Leasing a Taxicab or Medallion.
35 RCNY § 58-21
in effect§ 58-21 Leasing a Taxicab or Medallion.
(a) An Owner can lease a Taxicab (or a Medallion-only) to a Licensed Driver, or to Licensed Drivers working different shifts or days if the Owner complies with the provision of this section.
(1) Regardless of the terms of the lease, the Owner is responsible for complying with all laws, rules and regulations governing Owners.
(2) An Owner must not authorize or allow a lessee of a Taxicab under 35 RCNY §§ 58-21(c)(1) or 58-21(c)(2) of these Rules to sublease the Taxicab to another party.
(3) Written records required under this section must be provided to Driver and must be maintained in either a hard copy or electronic format.
35 RCNY § 58-21(a) Fine: $75 - $150 for the first violation, $150 - $300 for a second violation, $300 - $500 for a third violation within 24 months, and Suspension until compliance Appearance REQUIRED
(b) Service and Maintenance of Leased Taxicab Vehicles.
(1) Service and maintenance of a leased Taxicab (including the vehicle) under 35 RCNY §§ 58-21(c)(1) and (c)(2) is the responsibility of the Owner/lessor, and the cost of the service and maintenance of the Vehicle cannot be charged to the Driver/lessee.
(2) The lease of a Medallion-only under 35 RCNY § 58-21(c)(3) or a lease under 35 RCNY § 58-21(c)(4) does not include, and does not require, the Medallion Owner/lessor to provide service and maintenance of the vehicle.
(3) A Medallion-only lessor under 35 RCNY § 58-21(c)(3) or a lessor under 35 RCNY § 58-21(c)(4) must not require the lessee to obtain service and maintenance from any particular provider, including, but not limited to, the Medallion Owner or any agent of the Medallion Owner. Medallion lessor or Agent who provides services or accommodations outside the lease to a leasing driver must reduce the agreement to writing, in clear and unambiguous language, and signed by the parties. A Medallion lessor or Agent who provides services or accommodations outside the lease to a leasing driver must keep records of all transactions with that driver and such records must be available for inspection by the Chairperson.
35 RCNY § 58-21(b) First violation $500 Second and subsequent violations: $1,000 and/or suspension of the Medallion for up to 30 days. In addition to the penalty payable to the Commission, the administrative law judge must order the owner to pay restitution to the driver, equal to the excess that was charged to the driver. Appearance REQUIRED
(c) Rate Rules.
(1) Standard Lease Cap Rates. An Owner of a Taxicab can charge a lease rate to a Driver that is not greater than the following Standard Lease Caps:
(i) The Standard Lease Cap for a Medallion and vehicle for one shift will not exceed:
A. $105, for all 12-hour day shifts
B. $115, for the 12-hour night shift on Sunday, Monday and Tuesday
C. $120, for the 12-hour night shift on Wednesday
D. $129, for the 12-hour night shifts on Thursday, Friday and Saturday
E. $630, for any one-week day shift for one week or longer
F. $737 for any one week night shift for one week or longer.
(ii) Except for a driver who meets all of the following:
(A) the driver pays for the lease on a daily or shift basis and is not required to pay for more than one shift in advance;
(B) the driver is required to return the vehicle to the owner or operator's business premises or other mutually agreed upon location at the conclusion of each shift; and
(C) the driver is not required to pay for any shift for which he provides the owner or operator with timely notice that he will not lease the vehicle, so the owner can lease the vehicle to another daily shift driver, no driver leasing a medallion and vehicle under this paragraph 58-21(c)(1) can be charged more than a total of
A. $630, for six or more day shifts in any seven consecutive day period
B. $737, for six or more evening shifts or combination of day and evening shifts in any seven consecutive day period.
C. A Driver who meets all the requirements of (ii)(A) - (C) can be charged for seven shifts if the Driver leases seven shifts.
(iii) The lease of a medallion and vehicle under this paragraph 35 RCNY § 58-21(c)(1) includes service and maintenance. Service and maintenance of the vehicle is the responsibility of the lessor and the lessor and his or her Agent must not charge the lessee for service and maintenance costs for the vehicle.
(iv) The lessee of a medallion and vehicle under this paragraph 35 RCNY § 58-21(c)(1) is not responsible for payment of any Commercial Motor Vehicle Tax.
(v) For a driver with a weekly lease under 35 RCNY § 58-21(c)(1)(i)(E), or 35 RCNY § 58-21(c)(1)(i)(F), if the vehicle is unavailable for use for any reason that is not the lessee's responsibility during any part of any week, the payment of the Lease Cap must be pro-rated.
