[41 Pa.B. 435]
[Saturday, January 15, 2011]

[Continued from previous Web Page]

CHAPTER 1023. TAXICAB RATES

Sec.

1023.1.	Uniform taxicab rate.
1023.2.	Taxicab fare refunds.
1023.3.	Rates for parcels, packages and property.

§ 1023.1. Uniform taxicab rate.

 (a) All taxicabs shall charge a uniform rate to passengers as determined by the Authority upon investigation. The Authority's taxicab rates are available at www.philapark.org/tld.

 (b) The taxicab rates approved by the Authority will include provisions for the payment of tolls, airport exit or entry fees, waiting periods and applicable flat rates by passengers.

§ 1023.2. Taxicab fare refunds.

 (a) A certificate holder or taxicab driver found to have charged a taxicab rate in violation of the act, this part or an order of the Authority may be required to refund the excess amount of the fare to the fare payer by order of the Authority.

 (b) A refund required under this section may be in addition to penalties imposed as provided in § 1001.61 (relating to penalties).

§ 1023.3. Rates for parcels, packages and property.

 (a) As provided in section 5714(c) of the act (relating to certificate and medallion required), the rates for taxicab service involving the transportation of parcels, packages and property, shall be at the same basic meter rates established by the Authority as provided in § 1023.1 (relating to uniform taxicab rates), regardless of the presence of a passenger.

 (b) In the event taxicab service involves the transportation of parcels, packages or property without a passenger, the estimated fare must be paid in advance with adjustments made upon delivery.

 (c) The taxicab driver may leave the parcels, packages or property unattended at the designated destination if no one is waiting to receive the items.

 (d) A taxicab driver may refuse to transport a parcel, package or property if it appears to be any of the following:

 (1) Unsanitary.

 (2) Likely to damage the vehicle or injure the driver.

 (3) Dangerous or illegal to possess or transfer.

 (e) A charge may not be made by a certificate holder or taxicab driver for a hand baggage or hand luggage carried by a fare-paying passenger.

CHAPTER 1025. INSURANCE REQUIRED

Sec.

1025.1.	Definitions.
1025.2.	Insurance forms and procedures.
1025.3.	Insurance required.
1025.4.	Applications to self-insure.
1025.5.	Standards for adjustment and payment of claims.
1025.6.	Additional requirements.

§ 1025.1. Definitions.

 The following words and terms, when used in this chapter, have the following meanings, unless the context clearly indicates otherwise:

 Form E—The standard form filed by a regulated party's insurer evidencing the existence of a current and valid insurance policy or surety bond in the name of the insured and for lines of coverage and with limits required by the Authority.

 Form K—The standard form filed by a regulated party's insurer providing notice of cancellation of an insurance policy or surety bond previously maintained to be in compliance with the act, this part or an order of the Authority.

 Self-insurer—A certificate holder that adjusts and is ultimately liable for payment of all or part of its bodily injury, property or cargo damage claims resulting from the operation, maintenance or use of a motor vehicle as a taxicab.

§ 1025.2. Insurance forms and procedures.

 (a) Forms of notice.

 (1) Endorsements for policies of insurance and surety bonds, certificates of insurance, or for approval of other securities or agreements shall be made through Form E.

 (2) Notices of cancellation for policies of insurance, surety bonds, certificates of insurance and self-insurer status, shall be made through Form K.

 (3) Each provider of insurance and surety bonds shall complete and file the Authority's Form INS-1 ''Contact Information'' upon the first filing of a Form E in each calendar year and at anytime during the year when the contact information provided will change. A copy of the Form INS-1 is available on the Authority's web site at www.philapark.org/tld.

 (b) Surety bonds and certificates in effect continuously. Surety bonds and certificates of insurance must specify that coverage will remain in effect continuously until terminated, except under one of the following conditions:

 (1) When filed expressly to fill prior gaps or lapses in coverage or to cover grants of emergency temporary authority of unusually short duration and the filing clearly so indicates.

 (2) Urgent circumstances, when special permission is obtained from the Authority.

 (c) Filing and copies.

 (1) Certificates of insurance, surety bonds and notices of cancellation required by subsection (a) must be filed with the Director by email at eksubmission@philapark. org.

 (2) The Authority may prescribe additional information and content necessary for endorsements and notices required by this section.

 (3) The Authority will provide prompt notice of acceptance of filings required by this section by return email message.

 (d) Name of insured. Certificates of insurance and surety bonds shall be issued in the full and correct name of the regulated party to whom the certificate, registration, or license or other right is, or is to be issued. In the case of a partnership, all partners shall be named.

 (e) Cancellation notice. Except as provided in subsection (f), surety bonds, certificates of insurance and other securities or agreements may not be cancelled or withdrawn until after 30 days notice in writing has been issued by the insurance company, surety, motor carrier, broker or other party, to the Director. The period of 30 days begins from the date the Director provides notice of acceptance as provided in subsection (c)(3).

 (f) Termination by replacement. Certificates of insurance and surety bonds which have been accepted by the Authority under this chapter may be replaced by other certificates of insurance, surety bonds or other security, and the liability of the retiring insurer or surety under the certificates of insurance or surety bonds shall be considered as having terminated as of the effective date of the replacement certificate of insurance, surety bond or other security, if the replacement certificate, bond or other security is acceptable to the Authority under this chapter.

 (g) Refusal to accept, or revocation by the Authority of surety bonds. The Authority may refuse to accept or may revoke its acceptance of a surety bond, certificate of insurance or other securities or agreements if, in its judgment, the security does not comply with this subchapter or fails to provide satisfactory or adequate protection for the public. Revocation of acceptance of a certificate of insurance, surety bond or other security does not relieve the regulated party from compliance with this subchapter.

 (h) Compliance. Failure to maintain evidence of insurance on file with the Authority in accordance with this chapter shall cause the rights and privileges issued to the regulated party to be placed out of service immediately as provided in § 1003.32 (relating to out of service designation). The Authority may establish rules under which suspended rights and privileges may be temporarily reinstated pending compliance with this subpart.

§ 1025.3. Insurance required.

 (a) A regulated party may not engage in taxicab service and the certificate of public convenience will not be issued or remain in force, except as provided in § 1025.4 (relating to applications to self-insure) until there has been filed with and approved by the Authority a certificate of insurance by an insurer authorized to do business in this Commonwealth, to provide for the payment of valid accident claims against the insured for bodily injury to or the death of a person, or the loss of or damage to property of others resulting from the operation, maintenance or use of a taxicab in the insured authorized service.

 (b) The liability insurance maintained by a taxicab certificate holder shall be in an amount of at least $50,000 to cover liability for bodily injury, death or property damage incurred in an accident arising from authorized service. The $50,000 minimum coverage is split coverage in the amounts of $20,000 bodily injury per person, $40,000 bodily injury per accident and $10,000 property damage per accident. This coverage must include first party medical benefits in the amount of $25,000 and first party wage loss benefits in the amount of $25,000 for passengers and pedestrians. Except as to the required amount of coverage, these benefits must conform to 75 Pa.C.S. §§ 1701—1799.7 (relating to Motor Vehicle Financial Responsibility Law). First party coverage of the taxicab driver of taxicabs must meet the requirements of 75 Pa.C.S. § 1711 (relating to required benefits).

 (c) The certificate holder's loss history with a current or former insurer shall be released to the Authority within 2 business days of a request by the Authority. The certificate holder shall authorize any release required by the insurer to facilitate the timely delivery of the loss history to the Authority.

 (d) The Authority may direct insurers to file proof of insurance both electronically and in hard copy.

 (e) The limits in subsection (b) do not include the insurance of cargo.

§ 1025.4. Applications to self-insure.

 (a) A taxicab or limousine certificate holder may file an application with the Authority to act as self-insurer of all or part of its bodily injury, property damage or cargo damage claims. In support of its application, the applicant shall submit a true and accurate statement of its financial condition which establishes its capability to satisfy its insurance obligations as they become due, a self-insurance plan which includes adequate security to protect the public and a description of its safety program including its past accident record. A self-insurance applicant shall agree in the application to grant the Authority power to rescind approval of self-insurer status, without hearing, if the Authority determines that the public interest demands it.

 (b) In reviewing self-insurance applications, the Authority will examine the following factors in determining whether approval will be granted:

 (1) The net worth of the certificate holder in relationship to the size of its operation and the nature and extent of its request for self-insurer status. The evidence must demonstrate the certificate holder's financial capability to adjust and pay insurance obligations as they become due before approval will be granted.

 (2) The organization of the certificate holder's proposed self-insurance program including the adequacy of security to protect the public. Security may be in the form, but is not limited to, one or more of the following:

 (i) Reserves.

 (ii) Sinking funds.

 (iii) Third party financial guarantees.

 (iv) Parent company or affiliate sureties.

 (v) Excess insurance coverage.

 (vi) Other similar arrangements.

 (3) The effectiveness of the certificate holder's safety program. The Authority will look closely at the average number and average cost of accident losses over the past three years in determining whether self-insurance is feasible.

 (c) Authority approval of a self-insurance application may be made conditional on revisions in the applicant's proposed self-insurance plan, safety program or standards for adjustment and payment of claims, as well as requirements of periodic financial filings with the Authority.

