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Sale of New Medallions

RCNY tit. 35, ch. 65, subch. A
in effect

35 RCNY § 65-01 Scope of this Subchapter.

§ 65-01 Scope of this Subchapter. (a) In accordance with Administrative Code § 19-532, the Chairperson will issue and sell additional Taxicab Licenses up to the number authorized by state and local law. (b) This Subchapter establishes the process for issuing and selling newly authorized Medallions.

35 RCNY § 65-02 Penalties.

§ 65-02 Penalties. (a) Specific Penalties. If there are specific penalties for violating a Rule, they will be shown at the end of the Rule. The penalty section will also state whether the violator must attend the Hearing. (b) Payment of Fines. (1) Fines are due not later than 30 days after the Respondent is found guilty of or pleads guilty to the violation, unless: (i) the Respondent files an appeal of the decision issued by the Taxi and Limousine Tribunal within the time required by 48 RCNY Chapter 5, in which case the payment of the fines will be deferred until 30 days after the date of the appeal decision. (2) If the fine is not paid by the close of business on the date due, the Commission will notify the Respondent in writing that the Respondent's License will be suspended in 10 business days of the date of the notification until the fine is paid, unless the Respondent demonstrates to the Commission, in person or in writing, that the fine has been paid.

35 RCNY § 65-03 Definitions Specific to this Subchapter.

§ 65-03 Definitions Specific to this Subchapter. (a) Bidder. An individual submitting a sealed bid for one or more Lots of Taxicab Medallions or a Business Entity to which an individual Bidder assigns a bid. (b) Broker or Taxicab Broker. For purposes of this Subchapter, a Broker or Taxicab Broker will include any person or entity, and any person or entity which is an owner, shareholder, partner, member or employee of such person or entity, that represents or advises any Bidder or potential Bidder in connection with an actual or potential bid and meets either of the following criteria: (1) Provides advice regarding bid price or potential bid price; or (2) Obtains actual knowledge of the bid price submitted by any Bidder while providing representation or advice. (c) Closing Deadline. A Closing Deadline will be the date by which a winning Bidder must close on any Lot as established in 35 RCNY § 65-07(a). (d) Independent Medallion. A class of Medallion Taxicab License, the owner of which may only own one Medallion. (e) Lot. Medallions being sold in a single unit, which will be one Medallion in the case of an Independent Medallion and two or more Medallions in the case of Minifleet Medallions. (f) Minifleet Medallion. A class of Medallion Taxicab License, the owner of which must own at least two Minifleet Medallions. (g) Reserve Status and Reserve Status Bids. The highest ten percent of the non-winning bids in each category hold Reserve Status, unless the Chairperson determines a greater number of non-winning bids will receive Reserve Status and sets a higher qualifying percentage. A bid holding Reserve Status is a Reserve Status Bid and is converted to a winning bid when a winning Bidder fails to comply with the Closing Deadlines established in this Rule.

35 RCNY § 65-04 General Provisions.

§ 65-04 General Provisions. (a) Sale by Sealed Bid. The public sale of newly issued Taxicab Medallions will be done by Sealed Bid. (b) Classification of Medallions. Each Medallion will belong to only one of the following classifications and will permanently remain in that classification regardless of change in ownership of the Medallion after issuance: (1) Independent Medallion (2) Minifleet Medallion (3) Accessible Independent Medallion (4) Accessible Minifleet Medallion (5) Alternative Fuel Independent Medallion (6) Alternative Fuel Minifleet Medallion. (c) Sale in Lots. New Medallions will be sold in Lots. (d) Ratios of Medallion Classifications. The ratio of Minifleet Medallions to Independent Medallions (whether Restricted or Unrestricted) will be maintained in accordance with § 19-504(i) of the Administrative Code. (e) Separate Public Sales. Separate sales may be conducted for each of Independent Medallions, Minifleet Medallions, Accessible Independent Medallions, Accessible Minifleet Medallions, Alternative Fuel Independent Medallions, and Alternative Fuel Minifleet Medallions.

