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HomeMy WebLinkAbout2016-020 Uber and Other Transportation Network Companies Regulations; YMC Adding Ch. 5.79 ORDINANCE NO. 2016 -020 AN ORDINANCE relating to the operation of Uber and other transportation network companies ( "TNCs ") within the City of Yakima and adding a new Chapter 5.79 titled "Transportation Network Companies" to the Yakima Municipal Code. WHEREAS, it has come to the attention of the City that individuals have been operating as drivers for Uber, a for -hire vehicle company that dispatches vehicles through a telephone app, rather than a call -in dispatch service, also known as a transportation network company ( "TNC ") within the City of Yakima; and WHEREAS, said individuals may be operating without regard to the licensing and regulatory requirements of the Yakima Municipal Code that are in place for taxicab drivers; and WHEREAS, allowing residents the opportunity to drive for TNCs may increase job opportunities and income for Yakima residents; and WHEREAS, having an alternative for -hire vehicle option for residents and visitors may decrease the number of impaired drivers; and WHEREAS, the Yakima Municipal Code as it is currently written includes licensing and regulatory requirements that do not properly anticipate the operating realities of TNCs; and WHEREAS, the Public Safety Committee evaluated proposed amendments to the Yakima Municipal Code that would better allow individuals to lawfully operate as TNC drivers, while also holding TNC drivers and taxicab drivers to substantially the same licensing and regulatory requirements; and WHEREAS, the City Council finds and determines that approval of a new chapter of the Yakima Municipal Code to specifically address TNCs is in the best interests of the residents of the City of Yakima and will promote the general health, safety and welfare; now, therefore BE IT ORDAINED BY THE CITY OF YAKIMA: Section 1. A new Chapter 5.79 titled "Transportation Network Company" shall be added to the Yakima Municipal Code to read as follows: 5.79.010 License required. A. It is a violation of this chapter for any TNC to operate in the city of Yakima without a current and valid Yakima business license. B. It is a violation of this chapter for any TNC driver, who is an independent contractor affiliated with a TNC, to operate in the city of Yakima without a current and valid Yakima business registration. 1 5.79.020 Definitions. A. "Transportation Network Company" or "TNC" means an entity that uses a digital network to connect passengers to TNC drivers who use personal vehicles to transport passengers for compensation between geographical points chosen by the passenger. B. "Digital network" means an Internet - enabled platform or application used to connect passengers with TNC drivers. C. "TNC driver" means an individual who uses a personal vehicle to provide transportation services arranged through a TNC's digital network. D. "TNC vehicle" means a personal vehicle used by a TNC driver to provide transportation services arranged through a TNC's digital network. E. "Operate a TNC in the City of Yakima" means a TNC uses its digital network to connect a TNC driver to a passenger for a trip originating in the City of Yakima. F. "Operate as a TNC driver in the City of Yakima" means a TNC driver accepts a trip request over a TNC's digital network that originates in the City of Yakima. G. "Person" means any natural person of either sex, firms, corporations, partnerships and associations either acting by themselves or by servant, agent or employee. The singular shall include the plural and the masculine pronoun shall include the feminine and neuter. H. "Administration" means the Office of Code Administration for the City of Yakima. 5.79.030 TNC license required. A. It is a violation of this chapter for any TNC to operate in the City of Yakima without a current and valid City of Yakima TNC license. B. Administration may issue a TNC license provided that the TNC applicant submits an affidavit sworn under penalty of perjury, on a form provided by Administration, that to the best of the applicant's knowledge, formed after a diligent inquiry into the facts, the TNC is in full compliance with this chapter, including, but not limited to, all driver, vehicle, insurance, and operational requirements. C. The TNC license shall be effective for one year. D. The annual TNC license fee shall be $1,000 and shall be paid in full at the time of submitting all initial and renewal applications. 5.79.040 TNC driver requirements. A. TNC drivers shall certify under the penalty of perjury that they have no known physical or mental infirmity which jeopardizes their ability to safely operate as a TNC driver transporting the public. 