(vi) For a driver with a weekly lease under 35 RCNY § 58-21(c)(1)(i)(E) or 35 RCNY § 58-21(c)(1)(i)(F), the lease includes costs for collision and other damage coverage, including repairs of physical damage to the vehicle, except that it shall not be considered an overcharge prohibited under these Rules if the Owner of a Taxicab or his or her Agent and the driver agree in writing that the driver will make payments for damage to the vehicle caused by the driver's negligence and such agreement will remain in effect for only so long as the driver is leasing a medallion from the Owner or the Agent, provided that the lease contains language informing the driver that he or she will be responsible for physical damage to the vehicle caused by his or her negligence if such damage was in fact caused by the negligence of the driver. If the Owner receives compensation for damages to the vehicle incurred from an entity other than the driver, any amount previously paid by the driver as compensation for damages, must be refunded to the driver.
(vii) For a Driver with a daily lease operating under 35 RCNY § 58-21(c)(1)(i)(A)-(D), the lessor may offer pro-rated leases for shifts of under 12 hours. The lessor must pro-rate the lease if the vehicle is unavailable for use for any reason that is not the lessee's responsibility during any part of the 12 hour shift, including the return of the vehicle from the previous shift.
(2) Cost Adjustments for the Lease of Hybrid Electric Taxicabs.
(i) The Standard Lease Cap for Hybrid Electric Taxicabs and Diesel-Fueled Taxicabs that are hacked-up under 35 RCNY §§ 67-05 or 67-05.1C and that meet the requirements of § 19-533 of the Administrative Code are raised by $3 per shift ($21 per week), so that the lease amount for one shift must not now exceed:
A. $108, for all 12-hour day shifts
B. $118, for the 12-hour night shift on Sunday, Monday and Tuesday
C. $123, for the 12-hour night shift on Wednesday
D. $132, for the 12-hour night shifts on Thursday, Friday and Saturday.
E. $648, for any one-week day shift for one week or longer
F. $755, for any one week night shift for one week or longer.
(ii) Except for a driver who meets all of the following:
(A) the driver pays for the lease on a daily or shift basis and is not required to pay for more than one shift in advance;
(B) the driver is required to return the vehicle to the owner or operator's business premises or other mutually agreed upon location at the conclusion of each shift; and
(C) the driver is not required to pay for any shift for which he provides the owner or operator with timely notice that he will not lease the vehicle, so the owner can lease the vehicle to another daily shift driver, no driver leasing a medallion and vehicle under this paragraph 35 RCNY § 58-21(c)(2) can be charged more than a total of
A. $648, for six or more day shifts in any seven consecutive day period
B. $755, for six or more evening shifts or combination of day and evening shifts in any seven consecutive day period.
C. A Driver who meets all the requirements of (ii)(A) - (C) can be charged for seven shifts if the Driver leases seven shifts.
(iii) The lease of a medallion and vehicle under this paragraph 35 RCNY § 58-21(c)(2) includes service and maintenance. Service and maintenance of the vehicle is the responsibility of the lessor and the lessor and his or her Agent must not charge the lessee for service and maintenance costs for the vehicle.
(iv) The lessee of a medallion and vehicle under this paragraph 35 RCNY § 58-21(c)(2) is not responsible for payment of any Commercial Motor Vehicle Tax.
(v) For a driver with a weekly lease under 35 RCNY § 58-21(c)(2)(i)(E) or 35 RCNY § 58-21(c)(2)(i)(F), if the vehicle is unavailable for use for any reason that is not the lessee's responsibility during any part of any week, the payment of the Lease Cap must be pro-rated.
(vi) For a driver with a weekly lease under 35 RCNY § 58-21(c)(2)(i)(E) or 35 RCNY § 58-21(c)(2)(i)(F), the lease includes costs for collision and other damage coverage, including repairs of physical damage to the vehicle, except that it shall not be considered an overcharge prohibited under these Rules if the Owner of a Taxicab or his or her Agent and the driver agree in writing that the driver will make payments for damage to the vehicle caused by the driver's negligence and such agreement will remain in effect for only so long as the driver is leasing a medallion from the Owner or the Agent, provided that the lease contains language informing the driver that he or she will be responsible for physical damage to the vehicle caused by his or her negligence if such damage was in fact caused by the negligence of the driver. If the Owner receives compensation for damages to the vehicle incurred from an entity other than the driver, any amount previously paid by the driver as compensation for damages, must be refunded to the driver.
(vii) For a Driver with a daily lease operating under 35 RCNY § 58-21(c)(2)(i)(A)-(D), the lessor may offer pro-rated leases for shifts of under 12 hours. The lessor must pro-rate the lease if the vehicle is unavailable for use for any reason that is not the lessee's responsibility during any part of the 12 hour shift, including the return of the vehicle from the previous shift.
(3) The Standard Lease Cap:
(i) For a Medallion-only Hybrid Taxicab, Hacked-up under 35 RCNY §§ 67-05 or 67-05.1C and that meet the requirements of § 19-533 of the Administrative Code is $994 weekly.
