Model Regulations: Smartphone Application Technology for Taxicabs & Limousines Workshop Prof. Pasqualino “Pat” Russo, Esq. -Special Counsel, Windels Marx Lane & Mittendorf, LLP -Former Chief Judge, New York City Taxi & Limousine Commission
Panel Members - Tom Drischler , Taxicab Administrator, Los Angeles Department of Transportation - Christiane Hayashi , Director, Taxis and Accessible Services, SFMTA - Jacques P. Lerner , General Counsel to the D.C. Taxicab Commission - Carlton Thomas , Transportation Regulatory Supervisor, City of Austin Transportation Department
We know that smartphone apps are transforming for-hire industry operations
Regulators like technology – and always have! In fact, the industry is encouraged to innovate.
Although innovative, there are some Apps today that operate outside of the regulations. The technology is new, but operating outside the law is NOT a new problem. The I ATR needed to address that.
Fair regulations ensure consumer protections, public confidence and a level playing field – there is room for Apps – but some Apps do not want to play nice in our sandbox.
In response to the Rogue Apps Report findings in June 2012, the IATR Smartphone Apps Committee was formed to fix these problems. = +
So what did we accomplish with these model regulations?
We addressed consumer confusion. - The regulations remove loopholes and clearly define taxis and limousines/executive sedans - The regulations define on-demand and prearranged, and include an “e-hail” definition - The Apps can’t call themselves taxicabs or taxi unless they fit the definition of a taxi - Apps try to act like taximeters, but they are not, and are BANNED until NIST and NCWM determine otherwise
How much do you pay? The passenger will understand the fare – either a taximeter or a - prearranged flat fare Apps can’t act like a taximeter – and charge like one - In a taxi, you pay what is on the meter – no surprises - In a flat fare, passengers get the fare amount – up front - Some Apps charge more when there is a higher demand. They - call it “demand pricing” but we know it as “price gouging” One company did this after Hurricane Sandy! -
Ridesharing We saw this issue in the June 2012 Rogue Apps Report - We initially addressed ridesharing in the proposed Model - Regulations at the international public hearing We issues a separate report in May 2013: “Ridesharing Applications: - Illegal Hitchhiking-For-Hire or Sustainable Group Riding?”
The regulations require transparency. - Apps must be licensed – in some form. The local community and its regulators will decide exactly how to do so. - Computer programs operate in the background – but the Apps are out in the open.
Apps must be responsible. - If the community has accessibility requirements, the Apps are also responsible for compliance. - Apps can’t require passengers to waive their rights.
At its meeting in Washington, D.C. in November 2012, the IATR Board reviewed the model regulations, accepted the App Committee’s report, and agreed to support our fair and necessary approach to fix these problems. The IATR Board pledged to work with the Apps Committee to work with communities to pass these regulations – in a form that is consistent with the local rules – to encourage innovation, protect the public, and provide a level playing field for all participants in the transportation industry.
The Final Regulations - International public hearing held on November 16, 2012 - Comment period extended to March 31, 2013 - Model Regulations issued at this conference
Meanwhile….. California, Colorado, Maryland, Texas and New York
What’s Next? - There is more to do… - After this conference, we take this show on the road - Our next steps will be to assist local regulators enact these regulations in the context of their local concerns. - The model regulations present a menu – with choices for regulators - Whatever the local concerns may be, we are here to help!
PANEL DI SCUSSI ON
Prof. Pasqualino “Pat” Russo, Esq. Special Counsel, Windels Marx Lane & Mittendorf, LLP E-Mail: prusso@windelsmarx.com Phone: 1-(212)-237-1134 Website: www.windelsmarx.com
THANK YOU!
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