First Regular Session Sixty-eighth General Assembly STATE OF COLORADO INTRODUCED LLS NO. 11-0370.01 Christy Chase SENATE BILL 11-065 SENATE SPONSORSHIP Harvey, HOUSE SPONSORSHIP Kagan, Senate Committees House Committees Business, Labor and Technology A BILL FOR AN ACT Concerning the issuance of a certificate of authority to provide taxicab service. Bill Summary (Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://www.leg.state.co.us/billsummaries.) Under current law, an applicant for a certificate of public convenience and necessity to operate taxicab service within and between Adams, Arapahoe, Boulder, Broomfield, Denver, Douglas, El Paso, and Jefferson counties must initially prove to the public utilities commission (PUC) that it is operationally and financially fit to provide the service. Upon meeting its initial burden, there is presumed to be a public need for the proposed taxicab service, unless opponents to the proposed taxicab service are able to prove that either: Public convenience and necessity does not require granting the application; or Issuance of the certificate would be detrimental to the public interest. The bill eliminates the current 2-part analysis of applications and instead requires the PUC to issue a certificate of authority to operate taxicab service in the state to an applicant who can demonstrate the following: The applicant has at least 50 taxicabs available for service, at least 3% of which are equipped to provide services to persons with disabilities, with one such equipped taxicab in service at all times; The taxicab service has a 24-hour communications and dispatch system and can operate taxicab services 24 hours a day every day of the year; The applicant has at least $500,000 in capital; The applicant has submitted to a fingerprint-based criminal history record check that did not result in disqualification by the PUC; The applicant participates in the federal e-verify program to verify the work eligibility status of its drivers and other employees; and The applicant satisfies financial responsibility requirements in the form of motor vehicle liability coverage or a surety bond. The bill applies to applications for a certificate of authority submitted on or after the date on which the bill becomes effective. Be it enacted by the General Assembly of the State of Colorado: SECTION 1. Legislative declaration. (1) The general assembly hereby finds, determines, and declares that: (a) Current taxicab regulation in the state stifles entrepreneurs, needlessly limits the entry of new taxicab service providers into the market, prevents technological innovation, limits job creation, and ultimately results in poor taxicab service to consumers; (b) Competitive taxicab markets are beneficial to the public interest of Colorado, and the state should facilitate the creation of new taxicab service providers and increased competition between new and existing taxicab companies; (c) Consumers in Colorado, including visitors to the state, benefit from increased competition among taxicab companies; (d) The state's labor market also benefits from competition among taxicab service providers; and (e) To facilitate competition and improve service for consumers, there should be no limit on the number of authorized taxicab service providers or taxicabs operating in the state. SECTION 2. 40-10-105 (1), (2) (a), (2) (b), (2) (d) (I), and (2) (d) (II), Colorado Revised Statutes, are amended to read: 40-10-105. Rules for issuance of certificates - standing to protest - judicial review. (1) The commission has the power to may issue a certificate of public convenience and necessity authority to a motor vehicle carrier or to in accordance with this section. The commission may issue it a certificate of authority for the partial exercise only of the privilege sought and may attach to the exercise of the rights granted by said the certificate such terms and conditions as, in its judgment, the public convenience and necessity may require commission deems necessary. (2) (a) The granting of a certificate of public convenience and necessity authority to operate a motor vehicle for hire as a taxicab within and between counties with a population of less than seventy thousand, based on the most recent federal census, conducted in 2000, shall be is governed by the doctrine of regulated monopoly. (b) (I) Except as otherwise provided in subparagraph (II) of this paragraph (b), the granting of a certificate of public convenience and necessity authority to operate a motor vehicle for hire as a taxicab within and between counties with a population of seventy thousand or greater, based on the most recent federal census, conducted in 2000, shall is not be deemed to be an exclusive grant or monopoly. and the doctrine of regulated competition shall prevail. (II) In an application for The commission shall issue a certificate of public convenience and necessity authority authorizing an applicant to provide taxicab service within and between the counties of Adams, Arapahoe, Boulder, Broomfield, Denver, Douglas, El Paso, and Jefferson the state if the applicant demonstrates, and the staff of the commission is able to verify, the following: (A) The applicant shall have the initial burden of proving that it is operationally and financially fit to provide the proposed service. The applicant shall not be required to prove the inadequacy of existing taxicab service, if any, within the applicant's proposed geographic area of operation. The applicant can operate a minimum of fifty taxicabs; (B) If the applicant sustains the initial burden of proof as set forth in sub-subparagraph (A) of this subparagraph (II), there shall be a rebuttable presumption of public need for the service, and any party opposing the application shall prevail upon proving that the public convenience and necessity does not require granting the application or that the issuance of the certificate would be detrimental to the public interest. At least three percent of the