Chapter 5.68
FOR-HIRE VEHICLES
Sections:
5.68.030 Everett business license required.
5.68.040 For-hire license required.
5.68.050 Taxicab and TNC driver requirements.
5.68.060 Taxicab company and TNC requirements.
5.68.070 Vehicle requirements.
5.68.080 Operational requirements.
5.68.100 Registered agent required.
5.68.120 Revocation, suspension, or denial of for-hire license.
5.68.150 Violations—Penalties.
5.68.010 Purpose.
The purpose of this chapter is to address the regulation of taxicab companies and transportation network companies (TNCs), which constitute an important component of the city’s transportation system, thus affecting the safety and welfare of the general public. (Ord. 3553-17 § 1, 2017)
5.68.020 Definitions.
The following words and phrases when used in this chapter have the meanings as set forth herein:
A. “City” means the city of Everett, a municipal corporation.
B. “City clerk” means the city clerk for the city of Everett or the city clerk’s designee.
C. “EMC” means the Everett Municipal Code as enacted or subsequently amended.
D. “Operating a taxicab company in the city” means a taxicab company connects a taxicab driver to a passenger by any means, including without limitation, through a dispatch system, digital network, or through a customer hail of a taxicab, for a trip originating in the city.
E. “Operating a taxicab or TNC vehicle” means using a taxicab or TNC vehicle to transport any passenger or item of property for compensation from a point originating in the city.
F. “Operating a TNC in the city” means a TNC uses its digital network to connect a TNC driver to a passenger for a trip originating in the city.
G. “Person” and “he” and “she” mean and include any natural person, and in addition, a partnership, corporation, an unincorporated association, or a legal entity, unless a contrary intention plainly appears.
H. “For-hire license” means a license issued to a taxicab company or TNC pursuant to this chapter.
I. “Taxi,” “taxicab” and “cab” mean a motorized vehicle that is held out to the public as providing transportation to passengers:
1. Where the route traveled, destination, or both route and destination is controlled by the passenger; and
2. Where the fare is based on an amount recorded and indicated on a taximeter or a digital network used to connect passengers with drivers or by a special contract rate. A TNC vehicle is not a taxicab.
J. “Taxicab company” means any person operating one or more taxicabs other than or in addition to as a driver, regardless of the legal form of the entity and regardless of whether the taxicabs so operated are owned by the company, or leased, or owned by individual members of the entity.
K. “Taxicab driver” means a driver who uses a taxicab to transport passengers for compensation and that transportation is arranged through a taxicab company.
L. “Taximeter” means a device by which the charge for hire of a taxicab is mechanically and/or digitally measured or calculated based upon a combination of mileage traveled and time elapsed.
M. “Transportation network company” or “TNC” means a company that connects passengers with TNC drivers solely through a digital network. Additionally, TNC drivers use only personal vehicles to transport passengers for compensation between geographical points chosen by the passenger.
N. “TNC driver” means a driver who uses a personal vehicle to transport passengers for compensation and that transportation is arranged through a TNC’s digital network.
O. “Transportation network company vehicle” or “TNC vehicle” means a personal motorized vehicle affiliated with or operating under the authority of a TNC where the fare is based on a digital network used to connect passengers with TNC drivers. A taxicab is not a TNC vehicle.
P. “Violations hearing examiner” means the office of the violations hearing examiner created pursuant to Chapter 1.20. (Ord. 3588-18 § 1, 2018: Ord. 3553-17 § 2, 2017)
5.68.030 Everett business license required.
A. Each taxicab company and TNC must have a current and valid city business license issued pursuant to Chapter 3.19 to operate in the city.
B. Any TNC driver or taxicab driver who is an independent contractor affiliated with a TNC or taxicab company must have a current and valid city business license issued pursuant to Chapter 3.19 to operate in the city. (Ord. 3553-17 § 3, 2017)
5.68.040 For-hire license required.
A. Each taxicab company and TNC must have a valid and current for-hire license to operate in the city.
B. The city clerk may issue a for-hire license to a taxicab company or TNC provided that the taxicab company or TNC submits, on a form provided by the city, an affidavit sworn under penalty of perjury that, to the best of the applicant’s knowledge, formed after a diligent inquiry into the facts, the taxicab company and its affiliated taxicab drivers or the TNC and its affiliated TNC drivers are in full compliance with this chapter, including without limitation, standards for vehicle safety, driver training and background, and insurance requirements.
C. Upon the submittal of a for-hire license application, the taxicab company or TNC shall submit a current estimate of the number of drivers affiliated with the taxicab company or TNC who will likely be operating in the city pursuant to this chapter.
