EXECUTIVE SUMMARY MAYOR AND BOARD OF ALDERMEN. Date: 10/6/2015

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1 XI.14 EXECUTIVE SUMMARY MAYOR AN BOAR OF ALERMEN Submitted By: Rachel S. epo, Assistant City Attorney Meeting ates Workshop: 9/9/2015 Business Meeting: Public Meeting: 10/15/2015 ate: 10/6/2015 Agenda Item: An Ordinance to Amend Chapter 23 of the City Code to Establish an Assessment on Transportation Network Services Background Information: The Maryland Annotated Code, Public Utilities Article, was amended by the General Assembly by SB 868, effective July 1, Under this new State law, municipalities may impose assessments of up to $.25 per trip, subject to certain requirements, on "transportation network services" - i.e., rides given to passengers by "network service operators" after being connected with those passengers by "transportation network companies" such as Uber and Lyft. The proposed ordinance ("Ordinance") amends Chapter 23 of the Frederick City Code, entitled "Taxicabs", by renaming it "Vehicles for Hire" and adding a new article entitled "Transportation Network Services". This article would impose an assessment of $.25 per trip on transportation network services in accordance with State law. A transportation network company must collect the assessments and remit the revenue to the Comptroller each quarter. The Comptroller will then disburse the revenue to the City accordingly. The revenue generated from the assessments must be used for transportation purposes. Because of the notice requirements of the State law, the Ordinance will go into effect on March 1, Committee Recommendations if Applicable: The Taxicab Commission discussed this matter at its meeting on July 17, Fiscal Impact: Imposition of assessment will generate revenues to be used for transportation purposes. Recommendation: Approval Supporting ocumentation: Ordinance Relevant Sections of M Code, Public Utilities Article

2 irector:~t. MJj Concurrence Needed: Finance/Budget: Purchasing: Public Works: Engineering: Legal: Police: Planning: Human Resources: Other: Initials ate ate: 1!b/15

3 AN ORINANCE concerning Vehicles for hire THE CITY OF FREERICK MAYOR AN BOAR OF ALERMEN ORINANCE NO: FOR the purpose of renaming Chapter 23 of the Frederick City Code to be "Vehicles for Hire"; and imposing a certain assessment on transportation network services. BY renaming Chapter 23 The Code of the City of Frederick, 1966 (as amended) BY adding Article VII Chapter 23 The Code of the City of Frederick, 1966 (as amended) SECTION I. BE IT ENACTE AN ORAINE BY THE BOAR OF ALERMEN OF THE CITY OF FREERICK that Chapter 23 of The Code of The City of Frederick, 1966 (as amended) be renamed "Vehicles for Hire." SECTION II. BE IT FURTHER ENACTE AN ORAINE BY THE BOAR OF ALERMEN OF THE CITY OF FREERICK that Chapter 23 of The Code of The City of Frederick, 1966 (as amended), Article VII be added to read as follows: Sec efinitions. ARTICLE VII. TRANSPORTATION NETWORK SERVICES The term "transportation network services" has the meaning given in the Annotated Code of Maryland, Public Utilities Article, Sec Assessment offees. Pursuant to the authority and subject to the terms of of the Annotated Code of Maryland, Public Utilities Article, a fee of $.25 will be assessed for each trip generated by a transportation network service company originating within the City. SECTION III. In the event any provision, section, sentence, clause, or part of this ordinance shall be held to be invalid, such invalidity shall not affect or impair any remaining provision, section, sentence, clause, or part of this ordinance, it being the intent of The City of Frederick that such remainder shall be and shall remain in full force and effect. SECTION IV. This ordinance shall take effect on March 1, 2016, and all other ordinances or parts of ordinances inconsistent with the provisions of this ordinance will as of that date be repealed to the extent of such inconsistency. Page 1 of 2

4 APPROVE: PASSE: RANY MCCLEMENT, Mayor RANY MCCLEMENT, President, Board of Aldermen Approved for Legal Sufficiency: City Attorney Page 2 of 2

5 M Code, Public Utilities, efinitions In general (a) In this title the following words have the meanings indicated. Central Repository Criminal Justice Information System (c) "Criminal Justice Information System" has the meaning stated in of the Criminal Procedure Article. For-hire driver's license (d) "For-hire driver's license" includes: (1) a passenger-for-hire license; and (2) a taxicab driver's license. Limousine service (e)(l) "Limousine service" means operating a motor vehicle for hire using a motor vehicle classified as a Class Q (limousine) vehicle under of the Transportation Article. (2) "Limousine service" does not include providing taxicab services, sedan services, or transportation network services. Operate a motor vehicle for hire (f)(l) "Operate a motor vehicle for hire" means to transport or offer to transport a person in a motor vehicle in exchange for remuneration. (2) "Operate a motor vehicle for hire" includes: (i) providing passenger-for-hire services; and (ii) providing taxicab services. Provide passenger-for-hire services (g) "Provide passenger-for-hire services" includes:

6 (1) providing limousine services; (2) providing sedan services; and (3) providing transportation network services. ProVide taxicab Serv ices (h) "Provide taxicab services" means to operate a motor vehicle for hire that, in addition to other services: (1) is advertised or held out to the public as a taxicab or as providing taxicab services; (2) regardless of how or when engaged, provides for-hire service between points chosen by the passenger and for a fare that is based on the distance traveled, the time elapsed, or both; or (3) is engaged by the passenger for service between points chosen by the passenger that is provided through: (i) hail from the street or other location; or (ii) request made at a taxi stand or other location where the motor vehicle is standing and waiting for a request for service. Remuneration (i) "Remuneration" includes: (1) a fare; (2) a fee; (3) a toll; (4) a gratuity; and (5) personal services.