2 B. TNC drivers shall be at least twenty -one (21) years of age. C. TNC drivers shall possess a valid Washington State driver's license and shall have been continuously licensed as a driver by the State of Washington and /or another state for at least three (3) years immediately prior to operating as a TNC driver in Yakima. A home state Driver's License with active Military ID or Student ID with proof of full -time enrollment and nonresident status may be an acceptable alternative, subject to review and approval. D. TNC drivers shall certify that they have insurance that meets the minimum liability requirements for the State of Washington, including insurance coverage for use of the vehicle for transportation of passenger for -hire as required by RCW Chapter 48.177 as enacted or subsequently amended. E. TNC drivers shall not have been convicted or found to have committed either: 1) any one infraction for negligent driving or 2) three or more moving violations during any twelve (12) month period during the three (3) years prior to operating as a TNC driver in Yakima. F. TNC drivers shall possess proof of motor vehicle registration and proof of current in -state automobile liability insurance. The TNC shall certify that all drivers have insurance that meets the requirements of this chapter, including insurance coverage for use of the vehicle for transportation of passengers for -hire as required by RCW Chapter 48.177 as enacted or subsequently amended. 5.79.050 TNC requirements. A. The TNC or its agent shall maintain accurate and up -to -date records for all TNC drivers accessing its digital network to provide TNC services in the City of Yakima. Said records shall include the driver's name, age, address, social security number, criminal history, driver's license, motor vehicle registration, vehicle safety inspection records, and proof of at least the minimum automobile liability insurance coverage required by the State of Washington, including insurance for use of the vehicle for transportation of passengers for -hire as required by RCW Chapter 48.177 as enacted or subsequently amended. B. Prior to permitting a person to act as a TNC driver on its digital network, and annually thereafter, the TNC shall obtain and review a criminal background check report for such person. The criminal background check shall include a search of no less than seven (7) years of database history, unless prohibited by law, in which case the duration of the search shall be the maximum number of years permitted by law. The criminal background check shall include local, state, and national criminal history databases and national and state sex offender registries. Any person who is on a sex offender registry, is considered a habitual traffic offender under RCW 46.65, or who has a criminal conviction, within the past seven (7) years, of crimes involving driving under the influence of alcohol or controlled substances, felony fraud, sexual offenses, felony property damage or theft, acts of violence, acts of harassment or stalking, reckless driving or negligent driving, or use of a motor vehicle to commit a felony, shall not be permitted to act as a TNC driver on the TNC's digital network. The TNC or its agents shall maintain records of such criminal background checks for a period of two (2) years. For purposes of this section, the term "criminal conviction" includes a "conviction or other disposition adverse to the subject" as defined under RCW 10.97.030, and bail forfeitures. 3 C. The TNC shall only permit an individual to act as a TNC driver on its digital network if it finds that the standards set forth in this section and section 5.79.040 are met by such individual. The TNC shall revoke a driver's authority to act as a TNC driver on its digital network if the standards set forth in this section and section 5.79.040 are not met. 5.79.060 Vehicle inspection and maintenance. A. TNC vehicles operating in the City of Yakima shall be no more than ten (10) years old. B. The TNC shall inspect or cause to be inspected annually and every year thereafter, every motor vehicle used by a TNC driver before allowing the driver to use the motor vehicle to provide transportation services. Such inspection shall be performed by an ASE certified mechanic. C. The inspection required in subsection B must include, without limitation, an inspection of the foot and emergency brakes, steering, windshield, rear window, other glass, windshield wipers, headlights, tail lights, turn indicator lights, braking lights, front seat adjustment mechanism, doors, horn, speedometer, bumpers, steering system, muffler, exhaust, tires, rear view mirrors, and safety belts. The inspection must ensure that all of the components listed are in proper functioning order. D. The TNC shall maintain vehicle safety inspection records for a minimum of three (3) years. 5.79.070 Insurance requirements. A. The TNC and TNC driver shall comply with the automobile liability insurance requirements set forth in this chapter and as contained in Washington Laws of 2015, Chapter 236, Sections 1 and 2, as enacted or subsequently amended. 5.79.080 Registered agent requirement. The TNC shall maintain a registered agent for service of process in the state of Washington. The name, telephone number, and physical address of the registered agent shall be submitted to the City of Yakima at the time of license application. The TNC shall notify the City of Yakima in writing of any changes to its registered agent during the term of the license. 5.79.090 Audit. A. No more than twice per license year, Administration may audit the TNC's records to review compliance with this chapter. Each audit shall be limited to all relevant records required by this chapter relating to no more than twenty randomly selected TNC drivers operating in the City of Yakima. In the event the audit reveals discrepancies in the records reviewed, Administration reserves the right to audit all of the TNC's records related to TNC drivers operating in the City of Yakima. B. The audit shall occur at City Hall, 129 North Second Street, Yakima, WA 98901; provided that the City may in its discretion agree to an alternative location. C. Notwithstanding the foregoing, the City may require the TNC to produce records at any time to investigate a specific complaint regarding compliance with this chapter. 