CHAPTER 125

FORMERLY

HOUSE BILL NO. 158

AS AMENDED BY SENATE AMENDMENT NO. 2

AN ACT TO AMEND CHAPTERS 13 AND 18, TITLE 2 AND CHAPTER 1, TITLE 26 OF THE DELAWARE CODE RELATING TO REGULATION OF PUBLIC CARRIERS.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:

Section 1. Amend §1801, (5), Chapter 18, Title 2, Delaware Code, by adding thereto after the words "traction railway," the words "taxi-cab, limousine".

Section 2. Amend §1801, (II), Chapter 18, Title 2, of the Delaware Code, by adding thereto after the words "traction railway" the word "taxi-cab"; and by adding the words "as a commercial venture whether operated for profit or not" after the words "transportation related services".

Section 3. Amend §1801, Chapter 18, Title 2, Delaware Code, by adding thereto new subsections (12), 113) and (14) to read as follows:

"(12) 'Taxicab' means any self-propelled motor vehicle having a passenger capacity exclusive of driver of 11 persons or less engaged in the transportation with a driver for hire of persons and their accompanying property, or of small packages on isolated occasions and not as part of regular operations, over irregular routes between termini which are not fixed, provided, however, that the utilization of taxicab stands or holding points shall not consitute fixed termini, and excluding, however, carpools, vanpools and public agency vehicles not operated as a commercial venture, and ambulances, vehicles used exclusively for the transportation of decedents and persons participating in funeral services, vehicles used solely to provide free transportation services for customers of the business establishment operating said vehicles, and rental or leased vehicles which rental or lease does not include a driver, provided, however, that no motor vehicle excluded under this definition shall be used on a for-hire basis with a driver except as authorized by this Chapter.

(13) 'Limousine' is a self-propelled motor vehicle having a passenger capacity, exclusive of driver, of 18 persons or less engaged in the transportation with a driver for hire of persons and their accompanying property over regular or irregular routes between two termini at least one of which is fixed and which motor vehicle is not equipped with a taxi meter as a means of computing the rate, fare or compensation to be charged for such transportation, but excluding, however, carpools, vanpools and public agency vehicles not operated as a commercial venture, and ambulances, vehicles used exclusively for the transportation of decedents and persons participating in funeral services, vehicles used solely to provide free transportation services for customers of the business establishment operating said vehicles, and rental or leased vehicles which rental or lease does not include a driver, provided, however, that no motor vehicle excluded under this definition shall be used on a for-hire basis with a driver except as authorized by this Chapter.

(14) 'Council' means the Council on Transportation."

Section 4. Amend §1801 (7), Chapter 18, Title 2, Delaware Code, by striking said subsection in its entirety and substituting in lieu thereof a new subsection (7) to read as follows:

"(7) 'Limousine service' means the providing of transportation of passengers for hire with a driver by a limousine as defined in subsection (13) where at least one of the two termini is fixed."

dispatching companies and organizations, on the one hand, and, on the other, such certificated taxicab companies and operators. The Authority shall have power to void any contracts and services of any such management, maintenance and dispatching company or organizaion upon proper and adequate proof of knowing and repeated non-compliance by such company or organization with such laws, rules, regulations, practices and orders."

Section 6. Amend §102 (2), Chapter 1, Title 26 of the Delaware Code, by striking the word "taxi-cab," as the same appears after the word "any" and before the word "steam".

Section 7. Amend §1321 (b), Chapter 13, Title 2, of the Delaware Code by striking paragraph (3) of said subsection in its entirety and substituting in lieu thereof a new paragraph (3) to read as follows:

"(3) Be responsible for the performance of public carrier regulatory duties and functions as outlined in Chapter 18, Title 2, Delaware Code. The regulation of public carriers may include their property, property rights, equipment, facilities, franchises, rates, fares, tariffs, practices, measurement and service;".

