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Proposed Rules: Closed to Comments

Agency:
Comment By: 
Thursday, June 29, 2017
Proposed Rules Content: 

Statement of Basis and Purpose

On February 16, 2017, the New York City Taxi and Limousine Commission (“TLC”) received a Petition to Initiate Rule Making from the Independent Drivers Guild to establish rules governing tipping in the For-Hire Vehicle (“FHV”) industry.  The Independent Drivers Guild is a nonprofit labor organization that represents For-Hire Vehicle Drivers that drive for some of the larger For-Hire Vehicle bases.

Under current rules, taxis must offer passengers the ability to tip drivers using cash or a credit card.  However, no such rule exists for FHV bases.  At an April 6, 2017 hearing on driver economics, and in over 2,000 e-mails TLC received in support of the Petition, the TLC heard from drivers that many bases require passengers to pay the fare using a credit card, but do not allow for tipping on a credit card.  Passengers that book trips through such bases that do not have any cash on them are unable to tip their drivers if they wish to do so, leaving both passengers and drivers at a disadvantage. 

The Petition specifically called on the TLC to initiate rulemaking to require FHV bases that allow passengers to book trips through smartphone applications to include an in-app gratuity option. These proposed rules incorporate the proposal put forward by the Petition, but are applicable to all bases, not just those that use smartphone applications, to ensure that all passengers can tip drivers seamlessly, regardless of whether they used an app or called a car service for a ride. 

The proposed rules would require FHV bases to allow passengers to tip drivers using the same method of payment they use to pay for the fare. Specifically, if a company restricts fare payment to payment by credit card, then the company must permit tipping using a credit card. Companies which only accept cash, would only be required to permit tipping in cash.

Bases may continue to allow passengers to tip using other payment methods, but they must allow passengers to tip using the same payment method they use to pay for the fare. Allowing tipping using the same payment methods used for paying the fare will make it easier for passengers that want to tip to do so.

The proposed rules would also require bases to remit to drivers the entirety of all of their tips, regardless of the payment method used to tip the driver.

 

The Commission’s authority for these rules is found in section 2303 of the New York City Charter and section 19-503 of the Administrative Code.

Subject: 

FHV Tipping Rules

Location: 
TLC Commission Meeting Room
33 Beaver Street 19th Floor
New York, NY 10004

Adopted Rules: Closed to Comments

Adopted Rules Content: 

In accordance with TLC Rule 58-21(c)(5)(xi)D, the TLC amends its rules to increase the credit card surcharge chargeable to lessors of taxicab medallions by an equivalent of $1 per shift.  This change is being made because credit card usage has continued to increase and the formula for recalculating the surcharge contained in TLC Rule 58-21(c)(5)(xi)D indicates that an increase in the surcharge of $1 per shift is warranted. 

The Commission’s authority for this rule change is found in section 2303 of the New York City Charter and section 19-503 of the New York City Administrative Code.  

Effective Date: 
Sun, 06/22/2014

Adopted Rules: Closed to Comments

Adopted Rules Content: 

 

 

Statement of Basis and Purpose

 

 

On October 2, 2007 Mayor Bloomberg issued Executive Order 106 (EO 106) which calls for the City to implement a unified billing, payment, and collection strategy.  EO 106 also requires all City agencies to establish and implement a system for accepting credit and debit card payments for fees, fines, sales of products and any other suitable transactions.

 

To further implement this policy, the Commissioner of Finance is adopting a rule that establishes a consistent policy for accepting credit card payments and a uniform fee to defray the cost incurred by the City from credit card transactions.

 

Section 5(c) of the General Municipal Law and section 11-105(3) of the Administrative Code of the City of New York authorize the City to charge and collect a reasonable and uniform fee as a condition of accepting a credit and debit cards as means of payment of a fine, civil penalty, tax, fee, rent, rate, charge or other amount owed to the City.  These laws require that the fee not exceed the cost incurred by the City in connection with such credit and debit card transactions, including any fee payable by the City to the card issuer.

 

Section 1504 of the New York City Charter requires the New York City Department of Finance to perform those functions and operations of the City that relate to the administration and collection of taxes, assessments and charges imposed by the City. Pursuant to that authority, the Department of Finance is authorized to promulgate rules concerning a fee as a condition of accepting a credit or debit card for payment of City charges.

 

The rule applies to “covered” City agencies, defined as mayoral agencies described by section 385 of the New York City Charter, and to other agencies listed in the proposed rule.  Other non-covered City agencies could, via rulemaking, opt into the rule.

