DIVISION 2. - GROUND TRANSPORTATION SERVICE OPERATING AUTHORITY

A person shall not knowingly operate, allow to be operated, or cause to be operated, a ground transportation service as defined in section 33-003, or any other service providing ground transportation for hire, without first executing a standard city permit agreement with the city and receiving an operating permit pursuant thereto, nor shall a person transport a passenger for hire from within the city unless the person driving the vehicle for hire or another who employs or contracts with said driver has been granted such operating permit.

(b)

No person shall knowingly represent a vehicle as a vehicle for hire nor use or offer the use of such vehicle in a ground transportation service unless the vehicle being so represented, used, or offered for use has been permitted as a vehicle for hire pursuant to the provisions of this chapter.

(c)

A person commits an offense if he violates subsection (a) or subsection (b) of this section. A separate offense is committed each day during which an offense occurs. An offense committed under said subsections is punishable by a fine of not more than five hundred dollars ($500.00). Prosecution for an offense under subsection (a) does not prevent the use of the enforcement remedies provided in section 33-074 of this chapter.

(d)

No holder of an operating permit issued under this chapter shall operate a ground transportation service, other than for the type of service for which an operating permit has been granted.

(e)

Before an operating permit is granted, a written application for such on a form provided for that purpose must be submitted to and approved by the director in accordance with the provisions of this chapter.

(Ord. No. 82938, § 1, 9-28-95)

Sec. 33-007. - Application.

To obtain an operating permit, a person shall submit an application to the transportation manager in the manner prescribed by this section. The applicant must be the person who will own and/or operate the proposed ground transportation service or if an association, the chief officer. An applicant shall file with the transportation manager a written application containing the following:

(a)

The form of business of the applicant; if the business is a corporation or association, a copy of the documents establishing the business and the name, address and citizenship of each person with a direct interest in the business; notice of any change in an applicant's form of business shall be provided to the department director, within ten (10) business days of the change;

(b)

The name, street address, phone number and verified signature of the applicant and of the applicant's proposed business; an applicant shall notify the transportation manager, in writing, of any change in the foregoing within ten (10) business days of the change;

(c)

A representation of whether the applicant is a citizen of the United States of America by birth or naturalization, or, if alien, evidence of the applicant's legal residence in the United States and of the applicant's legal right to engage in employment therein;

(d)

An actual or proforma income statement and balance sheet showing the assets, liabilities and equity of the business.

(e)

A description of any past business experience of the applicant, particularly in providing ground transportation services;

(1)

A projection of actual or estimated annual income and expenses for the preceding calendar and/or fiscal year;

(2)

Credit record issued no later than ninety (90) days from the date of application;

(3)

Letters from two (2) credit references, including at least one bank or financial institution where the applicant has maintained an active account for at least one year or the longest time for which the applicant has maintained an active account in a financial institution if less than one (1) year.

(f)

An identification and description of any revocation or suspension of an operating permit held by the applicant or the applicant's business which occurred prior to the date of filing the application.

(g)

The number of vehicles to be used by the applicant in the operation of the proposed ground transportation service as well as documentation evidencing each vehicle's ownership, identification number and registration; notice of any change in the foregoing shall be provided to the transportation manager, in writing and with supporting documentation as required by the department director, within five (5) business days of the change;

(h)

A description of each of the vehicles the applicant proposes to use in providing ground transportation services including, but not limited to, each vehicle's year, make, model, type, and seating capacity;

(i)

A description of the operations of the proposed ground transportation service and the location of the fixed facilities to be used in the operation;

(j)

A management plan including:

(1)

A maintenance plan which the applicant shall utilize for the upkeep and replacement of vehicles to be permitted. Such plan may include a maintenance contract with an outside contractor; and

(2)

A procedure outlining the handling of complaints;

(k)

A description of the proposed insignia and color scheme for the applicant's vehicles and a description of the distinctive item of apparel to be worn by the applicant's drivers;

(l)

Documentation from an insurance company authorized by this chapter evidencing a willingness to provide, prior to commencement of the proposed service, the insurances required by this chapter;

(m)

Documentation evidencing timely payment of all city, state, and federal taxes, fees and assessments which have been levied on the business and/or property to be used in connection with the proposed service;

(n)

Written documentation authorizing the release to the city of any and all information which an organization or entity may have concerning the applicant and a release to said organization or entity from all liability which may result from the furnishing of such to the city; and

(o)

Such additional information as the applicant desires to include to aid in the determination of whether the requested operating authority should be granted.

