Senate Bill 1492 and House Bill 2171

On June 30, 2016, Senate Bill 1492 and House Bill 2171, which modify taxi, limousine and livery vehicle service regulations, will become effective. In accordance with the new laws, the vehicle for hire program and permitting process will change significantly.

Senate Bill 1492 and House Bill 2171 contain the following provisions:

• Replaces the definition of commercial device license with vehicle for hire permit;
• Requires Vehicle for Hire companies to hold a 3-year vehicle for hire permit issued by ADOT in order to operate in this state;
• Requires each vehicle used by a Vehicle for Hire company to have a copy of the permit;
• Caps the taxi meter fee at $1,000 over three years for each Vehicle for Hire company operating taxis;
• Mandates a taxi or livery vehicle to display a readily visible interior sign, in print or electronic format, or on a digital network or software application that contains the following information:
  • the permittee’s business name and address;
  • an accurate representation of all fares and the fare computation method;
  • the driver’s name;
• Requires a taxi to display at minimum a readily visible exterior trade dress (§28-9551) that must contain the word taxi or cab;
• Increases civil penalties for violations;
• Eliminates the Vehicle for Hire decal;
• Repeals taxi plate issuance;
• Prohibits a city, town or other taxing jurisdiction from levying a transaction privilege tax, (including a sales, use, franchise or other similar tax) or fee on gross proceeds of sales or gross income from the following:
  • any amount attributable to fees collected by TNCs issued a permit;
  • transporting for hire persons by TNC drivers on transactions involving transportation network services (TNS);
  • transporting for hire persons by vehicle for hire companies that are issued a permit; or
  • transporting for hire persons by vehicle for hire drivers on transactions involving vehicle for hire services;
• Requires the company to maintain an agent for service of process in this state; and,
• Removes street hailing from Transportation Network Companies.  

You can view these new laws online at: House Bill 2171 and Senate Bill 1492

The ADOT Vehicle for Hire Program is working to implement this legislation by the June 30, 2016 effective date.  Please look for additional communications and webpage updates in the near future.