(ii) For all other Medallion-only Taxicabs, (including Accessible Taxicabs), is $952 weekly, except that if the Medallion Owner must place an Accessible Taxicab into service as required under subdivisions (a) through (c) or (e) of 35 RCNY § 58-50, or is currently receiving payments under 35 RCNY § 58-50(j)(2), the weekly lease for that Accessible Taxicab shall include a credit to the Driver of $77 per week for the four year period of time required in 35 RCNY § 58-50(f). This reduction is the result of the Medallion Owner's receipt of payment under 35 RCNY § 58-50(j)(1)(ii) and (j)(2).
(iii) A medallion lessor or Agent of a lessor must not require a medallion lessee to obtain service, repairs or maintenance of the vehicle from any particular provider, including, but not limited to, a lessor or an Agent of a lessor.
(iv) A lease, and payment of the Lease Cap under this paragraph includes (and all of the following must be provided to the lessee):
A. Use of the medallion;
B. All applicable TLC fees except for TLC vehicle inspection fees (but the lessor is not required to provide vehicle registration or payment of the Commercial Motor Vehicle Tax);
C. Insurance required by 35 RCNY § 58-13;
D. Credit card fees or charges;
E. Up to 3 drivers on a lease at the request of the drivers, which request cannot be unreasonably denied.
A lessor must not accept any payment from a lessee for the purchase or lease of a vehicle. A Medallion lessor or Agent can agree with a driver to provide services or accommodations on an arms-length basis outside the lease, as long as the agreement is in writing, in clear and unambiguous language, and signed by the parties. A Medallion lessor or Agent who provides services or accommodations outside the lease to a leasing driver must keep records of all transactions with that driver and such records must be available for inspection by the Chairperson. A Medallion lessor may not enter into a lease with any person or entity under this paragraph if such Medallion lessor holds more than 2% of shares in a publicly held corporation that sells, leases or finances vehicles and has accepted a payment from such person or entity related to the sale, lease or finance of the Vehicle of such person or entity.
(v) The gasoline surcharge option provided in paragraph 35 RCNY § 58-21(c)(6) is not available to Owners/lessors leasing a Medallion-only under this 35 RCNY § 58-21(c)(3)
(4) Standard Medallion Lease Cap including Long Term Vehicle Lease/Conditional Purchase.
(i) A Lease is covered by this paragraph 35 RCNY § 58-21(c)(4) if it includes all of the following:
A. The lease of a Medallion
B. The conditional purchase agreement for a vehicle; and
C. The vehicle is being conditionally sold to the driver/lessee by any of
1. The Owner of the Medallion or any employee of the Owner, and/or
2. The Owner's Agent or any employee of the Agent, and/or
3. Any Business Entity of which a Business Entity Person of the Owner or Agent, or an employee of Owner or Agent, is a Business Entity Person
4. For purposes of this paragraph, an individual, business entity or business entity person covered by subitems one through three of this item C who is leasing a Medallion to a lessee and who holds more than 2% of the shares in a publicly held corporation that sells, leases or finances vehicles and has accepted a payment from such lessee related to the sale, lease or finance of such lessee's vehicle is deemed to be a party to the vehicle financing arrangement. Accordingly, the total amount charged to the lessee for both the lease of the Medallion and for the sale, lease, or financing of the vehicle cannot exceed the amount of the Standard Lease Cap set forth in subparagraph (ii) of this paragraph.
(ii) The Standard Lease Cap under this section for a Taxicab Medallion and vehicle is
A. $994 weekly for the lease of the Medallion, if the vehicle complies with the requirements of 35 RCNY §§ 67-05 or 67-05.1C and meets the requirements of § 19-533 of the Administrative Code, plus $275 weekly for the portion of the lease covering the conditional purchase of the vehicle; or
B. $952 weekly for the lease of the Medallion, if the vehicle complies with the requirements of 35 RCNY §§ 67-05.1 or 67-05.2, plus $275 weekly for the portion of the lease covering the conditional purchase of the vehicle, except that if the Medallion Owner must place an Accessible Taxicab into service as required under subdivisions (a) through (c) or (e) of 35 RCNY § 58-50, or is currently receiving payments under 35 RCNY § 58-50(j)(2), the weekly lease for that Accessible Taxicab shall include a credit to the driver of $77 per week for the four year period of time required in 35 RCNY § 58-50(f). This reduction is the result of the Medallion Owner's receipt of payment under 35 RCNY § 58-50(j)(1)(ii) and (j)(2).
C. This Standard Lease Cap cannot be charged at any time after title to the vehicle passes (or could have passed) to the lessee such that total payments by the lessee for the vehicle shall not exceed $42,900.
(iii) Title to the leased vehicle must pass to one or more of the lessees, if the lessees request, after all vehicle financing costs have been paid. The conditional seller is not required to transfer title if the lessees have failed to pay all payments due for the vehicle purchase and lease until all such payments have been made.