(Ord. No. 82938, § 1, 9-28-95)

Sec. 33-008. - Prerequisites to issuance.

(a)

The authority to grant or deny an application for an operating or vehicle permit is vested with the director acting in accordance with the provisions of this chapter and granting the number of such permits required to satisfy public convenience and necessity. Accordingly, upon receipt of an application, the transportation manager shall determine whether the public convenience and necessity requires the proposed ground transportation service and advise the director of such determination. The factors for determining public convenience and necessity include, but are not limited to:

(1)

The number and type of vehicles for hire presently in operation in the city;

(2)

The public transportation needs of the city and the adequacy of existing services, of the type proposed, to meet those needs;

(3)

Whether existing holders can render the proposed additional requested service more efficiently or effectively than the applicant;

(4)

The effect of the proposed additional service on traffic conditions, drivers' working conditions and wages, and existing ground transportation services of the type proposed;

(b)

An applicant for an operating permit has the burden of proving to the satisfaction of the director:

(1)

That the applicant is of good character and is qualified and financially able to provide the service proposed in the application.

(2)

That the proposed ground transportation service complies with the quality and safety standards of this chapter, or of the rules and regulations established by the director.

(3)

That the applicant is fit, willing and able to operate the ground transportation service in accordance with the requirements of this chapter, rules and regulations established by the director, provisions of the operating permit, and all other applicable rules, regulations and laws.

(4)

In the case where an applicant has been involved in past criminal activity, that he has otherwise maintained a record of steady employment and good conduct; that he has supported his dependents; and that he has paid all outstanding court costs, supervision fees, fines and restitution as may have been ordered in all criminal cases in which he has been convicted.

(c)

Within a reasonable time following receipt of an application, the transportation manager shall review the information submitted, investigate the applicant's fitness to conduct a ground transportation service, and prepare a written recommendation to the director.

(d)

The director shall approve an application meeting the requirements of the public convenience and necessity and meeting the requirements for obtaining an operating permit as set forth in this chapter.

(Ord. No. 82938, § 1, 9-28-95)

Sec. 33-009. - Grant of operating permit; service requirements.

(a)

Upon approval of an application for an operating permit by the director, and the execution of a permit agreement pursuant thereto, the transportation manager shall promptly issue the operating permit. Within ninety (90) days after receipt of such permit, the holder shall operate a city-wide ground transportation service in accordance with the provisions of this chapter, the operating permit, the permit agreement, and the rules and regulations established by the Director, for a period of twenty-four (24) months beginning on the date stated in the permit agreement.

(b)

Each holder shall maintain a business office within the limits of Bexar County staffed by company agents and employees for the purpose of meeting clients, taking deposits, inspection of vehicles and maintaining records required by this chapter. This location must be staffed five (5) days per week for a total of forty (40) hours per week and office hours must be posted in a place convenient to the public.

(c)

A holder's business office shall be listed in the business section of the telephone directory of the City of San Antonio. The listing shall include business address, general business phone number, and dispatch phone number if applicable.

(Ord. No. 82938, § 1, 9-28-95)

Sec. 33-010. - Denial of operating permit.

(a)

If the Director, however, based on the investigation required by subsection (c) of section 33-008 of this chapter, determines that good cause exists for denial of the application, then the department director shall notify the applicant in accordance with section 33-072 of this chapter, of his decision and of his basis therefor. Upon the applicant receiving notice of the director's decision, the applicant may appeal such decision in accordance with section 33-033 of this chapter.

