2024-005 - Adopt Chapter 33 “Vehicles for Hire”ORDINANCE NO. 2024-005
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS,
AMENDING ARTICLE 5.11, "VEHICLES FOR HIRE," OF CHAPTER 5,
"BUSINESS REGULATIONS;" PROVIDING A REPEALER CLAUSE;
PROVIDING A SEVERABILITY CLAUSE; PROVIDING A SAVINGS CLAUSE;
PROVIDING A PENALTY CLAUSE; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, the laws of the State of Texas and Section 11 of the Charter of the City of
Paris, Texas grant to the City'the exclusive dominion, control and jurisdiction in, upon, and
over and under the public streets, avenues, alleys, highways and other public property of the
City; and
WHEREAS, on October 26, 2020, the City Council passed Ordinance No. 2020-060
adopting Article 5.11, "Vehicles for Hire," to Chapter 5, "Business Regulations," of the Code
of Ordinances to regulate the operation of Vehicles for Hire over the city streets in order to
protect public health and safety, promote the public convenience and necessity, and to
protect consumers within the City; and
WHEREAS, the City Council has passed individual ordinances granting permits to
operators of Vehicles for Hire in the past but desires to amend Chapter 5, Article 5.11 to
provide for approval and issuance of licenses for the operation of Vehicle for Hire services
on an administrative level:
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
PARIS, TEXAS:
Section 1. That the findings set out in the preamble to this ordinance are hereby in
all things approved.
Section 2. That the City Council hereby repeals the existing Article 5.11, Vehicles for
Hire" of Chapter 5, "Business Regulations," of the City of Paris Code of Ordinances and
replaces it in its entirety as follows:
"ARTICLE 5.11
VEHICLES FOR HIRE
"Sec. 5.11.001. Statement of Policy.
"It is the policy of the City of Paris, Texas to promote safety and quality of
transportation for hire services in the City. The purpose of these regulations is to:
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(1) protect the public health and safety;
(2) promote the public convenience and necessity;
(3) ensure that transportation for hire is a viable component of the transportation
system in the City;
(4) allow different modes of transportation for hire to compete directly with each
other; and
(5) allow consumers to select the type of transportation for hire they wish to use.
"Sec. 5.11.002. Definitions
"The following terms, when used in this Chapter, shall have the meanings ascribed to
them by this section:
"Black Car means any Vehicle for Hire, regardless of make or model, which does not
meet the definitions for Taxicab, Shuttle, or Limousine.
"City means the City of Paris, Texas.
"City Council shall mean the governing body of the City of Paris, Texas.
"Hailable Service is a Taxicab Service that can be immediately summoned by a
passenger communicating in person with the Driver of the Vehicle without need of utilizing
the Transportation for Hire Services dispatch system.
"License shall mean a license granted by the City allowing an owner or operator of a
Vehicle for Hire to operate within the City.
"Licensee mans any Person to whom the City grants a license to operate a Vehicle for
Hire Service under this Article.
"Limousine means a chauffeured motor vehicle, other than a taxicab, a van, a bus, or
a touring vehicle, with a rated passenger capacity of not less than nine or more than 11
passengers.
"Person means an individual, corporation, agency, trust, partnership, business entity,
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or two or more persons having joint or common economic interest.
"Shuttle means a van -type Vehicle that has a manufacturer's rated seating capacity of
not less than seven passengers and not more than 15 passengers.
"Taxicab means every Vehicle, whether it is identified or not as a taxicab as set forth
herein, used for the transportation of passengers for hire over the public streets of the city,
whether or not the operation extends beyond the city limits. Provided, the term Taxicab shall
not apply to Limousines, Black Cars, or Shuttles.
"Vehicle means a motor -propelled device that can be used to transport persons or
property on a public street within the corporate limits of the City.
"Vehicle for Hire business or service means providing transportation via chauffeured
Vehicle for Hire to passengers for a fare or compensation.