applicant's taxicabs are equipped with ramps, lifts, or other special devices to facilitate the loading, unloading, or transportation of persons with disabilities, and at least one taxicab that is so equipped can and will always be on duty; (C) The applicant will have a twenty-four-hour communication and dispatch system in place when its taxicab service becomes operational and will operate the taxicab service twenty-four hours a day, every day of the year; (D) The applicant has at least five hundred thousand dollars in capital; (E) The applicant has submitted to a fingerprint-based criminal history record check in accordance with section 40-10-105.5, and, upon review of the results of the record check, the commission has determined, in accordance with section 40-10-105.5 and its rules, that the applicant is not disqualified and not prohibited from driving; (F) The applicant participates in the e-verify program, as defined in section 8-2-124 (1), C.R.S., for purposes of verifying the work eligibility status of its drivers and other employees; and (G) The applicant has motor vehicle liability coverage or a surety bond, as required by section 40-10-110, in an amount and providing protection as required by commission rules. (d) (I) The holder of a certificate of public convenience and necessity that contains authority to operate as a taxicab between points in the city and county of Denver shall also be deemed to hold is authorized to operate taxicab authority service from points in the city and county of Denver to all points in the state of Colorado. (II) The holder of a certificate of public convenience and necessity that contains authority to operate as a taxicab to points in the city and county of Denver shall also be deemed to hold is authorized to operate taxicab authority service from points in the city and county of Denver to all points within the motor carrier's base area, defined as that geographic area in which such the carrier may provide point-to-point taxicab service. SECTION 3. 40-7-113 (1) (b), Colorado Revised Statutes, is amended to read: 40-7-113. Civil penalties - fines. (1) In addition to any other penalty otherwise authorized by law and except as otherwise provided in subsections (3) and (4) of this section, any person who violates any provision of article 10, 10.5, 11, 13, 14, or 16 of this title or any rule promulgated by the commission pursuant to such articles, which provision or rule is applicable to such person, may be subject to fines as specified in the following paragraphs: (b) Any person who operates a motor vehicle for hire as a common carrier without first having obtained a certificate of public convenience and necessity authority from the commission as required by section 40-10-104 may be assessed a civil penalty of not more than one thousand one hundred dollars. SECTION 4. 40-10-104 (1), Colorado Revised Statutes, is amended to read: 40-10-104. Certificate required - exemptions. (1) (a) No A person shall not operate or offer to operate as a motor vehicle carrier for the transportation of passengers upon on the public highways of this state in intrastate commerce without first having unless the person has obtained from the commission a certificate of authority declaring that the present or future public convenience and necessity requires or will require such person is authorized to engage in the operation. except that (b) This subsection (1) shall does not apply to the operation of hearses, ambulances, or other emergency vehicles on the public highways of the state. SECTION 5. 40-10-105.5 (1), (2), and (3) and the introductory portion to 40-10-105.5 (4), Colorado Revised Statutes, are amended to read: 40-10-105.5. Criminal history record check - taxicab drivers - rules. (1) An individual who wishes to become employed or who contracts to drive a taxicab for a holder of a certificate of public convenience and necessity that contains authority to operate as a taxicab shall submit a set of his or her fingerprints to the commission. The commission shall forward the fingerprints to the Colorado bureau of investigation for the purpose of obtaining a fingerprint-based criminal history record check. Upon receipt of fingerprints and payment for the costs, the Colorado bureau of investigation shall conduct a state and national fingerprint-based criminal history record check utilizing records of the Colorado bureau of investigation and the federal bureau of investigation. The commission shall be is the authorized agency to receive information regarding the result of a national criminal history record check. The individual whose fingerprints are checked pursuant to this subsection (1) shall bear the actual costs of the state and national fingerprint-based criminal history record check. (2) An individual who, prior to May 30, 2007, drives a taxicab as part of his or her employment or contract with a holder of a certificate of public convenience and necessity that contains authority to operate as a taxicab shall comply with the fingerprinting requirements of subsection (1) of this section within thirty days after May 30, 2007. (3) An individual whose fingerprints are checked pursuant to subsection (1) or (2) of this section may, pending the results of the criminal history record check, drive a taxicab in connection with his or her employment or contract with a holder of a certificate of public convenience and necessity authority described in subsection (1) of this section for up to ninety days after the commission forwards the fingerprints to the Colorado bureau of investigation or until the commission receives the results of the check, whichever occurs first. Upon the commission's receipt of the results, the individual may resume driving a taxicab for the holder of the certificate so long as if the driving does not violate applicable law and does not occur while the individual has a criminal conviction on his or her record that disqualifies and prohibits him or her from driving a taxicab pursuant to subsection (4) of this section. (4) An individual whose criminal history record is checked pursuant to this section shall be is disqualified and prohibited from driving a taxicab for a holder of a certificate of public convenience and necessity that contains authority to operate as a taxicab if the criminal history record check reflects that: SECTION 6. 