 (d) Authority approval of self-insurance status is subject to the issuance of a self-insurance certificate to the motor carrier by the Department of Transportation as required under 67 Pa. Code § 223.5 (relating to certificate) for vehicles registered in this Commonwealth.

§ 1025.5. Standards for adjustment and payment of claims.

 Common carriers by motor vehicle, who are responsible to the public for adjustment or payment of bodily injury, property damage or cargo damage claims, or both, shall comply with fair claims settlement and compromise practices. The following practices are prohibited:

 (1) Misrepresenting pertinent facts relating to claims at issue.

 (2) Failing to acknowledge and act promptly upon written or oral communications with respect to insurance claims.

 (3) Failing to adopt and implement reasonable standards for the prompt investigation of claims.

 (4) Refusing to pay claims without conducting a reasonable investigation based upon available information.

 (5) Failing to affirm or deny responsibility for claims within a reasonable time after proof of loss statements have been completed and communicated to the carrier or its representative.

 (6) Not attempting in good faith to effectuate prompt, fair and equitable settlements of claims in which the carrier's liability has become reasonably clear.

 (7) Compelling persons to institute litigation to recover amounts due by offering substantially less than the amounts due and ultimately recovered in actions brought by those persons.

 (8) Making claim payments to claimants not accompanied by a statement defining which payments are being made.

 (9) Making known to claimants a policy of appealing from arbitration awards in favor of claimants to induce or compel them to accept settlements or compromises less than the amount awarded in arbitration.

 (10) Delaying the investigation or payment of claims by requiring a physician to submit a preliminary claim report and then requiring the subsequent submission of formal proof of loss forms, both of which submissions contain substantially the same information.

 (11) Failing to promptly provide a reasonable explanation in relation to the facts or applicable law for denial of a claim or for the offer of a compromise settlement.

§ 1025.6. Additional requirements.

 (a) Providers of policies of insurance and surety bonds shall summarize as a separate attachment from its policy any and all deviations of the policy from the standard ISO form. The insurer shall have the insured sign the attachment to the policy.

 (b) If a provider of a policy of insurance or surety bond is a surplus lines carrier, a Form 1609-PR of the Insurance Department shall be submitted along with the Form E. The Authority reserves the right to have surplus line carriers demonstrate denial of coverage from insurance carriers that the Authority may be aware is providing admitted coverage, if any.

CHAPTER 1027.  SALE OF RIGHTS

Sec.

1027.1.	Purpose.
1027.2.	Definitions.
1027.3.	Authority approval of sale of rights.
1027.4.	Certificate required for medallion sales.
1027.5.	Agreement of sale.
1027.6.	Application for sale of transferable rights.
1027.7.	Required application information.
1027.8.	Additional application requirements.
1027.9.	Financial fitness generally.
1027.10.	Regulatory compliance review.
1027.11.	Authority review.
1027.12.	Approval process and closing on sale.
1027.13.	Settlement sheet.
1027.14.	Attachment of medallion.
1027.15.	Commencement of service.

§ 1027.1. Purpose.

 This chapter establishes and prescribes Authority regulations and procedures for the sale of certain rights issued by the Authority.

§ 1027.2. Definitions.

 The following words and terms, when used in this chapter, have the following meanings, unless the context indicates otherwise:

 Medallion taxicab certificate—A certificate granting the owner the right to operate one or more medallion taxicabs under this part.

 Partial-rights taxicab certificate—A certificate granting the owner the right to operate one or more partial-rights taxicabs under this part.

 Transferable rights—Only the following rights are transferable:

 (i) A certificate of public convenience to provide partial-rights taxicab service.

 (ii) A certificate of public convenience to provide dispatching services.

 (iii) A medallion.

 (iv) A limousine certificate of public convenience under Subpart C (relating to limousines)

 Sale—Any change in ownership of a transferable right, including a change in ownership of securities or other ownership interests in an entity that owns transferable rights.

 Transfer fee—The nonrefundable fee charged by the Authority to review an application to sell transferable rights.

§ 1027.3. Authority approval of sale of rights.

 (a) Sale of transferable rights. The sale of transferable rights without advance approval of the Authority is void by operation of law.

 (b) Sale of securities in transferable rights. The sale of any number of securities or other ownership interest in an entity that owns transferable rights will be considered a sale under this chapter.

 (c) New certificate number. The Authority may assign a new certificate number to the rights sold to an approved buyer.

§ 1027.4. Certificate required for medallion sales.

 (a) The proposed buyer of a medallion must own a medallion taxicab certificate on or before the date of transfer.

 (b) A proposed buyer that does not own a medallion taxicab certificate on the date the sale application is filed shall request a new medallion taxicab certificate through the sale application as provided in § 1027.6 (relating to application for sale transferable rights).

§ 1027.5. Agreement of sale.

 (a) The parties to a proposed sale of transferable rights shall complete an agreement of sale detailing the terms of the transaction, including provisions required by this chapter, and file the agreement with the Director.

 (b) An agreement of sale for transferable rights is void by operation of law if not executed by all parties in the presence of the Director or a designee.

§ 1027.6. Application for sale of transferable rights.

 (a) Application documents.

 (1) To initiate a sale, the owner and proposed buyer shall file an original and two copies of Form No. SA-1 ''Sale Application,'' the agreement of sale or transfer and other documents required by this chapter. The proposed buyer will be considered the applicant. The SA-1 is available at www.philapark.org/tld.

 (2) The SA-1 shall be filed in person with the Director.

 (3) The Director will refuse to accept an application which is incomplete for any reason.

 (4) Upon acceptance, the Director will submit a copy of the application documents to the Clerk and an application docket number will be assigned.

 (b) Application signatures.

 (1) Both parties to the sale shall execute the SA-1 in the presence of the Director or a designee.

 (2) Except for individuals, an original executed and notarized resolution from the buyer and seller authorizing the execution of the sale documents must be included with the filing of the SA-1.

 (3) The Authority may permit an SA-1 to be executed by an attorney-in-fact if the owner or proposed buyer are unable to appear and as provided in § 1001.28 (relating to power of attorney), in which case the owner will be required to attend the closing on the sale.

 (c) Verification and payment. The SA-1 must be verified under § 1001.36 (relating to verification and affidavit) and be accompanied by payment of the transfer fee as provided in §§ 1001.42 and 1001.43 (relating to mode of payment to the Authority; and Authority fee schedule).

 (d) Multiple rights. The SA-1 may be used to sell an unlimited number of transferable rights from one owner to one proposed buyer. The transfer fee required under subsection (c) will be based on the higher of the aggregate value of the sale or the transfer fee for each right as provided in the Authority's fee schedule.

 (e) Broker. Documents intended for submission to the Director as part of the sale process must be prepared by a broker registered with the Authority as provided in Chapter 1029 (relating to brokers) or an attorney admitted to practice law by the Supreme Court of Pennsylvania.

§ 1027.7. Required application information.

 (a) The Form SA-1. The SA-1 is a multipurpose form intended for use in the sale of different transferable rights and shall be completed by the broker or attorney, or both, in a manner consistent with the intentions of the sale. For example, an SA-1 used only for the sale of a partial-rights certificate need not complete the portion of the application which seeks medallion numbers.

 (b) Required information. Except as provided in subsection (a), the completed SA-1 must include the information required by the Authority, including the following:

 (1) The medallion numbers.

 (2) The certificate numbers.

 (3) The name of the proposed buyer and contact information, including a telephone number, an email address and a facsimile number.

 (4) If the proposed buyer is a nonindividual person, a contemporaneous certificate of good standing for the proposed buyer issued by the Corporation Bureau within 30 days of filing the SA-1.

 (5) The name of any holding company as defined in § 1011.2 (relating to definitions) having an interest in the proposed buyer and a contemporaneous certificate of good standing for the holding company from the Corporation Bureau, or similarly authorized entity in another jurisdiction in the United States.

 (6) The trade name, if any, of the proposed buyer and a copy of the trade name registration certificate, if applicable.

 (7) The mailing address and physical address of the proposed buyer.

 (8) A statement of the proposed buyer's corporate purpose, if applicable.

 (9) A list, including name, home address and telephone numbers for current corporate officers, directors, stockholders, key employees and persons with controlling interests as defined in § 1011.2, if applicable.

 (10) A list of all Authority, PUC and Federal common carrier rights held by the proposed buyer and any of the persons listed in response to paragraph (9), including taxicab medallions.

 (11) The name, address, telephone number, facsimile number and email address of any attorney assisting the proposed buyer with the application process, together with an acknowledgement that § 1029.3 (relating to use of attorney) has been reviewed by the proposed buyer.

 (12) A certified criminal history report from any jurisdiction in which the following persons have lived, including part-time residences, in the preceding 5 years through the date of application:

 (i) An individual proposed buyer.

 (ii) An individual with a controlling interest in the proposed buyer.

 (iii) An individual with a controlling interest in the holding company of a proposed buyer.

 (iv) A key employee.

 (13) A verified statement indicating that the persons identified in paragraph (11) have not been subject to a conviction as defined in § 1011.2 and that the proposed buyer has read and understands the prohibitions of ownership as provided in § 1011.5 (relating to ineligibility due to conviction or arrest).

 (14) Verified statements from the owner and proposed buyer confirming that each are in compliance with § 1011.7 (relating payment of outstanding fines, fees, penalties and taxes).