D. The for-hire license shall be effective for one year. The license shall expire on December 31st of each year in accordance with Section 5.04.040(B).
E. The annual for-hire license fee shall be based on the number of taxicab or TNC drivers affiliated with the for-hire license applicant that will be operating a taxicab or TNC vehicle in the city. In accordance with Section 5.04.040(B), after June 30th of each year, the for-hire license fee shall be reduced by fifty percent. For-hire license fees shall be as follows:
1. One to ten affiliated drivers: five hundred dollars.
2. More than ten affiliated drivers: one thousand dollars.
F. The for-hire license will only become valid and effective when the city clerk has reviewed and approved the for-hire license application and the fee prescribed in this section has been paid. (Ord. 3588-18 § 2, 2018: Ord. 3553-17 § 4, 2017)
5.68.050 Taxicab and TNC driver requirements.
A. In addition to other requirements set by this chapter or law, taxicab and TNC drivers shall comply with the following:
1. Only operate a taxicab or TNC vehicle for, or in affiliation with, a taxicab company or TNC that has a valid and current for-hire license issued pursuant to this chapter;
2. Be at least twenty-one years old;
3. Have and hold in their possession a valid driver’s license as required by the state of Washington;
4. Have held a valid driver’s license in the United States for one year immediately preceding the date authorized to drive for the affiliated taxicab company or TNC;
5. Have in force and hold in their possession any required vehicle registration(s) and documentation of automobile liability insurance required pursuant to Section 5.68.090;
6. Have and hold in their possession a copy of their Everett business license issued pursuant to Chapter 3.19;
7. Have not been convicted of, or been granted a deferred prosecution for, one or more of the following crimes, or a crime in another jurisdiction including those outside of the state of Washington that is the substantial equivalent of any of the following crimes, during the previous seven years:
a. Driving under the influence of an intoxicating liquor or any drug, or being in physical control of a vehicle while being under the influence of intoxicating liquor or any drug, or other alcohol or drug-related driving violation;
b. Reckless or negligent driving in the first degree;
c. Hit and run;
d. Assault or a violent, or serious violent offense;
e. Harassment as defined by Section 10.23.050, but not including the crimes of first degree criminal trespass, second degree criminal trespass, criminal mischief, or interference with property;
f. Gun-related violation;
g. Sexual offense;
h. Resisting arrest or attempting to elude a law enforcement officer;
i. Any felony;
j. Crimes involving fraud;
k. Crimes involving theft;
8. Are not a registered sex offender; and
9. Have not been convicted of or found to have committed three or more moving violations during any twelve-month period during the previous three years. The twelve-month period will run from the date the driver was found to have committed the moving violation, not the date the incident occurred, if those dates are different. (Ord. 3588-18 § 3, 2018: Ord. 3553-17 § 5, 2017)
5.68.060 Taxicab company and TNC requirements.
A. In addition to other requirements set by this chapter or law, each taxicab company and TNC must comply with the following:
1. Affirm to the best of the taxicab company’s or TNC’s knowledge, formed after a diligent inquiry into the facts, that it and each person driving for the company meets all requirements set forth in this chapter; and
2. Prior to permitting a person to act in the capacity of a taxicab or TNC driver, and annually thereafter, obtain and review a criminal background check report for such person. The criminal background check shall include a search of no less than seven years prior to the date of the current criminal background check. The criminal background check shall include a search of local, state, and national criminal history databases and publicly available national and state sex offender registries;
3. Implement and enforce a zero tolerance policy on the use (including prohibiting being under the influence) and possession of drugs (including without limitation, marijuana) or alcohol while operating a taxicab or TNC vehicle that is applicable to all taxicab and TNC drivers. Each taxicab company and TNC must provide notice of the zero tolerance policy on its website, or if the taxicab company or TNC does not have a website, in each taxicab or TNC vehicle, as well as the procedures to report a complaint. The taxicab company or TNC must immediately suspend a driver upon receipt of a passenger complaint alleging a violation of the zero tolerance policy, and conduct an investigation, which shall include the collection of information, into the alleged violation. The suspension shall last at least the duration of the investigation.
4. Revoke and deny a taxicab or TNC driver’s authority to drive for the taxicab company or TNC if it finds that any driver requirement set forth in this chapter is no longer being met by the driver, and only reinstate his/her authority to drive for the company upon a finding by the company that all standards are again being met. (Ord. 3588-18 § 4, 2018: Ord. 3553-17 § 6, 2017)
5.68.070 Vehicle requirements.
A. A taxicab and TNC vehicle must have a minimum of four doors, with two doors opening directly into the passenger seating area.
