Taxicab Technology Enhancement Providers
Proposed Rules: Closed to Comments
Statement of Basis and Purpose of Proposed Rule
The TLC requires all medallion taxicabs to be equipped with a Taxicab Technology System (“T-PEP”)1, which processes credit, debit, and prepaid card payments, enables taxicab drivers to receive text messages from the TLC, allows the TLC to collect electronic trip sheet data, and possesses a Passenger Information Monitor (“PIM”), which displays content to taxicab passengers.
Currently, medallion taxicabs must acquire a T-PEP system from a vendor under contract with the TLC. In 2005, the TLC issued a Request for Proposals (“RFP”) using the innovative procurement method, seeking one or more vendors to build, install, and maintain equipment that provided the capabilities described above. In 2006, the TLC signed contracts with four vendors to provide T-PEP systems and services to medallion taxicabs. One of the four vendors subsequently went into bankruptcy, leaving three remaining vendors to install and service T-PEP systems in medallion taxicabs. TLC did not renew one vendor’s contract and thus it expired in 2011. The remaining two vendors’ contracts are scheduled to expire on February 15, 2013.
Advances in technology since the original T-PEP RFP have given the TLC reason to revisit the requirements and standards of T-PEP systems in order provide medallion owners, taxicab drivers, and taxicab passengers with the most up-to-date service and technology. Rather than extend the remaining T-PEP contracts or engage in the procurement process again, the TLC intends to govern the relationship between medallion owners and T-PEP vendors by means of an Authorized Provider approach.
Under an Authorized Provider approach, any vendor who can meet TLC requirements can apply to become an Authorized T-PEP Provider and be placed on a list of Authorized T-PEP Providers from which medallion taxicabs can select an Authorized Provider from whom to purchase, lease, or use a T-PEP system. This approach will maintain provider competition and allow the TLC to create and enforce consistent service standards for all Authorized T-PEP Providers.
Additionally, the TLC believes that an Authorized Provider approach will enable it to revisit and revise standards as technology and other factors continue to advance. The TLC believes that the competition permitted by an Authorized Provider approach is key to both keeping prices affordable and improving service quality. Allowing multiple vendors to develop and provide T-PEP systems is important for fostering innovation and giving medallion owners choices in providers.
In order to maintain the ability for multiple vendors to provide T-PEP systems—while maintaining TLC oversight, quality control, and a consistent passenger experience—these proposed rules outline the process and standards for becoming an Authorized T-PEP Provider. These rules establish a formal procedure by which a vendor can become an Authorized T-PEP Provider, set forth technical requirements for T-PEP systems supplied by Authorized Providers, and establish the services to be provided by such Providers.
Requirements for becoming an Authorized T-PEP Provider include:
- Providing an acceptance and usability testing plan and demonstrating that an independent third party certifies that the T-PEP and the T-PEP Provider meet all of the requirements in Chapter 75
- Providing a security testing certification from an independent third party
- Providing a disaster recovery plan
- Providing proof of various types of insurance
- Completing a financial disclosure form
- Entering into a Memorandum of Understanding with the TLC
The proposed rule changes are organized as follows:
- Additions to Definitions (Chapter 51) to include and modify terms related to T-PEP.
- Amendments to require medallion owners to equip their Taxicabs with T-PEP systems obtained from Authorized T-PEP Providers (Chapter 58).
- Technical amendments to conform Chapters 63, 64 and 67 to the Authorized Provider approach.
- Addition of Chapter 75 which establishes a formal procedure by which a vendor can become an Authorized T-PEP Provider, sets forth technical requirements for T-PEP systems, and establishes the services to be provided.
The Commission’s authority for this rules change is found in section 2303 of the New York City Charter and section 19-503 of the New York City Administrative Code.
1 “T-PEP” is the acronym for Taxicab Passenger Enhancement Program and is the short form for Taxicab Technology System.