintain a website that includes the TNC's tollfree customer service telephone number and electronic mail address;

3. Conduct, or have a third party conduct, an annual safety inspection of the motor vehicle that a TNC driver will use to provide TNC services, and maintain complete documentation of such inspections. The safety inspection shall cover the following equipment:

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

b. Emergency brakes (engine stall test);

c. Steering mechanism;

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

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

f. Windshield wipers;

g. Headlights;

h. Tail lights;

i. Turn indicator lights;

j. Stop lights;

k. Front seat adjustment mechanism;

l. Doors (open, close, lock);

m. Horn;

n. Speedometer;

o. Bumpers;

p. Muffler and exhaust system;

q. Condition of tires, including tread depth;

r. Interior and exterior rear view mirrors; and

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

4. Pay a surcharge to the Director in the amount of 10 cents per completed trip originating in Seattle. For purposes of this section, a trip that involves two or more stops shall be considered a single completed trip. A TNC shall transmit any surcharges accumulated during a calendar quarter to the Director within 30 days following the end of the quarter, along with a certification under penalty of perjury that the amount transmitted is consistent with the number of completed trips arranged through the TNC during such quarter; provided, that any information disclosed to the Director shall be subject to SMC section 5.55.200.B;

5. Maintain on the TNC driver's behalf, or verify that each TNC driver maintains, a liability insurance policy or policies that:

a. Provide coverage of at least $1,000,000 per accident for accidents while the TNC driver is providing TNC services, regardless of whether the TNC driver maintains a personal insurance policy adequate to cover any portion of a claim;

b. Provide uninsured/underinsured motorist coverage of at least $100,000 per person and at least $300,000 per accident for bodily injury resulting from accidents while the TNC driver is providing TNC services; and

c. During the time that a TNC driver is logged into the TNC's digital network or software application, but the TNC driver is not providing TNC services, provide contingent liability coverage of at least $50,000 per person and at least $100,000 per accident, and at least $25,000 for property damage per accident, in the event that a TNC driver's personal insurance policy validly denies coverage under the terms of the TNC driver's personal insurance;

6. Provide TNC drivers with information about the insurance described in section 6.311.180.A.5 that is maintained by the TNC.

7. Allow TNC services using the TNC's digital network or software application to be provided only by TNC drivers approved by the TNC.

8. Establish a zero-tolerance policy on the use of drugs or alcohol while a TNC driver is logged into the TNC's digital network or software application or is providing TNC services and enforce the policy as follows:

a. 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 TNC driver the passenger reasonably suspects was under the influence of drugs or alcohol during the trip; and

b. The TNC's website and mobile application must include a phone number, website link, and email address to report a zero-tolerance complaint to the TNC, as well as the phone number and email to report a zero-tolerance complaint to the Seattle Consumer Affairs department;

9. Establish a complaint procedure that allows passengers to file complaints with the TNC through the TNC's website, mobile application, email address, or phone number.

10. Require that TNC drivers do not accept cash payments from passengers. Any payment shall be made only electronically using the TNC's digital network or software application;

11. Require that TNC drivers do not pick up street hails or otherwise solicit trips, or take trips not prearranged with the TNC driver through the TNC's digital network or software application;

12. Allow passengers to view a picture of the TNC driver and vehicle license plate number on their smart phone, tablet or other mobile device before the passenger enters the TNC driver's vehicle;

13. Maintain records relevant to the requirements of this chapter for the purposes of demonstrating compliance;

14. Require that TNC 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;

15. Provide passengers with access to a website link or option on the TNC's digital network or software application that allows a passenger to request an accessible vehicle for passengers with disabilities;

16. Conduct a criminal background check and driving record check pursuant to section 6.311.160.B1 and B2 for each TNC driver on an annual basis; and

17. Submit to the Director proof that the TNC maintains a registered agent in the City of Seattle.

Section 7. A new section 6.311.200 is added to the Seattle Municipal Code as follows:

6.311.200. Requirements for TNC Drivers.

A. A TNC driver shall:

1. Possess a valid driver's license;

2. Possess proof of registration for the motor vehicle used for TNC services;

3. Possess proof of motor vehicle insurance for the motor vehicle used for TNC services;

4. Be at least 21 years of age;

5. Adhere to standards for TNC drivers required by the TNC, including standards described in section 6.311.180.A.8, A.10, A.11, and A.14; and

6. Immediately inform the TNC of any change in the TNC driver's driving record, drivers license status, motor vehicle registration, motor vehicle insurance, or criminal record.

B. If an accident occurs involving a motor vehicle that is being used for TNC services, the TNC driver shall provide information to the other parties involved in the accident regarding all insurance covering the TNC driver's motor vehicle and shall notify the TNC of the accident.

Section 8. A new section 6.311.220 is added to the Seattle Municipal Code as follows:

6.311.220. Rates.

A. A transportation network company must make information about its rate structure publicly available. The rate structure shall also describe how tolls or charges established for roads, bridges, tunnels or ferries, if any, shall be charged to passengers.

B. A rate quote or calculation shall be provided to the passenger upon request before the passenger enters the TNC driver's vehicle.

C. Upon completion of a trip, a TNC shall transmit an electronic receipt to the passenger's email address or mobile application.

Section 9. A new section 6.311.240 is added to the Seattle Municipal Code as follows:

6.311.240. Seattle Accessible Transportation Fund.

A. There is hereby created within the City Treasury the Seattle Accessible Transportation Fund into which shall be deposited or transferred a portion of the surcharge amounts paid to the Director pursuant to section 6.311.180.A.4 equal to five cents per trip. The Director shall use funds in the Seattle Accessible Transportation Fund to support access to safe and reliable transportation options for underserved populations, including but not limited to low income and handicapped persons and persons living in underserved portions of the city. The Table of Funds in SMC chapter 5.76 shall be amended accordingly.

Section 10. A new section 6.311.260 is added to the Seattle Municipal Code as follows:

6.311.260. Violations, monetary penalties, and procedures.

A. Violations of this chapter by the TNC shall be subject to penalties including monetary penalties and license revocation. The Director shall adopt by rule the classifications of violations of this chapter by the TNC, the monetary penalties that may be assessed against the TNC for such violations, and the procedures for assessing such monetary penalties. Such classifications, monetary penalties, and procedures shall be comparable to those provided in SMC section 6.310.125 and 6.310.605. The rule may allow for revocation of a TNC's license in the event the TNC engages in a pattern or practice of repeated violations of safety requirements or other serious violations of this chapter.

Section 11. 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 for-hire 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 pre-arranged as defined by the Director by rule (Class B) ))

Section 12. 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.

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 2015. The Director shall issue 100 additional taxicab licenses again in 2016. 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 for-hire 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 13. The Department of Finance and Administrative Services shall issue a report to City Council recommending revisions in the structure and amounts of penalties applicable to for-hire vehicles and the training standards for for-hire vehicle drivers in SMC chapter 6.310 within 90 days of the effective date of this ordinance. The Department shall consult with stakeholders regarding such revisions. The Department shall recommend revisions to these provisions of SMC chapter 6.310 to reflect the current economic environment in which for hire vehicles operate while continuing to protect public safety, and to make such provisions comparable to those applicable to transportation network companies.

DWT 24119753v1 0041661-000002

DWT 24119753v1 0041661-000002