(b)

In the case where an applicant has a background of past criminal activity, application denial based solely thereon is warranted if and only if the past criminal activity is directly related to the duties and responsibilities of a holder as more fully described in this chapter. Accordingly, the following shall be considered in making a determination of job-relatedness:

(1)

The nature and seriousness of the crime;

(2)

The relationship of the crime to the purposes of requiring the city's approval prior to engagement in the ground transportation service;

(3)

The extent to which the individual's engagement in the ground transportation service might offer an opportunity for further criminal activity of the same type as that which the individual previously had been involved; and

(4)

The relationship of the crime to the ability, capacity or fitness required of the individual to perform the duties and discharge the responsibilities of the vehicle for hire service, including:

The extent and nature of the individual's past criminal history;

The age of the individual at the time of the commission of the crime;

The amount of time that has elapsed since the individual's last criminal activity;

The conduct and work activity of the individual prior to and following the criminal activity;

Evidence of the individual's rehabilitation or rehabilitative effort while incarcerated or following release; and

Other evidence of the individual's present fitness, including letters of recommendation from: prosecutorial, law enforcement and correctional officers who prosecuted, arrested or had custodial responsibility for the individual; the sheriff and chief of police in the community where the individual resides; and any other persons in contact with the individual.

(c)

An application for an operating permit shall be denied where the applicant:

(1)

Is under indictment for or has been convicted of the offense of criminal homicide including murder, capital murder, manslaughter, but excluding criminally negligent homicide;

(2)

Has falsified or materially altered or omitted pertinent information in any governmental record, including an application for an operating permit; or

(3)

Has not met the requirements for obtaining an operating permit as set forth in this chapter, rules, or regulations established by the department director.

(d)

An application for an operating permit may also be denied where the applicant is under indictment or has been convicted of any of the following:

(1)

Any offense involving fraud or theft;

(2)

Any offense involving the unauthorized use of a motor vehicle;

(3)

Any violation of state or federal laws regulating firearms;

(4)

Any offense involving violence to any person except conduct classified as no greater than a Class C misdemeanor offense under the state law;

(5)

Any offense involving prostitution or the promotion of prostitution;

(6)

Any offense involving sexual assault, sexual abuse or indecency;

(7)

Any offense involving the use, sale or possession of drugs;

(8)

Any offense involving driving while intoxicated; or

(9)

Any other job-related offense.

(e)

Upon denial of an application for an operating permit, an applicant shall not be eligible for re-application for a period of twelve (12) months from the date of denial.

(Ord. No. 82938, § 1, 9-28-95)

Sec. 33-011. - Amendments to permit agreement/operating permit.

Minor amendments to the permit agreement and/or operating permit may be made by the director. Amendments that materially change the scope of the permit agreement and/or operating permit must be applied for in the same manner as the original.

(Ord. No. 82938, § 1, 9-28-95)

Sec. 33-012. - Payment of taxes.

(a)

It shall be the duty of every holder of a ground transportation service to render to the city for ad valorem taxation all vehicles or other equipment used in connection with such business.

(b)

An applicant shall not be issued an operating permit if any delinquent taxes are due to the city upon any vehicle for hire for which such operating authority is sought or upon any other equipment to be used in the business of the applicant, or if the holder thereof has failed to render same for ad valorem taxation.

(c)

Prior to issuance of an operating permit, the city treasurer shall examine the tax records of the city and ascertain whether or not the ad valorem taxes assessed by the city against the vehicle(s) and other equipment to be used in the business of the applicant have been fully paid. If such ad valorem taxes have not been paid, the director shall refuse to issue the applicant such permit until all of said ad valorem taxes have been paid.

(Ord. No. 82938, § 1, 9-28-95)

Sec. 33-013. - License/permit bond.

Prior to commencement of operations pursuant to this chapter, the holder shall file with the city clerk, as security for compliance under the operating permit, a good and sufficient license/permit bond. The form and substance of such license/permit bond shall be subject to approval by the city attorney and shall be in the amount hereafter specified in section 33-921. The right to operate under an operating permit shall be conditioned upon the existence and maintenance in full force and effect of the license/permit bond herein described.

(Ord. No. 82938, § 1, 9-28-95)

Sec. 33-014. - Conditions of bond.

The license/permit bond required by this division shall be conditioned as follows:

(a)

That the holder of the operating permit shall pay to the city all amounts due under the terms of this chapter and all costs, damages, and expenses which the city may incur and/or suffer as a result of the holder's acts or inactions in violation of the requirements of this chapter, rules and regulations established by the city, provisions of the operating permit, provisions of the permit agreement, and all other applicable rules, regulations and laws;

(b)

That the holder of the operating permit shall pay all fines, assessments and judgments levied against the holder by any court, by the city treasurer or by direction of the city council, and by such other officials authorized to levy such fines, taxes, charges, assessments or judgments; and

(c)

That the holder of the operating permit shall perform every duty of a person owning and/or operating a ground transportation service as required by this chapter, rules and regulations established by the director, and provisions of the permit agreement and/or operating permit.

