SAN FRANCISCO
MUNICIPAL TRANSPORTATION AGENCY
DIVISION: Administration, Taxis and Accessible Services
BRIEF DESCRIPTION:
Requesting the San Francisco Municipal Transportation Agency Board of Directors to adopt amendments to Transportation Code, Division II, Article 1100 governing Motor Vehicles for Hire, to implement regulations governing the purchase and sale of Taxi Medallions as part of the Taxi Medallion Sales Pilot Program.
SUMMARY:
· The implementation of the Taxi Medallion Sales Pilot Program (“Pilot Program”) will require a body of regulations, forms and procedures for successful implementation, including but not limited to rules and procedures for financing Medallion purchases and the clarification of the various parties' rights during all stages of that process.
· Taxi Services staff, in consultation with the City Attorney’s Office and participating financial institutions, and after reviewing the applicable regulations from other jurisdictions, has developed proposed regulations to govern:
(1) Minimum qualifications for participating lenders to finance Medallion purchases;
(2) Requirements for executing a Medallion purchase and sale transaction;
(3) Notification of lenders' perfection of security interests in purchased Medallions; and
(4) Procedures for foreclosure and resale of a Medallion upon payment default or disciplinary revocation of a purchased Medallion.
· The attached proposed regulations are presented for the SFMTA Board’s consideration and adoption as amendments to Transportation Code Division II, Article 1100.
ENCLOSURES:
1. SFMTAB Resolution
2. Proposed Amendments to Article 1100
APPROVALS: DATE
DIRECTOR OF DIVISION PREPARING ITEM ________________ ____________
FINANCE ___________________________________________ ____________
EXECUTIVE DIRECTOR/CEO ____________________________ ____________
SECRETARY ___________________________________________ ____________
ADOPTED RESOLUTION BE RETURNED TO____ [begin addition] Chris Hayashi_ [end addition] _____
ASSIGNED SFMTAB CALENDAR DATE: __________________________
PAGE 2.
PURPOSE
To adopt regulations to govern the procedures and requirements for implementation of the Taxi Medallion Sales Pilot Program, including (1) minimum qualifications for participating lenders to finance Medallion purchases, (2) requirements for executing a Medallion purchase and sale transaction, (3) notice of lenders' perfection of security interests in purchased Medallions; and (4) procedures for foreclosure and resale of a Medallion upon payment default or disciplinary revocation of a purchased Medallion.
GOAL
Goal 1: Customer Focus: To provide safe, accessible, clean, environmentally sustainable service and encourage the use of auto-alternative modes through the Transit First Policy.
Objective 1.1: Improve safety and security across all modes of transportation.
Adoption of these amendments would advance the implementation of the Taxi Medallion Sales Pilot Program by establishing regulations to govern the financing of Medallion purchases. By advancing the Pilot Program, these proposed regulations make it possible to execute Medallion sales transactions so that elderly and disabled Medallion Holders may stop driving without suffering a complete loss of income. Accordingly, implementation of the Taxi Medallion Sales Pilot Program would have the direct and immediate effect of improving safety among San Francisco Taxi Drivers for the Drivers themselves, as well as for taxi customers, bicyclists, pedestrians and other motorists.
Goal 3: External Affairs/Community Relations: To improve the customer experience, community value, and enhance the image of the SFMTA, as well as ensure SFMTA is a leader in the industry.
Objective 3.1: Improve economic vitality by growing relationships with businesses, community, and stakeholder groups.
The Taxi Medallion Sales Pilot Program is a needed reform that will improve the San Francisco taxi industry, as well as other modes of transportation that interact with taxis, for all stakeholders. Taxi companies will face reduced risk of liability from accidents caused by older drivers who cannot afford to stop working. Taxi Drivers will attain the possibility of a meaningful retirement and improved public stature as a respected and valued profession in San Francisco. The public will enjoy increased safety on the street. A new group of San Francisco Taxi Medallion Holder entrepreneurs are likely to seek to improvements in the operation of their Medallion as a business under this new economic model. The act of reform and the adoption of an innovative and unique Medallion program for San Francisco is likely to increase the stature of the City as a leader in the area of taxi regulation among other jurisdictions.
Goal 4: Financial Capacity: To ensure financial stability and effective resource utilization.
Objective 4.1: Increase revenue by 20 percent or more by 2012 by improving collections and identifying new sources.
PAGE 3.
The implementation of the Taxi Medallion Sales Pilot Program through the adoption of these regulations is likely to result in substantial new revenue to the SFMTA from the sale of Taxi Medallions.
DESCRIPTION
Taxi Services staff and the City Attorney’s office have consulted with financial institutions that have expressed interest in providing financing for San Francisco’s Taxi Medallion loans, and have reviewed the regulations governing the purchase and sale of Taxi Medallions in other municipalities in the United States, including Boston, Chicago, Philadelphia, Miami Dade County and New York City. The proposed regulations are intended to provide a legal and procedural framework for the purchase and sale of San Francisco Taxi Medallions.
The San Francisco Taxi Medallion Sales Pilot Program includes the following features:
1. Only pre-qualified lenders may make loans on Medallions. Pre qualified lenders must be either a bank or a credit union, must agree not to charge any prepayment penalties to borrowers, and must enter into an agreement with the SFMTA prior to being qualified to loan money for Taxi Medallion purchases. This is designed to avoid usurious loan agreements or the exercise of undue influence by companies over drivers through financing Medallion loans. Proof of the source of funds will be required as part of the loan documentation process. Lenders are required to retain at least 10 percent of the loan in order to maintain their status as the “lead lender” for that loan; the loan cannot be later assigned or otherwise transferred to a different lender.
2. Taxi companies that want to be able to affiliate with a Medallion that has been purchased will have to enter into an agreement with the SFMTA and the participating lenders to guarantee loan payments in the event of foreclosure until the Medallion is transferred to a new owner. This system is based on the model that the Taxi Services section has already successfully employed to allow the continued operation of a Medallion without an owner until it can be re-issued to a new Medallion Holder. This has the benefit of reducing risk to the lender (resulting in better loan terms to Drivers) and avoiding the loss of work for other Drivers who depend on that vehicle for shifts until the transition to a new owner.
3. The regulations clarify the respective procedures for the termination of a Medallion Holder’s interest in a Medallion based on payment default on the one hand, and disciplinary revocation on the other. When there is a payment default, the lender carries out foreclosure proceedings and re-sells the Medallion to the next qualified buyer identified by the SFMTA. When there is a disciplinary revocation, it is the SFMTA that initiates and conducts the proceedings, and the Medallion Holder has different rights and responsibilities under each of those two circumstances based upon applicable law, regulation, or contract instrument.