Section 8. Amend Section 1802 (c), Chapter 18, Title 2, Delaware Code, by striking said subsection in its entirety and substituting a new subsection (c) to read as follows:

"(c)(i) Subject to the provisions of Paragraph (ii) of this subsection (c) immediately following, no public carrier subject to the regulation of the Authority shall commence any new operations nor continue any existing operation, nor shall any public carrier begin any extension of its operations, without having first obtained from the Authority a Certificate of Public Convenience and Necessity showing that the public necessity and the public convenience each require such proposed operations. The Authority, after hearing, upon notice, may impose such terms and conditions upon the Certificate as may be required by the Public Convenience and Necessity. In considering and acting upon verified applications, petitions or written requests for Certificates of Public Convenience and Necessity other than those filed with the Authority pursuant to the provisions of Paragraph (ii) of this subsection (c) immediately following, the Authority, as some of the conditions to granting a Certificate of Public Convenience and Necessity, shall require that the applicant, petitioner or requestor sustain a burden of proof of affirmatively showing, among other things,

(1) That his or its proposed operations will serve a useful public purpose, a useful public necessity and a useful public convenience responsive to a public demand, a public necessity and a public convenience which demand, necessity and convenience cannot or will not be met by existing public carriers and their existing Certificates or operating authorities;

(2) That, as to proposed taxicab or proposed limousine services and operations, he or it has both the financial ability and the operational ability, knowledge and fitness to provide the proposed taxicab or the proposed limousine services and operations, as the case may be;

(3) That, as to proposed taxicab or proposed limousine services and operations, his or Its proposed taxicab or proposed limousine operations and services will not have any significant adverse impact upon the similar motor-vehicle for-hire transportation industry in the territories involved;

(4) That, as to proposed taxicab or proposed limousine services and operations, his or its proposed taxicab or proposed limousine operations and services will not have any significant adverse economic, social or environmental impact;

(5) That, as to proposed taxicab or proposed limousine services and operations, he or It and his or its motor vehicles have fully complied with all provisions of the motor vehicle laws of the State of the Delaware applicable to taxicabs and to taxicab operations and/or to limousines and to limousine services and operations, as the case may be, including but not limited toSubchapter VI of Chapter 21, Title 21, Del. Code, as amended and supplemented from time to time; and

(6) That, as to proposed taxicab or proposed limousine services and operations, his or its taxicab vehicles or limousine vehicles, as the case may be, are each covered by and with a public liability and property damage insurance policy or policies as required by all applicable Delaware statutes in at least the minimum amounts required by Section 1802A of this Chapter 18.

(ii) If any individual, partnership, association, corporation, joint stock company, or any association of individuals engaged in the prosecution in common of a productive enterprise (commonly called a 'cooperative') or the lessees, trustees or receivers thereof, is holding itself out as being in bona fide operations as a commercial venture operated for profit within this State on the effective date of this Act in any taxicab business, operation, service, plant, system or equipment, for public use and is engaged in such bona fide operations as of such date, the Authority shall issue a Certificate of Public Convenience and Necessity authorizing such person, party or legal entity without further proceedings to continue operating the said taxicab business, operation, service, system, plant and equipment, to the same extent and scope as said person, party or legal entity was authorized under and pursuant to the regulatory power and approval of the Public Service Commission of Delaware to engage in said operations and was holding itself out as engaging in said operations as of the effective date of this Act, such Certificate to identify by number and date of issuance the Certificate under which the application is carrying on such operations and such certificate to be and to constitute a franchise which creates and represents a proprietary interest owned by the holder of such Certificate, provided, however, that an application for such Certificate of Public Convenience and Necessity must be filed with the Authority on a form approved by the Authority within one hundred twenty (120) days after the effective date of this Act. Pending the determination of any such application the continuance of such operations and of holding one's self out to engage in such operations without a Certificate of Public Convenience and Necessity from the Authority shall be lawful. Interruptions of service in such operations over which such person, party or legal entity, or the predecessor in interest thereof, had no control, shall not be considered in determining whether or not there has been an abandonment of any such operations. In issuing any Certificate of Public Conveniences and Necessity under this subsection, the Authority, in its discretion may define or limit the territory or territories in this State within which the activities authorized by the Certificate may be conducted but in no such case shall territory or territories be smaller than the territory or territories in this State in which the applicant had authority to engage in such operations and was holding itself out bona fide to engage in such operations as of the effective date of this Act. The Authority shall have power to put a maximum limit on the number of taxicab vehicles which can be operated under any Certificate of Public Convenience and Necessity issued under this Paragraph (ii) but it cannot limit such number below the number of taxicab vehicles which were in the applicant's fleet of taxicab vehicles at the effective date of this Act, plus a number equal to 20 percent of the total number in such fleet. The application for a Certificate of Public Convenience and Necessity under this Paragraph (ii) shall be verified and shall contain such information as the Authority deems necessary to show that the applicant was holding itself out to engage in such operations, the extent and scope of such holding out, and that the applicant had been engaged in such operations and in holding itself out to engage in such operations pursuant to authority of and with the approval of the Public Service Commission of the State of Delaware. The Authority may adopt and approve such forms as it deems necessary for this purpose.

