Chapter 10.20
VEHICLES FOR HIRE
Sections:
10.20.020 License required – Application and fees.
10.20.030 Driver requirements.
10.20.040 Insurance requirements.
10.20.045 Annual inspection of all vehicles for hire.
10.20.050 Operational requirements.
10.20.053 Reports to the police department.
10.20.070 Revocation, suspension and penalties.
10.20.080 Violation – Enforcement – Citation.
10.20.090 Effective date – Status of existing valid certificates and permits.
Prior Legislation: Ords. 2005-12, 2012-03 and 2015-10
10.20.005 Purpose.
The purpose of this chapter is to provide for and promote the safety and welfare of the general public by regulating vehicles for hire within the city of Lincoln City, as authorized by ORS 221.485 and ORS 221.495. Nothing contained in this chapter is intended or shall be construed to create any liability on the part of the city or its employees for any injury or damage related to any provisions 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 or its employees. (Ord. 2022-09 § 1)
10.20.010 Definitions.
As used in this chapter:
A. “City” means the city of Lincoln City, Oregon.
B. “License” means the license issued by the city to a taxi company or TNC authorizing the company to engage in vehicle for hire services within the city.
C. “Driver” means any individual natural person who operates a vehicle for hire within the city.
D. “Nonemergency medical transport vehicle” means a vehicle that carries a person for hire and such person requires nonemergency medical treatment or supervision by an emergency medical technician or first responder certified by the Oregon State Health Division while in the vehicle.
E. “Person” means and includes any individual natural person, partnership, corporation, unincorporated association, or other entity.
F. “Vehicle for hire” means any vehicle used for the ground transportation of passengers for compensation within the city, including taxis and transportation network company (TNC) vehicles, as well as limousines, animal-drawn vehicles and vehicles powered by humans, including but not limited to vehicles such as pedicabs. The following motor vehicles are excluded from the definition of vehicle for hire and are exempt from this chapter:
1. School buses operated to transport students;
2. Vehicles used by nonprofit transportation providers solely and exclusively for elderly or handicapped persons;
3. Vehicles used to provide courtesy transportation at no charge to and from parking lots, hotels, casinos, rental offices, retirement homes, and the like;
4. Vehicles used to provide licensed ambulance services, as well as licensed nonemergency medical transport vehicles;
5. Vehicles licensed for airport ground transportation by the Port of Portland or other ports that license passenger transportation;
6. Regular-route scheduled buses, state-approved buses engaged in charter service.
G. “Taxi company” means any person or entity 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, or leased, or owned by individual members of an entity. Taxi companies do not include TNCs.
H. “Transportation network company” or “TNC” means a company or other entity that exclusively uses an internet-enabled platform or application to connect passengers with vehicles for hire and/or TNC drivers. (Ord. 2022-09 § 1)
10.20.020 License required – Application and fees.
A. No person shall operate any vehicle for hire business in the city without possessing a valid license for that business and its vehicles issued pursuant to this chapter, as well as any other license required by law including but not limited to a business occupation tax permit under Chapter 5.04 LCMC.
B. The city may issue a license to a taxi company or TNC, or other vehicle for hire, if the company certifies in a sworn statement under penalty of perjury and false swearing, on a form approved by the city, that it is in compliance with all requirements of this chapter, including but not limited to driver and insurance requirements, operating standards, and any other requirements of this code or state law, and actually meets all applicable standards and requirements. The city may inspect company records, as well as equipment and vehicles, and request the production of other supporting materials to verify compliance.
The city may include conditions, restrictions, or special provisions in the license related to routes, times of operation, or lighting if necessitated by the vehicles or operations of the taxi company, TNC or other vehicle for hire. The city manager may waive or lessen the requirements of this chapter if the type of vehicles or operations of a taxi company, TNC or other vehicle for hire render the requirements unreasonable or unnecessary, in the sole discretion of the city manager.
C. The license issued under this chapter is valid for one year, commencing upon issuance and continuing for one year from the assigned quarterly renewal date.
The finance director will assign each new and existing license to one of four renewal dates. The one-year period commencing on the renewal date is the permit year for corresponding occupation or business. For the first year, each license fee shall be prorated to the assigned renewal date.