Sedan service (j)(l) "Sedan service" means operating a motor vehicle for hire using a motor vehicle designed to carry 15 or fewer individuals, including the driver.

7 Sedan service (j)(l) "Sedan service" means operating a motor vehicle for hire using a motor vehicle designed to carry 15 or fewer individuals, including the driver. (2) "Sedan service" does not include providing taxicab services, limousine services, or transportation network services. Texh~eb dl ioel'3 li eel i3c (k) "Taxicab driver's license" means a license issued by the Commission to an individual that provides taxicab services. S 0 a 0 o o ero t so tlo t 0 I!art e a trans 0 atio net 0 o t " " r operator's Icense 0 k therwis aut orized b ra s 0 atlon etwo se ce " ces" means e acti it! s f. an erato durin

8 II) transportation networ coverage perloi:l two, during which the operator accepts a ride regu.es rom a passenger that Is prearranged through a transportation network company's dlglta~ I"..."."." e cat r determined ocatlon 0 Ic u he asse to s 2) "Transportation networl< se c " I clui:le rovidfn taxicab services eda

9 M Code, Public Utilities, Imposition of assessments efinitions (a)(l) In this section the following words have the meaning indicated. 2) "Assessment' means a cliarge impose jurisdiction on eacti.. (3) "Exempt jurisdiction" means a county or municipality that imposed a tax, fee, or charge on for-hire transportation services provided on a per ride or per passenger basis in that county or municipality on or before January 1, Authority of exempt jurisdiction not limited (b) This section does not limit the authority of an exempt jurisdiction to impose an assessment, a tax, a fee, or a charge on for-hire transportation services, including transportation network services. d e of h s section a count or munici alit ma 'urisdl a sess ent ut orize this section a no excee e revenue generat sessment auttio Ize u der t IS section s a e use fo Imposition of assessment by county (e)(l) This subsection applies to a county that: (i) is not authorized to impose an assessment under subsection (d) of this section; and (ii) has not imposed an assessment by July 1, 2016.

10 (2) Before the county may impose an assessment in a municipality, the county shall: (i) notify the municipality of the county's intent to impose an assessment on transportation network services that originate in the municipality; and (ii) provide the municipality reasonable time to pass an ordinance authorizing the imposition of an assessment. assess ent t e t (ii) if the county imposes an assessment, provide the county reasonable time to notify the Comptroller before the municipality's assessment becomes effective. U 'CI 't all a 1m os ses en hall noti h a f. the assess ent n Ii s s o n tak effe ollectlon, remittance, accounting, ancl use of revenue g)(l) This subsection governs the collection, remlttanc~e"',"'a""c"'c"' esset oeb ou"n'"'t'"ln"'g""""":":"""':-:-"'f."""e"'v"""''''e==o':::!l on w r co n hall e st 0 m ose a exem t 'urlsdidion on t d a d uarter

the trans 0 aro networ 0 an 0 (3)(i) Subject to subparagraph (ii) of this paragraph, from the assessments and revenues imposed by counties and municipalities, the Comptroller shall distribute each

11 the trans 0 aro networ 0 an 0 (3)(i) Subject to subparagraph (ii) of this paragraph, from the assessments and revenues imposed by counties and municipalities, the Comptroller shall distribute each quarter the amount necessary to administer the assessments to an administrative cost account. (ii) The amount distributed to the administrative cost account may not exceed 5% of the revenue from the assessments and other revenue. 4) After ma n9 tile alstr tlutlon require tly paragraph {2 0 he end of each calendar quarter, the Comptroller shall ~....w.si...!o===.u..wu>l="""""""""""'-'''' o 'ci t at (ii) Records provided to the Comptroller by a transportation network company under this subsection are not subject to release under the Maryland Public Information Act or any other law. (iii) Subject to subparagraph (iv) of this paragraph, the Comptroller may not disclose records or information provided by a transportation network company unless the disclosure is required by a subpoena or court order. (iv) If a subpoena or court order requires the Comptroller to disclose information provided by a transportation network company, the Comptroller shall promptly notify the transportation network company before disclosing the information.

(House Bill 3) Public Utilities Transportation Network Services and For Hire Transportation Clarifications

(House Bill 3) Public Utilities Transportation Network Services and For Hire Transportation Clarifications Chapter 28 (House Bill 3) AN ACT concerning Public Utilities Transportation Network Services and For Hire Transportation Clarifications FOR the purpose of clarifying certain provisions relating to transportation