Chapter 5.30
VEHICLE FOR HIRE SERVICES
Sections:
5.30.020 Title, intent and purpose.
5.30.030 Business license required for operators and drivers – Regulatory license fee.
5.30.050 Insurance requirements.
5.30.060 Operational requirements.
5.30.080 Denial, suspension, and revocation.
5.30.090 License effective date.
5.30.010 Definitions.
As used throughout, unless the context clearly indicates otherwise, the following words and phrases shall mean:
“City” means city of Coos Bay.
“Digital dispatch system” means an internet-based software application, website, platform or interface that allows for the solicitation, arrangement or provision of vehicle for hire services and the display of rates, calculation of fares or acceptance of payment for vehicle for hire services.
“Driver” means any individual person who drives a vehicle for hire within the city.
“Limousine” means any luxury motor vehicle for hire whose chassis and wheelbase have been lengthened beyond the original manufacturer’s specifications, whether at the time of production or after.
“Limousine company” means any person operating one or more limousines for hire, other than as a driver, regardless of the legal form of the entity and regardless of whether the limousines so operated are owned by the company, leased, or owned by individual members of an entity.
“Operator” means any person engaged in the business of furnishing or operating a business defined by this chapter whether upon contract or by offering such service to the public generally.
“Taxi” means any motor vehicle for hire, other than a limousine or a transportation network company.
“Taxi company” means any person operating one or more vehicles for hire, other than as a driver, regardless of the legal form of the entity and regardless of whether the taxis so operated are owned by the company, leased, or owned by individual members of an entity. Taxi companies do not include transportation network companies.
“Transportation network” means one or more drivers working as independent contractors and utilizing a digital dispatch system and using personal motor vehicles in the provision of transportation services.
“Transportation network company (TNC)” means a person that operates or facilitates a transportation network.
“Transportation network vehicle (TNV)” means any personal motor vehicle which is used as a vehicle for hire and is part of a transportation network.
“Vehicle for hire” means any motor vehicle used for the ground transportation of passengers for compensation within the city, including taxis, limousines and transportation network vehicles. The following vehicles shall not be considered as vehicles for hire for the purposes of this chapter, and are forbidden from operating as a taxi, limousine, or transportation network vehicle: property delivery vehicles used for delivering property exclusive of passenger transportation; shuttle vehicles and buses used for providing passenger transportation over a fixed route and time schedule; courtesy vehicles used by a hotel, motel, car rental company, residential home, parking facility, or other business to transport that business’s clients when transportation is secondary to the business’s primary purpose and the transportation is free or contained in the general overhead of the business; ambulances equipped and staffed so as to be capable of providing emergency medical services in conjunction with passengers to be capable of providing emergency medical services in conjunction with passenger transportation; volunteer-driven vehicles operated by a driver who is reimbursed for basic mileage expenses and who does not receive wages, salary, or other compensation; and nonmotorized vehicles such as horse-drawn buggies.
“Vehicle for hire agency” means a business engaged in furnishing or providing one or more vehicles for hire through a digital dispatch system or by any other means, regardless of whether such business has employees or delivers its services through independent contractors, including a transportation network company.
“Vehicle for hire driver” means any person who carries on the vocation of driving a vehicle for hire. [Ord. 555 § 2, 2022].
5.30.020 Title, intent and purpose.
This chapter shall be known and may be cited as the “vehicle for hire services chapter of the city of Coos Bay.” The Coos Bay city council finds and declares that the purpose of this chapter is to promote the safety and welfare of the general public by regulating vehicle for hire operators and their drivers within the city of Coos Bay, as authorized by ORS 221.485 and 221.495. Nothing contained in this chapter is intended or shall be construed to create any liability on the part of the city, its officers or employees for any injury or damage related to any provision of this chapter, or by reason or in consequence of any act or omission in connection with the implementation or enforcement of this chapter on the part of the city, its officers, or employees. [Ord. 555 § 3, 2022].
5.30.030 Business license required for operators and drivers – Regulatory license fee.
(1) No operator shall conduct business in the city without obtaining the applicable regulatory license set out in subsection (2) of this section.
(2) The city may issue a license to an operator if the company certifies that it is in compliance with all requirements of this chapter, including but not limited to: a completed city business license application, provide a negative preemployment drug screen on all drivers (within 48 hours of application submission), provide a completed vehicle inspection from an Automotive Service Excellence (ASE) certified auto mechanic shop on all vehicles intended to be used as a vehicle for hire, provide a background check for the past seven years to include a National Sex Offender Registry search on all drivers (the background check could be completed by a qualified third party or request the city of Coos Bay to conduct the background check (see CBMC 5.30.040(3))), driver and insurance requirements, operating standards and any other code requirements, and actually meets all applicable standards and requirements.
