March 5, 2015, Introduced by Senators JONES, KOWALL and ZORN and referred to the Committee on Regulatory Reform.
A bill to amend 1990 PA 271, entitled
"Limousine transportation act,"
by amending the title and sections 3, 5, 7, 11, 13, 14, 15, 17, 19,
21, 23, 25, 27, 29, 31, and 37 (MCL 257.1903, 257.1905, 257.1907,
257.1911, 257.1913, 257.1914, 257.1915, 257.1917, 257.1919,
257.1921, 257.1923, 257.1925, 257.1927, 257.1929, 257.1931, and
257.1937), section 7 as amended by 2000 PA 487, and by adding
section 8.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
TITLE
An act to regulate persons who transport passengers by
limousine or transportation network company vehicle; to prescribe
powers and duties for the state transportation department and
certain local units of government; to impose certain fees; and to
prescribe remedies and penalties.
Sec. 3. As used in this act:
(a) "Certificate of authority" means a certificate of
authority issued under the terms of this act unless the context
indicates otherwise.
(b) "Department" means the state transportation department.
(c) "For hire" means the remuneration or reward of any kind,
paid or promised, either directly or indirectly.
(d) "Lessor" means a person who leases a limousine to any
other person for the transportation of passengers for hire over the
public highways of this state.
(e) "Limousine" means a self-propelled motor vehicle used in
the carrying of passengers and the baggage of the passengers for
hire upon a public highway of this state with a seating capacity of
15 passengers or less, including the driver. Limousine does not
include a self-propelled motor vehicle having a seating capacity of
15 passengers or less that is used by or on behalf of an employer
to transport its employees to and from their place of employment.
Except as otherwise provided in this act, limousine does not
include a transportation network company vehicle.
(f) "Limo carrier of passengers" means a person who, either
directly or through any device or arrangement, holds himself or
herself out to the public as willing to undertake for hire to
transport by limousine from place to place over the public highways
of this state persons who may choose to employ him or her for that
purpose.
(g)
"Motor vehicle service and repair act" means Act No. 300
of
the Public Acts of 1974, being sections 257.1301 to 257.1340 of
the
Michigan Compiled Laws.the
motor vehicle service and repair
act, 1974 PA 300, MCL 257.1301 to 257.1340.
(h) "Person" means an individual, sole proprietorship,
partnership, association, corporation, or other legal entity or the
lessee, trustee, or receiver of any of these entities; this state;
a city, village, township, or county; the federal government; or an
employee, officer, or agent of any of these units of government.
(i) "Public highway" means a highway, road, street, avenue,
alley, or thoroughfare of any kind, or a bridge, tunnel, or subway
used by the public.
(j)
"The public" means that the part or portion of the
general
public
which the that a limo carrier of passengers is ready,
able,
willing, and equipped to serve.
(k) "Through any device or arrangement" means any and all
methods, means, agreements, circumstances, operations, or
subterfuges under which a person undertakes for hire to conduct,
direct, control, or otherwise perform the transportation of
passengers by limousine upon the public highways of this state.
(l) "Transportation network company" means a person operating
in this state that uses a digital network to connect riders to
transportation network company drivers for the purpose of providing
transportation. Transportation network company does not include
taxi service, transportation service arranged through a
transportation broker, a ridesharing arrangement, or a
transportation service using fixed routes at regular intervals.
(m) "Transportation network company driver" means an
individual who uses a transportation network company vehicle to
provide transportation services for riders that are matched to that
individual through a transportation network company's digital
network, regardless of whether the individual is employed by a
transportation network company.
(n) "Transportation network company vehicle" means a motor
vehicle that is being operated by a transportation network company
driver while he or she is logged into a transportation network
company's digital network.
Sec.
5. (1) This act shall does
not apply to a limo carrier of
passengers or a transportation network company driver that is any
of the following:
(a) A county, city, township, or village as provided by law,
or
other authority incorporated under Act No. 55 of the Public Acts
of
1963, being sections 124.351 to 124.359 of the Michigan Compiled
Laws.1963 PA 55, MCL 124.351 to 124.359.
(b) An authority incorporated under the metropolitan
transportation
authorities act of 1967, Act No. 204 of the Public
Acts
of 1967, being sections 124.401 to 124.426 of the Michigan
Compiled
Laws, 1967 PA 204, MCL
124.401 to 124.426, or that
operates
a transportation service pursuant to under an interlocal
agreement
under the urban cooperation act of 1967, Act No. 7 of the
Public
Acts of the Extra Session of 1967, being sections 124.501 to
124.512
of the Michigan Compiled Laws.1967
(Ex Sess) PA 7, MCL
124.501 to 124.512.