"Vehicle for Hire means every vehicle that is chauffeured that transports passengers
over City Streets for a fare or compensation, including but not limited to Taxicabs, Shuttles,
Limousines, and Black Cars. The term Vehicle for Hire shall not include:
(1) Vehicles operated by a transportation authority or a transit authority in
accordance with state or federal law;
(2) Vehicles being used as ambulances;
(3) Vehicles rented or leased for self -operation by the person who drives the Vehicle,
unless such a Vehicle is transporting persons for compensation; or
(4) Any bus or shuttle service operated or subsidized by a governmental body, or non-
profit corporation for the purpose of providing public transportation or providing
rides to elderly or disabled clients.
(5) A Transportation Network Company as defined in Texas Occupations Code Sec.
2402.001(5).
"Sec. 5.11.003 Violations.
"The violation of any of the provisions of this chapter constitutes a misdemeanor and
shall be punished by a fine not to exceed five hundred dollars ($500.00) in accordance with
section �;�u�i��w� of this Code of Ordinances. Offenses committed under this article are strict
liability offenses, and the City need not either plead or prove any mental state at the trial of
any violation brought under this chapter. Each and every violation shall constitute a separate
offense.
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"Sec. 5.11-004. License required.
"(a) No person, firm, corporation, or other entity, excluding the City, shall be granted
the privilege to use the public streets, alleys, or thoroughfares within the corporate limits of
the City for the purpose of engaging in the business of operating a Vehicle for Hire without
first having obtained a license from the City.. Failure to obtain a license prior to operating a
Vehicle for. Hire within the cor- orate limits of the City shall be a violation of this cha ter
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punishable as set forth in Section 10.06.003 herein.
"(b) Each license issued by the City will contain the following provisions °
"(1.) 'That the right, privilege, and grant therein contained shall not be
transferred or assigned by Licensee without first obtaining the formal action and
written consent of the City Manager (or his designee) of the City of Paris, and any
attempted assignment or transfer of said rights and privileges by the Licensee
without first obtaining such consent and permission from the City Manager (or his
designee.) of the City of Paris shall operate, ipso facto, as a termination of the rights,
privileges, and grant herein contained.,
"(2.) That the Vehicle for Hire business operated or maintained under the
license shall be used for the purpose of the transportation of passengers and the
personal belongings of such passengers.
"(3) That all automobiles or vehicles used in connection with theVehicle for
Hire business shall be maintained and operated in safe condition in accordance with
the laws of the State of Texas and ordinances of the City of Paris and shall be currently
registered with the Texas Department of Motor Vehicles at all times and be listed on
the license.,
"(4) That the privilege to operate as a Vehicle for Hire Service granted under
the License shall be limited to the vehicles listed therein.
"(5) That each Vehicle for Hire shall be operated by a driver with a
chauffer's license at all times during the activities covered by this Article and License.,
"(6) That the City of Paris, in granting this license, fully retains and reserves
all the rights, privileges, and immunities that it now has under the law to fully use,
patrol and police the public streets, alleys, and rights.-of-wa-.Y within the City, and the
granting of this license shall in no way interfere with the rights of the City of Paris to
fully use said streets, alleys, and nights-off-ayfor any other public utility or public
purpose, nor shall this license i I n any way interfere with the City's right to improve or
maintain any streets, alleys, or rights-of-way in the Cit
.Y Y of Paris, and the rights of the
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Licensee herein to use said streets shall, at all times, be subservient to the right of the
City Council of the City of Paris to fully exercise its rights or control over said streets,
alleys, and public ways.
"(7) That the Licensee shall, prior to the effective date of this license
agreement, pay to the City of Paris, at the office of the City Clerk of the City of Paris,
150 1st Street S.E., Paris, Texas, in lawful money of the United States, a sum equal to
$100.00 per vehicle used in the operation of said Vehicle for Hire business. This
payment shall represent the license payment due the City of Paris and failure to pay
said license fee when due may result in forfeiture of this license. No reimbursements
will be made to Licensee if Licensee reduces the number of Vehicles for Hire during
the license year.
