NOTICES
Tentative Order
[32 Pa.B. 4415] Public meeting held
August 8, 2002Commissioners Present: Glen R. Thomas, Chairperson; Robert K. Bloom, Vice-Chairperson; Aaron Wilson, Jr.; Terrance J. Fitzpatrick; Kim Pizzingrilli
Petition for Relief; Alexa Cab Co. and Pars Transport, Inc.; Doc. No. P-00021959
Issuance of Additional Certificates of Public Convenience and Medallions; Docket No. M-00991301
Tentative Order By the Commission:
Before us for consideration is the Petition for Relief (Petition) filed by Alexa Cab Co. (Alexa) and Pars Transport, Inc. (Pars) (collectively Petitioners), requesting that the Commission waive the A-title vehicle requirement for their medallion taxicabs. This requirement was set forth by Commission Order entered October 18, 1999, at Docket Number M-00991301 (1999 Order).1 As previously interpreted by the Commission and its staff, the 1999 Order prohibited a newly issued medallion from ever being placed on any vehicle other than an A-titled vehicle.2
Pursuant to the medallion auction authorized by the 1999 Order, Alexa obtained 64 certificates and medallions; Pars allegedly obtained 26. Petition at 2.3 The Petitioners seek relief from the A-title requirement, alleging the following: (a) the requirement no longer serves the Commission's original intent to upgrade the entire Philadelphia taxicab fleet; (b) the A-title requirement is discriminatory because it is not imposed upon older medallions; (c) there was confusion regarding the language imposing the A-title requirement; (d) the A-title restriction is not imposed by the Public Utility Code or any regulation; (e) the Petitioners cannot operate at a profit because of the A-title requirement; and (f) the public would not be inconvenienced by the lifting of the A-title requirement. Petition at 3-4.
Upon careful consideration, we find merit to several of the Petitioners' arguments.4 First, the original purpose of the issuance of the additional 161 medallions has, in fact, been achieved. The stated intent of the titling requirement found in the 1999 Order was ''to upgrade and improve the operations of taxicabs in Philadelphia.'' 1999 Order at 4. The goal was to create an immediate influx of new vehicles into the Philadelphia market, which was achieved. Basically, the Commission did not want the new medallions placed upon old vehicles. However, the history and language of the 1999 Order indicate that the Commission did not intend the A-title requirement to be a perpetual requirement. Such a requirement would lead to absurd results. For example, a medallion holder could not sell a month-old vehicle along with the medallion because the month-old vehicle would no longer be A-titled.
Second, a perpetual A-title requirement creates a two-tiered regulatory environment. Some medallions are burdened by the requirement and others are not. While this may not constitute unlawful discrimination, it certainly does not constitute good policy. As a matter of fundamental fairness, the Commission strives to regulate similarly situated entities in a similar manner. As a practical matter, a regulated community with different classes of medallions creates enforcement problems for the Commission.
Third, it is reasonable to believe that there was confusion regarding the specific requirement of the 1999 Order at the time of auction. The 1999 Order states, inter alia:
[W]e will require that a newly issued or reissued medallion shall be placed initially only on a 1999 or 2000 model year vehicle. Further, a newly issued or reissued medallion shall be placed only on an A-titled vehicle, or the equivalent. At no time following initial issuance shall a medallion be placed on a vehicle which is older than a 1999 model year or which is not an A-titled vehicle, or the equivalent.1999 Order at 3-4 (emphasis added). While the foregoing passage clearly indicates that the medallion had to be initially placed only on a vehicle that was both a 1999 or 2000 model year vehicle and A-titled, the requirements for vehicles after the time of initial issuance arguably was unclear. The use of the word ''or'' may suggest that subsequent vehicles could either be a 1999 model year or A-titled. Because the Commission's goal was an immediate influx of new vehicles, this interpretation may have been reasonable.
Fourth, the Public Utility Code requires that a medallion taxicab be no more than eight years old.5 While the Commission does have great latitude in imposing conditions on certificates of public convenience,6 to continue a perpetual A-title requirement is not necessary. Requiring the medallions to be placed initially upon new vehicles was a reasonable condition imposed by the Commission. It served the legitimate purpose of creating an immediate influx of new vehicles into the Philadelphia market. Similarly, the requirement that the new medallions could not subsequently be placed upon vehicles older than 1999 model year was reasonable and consistent with the Public Utility Code. As stated earlier, the Commission's intent was to prevent the new medallion from being placed on old vehicles. Allowing the medallions to now be placed upon vehicles older than 1999 model year would be inconsistent with this intent. Notwithstanding our decision today, we will not permit medallion owners to trade down to vehicles older than a 1999 model year.