(c)
Operating under a contract entered into pursuant to Act
No.
8 of the Public Acts of the Extra Session of 1967, being
sections
124.531 to 124.536 of the Michigan Compiled Laws, under
1967
(Ex Sess) PA 8, MCL 124.531 to 124.536, or
Act No. 35 of the
Public
Acts of 1951, being sections 124.1 to 124.13 of the Michigan
Compiled
Laws.1951 PA 35, MCL 124.1 to
124.13.
(d) An authority incorporated under the public transportation
authority
act, Act No. 196 of the Public Acts of 1986, being
sections
124.451 to 124.479 of the Michigan Compiled Laws, 1986 PA
196, MCL 124.451 to 124.479, or a nonprofit corporation organized
under
the nonprofit corporation act, Act No. 162 of the Public Acts
of
1982, being sections 450.2101 to 450.3192 of the Michigan
Compiled
Laws, 1982 PA 162, MCL
450.2101 to 450.3192, that provides
transportation services.
(e) An authority financing public improvements to
transportation
systems under the revenue bond act of 1933, Act No.
94
of the Public Acts of 1933, being sections 141.101 to 141.140 of
the
Michigan Compiled Laws.1933
PA 94, MCL 141.101 to 141.140.
(f) Only operating limousines or transportation network
company vehicles to provide the transportation of passengers for
funerals.
(g) Only operating wholly within the boundaries of a local
unit of government if the local unit of government has its own
safety inspection and insurance requirements.
(h) Operating within the jurisdiction of an authority created
under the aeronautics code of the state of Michigan, 1945 PA 327,
MCL 259.1 to 259.208, or a municipality or a group of
municipalities that form an authority to regulate transportation
network companies or transportation network company drivers under
the municipal partnership act, 2011 PA 258, MCL 124.111 to 124.123,
or the public transportation authority act, 1986 PA 196, MCL
124.451 to 124.479, that has adopted rules, ordinances,
resolutions, policies, or procedures governing the registration or
licensing of transportation network companies or transportation
network company drivers.
(2) A limo carrier of passengers or a transportation network
company driver exempt under subsection (1) shall operate under the
requirements of this act when operating outside of the political
subdivisions permitted by the authorizing statute or the contract
required by the authorizing statute.
(3)
This act shall does not apply to a limo carrier of
passengers
who that is only providing transportation using metered
vehicles identified as a taxi or taxicab with a maximum seating
capacity of 3 to 9 passengers or less, including the driver.
Sec. 7. (1) A limo carrier of passengers or a transportation
network company driver shall not operate a limousine or a
transportation network company vehicle for the transportation of
persons for hire on a public highway in this state except in
accordance with this act. A limo carrier of passengers or a
transportation network company driver that operates class B
limousines or transportation network company vehicles for the
purpose of picking up passengers within a city with a population of
750,000
500,000 or more shall also comply with the vehicle for hire
ordinance of that city with respect to those limousines or
transportation network company vehicles. However, a limo carrier of
passengers or a transportation network company driver may remain in
the city during a given trip for the sole purpose of picking up the
same passengers that the limo carrier of passengers or a
transportation network company driver originally brought into the
city on that trip. A limo carrier of passengers or a transportation
network company driver shall not operate upon a public highway
without first having obtained from the department a certificate of
authority. A certificate of authority may be obtained for operation
of
either class A limousines, or class B limousines, or
both.transportation network company vehicles.
(2)
The amendatory act that added this subsection takes effect
30
days after a city with a population of 750,000 or more makes
available
bonds for class B limousines. The total number of class B
limousine
bonds shall be determined by the city. However, for the
first
90 days the number of bonds to be made available for class B
limousines
shall not be less than 100 or more than 200.
(2) (3)
As used in this section:
(a) "Class A limousine" means a limousine with a seating
capacity
of not less than 7 9 passengers but not more than 15
passengers including the driver.
(b) "Class B limousine" means a limousine or a transportation
network
company vehicle with a seating capacity
of less than 7 9
passengers including the driver.
Sec. 8. (1) This act does not prohibit an authority created
under the aeronautics code of the state of Michigan, 1945 PA 327,
MCL 259.1 to 259.208, or a municipality or a group of
municipalities that form an authority to regulate transportation
network companies, transportation network company drivers, or
transportation network company vehicles under the municipal
partnership act, 2011 PA 258, MCL 124.111 to 124.123, or the public
transportation authority act, 1986 PA 196, MCL 124.451 to 124.479,
from adopting a rule, ordinance, resolution, policy, or procedure
that is more restrictive than this act.
(2) In addition to other fees or charges, an authority,
municipality, or group of municipalities described in subsection
(1) may impose a reasonable fee to recover the costs of
administering the registration or licensing of transportation
network companies, transportation network company drivers, or
transportation network company vehicles.
