PERMITS AND LICENSES

Houston Code of Ordinances ch. 46, art. VII, div. 2

in effect

Houston Code of Ordinances § 46-391 Permit required.

Sec. 46-391. - Permit required. (a) It shall be unlawful for any person to operate a low-speed shuttle service without first obtaining a permit pursuant to the terms of this division. (b) Each applicant for a permit required by this division must: (1) Have no conviction of an offense stated in subsection (c) of section 1-10 of this Code; (2) Identify the make, model, manufacturer's rated seating capacity and vehicle identification number for each vehicle to be used as a low-speed shuttle; (3) Identify the proposed zone(s) where the applicant desires to operate the low-speed shuttle service; (4) Provide proof of insurance pursuant to the requirements of this article; (5) If a natural person: a. Be 18 years of age or older; and b. Hold a current and valid class A, B, or C Texas driver license; and (6) Provide evidence that the applicant has a place of business within the metropolitan area from which the applicant's low-speed shuttle service will be operated and that such use of the location is in compliance with any applicable deed restrictions; and (7) Provide any other information reasonably requested by the director for administration of this article. (Ord. No. 2014-754, § 2(Exh. A), 8-6-2014; Ord. No. 2021-804, § 22, 9-15-2021; Ord. No. 2025-1050, § 33, 12-17-2025)

Houston Code of Ordinances § 46-392 License required.

Sec. 46-392. - License required. It shall be unlawful for any person to operate low-speed shuttle without a license issued pursuant to this chapter. (Ord. No. 2014-754, § 2(Exh. A), 8-6-2014)

Houston Code of Ordinances § 46-393 Fees.

Sec. 46-393. - Fees. There shall be a nonrefundable application processing fee in the amount stated for this provision in the city fee schedule payable upon the filing of an application for a permit. (Ord. No. 2014-754, § 2(Exh. A), 8-6-2014)

Houston Code of Ordinances § 46-394 Annual permit fee.

Sec. 46-394. - Annual permit fee. (a) The annual permit fee in the amount stated for this provision in the city fee schedule per low-speed shuttle shall be paid in advance to the department of administration and regulatory affairs on or before June 1 of each year. (b) There shall be no fee for the replacement of a low-speed shuttle with another low-speed shuttle. (c) Reserved. (Ord. No. 2014-754, § 2(Exh. A), 8-6-2014; Ord. No. 2015-997, § 33, 10-14-2015; Ord. No. 2019-669, § 46, 9-4-2019)

Houston Code of Ordinances § 46-395 Application.

Sec. 46-395. - Application. (a) Each person desiring to obtain a permit shall apply on forms provided by the director and shall include all information required by this article. (b) Each permit applicant (including the proprietor if a proprietorship, each partner if a partnership, or each corporate officer or director if a corporation) shall appear at a location specified by the director for identification and fingerprinting to determine the existence of any conviction of any applicable offense(s) set forth in subsection (c) of section 1-10 of this Code. If any conviction exists, the director shall follow the procedures set forth in section 1-9 of this Code and conduct a hearing if timely requested. (Ord. No. 2014-754, § 2(Exh. A), 8-6-2014; Ord. No. 2015-997, § 34, 10-14-2015)

Houston Code of Ordinances § 46-396 Review.

Sec. 46-396. - Review. (a) Following review of the application, the director shall provide the applicant with written notification of the approval or denial of the requested permit. The director shall initially review each application for issuance or amendment of a permit to determine whether the application is complete and all required information has been provided. If not, the application shall be returned, and the applicant shall be so advised. (b) The submission of any false information or a materially incomplete application, including but not limited to an applicant's failure to provide any information reasonably requested by the director, shall be grounds for denial of the application. In the event of denial, the applicant shall be given written notice of the basis for such action. The applicant shall be entitled to appeal a decision based, in whole or in part, upon section 1-10 of this Code. Notice of any denial shall comply with section 1-9 of this Code and applicable state laws. (c) If the application is denied on the basis of the applicant's failure to satisfy any other requisites stated in this division, the applicant may request a hearing by submitting a written notice of appeal to the director within 15 business days following the date the director's decision is deposited in the United States Mail. An informal hearing shall be conducted by an impartial hearing officer who shall render a decision within 30 business days from the date of the filing of the appeal. At the hearing, the burden shall be upon the applicant to demonstrate that he is entitled to the permit. (d) If the reason for the denial of an application is curable, the director shall allow the applicant, upon a written request, to submit an amendment within the time allowed in subsections (b) and (c) for an appeal, in lieu of filing of an appeal. If the application is again denied, the applicant shall still be entitled to file an appeal within 15 business days following the date the director's decision regarding the amended application is deposited in the United States Mail. (e) Following approval of an application for a permit, the actual permit shall not be issued until the applicant has provided the make, model, manufacturer's seating capacity and vehicle identification number of each low-speed shuttle, if not provided with the application, and has paid the annual permit fee, obtained a certification decal, provided proof of insurance, provided proof of ownership or lease of each low-speed shuttle, and filed and received approval of all requested zones and rate data for each low-speed shuttle with the director. (f) The director shall promulgate regulations and procedures for any required hearings which shall be consistent with sections 1-9 and 1-10 of this Code and applicable state laws. (Ord. No. 2014-754, § 2(Exh. A), 8-6-2014)

Houston Code of Ordinances § 46-397 Vehicle inspection; fee.