4 5.79.100 Operational requirements. A. TNC drivers shall accept only rides arranged through a TNC's digital network and shall not solicit or accept street hails. B. The TNC's software application or website shall display for the passenger the first name and photograph of the TNC driver as well as the make, model, and license plate number of the TNC vehicle. C. The TNC's software application or website shall display for the passenger the applicable rates being charged and the option to receive an estimated fare before the passenger enters the TNC vehicle. D. The TNC shall implement a zero tolerance policy on the use of drugs or alcohol applicable to any TNC driver on its digital network. The TNC shall provide notice of the zero tolerance policy on its website, as well as the procedures to report a complaint about a driver with whom the passenger was matched and for whom the passenger reasonably suspects was under the influence of drugs or alcohol during the course of the ride. The TNC shall immediately suspend a driver upon receipt of a passenger complaint alleging a violation of the zero tolerance policy. The suspension shall last the duration of the investigation. E. A TNC driver shall not operate as a TNC driver in the City of Yakima unless his or her TNC vehicle equipment, including, but not limited to lights, brakes, tires, steering, seat belts, are in proper working order, and only when the TNC vehicle has a seatbelt for each passenger and is in a sanitary and safe condition for the transportation of passengers. F. No TNC driver shall allow any nonpaying passenger, except a nonpaying child /passenger accompanied by an adult paying passenger, to ride in a TNC vehicle occupied by any paying passenger, or to pick up any additional passenger, or passengers in a TNC vehicle occupied by a paying passenger without the express consent of the original passenger. G. No TNC driver shall allow any third -party to operate his or her TNC vehicle while the TNC driver is logged into the network of his or her affiliated TNC. H. No TNC driver shall discriminate against passengers or potential passengers on the basis of race, color, national origin or ancestry, religious belief or affiliation, sex, disability, age, sexual orientation, marital status, gender identity, familial status or honorably discharged veteran or military service. 5.79.110 Revocation, suspension, or denial of TNC license. A. A TNC license may be revoked or suspended by the City Manager for any of the following reasons: 1. Failure to meet or maintain any of the requirements or qualifications set forth in this chapter for obtaining a TNC license. 5 2. A materially false statement contained in the application for the license. 3. Any violation of this chapter. Any applicant who feels aggrieved by the revocation or suspension of a license by the City Manager may appeal that revocation to the city council by serving on the Yakima City Clerk a notice of such appeal within five business days of the date of the revocation from which the appeal is taken, which notice shall be in writing and shall specify all the grounds relied upon by the appellant as reasons for the reissuance of the license which was revoked or suspended. After the timely filing of such a notice, the city clerk shall set a time and place for a hearing thereon by the city council, after which hearing the city council shall make a final determination on the matter. The city council may add conditions if the final determination is to reissue the license. B. A TNC license may be denied for any of the following reasons: 1. Failure to meet or maintain any of the requirements or qualifications set forth in this chapter for obtaining a TNC license. 2. A materially false statement contained in the application for the license. 3. Any violation of this chapter. 4. Any failure to provide requested information to evaluate a license or failure to provide documents pursuant to the Audit provisions of the Chapter. Any applicant who feels aggrieved by the denial of a license by the Administration may appeal that denial to the city council by serving on the Yakima City Clerk a notice of such appeal within five business days of the date of the denial from which the appeal is taken, which notice shall be in writing and shall specify all the grounds relied upon by the appellant as reasons for the issuance of the license which was denied. After the timely filing of such a notice, the city clerk shall set a time and place for a hearing thereon by the city council, after which hearing the city council shall make a final determination on the matter. The city council may add conditions if the final determination is to issue the license. C. Any decision of the city council made under subsections (A) or (B) of this section may be appealed to the Yakima County Superior Court within twenty (20) calendar days of the city council's final decision. 