 (15) The Federal Tax Identification number for the following persons:

 (i) The owner of the rights.

 (ii) The proposed buyer.

 (iii) Persons with a controlling interest in the owner or a proposed buyer.

 (iv) Key employees of an owner or proposed buyer.

 (16) The Philadelphia Business Privilege License numbers issued to the owner and proposed buyer.

 (c) Proof of ownership. The Authority may require the owner to prove ownership of the right or rights subject to sale.

§ 1027.8. Additional application requirements.

 (a) Agreement of sale. The agreement of sale required under this chapter must include the information required by the Authority, including the following:

 (1) The parties to the transaction.

 (2) A description of the transaction.

 (3) The identification number of each right subject to sale.

 (4) The total consideration for the sale and for each right transferred if the sale involves multiple rights in United States dollars, and any payment terms required by the Authority, including the following:

 (i) The assumption of any loan or debt.

 (ii) Contingencies and nonmonetary consideration.

 (iii) Monetary consideration.

 (5) An acknowledgement initialed by all parties that the agreement is subject to the laws and jurisdiction of the Commonwealth, the act, this part and orders of the Authority.

 (b) Execution of agreement of sale.

 (1) The proposed agreement of sale must be signed at one time by all parties before the Director or a designee on or before the date the SA-1 is filed.

 (2) In emergency situations, the Authority may permit an agreement of sale to be executed by an attorney-in-fact if the owner or proposed buyer are unable to appear and as provided in § 1001.28 (relating to power of attorney). The emergency must present an unexpected and complete impediment to the signor's ability to adhere to paragraph (1). For example, a party will not be permitted to use a power of attorney because the necessary signor lives a great distance from Philadelphia or is out of the country or on vacation.

 (c) Removal of liens. If a notice of lien relating to a medallion which is the subject of a proposed sale was filed under 13 Pa.C.S. (relating to commercial code), the Authority will not approve a medallion sale until evidence of a lien's removal is submitted, unless the Authority is notified by the lienholder that the lien will be satisfied from the proceeds of the sale.

 (d) Continuing service. The owner of the rights subject to sale shall confirm that the rights will remain in active service pending review of the application, unless prohibited or authorized for suspension by a provision of this part or an order of the Authority.

 (e) Notice.

 (1) A notice of applications will be published in the Pennsylvania Bulletin as provided in § 1003.53 (relating to applications requiring notice).

 (2) The parties to the sale will receive notices related to the SA-1 as provided in § 1001.51 (relating to service by the Authority).

 (f) Loan documents.

 (1) Any consideration identified in subsection (a)(4) that is provided to a proposed buyer must be evidenced in the form of written agreements. For example, the loaning of cash money to a proposed buyer by a bank must be confirmed through loan documents executed by the borrowing party.

 (2) The documents required under paragraph (1) shall be submitted to the Director at the time the SA-1 is filed, except that specific financial information that cannot be known until on or about the closing date for the sale may be left blank. The final loan documents must be executed at the closing on the sale.

§ 1027.9. Financial fitness generally.

 (a) The Authority will review the financial fitness of the proposed buyer, including a review of the following:

 (1) For proposed buyers of medallions or partial-rights certificates, bank statements of the proposed buyer or the bank statements of the holder of the stock or membership certificate evidencing ownership of a bank account holding not less than the greater of $5,000 or 2% of the sale price in unencumbered and available funds. The funds under review must have been in the bank account for at least 6 months.

 (2) For proposed buyers of dispatcher certificates, bank statements of the proposed buyer or the bank statements of the holder of the stock or membership certificate evidencing ownership of a bank account holding not less than the greater of $25,000 or 2% of the sale price in unencumbered and available funds. The funds under review must have been in the bank account for at least 6 months.

 (3) The credit report of each of the persons identified in § 1027.7(b)(11) (relating to required application information) evidencing a credit score of at least 600 for each person.

 (4) The absence of any outstanding and unappealed civil judgments against each of the parties required to submit a criminal history report under § 1027.7(b)(11).

 (5) The Authority may require the submission of additional financial information necessary to determine the financial fitness of a proposed buyer.

§ 1027.10. Regulatory compliance review.

 (a) An SA-1 will be denied if the proposed buyer has a regulatory compliance record with the Authority or the PUC which evidences a disregard for the public interest.

 (b) The SA-1 will be denied if the proposed buyer or any person with a controlling interest in the proposed buyer or a key employee of the proposed buyer has been subject to the suspension, revocation or cancellation of rights issued by the Authority or common carrier rights issued by the PUC during the 1-year period immediately preceding the date the SA-1 was filed with the Authority.

§ 1027.11. Authority review.

 (a) Notice of sale will be published in the Pennsylvania Bulletin.

 (b) The SA-1 will be reviewed as provided in § 1003.51 (relating to applications generally).

 (c) The SA-1 will be denied if the proposed buyer or any person with a controlling interest in the proposed buyer or a key employee of the proposed buyer is in violation of any provision of this part or if the Authority determines that the sale is not in the public interest. The SA-1 may be denied if the owner is in violation of any provision of this part.

 (d) The Authority will review the terms of any loan associated with an SA-1 and deny the application in the circumstances set forth in this subsection. The terms of any loan associated with a SA-1 are likely to lead to a condition of default by the proposed buyer. The Authority will specifically review the following provisions of any loan agreement to assure it does not conflict with the public interest:

 (1) The term.

 (2) The interest rate or rates, including any adjustable rate or balloon provisions.

 (3) Late payment grace periods.

 (4) Conditions of default.

 (5) Periods in which defaults may be cured.

 (6) The qualifications, experience and history of the lender related to commercial loans and loans to public utilities.

§ 1027.12. Approval process and closing on sale.

 (a) If the Director determines that a proposed buyer of rights is qualified as provided in the act, this part or an order of the Authority, a recommendation to approve the sale will be presented to the Authority for approval at its next regularly scheduled meeting. The Authority may require that proposals from the Director as provided in this section first be presented to a committee of the Board at a public meeting.

 (b) Upon approval of the sale by the Authority, the Director will schedule the parties to meet at a time and location where an Authority staff member will witness the closing of the transaction.

 (c) An Authority staff member shall witness the execution of each document by the owner and proposed buyer, or their designated agents. Any closing not witnessed by Authority staff is void as provided in sections 5711 (c)(5) and 5718 of the act (relating to power of authority to issue certificates of public convenience; and restrictions).

 (d) If the subject of the sale is a medallion that is the only medallion issued to the owner's medallion taxicab certificate, that certificate will be cancelled upon completion of the closing on the sale of the medallion. For example, if the owner of only one medallion seeks to sell the medallion through the process provided in this chapter, the owner's medallion taxicab certificate will be cancelled upon closing on the sale of the medallion.

 (e) The Authority will issue a new medallion taxicab certificate to the new medallion owner as part of the closing process if requested by the proposed buyer as provided in § 1027.4(b) (relating to certificate required for medallion sales).

 (f) A medallion subject to a completed closing may not be transferred or sold for 1 year from the date of closing.

§ 1027.13. Settlement sheet.

 (a) The owner and proposed buyer shall use the Form SA-2 ''Standard Settlement Sheet'' at any closing on the sale of rights. The SA-2 is available on the Authority's web site at www.philapark.org/tld.

 (b) The SA-2 must include the information required by the Authority, including the following:

 (1) The names and addresses of the owner and proposed buyer.

 (2) The names and address of the brokers or attorneys used in the transaction.

 (3) The name and address of the lender and a designated contact person employed by the lender, if any.

 (4) A copy of all certificates or other documents authorizing the lender to make commercial loans in this Commonwealth.

 (5) The amount, term and interest rate of any loan used to purchase the rights.

 (6) The medallion numbers.

 (7) The certificate numbers.

 (8) The total consideration for the rights to be sold and any payment terms, including loan contingencies and nonmonetary consideration.

 (9) An allocation of funds expended in the transaction.

 (10) The fees and costs associated with the sale, including those payable to any broker or attorney, or both.

 (11) Signatures of the owner and proposed buyer, or their designated agents, and the brokers.

§ 1027.14. Attachment of medallion.

 Upon the completion of the closing on the sale of a medallion, the Enforcement Department will schedule a date and time to attach the medallion to the taxicab designated by the owner in a manner consistent with § 1013.2 (relating to attachment of a medallion).

§ 1027.15. Commencement of service.

 A regulated party shall, within 30 days from the date of receipt of a certificate, begin operating and furnishing service. If it has not commenced operating and furnishing the authorized service within 30 days, appropriate proceedings shall be initiated to terminate the certificate unless, upon advanced written permission as provided in § 1011.14 (relating to voluntary suspension of certificate), the time for commencement of service is extended.

CHAPTER 1029. BROKERS

Sec.

1029.1.	Purpose and definitions.
1029.2.	Use of broker.
1029.3.	Use of attorney.
1029.4.	Ineligible persons for broker certification.
1029.5.	Broker registration.
1029.6.	Broker training.
1029.7.	Broker testing.
1029.8.	Broker registration approval.
1029.9.	Broker representation letter.
1029.10.	Broker agreements required.
1029.11.	Professional liability insurance.
1029.12.	Broker duties.
1029.13.	Disclosure of interest.
1029.14.	Broker conduct and obligations.
1029.15.	Duty to deposit money belonging to another into escrow account.
1029.16.	Nonwaiver of escrow duty.
1029.17.	Deadline for depositing money into escrow account.
1029.18.	Escrow account.
1029.19.	Prohibition against commingling or misappropriation.
1029.20.	Procedure when entitlement to money held in escrow is disputed.
1029.21.	Escrow records.
1029.22.	Broker in possession of medallion.

