SENATE BILL No. 184

 

 

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.