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PA Bulletin, Doc. No. 96-2011

RULES AND REGULATIONS

Title 52--PUBLIC UTILITY

PENNSYLVANIA PUBLIC UTILITY COMMISSION

[52 PA. CODE CH. 29]

[26 Pa.B. 5812]

[L-930090]

Limousine Service Supplemental

   The Pennsylvania Public Utility Commission (Commission) adopted a final rulemaking order June 6, 1996, regarding what constitutes a luxury-type vehicle eligible for use in limousine service. Further, the regulations require limousine operators to carry trip-sheets with relevant information. These trip sheets will aid the Commission in its enforcement endeavors. The contact person is John Herzog, Assistant Counsel, Legal Division, Bureau of Transportation and Safety, (717) 783-3173.

Executive Summary

   By order entered February 24, 1994, the Commission initiated a proposed rulemaking to amend and supplement its regulations regarding limousine service. The proposed rulemaking was intended to better define what constitutes a limousine, to exempt all vehicles licensed as limousines from identification markings with the exception of vehicle plates as prescribed by 75 Pa.C.S. § 1925.1, to revise existing tariff requirements, and to add a trip sheet requirement. Comments to the rulemaking indicated that some of the proposed changes were not in the public interest and may be unduly burdensome to the limousine industry. The Commission addressed these comments in its Final Rulemaking and modified the proposed regulations where appropriate. Significantly, the Commission eliminated proposed tariff changes from the rulemaking.

Regulatory Review

   Under section 5(a) of the Regulatory Review Act (71 P. S. § 745.5(a)), the Commission submitted a copy of the final rulemaking, which was published as proposed at 24 Pa.B. 4111, and served on August 3, 1994, to the Independent Regulatory Review Commission (IRRC) and the Chairpersons of the House Committee Consumer Affairs and the Senate Committee on Consumer Protection and Professional Licensure for revieew and comment. In compliance with section 5(b.1) of the Regulatory Review Act, the Commission also provided IRRC and the Committees with copies of comments received, as well as other documentation.

   In preparing these final-form regulations, the Commission has considered the comments received from IRRC, the Committees and the public.

   These final-form regulations were deemed approved by the House Committee on Consumer Affairs and were approved by the Senate Committee on Consumer Protection and Professional Licensure on October 3, 1996, and were approved by IRRC on October 3, 1996, in accordance with section 5(c) of the Regulatory Review Act.

Public meeting held June 6, 1996

Commissioners present: John M. Quain, Chairperson; Lisa Crutchfield, Vice Chairperson, Dissenting--Statement follows; John Hanger, Statement follows; David W. Rolka, Concurring and Dissenting in part--Statement follows; and Robert K. Bloom

Order

By the Commission:

   By order entered February 24, 1994, the Commission initiated a proposed rulemaking to amend and supplement its regulations regarding limousine service. The purpose of the rulemaking was to better define what constitutes limousine service, to ensure that only qualified service is provided under limousine authority, to provide documentation to the Commission useful in investigations and rate filings, to more clearly delineate limousine service from call-or-demand service, and to aid the Commission and the industry in interpreting and applying limousine regulations.

   On April 14, 1994, the Office of Attorney General issued its approval of the proposed regulations as to form and legality. On August 3, 1994, copies of the proposed regulations were delivered for review and comment to the designated standing committees of both houses of the General Assembly and IRRC. The proposed rulemaking was published in the August 13, 1994 edition of the Pennsylvania Bulletin, 24 Pa.B. 4111.

   Comments to the proposed rulemaking were filed by IRRC, Mortuary Removal Service, Inc., Top Hat Chauffeured Limousine Services, Erie Limousine Service, Delaware Valley Limousine Operators Association, Inc., North Eastern Limousine Association, Landis Luxury Coaches, The Brotherhood of Unified Taxi Drivers/Owners, King Limousine and Transportation Service, Inc., Acumen Limousine Service, Boston Coach, Western Pennsylvania Limousine Association, Philadelphia Convention & Visitors Bureau, CoreStates Bank, N.A., Executive Transportation, Inc., Posten Taxi, Inc., and Liberty Limousine. Due to the large number of commentators, we will not discuss each comment individually. Instead, we will discuss the proposed amendments section by section, referring to the relevant comments for the particular provision under consideration.