(iv) The lease of a Medallion together with a vehicle under this paragraph 35 RCNY § 58-21(c)(4) includes within the payment to the lessor the amount due by the Vehicle owner for the Commercial Motor Vehicle Tax.
(v) A lease, and payment of the Lease Cap under this section includes (and the following must be provided to the lessee, except that items G and H are optional):
A. Use of the medallion;
B. All applicable TLC and NYS DMV fees except for TLC vehicle inspection fees;
C. Insurance required by 35 RCNY § 58-13;
D. Credit card fees or charges;
E. All Vehicle purchase and/or finance costs and vehicle sales tax and related costs;
F. Up to 3 drivers on a lease at the request of the drivers, which request cannot be unreasonably denied.
G. A Medallion lessor or Agent can offer coverage for collisions and physical damage to the vehicle to the lessee/purchasers in an amount not to exceed $50 per week, but cannot require that the lessee/purchasers purchase such coverage.
i. The Medallion lessor or Agent can require that a deductible of up to $250 per incident be met before covering or reimbursing costs identified in item G.
ii. For any incident for which a driver has paid a deductible amount authorized under this subsection, if the Medallion lessor or Agent of the taxicab which is the subject of the damages claim receives insurance claim proceeds, litigation proceeds or other proceeds to cover the cost of repair, the lessor must reimburse the driver for the amount previously remitted as a deductible.
H. A Medallion lessor or Agent can agree with a driver to provide services or accommodations on an arm's-length basis outside the lease, as long as that agreement is in writing, in clear and unambiguous language, and signed by the parties. A Medallion lessor or Agent who provides services or accommodations outside the lease to a leasing driver must keep records of all transactions with that driver and such records must be available for inspection by the Chairperson or his or her designee.
I. If the Driver does not opt to receive coverage for collisions and physical damage pursuant to G above, and a Medallion lessor or Agent receives compensation for damages to the vehicle incurred from an entity other than the Driver, any amount previously paid by the Driver as compensation for damages or paid by the Driver in order to repair damages to the vehicle must be refunded to the Driver.
(vi) The gasoline surcharge option provided in 35 RCNY § 58-21(c)(6) is not available to Owners/lessors leasing a Taxicab and vehicle under this 35 RCNY § 58-21(c)(4).
(vii) If the vehicle is unavailable for use for any reason that is not the lessee's responsibility during any part of any week, the lessee's payment of the Lease Cap must be pro-rated. As an example, a vehicle is not unavailable for purposes of this rule if the vehicle is undergoing required maintenance, undergoing repairs as a result of not being properly maintained, or required to appear for inspection at the TLC.
(5) Limits on Additional Charges. In addition to a lease amount no greater than the Standard Lease Cap (as adjusted), an Owner/lessor (as well as any agent or employee of the Owner/lessor) must not request of or accept from any lessee any money or other thing of value, except for the following (this means an Owner/lessor must not charge any tip, tax, surcharge or other fee of any kind above the Standard Lease Cap (as adjusted):
(i) A gas surcharge of $21 per shift (or $126 for drivers leasing under 35 RCNY § 58-21(c)(1)(i) E or F and 35 RCNY § 58-21(c)(2)(i) E or F (with such surcharge to be adjusted as provided below) provided that the Owner/lessor or his or her agent is providing gasoline to the lessee as provided in 35 RCNY § 58-21(c)(6);
(ii) A security deposit and deductions from the security deposit no greater than the amount allowed under subdivision (e) below;
(iii) The discount toll amount for use of the Owner's EZ-Pass® as described in 35 RCNY § 58-27;
(iv) Late Charges
A. For any vehicle leased pursuant 35 RCNY § 58-21(c)(1) or 35 RCNY § 58-21(c)(2), a late charge not to exceed $25.00 per hour for the late return of a vehicle. The total late charge for the late return of a vehicle from any one shift may not exceed the cost of one shift.
B. For any vehicle leased pursuant to 35 RCNY §58-21(c)(3) or 35 RCNY §58-21(c)(4) a late charge not to exceed $50.00 for each weekly lease payment paid late. A late charge can be imposed only if the weekly lease payment is not received within 24 hours of the date and time on which it is due.
(v) A cancellation charge, subject to the provisions of subdivision (i)(5) below;
(vi) Parking tickets and red light violations permitted to be deducted from the security deposit described in subdivision (e) below, provided that the Driver/lessee is allowed to challenge any ticket or violation; and
(vii) If the Owner (or Owner's Agent) is a Taxpayer, the Taxpayer can collect the MTA Tax collected by the lessee/Driver from the lessee/Driver. The MTA Tax must be collected in the following order:
A. The MTA Tax must first be deducted from any credit card reimbursements due as required in subdivision (f) below.
B. The MTA Tax must next be deducted from the security deposit permitted in subdivision (e) below.
C. If not fully paid, then the MTA Tax must be collected from the lessee/Driver.
(viii) In addition to these charges, an Owner can deduct from credit card receipts payable to the Driver amounts collected by the Technology System Provider, pursuant to the Technology System Provider's authorization by the Commission, provided that
A. such amounts are provided by rule of the Commission; and
B. such amounts are timely remitted to the Owner's Technology System Provider or other recipient as approved by the TLC.
35 RCNY § 58-21(c)(5)(viii)(B) Fine: $1,000 and suspension until compliance Appearance REQUIRED
(ix) State and local sales and rental taxes on vehicle rentals.