B. Taxicab vehicles using a taximeter to calculate a passenger’s fare shall be inspected for accuracy by an independent party not employed by or associated with the taxicab company or any driver authorized to operate the taxicab vehicle in question within one year prior to the taxicab company’s for-hire license application submittal date each year.
C. Safety Inspection. Each taxicab and TNC vehicle operating in the city must hold a valid certificate of safety issued by an independent motor vehicle mechanic, and who is a certified National Institute of Automotive Service Excellence (ASE) Mechanic in good standing with the ASE. Said certificate shall be based on the vehicle passing a vehicle safety inspection that meets the standards set forth below, and is performed within one year prior to the taxicab company/TNC for-hire license application submittal date each year.
D. Inspection Standards. A vehicle that passes inspection pursuant to King County Code Section 6.64.360 or Seattle Municipal Code Section 6.310.270.R (as each are now enacted or hereafter amended) annually, shall be in compliance with this subsection D. Alternatively, a vehicle inspection required pursuant to subsection C of this section must consist of a confirmation of the safe operation of applicable vehicle systems and equipment, and a review of the vehicle’s exterior and interior condition and cleanliness. The inspection shall include, but is not limited to, a check of the following systems and equipment:
1. Brake system;
2. Alignment;
3. Tires and wheel systems;
4. Suspension;
5. Steering system;
6. Transmission;
7. Fuel system;
8. Exhaust system, compliance with emission standards;
9. Belts and hoses;
10. Fluids (motor oils, antifreeze, transmission and brake fluids);
11. Heater and air conditioning;
12. Drive train and axles;
13. Lighting systems and turn signals;
14. Seat mechanisms and seat belts;
15. Airbags;
16. Door locks and windows;
17. Hood and trunk latches;
18. Speedometer and other gauges;
19. Battery and cables;
20. Cooling system;
21. Horn;
22. Wiring;
23. Glass;
24. Windshield and window glazing;
25. Wipers and washers;
26. Mirrors;
27. Body component soundness;
28. Vehicle frame (rebuilt vehicle).
E. Company Identification. While in service in the city, each taxicab and TNC vehicle shall be clearly marked to allow a passenger, governmental official or employee, or other member of the public to associate the vehicle with a licensed taxicab company or TNC, whichever applies, using uniform colors, markings and/or insignia that are in compliance with all other applicable federal, state, and local laws and regulations. At a minimum, a person shall be able to associate the vehicle with a licensed taxicab company or TNC by viewing the front and rear of the vehicle. (Ord. 3588-18 § 5, 2018: Ord. 3553-17 § 7, 2017)
5.68.080 Operational requirements.
A. While in service in the city, TNC drivers shall only transport passengers who have arranged transportation through a TNC’s digital network and shall not solicit or accept street hails by persons seeking transportation.
B. TNC drivers may only transport passengers in the driver’s personal vehicle.
C. A taxicab may be lawfully hailed by a passenger.
D. Taxicab vehicles using a taximeter to record a passenger’s fare must provide the taxicab rates in a conspicuous area of the vehicle that is visible to passengers.
E. Taximeters used by taxicab vehicles must be placed in a conspicuous area of the vehicle that is visible to passengers.
F. Taximeters used by taxicab vehicles must accurately measure the rate advertised as required by subsection D of this section.
G. Taxicab vehicles using a taximeter to record a passenger’s fare must display the taxicab’s license plate number, the name of the taxicab company the taxicab is affiliated with, a photograph of the taxicab driver taken within the previous year, and the driver’s first and last name. This information must be placed in a conspicuous area of the vehicle that is visible to passengers.
H. Prior to initiating the ride, each TNC and taxicab company using a digital network to secure the ride, must disclose up-front the estimated cost of the ride to the potential passenger through the company’s digital network.
I. If not using a digital network to secure the ride, upon the request of a potential taxicab passenger, and prior to initiating a ride, the taxicab driver providing the ride shall disclose the estimated cost of the ride to the potential passenger.
J. Whenever demanded by the passenger, the driver of a taxicab or TNC vehicle shall deliver to the passenger at the time of payment, a written receipt of payment. The taxicab or TNC driver may provide an electronic or paper receipt. This receipt shall contain the name of the taxicab company or TNC and its contact information, the name of the driver, any and all items for which a charge is made, the total amount paid, and the date of payment.
K. The TNC or taxicab company using a digital network to secure the ride must display for the passenger, through its digital network, the first name and photograph of the TNC or taxicab driver as well as the make, model, and license plate number of the TNC or taxicab vehicle.