Sec. 11. The department shall issue without a hearing a
certificate of authority to a limo carrier of passengers or a
transportation network company driver authorizing that limo carrier
of passengers or transportation network company driver to provide
transportation services subject to the jurisdiction of the
department
under this act, if the department finds pursuant to
under section 13(1) that the limo carrier of passengers or
transportation network company driver is fit, willing, and able to
provide the transportation service authorized by the certificate of
authority and to comply with this act and if the applicant presents
evidence of the acquisition of personal injury protection and
property damage liability insurance as required by section 13(2).
The department may attach to the exercise of the privilege granted
by a certificate of authority terms or conditions as the department
considers appropriate.
Sec. 13. (1) In determining the fitness, willingness, and
ability of an applicant for a certificate of authority to provide
transportation service, the department shall consider all of the
following before the issuance of the original certificate of
authority:
(a) The applicant's safety record.
(b) The character and condition of each limousine or
transportation network company vehicle is such that it may be
operated safely upon the public highways based on an inspection
required
pursuant to under section 19 and conducted by a mechanic
certified under the motor vehicle service and repair act at a motor
vehicle repair facility registered under the motor vehicle service
and repair act that is designated by the department as an
inspection station or by a county, city, village, or township
pursuant
to under section 14. Any limousine or transportation
network company vehicle that does not pass the required
departmental safety inspection shall not be operated over the
public highways of this state.
(c) The applicant's financial ability to provide continuous
insurance coverage as required by subsection (2) and to have
adequate financial resources in order to pay for damage claims
against the applicant.
(2) An applicant shall acquire the following insurance
coverage of liability for acts or omissions of the applicant as a
limo carrier of passengers or transportation network company
driver:
(a) For limousines or transportation network company vehicles
with a seating capacity of 1 to 9 passengers including the driver,
bodily injury and property damage liability insurance with a
minimum combined single limit of $1,000,000.00 for all persons
injured or for property damage.
(b) For limousines or transportation network company vehicles
with a seating capacity of 10 to 15 passengers including the
driver, bodily injury and property damage liability insurance with
a minimum combined single limit of $2,000,000.00 for all persons
injured or for property damage.
(c) Personal protection insurance and property protection
insurance
as required by sections 3101 to 3179 chapter 31 of the
insurance
code of 1956, Act No. 218 of the Public Acts of 1956,
being
sections 500.3101 to 500.3179 of the Michigan Compiled Laws.
1956 PA 218, MCL 500.3101 to 500.3179. A limo carrier of passengers
or transportation network company driver shall maintain the
insurance described in this subsection as a condition of
maintaining a certificate of authority issued under this act.
(3) An applicant that does not satisfy both subsections (1)
and (2) shall not be issued a certificate of authority to provide
transportation service as a limo carrier of passengers or
transportation network company driver under this act.
Sec. 14. (1) A county, city, village, or township that has
adopted
a local ordinance to regulate limousines, or a limo carrier
of passengers, transportation network company vehicles, or a
transportation network company driver within its corporate limits
may perform the safety inspection required by section 19 upon
request of a limo carrier of passengers or transportation network
company driver.
(2) A safety inspection performed under this section shall
meet or exceed the requirements and standards of the department
safety inspection.
Sec. 15. (1) The department shall approve or deny an
application for a certificate of authority within 90 days after the
complete application is filed with the department.
(2) If the department denies an application for a certificate
of authority, the department shall notify the applicant in writing
of the reason or reasons for the denial, and the applicant shall
have 30 days from the date of denial to correct any deficiency and
reapply without payment of an additional application fee.
(3)
A limo carrier of passengers who or transportation network
company driver that has a safety inspection performed under section
14 may receive a certificate of authority by providing the
department with a copy of the safety inspection report and meeting
the other requirements of section 13.
Sec. 17. An applicant for an original certificate of authority
shall pay to the department a filing fee of $300.00 and a fee of
$50.00 times the number of limousines or transportation network
company vehicles to be used by the limo carrier of passengers or
transportation network company driver to provide transportation for
hire.
Sec.
19. (1) Each limo carrier of passengers who or
transportation network company driver that holds a certificate of
authority issued under this act shall have each limousine or
transportation network company vehicle inspected annually by a
mechanic certified under the motor vehicle service and repair act
at a motor vehicle repair facility registered under the motor
vehicle service and repair act that is designated by the department
as an inspection station.
(2) Each limousine or transportation network company vehicle
operated by the limo carrier of passengers or transportation
network company driver under its certificate of authority shall
pass the safety inspection which meets the department's
specifications for safe operating character and condition for the
renewal of certificate.