"(8) That the City of Paris expressly reserves the right to modify, amend, alter,
change, or eliminate any of the provisions of this license, during the life of the same,
for the following purposes, to -wit:
(A) To eliminate or delete from the same such conditions as
then prove obsolete or impractical; and,
(B) To impose such additional conditions or requirements upon
the Licensee as may be deemed necessary and reasonable, such
conditions or requirements to be those as may be deemed necessary
for the purpose of insuring adequate service to the public or protecting
the health, safety and general welfare of the citizens of Paris.
"(9) That, notwithstanding what may be said in any other portion of this
ordinance with reference to the termination hereof, this right is granted subject to the
provisions of Article I, Sections 17 and 26 of the Constitution of the State of Texas, all
applicable state laws, City Charter provisions, and any other laws that may be enacted
in the future by the Texas Legislature, or amendments to the Constitution and the
Charter of the City of Paris. Furthermore, the City of Paris reserves the absolute right,
upon notice and hearing, which said notice shall be given to the Licensee not less than
ten (10) days before such hearing, to absolutely terminate this grant and license for
any violation of the terms and provisions of this ordinance.
"(10) That it shall be unlawful for Licensee, its agents or employees, while
operating any Vehicle for Hire within the City of Paris, to cruise except when
operating a permissible Hailing Service. Cruising shall consist of seeking, searching,
or soliciting employment while operating an automobile for hire by repeatedly and
persistently driving such automobile for hire up and down on the public streets of the
City of Paris and offering accommodations thereof to prospective passengers,
whether by signal, word of mouth, or by carrying a sign with the word "For Hire"
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thereon, or some other word of similar import, or otherwise, or in any manner
whatsoever operating said vehicle upon the public streets of the city of Paris for the
purpose of soliciting passengers, or driving an automobile for hire upon the public
streets while unoccupied by a passenger without having a fixed destination thereof.
For the purposes of this Article, the operation of a Black Car vehicle for personal use
unrelated to the operation of a Vehicle for Hire Service or the paid transportation of
passengers shall not constitute cruising.
"(11) That every Hailable Vehicle for Hire operated by Licensee under this
License shall, at all times, have a painted, or otherwise permanently impressed upon
the front doors thereof, easily visible signs bearing proper identification of the
company operating under this License. All such vehicles shall be owned by and
registered in the names of the Licensee, and no other vehicle may be used or operated
by Licensee on the streets of the City under this License. Each such vehicle shall be
registered with the City Clerk of the City of Paris by motor vehicle in numerical order,
beginning with number 1, which number shall, at all times, be displayed at some
convenient and visible location on the Vehicle.
"(12) That Licensee shall, at all times during the effective period of this license,
keep and maintain, in full force and effect, a policy or policies, of commercial
automobile liability insurance coverage which fully meets or exceeds coverage in the
following amounts: for each accident, personal injury coverage in the amount of
$50,000.00 per person and $100,000.00 aggregate, and property damage coverage in
the amount of $50,000.00. The commercial insurance policy shall also provide
coverage for bodily injury to passengers and/or property damage and shall indemnify
the City of Paris, its elected officials, officers and employees from and against any and
all claims for damages, personal injuries, or property damages sustained as a result
of the negligent operation of any motor vehicle by the Licensee, their agents or
employees, and shall pay all premiums due thereon when due. Said policy shall also
list the City of Paris, its elected officials, officers and employees as additional insured
under the required coverage. It is expressly provided that such commercial insurance
policy, or policies, shall, and must, be written and issued by a reputable insurance
underwriter, or underwriters, authorized to do business in the State of Texas, subject
to approval by the City Attorney of the City of Paris; and the Licensee, or their
insurance carrier or carriers, shall deliver a copy of any such policies to the City Clerk
of the City of Paris, 1501st Street S.E., Paris, Texas 75460, or furnish to said City Clerk
a current letter or certificate from such company, or companies, evidencing the fact
that such insurance is in full force and effect at all times during the effective period of
this license. All such policies shall be written so that the City of Paris will be notified
of cancellation or of any material change to the policies at least ten (10.) days prior to
the effective date of such cancellation or amendment. Notice shall be by certified mail,
return receipt requested, addressed to the City of Paris c/o City Clerk, City of Paris, P.