4. These amendments clarify that even though Medallion Holders may become eligible to sell their Medallion through the Pilot Program by following the prescribed procedures, the SFMTA Board has the authority to terminate the Pilot Program at any time and halt the further purchase and sale of Medallions by otherwise eligible buyers and sellers. This is because this Pilot Program is designed to test assumptions and measure consequences. If it appears that the Pilot Program is causing damage to the industry or to the public the Board has the authority to cut the program short notwithstanding the existence of qualified buyers and sellers.
PAGE 4.
5. The SFMTA also has the first right of refusal to purchase any Medallion that is available for sale. This is another tool that is available to the SFMTA to minimize adverse effects of the Pilot Program if it appears necessary to reduce the number of, or eliminate, transferable Medallions.
6. These amendments clarify the nature of the property right that is held by a Medallion purchaser, and that it does not include the right to transfer the Medallion to any other person except by Medallion purchase and sale procedures approved by the SFMTA.
7. The SFMTA would guarantee to lenders that the Medallions that are transferred under the Pilot Program would not be offered for sale at any price less than the original sale price. This is another mechanism tor reduce the lenders’ risk and thereby procure better loan terms for Medallion buyers.
8. The proposed regulations set forth procedures for lenders to follow to file notice of and to release their security interest in a Medallion with the SFMTA.
9. The Director of Transportation is authorized by these regulations to adopt rules and procedures to implement the Pilot Program.
The City Attorney’s Office has reviewed this report.
ALTERNATIVES CONSIDERED
If the proposed amendments are not adopted, the Taxi Medallion Sales Pilot Program cannot be implemented until staff returns to the Board of Directors with satisfactory alternative regulations to govern the financing of Medallion purchases. Financial institutions that have expressed a willingness to provide financing for these purchases require assurances from the SFMTA in the form of regulations about standards, requirements and procedures that will be applied during the Pilot Program. For example, procedures upon default of payment, procedures upon disciplinary revocation, notification of perfected security interests, and minimum qualifications for participating lenders are all critical components of the Pilot Program that must be established before the financial institutions can make medallion financing available.
FUNDING IMPACT
The implementation of the Taxi Medallion Sales Pilot Program is likely to result in substantial new revenue to the SFMTA from Taxi Medallion sales.
OTHER APPROVALS RECEIVED OR STILL REQUIRED
None.
RECOMMENDATION
Staff recommends that the SFMTA Board adopt the proposed amendments to Transportation Code Division II, Article 1100.
SAN FRANCISCO
MUNICIPAL TRANSPORTATION AGENCY
BOARD OF DIRECTORS
RESOLUTION No. ______________________
WHEREAS, The implementation of the Taxi Medallion Sales Pilot Program (“Pilot Program”) requires a body of regulations, forms and procedures for successful implementation, including but not limited to rules and procedures for financing Medallion purchases and the clarification of the parties’ rights during all stages of that process; and
WHEREAS, Taxi Services staff, in consultation with the City Attorney’s Office and participating financial institutions, and after reviewing the applicable regulations from other jurisdictions, has developed proposed regulations to govern the financing of Medallion purchases; and,
WHEREAS, The proposed regulations address minimum qualifications for participating lenders to finance Medallion purchases, requirements for executing a Medallion purchase and sale transaction, notification of perfection of lenders’ security interests in purchased Medallions, and procedures for foreclosure on and resale of a Medallion upon payment default or disciplinary revocation of a purchased Medallion; now, therefore, be it
RESOLVED, The Board of Directors approves and adopts amendments to Article 1100 of Division II of the Transportation Code, regulating Motor Vehicles for Hire.
I certify that the foregoing resolution was adopted by the San Francisco Municipal Transportation Agency Board of Directors at its meeting of ___________________________.
______________________________________
Secretary to the Board of Directors
San Francisco Municipal Transportation Agency
[Taxi Medallion Sales Pilot Program.]
Resolution amending Article 1100 of Division II of the San Francisco Transportation Code by amending Sections 1102, 1103 and 1109.
NOTE: Additions are [begin addition] single-underline Times New Roman [end addition] ;
deletions are [begin deletion] strike-through Times New Roman [end deletion] .
The Municipal Transportation Agency Board of Directors of the City and County of San Francisco enacts the following regulations:
Section 1. Article 1100 of Division II of the Transportation Code is hereby amended by amending Section 1102, to read as follows:
SEC. 1102. DEFINITIONS
For purposes of this Article the following words and phrases shall have the meanings set forth below:
(a) “A-Card” or “Driver Permit” shall mean a permit issued by the SFMTA to operate a Taxi or Ramp Taxi in the City.
(b) "A Card Seniority" shall mean the seniority status of each Driver Permit Holder based on the original issuance date of the Driver Permit, or the issuance date of the most recent Driver Permit if the Driver has been issued a new Driver Permit in accordance with Section 1108(b)(5) after failure to timely renew his or her Driver Permit.
(c) “Administrative Probation” shall mean the status of being substantially out of compliance with this Article according to by a written determination of Administrative Probation issued by the SFMTA.
(d) "Color Scheme" shall mean either the design or trade dress of a vehicle used as a Taxi or Ramp Taxi that is distinct to the fleet of a business that provides taxi service, or a business that provides taxi service and holds a Color Scheme Permit issued by the SFMTA, including any owner, manager, employee, lessee and any agent of such business.
(e) “Color Scheme Permit” shall mean a permit issued by the SFMTA to operate a Color Scheme in the City.
(f) “Controlled Substance Testing Program” shall mean a program adopted by the SFMTA Board to comply with California Government Code § 53075.5.
(g) "Dispatch Service" shall mean any person, business, firm, partnership, association or corporation which holds itself out to the public as a service by or through which taxis may be summoned or dispatched by radio, telephone, or other means of communication, including any owner, manager, employee, lessee and any agent of said service.
(h) “Dispatch Service Permit” shall mean a permit issued by the SFMTA to operate a Dispatch Service in the City.
(i) "Driver" shall mean either a person who holds a Driver Permit issued by the SFMTA to operate a Motor Vehicle for Hire or a person engaged in the mechanical operation and having physical charge or custody of a Motor Vehicle for Hire while said Motor Vehicle for Hire is available for hire or is actually hired.
(j) "Driver Fund Transfer Fee" shall mean five percent of the fixed price for the sale of a Medallion as determined in accordance with this Article.
(k) “Driver Permit” or “A-Card” shall mean a permit issued by the SFMTA to operate a Taxi or Ramp Taxi in the City.
(l) “Driver Roster” shall mean a daily shift schedule listing the shift assignment, Driver’s name, vehicle number and Medallion number, if different, and the hours worked for that shift.