§ 1029.1. Purpose and definitions.

 (a) This chapter establishes and prescribes Authority regulations and procedures for the registration of individuals as brokers for the sale and transfer of medallions and certificates. Unless the context indicates otherwise, the provisions of this chapter apply to the sale of certificates of public convenience or medallions as provided by this subpart and Subpart C (relating to limousines).

 (b) An individual authorized to act as a broker by the Authority on ______ , (Editor's Note: The blank refers to the effective date of adoption of this proposed rulemaking.) shall immediately comply with this chapter and complete the training required under § 1029.6 (relating to broker training) before the first registration renewal required under § 1011.3 (relating to annual rights renewal process).

 (c) The following words and terms, when used in this chapter, have the following meanings, unless the context indicates otherwise:

 Broker—An individual authorized by the Authority through current registration to prepare application related documents, appear at settlement and otherwise act on behalf of a party as to matters related to the sale of transferable rights.

§ 1029.2. Use of broker.

 (a) A broker shall be used by the parties to the sale of rights, except as provided in § 1029.3 (relating to use of attorney). A single broker may represent both parties in a transaction. The Authority will maintain a list of brokers, which may be obtained at www.philapark.org/tld.

 (b) A person may not act as a broker without having been registered by the Authority under this chapter.

§ 1029.3. Use of attorney.

 A party may use an attorney admitted to practice law before the Supreme Court of Pennsylvania, in lieu of a broker.

§ 1029.4. Ineligible persons for broker certification.

 An applicant is ineligible to be a broker if in violation of the act, this part or an order of the Authority, including the following:

 (1) Upon conviction or arrest as provided in § 1011.5 (relating to ineligibility due to conviction or arrest).

 (2) The applicant does not speak, read and write the English language sufficiently to draft and review transactional documents as required by the act, this part or an order of the Authority.

 (3) The applicant provides false information in any document submitted to the Authority.

 (4) The applicant is in violation of § 1011.7 (relating to payment of outstanding fines, fees, penalties and taxes).

 (5) The applicant is 20 years of age or younger.

 (6) The applicant has failed to satisfactorily complete broker training and testing as provided in this chapter.

§ 1029.5. Broker registration.

 (a) General. To obtain a broker registration, an individual shall complete and file a Form BR-1 ''Broker Application,'' along with the application fee as provided in §§ 1001.42 and 1001.43 (relating to mode of payment to the Authority; and Authority fee schedule). The BR-1 may be obtained on the Authority's web site at www.philapark. org/tld.

 (b) BR-1 application. The completed BR-1 must be verified as provided in § 1001.36 (relating to verification and affidavit) and be filed with the Director in person and include the information required by the Authority, including the following:

 (1) The name of the applicant and contact information, including a mailing address, a telephone number, an email address and a facsimile number.

 (2) A list of all Authority rights, common carrier rights issued by the PUC, and other transportation rights issued by any jurisdiction outside of this Commonwealth in which the applicant has any controlling interest.

 (3) The name, address, telephone number, facsimile number and email address of any attorney or broker, or both, assisting the applicant through the Authority's broker registration process.

 (4) A complete certified criminal history report as provided in § 1011.2 (relating to definitions), including any jurisdiction in which the following individuals have lived during the last 5 years:

 (i) The applicant.

 (ii) Each key employee of the applicant.

 (5) A written statement verified as provided in § 1001.36 (relating to verification and affidavit), which provides that:

 (i) The applicant and each key employee have not been subject to a conviction as provided in § 1011.2.

 (ii) The applicant and each key employee are in compliance with § 1011.7 (relating to payment of outstanding fines, fees, penalties and taxes).

 (iii) The applicant and each key employee are current on all reports due in relation to other rights issued by the Authority.

 (iv) The applicant can comply with the requirements of this chapter.

 (6) A completed original of Form No. BR-5 ''Business Experience Questionnaire.'' A copy of the DSP-3 may be obtained on the Authority's web site at www.philapark. org/tld.

 (7) The applicant's Social Security number.

 (8) The Philadelphia Business Privilege License numbers issued to the applicant.

 (9) A copy of the applicant's Social Security card or documents confirming a legal permanent resident status or an alien authorized to work status, if applicable.

 (10) The applicant's driver's license or other government issued photographic identification.

 (11) A resume detailing the applicant's work history for the 5 years preceding the filing of the BR-1 and qualifications to be brokers.

§ 1029.6. Broker training.

 (a) Upon submission of a BR-1 application under § 1029.5 (relating to broker registration), an applicant will be scheduled by the Authority to attend an in-class training program. The Authority, or its authorized agent, will conduct the training.

 (b) Broker training will consist of a minimum of 2 hours of instruction developed to address all areas of the Authority's regulations with emphasis on the following subjects:

 (1) Eligibility to be a certificate owner, dispatcher and medallion owner.

 (2) The forms and records required to complete a sale of rights.

 (3) An overview of frequently encountered subjects in the Authority's regulations, including the following:

 (i) Authority regulations governing certificate owners.

 (ii) Authority regulations governing equipment.

 (iii) Penalties for violation of Authority regulations.

 (iv) An overview of the administrative process related to the sale of rights.

 (v) The identification and address of the Authority office responsible for administering the act.

§ 1029.7. Broker testing.

 (a) Upon written notification from the Authority confirming the applicant's completion of broker training under § 1029.6 (relating to broker training), the applicant will be scheduled by the Authority for broker testing.

 (b) The broker test will focus on the subjects addressed during broker training.

 (c) The Authority will develop a test to assure that applicants for broker registration understand the information presented during training as provided in § 1029.6.

 (d) The test will be administered in the English language. The assistance of interpreters will not be permitted.

 (e) Except as limited under this chapter, the test may be administered in a manner and in a form deemed appropriate by the Authority. The test may include:

 (1) Questions requiring a written response.

 (2) Multiple choice questions.

 (3) Oral questions.

 (4) The demonstration of an ability to complete all of the documents necessary to sell transferable rights.

 (5) The demonstration of an ability to read, write and speak the English language as required by this part.

 (f) An applicant may take the test required by this chapter more than three times.

 (g) Failure to pass the test required under this section within 90 days of the filing of the BR-1 application as provided in § 1029.5 (relating to broker registration) will render the application void.

 (h) Upon the denial or voiding of a BR-1 as provided in this chapter, an applicant may not reapply for registration for 6 months.

§ 1029.8. Broker registration approval.

 (a) If the BR-1 and related broker application documents demonstrate that the applicant is in compliance with the Authority's regulations and the applicant has passed the broker testing under § 1029.7 (relating to broker testing), the Authority will issue a broker registration letter to the applicant and place the applicant's name on the list of brokers maintained by the Authority.

 (b) The broker registration letter will confirm the individual's broker status with the Authority and list an expiration date, which will be 1 year from the date of issuance, and contain other information and guidance as the Authority deems appropriate.

 (c) The broker registration letter shall be displayed prominently in the broker's office.

 (d) The broker registration letter may be served upon the broker by email.

§ 1029.9. Broker representation letter.

 A broker retained by a party to a sale of rights subject to the act shall file Form BR-2 ''Broker Representation Letter'' with the Authority on or before the date a sale application is filed with the Authority. The BR-2 may be obtained on the Authority's web site at www.philapark. org/tld.

§ 1029.10. Broker agreements required.

 (a) A broker shall have a written agreement with each client that clearly identifies the broker's client or clients, the scope of services to be performed and the consideration to be paid by each client upon completion of the closing on the sale as provide § 1027.12 (relating to approval process and closing on sale).

 (b) A broker shall confirm that a power of attorney signed by a client complies with § 1001.28 (relating to power of attorney).

 (c) A broker may not offer an Authority issued right for sale unless authorized in advance and in writing by the owner of the right.

 (d) A broker agreement that creates an exclusive listing relationship must include as a signed and notarized addendum Form BR-3 ''Broker Exclusive Listing'' to confirm the understanding of a broker's client or clients that an exclusive relationship exists and its term. The BR-3 may be obtained at www.philapark.org/tld. An exclusive listing may not be extended beyond the termination date in the BR-3 unless a new BR-3 is signed and dated by the client as provided in this section.

 (e) If a broker intends on participating in a sale of rights as an insurance broker, automobile dealer or in some other capacity in addition to that of a broker, the exact nature of the nonbroker roll, and the consideration associated with that roll, shall be disclosed in writing to the broker's client and filed with the Authority along with the BR-2. If the nonbroker roll is developed after the filing of the BR-2, the disclosure shall be made to the client and filed with the Authority immediately.

§ 1029.11. Professional liability insurance.

 (a) A broker shall continuously maintain professional liability insurance in the amount of $3,000,000 including coverage for errors and omissions caused by the broker's negligence in the performance of duties with limits of liability of $1,000,000 per incident and $3,000,000 aggregate from an insurer authorized to do business in this Commonwealth.

 (b) A broker registration will not be issued or renewed unless confirmation of required insurance has been filed with the Authority as provided in § 1025.2 (relating to insurance forms and procedures).