0. Box 9037, Paris, Texas 75461-9037.
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"(13) The Licensee shall promptly respond to all claims filed against them for
injury or damage to property arising from the operation of their Vehicles for Hire and
well and truly pay directly to every judgment creditor who has been injured through
the negligent operation of any motor vehicle by the Licensee, their agents or
employees, or whose property has been damaged, any amount, or amounts, of money
that shall have been awarded by final judgment of any court of competent jurisdiction
against such Licensee on account of any such injury or damage.
"(14) That in the event Licensee fails to provide the City with a current
Certificate of Insurance with appropriate insurance coverage for all vehicles operated
under this License and/or Licensee fails to fully discharge any claim for damages or
injuries established by final judgment of a court of competent jurisdiction within sixty
(60) days after the same has been so established, such failure shall constitute grounds
for termination of this License.
"(15) That in accepting this License, Licensee agrees that they shall not
discriminate against or refuse business to any person on the basis of race, color, creed,
sex, or national origin. Any proven violation of this section of the License may result
in an immediate suspension or forfeiture of this taxicab License.
"(16) That it shall be the duty of the City Manager (or designee) of the City of
Paris, to enforce the provisions of this ordinance and all applicable regulations, which,
when approved by the City Council, shall become binding upon the Licensee herein.
The City Manager may adopt rules to enable the efficient operation of the
administration of this Article.
"(17) The City Council shall, from time to time during the term of this license,
have the power and authority to promulgate effective regulations concerning the
following, to -wit:
(A) To make reasonable orders respecting character, extent,
quality, safety and standard of service Licensee is to provide under this
license;
(B) To fix such rates for service to the public as are not in
conflict with the express provisions hereof and as will provide for
Licensee a reasonable and fair rate of return upon the fair value of the
property used and useable in connection with the rendering of service
to the public under this license; and,
(C) To make such other rules and regulations as may be
reasonably necessary to facilitate clean and professional Vehicle for
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Hire business to be rendered to the public under this license, any such
rules and regulations, when adopted, to be binding upon the Licensee
herein.
"(18) That Vehicles for Hire operated by Licensee under this License shall be
stationed or parked at the principal offices of the Licensee, which principal offices
shall be located on private property during hours in which said Vehicles for Hire are
not engaged in the exercise of the privileges granted herein and during which a driver
is not occupying the Vehicle; and in any event, no unoccupied Vehicle for Hire may be
parked on any property other than at the principle offices of Licensee other than for
normal, momentary breaks in operation of the Service.
"(19) That the Licensee shall promptly pay all lawful ad valorem taxes and
such other levies and assessments, if any, that may be lawfully imposed upon it.
Failure to pay any of such charges, or either of them, shall be deemed a breach of the
license granted herein, and the City, upon the happening of such event, may declare
the rights of the Licensee hereunder forfeited for such breach.
"(20) That this grant is made upon the express condition that the non-
exercise of the power to regulate rates and charges which the Licensee may charge to
the public in the operation of their business shall never be construed as an
acquiescence or recognition of the justness or correctness of said Licensee's
established rate, and that, so long as the City Council of the City of Paris does not
exercise its legislative and governmental power to fix and regulate the rates that the
Licensee shall charge to the public, the question of property values used and useful in
the rendering of the service prior to rate regulation shall never stop the City from
determining the real or actual value of property used or useful in rendering such
service. If, and when, the City Council or other governing body shall exercise the
power to fix the rates to be charged for such service in the City of Paris, no allowance
in the way of said rate shall be made as compensation for any property used or
consumed in rendering the service by the Licensee's for such service. If, and when,
the City Council decides to regulate rates, then, at such time, the Council will fully
exercise its rate regulatory power under the provisions of law applicable thereto, and
the failure to provide under this ordinance the machinery for the administration,
legislative, or executive control of such matter shall not preclude the Council from
fully exercising that power and providing suitable provisions to enforce such power.
