D.C. Act 25-693. Carrier-for-Hire Oversight and Enforcement Amendment Act of 2024.

AN ACT

To amend the District of Columbia Taxicab Commission Establishment Act of 1985 to authorize the Department of For-Hire Vehicles establish definitions related to carriers-for-hire, trade dress, and delivery mode, to update the Department of For-Hire Vehicles agency organization to include carriers-for-hire, to expand the Department's duties, jurisdiction, and powers to include carriers-for-hire, to establish requirements of carrier-for-hire companies, including registration with the Department, verification of the vehicle in use by an operator, and data disclosure standards, to require a carrier-for-hire operator to register with a carrier-for-hire company, to authorize the Department to issue rules regarding background check requirements for carrier-for-hire operators, to require the Director to report findings and recommendations to the Council regarding insurance requirements for carriers-for-hire, to outline trade dress requirements for private vehicles for hire and carriers-for-hire, to be approved by the Department, to permit carrier-for hire operators not using a motor vehicle to display trade dress by other means, and to establish a goal and authorize programs to shift carrier-for-hire delivery modes to more sustainable vehicles; to repeal the Commercial Bicycle Operators Licensing Act of 1987, and to make conforming amendments.

BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this act may be cited as the "Carrier-for-Hire Oversight and Enforcement Amendment Act of 2024".

Sec. 2. The District of Columbia Taxicab Commission Establishment Act of 1985, effective March 25, 1986 (D.C. Law 6-97; D.C. Official Code § 50-301.01 et seq.), is amended as follows:

(a) Section 4 (D.C. Official Code § 50-301.03) is amended as follows:

(1) New paragraphs (3A) through (3I) are added to read as follows:

"(3A) "Carrier-for-hire" means a class of transportation service by which a network of private operators, couriers, or carriers provide delivery within or originating from the District, by any means or mode of transportation, of parcels, food, or beverages to customers for compensation.

"(3B) "Carrier-for-hire company" means an organization, corporation, partnership, or sole proprietorship, operating in the District that uses delivery dispatch to connect customers to specific carrier-for-hire operators. The term:

"(A) Includes a third-party meal delivery platform, as that term is defined in section 2(6) of the Fair Meals Delivery Act of 2022, effective March 10, 2023 (D.C. Law 24-292; D.C. Official Code § 48-651(6));

"(B) Does not include an organization, corporation, partnership, or sole proprietorship who facilitates, offers, or arranges for the delivery of goods solely by vehicles that are required to be registered with the federal motor carrier safety administration or that require a commercial driver's license to operate pursuant 49 U.S.C. § 2701 et seq.; and

"(C) Does not include an individual or entity delivering cannabis with a valid courier license issued pursuant to section 6a of the Medical Cannabis Amendment Act of 2022, effective March 22, 2023 (D.C. Law 24-332; D.C. Official Code § 7-1671.05a).

"(3C) "Carrier-for-hire industry" means all companies, associations, owners, operators, or any person who, by virtue of employment, contract, or office, is directly involved in providing or facilitating the provision of carrier-for-hire services within the District.

"(3D) "Carrier-for-hire operator" means an individual who is registered with a carrier-for-hire company for the purpose of being connected to a customer through the company's delivery dispatch to deliver a parcel, food, or beverage in exchange for compensation. The term:

"(A) Includes a food delivery worker, as that term is defined in section 2(2A) of the Fair Meals Delivery Act of 2022, effective March 10, 2023 (D.C. Law 24-292; D.C. Official Code § 48-651(2A)); and

"(B) Does not include an individual delivering parcels, food, or beverages as an employee of, or under contract with, a specific business, if the business is primarily responsible for the production of the items or goods being delivered.

"(3E)(A) "Class 1" means any of the following delivery modes:

"(i) Pedestrians;

"(ii) Electric mobility devices;

"(iii) Bicycles;

"(iv) Electric bicycles;

"(v) E-cargo bikes; and

"(vi) Other non-motorized means of transportation.