§ 29.333.  Vehicle and equipment requirements.

   (a)  Limousine service may be operated only in luxury type vehicles with seating capacities of [10] nine passengers or less, excluding the driver.

   The Commission's motivation for reducing the allowable seating capacity for limousine service was to reconcile the Commission's regulations with the Motor Vehicle Code. While some commentators indicated that they are already complying with the proposed change, comments regarding this change were generally negative. Comments indicated that ''super stretch'' limousines have passenger seating capacities of ten. These vehicles, currently utilized by limousine operators, would be excluded from limousine service under the proposed change. One commentator suggested that limousines should have a seating capacity of no less than nine passengers.

   We are in agreement with the majority of the commentators that reducing the seating capacity for limousine service is not warranted. While this means that a discrepancy will remain between the Commission's definition of a limousine and the definition found in the Vehicle Code, this discrepancy does not justify changing the existing regulation. This necessarily implies that some vehicles recognized by the Commission as limousines will not be able to get a limousine license plate from PennDOT. This alone does not make these vehicles anything other than a limousine.

   (b)  Luxury type vehicles are vehicles which at the time of acquisition or with subsequent modifications have physical configurations and accessory features that are not considered as being ordinary, standard or commonplace in lower to moderately priced vehicles. Luxury type vehicles are intended to afford patrons a higher level of service and comfort than are ordinarily available in call or demand, paratransit and airport transfer services. To qualify as a luxury type vehicle, a vehicle shall have at a minimum: air conditioning, AM/FM cassette stereo radio, deluxe leather or deluxe fabric upholstery, deluxe wheels or wheel covers, four doors and a wheelbase of at least 109 inches. Other amenities which limousine service might afford are reading lights, work desk or table, cellular phone, refrigerator, television, VCR, extended wheelbase and privacy dividers. Vehicles classified as antique or classic motor vehicles as defined by 75 Pa.C.S. § 102 (definitions) can be deemed luxury type vehicles. Station wagons and all purpose vehicles may not be considered to be luxury type vehicles. Vans that meet the luxury type vehicle standards may be considered luxury type vehicles.

   Comments to this proposed amendment were generally supportive of the need for clarification of what constitutes a luxury-type vehicle. However, commentators objected to inclusion of an AM-FM cassette radio as required equipment, reasoning that rarely do customers ask for such a service. Further, commentators objected to the blanket exclusion of station wagons and all purpose vehicles from the definition of luxury-type vehicle. IRRC commented that the first sentence of the proposed regulation should be altered to change the focus from the acquisition date of the vehicle to the manufactured date of the vehicle to determine if the vehicle qualifies as a limousine.

   We agree with all of the comments and have modified the regulation accordingly. However, we will require that all luxury type vehicles have an AM/FM stereo radio.

   (c)  Prior to the vehicle's operation, the vehicle shall first be described in a written communication with one interior and one exterior photograph of each vehicle sent to the Bureau of Transportation, Pennsylvania Public Utility Commission, Post Office Box 3265, Harrisburg, Pennsylvania 17105-3265. The vehicle description shall include the vehicle make, vehicle model, vehicle type (such as sedan), year of manufacture and a list of features which would qualify the vehicle as a luxury type vehicle. Letters of explanation may be included.

   Comments on this provision were generally negative. Commentators were concerned that requiring Commission approval of a vehicle prior to placing the vehicle in service would create undue delay and expense. Commentators alleged that an operator can not make a significant capital outlay for a vehicle without knowing if that vehicle can be used in service. Also, comments indicated that two photographs may not be sufficient to meet the Commission's objective.

