Download as pdf or txt
Download as pdf or txt
You are on page 1of 21

07/04/2016

Agenda Item History - 2016.LS10.3

Item
TrackingStatus
ThisitemwillbeconsideredbyLicensingandStandardsCommitteeonApril14,2016.Itwillbe
consideredbyCityCouncilonMay3,2016,subjecttotheactionsoftheLicensingandStandards
Committee.

LicensingandStandardsCommitteeconsiderationonApril14,2016

LS10.3

ACTION

Ward:All

ANewVehicleforHireBylawtoRegulateToronto'sGround
TransportationIndustry
PublicNoticeGiven
Origin
(March31,2016)ReportfromtheExecutiveDirector,MunicipalLicensingandStandards
Recommendations
TheExecutiveDirector,MunicipalLicensingandStandards,recommendsthat:

PART1CreateaVehicleforHireBylaw

1. CityCouncildirectthatthebylawsgoverningtaxicabsandlimousines,andthedirections
arisingfromthisreport,becombinedtocreateaVehicleforHirebylawthatgoverns
taxicabs,limousinesandPrivateTransportationCompanies(PTC),baseduponthe
followingrecommendations.

2. CityCouncildirecttheExecutiveDirectorofML&StoreportbacktotheLicensingand
StandardsCommitteewithinoneyearfromthedateofenactmentofthenewbylaw,with
anupdateontheimplementationandoutcomesofthebylaw.

PART2VehicleforHireAccessibilityStrategy

3. CityCouncilendorsethegoalofachievinganinclusiveandaccessiblevehicleforhire
industrythatwillensurethatallTorontoresidentsandvisitorshaveequalaccessto
Toronto'svehicleforhireindustry.

4. CityCouncilacceleratethenumberofaccessibletaxicabsavailableforondemand
meteredserviceto25%ofthetaxicabfleetby2021byauthorizingtheissuanceofupto
200incrementalTTLstodriversonthewaitinglistforeachofthenextfiveyears,
http://app.toronto.ca/tmmis/viewAgendaItemHistory.do?item=2016.LS10.3

1/21

07/04/2016

Agenda Item History - 2016.LS10.3

effectiveimmediately.

5. CityCouncilwaivelicenceapplicationandrenewalfeesforTTL,Wheelchairaccessible
taxicabowners,andanytaxicabownerwhohasaD409compliantwheelchairaccessible
vehicle,effectiveimmediatelyandretroactivetoJanuary1,2016.

6. CityCouncilwaivetrainingfeesfortaxicabdriversandownerswhowanttobetrainedto
driveaccessibletaxicabvehicles,effectiveimmediately.

7. CityCouncilmandatethatanyPTCthathasmorethan500vehiclesaffiliatedwithor
registeredtoprovidetransportationservicesberequiredtoprovidewheelchairaccessible
servicetothepublic,inaccordancewiththefollowing:

a. AccessiblePTCservicesmeansthatwheelchairaccessiblevehiclesareavailable
whenrequestedwithinwaittimesthatarecomparabletononaccessibleservices
andatfaresthatarethesameasbasicnonaccessibleservices.

b. "Comparablewaittimes"meansthatthetimeelapsedbetweenthepassengers
requestforserviceandthearrivalofavehicleatthepassengerslocationin
responsetothatrequestforserviceisnomorethantheaverageindustrywaittime
fornonaccessibleservices,asdeterminedannuallybytheExecutiveDirector,
ML&S.

c. ThePTCwillreportonaccessibleservicedelivery,includinginformationon
averagewaittimesofaccessiblePTCvehicles,inafrequencyprescribedandform
approvedbytheExecutiveDirector,ML&S.

8. CityCouncilrequirethatalldriversofaccessiblevehicleforhireservicescompletea
trainingprogramthatmeetsthecriteriasetoutbytheExecutiveDirectorofML&S,
includingrefreshertraining.

9. CityCouncildirecttheExecutiveDirectorofML&Storeportbacktotheappropriate
standingcommitteeonastrategytocollectfundsfromallnonaccessiblevehiclesfor
hiretoprovideincentivestoincreasethenumberofondemand,meteredaccessible
taxicabsavailabletothepublic.

PART3ProposedChangestoTaxicabRegulations

TaxicabFaresandTaxicabBrokers:

10. CityCouncilpermitTaxicabBrokeragestoofferratesdiscountedfromCityregulated
ratesifthepassengerbooksthetripthroughtheTaxicabBrokerage,effective
immediately,where:
http://app.toronto.ca/tmmis/viewAgendaItemHistory.do?item=2016.LS10.3

2/21

07/04/2016

Agenda Item History - 2016.LS10.3

a. thetaximetercandisplaytheapplicableratetobechargedforthattrip
b. thebrokerhassetandposteditsratesand/ordiscountsfortaxicabsand
c. theratechargeddoesnotexceedthemaximumfareascalculatedbythemeteratthe
Cityregulatedrates.

11. CityCouncilnotrequirethatTaxicabBrokerspaythetaxicabdriverthedifference
betweenthediscountedorflatrateandtheCityregulatedrate,effectiveimmediately.

12. CityCouncilrequirethattaxicabschargetheCityregulatedtaxicabratewhenacustomer
eitherstreethailsorusesacabstandtohireataxicabanddirecttheExecutiveDirectorof
ML&Storeviewtheratewithintheyear.

13. CityCouncilpermittheuseofelectronictaximetersthatmeetsecuritycriteriaandother
standardstobeestablishedbytheExecutiveDirectorofML&S,andremovethecurrent
requirementtosealtaximeters,effectiveimmediately.

TaxicabOwnershipandLicensing:

14. CityCouncildeletetherequiredminimumowneroperatorhoursforAmbassador
taxicab,TorontoTaxicab,andWheelchairAccessibletaxicabowners.

15. CityCouncildeletetherequirementthataTorontoTaxicabLicencebeissueduponthe
saleofaStandardorAmbassadortaxicab.

16. CityCouncildirectthatallAmbassadortaxicabsbedeemedtobeStandardTaxicabs,
effectiveimmediately.

17. CityCouncildirectthatwhenaStandardtaxicabvehicleissold,thenewpurchasermay
beissuedaStandardtaxicablicence,subjecttomeetingtherequirementsofaqualified
purchaser.

18. CityCouncilremoverestrictionsthatprohibitapersonfromowningmorethanone
taxicab.

19. CityCouncilremovetheprovisionsthatrestrictstaxicabownersfromincorporating.

TaxicabDrivers:

20. CityCouncilreplacetheexistingtaxicabandlimousinedriverlicenceclassesandcreate
anew"VehicleforHireDriver"licenceclasstopermitlicenseddriverstooperateeither
taxicabsorlimousinestobeissuedtoallnewtaxicaborlimousinedriverapplicantsand
toallexistingtaxicaborlimousinedriversatthetimeoftheirlicencerenewal.
http://app.toronto.ca/tmmis/viewAgendaItemHistory.do?item=2016.LS10.3

3/21

07/04/2016

Agenda Item History - 2016.LS10.3

21. CityCouncildirectamendmentstotheDrivers'WaitingList:
a. Removetheannualfilingrequirementsfordriverstomaintaintheirplaceonthe
Drivers'WaitingListand
b. FreezetheDrivers'WaitingListeffectiveMay4,2016(forthosewhoareingood
standingasatthatdate).