(3) A limousine or transportation network company vehicle that
does not pass a required inspection shall not be operated over the
public highways of this state.
Sec.
21. (1) Each limo carrier of passengers who or
transportation network company driver that holds a certificate of
authority issued under this act shall pay to the department an
annual renewal fee equal to $50.00 times the number of limousines
used exclusively by the carrier to provide transportation of
passengers for hire or the number of transportation network company
vehicles used by the transportation network company driver to
provide transportation of passengers for hire and meeting annual
renewal inspection requirements of section 19. An annual renewal
fee of $500.00 shall be paid for any limousine or transportation
network company vehicle not meeting the annual renewal inspection
requirement of section 19.
(2) For newly acquired limousines purchased by a limo carrier
of passengers who holds a certificate of authority issued under
this act to provide transportation for hire, the carrier shall pay
to the department a maximum $50.00 fee per limousine to obtain a
current
year certification after the inspection required pursuant
to
under section 19.
For newly acquired transportation network
company vehicles providing transportation for hire for a
transportation network company, the transportation network company
driver shall pay to the department a maximum $50.00 fee per
transportation network company vehicle to obtain a current year
certification after the inspection required under section 19.
(3) All certificates granted by the department terminate on
the last day of February of each year unless renewed on or before
that date with payment of the appropriate fee prescribed by this
section.
The certificate of any limo carrier of passengers who or
transportation network company driver that is delinquent in payment
of fees required to be paid by this section is canceled and revoked
on or after March 1 of the year for which renewal should have been
made
under the requirements of this section, and the a limo
carrier
of
passengers shall be is prohibited from operating any of its
vehicles upon or over the highways of this state. All privileges
granted to the limo carrier of passengers or transportation network
company under the expiring certificate shall cease.
Sec.
23. Each limo carrier of passengers who or transportation
network company driver that holds a certificate of authority under
this act may have the annual renewal inspection required under
section
19 done pursuant to under section 14, and then shall submit
to the department a copy of the safety inspection report and pay
the department a fee equal to $5.00 times the number of limousines
or transportation network company vehicles inspected.
Sec. 25. If the insurance coverage required under this act is
canceled for any reason, the certificate of authority issued to
that limo carrier of passengers or transportation network company
driver shall be considered revoked without any further action by
the department.
Sec. 27. The department may use all available legal and
equitable remedies of a civil nature to enforce this act, an order
issued,
or a rule promulgated pursuant to under this act. The
department may employ such experts, assistants, inspectors, and
other personnel as may be necessary, subject to civil service
rules, to enable it to administer and enforce this act. An employee
of the department shall not ask or receive any fee from a person
for the taking of acknowledgments or any other service. State and
local police officers shall enforce this act and the rules
promulgated
pursuant to under this act. A peace officer may arrest,
on sight or upon warrant, any person found violating, or having
violated, a provision of this act or a rule promulgated under this
act.
The attorney general of the this
state and the prosecuting
attorneys
of the counties of the this
state shall prosecute all
violations of this act. When this act is violated, the offense may
be prosecuted in any jurisdiction in or through which any limousine
or transportation network company vehicle implicated was present at
the time of the violation.
Sec. 29. (1) Each person subject to this act who operates a
limousine service and each transportation network company driver
subject to this act who operates a transportation network company
vehicle or a class B limousine without obtaining a certificate of
authority required under this act or without meeting the insurance
requirements
provided in this act shall be is
subject to a fine of
not more than $500.00. Each violation constitutes a separate
offense.
(2) A person who commits fraud, misrepresentation, trickery,
or deceit in connection with inspections conducted under this act
shall be subject to a fine of not more than $500.00. Each violation
constitutes a separate offense.
Sec. 31. A limo carrier of passengers or transportation
network company driver, or an officer or agent of a limo carrier of
passengers or transportation network company driver, who that
requires or permits a driver or operator to drive or operate a
limousine or transportation network company vehicle in violation of
this act, or a rule promulgated under this act, is guilty of a
misdemeanor , punishable by a fine of not more than $500.00 or by
imprisonment for not more than 90 days, or both.
Sec. 37. The department shall promulgate rules to implement
this
act pursuant to under the administrative procedures act of
1969,
Act No. 306 of the Public Acts of 1969, being sections 24.201
to
24.328 of the Michigan Compiled Laws. 1969 PA 306, MCL 24.201 to
24.328. The rules shall include standardized forms to be used by
all certified mechanics performing inspections required by section
19. The department shall also include criteria for designation of
registered motor vehicle repair facilities as inspection stations
for limousine and transportation network company vehicle
inspections required under this act.
Enacting section 1. This amendatory act takes effect 90 days
after the date it is enacted into law.