5.79.120 TNC driver reporting requirements. Every TNC driver shall report to the Administration and his or her affiliated TNC within forty -eight (48) hours, the occurrence of any of the following: A. Any arrest, charge or conviction of the TNC driver for any criminal offense, or commitment of a criminal law violation that occurs during, or arises out of the TNC driver's operation of the TNC vehicle. B. Any arrest, charge or conviction of any offense listed in Section 5.79.050. C. Any vehicle accident required to be reported to the State of Washington that occurs while the TNC driver is operating as a TNC driver in the City of Yakima. 6 D. Any restriction, suspension or revocation of the TNC driver's license to drive, insurance, or registration of the vehicle. E. Any changes in health or medical condition of the TNC driver that might cause the TNC driver to be unfit for the safe operation of any TNC vehicle. 5.79.130 Enforcement Administration shall have the administrative authority to implement and enforce this ordinance. Administration may adopt rules and regulations for its administration, not inconsistent with this chapter. This provision shall not be construed to abrogate or limit the jurisdiction of the Yakima Police Department to enforce any provisions of this chapter or of any other state law or city ordinance relating to motor vehicles or the operation of taxicabs or TNC vehicles. 5.79.140 Penalties. Any person violating any of the provisions of this chapter shall be guilty of a misdemeanor and upon conviction shall be punished by a fine not to exceed $1,000 or imprisonment not to exceed 90 days, or both such fine and imprisonment. Each day upon which such violation shall occur, or upon which such violation shall continue, shall constitute a separate offense. 5.79.150 Severability. If any section, subsection, subdivision, sentence, clause or phrase of this chapter is for any reason held to be unconstitutional or void, then such decision shall not affect the validity of the remaining portions of this chapter. Section 2. Effective Date. This ordinance shall be in full force and effect 30 days after its passage, approval, and publication as provided by law and by the City Charter. PASSED BY THE CITY COUNCIL, signed and approved this 1St day of November, 2016. 4110 ATTEST: _ � Ka • Coffey, Mayor.', YA /44 \\1 9 t Mti, ■ Sonya Oar Tee, City Cler % :: 4 \ Ii /N i C>- Publication Date: November 4, 201 •� Effective Date: December 4, 2016 7 BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. 9. For Meeting of: November 1, 2016 ITEM TITLE: Ordinance adding Chapter 5.79 relating to Transportation Network Companies and Amendments to Chapter 5.78: Taxicabs SUBMITTED BY: Ryan Bleek, Assistant City Attorney Sara Watkins, Senior Assistant City Attorney SUMMARY EXPLANATION: As requested by the City Council at its October 18, 2016 meeting, attached please find a proposal for a new Chapter to the Yakima Municipal Code that regulates "Transportation Network Companies (TNC)," which includes business such as Uber and Lyft. A previous version of this ordinance was drafted and sent to Jonathan Hopkins of Uber for comment. His comments were considered and the ordinance was revised for the November 1, 2016 meeting. The TNC ordinance requires, in part, the state - mandated insurance amounts for TNCs, background checks, vehicle inspections and allows the City to audit TNC's records. Staff also provides proposed amendments to the Taxicab ordinance, Chapter 5.78. On October 25, 2016 staff met with the taxicab companies and discussed possible changes to the taxicab regulations that would be similar to the proposed TNC regulations. At that meeting, the taxicab companies indicated that they did not want to change Chapter 5.78 (such as removal of the requirement for each driver to have a City driver's license to drive a taxicab) based in part on their business model. Staff made the decision to separate the two business types into their own chapters of the municipal code as a result of the conversations and meetings that were held with the taxicab companies and the Uber representative. Some minor amendments are proposed for the taxicab ordinance which would allow them to conduct their own background checks through an approved third party vendor and vehicle inspections through a certified mechanic (with the ability for the City to audit the company's records in the event the checks and inspections are done). These items are consistent with the TNC ordinance. The definition section was also changed to make clear that a TNC vehicle would not fall under the taxicab section. ITEM BUDGETED: NA STRATEGIC PRIORITY: Public Safety APPROVED FOR City Manager SUBMITTAL: STAFF RECOMMENDATION: Pass ordinance. BOARD /COMMITTEE RECOMMENDATION: The public safety committee recommended sending a previous version of the ordinance to the full Council for review. ATTACHMENTS: Description Upload Date Type Ordinance - Taxicabs & Vehicles for Hire -Ch 5.78 10/26/2016 Ordinance Amended -FINAL Ordinance - Taxicabs & Vehicles for Hire -Ch 5.78 10/26/2016 Ordinance Amended - Redline ❑ UBER -TNC Ordinance - Adding Ch. 5.79 -FINAL 10/26/2016 Ordinance ORDINANCE NO. 2016 - AN ORDINANCE relating to the operation of Uber and other transportation network companies ( "TNCs ") within the City of Yakima and adding a new Chapter 5.79 titled "Transportation Network Companies" to the Yakima Municipal Code. WHEREAS, it has come to the attention of the City that individuals have been operating as drivers for Uber, a for -hire vehicle company that dispatches vehicles through a