The provisions of subparts (1) to (5), inclusive, of Paragraph (i) of this subsection (c) immediately preceding shall not apply to applicants, petitioners and requesters filing application, petitions and requests pursuant to this Paragraph (ii) or to their applications, petitions and requests filed under this Paragraph (ii). However, if a holder of a Certificate or Certificates of Public Convenience and Necessity issued pursuant to this Paragraph (ii) shall

thereafter seek to obtain authority to operate one or more taxicab vehicles in excess of the total number allowed to such holder under the provisions of this Paragraph (ii) and under the provisions of Section 1802A of this Chapter 18, then as to such excess taxicab vehicle or vehicles, all of the provisions of Paragraph (i) of this subsection (c) shall be applicable.

Section 9. Amend Chapter 18, Title 2, Delaware Code, by adding two new sections between Sections 1802 and 1803 to be known as Section 1802A and Section 1802B, respectively, to read as follows:

§1802A. Regulatory Requirements, Power and Limitations.

(1) The Authority shall set limits on the maximum number of vehicles which may be operated under any Certificate of Public Convenience and Necessity, provided that any person or party obtaining a Certificate of Public Convenience and Necessity under Section 1802 (c) (ii) of this Chapter 18 may not be limited to operate fewer vehicles than were in such person's or party's fleet of taxicab vehicles at the effective date of this Act, plus a number equal to 20 percent of the total number in such fleet and further the Authority shall prescribe by rule, regulation and order for the division of a person's or party's Certificate of Public Convenience and Necessity into as many Certificates of Public Convenience and Necessity as the total number of taxicab vehicles which that person or party is authorized to operate under his or its Certificate of Public Convenience and Necessity, so that the Authority may by rule, regulation and order further empower and authorize holders of Certificates of Public Convenience and Necessity to sell and assign their taxicab vehicles, along with a Certificate of Public Convenience and Necessity for each vehicle, to others to operate in the taxicab business under such sold Certificate or Certificates of Public Convenience and necessity provided that at no time shall there be outstanding a greater aggregate number of Certificates of Public Convenience and Necessity for taxicab operators than has been authorized in the aggregate by the Authority and provided further, that as any holder of a Certificate of Public Convenience and Necessity so sells and assigns a taxicab vehicle or vehicles with an accompanying Certificate or Certificates of Public Convenience and Necessity the total number of vehicles such holder is permitted to operate is reduced by the number such holder so sells and assigns.

(2) The Authority shall prescribe by rule, regulation and order for the manner, types and amounts of fares, rates and compensation to be charged for transportation in taxicab vehicles and for increases and decreases in such fares, rates and compensation, provided that nothing in such rules, regulations and orders shall be less stringent than or otherwise deviate from any of the applicable provisions of this Chapter 18 or of any other statutes of the State.

(3) The Authority shall not prohibit shared rides, group rides, contract services, prearranged service, services to an identified segment of the population, fiat rates for all authorized vehicles from one point or area to another, or package deliveries, but the Authority may prescribe the manner of, rates and fares for and other conditions for such types of transportation services by rule, regulation or order, provided that any such rules, regulations or orders shall not have the practical effect of prohibiting any such type or types of transportation services.