The city hereby establishes four renewal dates, as follows:
1. January 1st;
2. April 1st;
3. July 1st;
4. October 1st.
Any renewal must be approved by the city prior to the expiration date in order for the taxi company, TNC or other vehicle for hire to continue providing vehicle for hire services within the city.
D. Renewal Period. A completed license renewal application and renewal fee, as established by city resolution, are due no earlier than 30 days before the assigned renewal date and no later than 30 days after the assigned renewal date. The city may impose a late fee for renewal applications submitted beyond the 60-day renewal period, as established by resolution.
E. The application fee for the license shall be established by resolution of the council and shall be intended to account for the city’s costs in administering the requirements of this chapter and will not be refunded. The fee amounts shall be set by city council resolution as part of the city’s fee schedule.
F. The license fee shall be paid to the city at the time of submitting both initial and renewal license applications.
G. All taxi companies, TNCs, and other vehicles for hire, must comply with the city’s business registration requirements in Chapter 5.04 LCMC. (Ord. 2022-09 § 1)
10.20.030 Driver requirements.
A. All drivers shall be at least 21 years of age and shall possess a valid driver’s license, proof of motor vehicle registration, and proof of current automobile liability insurance that meets the requirements of this chapter and state law.
B. Every taxi company or TNC shall maintain accurate, current records for all drivers employed by, contracting with, or affiliated with the company, including all drivers accessing a 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. These records will be made available to the city promptly on request.
C. Prior to permitting a person to operate as a driver, and annually thereafter, the taxi company or TNC shall conduct, or have a qualified third party conduct, a criminal background check. The criminal background check shall include a search of no less than seven years of database 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 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 theft or fraud, 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 (including but not limited to any felony or misdemeanor involving a crime against persons as defined in ORS Chapter 163, such as homicide, manslaughter, assault, kidnapping, sexual offenses, harassment and stalking). The company or its agent shall maintain records of criminal background checks 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.
D. A taxi company or TNC 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 company shall only reinstate a driver upon a finding by the company that all standards are again being met by the driver.
E. Notwithstanding the standards of this section, upon application by a taxi company or TNC, the Lincoln City chief of police has authority to allow a person to act as a driver if the chief determines public safety would not be compromised. (Ord. 2022-09 § 1)
10.20.040 Insurance requirements.
A. For all required insurance, taxi companies, TNCs, and other vehicles for hire 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.
B. Insurance requirements of this section shall be satisfied by insurance issued by a licensed insurer or an eligible surplus lines insurer in the state of Oregon.
C. The insurance limits for taxi companies, TNCs, and other vehicles for hire are subject to statutory changes as to maximum limits of liability imposed on municipalities of the state of Oregon during the annual term of the license.
D. The adequacy of insurance coverage is subject to the review and approval of the city manager. The city manager and police chief are expressly authorized to reduce required insurance coverage for other vehicles for hire (e.g., pedicab).
E. Every taxi company, TNC, and other vehicle for hire, 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.
F. Taxi companies, TNCs, and other vehicles for hire shall secure and maintain commercial general liability insurance with limits of not less than $1,000,000 per occurrence and $2,000,000 aggregate for claims arising out of, but not limited to, bodily injury and property damage incurred in the course of operating in the city.
G. Taxi companies operating any motor vehicles shall secure and maintain 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.
H. TNC Service Periods Defined.
1. 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.
2. 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).
3. Period 3. The passenger is in the vehicle.
I. 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.
J. All TNCs shall maintain and provide the city with proof of the following automobile liability coverages:
1. Primary 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.
2. Primary insurance 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.
3. The required automobile liability insurance shall specifically recognize the driver’s provision of TNC and vehicle for hire services and shall comply with the laws of the state of Oregon and/or other applicable governing bodies.
K. TNC drivers shall be responsible for maintaining all personal automobile liability insurance required by state law. (Ord. 2022-09 § 1)
10.20.045 Annual inspection of all vehicles for hire.
A. Prior to the operation of any vehicle under the provisions of this chapter and at least annually thereafter, the vehicle shall be thoroughly examined and inspected by either a certified mechanic or a governmental vehicle inspection entity located within Lincoln County and shall be found to be in safe operating condition. An inspection for safe operating conditions must include, but is not limited to, inspection of brakes including parking brake; all lights, signals and reflectors; exhaust system; steering system; wipers including washers; suspension components; mirrors; horn and other warning devices; tires and restraint system. Record of such inspections, clearly identifying by vehicle license number the vehicles inspected, must be made available to the city upon initial application and annual renewal. In this section the term “certified mechanic” means a person certified by the National Institute for Automotive Service Excellence.