22. CityCouncildirecttheExecutiveDirector,ML&Storeportbackoncealldriversonthe
Drivers'WaitingListhavebeenofferedtheopportunitytoobtainaTorontoTaxicab
licencewithaproposaltoaddressfuturetaxicablicenceissuance,asnecessary.

TaxicabVehicles,Inspections,andInsurance:

23. CityCouncilamendtaxicabvehiclerequirementsbypermittingAmbassadorand
Standardtaxicabs,effectiveimmediately,to:
a. beanyfourdoorvehicle,andremovingtherequirementforlowemission/hybrid
vehicles
b. benomorethan7modelyearsold,butbepermittedtobelicensedatanytime
withinthe7modelyearsand
c. carryamaximumof7passengersplusthedriver.

24. CityCouncildirectthattherequirementsforalltaxicabvehiclestoattendinitialand
semiannualmechanicalandfitnessinspectionsattheCityinspectioncentre,andattend
allotherinspectionsasnecessary,remain.

25. CityCouncilauthorizetheExecutiveDirector,ML&Stoundertakeareviewofthe
taxicabvehicleinspectionprocesstoassessoptionsandthefeasibilityofalternative
vehicleinspectionprograms,includingundertakinganypilotprograms,asappropriate.

26. CityCouncildeletetherequirementthatsnowtiresbeinstalledeachwinter.

27. CityCouncilrequirethatanyadvertisingontaxicabsnotinterferewithorreduce
visibilityoftaxicabidentificationandremoverequirementthatadvertisingontaxicabsbe
approvedbyML&S.

28. CityCouncildirectthattheexistingrequirementfortaxicabvehiclestocarryinsuranceat
$2,000,000dollarsofliabilitycoveragetoprotectpassengersanddriversisretained.

TaxicabTraining:

29. CityCouncildeletetherequirementthatownersanddriversofnonaccessibletaxicabs
completeinitialandrefreshertrainingprogramstoobtainalicence,effective
immediately.
http://app.toronto.ca/tmmis/viewAgendaItemHistory.do?item=2016.LS10.3

4/21

07/04/2016

Agenda Item History - 2016.LS10.3

30. CityCouncildeletetherequirementthattaxicabdriversandownerscompleteCPR
trainingandFirstAidcertificationasaconditionoflicensing,effectiveimmediately.

31. CityCouncildeletetherequirementforcommandoftheEnglishlanguageasacondition
oflicensing,effectiveimmediately.

TaxicabManagement:

32. CityCouncilestablishanewlicensingclassfor"TaxicabOperators".ATaxicab
Operatorisanindividualorcorporationresponsibleforthemanagementorcontrolofa
taxicabvehicleonbehalfoftheowner.TheTaxicabOperatormaybelistedasaco
ownerofthevehicleusedasataxicabonthevehicleregistration.

33. CityCouncilrequirethatindividualsorcorporationslicensedasaTaxicabOperators
must:
a. renttaxicabstolicensedvehicleforhiredriversonashiftbasisonly
b. maintainalistoflicenseddriverswhoarerentingtaxicabsfromtheTaxicab
Operatorandkeeprecordsfor12months
c. maintainrecordsthatdetaildateandtimeofwhichtaxicabwasrentedbywhich
driverandkeeprecordsfor12months
d. ensurethateachtaxicab:
1. isfreefrommechanicaldefects
2. isproperlyequippedasperthebylaw
3. hasacleanexteriorandinterior
4. isingoodrepairastoitsexteriorandinterior
e. provideanitemizedreceipttodriversforshiftrentals,andmaintainrecordsof
receiptsforaminimumofoneyear
f. ensurethatplaceofbusinesscomplieswithzoningandallotherapplicablebylaws
and
g. providerecordsdescribedabovetoML&Swithin5businessdaysofrequest.

34. CityCouncilrequirethatanyindividualorcorporationwhoentersintoanagreement
assumingresponsibilityforthemanagementorcontrolofavehicleoperatingasataxicab
mustholdaTaxicabOperator'sLicence.

35. CityCouncilpermitaTaxicabOperatortoenterintoagreementstomanageorcontrol
morethanonetaxicabatatime.

36. CityCouncilprohibitmorethanoneTaxicabOperatorfrommanagingorhavingcontrol
ofasingletaxicabvehicleatanyonetime.

http://app.toronto.ca/tmmis/viewAgendaItemHistory.do?item=2016.LS10.3

5/21

07/04/2016

Agenda Item History - 2016.LS10.3

37. CityCouncilrequirethatataxicabownerremainsresponsibleforensuringthatthe
taxicabismaintainedandmanagedinamannerthatiscompliantwiththerequirements
oftheVehicleforHireBylaw,evenwhentheownerengagesaTaxicabOperator.

38. CityCouncilrequirethattaxicabownersfilenoticewithML&Siftheyhaveenteredinto
anagreementwithaTaxicabOperator,andensurethatthisinformationremainscurrent
byadvisingML&Sinwritingwithin7daysofanychange,inaformapprovedbythe
ExecutiveDirector,ML&S.

39. CityCouncildirectthattheeffectivedateforimplementationoftheTaxicabOperator's
licencebeJuly15,2016,andpermitaoneyearphaseinoftherequirements,andthatthe
applicationrequirementsforthelicencebeasprescribedinthegeneralprovisionsofthe
bylaw.

40. CityCouncildeleteprovisionsgoverningleaseagreementsbetweentaxicabownersand
lessees.

41. CityCouncildeleteprovisionsregardingdesignatedagentsanddesignatedcustodians.

PART4ProposedChangestoLimousineRegulations

LimousineBrokerRegulations:

42. CityCouncilreplacetheLimousineServiceCompanylicenceclasswithaLimousine
Brokerlicenceclass,andrequirethatLimousineBrokers:
1. setandpostratesforlimousines
2. postbusinesscontactinformationforthepublic
3. onlydispatchlicensedlimousinesdrivenbyindividualsholdingvalidVehicleforHire
driverslicence
4. keeprecordsofeveryvehicledispatchedfor12months,including:
1. Dateandtimeofdispatch
2. Pickuplocationanddestinationofeverytrip(byreferencetoclosestintersection)
and
3. Nameoflimousinedriverandowner.
1. provideML&Salistofalldriversandownerswhocontractorareaffiliatedwiththe
LimousineBroker,includingthelimousines'licenceplatenumbers,andfileanychanges
withML&Swithin72hours
2. keeparecordshowingthetotalnumberofrequestsforservicereceived
3. providerecordsasdescribedabovetoML&Swithin5businessdaysofrequestand
4. defineaLimousineBrokerincludesa"person"ormultiplepersonswho,actingtogether,
carryonthebusinessofalimousinebroker,despitethefactthatnosingleoneofthose
personscarriesontheactivityinitsentirety,andsuchpersonsshallbesubjectto545
2A,andmaybeheldjointlyandseverallyresponsibleforeachother'sactions.

http://app.toronto.ca/tmmis/viewAgendaItemHistory.do?item=2016.LS10.3

6/21

07/04/2016

Agenda Item History - 2016.LS10.3

LimousineFares:

43. CityCouncilpermitLimousineBrokerstosetlimousinerates,anddeletethecurrent
minimumfareof$70perhourforthefirsttwohours.

LimousineOwnership:

44. CityCouncildeletethecurrentlicenceissuancerequirementofastretchtosedanfleet
ratio,andpermitLimousineBrokerstodeterminetheappropriatetypeandnumberof
licensedlimousinesrequiredfortheirbusiness.