§ 1029.12. Broker duties.

 The following duties are owed by a broker to a client in the sale of rights subject to the act and may not be waived:

 (1) Exercising reasonable professional skill and care.

 (2) Dealing honestly and in good faith and maintain confidentiality.

 (3) Presenting, in a reasonably practicable period of time, all offers, counteroffers, notices and communications to and from the parties in writing, unless the rights at issue are subject to an existing SA-1 and the seller has agreed in a written waiver.

 (4) Providing advanced written disclosure in a reasonably practicable period of time of all conflicts of interest and financial interests required by this chapter.

 (5) Advising the client to seek expert advice on matters about the sale that are beyond the broker's expertise.

 (6) Ensuring that all services are provided in a reasonable, professional and competent manner.

 (7) Keeping the client informed about offers to purchase rights, the sale and tasks to be completed.

 (8) Providing assistance with document preparation.

 (9) Advising the client about compliance with laws and regulations pertaining to the rights at issue without rendering legal advice.

 (10) Providing a copy of all documents prepared or maintained by the broker on behalf of the client to the client at or before the date the sale closes or otherwise immediately upon request.

§ 1029.13. Disclosure of interest.

 (a) A broker may only participate in a transaction involving rights subject to the act in which the broker has an interest after first disclosing that interest in writing to all parties concerned.

 (b) A broker may not represent, or purport to represent, more than one party to a sale of rights subject to the act without the written consent of all parties concerned.

 (c) A broker who provides financial services, insurance or mechanical repair services may not require a client to use any of these services.

 (d) If the client chooses to use any of the services referenced in subsection (c), the broker shall provide the client with a written disclosure of any financial interest, including a referral fee or commission that the broker may earn. The disclosure required under this paragraph shall be made at the time the broker first advises the client that an ancillary service is available or when the broker first learns that the client will be using the service.

 (e) A broker has a continuing obligation to disclose to a client, any conflict of interest in a reasonably practicable period of time after the broker learns or should have learned of the conflict of interest.

§ 1029.14. Broker conduct and obligations.

 (a) A broker may not give assurances or advice concerning an aspect of rights subject to sale that the broker knows, or reasonably should be expected to know, is incorrect, inaccurate or improbable.

 (b) A broker is not required to independently verify the accuracy or completeness of any representation made by the clients to a sale which the broker reasonably believes to be accurate and reliable.

 (c) A broker is not liable for the acts of a client unless the client is acting at the express direction of the broker or as a result of a representation by a broker reasonably relied on by the client.

 (d) A broker shall keep and maintain records related to its clients and each sale in which it participates in any manner as provided in § 1011.11 (relating to record retention), including the following records:

 (1) The names and addresses of buyers, sellers, lenders or lienholders, if any.

 (2) The purchase price.

 (3) The amount of deposit paid on contract.

 (4) The amount of commission paid to broker.

 (5) The expenses of procuring financing, if any.

 (6) Closing statements.

 (e) Upon suspension or cancellation of a broker's registration with the Authority, no other broker may use the services of the former broker, as an employee or otherwise, to perform broker related services.

 (f) An advertisement placed by a broker related to the sale of rights subject to the act must indicate that the advertiser is a registered broker. A broker may not use deceptive or misleading advertising.

§ 1029.15. Duty to deposit money belonging to another into escrow account.

 A broker shall deposit money that the broker receives belonging to another into an escrow account in a Federally or State-insured bank or depository to be held pending consummation of the sale of rights subject to the act or a prior termination thereof that does not involve a dispute between the parties to the sale, at which time the broker shall pay over the full amount to the party entitled to receive it.

§ 1029.16. Nonwaiver of escrow duty.

 A broker's escrow duty may not be waived or altered by an agreement between the parties to the sale, between the broker and the parties, or between the broker and other brokers who may be involved in the sale.

§ 1029.17. Deadline for depositing money into escrow account.

 (a) Except as provided in subsection (b), a broker shall deposit money belonging to another into one escrow account by the end of the next business day following its receipt in the broker's office.

 (b) If the money of another has been tendered to the broker in the form of a check under an offer to purchase or lease a right subject to the act, the broker may, with the written permission of both the buyer and the seller or the lessee and the lessor, refrain from depositing the money into an escrow account by the deadline in subsection (a) pending the seller's or lessor's acceptance of the offer. In those cases, the broker shall deposit the check into an escrow account within 1 business day of the seller's or lessor's acceptance of the offer.

 (c) A broker shall notify each client of the bank's name, address and the account number of each account holding escrowed funds related to the sale.

 (d) Upon request, a broker shall notify the owner of the escrowed funds of the name, address and account number of the account holding in escrow. For purposes of this subsection, the owner of the escrowed funds is the party that provided the funds to the broker for placement in escrow.

§ 1029.18. Escrow account.

 (a) A broker escrow account shall:

 (1) Be maintained in a Federally- or State-insured bank or recognized depository.

 (2) Designate the broker as trustee.

 (3) Provide for the withdrawal of funds without prior notice.

 (4) Be used exclusively for escrow purposes.

 (b) If money is expected to be held in escrow for more than 6 months, the broker is encouraged to deposit the money into an interest-bearing escrow account. Interest earned on an escrow account shall be held and disbursed, pro rata, in the same manner as the principal amount, unless the parties to the transaction direct otherwise by agreement. A broker may not claim the interest earned on an escrow account.

 (c) Upon request, a broker shall provide the Authority with its records related to any escrow accounts maintained during the past 5 years or authorize the release of the records by each bank or recognized depository.

§ 1029.19. Prohibition against commingling or misappropriation.

 (a) Except as provided in subsection (b), a broker may not commingle money that is required to be held in escrow or interest earned on an escrow account, with business, personal or other funds.

 (b) A broker may deposit business or personal funds into an escrow account to cover service charges assessed to the account by the bank or depository where the account is located or to maintain a minimum balance in the account as required by the regulations of the bank or depository.

 (c) A broker may not misappropriate money that is required to be held in escrow or interest earned on an escrow account, for business, personal or other purposes.

§ 1029.20. Procedure when entitlement to money held in escrow is disputed.

 If a dispute arises between the parties to a sale over entitlement to money that is being held in escrow by a broker, the broker shall retain the money in escrow until the dispute is resolved. If resolution of the dispute appears remote without legal action, the broker may, following 30 days' notice to the parties, petition the Philadelphia Court of Common Pleas to interplead the rival claimants.

§ 1029.21. Escrow records.

 A broker shall keep records of monies received by him that are required to be held in escrow and shall produce the records for examination by the Authority or its authorized representatives upon written request. The records must contain the following information:

 (1) The name of the party from whom the broker received the money.

 (2) The name of the party to whom the money belongs.

 (3) The name of the party for whose account the money is deposited.

 (4) The date the broker received the money.

 (5) The date the broker deposited the money into the escrow account.

 (6) The date the broker withdrew the money from the escrow account.

§ 1029.22. Broker in possession of medallion.

 If a medallion has been deposited with a broker, the broker shall deliver the medallion to the Authority for placement into storage within 48 hours of receipt.

Subpart C. LIMOUSINES

Chap.

1051.	GENERAL PROVISIONS
1053.	STANDARD CLASSIFICATIONS OF LIMOUSINE SERVICE
1055.	VEHICLES AND EQUIPMENT REQUIREMENTS
1057.	LIMOUSINE DRIVERS
1059.	APPLICATIONS AND SALE OF RIGHTS
1061.	BROKERS
1063.	TARIFFS
1065.	INSURANCE REQUIRED

CHAPTER 1051. GENERAL PROVISIONS

Sec.

1051.1.	Purpose.
1051.2.	Definitions.
1051.3.	Annual rights renewal process.
1051.4.	Annual assessments and renewal fees.
1051.5.	Ineligibility due to conviction or arrest.
1051.6.	Payment of outstanding fines, fees, penalties and taxes.
1051.7.	Facility inspections.
1051.8.	Limousine service limitations.
1051.9.	Discrimination in service.
1051.10.	Record retention.
1051.11.	Aiding or abetting violations.
1051.12.	Interruptions of service.
1051.13.	Voluntary suspension of certificate.
1051.14.	Death or incapacitation of a certificate holder or certain persons with controlling interest.
1051.15.	Power of successors by law.
1051.16.	Limitations.
1051.17.	Application review generally.
1051.18.	Method of operation.

§ 1051.1. Purpose.

 This subpart establishes and prescribes Authority regulations and procedures for limousine service in Philadelphia.

§ 1051.2. Definitions.

 The following words and terms, when used in this subpart, have the following meanings, unless the context indicates otherwise:

 Arrest—Detaining, holding, or taking into custody by police or other law enforcement authorities to answer for an alleged commission of an offense.

 Broker—An individual authorized by the Authority through current registration to prepare application related documents, appear at settlement, and otherwise act on behalf of a party as to matters related to the sale of transferable rights.

 Common carrier—A common carrier by motor vehicle, as defined in 66 Pa.C.S. § 102 (relating to definitions), transporting passengers through a certificate issued by the Authority.