Sec. 46-397. - Vehicle inspection; fee. (a) It shall be unlawful for any person to operate or cause to be operated any low-speed shuttle, unless the low-speed shuttle has been inspected as required in this section and has a current and valid certification decal affixed thereto. There shall be a non-refundable vehicle inspection fee stated for this provision in the city fee schedule per low-speed shuttle. All low-speed shuttles shall be maintained in a safe and sanitary condition and shall be thoroughly cleaned and disinfected at least once in each 24-hour period. (b) Each low-speed shuttle shall be inspected before it is initially placed into service and thereafter before June 1 of each year at such location as the director may specify. The director shall approve the low-speed shuttle if he determines that: (1) The low-speed shuttle has current Texas registration stickers for both safety and air quality, if applicable; (2) The low-speed shuttle is of the approved color scheme and is marked as provided in section 46-423 of this Code; (3) The low-speed shuttle is in generally sound working condition with no apparent safety-related defects, including inspection or testing of the speedometer, odometer, horn, windshield wipers, mirrors, steering, service brake, parking brake, tires, high beam indicator, tail lamp, stop lamps, license plate lamp, rear reflectors, turn signal lamps and headlamps; (4) The low-speed shuttle has a lap or lap/shoulder seat belt for the driver and for each passenger seating space to the extent the vehicle is so equipped by the manufacturer; (5) The low-speed shuttle has no seats that have been added in excess of the manufacturer's specifications; and (6) The low-speed shuttle complies with all other requirements of this article. (c) Upon the satisfactory completion of the inspection, the director shall issue and permanently affix a certification decal to the lower right portion of the windshield of the low-speed shuttle. In any prosecution under this section, it shall be presumed that a low-speed shuttle has not been inspected as required in this section unless it has a current and valid certification decal affixed thereto. (d) Replacement certification decals shall be provided only upon reinspection of the low-speed shuttle. (e) The director may inspect any low-speed shuttle and any records or documents required to be carried in or upon the low-speed shuttle at any time upon presentation of identification to the driver in order to determine operation in compliance with the provisions of this article and the regulations adopted hereunder by the director. (Ord. No. 2014-754, § 2(Exh. A), 8-6-2014; Ord. No. 2025-1050, § 34, 12-17-2025)

Houston Code of Ordinances § 46-398 Insurance.

Sec. 46-398. - Insurance. (a) Before any permit shall be issued, or before renewal of any permit shall be granted, the applicant shall file proof of insurance coverage evidencing insurance coverage complying with the requirements contained in subsection (b) below or give proof that he is qualified as self-insured, including a certificate of self-insurance issued pursuant to the Texas Motor Vehicle Safety Responsibility Act as now in force or hereafter amended. (b) The insurance required in subsection (a) shall be in the form of commercial auto liability coverage in an amount not less than $500,000.00 combined single limit per occurrence issued by either a company listed as an authorized auto liability lines carrier on the Texas Department of Insurance's List of Authorized Insurance Companies or a surplus lines insurer listed on the Texas Department of Insurance's List of Eligible Surplus Lines Insurance Companies. The eligible surplus lines insurance company is required to have a Best's Rating of at least B+ and a Best's Financial Size Category of Class VI or better according to the most current edition of Best's Key Rating Guide, Property-Casualty, United States. Additionally, the policy must include an endorsement requiring 30 days' written notice of termination or cancellation to the director and an endorsement requiring ten days' written notice of non-payment to the director. In the event that a policy terminates or is cancelled without replacement, then each permit to which it pertains shall be suspended, and those low-speed shuttles may not be operated. If a proper replacement policy is not provided to the director on or before the tenth business day after the date of termination or cancellation of the policy, the permit shall automatically terminate. Proof of the insurance required in this subsection shall be carried by licensees at all times while operating a low-speed shuttle and shall be accepted only in the authorized form approved by the Texas Department of Insurance for that purpose. (Ord. No. 2014-754, § 2(Exh. A), 8-6-2014; Ord. No. 2015-997, § 35, 10-14-2015)

Houston Code of Ordinances § 46-399 Authorized operators.