(m) "Filing Fee" shall mean a fee in an amount established by the SFMTA Board, due upon application for a permit, and including any late payment penalties or interest for failure to pay in accordance with the requirements of this Article of any other regulation adopted by the SFMTA Board.
(n) “Found Property” shall mean any personal property found in or about a Motor Vehicle for Hire by a Driver or delivered to a Driver, Color Scheme or Dispatch Service by any person who has found such property.
(o) "Full-Time Driver" or "Full-Time Driving" shall mean any Driver actually engaged in, or the activity comprised of (respectively) the mechanical operation and physical charge and custody of a Taxi or Ramp Taxi which is available for hire or actually hired for at least 156 four-hour shifts or 800 hours during a calendar year.
(p) "Gate Fee" shall mean any monetary fee or other charge or consideration, or any combination thereof, required of a Driver who is not a Taxi or Ramp Taxi Medallion Holder for the privilege of driving a Taxi or Ramp Taxi during a particular shift, or for any period of time, including receipt of all services provided in connection with such privilege, whether said fee is set by contract, lease or other agreement, orally or in writing, and whether said fee is paid by the Driver as a flat rate, as a commission on receipts from fares, or as a specified fee for any other purpose.
(q) “In-Taxi Equipment” shall mean hardware and software that enables the real-time processing of paratransit debit card transactions and consisting of, at a minimum, a Taximeter, magnetic swipe reader, user interface (display and function buttons), high speed receipt printer, GPS receiver, cellular modem and antennae (cellular and GPS).
(r) “Key Personnel” shall mean a Taxi Permit Holder who works in an administrative capacity or performs functions integral to a Color Scheme, who is a bona fide employee on the payroll of the Color Scheme and who works on-site at the Color Scheme’s principal place of business.
(s) “Lease” shall mean an otherwise lawful written document, employment contract, or other agreement that for consideration authorizes the temporary operation of a Taxi or Ramp Taxi Medallion by a person or Color Scheme other than the Taxi or Ramp Taxi Medallion Holder.
(t) "Lease Fee" shall mean any monetary fee or other charge or consideration, or any combination thereof, charged by or paid to a Taxi or Ramp Taxi Medallion Holder for the privilege of operating that Medallion during a particular shift, or for any period of time.
(u) “Medallion” shall mean a permit issued by the SFMTA to operate a particular Taxi or Ramp Taxi vehicle in the City.
(v) “Medallion Holder” shall mean the person or entity to whom a Medallion was issued.
(w) "Medallion Sale Price" shall mean the fixed price for the sale of a Medallion as determined by the SFMTA in accordance with this Article.
(x) "Medallion Sale Transfer Fee" shall mean fifteen percent of the fixed price for the sale of a Medallion as determined by the SFMTA in accordance with this Article.
(y) "Motor Vehicle for Hire" shall mean every type of privately owned motor vehicle, as defined in the Vehicle Code, which is available for hire and over which the City may exercise jurisdiction, except as otherwise specified in this Article.
(z) "Motor Vehicle for Hire Permit" shall mean a permit issued by the SFMTA for the operation of an identified vehicle for the purpose of transporting passengers for a price, including Taxi and Ramp Taxi Medallions and Non-Standard Vehicle permits, and does not include Dispatch Service, Color Scheme or Driver Permits.
(aa) “Model Year” shall mean the year model designated at the time of manufacture of first assembly as a completed vehicle (e.g. If a vehicle is produced in 2007, but is designated for sale as a 2008 model, then the vehicle is considered a 2008 Model Year.)
(bb) "Non-Standard Vehicle" shall mean a privately owned, motor-propelled passenger carrying vehicle which may be legally operated on the streets of the City under all applicable state and local laws and regulations, and which is not defined elsewhere in this Article.
(cc) “O.E.M.” shall mean any equipment installed on a vehicle when the vehicle was initially manufactured.
(dd) “Paratransit Broker” shall mean the contractor retained by SFMTA to administer the Paratransit Program.
(ee) “Paratransit Coordinating Council” shall mean the community advisory committee which advises the SFMTA regarding paratransit services.
(ff) "Paratransit Program" shall mean the SFMTA program to provide transit services for people unable to independently use public transit because of a disability or disabling health condition.
[begin addition] (gg) "Participating Color Scheme" shall mean a Color Scheme that has entered into an agreement with the SFMTA for the operation of Medallions that are sold and purchased in accordance with Section 1109(e) of this Article. [end addition]
( [begin deletion] gg [end deletion] hh) "Permit Fee" shall
mean a fee in an amount established by the SFMTA Board, required to be paid by
a permit applicant for permit issuance or renewal, including any late payment
penalties or interest for failure to pay in accordance with the requirements of
this Article and any other regulations adopted by the SFMTA Board.
( [begin deletion] hh [end deletion] ii) "Permit Holder"
shall mean any person, business, firm, partnership, association or corporation
which holds any permit issued by or under the authority of the SFMTA to drive,
operate or cause to be operated any Motor Vehicle for Hire or to operate any
Dispatch Service or Color Scheme pursuant to this Article, and any agent of
such Permit Holder including, but not limited to, any owner, manager, employee
or lessee of such Permit Holder.
( [begin deletion] ii [end deletion] jj) "Police Department" shall
mean the Police Department of the City and County of San Francisco.
[begin addition] (kk) “Qualified Lender” shall mean a lender approved by the
Director of Transportation to finance the purchase of Medallions under the Taxi
Medallion Sales Pilot Program.
(ll) "Qualified Purchaser" shall mean a Driver Permit Holder
who meets all the requirements for purchase of a Medallion under Section
1109(e)(2). [end addition]
[begin addition] (mm) "Qualified Seller" shall mean a Medallion Holder who meets the requirements of Section 1109(e)(1)(A) or 1109(e)(1)(B). [end addition]
( [begin deletion] jj [end deletion] nn) "Ramp Taxi" shall
mean a Taxi that is specially adapted with access for wheelchair users.
( [begin deletion] kk [end deletion] oo) "Ramp Taxi
Medallion" shall mean a permit issued by the SFMTA to operate a
particular Taxi vehicle that is specially adapted with access for wheelchair
users.
( [begin deletion] ll [end deletion] pp) “Ramp Taxi Program” shall
mean the SFMTA program that oversees the delivery of transportation services to
individuals whose disabilities require the use of vehicles equipped with a
ramp.
( [begin deletion] mm [end deletion] qq) "Rates of Fare" shall
mean the fees and charges that are authorized by the SFMTA Board that may be
charged to the public by a Permit Holder in consideration for transport by a
Motor Vehicle for Hire.