 Controlling interest—

 (i) A controlling interest is an interest in a legal entity, applicant or certificate holder if a person's voting rights under state law or corporate articles or bylaws entitle the person to elect or appoint one or more of the members of the board of directors or other governing board or the ownership or beneficial holding of 5% or more of the securities of the corporation, partnership, limited liability company or other form of legal entity, unless this presumption of control or ability to elect is rebutted by clear and convincing evidence. A member, partner, director, or officer of a corporation, partnership, limited liability company or other form of legal entity, is deemed to have a controlling interest.

 (ii) A person who owns or beneficially holds less than 5% of the securities of a privately held domestic or foreign corporation, partnership, limited liability company or other form of privately held legal entity shall be deemed as having rebutted the presumption of control by clear and convincing evidence.

 Conviction—

 (i) A finding of guilt or a plea of guilty or nolo contendere whether or not a judgment of sentence has been imposed as determined by the law of the jurisdiction in which the prosecution was held relating to any of the following:

 (A) A felony.

 (B) A crime involving moral turpitude.

 (C) A crime requiring registration with the State Police as provided in 42 Pa.C.S. § 9795.1 (relating to registration) or similar statute in any other jurisdiction.

 (D) A crime subject to prosecution under 18 Pa.C.S. Chapter 25 (relating to criminal homicide) or similar statute in any other jurisdiction.

 (E) A crime subject to prosecution under 18 Pa.C.S. Chapter 27 (relating to assault) or similar statute in any other jurisdiction.

 (F) A crime subject to prosecution under 18 Pa.C.S. Chapter 29 (relating to kidnapping) or similar statute in any other jurisdiction.

 (G) A crime subject to prosecution under 18 Pa.C.S. Chapter 31 (relating to sexual offenses) or similar statute in any other jurisdiction.

 (ii) A crime resulting in an order of Accelerated Rehabilitative Disposition, prior to successful completion of the terms of the order.

 (iii) Except as provided in subparagraph (i) and (ii), the term does not include a misdemeanor or summary conviction or any conviction that has been expunged or overturned or for which an individual has been pardoned.

 Crime involving moral turpitude—A crime determined by the Authority to be consistent with the provisions of 22 Pa. Code 237.9 (relating to crimes of moral turpitude).

 Driver history report—A driver's license report containing details about a driver's history including accidents and violations issued by a jurisdiction within the United States.

 Driver's license—A license or permit to operate a motor vehicle issued by the Department of Transportation or similarly authorized government entity in another jurisdiction of the United States.

 Enforcement Department—The department of the TLD created under § 1003.74 (relating to Enforcement Department).

 Exclusive service—Transportation on a given trip when the first or principal person, party or group hiring the vehicle has the exclusive right to determine where, when or if another passenger shall be carried on that trip.

 Federal tax identification number—The Social Security number of an individual or the Employer Identification number of a business entity, fiduciary or other person.

 Holding company—A person, other than an individual, which, directly or indirectly, owns, has the power or right to control or to vote 20% or more of the outstanding voting securities of a corporation or other form of business organization. A holding company indirectly has, holds or owns any such power, right or security if it does so through an interest in a subsidiary or successive subsidiaries.

 Inspector—Enforcement Department uniformed or non-uniformed staff assigned to investigate and enforce the act, this part and orders of the Authority who will be identifiable by an Authority issued badge number.

 Key employee—An individual who is employed in a director or department head capacity and who is empowered to make discretionary decisions that affect the operations of an applicant, certificate holder, or other entity identified by the Authority.

 Limousine—A vehicle meeting the definition provided in section 5701 of the act (relating to definitions).

 Limousine driver—The individual to whom a current and valid limousine driver's certificate has been issued by the Authority under section 5706 of the act (relating to driver certification program).

 Limousine driver's certificate—The original photographic identification card issued by the Authority which confirms that an individual has complied with Chapter 1057 (relating to limousine drivers) and is authorized to provide limousine service under section 5706 of the act.

 Limousine service—The transportation of passengers or offering to transport passengers in a limousine through a certificate or registration issued by the Authority.

 Manager of Administration—The individual appointed to manage the Administration Department of the TLD as provided in § 1003.72 (relating to TLD staffing generally). The Manager of Administration may be contacted at TLD Headquarters or by email at TLDAdmin@philpark. org.

 Manager of Enforcement— The individual appointed to manage the Enforcement Department of the TLD as provided in § 1003.74. The Manager of Enforcement may be contacted at TLD Headquarters or by email at TLDEnforcement@ philpark.org

 Moving violations—Any debt owed the Commonwealth or one its political subdivisions for violations of 75 Pa.C.S. (relating to Vehicle Code), that is not under appeal.

 Proposed buyer—The party seeking to acquire an ownership interest in a certificate.

 Parking violations—Any debt owed to the City of Philadelphia related to a violation of the Philadelphia Traffic Code (12 Phila. Code §§ 100-3012), that is not under appeal.

 Regulated person—A certificate holder, broker, limousine driver, or other person subject to the act, this part or an order of the Authority.

 Rights—A certificate of public convenience, driver's certificate, broker registration or other authorization issued to a regulated party by the Authority under the act.

 Stretched vehicle—A vehicle altered from its originally manufactured condition to expand passenger capacity to 16 passengers or more, including the driver.

 Transfer fee—The fee paid to the Authority for its review of a sale application as provided in Chapter 1059 (relating to applications and sale of rights).

§ 1051.3. Annual rights renewal process.

 (a) Expiration of certificate. All rights will expire annually, including the following:

 (1) A certificate will expire on July 1 of each year.

 (2) A limousine driver's certificate will expire 1 year from its date of issuance or renewal.

 (b) Expired rights.

 (1) Expired rights will be placed out of service and cancelled by the Authority as provided in § 1003.32 (relating to out of service designation).

 (2) Limousine driver certificates that have been expired for 60 days or more will be deemed cancelled.

 (c) Renewal forms.

 (1) Rights issued by the Authority shall be renewed by completing and filing the required renewal form with the Director. Renewal forms may be obtained on the Authority's web site at www.philapark.org/tld or from TLD Headquarters.

 (2) The renewal forms may require the submission of additional information or documents to confirm continuing eligibility under the act, this part or an order of the Authority.

 (3) The renewal forms must be verified as provided in § 1001.36 (relating to verification and affidavit) and filed as follows:

 (i) For limousine certificates, Form LM-1 ''Limousine Renewal'' shall be filed on or before May 15 of each year.

 (ii) For limousine drivers' certificates, Form DR-3 ''Driver Renewal'' shall be filed 60 days before the expiration date printed on the limousine driver's certificate.

 (d) Renewal denial. The Authority will deny renewal of rights in the following circumstances:

 (1) If the owner of the rights subject to renewal fails to complete the renewal process.

 (2) The renewal process reveals information about the renewing person or those with a controlling interest in the renewing person that would result in a denial of an initial application for the rights.

 (3) The renewing person fails to comply with § 1051.4 (relating to annual assessments and renewal fees).

§ 1051.4. Annual assessments and renewal fees.

 (a) Assessments and renewal fees. The owners of rights issued by the Authority shall pay an annual assessment or renewal fee in an amount established each year under section 5707(b) of the act (relating to budget and fees) and as set forth in the Authority's annual fee schedule as provided in § 1001.43 (relating to Authority fees schedule).

 (b) Payment of assessments by certificate holders. The annual assessment for certificate holders is due on or before June 30 of each year.

 (c) Payment of renewal fees by limousine drivers. The annual renewal fee for limousine drivers is due with the filing of the DR-3 as provided in § 1051.3(c)(3)(ii) (relating to annual rights renewal process).

 (d) Late assessment or renewal fee payments.

 (1) An assessment or renewal fee payment will be considered late if not paid before 3 p.m. on the day it is due.

 (2) Rights issued by the Authority will expire at the time an assessment payment becomes late and will be immediately placed out of service by the Authority as provided in § 1003.32 (relating to out of service designation).

§ 1051.5. Ineligibility due to conviction or arrest.

 (a) Except as provided in subsection (e), a person is ineligible to own any interest in any right issued by the Authority if the person, or a person having a controlling interest over the person or a key employee, has been subject to a conviction as defined in § 1051.2 (relating to definitions), in the past 5 years and for 6 months from the date the convicted person completes the sentence imposed, including incarceration, probation, parole and other forms of supervised release.

 (b) If a regulated party owning a transferable right becomes ineligible to hold rights issued by the Authority due to a conviction, the regulated party shall immediately cease use of the rights and initiate the sale of the rights to an eligible person as provided in Chapter 1059 (relating to applications and sale of rights) within 180 days of the conviction.

 (c) A regulated party shall inform the Director within 72 hours of being subject to an arrest or conviction as defined under § 1051.2.

 (d) If a criminal prosecution is initiated against a regulated party for a crime that may lead to a conviction as defined in § 1051.2, the Enforcement Department or trial counsel may initiate a formal complaint against the regulated party as provided in § 1005.11 (relating to formal complaints generally) and seek the immediate suspension of rights pending the conclusion of the criminal proceedings.

 (e) A person subject to an order of Accelerated Rehabilitative Disposition shall be ineligible to own any interest in any right issued by the Authority until the terms of the order have been completed.

§ 1051.6. Payment of outstanding fines, fees, penalties and taxes.

 (a) Regulated persons and applicants for any right issued by the Authority shall pay all assessments, fees, penalties, and other payments due to the Authority under the act, this part or an order of the Authority on schedule, unless the matter related to the payment is under appeal.