(3) The city may include conditions, restrictions or special provisions in the license, including but not limited to conditions related to routes, times of operation, lighting, alternative requirements or means of meeting requirements, or other conditions, if, in the sole discretion of the city, the applicant’s vehicles or operations warrant conditions, restrictions or special provisions.
(4) The license issued under this chapter is valid for one calendar year. Any renewal must be approved by the city prior to the expiration date in order for the operator to continue providing vehicle for hire services within the city.
(5) The application fee shall be paid to the city at the time of submitting both initial and renewal license applications.
(6) No operator or driver shall conduct business in the city without a valid business license. [Ord. 555 § 4, 2022].
5.30.040 Driver requirements.
(1) Drivers shall be at least 21 years of age and shall possess a valid driver license, proof of motor vehicle registration, and proof of current automobile liability insurance that meets the requirements of this chapter and state law.
(2) Every operator shall maintain accurate, current records for all drivers employed by, contracting with, or otherwise affiliated with the company, including all drivers accessing the company’s digital network to operate in the city. The records shall include the driver’s name, date of birth, address, social security number, criminal background check results, driver’s license information, motor vehicle registration, and automobile insurance. Operators shall provide a person in compliance with this section written notice of compliance, who shall then submit the notice to the city as part of the business license application required by CBMC 5.05.080.
(3) Prior to permitting a person to operate as a driver, and annually thereafter, the operator shall conduct, have a qualified third party conduct, or request the city conduct, a criminal background check; if the city conducts the criminal background check, the operator will receive a pass/fail result for their driver(s) and will not be required to have these records on file. The criminal background check shall include a search of no less than seven years of history, unless prohibited by law, in which case the duration of the search shall be the maximum number of years permitted by law. The criminal background check shall include local, state, and national criminal history databases and all accessible sex offender registries. Any person who is on a sex offender registry or any person that has a record of a felony conviction within the previous seven years may not act as a driver. A record of a conviction of any of the following within the previous seven years will also disqualify a person from acting as a driver: crimes involving driving under the influence of alcohol or controlled substances, sexual offenses, or crimes involving physical harm or attempted physical harm to a person. The company or its agent shall maintain records of a criminal background check for a period of at least two years. For purposes of this section, the term “conviction” includes convictions, bail forfeitures, and other final adverse findings.
(4) An operator must revoke a driver’s authority to operate as a driver for their company and inform the city if it finds at any time that the standards set forth in this section are no longer being met by the driver. The operator shall only reinstate a driver upon a finding by the company that all standards are again being met by the driver. [Ord. 555 § 5, 2022].
5.30.050 Insurance requirements.
(1) For all required insurance, operators shall provide certificates of insurance naming the city, its officers, agents, and employees as additional insured parties and give at least 30 calendar days’ notice to the city before a policy is canceled, expires, or has any reduction in coverage.
(2) Insurance requirement of this section shall be satisfied by insurance issued by a licensed insurer or an eligible surplus lines insurer in the state of Oregon.
(3) The insurance limits for operators are subject to statutory changes as to maximum limits of liability imposed on municipalities of the state of Oregon during the permit’s term, or other statutory changes.
(4) The adequacy of insurance coverage is subject to the review and approval of the city.
(5) Every operator shall maintain continuous, uninterrupted coverage for the duration of the license and any operations in the city. Any lapse in insurance coverage, even if it is later backdated by the insurance company, is a violation of this chapter.
(6) Operators shall secure and maintain commercial general liability insurance and auto liability with limits of not less than $1,000,000 per occurrence for claims arising out of, but not limited to, bodily injury and property damage incurred in the course of operating in the city.
(7) Taxi companies operating any motor vehicles shall secure and maintain commercial general liability with limits not less than $1,000,000 per occurrence and commercial automobile liability insurance covering those vehicles, with a combined single limit of not less than $1,000,000 per occurrence for claims arising out of, but not limited to, bodily injury and property damage incurred in the course of operating in the city.
(8) TNC Service Periods Defined.
(a) Period 1. The TNC driver has logged into the app or is otherwise connected to the TNC’s digital network, but has not yet accepted a request for a ride from a passenger. For example, the app is open and the driver is waiting for a match.