( [begin deletion] nn [end deletion] rr) “Response Time Goals” shall
mean the measure of industry performance expressed by the time elapsed between
the time a Dispatch Service receives a request for service to the time that a
Taxi or Ramp Taxi actually arrives at the location specified by the customer
for pick up. The currently applicable Response Time Goals are as follows:
1. 70% of the time, a Taxi or Ramp Taxi will arrive within 10 minutes of the service call.
2. 80% of the time, a Taxi or Ramp Taxi will arrive within 15 minutes of the service call.
3. 99% of the time, a Taxi or Ramp Taxi will arrive within 30 minutes of the service call.
( [begin deletion] oo [end deletion] ss) "SFMTA" shall
mean the San Francisco Municipal Transportation Agency of the City, or any
predecessor agency with regulatory jurisdiction over Motor Vehicles for Hire,
or its authorized designee.
( [begin deletion] pp [end deletion] tt) "Taxi" shall
mean a vehicle operated pursuant to a Taxi or Ramp Taxi Medallion that is
legally authorized to pick up passengers within the City with or without
prearrangement, of a distinctive color or colors and which is operated at rates
per mile or upon a waiting-time basis, or both, as measured by a Taximeter and
which is used for the transportation of passengers for hire over and along the
public streets, not over a defined route but, as to the route and destination,
in accordance with and under the direction of the passenger or person hiring
such vehicle.
( [begin deletion] qq [end deletion] uu) "Taxi Medallion Sales
Pilot Program" shall mean the program adopted by the SFMTA Board of
Directors for the purchase and sale of certain Taxi Medallions at an
established Medallion Sale Price to a purchaser who is qualified to hold a
Medallion under these regulations.
( [begin deletion] rr [end deletion] vv) "Taximeter" shall
mean a device attached to a Motor Vehicle for Hire which mechanically or electronically
calculates the fare to be charged to the passenger, either on the basis of
distance traveled or for waiting time, or a combination thereof, and upon which
the amount of the fare is indicated by means of numerals in dollars and cents.
( [begin deletion] ss [end deletion] ww) "Vehicle Number" shall
mean the unique identifying number associated with each Taxi or Ramp Taxi
vehicle.
( [begin deletion] tt [end deletion] xx) "Waiting List" shall
mean a list of applicants for Taxi or Ramp Taxi Medallions for whom such
Medallions are not yet available, maintained in the order of receipt of
complete applications from qualified applicants.
Section 2. Article 1100 of Division II of the Transportation Code is hereby amended by amending Section 1103, to read as follows:
SEC. 1103. PERMIT APPLICATIONS
(a) Application Forms
Application for any permit issued pursuant to this Article shall be made to the SFMTA on a form provided by the SFMTA. The applicant shall provide such information and documents as the SFMTA requires, which may include a physical examination and/or background check of the applicant. The SFMTA shall record the date and time that a complete application, including the Filing Fee, is received.
(b) Applications Deemed Active
Every application for a permit shall be deemed to remain active and shall be considered until the earliest of the following events:
(1) The applicant withdraws the application in writing;
(2) The applicant is determined to be ineligible for the permit by the SFMTA;
(3) The applicant receives a permit;
(4) The SFMTA determines that the applicant has engaged in fraud, misrepresentation or other serious misconduct in connection with the permit application process; or
(5) The SFMTA attempts to contact the applicant at the mailing address listed on the application on at least two separate occasions and the applicant fails to respond within 30 days of the second notice.
[begin addition] (6) The SFMTA has offered a Medallion for purchase to the applicant, and the applicant fails to complete the purchase of the Medallion within the deadlines established by the Director of Transportation pursuant to Section 1109(e)(6)(C). [end addition]
(c) Additional Requirements Applicable to Driver Permit Applications
(1) Application Requirements
In addition to complying with all applicable requirements of this Section 1103, each applicant for a Driver Permit shall:
(A) Provide his or her fingerprints; and
(B) Take and pass a written examination; and
(C) Take and pass a physical examination if required by the SFMTA; and
(D) Certify that the applicant has successfully completed an SFMTA-approved Driver training course; and
(E) Enclose two recent photographs of the applicant of passport photo size, taken no more than 12 months prior to the time of application; and
(F) Enclose a statement of affiliation signed by the applicant, the Color Scheme and the Dispatch Service associated with the Color Scheme. The applicant’s choice of Color Scheme shall be subject to the approval of the SFMTA, which may deny such request if in the SFMTA’s judgment the proposed affiliation could be detrimental to the Driver, the Color Scheme or to the public.
(G) Reserved: Controlled Substance Testing Program.
(2) Driver Qualifications
Each applicant for a Driver's Permit must:
(A) Be a resident of the United States;
(B) Be clean in dress and person;
(C) Be free of any disease, condition, infirmity, or addiction that might render the applicant unable to safely operate a motor vehicle or that otherwise poses a risk to public health and safety;
(D) Hold a valid California driver's license of a class sufficient for the lawful operation of the motor vehicle to be driven;
(E) Have the physical capacity to operate a motor vehicle for at least four hours per day;
(F) Have no prior convictions of a crime that would, in the judgment of the SFMTA, present a risk to public safety if the permit is granted, including but not limited to convictions involving sexual assault, the use of a vehicle in the commission of a felony, fraud, violence against a person, reckless disregard for public safety, two or more recent convictions of drug-related offenses, or two or more recent convictions of driving under the influence, whether or not such convictions occurred while driving a Motor Vehicle for Hire. The SFMTA may, in its discretion, issue a permit notwithstanding prior convictions if, following review of an individual case, it determines that the applicant or Permit Holder does not pose a current risk to public safety;
(G) Have attained the age of 21;
(H) Speak read and write the English language;
(I) Reserved: Controlled Substance Testing Program.
(d) Additional Requirements Applicable to Taxi and Ramp Taxi Medallion Applications
(1) Waiting List
In the absence of any other preference specified in this Article, applicants for a Medallion shall be processed and considered by the SFMTA in the order of receipt of the Waiting List application, and then in order of A-Card Seniority. The SFMTA shall maintain a Waiting List of Medallion applications arranged in chronological order by the date that each complete Medallion application, including Filing Fees, was received from a qualified applicant. Each applicant for a Taxi or Ramp Taxi Medallion shall have held a valid Driver Permit for a minimum of two consecutive years prior to applying for a Medallion.
(A) Every applicant for a Taxi or Ramp Taxi Medallion must continuously maintain a valid Driver Permit in order to maintain his or her position on the Waiting List.
(B) The SFMTA may periodically require applicants to execute written statements to reaffirm their desire to keep their applications are active.
(C) As of December 16, 2009, the SFMTA shall no longer accept applications for the Waiting List. When there are no more qualified applicants on the Waiting List, the SFMTA shall offer Medallions to Driver Permit Holders who meet all other requirements of this Article in order of A-Card Seniority.