(x) If contained in the lease, a provision for the recovery of reasonable damages for a breach of the lease contract, including attorneys' fees and costs. Fines paid to the Commission by an Owner or Agent cannot be recovered from a driver as reasonable damages, except for
A. fines incurred as a result of a sublease prohibited by 35 RCNY § 58-21(a)(2), or,
B. for drivers leasing under 35 RCNY §58-21(c)(3) or (c)(4), fines incurred as a result of unauthorized operation by a suspended or revoked driver, or
C. fines imposed on the owner for violation of 35 RCNY § 58-29(b), provided that such fine was assessed because of the conduct of the driver and provided the owner is able to show that the driver had notice of the inspection date, or
D. fines imposed on the owner for violation of 35 RCNY § 58-31(a).
(xi) Credit Card Processing Surcharge for Leases entered into pursuant to 35 RCNY § 58-21(c)(1), 58-21(c)(2), 58-21(c)(3), or 58-21(c)(4):
A. For daily leases under 35 RCNY § 58-21(c)(1) and 58-21(c)(2), an Owner of a Taxicab can charge a $7 surcharge per shift for credit card processing.
B. For weekly leases under 35 RCNY § 58-21(c)(1), 58-21(c)(2), 58-21(c)(3), and 58-21(c)(4), an Owner of a Taxicab can charge a $49 surcharge per week for credit card processing.
(xii) Beginning on January 1, 2015, the Taxicab Improvement Surcharge, which must be paid as provided in 35 RCNY § 66-25.
(6) Optional Gasoline Surcharge: An Owner/lessor, or his or her Agent leasing a Taxicab under 35 RCNY § 58-21(c)(1) or 58-21(c)(2), may chose to provide gasoline to a lessee and charge a gas surcharge in an amount as specified in this section in addition to the Lease Cap provided in 35 RCNY § 58-21(c)(1) or 58-21(c)(2), provided that
(i) Gasoline is provided to the lessee for the entire shift at no additional cost to the lessee.
(ii) The surcharge will be $126 per week (or $21 per shift) until December 31, 2012
(iii) After that date the surcharge will be reset based on the trailing 6 month average as of the date the surcharge is calculated of the New York City Gasoline Price Index issued by U.S. Energy Information Agency and published at www.eia.gov.
(iv) The surcharge will be calculated as of June 30 and November 30 of each year beginning November 30, 2012.
(v) The Commission will post the new surcharge on its Web site by July 15 and December 15 of each year
(vi) The new surcharge will take effect on July 31 and December 31 of each year beginning December 31, 2012. If the Commission has not posted a new surcharge, the prior surcharge will remain in effect.
(vii) Based on the index, the surcharge will be as follows:
When the Index is: The surcharge for Hybrid Electric and Diesel-Fueled taxicabs will be: The surcharge for all other taxicabs will be:
$2.49 or less $13 per shift (or $78 per week) $16 per shift (or $96 per week)
$2.50 to $2.99 $16 per shift (or $96 per week) $19 per shift (or $114 per week)
$3.00 to $3.49 $18 per shift (or $108 per week) $21 per shift (or $126 per week)
$3.50 to $3.99 $21 per shift (or $126 per week) $24 per shift (or $144 per week)
$4.00 to $4.49 $23 per shift (or $138 per week) $26 per shift (or $156 per week)
$4.50 to $4.99 $26 per shift (or $156 per week) $29 per shift (or $174 per week)
$5.00 or more $28 per shift (or $168 per week) $31 per shift (or $186 per week)
(viii) Nothing in paragraph 35 RCNY § 58-21(c)(6) prohibits an Owner/lessor, or his or her Agent leasing a Taxicab under 35 RCNY § 58-21(c)(1) or 58-21(c)(2) from selling gasoline to a lessee independent of any lease payments made under 35 RCNY § 58-21(c)(1) or 58-21(c)(2) as long as such transactions are recorded and available for inspection as required by 35 RCNY § 58-21(b)(3).
35 RCNY § 58-21(c) Fine: First violation: $500 Second and subsequent violations; $1,000 and/or suspension of the Medallion for up to 30 days. In addition to the penalty payable to the Commission, the ALJ must order the Owner to pay restitution to the Driver, equal to the excess that was charged to the Driver or the extra fuel the driver had to pay for. Appearance REQUIRED
(7) Collective Bargaining Exception to the Standard Lease Cap. The provisions of this section do not apply to Owners and lease Drivers whose business relationship is governed by the terms of a collective bargaining agreement that regulates the subject of lease prices.