   As an alternative to the Commission's proposal, it was suggested that the Commission publish an annual list of vehicles which will automatically qualify as luxury-type. Further, it was suggested that operators provide the Commission with an updated list of all current and newly acquired vehicles.

   Based on the foregoing, we will not require Commission preapproval of a vehicle prior to that vehicle being placed in limousine service. Also, in an effort to minimize the regulatory burdens on the industry, we will not require that operators provide a vehicle list to the Commission. We do not believe that deleting this proposal significantly compromises our ability to protect the public interest. We will provide the industry with a listing of vehicles which qualify as luxury type vehicles. A vehicle being placed on that list creates a prima facie case that it is a luxury type vehicle. A copy of this list will be kept at Commission offices and will be available upon request.

   [(b)] (d)  Section 29.71(a) (relating to marking of vehicles) does not apply to [luxury-type] luxury type vehicles [with a capacity not to exceed seven passengers when] engaged in limousine service under [§§ 29.331--29.334] §§ 29.331--29.335 (relating to limousine service). Vehicles licensed as limousines are required to be identified by vehicle plates as prescribed by 75 Pa.C.S. § 1925.1 (relating to limousines).

   Comments on this provision indicated that requiring limousine plates on vehicles operating as limousines may be problematical, due to the conflict between the Commission's definition of limousine and the Vehicle Code's definition. Notwithstanding this problem, IRRC suggested that the proposed § 29.333(d) be retained, but amended by adding additional identification requirements for a special decal or emblem to be visibly displayed on the rear shelf area or affixed to the rear window on those luxury type vehicles unable to obtain limousine license plates.

   The Commission's regulations provide that a limousine is a luxury type vehicle with a seating capacity of ten passengers or less. The Vehicle Code provides that a limousine is a motor vehicle with a seating capacity of nine passengers or less, 75 Pa.C.S. § 102. Vehicles which do not fall within the Vehicle Code's definition of ''limousine'' will not be issued limousine registration plates. 75 Pa. C.S. § 1925.1. The discrepancy between the Vehicle Code's definition of limousine and the Commission's definition results in some vehicles operating in authorized limousine service without having limousine registration plates.

   We do not believe that this licensing problem is sufficiently widespread to mandate additional identification requirements for those limousines unable to obtain limousine license plates. Therefore, we will not amend § 29.333(d) as suggested by IRRC. Further, we will delete our proposed language that ''all vehicles licensed as limousines are required to be identified by vehicle plates,'' since this will be impossible for those limousines having seating capacities of ten passengers.

§ 29.334.  Tariff requirements.

   [Limousine rates may be based on mileage or time, or both, and shall be contained in a tariff filed, posted and published under statute and under title.]
   (a)  Primary rate structures for limousine service shall be based on time. Primary rate structure means the method principally used by the carrier to calculate the amount to be paid by its patrons for service rendered. However, supplemental charges based on mileage may be assessed and added to the primary rate structure charge in situations where round trip mileage exceeds 100 miles.
   (b)  Limousine service shall be subject to a minimum charge provision as established and set forth in the carrier's tariff. The minimum charge may not be less than the charge for 1 hour at the rate set forth in the respective primary rate structure.
   (c)  Rate levels which are based upon the nature of the vehicle provided (such as regular limousine, stretch limousine, luxury van, luxury sedan, classic vehicles) shall be fully detailed in the carrier's tariff.
   (d)  Charges for nontransportation services may not be contained in the carrier's tariff.
   (e)  Limousine tariffs are to be filed, posted and published in accordance with other pertinent provisions of Subpart A and this subpart (relating to general provisions). Financial justification and other supporting documentation shall be submitted when tariffs are filed.

