1613 DISTRICT OF COLUMBIA TAXICAB INDUSTRY CO-OP

1613.1 The Co-Op shall be an industry-owned cooperative association, chartered to promote the use of all available DCTC-licensed taxicabs, including wheelchair accessible vehicles, by the residents of and visitors to the District.1613.2 The Co-op shall provide all necessary service and support for the DC TaxiApp in the manner prescribed by this section, § 1612, and any license agreement with the District.1613.3 The Co-op shall be owned and operated for the mutual benefit of its members, including independent owners, taxicab companies, taxicab associations, and taxicab operators.1613.4 Each taxicab company required by D.C. Official Code § 50-329.02 to provide dispatch services shall be a charter member of the Co-op, and shall remain a member of the Co-op. Each taxicab company or association with between twenty (20) and ninety nine (99) vehicles, each independent owner, and each taxicab operator may be, but shall not be required to be, a member of the Co-op.1613.5 Each member of the Co-op shall provide a capital contribution based on the number of vehicles it owns or with which it is associated.1613.6 Within fourteen (14) days after the effective date of this section, the charter members shall select three (3) individuals to act as incorporators for the purpose of establishing the Co-op.1613.7 Within thirty (30) days after the effective date of this section, the charter members shall cause the incorporators to file with the Office proposed bylaws and other documents to establish the Co-op in compliance with District regulations and laws applicable to the incorporation of a domestic cooperative association, which shall include terms and conditions in the bylaws for the Co-op to:- (a) Maintain a physical place of business in the District;

- (b) Establish and maintain a digital dispatch service to be operated in compliance with this title and other applicable laws, which makes the DC TaxiApp available to all taxicab owners and operators;

- (c) Not give preferential treatment to any person or group of persons regulated by this title or other applicable law, including any member of the Co-op or other person, in its operations; in the marketing, availability, or functionality of the DC TaxiApp; or in the rates and charges which the Co-op sets for trips booked through the DC TaxiApp;

1. (d) Execute any necessary license agreement for the use of the DC TaxiApp, and comply with all terms and conditions thereof;
2. (e) Establish, maintain, and publicize competitive, market-based rates and charges for trips booked through the DC TaxiApp, including such fees as necessary to support the operations of the Co-op;
3. (f) Develop, distribute, and require the acceptance of terms of service between the Co-op and vehicle owners and operators, and between the Co-op and passengers, including a distribution agreement with vehicle owners concerning the revenue generated through the use of the DC TaxiApp;
4. (g) Market the DC TaxiApp to encourage its use by all passengers seeking service from a DCTC-licensed taxicab;
5. (h) Maintain a fair, reasonable, and non-discriminatory system which allows the passenger to rate the operator based on the quality of service received;
6. (i) Promote the availability of wheelchair accessible taxicab service, and use incentives to owners and operators;
7. (j) Carry such commercial insurance as necessary in connection with the use of the DC TaxiApp;
8. (k) Maintain its business records for five (5) years;
9. (l) Comply with all applicable provisions of this title for enforcement and compliance to the same extent as if the Co-op were a taxicab company or association, including, where appropriate, filing a public complaint with the Office against any person in connection with a violation of this section or § 1612;
10. (m) Establish rules and standards for its operations, including rules and standards for the safe and prompt provision of service through the DC TaxiApp;
11. (n) Apply for any necessary grants made available by the Office, and comply with all terms and conditions thereof;
12. (o) Engage in any activity authorized by law, not inconsistent with its bylaws, and in the interest of its members, including:
13. (1) Offering insurance, such as life, health, dental, disability, and

vehicle;

(2) Providing retirement and savings plans, and other benefits; and

(3) Offering discounts on goods and services of interest to members;

(p) Conduct its business to ensure that no person is required to act in a manner contrary to an obligation imposed by this title or other applicable law;

(q) Comply with all applicable District and federal laws and regulations, and engage only in fair and lawful competition;

(r) Not make any change in its bylaws which conflicts with the Office's approval pursuant to § 1613.8, or with any provision of this title or other applicable law; and

(s) Provide that the District shall have standing to enforce the requirements of this section and § 1612 through an appropriate action at law or in equity in the District of Columbia Courts.

1613.8 The Office shall review the documents filed pursuant to § 1613.7 for purposes of ensuring compliance with this section, § 1612, and other provisions of this title and other applicable laws. The Office shall issue a written decision within ten (10) days. If the Office does not approve the filing, it shall state the basis of its decision in detail. The documents shall be modified and re-filed consistent with the Office's direction within fourteen (14) days. Each charter member shall have standing to appeal the Office's decision to deny approval to the Chief of the Office, whose decision may be further appealed to the Commission. A decision of the Commission shall be a final agency decision.

1613.9 Within thirty (30) days after the approval required by §§ 1613.8, the charter members shall cause the incorporators to:

(a) Conclude the legal establishment of the Co-op and its digital dispatch service under this title and other applicable laws;

(b) Obtain a physical place of business for the Co-op within the District; and

(c) Schedule a meeting to be held within thirty (30) to sixty (60) days following the issuance of public notice to all prospective members of the Co-op, to:

(1) Elect a board of directors;

(2) Approve the Co-op's bylaws; and

(3) Engage in such other business as necessary to begin full daily operation of the Co-op and use of the DC TaxiApp by all taxicab owners and operators not later than the implementation date.

1613.10 During the first twenty four (24) months after the effective date of this section, the Office may make one or more grants to the charter members or to the Co-op in an amount not to exceed twenty five thousand dollars ($25,000), to defray the documented expenses to establish or operate the Co-op pursuant to the provisions of this section, § 1612, and other applicable laws, upon such terms and conditions as may be contained in the grant. Each grant shall be made pursuant to all applicable laws, regulations, and guidelines, and any administrative issuance of the Office.

1613.11 The Office shall acquire or develop the DC TaxiApp, which shall remain the intellectual property of the District of Columbia. The DC TaxiApp shall be made available by license to the Co-op for its exclusive use in a manner consistent with this section, § 1612, and all applicable laws.

1613.12 The Office shall not undertake any enforcement action against a person based upon a violation of a Co-op rule or standard.

1613.13 (b) Establish and maintain a digital dispatch service, registered and operated in compliance with this chapter, which at all times, maintains integration between the DC TaxiApp and each PSP in a manner consistent with § 408.16, to ensure that:

(1) Each passenger who books a ride through the DC TaxiApp may choose to make either an in-vehicle payment (cash or payment card) or a digital payment;

(2) The passenger surcharge is collected from the passenger and paid to the District for each trip; and

(3) The PSP is able to comply with all obligations under Chapters 4 and 6.

SOURCE: Final Rulemaking published at 62 DCR 147 (January 2, 2015); as amended by Final Rulemaking published at 62 DCR 8061 (June 5, 2015).