(d) [Reserved.]
(e) Security Deposit on Taxicab Vehicles.
(1) Security Deposit Provision Permitted. An Owner can include a lease provision for a security deposit from the Driver, provided it complies with the requirements of this subdivision (e).
(2) Permitted Withholdings from Security Deposit. At the termination or expiration of a lease an Owner may be reimbursed from the security deposit only for the following:
(i) Any unpaid but owing lease charges.
(ii) Damage to the vehicle, if the lease clearly and prominently states that the Driver is responsible for damage.
(iii) Any parking tickets issued during the lease.
(iv) Any red light violations issued to the Owner during the lease, under the NYC Department of Transportation's camera surveillance system.
(v) If the Owner (or Owner's Agent) is a Taxpayer, any MTA Tax remaining due from the Driver after deductions from credit card receipts due to the Driver.
(3) Deposit Not to be Used for Owner Violations. An Owner must not require a Driver to pay any summons that is written to the Owner as Respondent, other than those specified above.
35 RCNY § 58-21(e)(3) Fine: First violation: $250; Second violation: $350; Third and subsequent violations $500 and/or suspension of the Medallion for up to thirty days. In addition to the penalty payable to the Commission, the ALJ must order the Owner to pay restitution to the Driver, equal to the excess that was withheld from the Driver, or equal to the amount that the Driver paid, at the requirement of the Owner, to satisfy any summons against the Owner. Appearance REQUIRED
(4) Limits on Amount of Deposit. An Owner must not require a Driver to post any security deposit that is greater in amount than the rate for one lease term. However, if the lease term is for more than one week, an Owner must not require a Driver to pay a security deposit in an amount greater than the lease rate for one week. Examples include:
(i) An Owner who leases a Taxicab for one shift at the rate of $80 per shift can require up to an $80 security deposit.
(ii) An Owner who leases a Taxicab or Medallion for one week at the rate of $500 a week can require up to a $500 security deposit.
(iii) An Owner who leases a Taxicab for six months at the rate of $2,000 a month can require up to a $500 security deposit.
(iv) Special Rule for Long Term leases under 35 RCNY § 58-21(c)(4).
A. A Lease under 35 RCNY § 58-21(c)(4) can include a refundable deposit of up to $5,000, which may be collected at the beginning of the lease or in scheduled payments over time as specified in the lease. An Owner or an Owner's Agent must not accept any deposit in excess of this amount.
B. The weekly lease payment specified in 35 RCNY § 58-21(c)(4) must be credited by an amount equal to the prorated value of the refundable deposit, except that until the lease ends, a deposit equal to the deposit that could be required for a lease of a Medallion under 35 RCNY § 58-21(c)(3)(i) or (ii), as applicable, can be retained by the Owner/lessor or his or her Agent.
C. If the deposit is not fully credited against the lease because of a cancellation, any remaining, uncredited deposit shall be refunded to the lessee/driver within 30 days of termination or cancellation of the lease by the lessor or an Agent of lessor. Note: this does not apply when the driver breaks or terminates the lease prior to the term. The deposit shall be held, and interest shall accrue, in the manner prescribed by 35 RCNY § 58-21(e)(7).
35 RCNY § 58-21(e)(4) Fine: $200 In addition to the penalty payable to the Commission, the Hearing Officer must order the lessor to pay restitution to the Driver, equal to the amount charged to the Driver in violation of this rule. Appearance NOT REQUIRED
(5) Provide Driver Written Receipt and Accounting for Security Deposit.
(i) An Owner must provide written receipts for any security deposits made by a Driver.
(ii) An Owner must provide a Driver with a written itemization of any items withheld or deducted from a security deposit.
35 RCNY § 58-21(e)(5) Fine: $50 Appearance NOT REQUIRED
(6) Return Deposit within 30 Days of Lease Termination.
(i) An Owner must return a security deposit no later than 30 days after the end of the lease term.
(ii) An Owner must return a security deposit either by check or by cash exchanged for a written receipt from the Driver.
35 RCNY § 58-21(e)(6) Fine: $50 In addition to the penalty payable to the Commission, the Hearing Officer must order the lessor to pay restitution to the Driver, equal to the amount not returned to the Driver in violation of this rule. Appearance NOT REQUIRED
(7) Interest on Security Deposit.
(i) An Owner who requires a security deposit must secure the funds in an interest-bearing account in a bank or credit union within the City of New York, in an account devoted to security deposits and not commingled with funds of the Owner.
(ii) The Owner must indicate in writing provided to the Driver the name and address of the bank or credit union and the applicable account number.
(iii) Interest on the security deposit must accrue to the benefit of the Driver furnishing the security, except, however, that the Owner can retain one percentage point of any interest, as compensation for bookkeeping expenses.