 (b) Regulated persons and applicants for any right issued by the Authority shall remain current on the payment of parking violations and moving violations, unless the violation is under appeal.

 (c) Regulated persons and applicants for any right issued by the Authority shall remain current on the payment of taxes due to the Commonwealth or City of Philadelphia, unless under appeal.

 (d) Regulated persons and applicants for any right issued by the Authority shall hold and maintain a Business Privilege License issued by the City of Philadelphia and present a copy of the license to the Authority for inspection upon demand.

 (e) For purposes of this section, regulated persons and applicants include those with a controlling interest in the regulated person or applicant, or both, and key employees.

§ 1051.7. Facility inspections.

 Certificate holders and brokers shall make their operating locations available for inspection by the Authority. A facility inspection may be without prior notice.

§ 1051.8. Limousine service limitations.

 (a) Except as provided in subsection (c), only the following individuals may provide limousine service:

 (1) The owner, if the owner is a limousine driver.

 (2) An employee of the certificate holder who is a limousine driver.

 (3) A limousine driver who leases the limousine directly from the certificate holder.

 (b) A certificate holder shall supervise its limousine to make certain that only those limousine drivers authorized by this section provide limousine service.

 (c) This section does not apply to an individual hired by a funeral home to drive an Authority-certified limousine for funeral related services. The funeral service drivers may not be in violation of § 1051.5 (relating to ineligibility due to conviction or arrest), shall submit to a criminal background check by the TLD and evidence possession of a valid State-issued driver's license.

§ 1051.9. Discrimination in service.

 A regulated person may not refuse service to a member of the public on the basis of gender, sexual orientation, race, religious preference, nationality, age, point of origin, point of destination or to a person with a disability.

§ 1051.10. Record retention.

 (a) Certificate holders and brokers shall maintain for 5 years all records required under the act, this part or an order of the Authority, or otherwise kept in the ordinary course of business, in the English language and in a format capable of being easily produced to the Authority.

 (b) Both paper and electronic records shall be maintained in chronological order by date and time of day.

 (c) Paper records required by this section shall be stored in dry areas protected by a fire suppression system.

 (d) Electronic records required by this section shall be routinely copied and stored at a location that is separate by at least 1 mile from the office where the record originated.

 (e) A regulated party shall produce records maintained under subsection (a) to the Authority upon request. If the records require a special form of software to search or interpret, a regulated party shall make that software available to the Authority.

§ 1051.11. Aiding or abetting violations.

 A person may not aid, abet, encourage or require a regulated party to violate the act, this part or an order of the Authority.

§ 1051.12. Interruptions of service.

 (a) An interruption of limousine service for more than 48 hours shall be reported to the Director in writing within 72 hours of the beginning of the service interruption. The written statement must include the cause of interruption and its probable duration.

 (b) Suspension of limousine service for 30 consecutive days without notice to the Authority will be deemed sufficient cause for cancellation of the rights of the limousine service, except if the suspension is caused by strike or labor difficulties, riot, insurrection, war, government decrees, an act of God or other good cause.

 (c) An order of cancellation entered under this section will not be issued until the certificate holder is given opportunity for a public hearing on a formal complaint as provided in § 1005.11 (relating to formal complaints generally) as to why the rights should not be revoked and cancelled.

§ 1051.13. Voluntary suspension of certificate.

 (a) A certificate holder may place a certificate in a voluntary state of suspension to avoid penalties for violation of § 1051.12 (relating to interruptions of service) subject to the prior approval of the Director who may, in his sole or peculiar discretion as deemed appropriate, attach conditions as may be found necessary or proper.

 (b) A certificate may be placed in voluntary suspended status after a report is issued as provided in § 1051.12.

 (c) A certificate may not be placed in voluntary suspended status for more than 1 year.

 (d) To request approval from the Authority for the voluntary suspension of a certificate, the certificate holder shall file a completed a CPC-1 ''Voluntary Suspension Application'' with the Director and pay the application fee as provided in §§ 1001.42 and 1001.43 (relating to mode of payment to the Authority; and Authority fee schedule). The CPC-1 may be obtained at www.philapark.org/tld.

 (e) Before a CPC-1 is granted, a certificate holder shall be in compliance with § 1051.6 (relating to payment of outstanding fines, fees, penalties and taxes) and pay the entire Authority assessment that will come due during the proposed period of voluntary suspension.

§ 1051.14. Death or incapacitation of a certificate holder or certain persons with controlling interest.

 (a) Definitions. The following words and terms, when used in this section, have the following meanings, unless the context indicates otherwise:

 Incapacitation—A determination by a court that an individual is incapacitated as provided in 20 Pa.C.S. § 5511 (relating to petition and hearing; independent evaluation), or for non-Pennsylvania residents, a substantially similar order from a court of competent jurisdiction.

 (b) Death or incapacitation of an individual certificate holder.

 (1) Upon the death or incapacitation of an individual certificate holder, the rights conferred by the certificate shall continue with the legal representative of the deceased or incapacitated certificate holder for 6 months.

 (2) The legal representative of the deceased or incapacitated certificate holder shall immediately begin the process of finding a qualified person to buy the certificate as provided in Chapter 1059 (relating to applications and sale of rights), including the use of a broker or attorney. Nothing in this section prohibits the legal representative from buying the certificate.

 (3) If an SA-1 for the certificate is not correctly filed, as provided in Chapter 1059 within 90 days of the date the certificate holder died or was declared incapacitated, the certificate will be placed out of service as provided in § 1003.32 (relating to out of service designation) and may be cancelled upon determination of a formal complaint filed by the Enforcement Department or trial counsel.

 (4) If an SA-1 for the certificate is correctly filed within 90 days of the date the certificate holder died or was declared incapacitated, the rights conferred by the certificate shall continue with the legal representative of the deceased or incapacitated certificate holder for the duration of the SA-1 review period and through closing on the sale.

 (c) Death, incapacitation or dissolution of certain persons with controlling interest in a certificate.

 (1) Upon the death, incapacitation or dissolution of a person that owns 5% or more of the certificate holder's securities, the rights conferred by the certificate shall continue with the certificate holder for 3 months.

 (2) The certificate holder shall immediately begin the process of finding a qualified person to buy the securities of the certificate holder referenced in paragraph (1) as provided in Chapter 1059 including the use of a broker or attorney. Nothing in this section prohibits the certificate holder from reacquiring the securities of the person referenced in paragraph (1).

 (3) If an SA-1 for the sale of the securities referenced in paragraph (1) is not correctly filed as provided in Chapter 1059 within 90 days of the date of that person's or persons' death, incapacitation or dissolution, the certificate will be placed out of service as provided in § 1003.32 and may be cancelled upon determination of a formal complaint filed by the Enforcement Department or trial counsel.

 (4) If an SA-1 for the sale of the securities referenced in paragraph (1) is correctly filed, as provided in Chapter 1059, within 90 days of the date of the person's death, incapacitation or dissolution, the rights conferred by the certificate shall continue for the duration of the SA-1 review period and through closing on the sale.

 (d) Ineligibility of successor or legal representative. This section may not be interpreted to permit the operation or use of Authority rights by a person otherwise prohibited from the ability to receive Authority rights. For example, the executor of the estate on a deceased individual certificate holder who would be ineligible to own Authority rights as provided in § 1051.5 (relating to ineligibility due to conviction or arrest), may not operate or supervise the operation of the rights conferred by the certificate.

§ 1051.15. Power of successors by law.

 (a) If a trustee, receiver, assignee, custodian or similar officer or officers is appointed by a court of competent jurisdiction, or is selected by creditors in accordance with provisions of law, with authority to take or retain possession and to operate the property and business of a certificate holder, the officer shall have authority to perform the service authorized in the certificate of the debtor certificate holder for 90 days from his appointment or selection.

 (b) The appointed officer may petition the Authority for authorization to exercise the rights conferred by the certificate for an additional period of time, and the Authority may, for good cause shown, grant authority.

 (c) If the petition is filed within 60 days of the appointment or selection of the petitioner, the appointed officer shall have authority to exercise the rights conferred by the certificate pending a decision by the Authority on the petition. Pertinent orders or decrees of the court having jurisdiction may be deemed cause for the granting of petitions by the Authority.

§ 1051.16. Limitations.

 Operations covered under §§ 1011.15 and 1011.16 (relating to death or incapacitation of a certificate holder or certain persons with controlling interest; and power of successors by law) are subject to the terms and conditions of the certificate of public convenience and may not be conducted without full compliance with the act, this part or an order of the Authority, including insurance coverage.

§ 1051.17. Application review generally.

 Applications for rights required under this subpart will be reviewed as provided in § 1003.51 (relating to applications generally).

§ 1051.18. Method of operation.

 (a) Unless otherwise specifically provided in the certificate of public convenience, a limousine has the rights and is subject to the following conditions:

 (1) To transport persons on an exclusive basis between points as authorized by the certificate, if the order for service is received in advance of the actual rendering of service and not by street hail.

 (2) To charge for service based upon use of a limousine with payment made by a single person or organization and not by passengers as individuals.

 (b) Direct, in-person solicitation of a passenger by the driver or a representative of the driver or certificate holder is prohibited.

CHAPTER 1053. STANDARD CLASSIFICATIONS OF LIMOUSINE SERVICE

Subchap.