telephone app, rather than a call -in dispatch service, also known as a transportation network company ( "TNC ") within the City of Yakima; and WHEREAS, said individuals may be operating without regard to the licensing and regulatory requirements of the Yakima Municipal Code that are in place for taxicab drivers; and WHEREAS, allowing residents the opportunity to drive for TNCs may increase job opportunities and income for Yakima residents; and WHEREAS, having an alternative for -hire vehicle option for residents and visitors may decrease the number of impaired drivers; and WHEREAS, the Yakima Municipal Code as it is currently written includes licensing and regulatory requirements that do not properly anticipate the operating realities of TNCs; and WHEREAS, the Public Safety Committee evaluated proposed amendments to the Yakima Municipal Code that would better allow individuals to lawfully operate as TNC drivers, while also holding TNC drivers and taxicab drivers to substantially the same licensing and regulatory requirements; and WHEREAS, the City Council finds and determines that approval of a new chapter of the Yakima Municipal Code to specifically address TNCs is in the best interests of the residents of the City of Yakima and will promote the general health, safety and welfare; now, therefore BE IT ORDAINED BY THE CITY OF YAKIMA: Section 1. A new Chapter 5.79 titled "Transportation Network Company" shall be added to the Yakima Municipal Code to read as follows: 5.79.010 License required. A. It is a violation of this chapter for any TNC to operate in the city of Yakima without a current and valid Yakima business license. B. It is a violation of this chapter for any TNC driver, who is an independent contractor affiliated with a TNC, to operate in the city of Yakima without a current and valid Yakima business registration. 5.79.020 Definitions. 1 A. "Transportation Network Company" or "TNC" means an entity that uses a digital network to connect passengers to TNC drivers who use personal vehicles to transport passengers for compensation between geographical points chosen by the passenger. B. "Digital network" means an Internet - enabled platform or application used to connect passengers with TNC drivers. C. "TNC driver" means an individual who uses a personal vehicle to provide transportation services arranged through a TNC's digital network. D. "TNC vehicle" means a personal vehicle used by a TNC driver to provide transportation services arranged through a TNC's digital network. E. "Operate a TNC in the City of Yakima" means a TNC uses its digital network to connect a TNC driver to a passenger for a trip originating in the City of Yakima. F. "Operate as a TNC driver in the City of Yakima" means a TNC driver accepts a trip request over a TNC's digital network that originates in the City of Yakima. G. "Person" means any natural person of either sex, firms, corporations, partnerships and associations either acting by themselves or by servant, agent or employee. The singular shall include the plural and the masculine pronoun shall include the feminine and neuter. H. "Administration" means the Office of Code Administration for the City of Yakima. 5.79.030 TNC license required. A. It is a violation of this chapter for any TNC to operate in the City of Yakima without a current and valid City of Yakima TNC license. B. Administration may issue a TNC license provided that the TNC applicant submits an affidavit sworn under penalty of perjury, on a form provided by Administration, that to the best of the applicant's knowledge, formed after a diligent inquiry into the facts, the TNC is in full compliance with this chapter, including, but not limited to, all driver, vehicle, insurance, and operational requirements. C. The TNC license shall be effective for one year. D. The annual TNC license fee shall be $1,000 and shall be paid in full at the time of submitting all initial and renewal applications. 5.79.040 TNC driver requirements. A. TNC drivers shall certify under the penalty of perjury that they have no known physical or mental infirmity which jeopardizes their ability to safely operate as a TNC driver transporting the public. B. TNC drivers shall be at least twenty -one (21) years of age. 2 C. TNC drivers shall possess a valid Washington State driver's license and shall have been continuously licensed as a driver by the State of Washington and /or another state for at least three (3) years immediately prior to operating as a TNC driver in Yakima. A home state Driver's License with active Military ID or Student ID with proof of full -time enrollment and nonresident status may be an acceptable alternative, subject to review and approval. D. TNC drivers shall certify that they have insurance that meets the minimum liability requirements for the State of Washington, including insurance coverage for use of the vehicle for transportation of passenger for -hire as required by RCW Chapter 48.177 as enacted or subsequently amended. E. TNC drivers shall not have been convicted or found to have committed either: 1) any one infraction for negligent driving or 2) three or more moving violations during any twelve (12) month period during the three (3) years prior to operating as a TNC driver in Yakima. F. TNC drivers shall possess proof of motor vehicle registration and proof of current in- state automobile liability insurance. The TNC shall certify that all drivers have insurance that meets the requirements of this chapter, including insurance coverage for use of the vehicle for transportation of passengers for -hire as required by RCW Chapter 48.177 as enacted or subsequently amended. 