   Comments on this provision were mixed. Some limousine operators supported the provision as drafted. Other operators objected, claiming that the hourly rate structure and minimum charge are unduly burdensome. Also, two noncarrier operators, the Philadelphia Convention & Visitors Bureau and CoreStates Bank, N.A., opposed both the proposed rate structure and the minimum charge. These commentators indicated that the proposals would only serve to increase the costs of limousine service to the public, since most of their trips were far less than 1 hour and the trips were generally local trips within Philadelphia.

   The proposed tariff changes were designed to establish a clearer differentiation between limousine and taxicab services. There apparently is some overlap between these services. This problem is especially acute in the Philadelphia area for trips to and from the airport. In Pa. P.U.C. v. Metro Transportation Co., Docket No. I-00940030, Order entered July 21, 1995, we ordered an investigation into the competition between limousine services and taxicab services. In that proceeding, we recognized that there may be some allowable overlap among the various types of passenger transportation. We noted, within the context of that proceeding, that the taxicab industry is withstanding competition fairly well. Further, in that proceeding we approved a limousine tariff that was mileage based.

   Based on the foregoing, we find that changing the tariff structure as proposed would not be in the best interests of the riding public. We will not penalize the public in order to referee a dispute between taxicabs and limousines. Obviously, the limousines are providing a service for a price that the public wants. It is not proper for us to increase that price to the public for the sole purpose of protecting a competing industry. 66 Pa.C.S. § 1311(d). At some point, the marketplace must dictate whether there is sufficient demand for a particular type of transportation. We will not frustrate the workings of the marketplace by establishing a limousine tariff structure that would only serve to increase costs of limousine service to the public. We believe that there are sufficient means of differentiating limousine and taxicab service beyond implementation of a tariff structure that would negatively impact the availability of limousine service for the riding public. Therefore, we will eliminate the proposed tariff provision from the rulemaking.

§ 29.335.  Trip sheet requirements.

   (a)  A driver of a luxury type of vehicle engaged in limousine service shall have a trip sheet in the vehicle evidencing that the vehicle is in service. The trip sheet shall contain the following information:
   (1)  The date of service.
   (2)  The name of the certificated carrier.
   (3)  The name of the engaging person or organization.
   (4)  The service being provided and the corresponding rate being charged.
   (5)  The intended destination.
   (6)  The starting time and length of time for which the vehicle has been reserved.
   (7)  The initial odometer reading.
   (b)  At the conclusion of the trip, the driver shall record the ending time and final odometer reading on the trip sheet.
   (c)  The trip sheet shall be retained by the certificate holder for at least 2 years. Copies of these documents may be required to be submitted in support of carrier proposed tariff rate increases in addition to other documentation set forth in § 23.64 (relating to data required in filing increases in operating revenues).

   Comments to this provision were generally favorable. Some limousine operators supported the adoption of this provision without revision. Other operators commented that the trip sheets would create too much paperwork and objected to retaining the sheets for 2 years. Further, one limousine operator commented that requiring the trip sheet be kept in the vehicle during service is untenable, since many limousine trips do not originate at the home office and therefore the driver cannot get a trip sheet.

   Based on these comments, we will modify the proposed regulation to require limousine operators to retain trip sheets for 1 year. Further, we are not persuaded that requiring drivers to keep trip sheets in the vehicle during service is overly burdensome. The information required on the trip sheet is basic background information. Certainly, a driver in communication with the home office is capable of providing this information at the time the driver is dispatched.

   Finally, in our order proposing these regulations, we requested commentary on the implementation of a voucher system. Under this system, the service provider would issue vouchers to clients for use in paying for service rendered in accordance with previously established billing arrangements. The comments on this proposal were negative. The information to be provided on the voucher would now be required on a trip sheet. Further, this method of payment could be restrictive, unnecessarily displacing other legitimate payment methods. Therefore, we will not pursue the voucher payment system at this time.

   Having considered all comments filed to the proposed rulemaking, we believe the regulations as set forth in Annex A should be adopted as the final rulemaking.