B. In addition to the initial and annual inspections required above, inspection or testing of all parts vital to the safe operation of the vehicle such as brakes, steering gear, tires, lights, and signaling devices shall be made at the beginning of each shift or each day by the driver, and as often as necessary during use. Any condition found then or at any other time that will prevent the safe operation of the vehicle shall be corrected before the vehicle is used.
C. In the event a record of vehicle inspection is not produced within 24 hours of request, or if the record produced indicates the inspection is more than 12 months old, the city shall notify the holder of a vehicle for hire license to complete an inspection showing compliance with the standards of this chapter and deliver the record to the city within 24 hours of the written notice.
D. Failure to timely produce a satisfactory record of inspection shall be grounds to suspend or revoke a certificate and also constitutes a violation of this chapter subject to enforcement by citation. (Ord. 2022-09 § 1)
10.20.050 Operational requirements.
A. TNCs 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 include, at minimum, 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 to passenger pickup. The city may require a TNC to enter a data sharing agreement in order to receive a license.
B. All vehicles operating for taxi companies shall be clearly marked as such and shall include the taxi company name, phone number, and a vehicle identification number in plain sight. Vehicles operated for TNC services shall be marked with a customary “trade dress” type of identification, such as a sticker or placard. The TNC’s software application or website shall display for the passenger the make, model, and license plate number of the TNC vehicle.
C. TNCs may not accept street hails, and may only accept rides arranged through a TNC’s digital network.
D. Taxi companies, TNCs, and other vehicles for hire 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 policy. A company shall immediately suspend a driver upon receipt of a passenger complaint alleging a violation of the zero tolerance policy, for at least the duration of the investigation of the complaint.
E. Taxi companies, TNCs, and other vehicles for hire shall 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.
F. Unless otherwise directed by the passenger, any vehicle for hire driver hired to transport passengers to a definite point shall use the most direct route possible that will carry the passenger to that destination safely and expeditiously.
G. Every driver, if requested, shall give a correct receipt upon payment of the correct fare.
H. No person may refuse to pay a lawful vehicle for hire fare after hiring a vehicle for hire.
I. Whenever a passenger occupies a vehicle for hire, the driver must not permit any other person to occupy the vehicle for hire except with consent of the original passenger.
J. Taxi companies, TNCs, and other vehicles for hire shall ensure that every vehicle operating under this chapter is to be kept in a clean and sanitary condition. (Ord. 2022-09 § 1)
10.20.053 Reports to the police department.1
A. Taxi companies, TNCs, and other vehicles for hire shall immediately report to the police department as soon as any of the following events occur:
1. The arrest or conviction for any criminal offense of any officer or principal managing employee of the taxi company, TNC, or vehicle for hire company, including specifically any offense involving the operation of the company;
2. Any accident required to be reported to the state involving a vehicle driven for the company;
3. The filing of a lawsuit against or on behalf of the company related to the operation of the company;
4. The initiation of bankruptcy proceedings or corporate or partnership dissolution by the company; or
5. Any information required to be disclosed by subsection (B) of this section.
B. Every driver shall report to the police department, and to the company for which he or she drives, the occurrence of the following:
1. Any arrest, charge, or conviction of the driver for any criminal offense, or any traffic violation, that occurs during, or arises out of, the driver’s operation of a taxicab, TNC vehicle or other vehicle for hire;
2. Any arrest, charge, or conviction of the driver for any criminal offense including, but not limited to, theft, robbery, burglary, assault, sex crimes, drugs, prostitution, or any related offense;
3. Any vehicle accident required to be reported to the state involving any vehicle for hire operated by the driver;
4. Any restriction, suspension or revocation of the driver’s motor vehicle driver’s license; or
5. Lapse, cancellation, or reduction of coverage of any insurance policy the city or police department relied on in issuing a license or renewal thereof. (Ord. 2022-09 § 1)
10.20.055 Taxicab equipment.
Every taxicab is to be equipped with the following:
A. Except for taxicabs charging flat rates, a fully functional taximeter with a lighted face which can be read at all times by the customer must be provided by the taxicab. Rates to be charged to passengers are to be based on the following: the mileage from the point of origin to the point of destination by the most direct route, the time involved, and the number of passengers. Taxicabs charging flat rates must be equipped with a sign posting the rate schedule in a place where passengers may readily see the schedule. No taxicab may charge more than the posted rate.