45. CityCouncilrequirethatallLimousineOwnersaffiliatewithaLimousineBroker.

LimousineOperation:

46. CityCouncilrequirethatallLimousinetripsbebookedthroughaLimousineBroker.
Limousinesarenotpermittedtosolicitridesorrespondtostreethails.

47. CityCouncildeletetherequirementthatlimousinesbebooked20minutesinadvanceof
atrip.

LimousineVehicles,Inspection,andInsurance:

48. CityCouncilamendLimousinevehiclerequirementsby:
a. permittinganyfourdoorvehiclewithaseatingcapacityofuptosevenpassengers
plusthedriver,exceptthepassengerrestrictiondoesnotapplytostretch
limousinespurposebuiltormodifiedtoprovideanextendedseatingareaand
b. imposingasevenyearrestrictionontheageofavehicletobeoperatedasa
limousine,exceptastretchlimousineforwhichaneightyearrestrictionapplies.

49. CityCouncildeletetherequirementforlimousinevehicleinspectionstobeconductedby
theCityandrequire:
1. LimousineownerstofileavalidSafetyStandardCertificateissuedbyaMinistryof
Transportationlicensedgarageauthorizedtoundertakesuchinspectionsupon
application,andannuallythereafter
2. limousinedriverstocarrytheoriginaloracopyofthemostrecentSafetyStandards
Certificateinthevehicleatalltimesand
3. limousinedriverstoproducetheSafetyStandardsCertificateuponrequestofa
MunicipalStandardsOfficerorpoliceofficer.

50. CityCouncildirectthatallexistingrequirementsforlimousinevehicles,notamended,be
retainedsuchas:
a. currentinsurancerequirementsforlimousinesat$2,000,000ofliabilitycoverage
toprotectpassengersanddriversand
http://app.toronto.ca/tmmis/viewAgendaItemHistory.do?item=2016.LS10.3

7/21

07/04/2016

Agenda Item History - 2016.LS10.3

b. prohibitionfromhavingarooflightoranymarkingsthatcouldmakethevehicle
looklikeataxicab.

LimousineTraining:

51. CityCouncildeletetherequirementforlimousineownersanddriverstocompletethe
initialandrefreshertrainingprogramsasaconditionoflicensing,effectiveimmediately.

52. CityCouncildeletetherequirementforlimousineownersanddriverstocompleteCPR
trainingandobtainFirstAidcertificationasaconditionoflicensing,effective
immediately.

53. CityCouncildeletetherequirementforcommandoftheEnglishlanguageasacondition
oflicensing,effectiveimmediately.

PART5ProposedRegulationsforPrivateTransportationCompanies(PTCs)

PrivateTransportationCompanyLicensing:

54. CityCouncilestablishanewlicensingclass"PrivateTransportationCompanies"or
"PTCs"thatregulate:
a. Anypersonwhooffers,operates,orfacilitatestransportationservicesfor
compensationusingsoftware,anapplication,oratelecommunicationsplatform(a
Platform)tocommunicatewithpassengersandPTCDrivers.
b. Anypersonfacilitatingtransportationthatsatisfiesthedefinitionofcarpooling
pursuanttothePublicVehiclesActwillnotbeaPTCand
c. Inthisdefinition"person"includesmultiplepersonswho,actingtogether,carryon
thebusinessofaPTC,despitethefactthatnosingleoneofthosepersonscarries
ontheactivityinitsentirety,andsuchpersonsshallbesubjectto5452A,and
maybeheldjointlyandseverallyresponsibleforeachothers'actions.

55. AnyPTCoffering,operating,orfacilitatingtransportationcommencingwithintheCity
requiresaPTClicence.

56. CityCouncilrequirethat,atthetimeoftheirapplicationforaPTCLicence,thePTC
submitinanelectronicformatsatisfactorytotheExecutiveDirector,ML&S,information
sufficienttodescribeordemonstrate:
a. thelegalrelationshipbetweenanypersonsthat,actingtogether,carryonthe
businessofaPTC,ifapplicabletoanapplicant
b. thatthePTCwillhavetheabilitytomeetminimumdatasecurityanddata
provisionstoML&Sasperthebusinesslicencerequirements
c. thatthePTChasappropriateagreements,contractsand/orprocessesinplaceto
screenthecriminalanddrivinghistoriesofdriversprovidingtransportationto
passengersthroughthePTCsPlatform,andtoprovidesuchprovisionstoML&S
perthelicencerequirements
http://app.toronto.ca/tmmis/viewAgendaItemHistory.do?item=2016.LS10.3

8/21

07/04/2016

Agenda Item History - 2016.LS10.3

d. thatthePTCmaintainsandcanproduce,asandwhenrequiredbyML&Sorlaw
enforcement,allrecordsinaccordancewiththelicencerequirements
e. thatthePTCmaintainsandwillprovideregulardailyorweeklyupdatestotheCity
therecordsofdriversthathavecontractedwithittoprovideservicesthroughthe
PTCsPlatform
f. thePTCsregisteredbusinessaddressintheProvinceofOntarioand
g. anindemnityinfavouroftheCityofTorontofromandagainstclaims,demands,
losses,costs,damages,actions,suits,orproceedingsthatariseoutoforare
attributabletothePTC'sbusinessandservices.

57. CityCouncilrequirethatallPTClicencesundertheVehicleforHirebylawbeissued
subjecttoasixmonthprobationaryperiod.Duringtheprobationaryperiod,the
ExecutiveDirector,ML&S,mayconductrandomauditsorinvestigationstoevaluate
compliancewiththebylawandsuspendorplaceconditionsuponthelicence,witha
hearing,forupto14daysathisorherdiscretionifheorshehasreasonablegroundsto
concludethatthecontinuedoperationofthebusinessposesanimmediatedangerto
healthorsafetyofanypersonortoproperty.

58. CityCouncilrequirethataPTClicenceberenewedannually.Atthetimeofeach
renewal,thePTCwillberequiredtoprovidedocumentationsufficienttosatisfythe
ExecutiveDirector,ML&SthatithasandwillcontinuetomeetthePTClicence
requirements.

PTCRecordKeeping:

59. CityCouncilrequirethat,forlicensingenforcementpurposes,thePTCprovideML&S
withdailyelectronicrecordsofdrivers,inanindustrystandardformatasspecifiedby
ML&S.Recordstoincludethefollowinginformationaboutdriversproviding
transportationservicestopassengerstravellingwithinorfromtheCity:
a. Driverfullname
b. DriverProvinciallicenceplatenumber
c. Driverlicencenumberand
d. Makeandmodelofvehicle.

