Leasecap Modifications

Proposed Rules: Closed to Comments

Comment By: 
Monday, April 8, 2013
Download Copy of Proposed Rule (.pdf): 



Statement of Basis and Purpose of Proposed Rule


These rules amend the Taxi and Limousine Commission’s rules governing the leasing of taxicabs and taxicab medallions. The Commission’s authority to adopt these rules is found in section 2303 of the New York City Charter and section 19-503 of the New York City Administrative Code.


Following hearings held on May 31 and July 9, 2012, on July 12, 2012, the Commission approved rules changing lease caps and certain other rules pertaining to the leasing of taxicabs and taxicab medallions, as well as rules regarding taxicab rates of fare. The fare rules took effect on September 4, 2012 and the leasing rules took effect on September 30, 2012.


Following adoption of these rules, participants from the taxicab industry met with the TLC and identified a number of instances where a technical clarification or qualification to the rules passed on July 12 might be helpful. In addition, in accordance with the settlement of the lawsuit “Metropolitan Taxicab Board of Trade and JTL Management et. al. v. The New York City Taxi & Limousine Commission et. al” (Index 103849/2012), which resulted in a preliminary injunction against certain of the leasing rules, the TLC agreed to propose certain other changes to the rules. The TLC proposes these rules to address some of the comments received after adoption of the first set of changes to the rules.


The proposed rules:


  • Clarify provisions regarding responsibility for service and maintenance


  • Change how credit card charges are paid and implement a surcharge payable by a driver coupled with a lower lease cap


  • Clarify that an agent cannot charge a surcharge in addition to the surcharge collected under the lease cap rules.


  • Clarify the provisions requiring the pro-rating of lease amounts if the vehicle is unavailable. Allow late charges for late payments in certain instances.


  • Allow owner fines for missed inspections, suspended drivers and illegal subleases to be charged to drivers in certain circumstances.


  • Clarify that reasonable cancellation charges can include repossession fees.


  • Modify marking specifications to reflect the recent elimination of exterior fare decals. Modify penalties for retaliation against complaining lessees.


  • Provide a test for determining whether financing of a vehicle by a public corporation is related to a medallion lease when the lessor holds stock in the public corporation.



Public Hearing

The Taxi and Limousine Commission is considering changing its rules. The change would amend rules regulating taxicab lease caps- and the maximum dollar amount per shift for which taxis can be leased and changing some of the ways in which fares are calculated.

Public Hearing Date: 
Thursday, April 11, 2013 - 10:00am

Taxi and Limousine Commission, Office of Legal Affairs, 33 Beaver Street – 22nd Floor, New York, New York 10014

33 Beaver Street 19th Floor
New York, NY