L. Taxicab companies and TNCs may initiate dynamic market pricing if each passenger receives express written notice through the taxicab company’s or TNC’s digital network, or through an official taxicab company statement if no digital network is used to secure the ride, prior to the passenger accepting the ride. During periods of abnormal market disruptions, however, taxicab companies and TNCs companies may not initiate dynamic market pricing. For the purpose of these rules, “abnormal market disruptions” is defined as any change in the ground transportation market, whether actual or imminently threatened, resulting from stress of weather, natural disasters, failure or shortage of electric power or other source of energy, strike, civil order, war, military action, national or local emergency, or other cause of an abnormal disruption of the market which results in a declaration of a state of emergency by the mayor of the city, or the Governor of the state of Washington. “Dynamic market pricing” is defined as a pricing strategy that sets highly flexible prices for products or services based on current market demands. (Ord. 3553-17 § 8, 2017)
5.68.090 Insurance.
A. Each TNC and TNC driver must comply with the automobile liability insurance requirements contained in Chapter 48.177 RCW as enacted or subsequently amended.
B. Each taxicab company and taxicab driver must comply with the surety and automobile liability insurance requirements contained in Chapter 46.72 RCW as enacted or subsequently amended.
C. Each taxicab and TNC driver shall maintain within his or her motor vehicle proof of insurance satisfying the requirements of this chapter. Such proof may be provided electronically. (Ord. 3553-17 § 9, 2017)
5.68.100 Registered agent required.
Each taxicab company and TNC must maintain a registered agent for service of process in the state of Washington. The name, telephone number, and physical address of the registered agent shall be submitted to the city at the time of the license application. The taxicab company and TNC must notify the city in writing of any changes to its registered agent within seven days of such change. (Ord. 3553-17 § 10, 2017)
5.68.110 Audit.
A. Unless the city determines there are problems that merit additional audits, then not more than twice per calendar year, the city may audit each taxicab company’s and TNC’s records to review compliance with this chapter. Each audit will be limited to records relating to no more than twenty randomly selected taxicab or TNC drivers operating a taxicab or TNC vehicle pursuant to this chapter. Drivers shall be randomly selected by the city. In the event the audit reveals discrepancies in the records reviewed, the city may, in its sole discretion, audit all of the taxicab company’s and TNC’s records related to taxicab or TNC drivers operating in the city and compliance with this chapter.
B. For the purpose of the random selection of drivers for an audit pursuant to subsection A of this section, upon the request of the city, a taxicab company or TNC shall, within five working days, provide the city a complete list of all drivers currently affiliated with the taxicab company or TNC and operating a taxicab or TNC vehicle pursuant to this chapter. At the option of the TNC or taxicab company, in lieu of providing driver’s names, the TNC or taxicab company may provide the city other driver identification so long as each identification is unique to the driver it identifies.
C. Each taxicab company and TNC must retain records providing evidence of compliance with this chapter for a minimum of six years from effective date of their current for-hire license. Such records shall include, but are not limited to, driver’s criminal and driving histories, vehicle inspection reports, proof of insurance for taxicab companies, TNCs, and their affiliated drivers, and records of all trips made by all drivers.
D. The audit shall occur at City Hall, 2930 Wetmore Avenue, Everett, Washington; provided, that the city may in its discretion agree to an alternative location.
E. Notwithstanding the foregoing, the city may require each taxicab company and TNC to produce records at any time to investigate a specific complaint regarding compliance with this chapter. (Ord. 3553-17 § 11, 2017)
5.68.120 Revocation, suspension, or denial of for-hire license.
A. A for-hire license may be revoked, suspended, or denied by the city clerk for any of the following reasons:
1. Failure to meet or maintain any of the requirements or qualifications set forth in this chapter;
2. A materially false statement contained in the application for the license;
3. Any violation of this chapter, including any violation by a taxicab or TNC driver affiliated with the for-hire license holder, whether or not the for-hire license holder knew or should have known of the violation;
4. Any violation of any other applicable federal, state, or city licensing or permit requirements.
B. Prior to any revocation, suspension, or denial of a taxicab company or TNC license, the city shall inform the license holder or applicant in the case of a denial, of their right to a hearing. Such hearing, if requested, shall be conducted prior to the implementation of any revocation, suspension, or denial.