(4) The Authority may prescribe by rule, regulation or order minimum amounts and kinds of insurance which shall be earned by public carriers as conditions to their right and authority to operate as such, as well as minimum requirements for insurance carriers issuing such insurance policies, provided that no public carrier shall be permitted to operate as such unless and until each and all of its vehicles transporting passengers and/or property shall be covered by and with a public liability and property damage insurance policy or policies issued by an insurance company or companies authorized to engage in such insurance business in Delaware with coverages in the aggregate of at least $100,000 for one person injured or killed in any one accident, $200,000 for more than one person Injured and/or killed in any one accident for taxicabs and $300,000 for more than one person injured and/or killed in any one accident for limousines, and $30,000 for loss or damages in any one accident to property of others, excluding cargo.

§1802B. Rates

(1) Every public carrier shall file with the Authority complete schedules of every classification of fares or rates employed by it and of every individual or joint fare, rate, tariff or compensation charged or imposed by the public carrier for any public utility service offered or rendered in this State. A current copy of all rates, fares or tariffs in effect shall be kept available for inspection by the public at each public office of the carrier where requests for service are received and in or on each vehicle of the carrier utilized in performing its public utility services. Every application, petition or written request for a Certificate of Public Convenience and Necessity shall include a proposed tariff or fare or rate schedule requiring approval by the Authority.

(2) Rates, fares, tariffs and charges of each public carrier for his or its public utility services may be judged with reference to his or its operating ratio, which shall always be a relevant factor in rate proceedings, or by reference to the rate base of the carrier, a fair rate of return for the carrier and to the revenues and expenses of the carrier. The Authority shall have access upon reasonable notice, to all records, books and documents of a public carrier which are relevant in enabling the Authority to act upon rates, fares, tariffs and charges of the carrier, including records, books and documents in the custody or under the control of the public carrier and of any department, board, commission or agency of this State or any political subdivision thereof. If the Authority determines to establish a rate base for a public carrier, it may adopt either a fair value or an original cost rate base and it may determine every fact, matter or thing which, in its judgment, does or may have any bearing thereon.

(3) No public carrier shall make, impose or exact any unjust or unreasonable or unduly preferential or unjustly discriminatory individual or joint rate or fare for any service supplied or rendered by it within this State, or adopt, maintain or enforce any regulation, practice or measurement which is unjust, unreasonable, unduly preferential or unjustly discriminatory or otherwise in violation of law, or make, or give, directly or indirectly, any undue or unreasonable preference or advantage to any person or corporation or to any particular description of traffic, in any respect whatsoever.

(4) Unless the Authority otherwise orders, no public carrier shall put into effect any change in any existing rate or fare or any new rate or fare except after thirty (30) days notice to the Authority which notice shall plainly state the new rate or fare or the changes proposed to be made in the rates or fares then in force and the time when the new rate or fare or the changes will go into effect. All proposed changes shall be shown by filing with the notice new schedules incorporating such changes or the proposed changes shall be plainly indicated at the time of filing the notice upon schedules filed with the Authority and in force at the time and kept open to public inspection. All proposed changes shall be published at least once a week for two (2) consecutive weeks during the thirty (30) day period in a newspaper of County-wide circulation in each County in which the public carrier holds itself out to operate, in a form approved by the Authority. The Authority, for good cause shown, may allow temporary changes in rates or fares to be put into effect without requiring the thirty (30) days notice and/or publication under such conditions as it may prescribe, provided, however, that such temporary changes shall be in effect for only so long as no final action is taken by the Authority approving or rejecting such changes in whole or in part on a permanent basis. All changes in rates or fares, once effective on either a temporary or permanent basis, shall be immediately shown or indicated upon its schedules by such public carrier. The changes in rates or fares covered by this subsection include changes which have the effect of either increasing or decreasing existing fares or rate in whole or in part.