(e) Additional Requirements Applicable To Ramp Taxi Medallion Applications
(1) Limitation on Acceptance of Other Permits
No person to whom a Ramp Taxi Medallion is issued may accept any other Medallion for a minimum of three years after receipt of the Ramp Taxi Medallion. If a Ramp Taxi Medallion Holder becomes eligible for a Taxi Medallion during his or her first three years as a Ramp Taxi Medallion Holder, and so long as the Ramp Taxi Medallion Holder remains otherwise qualified, the Ramp Taxi Medallion Holder's application shall be kept active and shall be considered for a Taxi Medallion before other qualified applications after the three year period has elapsed.
(2) Notice of Intent to Leave the Ramp Taxi Program
(A) Upon completion of a minimum of 30 months as a Ramp Taxi Medallion Holder, the Permit Holder may elect to leave the Ramp Taxi program at any time by filing six months’ advance written notice of the Permit Holder's intent to leave the program with the SFMTA (“Notice of Intent”). The date that the SFMTA receives the Notice of Intent shall be deemed the date of the Notice.
(B) Notice of Intent Effective Date; Qualification for New Permit
The Permit Holder's decision to leave the Ramp Taxi Program shall become effective six months after the Notice of Intent is filed. Except as provided by subsections (C) and (D) below, upon completion of the six month notice period, the Ramp Taxi Medallion shall expire by operation of law, and the Permit Holder shall no longer be precluded from accepting another Motor Vehicle for Hire Permit.
(C) If, at the completion of the six-month notice period, the Permit Holder is not yet eligible for a Taxi Medallion, or if no such Taxi Medallion is available, the Permit Holder may elect to remain in the Ramp Taxi program for any period of time until a Taxi Medallion becomes available.
(D) The Permit Holder's decision to leave the Ramp Taxi Program shall become inoperative if, prior to expiration of the of the six-month notice period, the Permit Holder files a statement of his or her decision to withdraw the Notice of Intent. The Permit Holder shall be required to file a subsequent Notice of Intent if he or she later decides to leave the Ramp Taxi Program. The same requirements governing the Permit Holder's initial Notice of Intent, including the full six-month notice period, shall apply to any subsequently filed Notice of Intent to leave the Ramp Taxi Program.
(f) Additional Requirements Applicable to Non-Standard Vehicle Permit Applications
(1) An applicant may request a Non-Standard Vehicle class of permit for any vehicle(s) that is not otherwise included within another class of Motor Vehicle for Hire permits.
(2) If a Non-Standard Vehicle permit applicant proposes to operate along fixed routes within the City, such fixed routes shall be specified in the permit application. Fixed routes proposed for a permit must be approved by the SFMTA and shall be included in the Non-Standard Vehicle permit as a permit condition. Consideration of such routes by the SFMTA shall include evaluation of their impact on public transit.
(g) Additional Requirements Applicable To Dispatch Service Permit Applications
(1) Submission of Emergency Plans
Applicants for Dispatch Service Permits or permit renewal shall submit a "Standard Emergency Plan for Drivers and Dispatchers" to follow in an emergency. Such plan is subject to SFMTA approval. SFMTA may require revisions to such Emergency Plan in order to coordinate with the emergency plans of the City, other Permit Holders and the Paratransit Program. Such plan shall include emergency communication protocols between Dispatch Services and their Color Scheme affiliates and the emergency evacuation of the public from the City, including but not limited to paratransit customers.
(2) Lost and Found Protocol Compliance
No application for a Dispatch Service Permit shall be approved or renewed if a Dispatch Service Permit applicant cannot demonstrate knowledge of and ability to adhere to SFMTA’s protocol for the handling of Found Property.
(h) Additional Requirements Applicable To Color Scheme Permit Applications
Reserved.
Section 3. Article 1100 of Division II of the Transportation Code is hereby amended by amending Section 1109, to read as follows:
SEC. 1109. CONDITIONS APPLICABLE TO TAXI AND RAMP TAXI MEDALLIONS
(a) Affiliation With Color Scheme Required; Color Scheme Change
(1) A Medallion Holder shall be deemed affiliated with a particular Color Scheme when the SFMTA approves his or her application pursuant to this Article, and shall entitle the Medallion Holder to the right to the use of that Color Scheme's trade dress and place of business. Color Schemes shall not unreasonably withhold the use of the trade dress and place of business once affiliation has been approved.
(2) Affiliation with a Color Scheme and/or the failure of a Color Scheme to comply with this Article does not relieve the Medallion Holder of his or her responsibility to comply with all requirements of this Article applicable to the Medallion Holder.
(3) A Medallion Holder may apply to the SFMTA for a change in affiliation. The applicant’s choice of Color Scheme shall be subject to the prior approval of the SFMTA. A Medallion Holder’s request for affiliation with a Color Scheme shall be approved unless the Color Scheme is on Administrative Probation pursuant to Section 1118(g). The SFMTA may delay or deny a change in Color Scheme affiliation by a Medallion Holder if a court of competent jurisdiction issues a temporary or permanent order to prohibit or delay the transfer.
[begin addition] (4) A Medallion Holder who purchases his or her Medallion in accordance with subsection (e) must affiliate with a Participating Color Scheme. [end addition]
(b) Use of Dispatch Service
All Medallion Holders affiliated with a Color Scheme must utilize the same Dispatch Service.
(c) Full-Time Driving Requirement
(1) Every Medallion Holder subject to the provisions of this section 1109(c) shall be a Full-Time Driver.
(2) Exception for Certain Permits
Notwithstanding any contrary provision in this Article, the requirements set forth in this Subsection 1109(c) shall not apply to any person holding a Medallion issued on or before June 6, 1978.
(3) Declaration Required
No permit to operate a Taxi or Ramp Taxi shall be granted unless the Medallion Holder shall declare under penalty of perjury his or her intention actively and personally to engage as a Full-Time Driver.
(4) Qualifying Vehicle
All Medallion Holders must drive the Taxi or Ramp Taxi associated with their Medallion when complying with Subsection 1109(c) unless that vehicle is unavailable.
(5) Medallion Holders Responsible for Documenting Compliance
A Medallion Holder has the responsibility to maintain his or her own business records, including Waybills. Only written Waybills completed in compliance with all requirements may be used to meet the Full-Time Driving requirement. Failure of a Color Scheme to maintain business records, including Waybills, as required by this Article shall not excuse a Medallion Holder from proving that he or she has satisfied this Subsection 1109(c) or any other requirement.