(Ord. No. 82938, § 1, 9-28-95)

Sec. 33-015. - Amount of bond.

Except as otherwise provided by the holder's operating permit, every license/permit bond required by this division shall be in an amount fixed by the following schedule:

(a)

If the holder is authorized to operate five (5) vehicles for hire or less, then the bond shall be in the sum of one thousand five hundred dollars ($1,500.00);

(b)

If the holder is authorized to operate more than five (5) but not more than ten (10) vehicles for hire, then the bond shall be in the sum of three thousand dollars ($3,000.00);

(c)

If the holder is authorized to operate more than ten (10) but not more than fifteen (15) vehicles for hire, then the bond shall be in the sum of four thousand five hundred dollars ($4,500.00);

(d)

If the holder is authorized to operate more than fifteen (15) but not more than twenty-five (25) vehicles for hire, than the bond shall be in the sum of six thousand dollars ($6,000.00);

(e)

If the holder is authorized to operate more than twenty-five (25) but not more than fifty (50) vehicles for hire, then the bond shall be in the sum of seven thousand five hundred dollars ($7,500.00);

(f)

If the holder is authorized to operate more than fifty (50) but not more than one hundred (100) vehicles for hire, then the bond shall be in the sum of eleven thousand two hundred dollars ($11,200.00); and

(g)

If the holder is authorized to operate more than one hundred (100) vehicles for hire, then the bond shall be in the sum of fifteen thousand dollars ($15,000.00).

(Ord. No. 82938, § 1, 9-28-95)

Sec. 33-016. - Additional bonds and insurance may be required.

Upon discovery or determination that either the license/permit bond or the public liability and property damage insurance required of the holder under this chapter has become impaired, the director shall require new and/or additional bonds and insurance as appear to him necessary and sufficient to insure faithful performance and payment by such holder, his servants or agents, to persons injured by reason of the neglect of such holder, his servants or agents, or by reason of the violation by such holder, individually or through his servants or agents, of any of the provisions of this chapter, rules and regulations established by the city, provisions of the permit agreement and operating permit, or other applicable rules, regulations and laws.

(Ord. No. 82938, § 1, 9-28-95)

Sec. 33-017. - Provisions to be contained in bonds and insurance policies.

(a)

Every license/permit bond and insurance policy required under this chapter shall contain an endorsement that termination of the obligations of such bond and/or expiration, material change in, or cancellation of such insurance policy shall not become effective before thirty (30) days after written notice is received by the city of such termination, expiration, change or cancellation. Every insurance policy required by this chapter shall name the city as an additional insured.

(b)

Every license/permit bond and every policy of insurance required under this division shall run concurrently (either in its original term or with renewals) with the life of the operating permit held by the person so bonded and insured.

(Ord. No. 82938, § 1, 9-28-95)

Sec. 33-018. - Insurance requirements generally.

(a)

Prior to commencement of operations pursuant to this chapter the holder shall produce and furnish to the director, and thereafter keep in full force and effect, a policy of public liability and property damage insurance. Such policy of insurance shall be in the amount hereafter specified this chapter and shall be subject to approval by the risk manager of the city. Every such policy shall insure all the vehicles used by the holder in the vehicle for hire service authorized in the operating permit. Such policy shall inure to the benefit of any person who shall be injured or who shall sustain property damage as a result of the negligence of the holder or his servants or agents. The insurer shall be obligated to pay all final judgments which may be rendered on behalf of the public for injury or damage resulting to persons or property from the negligent operation of the holder's ground transportation service.

(b)

Every policy of insurance shall be issued by an insurance company with a minimum "A.B. Best" rating of B+ and authorized to do business in Texas.

(c)

Failure to procure and keep in full force and effect the insurances required by this chapter shall require the immediate suspension of the holder's operating permit.

(Ord. No. 82938, § 1, 9-28-95)

Secs. 33-019—33-024. - Reserved.

Sec. 33-025. - Renewal of operating permit.