 

The amendment requires that covered City agencies charge a nonrefundable fee of 2.49% of the amount paid for credit and debit card transactions. The amendment does not apply to checks, money orders, cash or other forms of electronic payments such as eChecks -- these forms of payment will be accepted without a fee.

 

The fee will be refunded when the credit card payment was the result of certain technical errors, not caused by the customer, such as a duplication of a charge or an erroneous entry by a covered agency. The fee will also be refunded when the charge resulted from a fraudulent payment not made by the customer where the customer notifies the agency of the fraudulent payment.

 

The fee will not be imposed for credit or debit card payments:

·        for parking time purchased from a “muni-meter,” because the administrative expense of processing the fee from often small purchases of parking time is not cost effective;

·        for retail transactions for the sale of merchandise sold by a payee agency, such as the sale of merchandise at the CityStore;

·        for payments made as donations, except when the donation is paid as part of an existing transaction for which a fee is charged;

·        for re-payments of Medicaid, Cash Assistance, or Supplemental Nutrition Assistance Program benefits for over-payments by any of these programs,  and for payments made by beneficiaries to reduce their income in order to qualify for eligibility for Medicaid, because the administrative costs associated with these payments can be absorbed by state and federal agencies;

·        for fees paid for emergency medical ambulance services as these credit card transaction costs have already been incorporated into the cost of operating the City's emergency services;

·        for birth and death certificates issued by the Department of Health and Mental Hygiene's Vital Records Bureau because these records are processed through a third party service, and the City does not incur any additional credit card related expenses, and where credit card is the only means of payment permitted for such charge.

 

A particular credit or debit card will not be accepted for payment if that particular credit or debit card does not allow for charging convenience fees.

 

The rule phases in the fee for two groups of agencies listed in the rule. The agencies in the first group will start complying with the rule 13 months after its final publication in the City Record. The agencies in the second group will start complying with the rule 19 months after its final publication in the City Record.  These timeframes will allow the Department of Finance to work with all of the agencies to ensure that the new fee is implemented without interrupting their day-to-day operations or causing reporting, reconciliation, or fiscal issues.  An agency may start complying with the rule earlier if it notifies the Department of Finance that implementation would not materially impede the agency’s operations or services to the public.  If needed, agencies in both groups that are being phased in could obtain a delay in charging and collecting the fee of up to six months of additional time beyond the 13-month and 19-month timeframes that would otherwise apply.

 

 

Effective Date: 
Mon, 07/08/2013

Proposed Rules: Closed to Comments

Agency:
Comment By: 
Friday, December 20, 2013
Proposed Rules Content: 

 
Statement of Basis and Purpose of Proposed Rule

 

 On October 2, 2007 Mayor Bloomberg issued Executive Order 106 (E.O. 106), which calls for the City to implement a unified billing, payment, and collection strategy.  E.O. 106 requires all City agencies to establish a system for accepting credit and debit card payments for fees, fines, sales of products, and any other suitable transactions. 

 

To implement this order, the Commissioner of Finance adopted a rule that establishes a consistent policy for accepting credit and debit card payments and a uniform fee to defray the cost incurred by the City from credit and debit card transactions.  The rule requires that City agencies covered by the rule charge a nonrefundable fee of 2.49% of the amount paid for credit and debit card transactions.

 

The rule does not apply to checks, money orders, cash, or other forms of electronic payments such as eChecks.  These forms of payment are accepted without a fee.  The rule also includes exceptions for certain agencies and charges.  This proposed rule adds to the exceptions credit and debit card payments paid to the Department of Parks and Recreation for tennis permits, summer camps, and recreation center memberships, because these payments are processed through a third party service, and the City does not directly incur any additional credit or debit card related expenses when accepting them.

 

The Department of Finance’sauthority for these rules is found in New York General Municipal Law § 5(c), New York City Administrative Code § 11-105, and New York City Charter §§ 1043 and 1504.

 

Subject: 

Amendment to Rules for Credit and Debit Card Fees

Location: 
NYC DOF Public Hearing Room
345 Adams Street 3rd Floor
Brooklyn, NY 11201
Contact: 

Ms. Joan Best at 718 403-3669

Download Copy of Proposed Rule (.pdf): 

Proposed Rules: Closed to Comments

Agency:
Comment By: 
Monday, April 8, 2013
Proposed Rules Content: 

 

 

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.

 

 

Subject: 

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.

Location: 
33 Beaver Street 19th Floor
New York, NY
Contact: 

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

Download Copy of Proposed Rule (.pdf):