(5) Whenever there is filed with the Authority by any public carrier any notice of a change or changes in rates or fares, or any notice stating a new rate or fare, the Authority may, either upon complaint or upon its own initiative, upon reasonable notice, enter upon a hearing concerning the lawfulness of such rate or fare or such changes, provided the order for such a hearing is made by the Authority no Inter, than the expiration of the twentieth day following the date

when the notice was filed with the Authority, not counting the day of filing in the computation of such twenty (20) day period. If no such order is made by the Authority within said twenty (20) day period, then the proposed change or changes in rates or fares, or the new rate or fare, as the case may be, shall become effective at the expiration of the thirtieth day following the date when the notice was filed with the Authority, not counting the day of filing M the computation of such thirty (30) day period. If an order for a hearing is made within said twenty (20) day period, the Authority shall with such order suspend the effectiveness of the new rate or fare, or of such of the proposed changes in rates or fares as it deems should not become effective at the expiration of the thirtieth day following the filing of the notice, provided, however, that the Authority may with such order permit the new rate or fare or a portion or all of such changes in rates or fares to be put into effect on a temporary basis pending the hearing and a final decision by the Authority. If the Authority has not held all of the hearing and rendered its final decision by the expiration of the ninety-fifth day following the date when the notice was filed with the Authority (not counting the day of filing in the computation of such ninety-five (95) day period) then the new rate or fare, or the proposed changes in rates or fares, as the case may be, even if then in effect on a temporary basis, shall go into effect automatically and as if finally approved by the Authority. If the Authority holds all of the hearing and renders its final decision within such ninety-five (95) day period, only so much of the changes or so much of the new rate or fare as the case may be, as shall be approved by the Authority in its final decision shall go into effect, at the end of such ninety-five (95) day period. All portions of proposed changes in rates or fares which are not suspended by the order of the Authority within the said twenty (20) day period, and which are not permitted by such order to become effective on a temporary basis as provided above, shall automatically go into effect at the end of the said thirty (30) day period as if finally approved by the Authority.

(6) The Authority on its own initiative may, after hearing, upon notice, by order in writing, fix just and reasonable individual rates or fares, joint rates or fares, charges or schedules thereof, as well as commutation, mileage and other special rates or fares, which shall be imposed, observed and followed thereafter by any public carrier affected by such order, if the Authority determines upon and after such hearing, that any existing individual rate or fare, joint rate or fare, toll, charge or schedule thereof, or commutation, mileage or other special rate or fare, is unjust, unreasonable, insufficient, unlawful, or unjustly discriminatory or preferential. No order of the Authority entered pursuant to this subsection (6) and requiring a change in rates or fares, shall become effective until at least thirty (30) days after service thereof upon the public carrier affected, except upon such carrier's written consent.

(7) In any proceeding upon the motion or initiative of the Authority, or upon complaint, or upon application of a public carrier, involving any proposed or existing rate or fare of any public carrier, or any proposed change in rates or fares, or any new rate or fare, the burden of proof to show that the rate or fare involved is Just and reasonable, is upon the public carrier. The public carrier shall have the burden of proof in justifying every accounting entry of record questioned by the Authority. The Authority shall give preference to the hearing and decision of any rate or fare proceeding over all other proceedings and decide the same speedily as possible."

Section 10. Amend Chapter 18, Title 2, Delaware code, by adding at the end thereof two new Sections to be known as 51819 and §1820, respectively, to read as follows:

"§1819. Appeal from Authority's Order.

(a) Any public carrier affected by any final order made by the Authority, or any other original party to or any intervenor in the proceedings before the Authority in which such order was entered and affected thereby, may appeal from such order to the Superior Court within thirty (30) days from the date upon which such order is served. The appeal shall be filed with the Prothonotary of the Court

and summons in the appeal shall be served upon the secretary of the Authority either personally or sent by certified mail to the office at Dover, Delaware, and shall he served upon all other parties to the proceeding below, other than the appellant.

(b) The appeal shall not be a trial de novo but shall be based upon the record before the Authority.

(a) The scope of review before the Court shall be that the Authority's findings shall be upheld if they are supported by sufficient evidence, free of error of law and not arbitrary or capricious.

§1820. Stay Pending Appeal.

The filing of an appeal from any order of the Authority shall in no case supersede or stay the order of the Authority, unless the Superior Court so directs, and the appellant may be required by the Court to give bond in such form and of such amount as the Court, allowing the stay, requires."

Approved July 7, 1979.