(6) Partial Years
During the year that a Medallion is first issued or any year in which operation of the Medallion was temporarily suspended with the approval of the SFMTA in accordance with Section 1105(9), the number of driving hours required to meet the Full-Time Driving Requirement shall be reduced by the same proportion as the ratio of the Permit Holder’s excused driving hours to the hours remaining in the calendar year.
(7) Exception for Color Scheme Key Personnel
(A) Alternative Driving Requirement
Medallion Holders who are designated as “Key Personnel” by a Color Scheme may satisfy the Full-Time Driving requirement by driving 120 hours per year and performing 1,500 hours of work per year as Key Personnel for the Color Scheme.
(B) Written Designation of Key Personnel
Each Color Scheme seeking to designate one or more of its employees for a calendar year pursuant to this Subsection 1109(c)(7) must file a written designation by December 1st of the preceding year. A Permit Holder may not be designated as Key Personnel by more than one Color Scheme during a calendar year. The SFMTA will only recognize as Key Personnel only those Medallion Holders named in a completed designation form filed by the Color Scheme as of December 1st.
(C) Number of Key Personnel Designated at a Color Scheme
Each Color Scheme will be entitled to designate Key Personnel in accordance with the number of Medallions affiliated with that Color Scheme. The number of Medallions affiliated with a particular Color Scheme for a calendar year shall be determined as of December 1st of the previous year, based on the records of the SFMTA. Only individuals already holding a Medallion by December 1 of that year may be considered for Key Personnel designation. The number of designated Key Personnel at a Color Scheme may not be increased or decreased during the subsequent calendar year even if the number of Medallions affiliated with that Color Scheme changes during the year.
A Color Scheme with 1 to 10 Medallions may not designate anyone as Key Personnel.
A Color Scheme with 11 to 20 Medallions may designate one person.
A Color Scheme with 21 to 40 Medallions may designate two people.
A Color Scheme with 41 to 60 Medallions may designate three people.
A Color Scheme with 61 to 80 Medallions may designate four people.
A Color Scheme with 81 to 100 Medallions may designate five people.
A Color Scheme with 101 to 150 Medallions may designate six people.
A Color Scheme with 151 to 200 Medallions may designate seven people.
A Color Scheme with 201 to 300 Medallions may designate eight people.
A Color Scheme with 301 to 400 Medallions may designate nine people.
A Color Scheme with over 400 Medallions may designate nine people, plus one additional person for every 100 Medallions over 400.
(D) Statement of Work by Key Personnel
No later than February 1st of each year, each Color Scheme that has designated one or more employees as Key Personnel must submit a written Statement of Work on a form provided by SFMTA, demonstrating the number of hours during the previous calendar year that each of its designated Key Personnel worked on tasks related to the business of the Color Scheme, including but not limited to, office duties, dispatching, cashiering, or performing management duties. The Statement of Work shall be signed under penalty of perjury by both the Color Scheme and the Medallion Holder designated as Key Personnel. The Color Scheme shall be responsible for submitting proof of employment with the Statement of Work, which shall consist of state or federal tax forms filed with the appropriate regulatory agency. A Medallion Holder and/or Color Scheme that submit a falsely sworn Statement of Work shall be subject to automatic revocation of his or her Permit.
(E) Partial Completion of Requirements
If a Medallion Holder performs at least 750 hours of work as designated Key Personnel for the a Color Scheme during the year but less than 1,500 hours, the Permit Holder shall be entitled to partial credit against the Full-Time Driving requirement on a pro rata basis. The credit shall correspond to the percentage of 1,500 hours that the designated Permit Holder worked for the company in such capacity. If a Permit Holder does not perform at least 750 hours of work as designated personnel for the Color Scheme during the year, the Permit Holder shall not be entitled to any credit against the Full-Time Driving requirement.
(F) Ramped Taxi Permit Holders Ineligible
Ramped Taxi Permit Holders are not eligible to be designated as Key Personnel.
(d) Corporate Medallion Holders
(1) Permits Void in Event of Transfer or Sale of Permit Holder
Any Medallion held by a Permit Holder that is not a natural person shall be deemed null and void and revoked if any of the following circumstances has occurred since the issuance of the Medallion:
(A) If the Medallion Holder is or was sold or transferred at any time after June 6, 1978. For the purposes of this Section, a sale or transfer occurs upon a cumulative sale or transfer of either 10 percent or more of the stock or other ownership of the Medallion Holder, or 10 percent of the Permit Holder’s assets since June 6, 1978, unless such sale or transfer has the prior written approval of the SFMTA.
(B) If the management or control of the Permit Holder is or has been transferred for consideration since the issuance of the permit;
(C) If the Medallion Holder’s rights to receive income derived from the lease of a permit is assigned, transferred or sold.
(e) Taxi Medallion Sales Pilot Program
(1) Qualified Taxi Medallion Sellers
[begin addition] (A) [end addition] Any [begin deletion] Medallion held by a [end deletion] natural
person who: (1) has attained or will attain the age of 70 [begin deletion] years old or older [end deletion] as of December
31, 2010; or (2) [begin addition] has
demonstrated to the satisfaction of the SFMTA that he or she [end addition] has a
bona fide disability that permanently prevents him or her from satisfying the
Full-Time Driving requirement, [begin deletion] and
has notified the SFMTA of that disability by completing the prescribed
application and providing the prescribed documentation on or before December
31, 2010, [end deletion] is eligible [begin addition] to
sell his or her Medallion [end addition] [begin deletion] for
sale [end deletion] in accordance with this subsection (e). [begin addition] This subsection (e)(1)(A) does not confer
on a Medallion Holder who meets the age or disability requirements of this
subsection a vested right to sell a Medallion. The SFMTA Board of Directors may
declare at any time that the Taxi Medallion Sales Pilot Program is terminated
and that no further sales by eligible Medallion Holders under this subsection
(e)(1)(A) are permitted. [end addition]
[begin addition] (B) Any Purchaser of a Medallion under this subsection (e) is eligible to sell the purchased Medallion in accordance with this subsection (e). The Purchaser may not transfer ownership of the Medallion by gift, bequest or in any manner other than by a bona fide sale in accordance with this subsection (e). A Medallion purchased under this subsection (e) shall expire upon the death or mental incompetence of the Medallion Holder, upon the foreclosure by a Qualified Lender under subsection (e)(14), or upon revocation of the Medallion under Section 1120 of this Article. [end addition]
[begin addition] (C) In all instances in which sale of a Medallion is allowed under this subsection (e), the SFMTA may elect to purchase the Medallion from the Qualified Seller or to allow the Qualified Seller to offer the Medallion for sale to a Qualified Purchaser. [end addition]
(2)
Qualified Taxi Medallion [begin deletion] Buyers [end deletion]
[begin addition] Purchasers [end addition]
The SFMTA shall
authorize Medallion sales under the Pilot Program only to Driver Permit Holders
who meet all eligibility requirements for Medallion ownership in Sections 1103
and 1104 of this Article [begin addition] and who
acknowledge and agree that the Medallion purchased is subject to the provisions
of this subsection (e) [end addition] . The SFMTA shall make offers of sale to such [begin deletion] q [end deletion] [begin addition] Qualified Purchasers [end addition] [begin deletion] Driver Permit Holders [end deletion] in the order of seniority
on the Waiting List, and then in the order of A-Card Seniority.