35 RCNY § 58-21(e)(7) Fine: $50 Appearance NOT REQUIRED
(8) Collective Bargaining Agreement Exception to Limitations on Security Deposits. The provisions of this section do not apply to Owners and lease Drivers whose business relationship is governed by the terms of a collective bargaining agreement that regulates the subject of security deposits.
(f) Non-Cash Payments.
(1) For any lease of a Taxicab (vehicle and Medallion) under 35 RCNY § 58-21(c)(1) or 58-21(c)(2), an Owner (or Owner's Agent) must pay a Driver, on a daily basis, the total amount of all non-cash payments, including E-Payments through the Technology System (if any), made during the Driver's shift, less the Taxicab Improvement Surcharge payable to the Taxicab Improvement Fund as set forth in 35 RCNY § 66-25. For trips provided in WAV vehicles, the Taxicab Improvement Driver Incentive Payment will be paid directly to the Driver at the time and in the manner required by the Commission. Drivers leasing a Taxicab on a weekly basis under 35 RCNY § 58-21(c)(1)(i)E, 58-21(c)(1)(i)F, 58-21(c)(2)(i)E or 58-21(c)(2)(i)F may, at the Driver's discretion, be paid on a weekly basis. Payments to a Driver and access to these funds must be provided at no cost to the Driver. An Owner or the Owner’s Agent must:
(i) Pay the Driver, including any sublessee Drivers, and if the Owner or the Owner’s Agent delegates or assigns this responsibility to another party, the Owner or the Owner’s Agent shall be responsible for making full payment to the Driver if any designee or assignee fails to pay the Driver as required, and Driver reports non-payment to the Owner or Owner’s Agent within 90 days of non-payment.
(2) For any lease not described in paragraph (1), an Owner (or Owner's Agent) must pay the Driver, on no less than a weekly basis, the total amount of all non-cash payments, including E-Payments through the Technology System (if any), made during that period, less the Taxicab Improvement Surcharge payable to the Taxicab Improvement Fund as set forth in 35 RCNY § 66-25. For trips provided in WAV vehicles, the Taxicab Improvement Driver Incentive Payment will be paid directly to the Driver at the time and in the manner required by the Commission. Payments to a Driver and access to these funds must be provided at no cost to the Driver. An Owner or the Owner’s Agent must:
(i) Pay the Driver, including any sublessee Drivers, and if the Owner or Owner’s Agent delegates or assigns this responsibility to another party, the Owner or the Owner’s Agent shall be responsible for making full payment to the Driver if any designee or assignee fails to pay the Driver as required, and Driver reports non-payment to the Owner or the Owner’s Agent within 90 days of non-payment.
35 RCNY § 58-21(f)(1) & (2) Fine: $100 In addition to the penalty payable to the Commission, the ALJ must order the Owner to pay restitution to the Driver, equal to the cost to the Driver. Appearance NOT REQUIRED
(3) An Owner (or Owner's Agent) must not withhold from the payments any credit card pass-along, fees or charges.
35 RCNY § 58-21(f)(3) Fine: First violation: $200 Second violation: $300 Third violation: $500 In addition to the penalty payable to the Commission, the ALJ must order the Owner to pay restitution to the Driver, equal to the excess amount that was charged to the Driver. Appearance REQUIRED
(4) If an Owner (or Owner's Agent) is a Taxpayer, the Taxpayer can deduct from the credit card receipts payable to the Driver the amount due for the MTA Tax from the Driver's trips.
(5) An Owner can deduct from credit card receipts payable to the Driver amounts retained by or payable to the the Technology System Provider, provided that such amounts are provided for by rule of the Commission.
(g) Receipts to Drivers for All Payments.
(1) An Owner (or Owner's Agent) must give a Driver a written receipt for every payment or deduction made under the lease and these Rules.
(2) The receipt must include the name of the Driver and the number of the Medallion subject to the lease.
(3) The receipt must clearly state the following information with respect to the payment or deduction:
(i) The date
(ii) The name of the recipient
(iii) The amount
(iv) The purpose
(v) The number of the section of this chapter that authorizes the payment or deduction
(vi) For leases under 35 RCNY § 58-21(c)(4), the following additional information:
A. The weekly amount received, itemized by the amount paid for the Taxicab Medallion portion of the lease and the amount paid for the conditional purchase of the vehicle;
B. The cumulative amount paid towards the conditional purchase of the vehicle;
C. The remaining amount to be paid for the conditional purchase of the vehicle; and
D. The remaining number of weekly payments for the conditional purchase of the vehicle based on the current contract terms.
E. For leases of Medallions for which the Medallion Owner must place an Accessible Taxicab into service as required under subdivisions (a) through (c) or (e) of 35 RCNY § 58-50 or is currently receiving payments under 35 RCNY § 58-50(j)(2), a credit to the Driver in the weekly payment in the amount of $77 as a result of the Medallion Owner's receipt of payment under 35 RCNY § 58-50(j)(1)(ii).