Finally, the Commission already regulates the quality of vehicles through its medallion regulations.7 If there is a policy issue relating to the quality of vehicles, the remedy should not be isolated to the 161 medallions issued pursuant to the 1999 Order and should be done through the regulatory process.8
For the foregoing reasons, we will tentatively grant the Petition of Alexa and Pars. Similar relief should also be granted to other similarly situated entities. Accordingly, the 1999 Order is tentatively amended to eliminate the perpetual A-title requirement for any and all medallions and certificates issued under the Order. Because this matter affects persons other than the Petitioners, the Opinion and Order entered based on this Motion will be tentative. Interested parties and the public will be given notice in the Pennsylvania Bulletin and an opportunity to file comments.
Therefore, It Is Ordered:
1. The Petition of Alexa Cab Co. and Pars Transport, Inc. is tentatively granted.
2. In accordance with 66 Pa.C.S. § 703(g), the Commission's Opinion and Order entered on October 18, 1999, at Docket No. M-00991301 is tentatively amended to eliminate the following words from the partial sentence at the top of page four: '' . . . or which is not an A-titled vehicle, or the equivalent.''
3. The perpetual A-title requirement upon medallions and certificates issued pursuant to the Commission's Opinion and Order entered on October 18, 1999, at Docket No. M-00991301 is tentatively eliminated.
4. This Tentative Order shall be published in the Pennsylvania Bulletin. The public and interested parties may file comments within 20 days from publication.
5. If no comments are filed, a Secretarial Letter shall be issued making final the Tentative Opinion and Order.
JAMES J. MCNULTY,
Secretary
[Pa.B. Doc. No. 02-1580. Filed for public inspection September 6, 2002, 9:00 a.m.] _______
1Issuance of Additional Certificates of Public Convenience and Medallions, Docket No. M-00991301 (Order entered Oct. 18, 1999) (authorizing the issuance of 161 additional certificates of public convenience and medallions for taxicab service in Philadelphia). The 1999 Order defines an A-titled vehicle as ''a vehicle purchased from a manufacturer or registered dealer, which was not previously titled and is not a reconstructed or stolen vehicle.'' Id. at 3, n.2.
2See Letter Issued by Commission's Bureau of Transportation and Safety to New Medallion Holders in January 2001 (''In consideration of the foregoing, be advised that any transfer of the subject medallion(s) will require placement on a motor vehicle which is a 1999 model year or newer vehicle and which is purchased from a manufacturer or registered dealer, which was not previously titled and is not a reconstructed or stolen vehicle.'')(emphasis in original); see also Petition for Waiver; Philadelphia Transport, Inc., Docket No. A-00116714, P-00108 (Order entered Oct. 15, 2001)(denying request to waive A-title requirement where owner alleged financial hardship).
3Contrary to the allegations contained in the Petition, Commission records indicate that Pars purchased 7 medallions pursuant to the auction. Currently, Pars holds 12 medallions.
4We note that the Petitioners raise several new and novel arguments that were not previously heard or considered by the Commission.
566 Pa. C.S. § 2404(a).
6See Rheems Water Co. v. Pa. Pub. Util. Comm'n, 620 A.2d 609 (Pa. Cmwlth. 1993).
7See 52 Pa. Code §§ 30.31-30.34 (relating to vehicle requirements and inspections). I also note that the Commission recently issued proposed medallion regulations, some of which relate to vehicle quality. See Proposed Rulemaking; Taxicab Medallion Regulations; 52 Pa. Code Chapter 30, Docket No. L-00020155 (Order entered Mar. 28, 2002).
8See, e.g., Chimenti v. Pa. Dep't of Corrections, 720 A.2d 205 (Pa. Cmwlth. 1998), aff'd, 559 Pa. 379, 740 A.2d 1139 (1999)(explaining that a regulation is a government agency's exercise of delegated legislative power to create a mandatory standard of behavior for similarly-situated persons); see also Commonwealth Documents Law (45 P. S. §§ 1102--1602).
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