60. CityCouncilrequirethataPTC:
1. priortothecollectionofanypersonalinformation,obtainconsentforthecollectionand
potentialdisclosureofpersonalinformationtotheCityforthepurposespermittedbythe
bylawfromindividualsapplyingorregisteringasdriverstoprovidetransportation
servicestopassengerswithinorfromtheCity
2. maintainCriminalRecordchecksandDriver'sRecordschecksforalldriverspermitted
bythePTCtoprovidetransportationcommencingintheCity
3. maintainrecordsofcompletionandrenewalprovingthatdriversuccessfullymeets
ScreeningCriteria,asmandatedbytheCity
4. complywithanyrequestfortheforegoinginformationoranyrequestforreportsbased
ontheforegoinginformationthataremadebytheExecutiveDirector,ML&S
http://app.toronto.ca/tmmis/viewAgendaItemHistory.do?item=2016.LS10.3

9/21

07/04/2016

Agenda Item History - 2016.LS10.3

5. providetheinformationrequestedintheformatprescribedbytheExecutiveDirector
within30daysoftherequestand
6. beprohibitedfromimposingamandatoryarbitrationclauseonindividualsacceptingor
makingrequestsforservicecommencinginTorontothroughthePTCorrequiringthe
lawoftheNetherlandstobeappliedinrelationtouseofthePTCPlatforminToronto.

61. CityCouncilrequirethataPTCmaintainbusinessrecordsthatincludethefollowing
information:
1. FortripsinvolvingonepassengercommencingorterminatingintheCity:
pickuplocationanddestination(byreferencetotheintersection)
ii.date/timethetripcommencedandterminatedand
iii.lengthoftimeelapsingbetweenthepassengersservicerequestand
commencementofthetrip.
b.Fortripsinvolvingmorethanonepassenger/farecommencedorterminating
withintheCity:
i.totalnumberofpassengerspayingseparatefares
ii.pickuplocation(s)anddestination(s)(byreferencetothe
intersection)foreachtrip
iii.date/timesthetripcommencedandterminated
iv.lengthoftimethatelapsedbetweenthetimethepassenger(s)
requestedserviceandthetripcommencedforeachpassenger
v.thefare(s)paidforthetripand
vi.numberoftripsinvolvingmultiplepassengerspayingseparatefares.
c.WhererequestsmadefortripstocommenceorterminateintheCitythatwere
notprovidedasaresultofdrivercancellation:
i.Pickuplocationanddestination(byreferencetotheintersection)
and
ii.date/timethetripwasrequested.
d.AveragebidirectionalPTCtrafficvolumesbyroadwaylinkonanhourlybasis.

62. CityCouncilrequirethataPTCmaintainandprovidedriverandvehiclerecordsforall
tripscommencingintheCity,including:
a.drivername
b.vehiclelicenceplatenumber
c.typeofservice
d.totalhours/minutesthedriverwasavailabletoprovidetransportationservices
throughthePlatformforrequestedtimeperiod
e.datareflectingthefollowingperiods:
i.Period1:timeperiodbeginningwhenaPTCDriverhasloggedonto
aPTCPlatformandindicatedthattheyareavailabletoreceiveoragree
topassengertriprequests
ii.Period2:timeperiodbeginningwhenaPTCtripisarrangedand
concludingwhenaPTCDriverhasarrivedatalocationtopickupa
passengerand
iii.Period3:timeperiodbeginningwhenaPTCDriverpicksupa
passenger(s)andconcludingwhenthepassenger(s)hasarrivedattheir
destination(s).
http://app.toronto.ca/tmmis/viewAgendaItemHistory.do?item=2016.LS10.3

10/21

07/04/2016

Agenda Item History - 2016.LS10.3

63. CityCouncilrequirethePTCtosubmittoauditsoftheirrecordsasrequestedbythe
ExecutiveDirector,ML&S.

64. CityCouncilrequirethatwhereinformationisneededforlawenforcementpurposes,the
PTCmustmakerecordsavailablewithin24hours.

65. CityCouncilrequirethePTCtokeeprecordsforaminimumofthreeyears.

66. CityCouncilrequirePTCstoprovideaphonenumberandemailaddresstowhichthe
Citymaysendanycommunications,includinganyrequestsforinformationrequiredto
beprovidedpursuanttothebylawandthenameoftheindividualresponsiblefor
receivingsuchcommunications.

67. CityCouncilrequirePTCstocreatepassengeranddriveraccountsforusebytheCityfor
lawenforcementpurposes,uponrequest,andprohibitthePTCfromobstructingaccessto
thoseaccounts.

68. CityCouncilrequireaPTCtodiscloseonitsPlatformandmakeavailableforthepublic:
a. ratestobecharged
b. thecriteriaappliedbythePTCtodriversandvehiclesallowedtooperateonor
throughthePlatform
c. informationonthetypesorcategoriesofservicesavailabletopassengersthrough
thePlatformandthedistinctionsbetweenthesecategoriesortypesofservice,ifany,
includingwhetherdriversregisteredoraffiliatedwiththePTCandproviding
serviceinanycategoryarelicensedbyML&S
d. aplainlanguageexplanationoftheirinsurancecoverage,includingdetailed
informationonhowtoinitiateaclaimand
e. advisethatpersonalinformationcollectedbythePTCmaybedisclosedtotheCity
forthepurposesoflicensingenforcementwhenthepassengerobtainstransportation
serviceswithinorfromtheCity.

PTCDriverRequirements:

69. CityCouncildefineaPTCDriverasanypersonprovidingtransportationtopassengers
forcompensationthroughaPTC.Personsprovidingtransportationthatmeetsthe
definitionofcarpoolingunderthePublicVehiclesActshallnotbedefinedasPTC
Drivers.

70. CityCouncilrequirethePTCtoensurethatpermittedPTCDriversareatleast18years
oldandholdunrestrictedClassGOntariodriver'slicence.

71. CityCouncilrequirethatinadvanceofallowingdriverstousethePTCPlatform,the
http://app.toronto.ca/tmmis/viewAgendaItemHistory.do?item=2016.LS10.3

11/21

07/04/2016

Agenda Item History - 2016.LS10.3

PTCmustrequirethatdrivers:
a.provideacurrentcopyoftheirOntarioDriversLicenceandvehicle
registration
b.mustpassScreeningCriteriaasprescribedbytheExecutiveDirectorofML&S
c.provideconfirmationthattheirpersonalinsurancecompanyhasbeenadvised
thattheyofferorintendtooffertransportationthroughaPTC
d.consenttodisclosureofallinformationprovidedtoPTCtotheCityand/orlaw
enforcementifrequestedbyCityorlawenforcementforthepurposeofauditing
compliancewiththebylaw,investigatingcomplaintsorpotentialbreachesofthe
bylaw,orgenerallawenforcementpurposes
e.onlypermittheownerofavehicletobeofferingtransportationthroughthe
Platformorconfirmationthattheownerunderstandsthattheyarelegally
responsibleforanycontraventionsofthebylawwhentheirvehicleisbeing
operatedtodeliverridesthroughthePTCPlatform.