   Accordingly, under section 501 of the Public Utility Code, 66 Pa.C.S. § 501 and the Commonwealth Documents Law (45 P. S. § 1201 et seq.), and regulations promulgated thereunder at 1 Pa. Code §§ 7.1--7.4, we find that regulations governing limousine service shall be amended. Therefore,

   It is Ordered that:

   1.  The regulations of the Commission, 52 Pa. Code Chapter 29, are amended by amending §§ 29.331 and 29.333 and by adding § 29.335 to read as set forth in Annex A.

   2.  The Secretary shall submit this order and Annex A to the Office of Attorney General for approval as to the legality.

   3.  The Secretary shall submit this order and Annex A to the Governor's Budget Office for review of fiscal impact.

   4.  The Secretary shall submit this order and Annex A for formal review by the designated standing committees of both Houses of the General Assembly, and for formal review by the Independent Regulatory Review Commission.

   5.  The Secretary shall deposit this order and Annex A with the Legislative Reference Bureau for publication in the Pennsylvania Bulletin.

   6.  The Secretary shall serve copies of this order and Annex A upon each of the commentators.

   7.  These amendments shall become effective January 29, 1997.

JOHN G. ALFORD,   
Secretary

   (Editor's Note: The amendment of § 29.331 (relating to conditions) was not included in the proposal at 24 Pa.B. 4111 (August 13, 1994). The proposal to amend § 29.334 (relating to tariff requirements), included at 24 Pa.B. 4111, has been withdrawn by the Commission.

   Editor's Note: For the text of the order of the Independent Regulatory Review Commission relating to this document, see 26 Pa.B. 5181 (October 26, 1996).)

   Fiscal Note: 57-144. No fiscal impact; (8) recommends adoption.

Statement of Vice Chairman Lisa Crutchfield

   Limousine service, like any other passenger transportation service, is in dire need of regulation. When a passenger hires a taxicab, paratransit service, bus, or limousine service to transport her to a specific location, she trusts that the appropriate authorities have fulfilled their obligation to ensure that the vehicle is safe, that the driver is charging a nondiscriminatory fare and that the driver is licensed and is a nonthreatening professional.

   The Pennsylvania Public Utility Commission, pursuant to the Public Utility Code, is the governmental agency empowered with the responsibility to ensure that the limousine industry transports passengers safely and at reasonable prices. To fulfill our responsibility, it is incumbent upon this Commission to maintain an updated list of all authorized vehicles providing service as limousines in this Commonwealth, and it is also imperative that those vehicles be appropriately marked as vehicles that have been approved by the Commission and the Commonwealth's Department of Transportation. The Department of Transportation, however, only issues limousine license plates to motor vehicles carrying no more than nine passengers. 75 Pa.C.S. § 102. If the limousine has the capacity to carry more than nine people, it will be issued a bus license plate. The Commission's regulations, however, provide for a limousine to carry up to 10 passengers; consequently, a problem arises when a passenger complains with the Commission regarding the fare or service received in a vehicle which we deem to be a limousine, but the motor vehicle has a license plate indicating it as a bus. There needs to be a clear indication through a decal or through the license plate of the type of vehicle and service the passenger is obtaining. I believe the Commission should issue a decal when it provides this class of vehicles with its certificate of public convenience.

   When I get into a taxicab, I assume it is safe because it is appropriately identified by the markings on the car and by the medallion. When a passenger gets into a bus or a paratransit vehicle, they assume it is safe because of the appropriate markings and the license plates. I believe it is imperative that the limousine industry be required to comply with the same regulations. In light of my concerns regarding all passengers' safety, I cannot support Chairman John Quain's motion.

Statement of Commissioner John Hanger

   Strong arguments exist for modifying the existing economic regulation of the limousine and bus industries in Pennsylvania. I, however, do not support ending safety and insurance regulation of these two industries.

   The Commission's role to ensure safety in public transportation and public utility service is vital. It is a proper role of government and should not be compromised. This Commission must continue to enforce vigorously the safety and insurance requirements of the Public Utility Code.