Sec. 46-399. - Authorized operators. No low-speed shuttle shall be operated by anyone except the permittee or an employee of the permittee or other person who may be operating the low-speed shuttle under a written agreement specifically incorporating therein any rules, regulations, and conditions as may be reasonably required by the director to ensure compliance with applicable laws and regulations. The permittee shall be responsible for any person operating under his permit whether the person is an employee or is a person operating under a written agreement. Any person operating a low-speed shuttle on the streets or other public property of the city is presumed to be an employee of the permittee or to have entered into a written agreement with the permittee. Any person operating a low-speed shuttle on the streets or other public property of the city shall be required to secure a license pursuant to this article. (Ord. No. 2014-754, § 2(Exh. A), 8-6-2014)

Houston Code of Ordinances § 46-400 Rate structure and fares; zones.

Sec. 46-400. - Rate structure and fares; zones. (a) Each low-speed shuttle shall be operated within a zone that has been filed with the director. The permittee shall also file with the director the rate structure or fares to be in effect for each zone. The permittee may file two or more operating zones for the same low-speed shuttle. (b) The permittee shall submit all proposed zones for review and approval by the director. Rates and zones may be amended periodically. Zones shall not be exclusive. The applicable fees stated for this provision in the city fee schedule shall be imposed for each zone, per low-speed shuttle and for the amendment of all zone information submitted to the director. Each zone application that involves use of airport facilities shall be accompanied by the proof required under section 46-373 of this Code. (c) Approved zones and all rate information, including compensation by gratuity only, for each low-speed shuttle shall be conspicuously posted on each side of the vehicle in a manner and location approved by the director. The director may assign zone numbers and may assign different colors to signify rate amounts. (d) It shall be unlawful for a licensee or permittee while in service with any passenger for hire on board to deviate from the zone as filed with the director for that low-speed shuttle. (e) It shall be unlawful for a licensee or permittee to impose a rate structure or collect a fare other than as filed with the director. (f) It shall be unlawful to drive or operate or cause to be driven or operated any low-speed shuttle without the current structure or fare posted as provided by the director. (g) Following notice and a hearing, the director may cancel, alter, or amend any zone authorized in error. (Ord. No. 2014-754, § 2(Exh. A), 8-6-2014; Ord. No. 2015-997, § 36, 10-14-2015)

Houston Code of Ordinances § 46-401 Receipt for payment of fare.

Sec. 46-401. - Receipt for payment of fare. No licensee, upon receiving full payment for a fare as authorized by this article, shall refuse to provide a receipt upon the request of any passenger making a payment. The permittee of the low-speed shuttle shall make available to each licensee a receipt book or other electronic instrument capable of creating a record to be used for this purpose. (Ord. No. 2014-754, § 2(Exh. A), 8-6-2014)

Houston Code of Ordinances § 46-402 Transfer; nonexclusive.

Sec. 46-402. - Transfer; nonexclusive. (a) A permit is personal to the permittee to whom it is issued and may not be leased, rented, sold, transferred or conveyed by operation of law or otherwise. Provided, any change of proprietor, change of partnership interests or change of corporate officer or director as shown on the permit application shall render a permit void, unless an application for transfer is filed within ten days following the effective date of the change. The director shall promulgate procedures for the processing of amendments and may suspend the permit(s) pending the completion of the processing if any additional person who has acquired an interest in the business is determined to have been convicted of an applicable offense as provided in subsection (c) of section 1-10 of this Code. The fee for filing an amended application shall is stated for this provision in the city fee schedule. (b) Each permit is nonexclusive, and no limits or restrictions shall exist upon the number of low-speed shuttles that may be permitted, provided that each must be operated pursuant to a permit and in accordance with all applicable requirements of this article. (Ord. No. 2014-754, § 2(Exh. A), 8-6-2014)

Houston Code of Ordinances § 46-403 Permit terms.

Sec. 46-403. - Permit terms. (a) A permit shall be valid for five years from the date of issuance. (b) In accordance with regulations promulgated by the director, a permit may be amended, without charge, for the limited purpose of adding, deleting or substituting any number of low-speed shuttle vehicles; provided however, the addition, deletion, or substitution of any low-speed shuttles pursuant to a current and valid permit shall require an inspection as provided for in section 46-397 of this Code, including the payment of the inspection fee. (Ord. No. 2014-754, § 2(Exh. A), 8-6-2014)

Source: City of Houston, Code of Ordinances and City Charter (Municode Library, library.municode.com)URL: https://library.municode.com/tx/houston/codes/code_of_ordinances?nodeId=COOR_CH46VEHI_ARTVIILEESH_DIV2PELIFetched: 10/26/2026