(3) Fixed Medallion Sale Price
Any Medallion sold
pursuant to this subsection (e) shall be sold [begin addition] under
the supervision of the SFMTA [end addition] at a price established by the SFMTA.
The initial Medallion Sale Price shall be established by the Director of
Transportation after a public hearing and shall not exceed $400,000. In setting
the initial Medallion Sale Price, the Director of Transportation shall consider
the commercial loan terms available to Medallion applicants, the affordability
of the monthly payments under such loans, the anticipated business revenue to
be generated from a Medallion, and other [begin addition] commercially
relevant [end addition] factors [begin deletion] relevant
to the economic dimensions of the sale [end deletion] . Upon setting the initial
Medallion Sale Price, the Director of Transportation shall notify the SFMTA
Board [begin addition] of Directors [end addition] and
the public of the [begin addition] Medallion [end addition]
Sale Price. The Director of Transportation [begin deletion] shall [end deletion] [begin addition] may [end addition] adjust the Medallion Sale
Price [begin addition] no more frequently than [end addition]
annually in accordance with the percentage increase in the Consumer Price Index
for Urban Wage Earners for the San Francisco Bay Area [begin addition] since the date that the Medallion Sale Price was last set or adjusted [end addition] [begin deletion] over
the preceding year [end deletion] . The Director of Transportation may increase or
decrease the Medallion Sale Price at any time in accordance with the procedure
for setting the initial Medallion Sale Price [begin addition] ,
subject to the restrictions set forth in any agreement between the SFMTA and a
Qualified Medallion Lender described in Section 1109(e)(12)(C) [end addition] .
(4) Medallion Transfer Fees
The seller of a Medallion shall pay to the SFMTA the Medallion Sale Transfer Fee and the Driver Fund Transfer Fee [begin addition] at the time of sale [end addition] . The SFMTA shall deposit the Driver Fund Transfer Fee into the Driver Fund.
(5) Medallion Sales by City
[begin addition] As part of the Taxi Medallion Sales Pilot
Program [end addition] , [begin deletion] T [end deletion] the SFMTA may sell up to 60
Medallions that have been returned to the SFMTA for any reason to Qualified [begin addition] Purchasers [end addition] [begin deletion] Driver Permit Holders [end deletion] at the
Medallion Sale Price. The SFMTA shall be responsible for payment of the Driver
Fund Transfer Fee for each such Medallion sold. The SFMTA shall continue to
issue Medallions to applicants in accordance with Sections 1103 and 1104 of
this Article during the pendency of the Taxi Medallion Sales Pilot Program.
(6) Taxi Medallion Purchase and Sale Procedures
[begin deletion] Medallions shall be purchased and sold
under the Pilot Program in accordance with procedures adopted by the SFMTA. [end deletion]
(A) [begin addition] Sale of a Taxi Medallion may only be accomplished by a purchase and sale transaction that complies with all requirements of this Article. Transfer of a Medallion upon sale to a Qualified Purchaser is not effective until the transfer is approved by the Director of Transportation. [end addition]
[begin addition] (B) The Director of Transportation may require a Medallion purchaser to provide documentation in a form satisfactory to the SFMTA of the source of the funds used to purchase the Medallion. [end addition]
[begin addition] (C) The Director of Transportation may establish such purchase and sale procedures and other procedures as he or she deems appropriate to carry out the Taxi Medallion Sales Pilot Program. [end addition]
(7) Purchased Medallions Subject to all Regulations
A Medallion purchased pursuant to this subsection (e) remains subject to all applicable laws and regulations and may be suspended or revoked for cause.
(8) Resale of Medallions
Medallions acquired pursuant to this subsection (e) are eligible for resale by the Purchaser in accordance with the provisions of this subsection (e).
(9) Ramp Taxi Medallions
If any Ramp Taxi Medallion Holder who would qualify to sell a Medallion under subsection (e)(1) notifies the SFMTA that he or she elects to sell the Medallion, the SFMTA shall exchange the Ramp Taxi Medallion for a Taxi Medallion to be sold by the Medallion Holder. Such exchange shall not diminish the size of the Ramp Taxi fleet. No Ramp Taxi Medallion shall be sold pursuant to this subsection (e).
(10) Driver Fund
The SFMTA shall establish a Driver Fund. The SFMTA shall deposit all Driver Fund Transfer Fees into the [begin addition] Driver [end addition] Fund and may, in its sole and absolute discretion, elect to deposit other monies into the Fund. Monies in the Driver Fund may be expended by the SFMTA.
(11) Taxi Medallion Sales Pilot Program Advisory Council
(A) The SFMTA shall establish a Taxi Advisory Council ("Advisory Council"), which shall monitor the issues that arise during the Taxi Medallion Sales Pilot Program, evaluate the effects of the Pilot Program on all sectors of the taxi industry, and provide advice to the SFMTA Board of Directors and the Director of Transportation.
(B) The Advisory Council shall consist of 15 members appointed by the Director of Transportation. Three of the members shall be representatives of each of the following companies: Yellow Cab Cooperative, Luxor Cab Company and DeSoto Cab Company. Three of the members shall be representatives of other Color Scheme Permit Holders. Three of the members shall be Medallion Holders who do not represent a Color Scheme, and who are not employed as managers, dispatchers, cashiers, mechanics, or administrative staff of a Color Scheme. Three of the members shall be Drivers who are not Medallion Holders and who are not on the Waiting List. Three of the members shall be Drivers who are not Medallion Holders and who are on the Waiting List. Members shall serve for a term of two years and shall serve at the pleasure of the Director of Transportation. In the event that a vacancy occurs during a member's term, the Director of Transportation shall appoint a successor for the unexpired term.
(C) The Advisory Council shall prepare and provide to the Director of Transportation, no later than December 31, 2010, a report containing its assessment of the Taxi Medallion Sales Pilot Program and its recommendations regarding a long-term Medallion reform program. The Advisory Council shall be staffed by personnel from the Taxi Services section of the SFMTA.
(D) The Advisory Council shall terminate by operation of law two years year after the date that all members have been appointed, unless the SFMTA Board by resolution extends the term of the Council.