35 RCNY § 65-05 Commission Procedures for Holding a Sealed Bid Sale.

§ 65-05 Commission Procedures for Holding a Sealed Bid Sale. (a) Notice of the Sale. Sealed bid sales and any postponements of these sales will be publicized as required below. (1) Publication of Sealed Bid Sale. The Chairperson will publicize each sealed bid sale by placing an announcement in the City Record for five consecutive days, beginning at least thirty days prior to the deadline for bidding. The announcement will include the following: (i) The date and time on which bids are due; (ii) The number of Medallions to be sold; (iii) Whether those Medallions will be sold as Independent Medallions, Minifleet Medallions, Accessible Independent Medallions, Accessible Minifleet Medallions, Alternative Fuel Independent Medallions, or Alternative Fuel Minifleet Medallions; (iv) The numbers of Minifleet and Independent Medallions to be sold; (v) The percentage of highest non-winning bids that will determine the Reserve Status class for each type of Medallion to be sold; and (vi) Other terms of sale. (2) Publication of Postponements. The Chairperson has the ability to postpone the public sale. The Chairperson will place an announcement of the postponement in the City Record for five consecutive days, beginning at least ten days prior to the new deadline for bidding. (3) Additional Notices. The Chairperson can place additional notices in the City Record or other publications. (b) Pricing. (1) The Chairperson will set a minimum upset price for Medallions to be sold. (2) The Chairperson will establish different upset prices for each type of Medallion sold. (3) A minimum upset price will be published in the City Record at least ten days prior to the deadline for submission of bids. (4) Any bid received that is less than that minimum will be rejected as non-responsive. (c) Bid Opening. (1) The Chairperson will set a date when the bids will be opened in public and the winning bids announced at the public sale. (2) The winning bids will be the highest bids that are complete and responsive as established in 35 RCNY § 65-06. (3) The winning Bidders will be notified promptly by certified mail. (4) Tie bids will be decided with a drawing, which will be held at the bid opening. This process will also be used to determine tie bids that qualify for Reserve Status. (5) Winning bids will be published in the City Record and posted at the Commission's office and on the Commission's website. (d) Reserve Status Bids. (1) The Chairperson will determine the number of the highest, non-winning bids that will be given Reserve Status for each type of Medallion sold. This number will not be less than ten percent of the total number of Medallions of that type being sold. (2) The holders of the highest non-winning bids that have been given Reserve Status will be notified of their Reserve Status. (3) Reserve Status may be converted to a winning bid if a winning Bidder fails to comply with the Closing Deadlines established in this Rule. (4) The Chairperson will notify the holder of a Reserve Status Bid when that status changes to a winning bid. The date of notification will be the date of the bid opening for purposes of calculating the holder's deadlines under this Subchapter. (5) The Chairperson will hold a drawing at the bid opening to determine which bids will be given Reserve Status if there are more bids at the lowest bid price qualifying for Reserve Status than set by the Chairperson. (6) A winning Bidder for any Lot that fails to comply with the Closing Deadline requirements will be disqualified from Reserve Status. (e) Assignment of the Winning Bid. (1) The rights of a winning Bidder can only be assigned prior to the close of sale by a winning Bidder who is a Business Entity Person to a Business Entity. (2) The rights of a winning Bidder may not be assigned to any Business Entity if any Business Entity Person of that Business Entity did not comply with the Closing Deadline requirements associated with a winning bid on any higher priced Lot.