C. A revocation of a taxicab or TNC license shall be effective for one year from the date the revocation becomes final and no taxicab company or TNC subject to the revocation may obtain a for-hire license during the one-year revocation. Following the one-year revocation and consistent with this chapter, the taxicab company or TNC may obtain a for-hire license. (Ord. 3553-17 § 12, 2017)
5.68.130 Appeals.
Within fifteen calendar days after a notice of revocation, suspension, or denial of a for-hire license issued or denied pursuant to this chapter, the license holder/applicant of the revoked, suspended, or denied license may file a notice of appeal with the violations hearing examiner. The notice of appeal must be in writing, signed by a person authorized to make it, and must explain the grounds for the appeal. The notice of appeal must be addressed to the violations hearing examiner, “ATTENTION: City Clerk.” Notice of the appeal hearing shall be given by delivering a copy of the hearing notice to the license holder or by mailing a copy thereof to the license holder at his last address as shown by the city clerk’s license records, and the notice will be mailed or delivered at least five days before the date fixed for the hearing. The violations hearing examiner may affirm, reverse, or modify the decision of the city clerk. The hearing shall be in accordance with Chapter 1.20 and the violations hearing examiner’s rules of procedure, if any. Where a provision of Chapter 1.20 or the rules of procedure conflict with this chapter, this chapter controls. The decision of the violations hearing examiner will be final. The decision of the violations hearing examiner may be appealed to Snohomish County superior court within fifteen calendar days of the date of the decision. (Ord. 3553-17 § 13, 2017)
5.68.140 Enforcement.
The city clerk shall have administrative authority to implement and enforce this chapter. The city clerk may promulgate regulations not inconsistent with this chapter. By way of example, the city clerk may issue administrative subpoenas to implement the provisions of this chapter. The Everett police department shall have authority to enforce any provision of this chapter, and nothing in this section shall be construed to abrogate or limit the jurisdiction of the Everett police department. (Ord. 3553-17 § 14, 2017)
5.68.150 Violations—Penalties.
A. It is a violation of this chapter to fail to comply with or to be in conflict with any provision of this chapter. It shall be a separate offense for each and every day during which any violation of any of the provisions of this chapter is committed, continued, or permitted.
B. The person operating a taxicab company or TNC is also in violation of this chapter if the city notifies the taxicab company or TNC of a violation of this chapter committed by the taxicab company’s or TNC’s affiliated driver and the taxicab company or TNC fails to cure the violation within fifteen days.
C. Pursuant to Chapter 7.80 RCW, a person who violates this chapter for the first time in one twelve-month period shall be deemed to have committed a class 1 civil infraction with a two hundred fifty dollar penalty exclusive of statutory assessments.
D. Any violation of any provision of this chapter constitutes a public nuisance which the city can abate by an action in county superior court. The costs of such action shall be taxed against the violator.
E. Penalty and enforcement provisions provided in this chapter are not exclusive, and the city may pursue any remedy or relief it deems appropriate. (Ord. 3588-18 § 6, 2018: Ord. 3553-17 § 15, 2017)
5.68.160 Effective date.
Pursuant to Section 3.4 of the City of Everett Charter, the ordinance codified in this chapter will become effective upon fifteen days after it is valid, except that a company subject to this chapter with a valid and current for-hire business license at the time the ordinance codified in this chapter becomes effective shall not be required to comply with Section 5.68.040 until such company’s current for-hire license expires. Upon the expiration of such company’s current for-hire business license and no later than August 1, 2017, the company shall comply with Section 5.68.040 in its entirety to continue to lawfully operate the company in the city. Notwithstanding the foregoing, a company with a valid and current for-hire business license at the time the ordinance codified in this chapter becomes effective, which the city revokes or suspends subsequent to the effective date of the ordinance codified in this chapter, shall be required to fully comply with Section 5.68.040 to thereafter lawfully operate in the city. (Ord. 3553-17 § 16, 2017)
5.68.170 Review.
At least once every three years, staff will brief the city council on the city’s experience with this chapter (as it now exists or is subsequently amended) to determine whether it reflects the current needs and desires of the city in relationship to the regulation of the for-hire industry. (Ord. 3553-17 § 17, 2017)
5.68.180 City nonliability.
It is expressly the purpose of this chapter to provide for and promote the health, safety and welfare of the general public and not to create or otherwise establish or designate any particular class or group of persons who will or should be especially protected or benefited by the terms of this chapter. It is the specific intent of this chapter that no provision or any term used in this chapter is intended to impose any duty whatsoever upon the city or any of its officers or employees. Nothing contained in this chapter is intended nor shall be construed to create or form the basis of any liability on the part of the city, or its officers, employees or agents, for any injury or damage resulting from any action or inaction on the part of the city related in any manner to the enforcement of this chapter by its officers, employees or agents. (Ord. 3553-17 § 20, 2017)