Statement of Commissioner David W. Rolka

   The Chairman has offered a Motion which rejects the amendment of two provisions under § 29.333.

   The first is found at § 29.333(c). As proposed, the amendment would require limousine operators to submit a vehicle identification list, to be updated annually and as new vehicles are acquired, which provides a complete description of all vehicles being used to provide service. Because this rulemaking gives us a detailed definition of what constitutes a ''luxury type'' vehicle, having such a list on file will be an aid in updating our own list of vehicles that fall within the definition and will provide some measure of surveillance of our insurance requirements.

   The second amendment, at § 29.333(d), would require the letters ''LM'' to be affixed to the rear window of luxury type vehicles that are unable to obtain limousine plates under 75 Pa.C.S. § 1925.1. This requirement would be restricted to vehicles which are not identified by limousine license plates, and I believe providing easier identification actually will enhance enforcement efforts.

   I believe these two provisions would streamline our enforcement efforts and must respectfully dissent on the Chairman's Motion.

Annex A

TITLE 52.  PUBLIC UTILITIES

PART I.  PENNSYLVANIA PUBLIC UTILITY COMMISSION

Subpart B.  CARRIERS OF PASSENGERS OR PROPERTY

CHAPTER 29.  MOTOR CARRIERS OF PASSENGERS

Subchapter D.  SUPPLEMENTAL REGULATIONS

LIMOUSINE SERVICE

§ 29.331.  Conditions.

   This section and §§ 29.332--29.335 (relating to limousine service) apply to operations in the limousine class of common carriage. These sections apply in addition to relevant provisions of Subchapters A and B (relating to general provisions; and common carriers) as well as a particular provision contained in a certificate of a carrier.

§ 29.333.  Vehicle and equipment requirements.

   (a)  Limousine service may be operated only in luxury type vehicles with seating capacities of ten passengers or less, excluding the driver.

   (b)  Luxury type vehicles are vehicles manufactured or subsequently modified so that they have physical configurations and accessory features that are not considered as being ordinary, standard or commonplace in lower to moderately priced vehicles. Luxury type vehicles are intended to afford patrons a higher level of service and comfort than are ordinarily available in call or demand, paratransit, and airport transfer services. To qualify as a luxury type vehicle, a vehicle shall have at a minimum: air conditioning, AM/FM stereo radio, deluxe leather or deluxe fabric upholstery, deluxe wheels or wheel covers, four doors and a wheelbase of at least 109 inches. Other amenities which limousine service might afford are AM/FM cassette stereo radio, reading lights, work desk or table, cellular phone, refrigerator, television, VCR, extended wheelbase and privacy dividers.

   (c)  Section 29.71(a) (relating to marking of vehicles) does not apply to luxury type vehicles engaged in limousine service under this section and §§ 29.331, 29.332, 29.334 and 29.335 (relating to limousine service).

§ 29.335.  Trip sheet requirements:

   (a)  A driver of a luxury type vehicle engaged in providing limousine service shall have a trip sheet in the vehicle evidencing that the vehicle is in service. The trip sheet shall contain the following information:

   (1)  The date of service.

   (2)  The name of the certificated carrier.

   (3)  The name of the engaging person or organization.

   (4)  The service being provided and corresponding rate charged.

   (5)  The intended destination.

   (6)  The starting time and length of time for which the vehicle has been reserved.

   (7)  The initial odometer reading.

   (b)  At the conclusion of the trip, the driver shall record the ending time and final odometer reading on the trip sheet.

   (c)  The trip sheet shall be retained by the certificateholder for a minimum of 1 year. Copies of the documents may be required to be submitted in support of carrier proposed tariff rate increases in addition to other documentation in § 23.64 (relating to data required in filing increases in operating revenues).

[Pa.B. Doc. No. 96-2011. Filed for public inspection November 29, 1996, 9:00 a.m.]



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