5.79.050 TNC requirements. A. The TNC or its agent shall maintain accurate and up -to -date records for all TNC drivers accessing its digital network to provide TNC services in the City of Yakima. Said records shall include the driver's name, age, address, social security number, criminal history, driver's license, motor vehicle registration, vehicle safety inspection records, and proof of at least the minimum automobile liability insurance coverage required by the State of Washington, including insurance for use of the vehicle for transportation of passengers for -hire as required by RCW Chapter 48.177 as enacted or subsequently amended. B. Prior to permitting a person to act as a TNC driver on its digital network, and annually thereafter, the TNC shall obtain and review a criminal background check report for such person. The criminal background check shall include a search of no less than seven (7) years of database history, unless prohibited by law, in which case the duration of the search shall be the maximum number of years permitted by law. The criminal background check shall include local, state, and national criminal history databases and national and state sex offender registries. Any person who is on a sex offender registry, is considered a habitual traffic offender under RCW 46.65, or who has a criminal conviction, within the past seven (7) years, of crimes involving driving under the influence of alcohol or controlled substances, felony fraud, sexual offenses, felony property damage or theft, acts of violence, acts of harassment or stalking, reckless driving or negligent driving, or use of a motor vehicle to commit a felony, shall not be permitted to act as a TNC driver on the TNC's digital network. The TNC or its agents shall maintain records of such criminal background checks for a period of two (2) years. For purposes of this section, the term "criminal conviction" includes a "conviction or other disposition adverse to the subject" as defined under RCW 10.97.030, and bail forfeitures. C. The TNC shall only permit an individual to act as a TNC driver on its digital network if it finds that the standards set forth in this section and section 5.79.040 are met by such individual. 3 The TNC shall revoke a driver's authority to act as a TNC driver on its digital network if the standards set forth in this section and section 5.79.040 are not met. 5.79.060 Vehicle inspection and maintenance. A. TNC vehicles operating in the City of Yakima shall be no more than ten (10) years old. B. The TNC shall inspect or cause to be inspected annually and every year thereafter, every motor vehicle used by a TNC driver before allowing the driver to use the motor vehicle to provide transportation services. Such inspection shall be performed by an ASE certified mechanic. C. The inspection required in subsection B must include, without limitation, an inspection of the foot and emergency brakes, steering, windshield, rear window, other glass, windshield wipers, headlights, tail lights, turn indicator lights, braking lights, front seat adjustment mechanism, doors, horn, speedometer, bumpers, steering system, muffler, exhaust, tires, rear view mirrors, and safety belts. The inspection must ensure that all of the components listed are in proper functioning order. D. The TNC shall maintain vehicle safety inspection records for a minimum of three (3) years. 5.79.070 Insurance requirements. A. The TNC and TNC driver shall comply with the automobile liability insurance requirements set forth in this chapter and as contained in Washington Laws of 2015, Chapter 236, Sections 1 and 2, as enacted or subsequently amended. 5.79.080 Registered agent requirement. The TNC shall maintain a registered agent for service of process in the state of Washington. The name, telephone number, and physical address of the registered agent shall be submitted to the City of Yakima at the time of license application. The TNC shall notify the City of Yakima in writing of any changes to its registered agent during the term of the license. 5.79.090 Audit. A. No more than twice per license year, Administration may audit the TNC's records to review compliance with this chapter. Each audit shall be limited to all relevant records required by this chapter relating to no more than twenty randomly selected TNC drivers operating in the City of Yakima. In the event the audit reveals discrepancies in the records reviewed, Administration reserves the right to audit all of the TNC's records related to TNC drivers operating in the City of Yakima. B. The audit shall occur at City Hall, 129 North Second Street, Yakima, WA 98901; provided that the City may in its discretion agree to an alternative location. C. Notwithstanding the foregoing, the City may require the TNC to produce records at any time to investigate a specific complaint regarding compliance with this chapter. 