[begin addition] (12) Medallion Lender Qualification [end addition]
[begin addition] (A) A Purchaser of a Medallion may enter into a loan agreement for the purchase of a Medallion only with a Qualified Lender. A Qualified Lender shall not assign, sell or otherwise transfer the Qualified Lender's rights under the loan agreement and ancillary documents with respect to more than 90% of the original loan balance without the express, written consent of the Director of Transportation. [end addition]
[begin addition] (B) A Qualified Lender must be a financial institution chartered by a state government or the federal government, and may not impose any penalties or otherwise constrain the payment of the balance owed on the loan prior to the expiration of the loan term. The Director of Transportation shall adopt rules setting forth additional requirements for designation by the SFMTA as a Qualified Lender. If the SFMTA determines that a lender has failed to meet or maintain the requirements to be a Qualified Lender, the SFMTA shall deny the application to become a Qualified Lender or suspend or revoke the lender's current status as a Qualified Lender. [end addition]
[begin addition] (C) All Qualified Lenders must enter into a written agreement with the SFMTA, in a form approved by the SFMTA. The agreement shall include, at a minimum, the Qualified Lender's acknowledgement of the provisions of this subsection (e), the Qualified Lender's agreement to be bound by these provisions, and the SFMTA's promise not to set the Medallion Sale Price below the highest Medallion Sale Price paid by a Medallion Holder to whom a Qualified Lender made a loan that is still outstanding. [end addition]
[begin addition] (13) Security Interests [end addition]
[begin addition] (A) Qualified Lender's Security Interest. Notwithstanding any other provisions herein to the contrary, a Medallion Purchaser may encumber a Medallion with a security interest pursuant to an agreement entered into with a Qualified Lender to finance the purchase of the Medallion. [end addition]
[begin addition] (B) Filing Security Interests. A Qualified Lender wishing to evidence a secured interest in a Taxi Medallion shall file a notice of the security interest with the Taxi Services Section of the SFMTA in a form approved by the SFMTA within ten business days of closing the relevant loan transaction, and shall provide to the SFMTA the promissory note, loan agreement, security agreement, any other underlying contracts or documents memorializing the terms and conditions of the debt that is secured by the Medallion, and any documents memorializing the perfection of the security interest. The SFMTA will not recognize any secured interest in a Medallion that is not filed and reported in compliance with this rule. [end addition]
[begin addition] (C) Release of Secured Interest. Upon repayment of the loan secured by an interest in a Medallion, the Qualified Lender must file notice of release of the secured interest within 5 business days of the release with Taxi Services Section of the SFMTA along with any underlying contracts or documents memorializing the terms and conditions of the release. [end addition]
[begin addition] (14) Foreclosure and Transfer of Medallion [end addition]
[begin addition] (A) If the Purchaser defaults under the agreement with the Qualified Lender beyond any applicable notice and cure period, and the Qualified Lender intends to foreclose on the security interest, the qualified Lender shall notify the Taxi Services Section of the SFMTA at least 14 days prior to the date on which the Qualified Lender intends to foreclose. The notice shall include the name of the Medallion Holder, the intended date of foreclosure, and the contact information for the representative of the Qualified Lender to whom inquiries may be made. [end addition]
[begin addition] (B) Provided that the Qualified Lender has provided notice to the SFMTA under subsection (e)(14(A), upon foreclosure in accordance with applicable law and the terms of the security agreement between the Qualified Lender and the Medallion Holder, the Qualified Lender may sell the Medallion pursuant to the provisions of this subsection (e) to the Qualified Purchaser identified by the SFMTA at the Medallion Sales Price. After payment to the SFMTA of the Medallion Sale Transfer Fee and the Driver Fund Transfer Fee, the Qualified Lender shall disburse the proceeds of the sale in compliance with applicable law. [end addition]
[begin addition] (15) Disciplinary Revocation and Resale [end addition]
[begin addition] (A) In the event that the SFMTA brings disciplinary revocation proceedings under Section 1120 of this Article against a Medallion that has been sold in accordance with this subsection (e), the SFMTA shall provide notice of the filing of such proceedings to any Qualified Lender holding a secured interest in the Medallion if the Qualified Lender has complied with all notice and reporting requirements of this subsection (e). [end addition]
[begin addition] (B) Disciplinary revocation of a Medallion shall not affect the validity of the lien of a Qualified Lender against the Medallion. Resale of the Medallion after revocation for any reason shall be subject to the lien of the Qualified Lender. [end addition]
[begin addition] (C) Conduct of Sale. Upon revocation for any reason, the SFMTA shall identify the next qualified applicant and proceed to sell the Medallion in accordance with the procedures set forth in this subsection (e). [end addition]
[begin addition] (D) Disbursement of Sale Proceeds. At the time of sale of the revoked Medallion, the outstanding balance of the loan secured by a secured interest of a Qualified Lender in such Medallion on file with the SFMTA shall be satisfied with the Medallion sale proceeds after deducting the expenses of the sale and the Medallion Sale Transfer Fee and the Driver Fund Transfer Fee. Any remaining proceeds shall be disbursed to the former Medallion Holder or his or her designees [end addition]
[begin addition] (E) Continued Operation During Resale. Upon revocation of the Medallion, the SFMTA shall repossess and sell the Medallion. If the Medallion cannot be repossessed, the SFMTA shall issue a temporary Medallion to replace the Medallion during the pendency of the resale. The Medallion need not be in the possession of the SFMTA in order to proceed with resale. Upon revocation, and until the Medallion is transferred to a new Medallion Holder, the Medallion shall continue to be operated by the Participating Color Scheme with which it is affiliated. [end addition]
[begin addition] (16) Participating Color Schemes [end addition]
[begin addition] Any Color Scheme Permit Holder who wishes to participate in the Taxi Medallion Sales Pilot Program as a Participating Color Scheme must enter into a written agreement with the SFMTA. The agreement shall include, but need not be limited to, the agreement of the Color Scheme Permit Holder to allow Medallions purchased under this subsection (e) to affiliate with the Color Scheme in accordance with all applicable rules and regulations, and to continue to operate any such affiliated Medallion during the period commencing on the revocation of such Medallion and ending on the resale of the Medallion, and at any other time upon the request of the SFMTA. During such periods of operation, the Color Scheme shall continue to make the payments that would otherwise have been payable to the Medallion Holder to the SFMTA in accordance with the agreement between the SFMTA and Participating Color Schemes. [end addition]
APPROVED AS TO FORM:
DENNIS J. HERRERA, City Attorney
By:
Mariam Morley
Deputy City Attorney
I certify that the foregoing resolution was adopted by the San Francisco Municipal Transportation Agency Board of Directors at its meeting of .
Secretary to the Board of Directors
San Francisco Municipal Transportation Agency