B. A top light identifying it as a taxicab.
C. The company name and telephone number where service can be requested displayed on the exterior of the vehicle.
D. A mobile communication device with a hands-free accessory or “state of the art” taxi radio on a clear coordinated taxicab radio frequency for customer comfort and rapid dispatching of calls for service.
E. The driver’s company identification and the company’s license number conspicuously displayed in a permanent mounted position inside the vehicle, in a place where it can be easily viewed by a passenger. (Ord. 2022-09 § 1)
10.20.060 Audit.
The city may audit any taxi company, TNC, or other vehicle for hire records up to twice per calendar year to review compliance with this chapter. An audit shall occur at a time and location designated by the city. In addition to an audit, the city may require a company to produce records related to an investigation of a specific allegation of a violation of this code 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. Notwithstanding any other provision of this chapter, failure to submit to an audit is a Class B violation. (Ord. 2022-09 § 1)
10.20.070 Revocation, suspension and penalties.
In addition to any other enforcement options provided by this code, the city may suspend, revoke, or refuse to issue a license if the taxi company, TNC or other vehicle for hire has violated or not met any of the provisions of this code. A violation includes any failure to meet or maintain any of the requirements or qualifications set forth in this code, including the procedures and requirements for obtaining and maintaining a license, as well as the making of any materially false statement or representation. The decision to suspend, revoke or refuse to issue a license may be appealed to the city council provided there is strict compliance with Chapter 1.26 LCMC (Uniform Administrative Appeals) within 10 days of service of the written decision. The company shall have the burden of proving it has complied with all requirements of this code necessary to obtain or maintain the license. The decision of the city council on the appeal shall be the final decision of the city. (Ord. 2022-09 § 1)
10.20.075 Indemnification.
A. Any recipient of a license to operate as a vehicle for hire within the city shall agree to pay all damages and penalties that the city may legally be required to pay as a result of granting a license and shall agree to defend and indemnify the city against all claims resulting from the granting of such a license. These damages or penalties shall include, but not be limited to, damage arising out of the operation or maintenance of a vehicle for hire as authorized herein, whether or not any act or omission complained of is authorized, allowed or prohibited by this chapter.
B. The license holder shall pay and, by its application and the granting of a license, specifically agrees that it will pay all necessary and reasonable expenses incurred by the city in defending itself against all damages and penalties mentioned in subsection (A) of this section, including, but not limited to, reasonable attorney fees. (Ord. 2022-09 § 1)
10.20.080 Violation – Enforcement – Citation.
A. A violation of any provision of this chapter, including but not limited to operating a vehicle for hire without a license, or in violation of any license or driver requirement herein, shall be enforced as a Class A violation under Chapter 1.16 LCMC.
B. Each day’s violation of a provision of this chapter constitutes a separate offense.
C. The city has the administrative authority to implement and enforce this chapter, including adoption of rules, regulations, or policies. This provision shall not be construed to abrogate or limit the jurisdiction or authority of the Lincoln City police department or any law enforcement agency. (Ord. 2022-09 § 1)
10.20.090 Effective date – Status of existing valid certificates and permits.
All taxicab certificates and driver permits issued prior to the effective date of the ordinance codified in this chapter will expire automatically on December 31, 2022. All vehicles for hire operating in the city of Lincoln City shall be licensed under this chapter on or before January 1, 2023. The initial application from an existing vehicle for hire under this chapter shall be processed as a new application, not a renewal. Fees shall be prorated depending upon assigned quarterly license renewal dates. (Ord. 2022-09 § 1)
Code reviser’s note: Ord. 2022-09 included two sections numbered 10.20.055. This section has been editorially renumbered to avoid duplication of numbering.