4 5.79.100 Operational requirements. A. TNC drivers shall accept only rides arranged through a TNC's digital network and shall not solicit or accept street hails. B. The TNC's software application or website shall display for the passenger the first name and photograph of the TNC driver as well as the make, model, and license plate number of the TNC vehicle. C. The TNC's software application or website shall display for the passenger the applicable rates being charged and the option to receive an estimated fare before the passenger enters the TNC vehicle. D. The TNC shall implement a zero tolerance policy on the use of drugs or alcohol applicable to any TNC driver on its digital network. The TNC shall provide notice of the zero tolerance policy on its website, as well as the procedures to report a complaint about a driver with whom the passenger was matched and for whom the passenger reasonably suspects was under the influence of drugs or alcohol during the course of the ride. The TNC shall immediately suspend a driver upon receipt of a passenger complaint alleging a violation of the zero tolerance policy. The suspension shall last the duration of the investigation. E. A TNC driver shall not operate as a TNC driver in the City of Yakima unless his or her TNC vehicle equipment, including, but not limited to lights, brakes, tires, steering, seat belts, are in proper working order, and only when the TNC vehicle has a seatbelt for each passenger and is in a sanitary and safe condition for the transportation of passengers. F. No TNC driver shall allow any nonpaying passenger, except a nonpaying child /passenger accompanied by an adult paying passenger, to ride in a TNC vehicle occupied by any paying passenger, or to pick up any additional passenger, or passengers in a TNC vehicle occupied by a paying passenger without the express consent of the original passenger. G. No TNC driver shall allow any third -party to operate his or her TNC vehicle while the TNC driver is logged into the network of his or her affiliated TNC. H. No TNC driver shall discriminate against passengers or potential passengers on the basis of race, color, national origin or ancestry, religious belief or affiliation, sex, disability, age, sexual orientation, marital status, gender identity, familial status or honorably discharged veteran or military service. 5.79.110 Revocation, suspension, or denial of TNC license. A. A TNC license may be revoked or suspended by the City Manager for any of the following reasons: 1. Failure to meet or maintain any of the requirements or qualifications set forth in this chapter for obtaining a TNC license. 2. A materially false statement contained in the application for the license. 5 3. Any violation of this chapter. Any applicant who feels aggrieved by the revocation or suspension of a license by the City Manager may appeal that revocation to the city council by serving on the Yakima City Clerk a notice of such appeal within five business days of the date of the revocation from which the appeal is taken, which notice shall be in writing and shall specify all the grounds relied upon by the appellant as reasons for the reissuance of the license which was revoked or suspended. After the timely filing of such a notice, the city clerk shall set a time and place for a hearing thereon by the city council, after which hearing the city council shall make a final determination on the matter. The city council may add conditions if the final determination is to reissue the license. B. A TNC license may be denied for any of the following reasons: 1. Failure to meet or maintain any of the requirements or qualifications set forth in this chapter for obtaining a TNC license. 2. A materially false statement contained in the application for the license. 3. Any violation of this chapter. 4. Any failure to provide requested information to evaluate a license or failure to provide documents pursuant to the Audit provisions of the Chapter. Any applicant who feels aggrieved by the denial of a license by the Administration may appeal that denial to the city council by serving on the Yakima City Clerk a notice of such appeal within five business days of the date of the denial from which the appeal is taken, which notice shall be in writing and shall specify all the grounds relied upon by the appellant as reasons for the issuance of the license which was denied. After the timely filing of such a notice, the city clerk shall set a time and place for a hearing thereon by the city council, after which hearing the city council shall make a final determination on the matter. The city council may add conditions if the final determination is to issue the license. C. Any decision of the city council made under subsections (A) or (B) of this section may be appealed to the Yakima County Superior Court within twenty (20) calendar days of the city council's final decision. 5.79.120 TNC driver reporting requirements. Every TNC driver shall report to the Administration and his or her affiliated TNC within forty - eight (48) hours, the occurrence of any of the following: A. Any arrest, charge or conviction of the TNC driver for any criminal offense, or commitment of a criminal law violation that occurs during, or arises out of the TNC driver's operation of the TNC vehicle. B. Any arrest, charge or conviction of any offense listed in Section 5.79.050. C. Any vehicle accident required to be reported to the State of Washington that occurs while the TNC driver is operating as a TNC driver in the City of Yakima. D. Any restriction, suspension or revocation of the TNC driver's license to drive, insurance, or registration of the vehicle. 