Archives of the Mayor's Press Office

FOR IMMEDIATE RELEASE
Date: October 10, 1997

Release #603-97

Contact: Colleen Roche 212-788-2958
Jennifer Chait (212) 788-8479


MAYOR GIULIANI VETOES COUNCIL BILL NO.1038-B -- ONE YEAR MORATORIUM ON COMMUTER VAN OPERATIONS REMARKS BY MAYOR RUDOLPH W. GIULIANI AT PUBLIC HEARING ON LOCAL LAWS

There is one bill before me today for consideration. Introductory No. 1038-B sponsored by Council Members Dear, Eisland, McCaffrey and Spigner, would establish a one-year moratorium on the acceptance, processing, and approval of any applications for authorization to operate or expand a commuter van service.

I do not approve of this attempt to eliminate an industry that is needed and supported by many communities throughout this City. This bill is illegal. Moreover, it is inconsistent with the State law governing commuter vans and contrary to the transportation, public safety, economic development and governmental interests of the City.

A moratorium of any length will be detrimental to the citizens of New York. Commuter vans play an important role in the City's transportation network, particularly in areas that are insufficiently served by the existing mass transit system. The main purpose of commuter vans is to provide a cost effective way to complement existing mass transit systems by providing direct services between points of origin and destination which are often far removed from designated bus routes or subway lines. Commuter vans have flourished in many communities where mass transit is inadequate and few people have access to cars. Commuter vans play an important role in providing these communities with safe, efficient, affordable and convenient transportation to assist them in traveling to and from work, school, day care, medical centers and shopping districts.

Licensed and regulated commuter vans have provided employment and entrepreneurial opportunities for small businesses and have increased the number of jobs in local communities. Commuter van companies have particularly flourished in neighborhoods with large concentrations of immigrants who have contributed so greatly to the revitalization of many areas in the City over the last decade. -more-

It is important to license and regulate commuter vans in order to protect the safety of the public, by ensuring that van services meet all insurance, inspection and other safety regulations required by law. A legislatively imposed moratorium on van applications of an indefinite duration will force those companies that choose to run legitimate businesses, to operate illegally, endangering the welfare of city residents.

Intro. 1038-B highlights the legal difficulties created by the "call-up" provision of Local Law 115 of 1993, which enables the Council to render a final determination on all van applications approved by the Taxi and Limousine Commission, effectively giving the Council control over the approval process and making the moratorium pointless. Local Law 115 of 1993 was signed into law by my predecessor, despite serious concerns regarding the appropriateness under the New York City Charter of its authorization for the Council under the "call-up" provision, to make what are properly administrative decisions pertaining to individual applications for operating authority. The "call-up" provision also divests the agency of its responsibility under State law to make final determinations regarding operating authority.

The moratorium provision compounds the inconsistency with State law. When the State transferred its authority over commuter vans to the City in 1993, the State Legislature and the Governor required, as a condition for the transfer of authority, that a designated City agency shall assume the process of accepting applications and making final determinations to grant operating authority. The Council's proposed prohibition on the acceptance of van applications unlawfully divests the Taxi and Limousine Commission of the responsibility transferred to it from the State, effectively repealing a necessary element of the City's jurisdiction over commuter vans. Any local law that would attempt to infringe upon TLC's ability to accept, review and determine whether to grant authority must be viewed as inconsistent with New York State enabling legislation and would most certainly expose the Council to potential litigation.

The supporters of this moratorium legislation have used various arguments to voice opposition to the commuter van industry, such as insufficient enforcement against illegal vans throughout the City, and the need for further extensive studies on commuter vans. I am confident that my administration has responded appropriately and expeditiously to all concerns raised. The City's enforcement efforts to rid our streets of illegal van operators have been vigorous, despite the Council's claims to the contrary. This year alone, over 950 illegal vans have been seized and over 4,100 summonses have been issued to van operators for various violations. This represents a 350% increase from the same period in 1996. In January of 1997, the Department of City Planning along with the Department of Transportation provided the City Council with such a study. The study identified areas throughout the City which would benefit from commuter van operations and showed that a real need exists.

I recently advised City Council Speaker Peter Vallone that my administration would expedite the completion of a more comprehensive study on this issue so that future van applications could be reviewed within its context. I have instructed the Departments of City Planning and Transportation to complete and release that comprehensive study by the end of November. Therefore, this moratorium is particularly inappropriate in light of my administration's good faith efforts to address these issues expeditiously.

If this legislation were to become law, hardworking people in local communities throughout this City will be denied the opportunity to fulfill their dreams of owning their own business. This bill neither meets the public's obvious need for this service, nor promotes the goal of providing greater economic opportunity and improving the quality of life of our City's neighborhoods.

Therefore, I cannot support this bill or what it represents_an outright attempt of dubious legality to destroy a viable and necessary industry, predominately owned and operated by immigrants who came to this country and this city for greater job opportunities.

It is for these reasons that I now veto this legislation, and I urge the City Council and its members to reconsider their support of this bill.

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