72. CityCouncilprohibitPTCdriversfrompickinguppassengersatcabstands,soliciting
rides,andrespondingtostreethails,andholdboththePTCandPTCDriverresponsible
foranycontraventionofthisprohibition.

73. CityCouncilrequirethatuponrequestofMunicipalStandardsOfficers,PTCDrivers
produce:
a.driverlicence
b.proofofapplicableinsuranceand
c.evidenceofatripinprogressorthelastcompletedtrip.

PTCVehicles,InspectionsandInsurance:

74. CityCouncilrequirethatvehiclesusedtoprovidetransportationthroughaPTC(PTC
Vehicles)havefourdoors,andbenomorethan7modelyearsold.

75. CityCouncilrequirethatallPTCVehiclespassannualmechanicalinspections,as
prescribedbytheMinistryofTransportation,including:
a.PTCvehicleownertofileavalidSafetyStandardCertificateissuedbya
MinistryofTransportationlicensedgarageauthorizedtoundertakesuch
inspectionsuponapplication,andannuallythereafter
b.PTCdriverstocarrytheoriginaloracopyofthemostrecentSafetyStandards
Certificateinthevehicleatalltimesand
c.PTCdriverstoproducetheSafetyStandardsCertificateuponrequestofa
MunicipalStandardsOfficerorpoliceofficer.

76. CityCouncilrequireaPTCVehicleownerordrivertosubmittheirvehicleforinspection
byalicensedmechanicwithin24hoursofbeingdirectedbyML&Stodoso,and
prohibitthePTCdriverfromprovidingtransportationuntilamechanichasprovideda
SafetyStandardsCertificateconfirmingthatthevehicleisfittobedriven.

http://app.toronto.ca/tmmis/viewAgendaItemHistory.do?item=2016.LS10.3

12/21

07/04/2016

Agenda Item History - 2016.LS10.3

77. CityCouncilprohibitPTCVehiclesfromhavingarooflightoranymarkingsthatcould
makethevehiclelooklikeataxicaboridentifyitasavailableforhire.

78. CityCouncilrequirethataPTCensureallPTCdriversandvehicleshaveAutomobile
LiabilityInsurancewithlimitsofnotlessthan$2,000,000inclusiveperoccurrencefor
bodilyinjury,death,anddamagetoproperty,andinclusiveofsuchrequirementsasset
outbelowinthebodyofthereport.

79. CityCouncilrequireaPTCtohavecommercialgeneralliabilitybusinessinsurance
coverageofatleast$5,000,000,andinclusiveofsuchrequirementsassetoutbelowin
thebodyofthereport.

PTCFares:

80.CityCouncilpermitPTCtosetratesforfares,andrequirethemto:
a.clearlyandtransparentlycommunicatetheamountofallratestobecharged
and
b.ensurearecordismaintainedthatthepassengeracceptedtheratepriortothe
tripcommencing.

81.CityCouncilrequirethatbeforeatripcommences,aPTCmustprovidepassengerswith
thefollowinginformation:
a.vehiclemakeandmodel
b.PTCDriverfirstname
c.PTCDriver'slicenceplatenumberand
d.PTCDriverphoto,uponrequest.

82.CityCouncilrequireaPTCtoprovideaprintorelectronicreceipttothepassengerat
theconclusionofeverytrip.Thereceiptprovidedmustincludeinformationon:
a.Allrates,feesand/orsurchargeschargedforthetrip
b.Totalamountpaid
c.Dateandtimeoftrip
d.Locationatwhichthepassengerwaspickedupandlocationtowhichthe
passengerwasdriven
e.Driverfirstnameandprovinciallicenceplatenumberand
f.Totaltimeanddistanceoftrip.

PART6IncreasedPenaltiesforBreachesofLicensingRequirements

83. CityCouncilestablishspecialfinesthatmayapplyinadditiontotheregularfine
imposedforacontraventionofthebylawwhereitisdeterminedthattheconductcould
haveresultedineconomicadvantageorgaintothepartyfoundtohavebreachedthe
bylaw.

84. CityCouncilrequirethatthemaximumpenaltyprovisionsapplytolicenseeswhofailto
complywithanyprovisionsrelatedtorecordretention,recorddisclosuretoML&S,or
audits.
http://app.toronto.ca/tmmis/viewAgendaItemHistory.do?item=2016.LS10.3

13/21

07/04/2016

Agenda Item History - 2016.LS10.3

85. CityCouncilestablishthatdirectorsorofficersofacorporationknowinglyconcurringin
thecontraventionofanyoffenceunderthebylawbythecorporationareguiltyofan
offence.

PART7AdministrativeRecommendations

86. CityCouncildelegatetotheExecutiveDirector,ML&S,theauthoritytoissue
interpretationbulletinsorguidelinesonmattersrelatingtotheVehicleforHirebylaw
whenenactedfromtimetotime,assheorhedeemsadvisableornecessary.

87. CityCouncildelegatetotheExecutiveDirectorofML&S,theauthoritytoestablish
policiesandguidelineswithrespecttopublicsafetyandtoestablishthresholdsfor
criminalandbackgroundscreening,drivingrecordchecks,andotherstandardsapplicable
totheissuanceandrenewalofallVehicleforHirelicencesandtoadriver'saccessto
anduseofaPTCPlatform,referencedas"ScreeningCriteria"asoutlinedinAttachment
2.

88. CityCouncilremoveallexistingrestrictionsonexclusiveconcessionagreementsand
permitalllicenseesgovernedbytheVehicleforHirebylawtocontractwithproperty
ownerstoprovideexclusiveservicesatparticularlocations,effectiveimmediately.

89. CityCouncilauthorizetheCitySolicitortoreviewandmakerevisionstotheremaining
partsofthebylawtoensureconsistencywithprovisionsthataregovernedbyother
municipalandprovinciallegislation.

90. CityCouncilapproveamendmentstoreduceadministrativerequirementsbydeleting
sectionsinthebylaw,asdescribedinAttachment3.

91. CityCouncildirecttheCitySolicitortoimportallrelevantgeneralprovisions,excluding
AppendixK,andincludingalltaxicabandlimousinerelatedschedulesandarticlesfrom
theTorontoMunicipalCode,Chapter545,Licensing,tofacilitatethecreationofthenew
VehicleforHireBylaw,asprescribed,andincludingamendmentsasdeemednecessary.

92. CityCouncildirectthattheCitySolicitormayreportdirectlytoCouncilforinstructions
if,inthecourseofdraftingthebylaw,shedeterminesthatthereareprovisionsorissues
relatingtotaxicab,limousine,orPTClicensingonwhichfurtherinstructionis
appropriate.