(a)

To obtain renewal of an operating permit, a holder shall file with the transportation manager, at least forty-five (45) days prior to the expiration date of the permit agreement, a written, sworn application for operating permit renewal. The operating permit shall then be renewed unless the transportation manager determines, before the renewal date, that good cause exists for recommending to the director that the application for operating permit renewal be denied based on documentation:

(1)

That the holder is in noncompliance and/or has demonstrated a history of noncompliance with the provisions of this chapter, the rules and regulations of the director, the permit agreement, or the operating permit;

(2)

That the holder is neither fit, willing, nor able to continue to operate the ground transportation service in accordance with the provisions of this chapter, the rules and regulations of the director, the permit agreement, or the operating permit;

(3)

That the holder, since the date of his execution of the original permit agreement:

Has been convicted of any felony:

Has had his felony probation, parole or mandatory supervision revoked;

Has falsified or materially altered or omitted pertinent information in any governmental record, including an application for permit renewal; or

Has not met the requirements for permit renewal as set forth in this chapter.

(4)

That the holder, since the date of execution of his original permit agreement, but within five (5) years immediately preceding the filing of his application for permit renewal, has been convicted or spent time in jail or prison for a conviction of any of the offenses listed in section 33-010 of this chapter.

(5)

That public convenience and necessity do not require the continued operation of the ground transportation service.

(6)

A material change to the terms and conditions of the current permit agreement is requested or required.

(7)

That good cause exists to deny renewal.

(b)

If the director decides to deny the application for renewal of an operating permit, the director shall notify the holder of such decision, giving specific reasons for the basis of the denial, in accordance with section 33-072 of this chapter. Upon the holder receiving notice of the director's decision, the holder may appeal such decision in accordance with section 33-033 of this chapter.

(c)

If the operating permit expires at no fault of the holder before a ruling either on the approval or denial of the renewal, then the holder may continue to operate the ground transportation service pending a final decision.

(Ord. No. 82938, § 1, 9-28-95)

Sec. 33-026. - Transfer of operating permit.

(a)

Each operating permit issued pursuant to the provisions of this chapter is separate and distinct and shall be transferable from the permit holder to another person or entity only with the approval of the director. Said permits may be transferred only after the sale of a holder's ground transportation business upon passage of two (2) years from the date a permit was issued to the current permit holder, or upon the death of a holder. The transferability of permits may be limited by policy established by the city council.

(b)

In the event that the permit holder is a corporation, partnership or legal entity other than a natural person, prior approval of the director shall be required for any transfer or acquisition of majority ownership or control of that corporation, partnership or legal entity to a person or group of persons acting in concert, none of whom already owns or controls a majority interest. Any such acquisition or transfer occurring without prior approval of the director shall constitute a failure to comply with this section.

(c)

The proposed transferee shall file with the director a sworn application for the transfer and shall comply with the requirements of section 33-007 and 33-008 of this chapter. The permit holder shall certify in writing that the permit holder has notified the proposed transferee of the requirements of this section pertaining to the transfer of a permit. Whenever an application for a transfer of permit is filed, the director shall process the application for transfer in accordance with section 33-008 of this chapter. The director shall approve an application for transfer if the proposed transferee complies with the requirements of section 33-007 and 33-008. The holder and/or proposed transferee may appeal the director's decision to deny a permit transfer in accordance with section 33-033 of this chapter.

(d)

The director shall charge fees to effect the full cost recovery of activities associated with the administration, regulation, issuance or transfer of vehicle or operating permits, and associated records.

(Ord. No. 82938, § 1, 9-28-95; Ord. No. 89301, § 1, 2-18-99)

Sec. 33-027. - Reserved.

Sec. 33-028. - Operation contingent upon payment of fees.

Notwithstanding any other provisions of this chapter or any operating authority granted hereunder, the number of vehicles for hire which a holder shall be authorized to operate shall not exceed the number of vehicles for hire for which such holder shall have paid all charges as required by this chapter.

(Ord. No. 82938, § 1, 9-28-95)

Sec. 33-029. - Drug free workplace.

(a)

Upon application for, or request for renewal of, an operating permit, each holder or applicant shall deliver to the director a statement certifying that the holder or applicant has established for its employees and drivers a drug free workplace policy. If this statement is not delivered to the director, the director or his designated agent may deny the application or renewal and may deny approval of the driver for whom the holder failed to deliver the statement.