(b) Period 2. A passenger match has been accepted, but the passenger is not yet picked up. For example, the driver is on the way to pick up the passenger.
(c) Period 3. The passenger is in the vehicle.
(9) Upon city request or as part of an application, TNCs shall provide proof of current valid insurance for city approval covering all affiliated TNC drivers and vehicles for hire operating for such company and satisfying the minimum requirements of Periods 1, 2 and 3.
(10) All TNCs shall maintain and provide the city with proof of the following liability coverages:
(a) Primary automobile insurance coverage during Period 1, with minimum liability limits of $50,000 per person for death and injury, $100,000 per incident for death and injury, and $25,000 for property damage, plus any other state compulsory coverage.
(b) Primary automobile and commercial general liability coverage during Periods 2 and 3 with minimum liability limits of $1,000,000 in combined single limit coverage for death, personal injury and property damage per incident; and $1,000,000 in combined single limit under/uninsured motorist coverage for death, personal injury and property damage per incident.
(c) The required automobile liability insurance shall specifically recognize the driver’s provision of TNC or vehicle for hire services and shall comply with the laws of the state of Oregon and/or other applicable governing bodies.
(11) TNC drivers shall be responsible for maintaining all personal automobile liability insurance as required by state law. [Ord. 555 § 6, 2022].
5.30.060 Operational requirements.
(1) Records Management. All vehicle for hire businesses shall maintain records of all trips made by all drivers for at least one year from the date of the trip. The data may be aggregated and/or anonymized, and shall at a minimum include the locations by ZIP Code of trip origination and destination, vehicle miles traveled, trip origination and completion times, trip duration, and passenger wait times from a driver’s acceptance of a request for passenger pick-up. The city may require the vehicle for hire business to enter a data sharing agreement in order to receive a license.
(2) Vehicle Markings. All vehicles operating for a TNC or taxi company shall be clearly marked with the company name or logo. Vehicles operating for a taxi company shall include the company name or logo, phone number and a vehicle identification number in plain sight. Vehicles operated solely for TNC services shall be clearly marked as operating for the TNC, although any vehicle marking requirements imposed by a TNC may apply. The TNC’s software application or website shall display for the passenger the make, model and license plate number of the TNC vehicle.
(3) Ride Arrangements. TNC drivers may not accept street hails, and may only accept rides arranged through a TNC’s digital network.
(4) Use of Direct Route Required. A vehicle for hire driver employed to carry a passenger to a definite point shall take the most direct route possible that will carry the passenger safely and expeditiously to the destination.
(5) Operators shall implement and maintain at all times a zero-tolerance policy on the use of drugs or alcohol applicable to all drivers employed by or affiliated with the company while providing vehicle for hire services. Companies shall provide notice of the zero-tolerance policy on their website and/or have it clearly displayed in each vehicle. The notice must include contact information to report a complaint about a driver for possible violation of this policy. A company shall immediately suspend a driver upon receipt of a passenger complaint alleging violation of the zero-tolerance policy for at least the duration of the investigation of the complaint and the city of Coos Bay must be notified of suspension within 48 hours.
(6) Drivers. Operators shall implement and maintain at all times a zero-tolerance policy on the use of drugs or alcohol applicable to all drivers employed by or affiliated with the company while providing vehicle for hire services. Companies shall provide notice of the zero-tolerance policy on their website and/or have it clearly displayed in each vehicle. The notice must include contact information to report a complaint about a driver for possible violation of this policy. A company shall immediately suspend a driver upon receipt of a passenger complaint alleging violation of the zero-tolerance policy for at least the duration of the investigation of the complaint and the city of Coos Bay must be notified of suspension within 48 hours.
(a) Notwithstanding subsection (5) of this section, it shall be unlawful for any person to smoke in a vehicle for hire if oxygen tanks or other devices containing inflammable materials are present in the vehicle. In addition, is shall be unlawful for any person to smoke in any vehicle for hire in the presence of any passenger without the consent of such passenger. Operators must provide reasonable accommodations to passengers with disabilities, including passengers accompanied by a service animal, passengers with hearing and visual impairments and passengers with mobility devices and must comply with all applicable requirements of the Americans with Disabilities Act.
(7) Charges for Vehicle for Hire Services.
(a) Calculation and Display of Charges. All charges for vehicle for hire services shall be calculated and displayed by a taximeter or digital dispatch system. When charges are to be displayed by a taximeter, the taximeter shall be placed in the vehicle for hire so that the reading dial showing the amount to be charged is illuminated and readily discernible to passengers.