PART8LicensingFees

93. CityCouncilamendChapter441toreflectrevisedTaxicabandLimousinelicensingfees,
retroactivelyeffectiveJanuary1,2016,detailedinAttachment4.
http://app.toronto.ca/tmmis/viewAgendaItemHistory.do?item=2016.LS10.3

14/21

07/04/2016

Agenda Item History - 2016.LS10.3

94. CityCouncilamendChapter441byaddinganewVehicleforHireDriverslicensing
class:
a.Applicationfee:$290
b.AnnualRenewalfee:$290

95. CityCouncilamendChapter441byaddinganewTaxicabOperatorslicensingclass:
a. Applicationfee:$500
b. AnnualRenewalfee:$300

96. CityCouncilamendChapter441byaddinganewPrivateTransportationCompany
licensingclasswithascalablelicensingfeestructureof:
a.Applicationfee:$20,000(nonrefundable)
b.Provisionallicenceissuancefeeof$10perDriver:calculatedbasedonthe
numberofaffiliatedPTCDriversatlicenceissuance
c.Pertripfee:$0.20pertriporiginatinginToronto,submittedweeklyand
commencingthedatethattheprovisionallicenceisissued
d.3monthprovisionallicencefeeof$10perDriver:calculatedbasedonaverage
numberofaffiliatedPTCDriversinthepreceding3monthperiod,lessthe
provisionallicenceissuancefeepaidondateofprovisionallicenceissuanceand
e.Licencerenewalfee:calculatedbasedonthenumberofaffiliatedPTCDrivers
inthe3monthperiodpriortolicencerenewal.

97. CityCouncildirecttheExecutiveDirector,ML&Stoundertaketheworknecessaryto
issueanyrefundsresultingfromtheretroactivefeereductionsand/orthewaivingof
existingfees.

98. CityCouncilapproveanetoverallincreasetoML&Sdivisionalcomplementby10FTE
comprisedof5permanentand5temporaryfulltimeFTE.

99. CityCouncildirecttheExecutiveDirector,ML&Stotakeeffortstomanageexpenditures
tomitigatethe2016financialimpactassociatedwiththetimingoftheproposedchanges.

100.CityCouncildirecttheExecutiveDirector,ML&Storeportthroughthe2017budget
processonfullyearbudgetimpactsoftheproposedchanges.

OtherRecommendations:

101.CityCouncildirectthatallprovisionsofthenewVehicleforHirebylaw,includingthe
amendmentstolicensingfeesinChapter441,willcomeintoeffectonJuly15,2016
unlessotherwisestated.

102.CityCouncilrequesttheMinistryofFinancetoapprovenewflexibleinsurance
productsforthetaxicabindustry.
http://app.toronto.ca/tmmis/viewAgendaItemHistory.do?item=2016.LS10.3

15/21

07/04/2016

Agenda Item History - 2016.LS10.3

103.CityCouncilrequesttheProvinceofOntariotomakeamendmentstotheHighway
TrafficActtostrengthenenforcementpowersandamendpenaltiesinrelationto
municipalvehicleforhirebylaws,includingtheabilityto:
a. tieoutstandingviolationstoplatedenial
b. issuehigherfines(notlessthan$500andnomorethan$30,000)
c. applydemeritpointsfornoncomplianceand
d. imposeadministrativelicencesuspensions.
Summary
Thisreportoutlinesaseriesofrecommendationsthat,takentogether,formanewframework
forequitableregulationwithinthevehicleforhireindustry.Thisframeworkisfoundedonthe
Citysregulatorypurposeandinterestsofpublicsafetyandconsumerprotection,and
acceleratestheCityscommitmenttoensuringtheavailabilityofinclusiveaccessibleservice
withinthevehicleforhiremarket.

Thisframeworkwillrespondtothepublicsrequestforchoiceinregulatedtransportation
optionsandprovideanopportunityfortheCitytoshiftfromprescriptiveregulationtoan
approachbasedonestablishedstandards,accountabilityandmonitoredcompliancethrough
auditandenforcement.Itisanticipatedthatthisapproachwillenableoperationalflexibilityand
provideindustryparticipantswithanequalopportunitytoprovidequalityserviceina
competitivemarket,whilemaintainingtheCitysmunicipalregulatorypurpose.

Therearecurrentlymorethan45,000tripsperdaytakenbythepublicinunregulatedvehicles
forhire.Appropriateregulationgoverningthisindustryisacriticalpublicsafetymatter.The
developmentofthisnewregulatoryframeworkensuresthatthesevehicleforhireparticipants
areregulated,asaretaxicabsandlimousines,balancingtheCityregulatoryinterestswith
existingindustrypractices.

ThisreportproposesaresetoftheCity'sapproachtoregulation,andinsomecasesadjuststhe
City'sroleasitrelatestothedirectdeliveryofservice.Theproposedframeworkaimsto
addresspublicsafetyandconsumerprotection,whilealsoprovidinganopportunityto:develop
efficiencies,allowcompetition,reduceregulatoryburdenfortaxicabsandlimousines,and
implementregulationsforanew'PrivateTransportationCompany'(PTC)licenceclass,which
wouldpermitandregulateprivatevehiclestooffertransportationservices,suchthatUberX
provides.

Currentvehicleforhireregulationshavealengthy,complex,andcomplicatedhistory.For
decades,theCityofTorontoandjurisdictionsaroundtheworldhaveheavilyregulatedtheir
taxicabindustriesand,toalesserextent,theirlimousineindustries.TheTorontotaxicab
industry,inparticular,hasbeenthesubjectofrepeatedreviewswhichhavesteadilyincreased
thenatureandextentoftheregulatoryinvolvementintheindustry.Oneofthekeycontributors
tothishasbeentherestrictedissuanceoflicenceswhichhasconstrainedthenumberoftaxicabs
permittedtooperate,andhasalsopreventedothertransportationserviceprovidersfrom
enteringthemarket.

DespitenumerousattemptsbytheCitytoaddressissueswithinthetaxicabindustry,including
twocomprehensivereformsinthepast18years,manywithintheindustrycontinuetoidentify
issuesofpoorworkingconditionsandtheimproperconductofindustry
participants/middlemen.Thesepreviousregulatoryreviewshavebeenfocusedonregulations
http://app.toronto.ca/tmmis/viewAgendaItemHistory.do?item=2016.LS10.3

16/21

07/04/2016

Agenda Item History - 2016.LS10.3

meanttoaddressconsumercomplaints,unsafedrivingpractices,andfairnessamongindustry
participants.

OneofthemostreformativereviewsoftheTorontotaxiindustrywasthe1998review,which
createdtheAmbassadorTaxicablicence,andmadenumerousamendmentstotheexisting
licenceclass(StandardTaxicabs)tomovetheindustrytowardanowneroperatormodel.
Thischangewasmeanttoenhancethequalityoftaxicabservicesbyreducingthenumberof
"middlemen"andlimitingabsenteelicenceowners.

Despitethisreformandthoseresultingfromthe2014TaxicabReview,manytaxicabdrivers
continuetoindicatethattheyarenotbeingfairlytreatedandfurtherindicatethatmuchofthe
profitswithintheindustryarebeingsharedamongstmiddlemenandownerswhomaynotbe
directlyinvolvedinthebusiness.ThishasadirectnegativeimpactontheCitysobjectivesof
promotingconsumerprotectionandpublicsafetytotheextentthattheexistingfinancial
structureunderminesordoesnotincentivizebehavioursthatareconsistentwiththeCitys
goals.

