🟨 Can TLC Take Away Your Plates, If You Don't Do A Trip For 60 Days?
Taxi & Limousine Commission is issuing FHV License (a/k/a TLC Plate) *revocation* summonses for 60 days of "nonuse"
Taxi & Limousine Commission (TLC) has issued hundreds of “nonuse” summonses, citing Section 19-504(g) of the New York City Administrative Code
19-504(g) states TLC “shall revoke any license for nonuse when a vehicle has not been operated for sixty consecutive days”
FHV License owner(s) will lose TLC Plates, if found guilty
Given FHV License Pause (a/k/a TLC Plate Cap), we believe invoking this rule is unfair
Based on discussion with former TLC Deputy Commissioner and veteran attorney Charles J. Tortorici, Esq., summonses citing Section 19-504(g) were generally uncommon, except for vehicles unaffiliated with a base
People love talking about TLC Plates 🟨 It’s intriguing in the same way a taxi medallion is or NYC air rights are. It’s a niche asset that derives value from a specific and dynamic set of New York City regulations. For example, if the Taxi & Limousine Commission announced the release of 20,000 *new* FHV Licenses tomorrow, any value associated with TLC Plates (& taxi medallions) would decline in the same way air rights might lose value if the City changed zoning regulations.
As we’ve covered over several articles from the issuance of 1,000 *new* EV-only TLC Plates to the recently launched SHL Pilot to the “TLC Plate Cap” implemented in August 2018 - drivers, fleets and other industry participants are always interested in any noteworthy developments around TLC Plates. When a lot of money is involved, people naturally take notice.
“Over the past 55 years, New York City has developed a system of transferring air rights in order to achieve both broad and specific urban planning goals…Developers are not allowed to build as high as they’d like, unfettered by zoning regulations. If they did, quality of life would decline since the city would be a whole lot more dense, a whole lot darker and a whole lot more congested. To prevent the over saturation of the city with tall buildings sardined next to each other, the city rehauled its zoning regulations in 1961 and placed some restrictions on developers. These restrictions were intended to ensure that the new construction buildings would not denigrate quality of life while allowing for the development of new commercial, residential and public property.”
- StreetEasy
How To Lose Your TLC Plates?
There are several different ways an individual or fleet can lose their NYC TLC Plates. For example, if a driver quits the industry and hands in their TLC Plates to the DMV (Receive FS-6 form)…then they come back two years later, demanding their plates back…tough luck 🤷♀️. The TLC has every right to NOT reinstate their FHV License.
However, if an NYC TLC driver got critically ill or was involved in an accident that prevented them from complying with rules, then the TLC needs to be flexible. Remember, permanently retiring a driver or fleet’s TLC Plates fundamentally changes how they can operate their business, given no new “unencumbered” FHV Licenses are being issued now.
60 Days Of “Nonuse” Summonses
Recently, it’s come to our attention that the TLC is issuing summonses related to “nonuse” that result in TLC Plate 🗙 REVOCATION 🗙, as in TLC Plates are permanently retired. This is quite clearly a scary thought for many, and we’ve shared an image of how the summons looks at the top of this article.
The summons we shared references the New York City Administrative Code, Title 19: Transportation, Chapter 5: Transportation of Passengers for Hire by Motor Vehicles, § 19-504 General provisions for licensing of vehicles, subsection (g)…😐 hopefully you’re still with us.
“The commission may revoke any license for nonuse in the event it shall determine that the vehicle has not been operated for sixty consecutive days, provided that such failure to operate shall not have been caused by strike, riot, war or other public catastrophe or other act beyond the control of the owner; or in the event the owner has sold his or her vehicle and has failed to replace the vehicle within one hundred and twenty days from the date of sale. However, in the event that it is shown to the commission by competent proof that an owner-driver has been disabled through illness, his or her license shall not be revoked because of such nonuse as provided in this subdivision.”
- The New York City Administrative Code, Title 19: Transportation, Chapter 5: Transportation of Passengers for Hire by Motor Vehicles, § 19-504 General provisions for licensing of vehicles, subsection (g) (Source: American Legal Publishing)
To be fair, some leeway was shown by providing clear exemptions from the 60-day rule related to vehicle replacement and sickness. However, what if a driver or fleet operator had other, unpredictable or non-emergency reasons for not using their FHV License for 60 days (i.e., starting a new business, trying to find a reliable lessee)? Why should they be forced to hand in their TLC Plates?
Natural TLC Plate Attrition & EVs
We appreciate the City & TLC must promote natural attrition and “TLC Plate” hoarding should be discouraged, if an FHV License is not in active use. Many TLC drivers would like the opportunity to get out of leasing arrangements and the TLC would also love a justification to add more ⚡ electric vehicles (EVs) while also not incrementally adding more *new* vehicles to the total fleet (i.e., reinstating recently revoked TLC Plates by redistributing them as EV-only TLC Plates).
Our simple suggestion is this. Given there is now a TLC Plate Cap, the timeline to force attrition (TLC Plate 🗙 REVOCATION 🗙) should to be longer than 60 days of nonuse. We believe the City rule should change by first giving an initial warning, with associated fine, after 60 days of nonuse. Then, after 120 days, a formal revocation hearing should be held if the FHV License owner is not using their TLC Plate(s).
As always, let us know your thoughts in the comments section.
We wanted to thank Attorney Charles J. Tortorici, Esq. for helping us understand issues mentioned in the article. He can be reached directly at (917) 671 8264 or inbox@tsllp.law.
AutoMarketplace NYC covers the for-hire transportation industry and automotive news. Check out AutoMarketplace on YouTube ▶️
They should be revoked and given to people that needs it . Too many people taking advantage of drivers renting out plates for $200 a week . Use it or loose it .
“Given FHV License Pause (a/k/a TLC Plate Cap), we believe invoking this rule is unfair”
You must’ve took a week to write this omg
If the plate owner wants the plate he should be able to do a trip now and then , this is proof that the medallion is valuable compared to the fhv plate, the whole point of being non transferable is that you work it or lose it bc you can’t sell it . Medallions can be bought and sold period.