A.	CLASSIFICATIONS
B.	LUXURY LIMOUSINE SERVICE
C.	AIRPORT TRANSFER SERVICE
D.	LARGE VEHICLES AND REMOTE CARRIERS

Subchapter A. CLASSIFICATIONS

Sec.

1053.1.

Standard classifications of limousine service.

§ 1053.1. Standard classifications of limousine service.

 (a) The Authority will issue limousine certificates for the several standard classifications of service identified in this chapter. One limousine certificate will permit only one classification of limousine service.

 (b) The following standard classification of types of limousine service is adopted, and the following is hereby recognized as a standard class of limousine service. A certificated service which does not completely correspond to a standard class may be governed, where practicable, by the regulations for the standard class to which it most nearly corresponds:

 (1) Luxury limousine service. Local, nonscheduled common carrier by motor vehicle service for passengers rendered in luxury-type vehicles on an exclusive basis which is arranged for in advance. If the classification of limousine service does not strictly meet the classifications provided in paragraph (2) or (3), the service will be deemed luxury limousine service.

 (2) Airport transfer service. Common carrier service for passengers rendered on a nonexclusive basis which originates or terminates at an airport, railroad station or bus station located in whole or in part in Philadelphia.

 (3) Remote carriers. A limousine operated by the holder of a certificate of public convenience from the PUC that engages in limousine service from any airport, railroad station and hotel located in whole or in part in Philadelphia to a location outside Philadelphia and which is without rights issued by the Authority as provided in section 5741(a)(3) of the act (relating to certificate of public convenience required). For example, a limousine certified by the PUC to provide limousine service in areas outside of Philadelphia may provide that service from the Philadelphia International Airport without a certificate issued by the Authority, provided the to the requirements of this chapter are followed.

Subchapter B. LUXURY LIMOUSINE SERVICE

Sec.

1053.21.	Purpose.
1053.22.	Method of operation.
1053.23.	Vehicle and equipment requirements.
1053.24.	Consumer information.

§ 1053.21. Purpose.

 This subchapter applies to luxury limousine service.

§ 1053.22. Method of operation.

 (a) Unless otherwise specifically provided in this subpart or the certificate of public convenience, a common carrier operating luxury limousine service shall have the rights and be subject to the following conditions:

 (1) To transport persons on an exclusive basis between points as authorized by the certificate, if the order for service is received in advance of the actual rendering of service and not by street hail.

 (2) To charge for service based upon use of a limousine with payment made by a single person or organization and not by passengers as individuals.

 (b) Direct, in-person solicitation of a passenger by the driver or a representative of the driver or certificate holder, is prohibited.

§ 1053.23. Vehicle and equipment requirements.

 (a) Luxury limousine service may be operated only in luxury type vehicles.

 (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 must 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 CD changer, internet access, reading lights, work desk or table, cellular phone, refrigerator, television, VCR, DVD player, extended wheelbase and privacy dividers.

§ 1053.24. Consumer information.

 (a) To provide passengers with the necessary information to file a complaint, luxury limousine certificate holders shall post an Authority-issued complaint decal in a conspicuous location inside the vehicle which lists the telephone number and web site to be used to lodge a complaint or provide the following notice on the receipt for service:

 (b) For complaints and information, contact the Philadelphia Parking Authority's Taxicab and Limousine Division at (215) 683-9471 or TLDEnforcement@philapark. org. Include the company name and CPC# for all complaints.

Subchapter C. AIRPORT TRANSFER SERVICE

Sec.

1053.31.	Purpose.
1053.32.	Method of operation.
1053.33.	Tariff and schedule requirements.
1053.34.	Consumer information.

§ 1053.31. Purpose.

 This subchapter applies to airport transfer service.

§ 1053.32. Method of operation.

 Unless otherwise specifically provided in the certificate of public convenience, a common carrier operating airport transfer service shall have rights and be subject to the following conditions:

 (1) To transport persons on a nonexclusive, individual charge basis from points authorized by the certificate to the airport specified by the certificate, and vice versa.

 (2) Airport transfer service may be offered on a scheduled basis serving specified points according to a published time schedule or on a request basis with the origin or destination of the transportation to or from the airport arranged between the individual and the certificate holder, or on both bases. A material change in a time schedule shall be posted at terminals and in vehicles engaged in service affected by the change for not less than 7 days prior to the effective date of the change.

§ 1053.33. Tariff and schedule requirements.

 An airport transfer carrier operating on a scheduled basis shall file with its tariff a copy of the schedule indicating the points served. Rates must be based on provisions contained in tariffs filed, posted and published under statute and this title.

§ 1053.34. Consumer information.

 To provide passengers with the necessary information to file a complaint, airport transfer service certificate holders shall post an Authority-issued complaint decal in a conspicuous location inside the vehicle which lists the telephone number and web site to be used to lodge a complaint or provide the following notice on the receipt for service:

 For complaints and information, contact the Philadelphia Parking Authority's Taxicab and Limousine Division at (215) 683-9471 or TLDEnforcement@philapark.org. Include the company name and CPC# for all complaints.

Subchapter D. LARGE VEHICLES AND REMOTE CARRIERS

Sec.

1053.41.	Large vehicles.
1053.42.	Remote carriers.
1053.43.	Certain limousine requirements.

§ 1053.41. Large vehicles.

 (a) A limousine, regardless of the classification provided by this chapter, having a seating capacity of 16 or more passengers, including the driver, must hold a valid PUC certificate to provide the same or a substantially similar classification of common carrier by motor vehicle service to hold Authority limousine rights.

 (b) Except for stretched vehicles operating under an Authority luxury limousine certificate, limousines with a seating capacity of 16 or more passengers are exempt from this chapter, except for the registration and regulation requirements of § 1053.43 (c)—(f) (relating to certain limousine requirements).

§ 1053.42. Remote carriers.

 (a) A certificate holder providing service as a remote carrier, regardless of seating capacity, shall adhere to the requirements of § 1053.43 (relating to relating to certain limousine requirements).

 (b) A remote carrier limousine may not provide limousine service from any airport, railroad station and hotel located in whole or in part in Philadelphia without first registering with the Authority and otherwise complying with this chapter.

 (c) A remote carrier may not provide service to points within Philadelphia or otherwise beyond the scope of its PUC certificate without first obtaining an Authority certificate of public convenience as provided in Chapter 1059 (relating to application and sale of rights).

§ 1053.43. Certain limousine requirements.

 (a) Purpose. This section is intended to address limousine service in Philadelphia that is within the jurisdiction of the Authority as provided by the act, but is not commonly considered either Philadelphia service or limousine service by the public or other regulating agencies.

 (b) Certain limousines covered. This section applies to remote carriers.

 (c) Registration.

 (1) The certificate holder shall register each limousine subject to subsection (b) with the Authority by completing and filing with the Director a Form AR-1 ''Alternative Registration'' along with the registration fee as provided in § 1001.42 (relating to mode of payment to the Authority). The AR-1 may be obtained on the Authority's web site at www.philapark.org/tld.

 (2) The Authority registration process will require submission of copies of all relevant PUC certificates or registration documents.

 (3) The registration fee shall be $15 for each limousine registered for ______ , (Editor's Note: The blank refers to the fiscal year in which this proposed rulemaking is adopted.) and, thereafter, as provided in the Authority's fee schedule as provided in § 1001.43 (relating to Authority fee schedule).

 (4) The registration of each limousine subject to this section expires on June 30 of each year. A certificate holder that seeks continued registration under this section shall comply with paragraph (1) on or before February 15 of each year.

 (d) Regulation.

 (1) Limousines subject to this section will be subject to regulation and enforcement by the Authority for violations of Department of Transportation equipment inspection standards stated in 67 Pa. Code Chapter 175 (relating to vehicle equipment and inspection). For example, a limousine registered as provided in this section that is determined by the Authority to be in the course of providing service with a broken windshield will be subject to the standard enforcement procedures of this part.

 (2) Limousines registered as provided in this section must comply with the instructions of Authority staff, including inspectors, and submit to field inspections as provided in § 1055.14 (relating to field inspections). Authority field inspections of limousines may include an investigation of compliance with PUC regulations and orders.

 (3) Except as provided in this chapter, limousines subject to this section must adhere to the regulations and orders of the PUC and are not required to adhere to regulations of the Authority while providing limousine service in Philadelphia. The Authority may pursue enforcement of PUC regulations before the PUC, as appropriate.

 (e) Insurance. A certificate holder that seeks registration of a limousine as provided in this section or as provided in § 1053.41 (relating to large vehicles) shall comply with § 1065.1 (relating to limousine insurance), except that the limits of insurance coverage need not exceed those required by the PUC.

 (f) Alternative carrier sticker.

 (1) Upon compliance with this section, the Authority will mail an alternative carrier sticker to the certificate holder for each registered limousine.

 (2) Each alternative carrier sticker will display the year in which it is valid.

 (3) A limousine registered with the Authority as provided in this section may not provide limousine service in Philadelphia or from any airport, railroad station and hotel located in whole or in part in Philadelphia, unless a valid alternative carrier sticker is attached to the lower passenger side interior portion of the limousine's windshield. Alternate carrier stickers must be attached using the adhesive backing supplied with the sticker and may not be taped to the windshield or transferred between vehicles.

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