Staffmaintainthebeliefthatowneroperatedvehiclesforhireprovidethemostcostefficient
operatingmodelandinmanycases,provideabetterqualityservice.Inthisrespect,a
recommendationisbeingmadetoissuenewincrementalaccessibletaxicablicences(TTL)to
taxicabdriversonthewaitinglist.

However,giventhechangedcontextofthevehicleforhiremarketandintheinterestsof
providinganequitablelevelofregulation,staffarerecommendingtheeliminationofthe
owneroperatororientedregulationsastheyapplytotaxicabs.

Withtheavailabilityofmoreopportunitiesforvehicleforhiredriversandwithincreased
competitionamongstvehicleforhireindustries,amandated"owneroperated"taxicabindustry
modelnolongerachievestheintendedregulatoryeffortstoprotectconsumersandensure
publicsafety.Thesechangeswillalsorecognizethemannerinwhichmanywithinthetaxicab
industryarealreadyorganizedoperationallyandwillprovideadditionalflexibilitytothe
industry.

ThisreportproposesanewVehicleforHireBylawthat:

regulatestaxicabs,limousines,andcompaniessuchasUberinanequitablemanner
reducesregulatoryburden,whilemaintainingrequirementsforpublicsafetyand
consumerprotection
buildsonexistingplanstosecureaccessiblevehicleforhireservicesand
providesopportunitiesforcompetitionandinnovation.
OverviewofVehicleforHireBylaw
TherecommendationsinthisReportareaimedatcreatingaregulatoryregimefortaxicabs,
limousines,andPrivateTransportationCompanies(PTC)basedonmeasuresappropriateto
balanceconsumerprotection,publicsafety,andtheeconomicwellbeingoftheCity.Key
regulationsareasfollows:

1.Fares
StaffrecommendthattaxicabscontinuetochargethecurrentCityregulatedrateforalltrips
http://app.toronto.ca/tmmis/viewAgendaItemHistory.do?item=2016.LS10.3

17/21

07/04/2016

Agenda Item History - 2016.LS10.3

takenthroughstreethailoratcabstands.IfataxicabisbookedthroughaTaxicabBroker,the
ratemaybediscountedbytheTaxicabBroker,subjecttospecificconditionsdesignedtoensure
transparencyinthepricing.LimousineBrokersandPTCswillbepermittedtosetratestobe
chargedwhichmayvaryindifferenttimeperiods,butpassengersmustaccepttheratebefore
thevehicleisdispatched.

2.Accessibility
Staffrecommendamultiprongedapproachtoensureaccessiblevehicleforhireservice.This
approachproposes:
increasingthenumberofaccessibletaxicabsto25%ofthetaxicabfleetbyissuing
additionalTTLstodriversonthewaitinglist
waivinglicenceapplicationandlicencerenewalfeesforaccessibletaxicabs
waivingaccessibletrainingfeesforlicensedtaxicabdriversandowners
requiringPTCstodeliverequitableaccessibleserviceand
reportingbackonastrategytocollectmoneyfromallnonaccessiblevehiclesforhireto
incentivizethedeliveryofaccessibletaxicabservicethroughmechanismsthatoffsetthe
increasedoperatingcostsofaccessibletaxicabs.

3.NumberofVehiclesforHire
Staffrecommendcontinuingtolimitthenumberoftaxicablicencesissued.Itisrecommended
thattheCitynotimposealimitonthenumberoflimousinelicencesornumberofvehicles
affiliatedwithaPTC.

4.TaxicabLicensing
Staffrecommendreducingtheregulatoryburdenontaxicabsbyreducingthenumberoftaxicab
ownerlicencecategoriesandeliminatingcertaincurrentlicensingrequirementstoincrease
flexibility.Thisapproachproposes:
removingmandatoryminimumowneroperatorhoursforalltaxicabowners
removingrequirementsformandatoryconversionofanAmbassadortaxicaband
StandardtaxicabtoaTorontoTaxicabuponsaleoftaxicab
permittingAmbassadortaxicabstobeconvertedtoStandardtaxicabsuponrenewalor
saleand
removingtaxicabownershiprestrictionsthatpreventincorporationandownershipof
multipletaxicabs.
Atthesametime,staffrecommendthecreationofanewlicensingcategoryTaxicab
Operator,whichwillrecognizeandregulatetheoperationsoflesseesandfleetsoperating
taxicabstoregulateandholdaccountabletheactualoperatorofthetaxicabforsuchthingsas
vehiclemaintenanceandrecordsmanagementoftaxicabsundertheircontrol.

5.Vehicles
Staffrecommendpermittinganyfourdoorvehiclelessthan7(seven)modelyearsoldforuse
asataxicab,limousine,orPTCvehicle.

Taxicabswillcontinuetobesubjecttosemiannual,Cityrunmechanicalinspections,andwill
berequiredtomeetallexistingvehiclequalitystandards.Limousineswouldnolongerattend
http://app.toronto.ca/tmmis/viewAgendaItemHistory.do?item=2016.LS10.3

18/21

07/04/2016

Agenda Item History - 2016.LS10.3

theCityforsemiannualinspections,butwouldinsteadberequiredtosubmitanannualSafety
StandardsCertificateissuedbyaMinistryofTransportationlicensedgarageuponrenewal.A
PTCwillberesponsibleforensuringthatallvehiclesaffiliatedwithitsubmitanannualSafety
StandardsCertificateissuedbyaMinistryofTransportationlicensedgarageuponapplication,
andannuallythereafter.

Recommendationsseektoauthorizeenforcementstafftoissueanoticeand/ordirectany
vehicleforhiretoundergoamechanicalsafetyinspectionattheirdiscretion.

Staffarerequestingauthoritytoundertakeareviewofoptionsandthefeasibilityof
transitioningtaxicabstoanalternativeinspectionprocess,suchasthatbeingrecommendedfor
limousinesandPTCvehicles.

Duetotheindependentandanonymousnatureofstreethailandcabstandtaxicabservice,
taxicabscontinuetobetheonlyvehicleforhirethatisrequiredtohaveataximeter,aroof
light,acamera,anemergencylight,markingsthatidentifyitasataxicab,andaTaxicabBillof
Rights.StaffareproposingtoestablishaTaxicabVehicleQualityStandard,whichwillprovide
clarityandtransparencytoserviceproviders,andaddressthepublic'sinterestinvehicle
conditions.

6.Drivers
StaffrecommendharmonizingtaxicabandlimousinedriverlicencestocreateoneVehiclefor
HireDriver'sLicencethatwillpermitdriverstooperatetaxicabsorlimousines.

Allpersonswishingtooperateastaxicab,limousineorPTCdriverswouldberequiredtomeet
thesamecriminalbackgroundanddriverscreeningrequirements,asestablishedbytheCity.

TheCitywouldcontinuetocollectandscreentheapplicantsfortaxicabandlimousinedrivers.
APTCwouldassumeresponsibilitytocollectandscreentheapplicantsforPTCdrivers,andbe
requiredtosubmitormakeavailableonanongoingbasis,electronicrecordsofpermitted
drivers,wheretherecordsofthePTCwillbesubjecttoauditfromtheCity.