40-10-106, Colorado Revised Statutes, is amended to read: 40-10-106. Transfer of certificate. Any A certificate of public convenience and necessity authority or rights obtained under any such certificate held, owned, or obtained by any a motor vehicle carrier may be sold, assigned, leased, encumbered, or transferred as other property only upon authorization by the commission. Absent other facts, the fact that a motor vehicle carrier conducts operations with independent contractors shall not in and of itself constitute a lease or transfer of the certificate. SECTION 7. 40-10-108, Colorado Revised Statutes, is amended to read: 40-10-108. Penalty for violations - certificate of authority. (1) Any A person who commits a misdemeanor and, upon conviction, shall be punished by a fine as provided in section 40-10-113 if the person: (a) Uses any public highway in this state for the transportation of passengers as a motor vehicle carrier without first obtaining a certificate of public convenience and necessity or authority; (b) Operates as a motor vehicle carrier in violation of any of the terms thereof or who of a certificate of authority; (c) Fails or refuses to make any a return or any report required by the commission; or who (d) Denies to the commission access to the books and records of such the person; or who (e) Makes any a false return commits a misdemeanor and, upon conviction thereof, shall be punished by a fine as provided in section 40-10-113 to the commission. SECTION 8. 40-10-109 (1) and (3), Colorado Revised Statutes, are amended to read: 40-10-109. Filing and issuance fees for certificates. (1) (a) Except as provided in subsection (3) of this section, the commission shall collect from all motor vehicle carriers the following fees: (I) Filing fee for application for certificate of public convenience and necessity authority to operate in intrastate commerce, thirty-five dollars; (II) Filing fee for application to register interstate operating rights, fifteen dollars; (III) Filing fee for transfer or lease of a certificate of public convenience and necessity authority in intrastate commerce, thirty-five dollars; and (IV) Filing fee for transfer of a registration of interstate operating rights, five dollars. (b) In addition, the commission shall charge a fee of five dollars for issuing a certificate of public convenience and necessity authority in intrastate commerce or a registration in interstate commerce, or both. (c) The commission shall transmit all fees collected under this section shall be transmitted to the state treasurer, who shall credit the same them to the public utilities commission motor carrier fund. (3) The fee for an application for a certificate of public convenience and necessity authority to provide taxi taxicab service within and between the counties of Adams, Arapahoe, Boulder, Broomfield, Denver, Douglas, El Paso, and Jefferson shall be set administratively by the commission with approval of the executive director of the department of regulatory agencies. SECTION 9. 40-10-112 (1) and (3), Colorado Revised Statutes, are amended to read: 40-10-112. Commission may revoke certificate or impose civil penalty. (1) Upon finding that a holder of a certificate of authority has violated this article or has violated or refused to comply with an order or rule of the commission, the commission, at any time, by order duly entered after hearing upon notice to the holder of any the certificate of public convenience and necessity and when it is established to the satisfaction of the commission that such holder has violated any of the provisions of this article or violated or refused to observe any of the proper orders, rules, or regulations of the commission authority, may suspend, revoke, alter, or amend any such the certificate issued under the provisions of this article or may impose a civil penalty as provided in sections 40-7-112 to 40-7-116. but The holder of such the certificate shall have all the rights of hearing, review, and appeal as to such of the order or ruling of the commission as are now provided by articles 1 to 7 of this title. No appeal from or review of any order or ruling of the commission shall be construed to supersede or suspend such supersedes or suspends the order or rulings unless upon order of the proper court. (3) Any person may file a complaint pursuant to section 40-6-108 against a motor vehicle carrier for a violation of this title or a rule adopted in furtherance of this title. The complainant may request any relief that the commission, in its authority, may grant, including but not limited to, an order to cease and desist, suspension or revocation of the motor vehicle carrier's certificate of public convenience and necessity authority, or assessment of civil penalties. After hearing upon notice of the complaint to the motor vehicle carrier, and upon proof of violation, the commission may issue an order to cease and desist, suspend or revoke the motor carrier's certificate of public convenience and necessity authority, assess civil penalties as provided in article 7 of this title, or take any other action within its authority. In assessing civil penalties under this subsection (3), the commission shall not be constrained by the procedural requirements of section 40-7-116. SECTION 10. Applicability. This act shall apply to applications for a certificate of authority to provide taxicab service submitted on or after the effective date of this act. SECTION 11. Safety clause. The general assembly hereby finds, determines, and declares that this act is necessary for the immediate preservation of the public peace, health, and safety.