(b)

Each holder shall enforce the drug free workplace policy it has established and provide proof that drivers are being tested to the Director within thirty (30) days of:

(1)

Receipt of a written request for such proof from the director whenever the director has good cause to believe that provision of such proof is in the best interests of the public, or

(2)

The first date on which any new driver operates a vehicle under the holder's operating permit, unless the driver provides proof to the director that the driver has been tested under a drug free work place policy meeting the requirements of this chapter during the previous twelve (12) months.

(c)

The purpose of this provision is to protect public safety by deterring the unsafe use of drugs and alcohol by drivers of vehicles for hire by requiring each permit holder to establish certain standards for drug testing of employees or drivers known as a "Drug Free Workplace." Uniform standards and requirements regarding testing of employees, licenses and job applicants must be put into place to protect the rights of individuals. The minimum standards set forth in this provision helps ensure public safety is promoted without unduly infringing on the privacy and dignity of employees and drivers.

At a minimum, the holder must adopt in writing a detailed policy setting forth the specifics of such a program which includes at least the following information:

(1)

A statement of the holder's policy regarding drug and alcohol use by employees and drivers;

(2)

The job classifications for which employees, drivers or job applicants are subject to testing;

(3)

The circumstances under which testing may be required;

(4)

The substances as to which testing may be required;

(5)

The testing methods and collection procedures to be used;

(6)

The consequences of a refusal to participate in the testing;

(7)

The adverse action that may be taken based on the testing procedure or results;

(8)

The right of an individual to explain in confidence positive test results;

(9)

The right of the individual to obtain all information related to the testing of that individual;

(10)

Confidentiality requirements for the testing;

(11)

The available appeal procedures, remedies and sanctions;

(12)

The substance abuse programs for education and treatment available to the individual;

(d)

The holder shall post notice of the policy in prominent employee and driver access areas and give a written copy of the policy to each affected employee, driver and applicant. Notice shall be posted and the policy distributed any time the policy is changed.

(e)

At a minimum, a holder shall insure that the following substances are tested for:

Alcohol

Amphetamines

Cannabinoids

Cocaine

Phencyclidine

Methaqualone

Opiates

Barbituarates

Benzodizepines

Synthetic Narcotics:

Methadone

All laboratory security, chain of custody, transporting and receiving of specimens, specimen processing, retesting, storage of specimens, instrument calibration and reporting of results shall be in accordance with the National Institute on Drug Abuse standards.

At a minimum, holder shall insure that the following types of testing are included:

(1)

Post Accident Testing—The holder's policy shall provide for all drivers to be tested immediately after any automobile accident resulting in personal injury or property damage in an amount equal to or greater than one thousand dollars ($1,000.00) if the permit holder or department director has a reasonable suspicion that the driver was intoxicated at the time of the accident;

(2)

Post accident testing—all drivers shall be tested immediately after any automobile accident resulting in personal injury and/or property or vehicle damage in the amount of at least one thousand dollars ($1,000.00);

(3)

Testing for cause—if reasonable suspicion exists to believe the employee or driver is under the influence of drugs or alcohol and could adversely affect performance of duties and responsibilities;

(4)

Applicant testing—the holder requires any person applying to drive under the holder's operating permit to submit to testing within thirty (30) days of the date on which said driver first operates a vehicle in connection with the holder's operating permit unless said driver shows proof to the director that the driver has been tested within the previous twelve (12) months;

(5)

Random testing—because there is a likelihood that a driver may harm the public if impaired by alcohol or drug use, all drivers shall be subject to random testing. Other employees or drivers may be subject to random testing if injury to the public may occur if the employee or driver is impaired by drug or alcohol use, and

(6)

Testing after prior use employees or drivers who have received a confirmed positive test result within the past year may be required to submit to testing at reasonable intervals for a period of one year after the test.

(Ord. No. 82938, § 1, 9-28-95)

Sec. 33-030. - Americans with disabilities act.

Each holder shall comply with all applicable requirements of the Americans with Disabilities Act of 1990.

(Ord. No. 82938, § 1, 9-28-95)

Secs. 33-031, 33-032. - Reserved.