Staffrecommendreducingthebarriertoentrytobecomealicencedtaxicaborlimousinedriver
byeliminatingthemandatoryCityruntrainingforalltaxicabandlimousinedriversand
owners,withtheexceptionofdriversofaccessibleforhirevehicles.

7.Insurance
Alltaxicabandlimousinevehiclesarecurrentlyrequiredtocarryaminimumof$2millionof
collisionandpassengerhazardinsurance.PTCvehicleswillalsoberequiredtocarrya
minimumof$2millionofcollisionandpassengerhazardinsurance.Inaddition,PTCswillbe
requiredtocarry$5millionofcommercialgeneralliabilityinsurance.

OverarchingPurposeofRecommendedChanges
Thisreportoutlinestherecommendedchangestotheexistinglegislationgoverningthetaxicab
andlimousineindustries,andrecommendsthedevelopmentofregulationtogovernnew
entrantsbeingnamedPrivateTransportationCompanies.

ThisreviewhasprovidedtheopportunitytorefocusandresettheCitysapproachtoregulating
thetaxicabandlimousineindustriesandtoproposetheregulationofPTCs,aimingtoestablish
http://app.toronto.ca/tmmis/viewAgendaItemHistory.do?item=2016.LS10.3

19/21

07/04/2016

Agenda Item History - 2016.LS10.3

anequitableandappropriatelevelofregulationthatbalancestheinterestsofdiverse
stakeholders.Theproposedchangeswillremoveconstraintsthathavepreventedtheexpansion
ofvehicleforhireservicesinthepast,fostercompetitiveness,allowtaxicabsandlimousinesto
developefficiencies,andreduceregulatoryburdens.
FinancialImpact
Thisreportoutlinesaproposednewvehicleforhireregulatoryframework,whichwillrequire
ashiftintherolesandresponsibilitiesneededtoadminister,regulateandenforcesucha
regulatoryregime.Thischangewillresultintherepurposingofexistingresourcesandan
overallnetincreaseof10FTEtotheML&S2016approvedcomplement(5permanentand5
temporaryfulltime).

Itisanticipatedthatanadditional$1.316millioninannualexpenditureswillberequiredto
implementthisnewregulatoryframework.

Anadditional$0.400millioninonetimestartupcostswillalsoberequiredfor
investmentinITinfrastructureneededforPrivateTransportationCompaniesrecord
keeping.

ExistingTaxicabandLimousinelicensingfeeswillalsobeadjustedandnewlicensingfeesfor
PTCimplemented,basedonthefullcostingreviewofthenewregulatoryframework,as
conductedbyathirdpartyconsultant.AllfeechangeshavebeendetailedinAttachment4to
thisreport.

Thesefeechangesasreflectedinthetablebelowwillresultinthefollowing:

ReducefeesandassociatedrevenuecollectedfromTaxicabandLimousinelicensing
ImplementanewfeetofullyrecoverML&S'sadministrationandenforcementscosts
resultingfromregulatoryoversightofPTCsand
Anoverallincreaseinannualrevenuesof$1.316million,whichoffsetsincreasedannual
costsassociatedwiththeproposednewvehicleforhireregulatoryframework.

Theimpactofthesefeechangesarereflectedinthetablebelow:

Category($000s)
Budgeted
Proposed
Total
Revenue*
Revenue
Revenue
Change
TaxicabLicensing
$10,146
$8,241
$1,905
LimousineLicensing
$1,094
$861
$234
PrivateTransportationCompanyLicensing
N/A
$3,455
$3,455
TotalRevenueImpact:
$11,240
$12,556
$1,316
*BudgetedRevenueincludestheimpactofthe2016freezetoTaxicabLicensing($222,000revenueimpact)

Whiletherecommendationcontainedinthisreportarecost/revenueneutralonanannualbasis,
itisestimatedthatthetimingoftheproposedchangeswillresultina2016unfavourable
varianceof$580,000,plusandupto$400,000,inadditionalonetimestartupcostthatwill
needtobemanagedthroughexpenditurecontrol.

Thepotential2016varianceprimarilyresultsfromthereductiontoTaxicaband
http://app.toronto.ca/tmmis/viewAgendaItemHistory.do?item=2016.LS10.3

20/21

07/04/2016

Agenda Item History - 2016.LS10.3

LimousinefeesretroactivetoJanuary1st,2016,whilenewfeesapplicabletoPTCs
cannotbeimplementeduntilCouncilapprovalofthenewvehicleforhireregulatory
framework,estimatedtobeJuly1,2016.Anydelayintheimplementationwillincrease
thevariance.

Allcostsandrevenueassumptionsarebasedoncurrentvolumeestimatesassociatedwiththe
proposedframework.ML&Sstaffwillmonitoractivitymonthlyandreportquarterly
throughouttheyearaspartofvariancereporting.

TheExecutiveDirectorofML&S,willmanageexpendituresasrequiredbasedonany
varianceidentifiedthroughmonthlymonitoring.
Anyfurtheradjustmentstoexpendituresand/orrevenueswillbeaddressedaspartof
the2017BudgetProcess.

TheDeputyCityManagerandChiefFinancialOfficerhasreviewedthisreportandagreeswith
thefinancialimpactinformation.
BackgroundInformation
(March31,2016)ReportfromtheExecutiveDirector,MunicipalLicensingandStandardson
ANewVehicleforHireBylawtoRegulateTorontosGroundTransportationIndustry
(http://www.toronto.ca/legdocs/mmis/2016/ls/bgrd/backgroundfile91911.pdf)

Attachment1JurisdictionalScanofCanadianMunicipalities

(http://www.toronto.ca/legdocs/mmis/2016/ls/bgrd/backgroundfile91912.pdf)

Attachment2VehicleforHireBylawScreeningCriteria

(http://www.toronto.ca/legdocs/mmis/2016/ls/bgrd/backgroundfile91913.pdf)

Attachment3AmendmentstoReduceAdministrativeRequirementsTorontoMunicipalCode
Chapter545
(http://www.toronto.ca/legdocs/mmis/2016/ls/bgrd/backgroundfile91914.pdf)

Attachment4GroundTransportationReviewFeeChanges

(http://www.toronto.ca/legdocs/mmis/2016/ls/bgrd/backgroundfile91915.pdf)

PublicNoticeProposedamendmentstoChapter545,Licensing,ArticleVII,TaxicabBrokers,
Chapter545,Licensing,ArticleVIII,OwnersandDriversofTaxicabs,Chapter545,Licensing,
ArticleXXXIX,OwnersandDriversofLimousinesandLimousineServiceCompaniesand
Chapter441,FeesandCharges
(http://www.toronto.ca/legdocs/mmis/2016/ls/bgrd/backgroundfile91887.pdf)

Source:TorontoCityClerkatwww.toronto.ca/council

http://app.toronto.ca/tmmis/viewAgendaItemHistory.do?item=2016.LS10.3

21/21

You might also like