(b) Charges to Be Registered Only When Vehicle for Hire Engaged. No taximeter or digital dispatch system shall be operated in a manner so as to cause any charge to be registered thereon except during the time while the vehicle for hire is engaged by a passenger.
(c) Taximeter or Digital Dispatch System to Be in Continuous Operation. No passenger shall be carried in a vehicle for hire unless the taximeter or digital dispatch system is in operation, whether or not the trip is entirely within or partially within and partially without the boundaries of the city. The taximeter or digital display system shall be in continuous operation during the entire time that a passenger is being transported for compensation.
(d) Specialized Charges. A vehicle for hire agency may impose a specialized charge to carry extra passengers or to deliver goods or other items so long as such specialized charge is clearly calculated and displayed before any service is provided.
(e) Taximeter Inspection. Every taximeter shall be inspected and tested for accuracy by the vehicle for hire agency at least once every six months. [Ord. 555 § 7, 2022].
5.30.070 Audit.
The city may audit operators up to two times per calendar year for compliance with this chapter. Upon request, an operator shall provide the city a sample of records for up to 30 drivers affiliated with the operator that have operated in the 30 days preceding the audit. An audit shall occur at a time and location designated by the city. In addition to an audit, the city may require an operator to produce records related to an investigation of a specific allegation of a violation of this chapter or other applicable law, or to evaluate a complaint. Production of records for an investigation or to evaluate a complaint does not count toward the twice-per-year auditing limit. [Ord. 555 § 8, 2022].
5.30.080 Denial, suspension, and revocation.
In addition to the grounds in Chapter 5.05 CBMC, the city of Coos Bay may suspend, revoke or refuse to issue a license if an operator or driver has violated or not met any of the provisions of this chapter. A violation includes any failure to meet or maintain any of the requirements or qualifications set forth in this chapter, including the procedures and requirements for obtaining and maintaining a business license, the making of any material misrepresentation, or if an operator or driver is otherwise engaged in unlawful activity. [Ord. 555 § 9, 2022].
5.30.090 License effective date.
Any vehicle for hire agency license that is current as of the effective date of the ordinance codified in this chapter shall remain valid until December 31, 2022, unless the license holder wishes to apply for a new license under this chapter. [Ord. 555 § 10, 2022].
5.30.100 Storage of vehicle.
No more than one vehicle (taxi cab/vehicle for hire, etc.) will be parked or stored in a residential area or at the owner’s or driver’s residence. It is the intention of this section that the one permitted vehicle be the vehicle used on a daily basis for the transportation of people under the definitions in CBMC 5.30.010. Only one vehicle for hire business license will be issued per residence, without additional approval by the city manager or his/her designee. [Ord. 555 § 11, 2022].
5.30.110 Violations.
(1) Civil Penalty. Any person, vehicle for hire agency, or taxi company willfully violating any provision of this chapter shall be subject to a civil penalty of not more than $750.00 for each such offense.
(2) Revocation and Suspension.
(a) Violation of any provision of this chapter may be grounds for revocation or suspension of the taxi company/vehicle for hire, or taxicab operator’s business license, or, in proper case, revocation or suspension of both.
(b) Procedure.
(i) When the chief of police has grounds for revocation or suspension of a business license, the chief shall provide a notice and order of revocation or suspension, as the case may be, to the vehicle for hire agency, taxicab company or driver. The notice and order shall state the grounds for revocation or suspension and the effective date. The notice and order shall also contain a provision informing the vehicle for hire agency, taxicab company or driver that the notice and order may be appealed by filing written notice of intent to appeal with the city manager not more than seven days after the date of service of the notice and order.
(ii) The notice and order shall be served on the vehicle for hire agency, taxicab company or driver by personal delivery, or first class mail and certified mail, return receipt requested, delivered to the last known address of the vehicle for hire agency, taxicab company or driver, as reflected in the records of the police department. If service is made by mail, service shall be deemed complete when deposited in the mail, and shall not be deemed ineffective by a vehicle for hire agency’s, taxi company’s or driver’s refusal to receive the certified letter.
(iii) Hearing shall be held before the city manager as soon as is practicable. The city manager may affirm, reverse, or modify the notice and order. Appeal of the city manager’s decision shall be by writ of review, as provided under ORS Chapter 34. [Ord. 555 § 12, 2022].