MAYOR GIULIANI SIGNS BILL THAT AMENDS THE ADMINISTRATIVE CODE IN RELATION TO THE LIABILITY OF RENTAL VEHICLE COMPANIES WHEN RENTED VEHICLES ARE USED FOR ILLEGAL FOR-HIRE ACTIVITY
--Remarks By Mayor Rudolph W. Giuliani At Public Hearing On Local Laws--
The first bill before me today is Introductory Number 104-A, sponsored by Council Member Dear. This bill would amend the Administrative Code of the City of New York, with respect to clarifying the liability of rental vehicle companies in situations where lessees have used rental vehicles for illegal for-hire activity.
Currently, the Taxi and Limousine Commission issues summonses carrying penalties ranging from $200 to $1,500 when a vehicle is alleged to have been operated as a for-hire vehicle without the required TLC license. Both the driver and the owner of the rental vehicle are assessed such fines upon conviction. Under this proposed law, vehicle rental companies will not be subject to conviction and penalties if they establish that they had no knowledge of the vehicle's use as a for-hire vehicle.
This legislation would codify an existing TLC practice of permitting a rental vehicle owner to raise as an affirmative defense that the rental vehicle company neither knew, nor had reason to know, that the lessee was illegally using the vehicle as a taxicab, coach, or wheelchair accessible van in the city. The proposed law does, however, hold a rental vehicle owner responsible for permitting the unlicensed operation of a for-hire vehicle when the rental vehicle owner knew, or should have known, that the driver was using the vehicle for an unlawful purpose.
For the reasons previously stated, I will now sign the bill.
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