📢 Toyota Sienna Owners NEED To Testify On April 19th! (Part 2)
TLC Zoom hearing at 10am next Wednesday shouldn't be ignored. Part 2 (of two part series) focuses on INSURANCE CHANGES, losing your TLC Plates and changes to how quickly one needs to answer directives
Yesterday in Part 1, of our two part series before the NYC Taxi & Limousine Commission hearing on Wednesday, April 19th at 10am, we overviewed:
The Commuter “Dollar” Van market
The Persistent Violator Program, dealing with how many TLC & DMV points a driver can accrue before facing suspension, license revocation or even a ban!
Today, in Part 2, we will briefly overview, to the best of our current abilities, the other subjects and amendments to the TLC Rules that will be discussed at next Wednesdays hearing.
🎤 To reiterate, we think it’s actually VERY IMPORTANT to testify and make your voices heard as this is a hearing where policy suggestions can be questioned, it’s NOT a vote.
⚠️ Insurance Change
The proposed rule amendments around insurance changes SEEM CONCERNING. We encourage any of our readership, who are more versed in these topics to please add comments or email us at info@automarketplace.com.
Based on our reading (take with a grain of salt 🧂 and do not rely on), this is our interpretation of the proposed TLC amendments.
This might actually be very important for SUV or Van drivers ⚠️, language is being proposed that redefines seating capacity limits for standard FHV insurance liability coverage.
More pronounced language is being proposed that defines Eight to Fifteen, as a separate insurance category. This is a change in language from Nine to Fifteen.
For example, many Toyota Siennas or Chevy Suburbans have an eight person seating capacity!
We don’t mean to be alarmist and perhaps it’s our misunderstanding, but this would have a major impact on the costs to operate many VERY POPULAR FHV models from the Toyota Sienna to Chevy Suburban. It would categorize those vehicles into a much higher insurance bracket, requiring $1.5 million liability coverage!
In addition, in Chapter 58 - Medallion Taxicab Service and Chapter 59 - For-Hire Service, insurance coverage requirements are adding language that includes $10,000 minimum liability for injury to or destruction of property.
Given our work in and analysis of the TLC liability insurance industry, we looked at sample coverage that an FHV has that works for Uber, Lyft and other Black Car bases. The $10,000 property damage liability coverage already seems to be a requirement, but perhaps we are incorrectly analyzing the policy. Again, any technical TLC insurance experts out there please comment below and tell us what we are missing! Are the amendments simply just having medallion taxis follow the same insurance rules as other FHVs?
How To Lose Your TLC Plates?
Given the FHV License Pause (a/k/a TLC Plate Cap), the prospect of losing one’s TLC Plates is somewhat of a nightmare scenario to imagine for many drivers and fleets. While next Wednesdays hearing is actually just making minor changes to already existing language, we think its important to remind fleets and drivers how one can potentially lose their FHV License (a/k/a TLC Plates).
The last sentence of the TLC’s Public Notice about next Wednesdays hearing ominously states 👀…
Let’s break this sentence, found in Chapter 59 of the TLC Rules, into two parts:
Surrendered
The addition of the word voluntarily is helpful and we commend the TLC for this additional language. For example, a TLC Driver could use a commercial dispute with a leasing company to “hostage negotiate” by stating they will stop by a DMV and hand in the TLC plates attached to the FHV Corporation. The leasing company may then be forced to file a police report (e.g., “stolen property”) and, in turn, the TLC Driver will then have a criminal record (e.g., might lose their TLC Drivers License altogether).
You don’t want commercial disagreements to turn into legal action that has very severe impacts on a drivers ability to operate altogether - even a nasty leasing company is not looking to do that to a driver, UNLESS forced to.
Obviously, if one voluntarily hands in their TLC Plates to the DMV, it makes sense that your FHV License immediately terminates. Given the TLC Plate Cap, it’s increasingly uncommon that TLC Plates would voluntarily be handed in early, but a common reason could be be a driver leaving the industry and/or moving out of the area.
Revoked
Understanding how TLC Plates could be revoked is probably pretty important for most drivers and fleets. Wednesdays meeting will be platform to ask questions about already existing language NOT new language.
As we said yesterday, TLC Drivers should use this opportunity to get public & recorded statements from the TLC Chair & Commission. It’s important for drivers and FHV Corporations to understand their obligations and rights.
Ok, so how does a TLC driver or FHV Corporation lose their TLC Plates?
The simple answer to that question is not following the rules and staying in regulatory compliance (e.g., inspections, DMV registration, insurance). Chapter 59, specifically Sub-Chapter 59A, is where specifics are given.
Some noteworthy examples of how one can lose their TLC Plates include the following:
Material Misrepresentation
Essentially lying or misrepresenting something to the TLC. However, a hearing will be held before a final decision is made.
Non-Compliance With Rules or Non-Use
This can apply to a lot of things, but obvious examples will include not passing a TLC inspection. Remember, the TLC will issue a summons for several non-compliance matters, which will allow an FHV License Owner to rectify a suspension (not a revocation).
Where we think hearing testimony should focus on relates to legitimate technical issues that occur, that may temporarily cause non-compliance. Remember, the above is EXISTING language in TLC Rules, NOT new language being proposed.
For example, the inability to pass a NYS inspection because a vehicle “is down”. The TLC should clarify that FHV owners have additional time to resolve a technical matter, if a “best effort” is clearly shown and communicated (e.g., part shortages are preventing a vehicle from being repaired in a timely manner, DMV documentation delays post purchasing a vehicle, insurance claim is taking months to process leaving an FHV owner with no vehicle).
Other
At the risk of turning the article into a legal brief, drivers and TLC fleets, should familiarize themselves with other technical reasons in TLC Rules Chapter 59 that could cause them to lose their TLC Plates.
We also think the TLC has to make rules easier to understand and digest for FHV Owners, as many in the industry may not be able to technically understand the rules given their educational background and/or language barriers.
3 Days, Not 10 Days To Respond
Another proposal relates to how quickly TLC licensees have to respond to TLC directives, or requests for information. Simply, the TLC wants response time to decrease from 10 days to 3 days.
We understand there are legitimate, including passenger safety, reasons for the change. However, we would suggest hearing testimony to include the following thought…
The TLC MUST email all directives (& summonses). The TLC still uses ONLY (paper) mail for a lot of communication.
Medallion Leasing Payments
In Chapter 58 - Medallion Taxicab Service language is being proposed related to providing additional protection to ensure yellow cab medallion drivers who lease a medallion (or medallion & vehicle) are paid by the medallion owner and/or medallion owner’s designated leasing agent in a timely manner. This does not seem controversial.
As always, let us know your thoughts in the comments section below or by emailing us at info@automarketplace.com.
AutoMarketplace NYC covers the for-hire transportation industry and automotive news. Check out AutoMarketplace on YouTube ▶️
10 days to 3 days with all the problems now with the Postal Service. That’s just plainly capricious and borders on evil. Arguably, ten days isn’t even enough if you’re out of the country, which drivers sometimes are. I often scratch my head about what the TLC really thinks about drivers.
The 9 to 8 seats for insurance changes is chilling. Another capricious move. What would even be the thinking behind that? Incredible.
I have a WAV Siena. Are they saying that new policy are going from 9 to 8 passengers. With the WAV. I can only hold 6 total.