35 RCNY § 65-06 Procedures for Bidding.

§ 65-06 Procedures for Bidding. (a) Submitting a Bid. Each Bidder must do the following: (1) Submit bid on the form determined by the Chairperson. (2) Submit only one bid for one Lot per envelope. (3) Include with each bid the following: (i) For each Minifleet Medallion for which a Bidder submits a bid, a deposit of $5,000 (or $10,000 for each lot of 2 Minifleet Medallions) in a certified check, bank check, money order, or a check issued by a Taxicab Broker or Agent licensed by the Commission pursuant to 35 RCNY Chapter 62 or 35 RCNY Chapter 63 respectively, payable to the "New York City Taxi and Limousine Commission" (ii) For each Independent Medallion for which a Bidder submits a bid, a deposit of $2,000 in a certified check, bank check, money order, or a check issued by a Taxicab Broker or Agent licensed by the Commission pursuant to 35 RCNY Chapter 62 or 35 RCNY Chapter 63 respectively, payable to the "New York City Taxi and Limousine Commission" and (iii) A letter of commitment for no less than eighty percent of the bid amount, issued by a bank or credit union licensed to do business in the State of New York or other lender licensed by the State of New York or the Federal Government. (4) Submit bid in a 9" x 12" sealed envelope with a cover form determined by the Chairperson on which the Bidder must indicate the following: (i) The Bidder's name, address, phone number and date of sale; and (ii) The type of Medallion Lot. (5) Submit each sealed bid by hand delivery at the time and place designated by the Chairperson. (6) Submit each bid between 9:00 a.m. and 12:00 noon on any of the four business days immediately prior to the deadline for bidding. (b) Late Bids. Any bid presented to the Commission after the deadline in 35 RCNY § 65-06(a)(6) will not be accepted. (c) Required Certifications. As part of each bid form, the Bidder must certify the following: (1) The Bidder has not relied on any statements or representations from the City of New York in determining the amount of the bid. (2) The Bidder has not colluded, consulted, communicated, or agreed in any way with any other Bidder or prospective Bidder for the purpose of restricting competition or of inducing any other prospective Bidder to submit or not to submit a bid for the purpose of restricting competition. (3) The Bidder has not disclosed any bid price, directly or indirectly, to any other Bidder for the purpose of restricting competition or of inducing any other prospective Bidder to submit or not to submit a bid for the purpose of restricting competition. (4) The Bidder is not acting as a Taxicab Broker for any other Bidder and is not the owner, shareholder, partner, member, or employee of any person or entity acting as a Taxicab Broker for any other Bidder. (d) Non-Responsive Bids. The following will be considered "non-responsive" bids and will be rejected: (1) Bids not rounded to the nearest one-cent increment. (2) Bids not using the proper form or the proper envelope. (3) Bids where the form or envelope cover form is not properly completed, as determined by the Chairperson. (4) Bid packages that do not have the proper deposit. (5) Bid packages that do not contain a commitment letter meeting the requirements of this section. (6) Bid packages containing bids for more than one Lot per envelope. (7) Bids that are non-responsive or non-conforming in any other respect. (e) All Bids Final. All bids are considered final and no Bidder will be allowed to correct any bid after submission.