6 E. Any changes in health or medical condition of the TNC driver that might cause the TNC driver to be unfit for the safe operation of any TNC vehicle. 5.79.130 Enforcement Administration shall have the administrative authority to implement and enforce this ordinance. Administration may adopt rules and regulations for its administration, not inconsistent with this chapter. This provision shall not be construed to abrogate or limit the jurisdiction of the Yakima Police Department to enforce any provisions of this chapter or of any other state law or city ordinance relating to motor vehicles or the operation of taxicabs or TNC vehicles. 5.79.140 Penalties. Any person violating any of the provisions of this chapter shall be guilty of a misdemeanor and upon conviction shall be punished by a fine not to exceed $1,000 or imprisonment not to exceed 90 days, or both such fine and imprisonment. Each day upon which such violation shall occur, or upon which such violation shall continue, shall constitute a separate offense. 5.79.150 Severability. If any section, subsection, subdivision, sentence, clause or phrase of this chapter is for any reason held to be unconstitutional or void, then such decision shall not affect the validity of the remaining portions of this chapter. Section 2. Effective Date. This ordinance shall be in full force and effect 30 days after its passage, approval, and publication as provided by law and by the City Charter. PASSED BY THE CITY COUNCIL, signed and approved this 1S day of November, 2016. ATTEST: Kathy Coffey, Mayor Sonya Claar Tee, City Clerk Publication Date: Effective Date: 7 Distributed at thy Meeting REQUESTED AMMENDMENTS 5.79.040 TNC driver requirements. C. TNC drivers shall possess a valid Washington State driver's license and shall have been continuously licensed as a driver by the State of Washington and /or another state for at least one (1) three - (3) years immediately prior to operating as a TNC driver in Yakima. A home state Driver's License with active Military ID or Student ID with proof of full -time enrollment and nonresident status may be an acceptable alternative, subject to review and approval. • .. .. . F. TNC drivers shall possess proof of motor vehicle registration and proof of current in- state automobile liability insurance. The TNC shall certify that it maintains all insurance coverage for use of the vehicle for transportation of passengers for -hire as required by RCW Chapter 48.177.010 487 as enacted or subsequently amended. 5.79.050 TNC requirements. A. The TNC, or its agent, or its contractor shall maintain accurate and up -to -date records for all TNC drivers accessing its digital network to provide TNC services in the City of Yakima. Said records shall include the driver's name, age, address, social security number, criminal history, driver's license, motor vehicle registration, vehicle safety inspection records, and proof of at least the minimum automobile liability insurance coverage required by the State of Washington, including insurance for use of the vehicle for transportation of passengers for -hire as required by RCW Chapter 48.177.010 118.177 as enacted or subsequently amended. B. Prior to permitting a person to act as a TNC driver on its digital network, and annually thereafter, the TNC shall conduct, or have a third party conduct, a criminal background check report for such person. The criminal background check shall include a search of no less than seven (7) years of database history, unless prohibited by law, in which case the duration of the search shall be the maximum number of years permitted by law. The criminal background check shall include multi- state /multi - jurisdiction criminal records locator or other similar commercial nationwide database with validation , and and the U.S. Department of Justice National Sex Offender Public Website • - . • . - - - - - - - - - ." -. Any person who is on a match in the U.S. Department of Justice National Sex Offender Public Website puicfy- - - - - - - - - "'e" - - - , is considered a habitual traffic offender under RCW 46.65, or who has a criminal conviction, within the past seven (7) years, of crimes involving driving under the influence of alcohol or controlled substances, felony fraud, sexual offenses, felony property damage or theft, battery or assault, acts reckless driving or or use of a motor vehicle to commit a felony, shall not be permitted to act as a TNC driver on the TNC's digital network. The TNC or its agents shall maintain records of such criminal background checks for a period of two (2) years. For purposes of this section, the term "criminal conviction" includes a "conviction or other disposition adverse to the subject" as defined under RCW 10.97.030 , and bail forfeitures. 5.79.060 Vehicle inspection and maintenance. A. TNC vehicles operating in the City of Yakima shall be no more than ten (10) fifteen (15) years old. 5.79.070 Insurance requirements. A. The TNC and TNC driver shall comply with the automobile liability insurance requirements set forth in this chapter and as contained in RCW Chapter 48.177.010 - • - - - - - - - - - e , as enacted or subsequently amended. 5.79.090 Audit. C. Notwithstanding the foregoing, the City may require the TNC to produce records at any time directly related to an active investigation to investigate a specific allegation of a violation regarding compliance with this chapter