35 RCNY § 58-21(g) Fine: $200
(h) Lease Must Be in Writing.
(1) Every Taxicab operating lease (including any amendments), must be in writing, and must be signed by the Owner (or a person authorized to act on behalf of the Owner), and by the leasing Driver or Drivers. The lease must be written in clear and unambiguous language. Electronic signatures are permissible for electronic leases.
(2) A copy of the fully executed lease must be provided to the leasing Driver or Drivers.
35 RCNY § 58-21(h) Fine: $500 Appearance NOT REQUIRED
(i) Terms. Every lease must contain the following terms:
(1) The type and term of the lease. The lease must state the beginning date and time of the lease and the ending date and time of the lease.
(i) A weekly lease must run for seven consecutive calendar days.
(ii) A shift must run for 12 consecutive hours.
(2) Costs covered by the lease. The lease must state the total lease amount, and must itemize that total cost, including:
(i) The amount of the lease that applies to the medallion and the amount, if any, that applies to the vehicle
(ii) The amounts, if any, of the security deposit
(iii) The gasoline surcharge if there is one
(iv) For leases under 35 RCNY § 58-21(c)(4), the vehicle sales price and an itemized total of all other fees and costs to be paid before title to the vehicle will be passed to the Driver
(v) Any other costs that the Driver will be charged.
(3) Reference Authorizing Rule Sections.
(i) For each itemized cost listed above (in subparagraph (2)), the lease must include a reference to the Commission Rule authorizing the Owner to charge the cost to the Driver.
(ii) The lease must either recite the complete text of each Rule or state the address of the Commission's Web page on which the Rule is published.
(4) Overcharges. Every lease must contain clearly legible notice that overcharging a lessee/Driver is prohibited by the Commission's Rules, and that complaints of overcharges may be made in writing to the Commission or by telephone call to 311.
(5) Charges Upon Cancellation.
(i) If an Agent demands the return of a Medallion upon the request of an Owner, the Driver has the right to request the Agent to provide a replacement Medallion and, if the Agent provides another Medallion, the Driver will not be responsible for the costs of hacking up a replacement vehicle.
(ii) Limits on Cancellation Charge. For any daily or weekly lease of a taxicab (vehicle and medallion) an Owner must not require a Driver to pay a cancellation charge that is greater in amount than the rate for one lease term. However, if the lease term is for more than one week, an Owner must not require a Driver to pay a cancellation charge in an amount greater than the lease rate for one week. Examples include:
A. An Owner who leases a Taxicab or Medallion for one shift at the rate of $80 per shift can require up to an $80 cancellation charge.
B. An Owner who leases a Taxicab or Medallion for one week at the rate of $500 a week can require up to a $500 cancellation charge.
(iii) A cancellation charge will only be permitted where the lease also provides that:
A. Owner can only charge a Driver a cancellation charge if the Driver is late in making lease payments at the time the Driver cancels the lease.
B. When a cancellation payment is made, the Driver's obligation to make lease payments terminates immediately.
(6) Deposit information. Each lease must include the information regarding deposits required by 35 RCNY § 58-21(e).
(7) No Driver Lease Payments through Technology System. An owner may not allow a driver to use the driver's personal credit card to make a lease payment pursuant to this section utilizing the Technology System.
35 RCNY § 58-21(i) Fine: First violation $500 Second and subsequent violations: $1,000 and/or suspension of the Medallion for up to thirty days. In addition to the penalty payable to the Commission, the administrative law judge must order the owner to pay restitution to the driver, equal to the excess or non-authorized charge that was charged to the driver. Appearance REQUIRED
(j) Retaliation.
(1) An Owner must not retaliate against any Driver for making a good faith complaint against any Owner for violation of the leasing provisions in 35 RCNY § 58-21.
(2) "Retaliation" will be broadly construed, and will include imposing any adverse condition or consequence on the Driver or withholding or withdrawing any beneficial condition or consequence from the Driver.
35 RCNY § 58-21(j) Fine: $1,000 plus restitution to the driver for losses for the first offense and a fine of $10,000 plus restitution to the driver for the second offense within five years. Appearance NOT REQUIRED
(Amended City Record 9/25/2015, eff. 10/25/2015; amended City Record 10/23/2015, eff. 11/22/2015; amended City Record 3/4/2016, eff. 4/3/2016; amended City Record 9/22/2016, eff. 10/22/2016; amended City Record 5/17/2018, eff. 6/16/2018; amended City Record 12/11/2018, eff. 1/10/2019; amended City Record 2/12/2020, eff. 3/13/2020; amended City Record 2/2/2023, eff. 3/4/2023; amended City Record 5/10/2023, eff. 6/9/2023; amended City Record 6/20/2024, eff. 7/20/2024; amended City Record 4/2/2025, eff. 5/2/2025)
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/0-0-0-67018Fetched: 10/24/2026