"(21) That any unwarranted and intentional neglect, failure, or refusal of the
Licensee to comply with any of the conditions and stipulations contained in this
license shall thereupon immediately, ipso facto, effect a forfeiture hereof, and the City
Manager or designee may, thereupon, declare this license forfeited and may exclude
the Licensee from further use of the streets of the city under this license, and the
Licensee shall thereupon and immediately surrender all rights in and to the same, and
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this license shall become null and void and of no effect.
"Sec. 5.11.005. Application for License; issuance of License; expiration; License not
transferable.
"(a) To obtain a Vehicle for Hire license, a person must submit an application on a
form provided by the City Manager or the City Manager's designee. The applicant must be
the person who will own, control, or operate the proposed Vehicle for Hire Service.
"(b) The License application shall include the following information:
(1) The applicant's name, address, and verified signature;
(2) The form of business of the applicant, and, if the business is a
corporation or association, evidence of the authority of the person signing the
application to represent the business;
(3) A description of all vehicles to be used by the applicant, including the
vehicle type, capacity, vehicle identification number, and license number;
(4) A certificate of insurance or other evidence establishing that the
applicant has motor vehicle liability insurance or other proof of financial
responsibility as required by law;
(5) A certificate of insurance or other evidence establishing that the
applicant has acquired, and shall during the terms of any License issued
hereunder, insurance as required by Section 10.06.004 (b) (12) herein.
(7) A statement and accompanying documentation in support of the public
necessity and convenience for the issuance of the License.
"(c) Each application for a License shall be accompanied by a non-refundable
application fee of one -hundred ($100.00) for each vehicle to be used in the Vehicle for Hire
business.
"(d) Each Vehicle for Hire License shall expire on December 318t of each year, and
may be renewed by making application as provided in this section.
"(e) The License required by this section shall not be transferable.
"Sec. 5.11.006. Revocation of License.
"The City Manager or designee may revoke a License issued under this Article for
failure of the Licensee to provide required information, for failure to maintain adequate
insurance, for failure to pay fees, for making false statements on the application, or for failure
to comply with this article. The revocation may be appealed to the city council if written
notice of a request for hearing is given to the City Manager within ten (10) days of the receipt
of the revocation order. The order of the City Council approving or disapproving the order
of the City Manager shall be final."
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Section 3. That all provisions of the ordinances of the City of Paris, Texas in conflict
with the provisions of this ordinance are hereby repealed, and all other provisions of the
ordinances of the City of Paris not in conflict with the provisions of this ordinance shall
remain in full force and effect.
Section 4. That the repeal of any ordinance or part of ordinances affected by the
enactment of this ordinance shall not be construed as abandoning any action now pending
under or by virtue of such ordinance or as discontinuing, abating, modifying, or altering any
penalty accruing or to accrue, or as affecting any rights of the municipality under any section
or provisions of any ordinance at the time of passage of this ordinance.
Section S. That it is the intention of the City Council of the City of Paris that this
ordinance, and every provision hereof, shall be considered severable, and the invalidity or
partial invalidity of any section, clause, or provisions of this ordinance shall not affect the
validity of any other portion of this ordinance.
Section 6. That any person violating any provision of this ordinance shall be guilty of a
Misdemeanor, and upon conviction, shall be subject to a fine in accordance with provisions of
Sec. 1.01.009 of the City of Paris Code of Ordinances, and each and every day's continuance of
any violation of the above -enumerated sections shall constitute and be deemed a separate
offense.
PASSED AND ADOPTED on by the City Council of the City of Paris, in regular session
on this the 22nd day of January, 2023.
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ATTEST:
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ice Ellis, City Clerk
D AS TO FORM:
H. Hari is, City Attorney
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I old B. Hughes, Mayo ,