35 RCNY § 65-07 Closing on the Purchase.

§ 65-07 Closing on the Purchase. (a) Closing Deadlines. (1) Within ninety days after the bid opening, each winning Bidder must close on his or her Medallion(s). If the winning Bidder is unable to close within that period, Bidder must complete the following no later than ninety days after the bid opening: (i) Deposit twenty-five thousand dollars ($25,000) in a form of payment acceptable under 35 RCNY § 52-40(b)(2) for each Medallion covered by the winning bid; and (ii) Provide the Chairperson with proof of purchase of a vehicle eligible for Hack-Up (see 35 RCNY Chapter 67) in the form of a certificate of origin, a certificate of title, a bill of sale, or a signed sales contract. (2) All purchases of Medallions must close by no later than ninety days after bid opening unless extended by the Chairperson for reasonable cause shown. (3) All closing dates are subject to the approval of the Chairperson. (4) No closing date can be scheduled until the winning Bidder has done the following: (i) Demonstrated compliance with all of the requirements for issuance and ownership of a Taxicab License; and (ii) Submitted proof of purchase of a vehicle eligible for Hack-Up in the form of a certificate of origin, a certificate of title, a bill of sale, or a signed sales contract. (5) A winning Bidder's failure to comply with the provisions in this subdivision will result in the disqualification of the winning bid. (b) Additional Pre-Closing Requirements. Each winning Bidder must complete the following prior to closing: (1) Submit all documentation required by the Chairperson. (2) Clear outstanding fines and penalties. (3) Submit fingerprint records as directed by the Chairperson unless the Bidder has electronic fingerprints already on file with the Commission. (c) Post-Closing Requirement. Hack-Up each Medallion sold under this Subchapter no later than the fifth business day following the day of the closing on the sale of the Medallion, unless extended by the Chairperson for reasonable cause shown. (d) Payment. The winning Bidder will be responsible for payment of the following: (1) The balance of the purchase price (the bid amount, minus any deposits); (2) Any applicable taxes; (3) Two years' worth of license and inspection fees (as provided in 35 RCNY § 58-07); and (4) Any other fees due. No Medallion transfer tax will be collected for the initial Medallion issuance. (e) Disposition of Deposits. (1) All deposits of winning Bidders will be credited toward the sale price. (2) If the winning Bidder is not qualified to hold a license, the deposit will be refunded. (3) A winning Bidder who does not attempt to meet the requirements of this Subchapter, including a winning Bidder who fails to comply with the Closing Deadlines, will lose all deposits made under 35 RCNY § 65-06. (4) Deposits of non-winning and non-responsive Bidders will be returned by the Chairperson if possible. (i) A deposit made under 35 RCNY § 65-06 that is not returnable to the Bidder will be deemed forfeited by the Bidder and will be retained by the Commission after the Chairperson has made two unsuccessful attempts to return the deposit, by certified mail, return receipt requested, to the address listed by the Bidder on the bid form. (5) Deposits submitted with bids that achieve Reserve Status will be held until those bids are converted to winning bids or until the sales have closed for all Lots of Medallions of the type for which the bid was made. (f) Disqualification. (1) A winning Bidder's failure to meet the Closing Deadlines provided in this section will result in the disqualification of that Bidder as to that winning bid and the forfeiture of deposits made under 35 RCNY § 65-06 for that winning bid. (2) A winning Bidder whose bid is disqualified due to Bidder's failure to meet the Closing Deadlines established here will also be disqualified and will have all deposits made under 35 RCNY § 65-06 forfeited with respect to any Reserve Status Bids that Bidder may have. (3) A winning Bidder who has more than one winning bid or Reserve Status Bid (including any bids assigned to a Business Entity in which that Bidder is a Business Entity Person) must close first on his or her highest winning bid and then in descending order of each next highest winning bid(s). (4) A winning Bidder who has more than one winning bid or Reserve Status Bid (including any bids assigned to a Business Entity in which that Bidder is a Business Entity Person) may not avoid closing on the higher winning bid(s) by failing to meet Closing Deadlines. In such a case, the winning Bidder will be disqualified first on the lowest of his or her winning bids and then in ascending order on each of the next lowest winning bids. The deposits made under 35 RCNY § 65-06 for the disqualified bids will be forfeited. (Amended City Record 3/4/2016, eff. 4/3/2016)

35 RCNY § 65-08 Conflict of Interest Prohibitions.

§ 65-08 Conflict of Interest Prohibitions. (a) A Bidder cannot collude, consult, communicate, or agree in any way with any other Bidder or prospective Bidder for the purpose of restricting competition or inducing any other prospective Bidder to submit or not submit a bid for the purpose of restricting competition. A Bidder cannot disclose any bid price, directly or indirectly, to any other Bidder for the purpose of restricting competition or inducing any other prospective Bidder to submit or not submit a bid for the purpose of restricting competition. In addition to any other penalties provided by law, violation of this subdivision or submission of a false certification under 35 RCNY § 65-06 will result in the disqualification of all bids submitted by that Bidder. 35 RCNY § 65-08(a) Penalty: $10,000 fine and either disqualification of bid or, if sale has closed, revocation of Taxicab License(s) Appearance REQUIRED (b) A Taxicab Broker cannot submit a bid to purchase any Lot if that broker is acting as a Taxicab Broker for any Bidder. This prohibition also applies to any Business Entity Person or employee of a Taxicab Broker. 35 RCNY § 65-08(b) Penalty: $10,000 fine and either disqualification of bid or, if sale has closed, revocation of Taxicab License(s) Appearance REQUIRED
Source: City of New York, Charter, Administrative Code and Rules (American Legal Publishing XML export, codelibrary.amlegal.com)URL: https://codelibrary.amlegal.com/codes/newyorkcity/latest/NYCrules/0-0-0-71807Fetched: 10/24/2026

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