"(B) For the purposes of this paragraph the term:

"(i) "E-cargo bike" shall have the same meaning as provided in section 9s(4) of the Department of Transportation Establishment Act of 2002, effective May 21, 2002 (D.C. Law 14-137; D.C. Official Code § 50-921.27(4)).

"(ii) "Electric bicycle" shall have the same meaning as provided in section 9s(5) of the Department of Transportation Establishment Act of 2002, effective May 21, 2002 (D.C. Law 14-137; D.C. Official Code § 50-921.27(5)).

"(iii) "Electric mobility device" shall have the same meaning as provided in section 2(6A) of the District of Columbia Traffic Act, 1925, approved March 3, 1925 (43 Stat. 1119; D.C. Official Code § 50-2201.02(6A)).

"(3F) "Class 2" means an electric-powered motor vehicle that:

"(A) Has a seat or saddle for the use of the operator and is designed to travel on no more than 3 wheels in contact with the ground;

"(B) Is a motor-driven cycle or a motorcycle, as those terms are defined in 18 DCMR § 9901.1; and

"(C) Is not a Class 1 delivery mode.

"(3G) "Class 3" means a motor vehicle powered by an internal-combustion engine that:

"(A) Has a seat or saddle for the use of the operator and is designed to travel on no more than 3 wheels in contact with the ground;

"(B) Is a motor-driven cycle or motorcycle, as those terms are defined in 18 DCMR § 9901.1; and

"(C) Is not a Class 1 or Class 2 delivery mode.

"(3H) "Class 4" means all motor vehicles not classified as Class 1, 2, or 3.

"(3I) "Customer" means an individual purchasing and requesting the delivery of a parcel, food, or beverage, who is connected to a specific carrier-for-hire operator by a carrier-for-hire company's delivery dispatch."

(2) Paragraph (9A) is redesignated as paragraph (9A-ii).

(3) Paragraphs (8A), (8A-i), and (8B) are redesignated as paragraphs (9A-iii), (9A-iv), and (9A-v), respectively.

(4) New paragraphs (9A) and (9A-i) are added to read as follows:

"(9A) "Delivery dispatch" means a website, mobile application, or other internet service or platform used by a carrier-for-hire company to connect a customer with a specific carrier-for-hire operator to fulfill a delivery.

"(9A-i) "Delivery mode" means the means of transportation used by a carrier-for-hire operator to provide delivery service."

(5) A new paragraph (14A) is added to read as follows:

"(14A) "Motor vehicle" shall have the same meaning as provided in section 2(11) of the District of Columbia Traffic Act, 1925, approved March 3, 1925 (43 Stat. 1119; D.C. Official Code § 50-2201.02(11)).".

(6) A new paragraph (29A) is added to read as follows:

"(29A) "Trade dress" means a unique marketing logo, insignia, or emblem for display on a vehicle that identifies, distinguishes, and is substantially inseparable from the source of a product or service, using a specific style to differentiate from competitors.".

(7) Paragraph (30B) is amended as follows:

(A) Strike the phrase "regulations governing public and private vehicle-for-hire service" and insert the phrase "regulations governing public and private vehicle-for-hire service and carrier-for-hire service" in its place.

(B) Strike the phrase "traffic stops of public and private vehicles-for-hire, pursuant to protocol prescribed" and insert the phrase "traffic stops of public and private vehicles-for-hire and carriers-for-hire, pursuant to protocol prescribed" in its place.

(b) Section 7(a) (D.C. Official Code § 50-301.06(a)) is amended as follows:

(1) Paragraph (1) is amended as follows:

(A) Subparagraph (G-i) is amended by striking the phrase "private vehicle-for-hire companies to the extent authorized by section 20j-7(b)." and inserting the phrase "private vehicle-for-hire companies and carrier-for-hire companies to the extent authorized by this act." in its place.

(B) Subparagraph (H) is amended by striking the phrase "; and" and inserting a semicolon in its place.

(C) Subparagraph (I) is amended to read as follows:

"(I) Serving as a liaison between the DFHV and the District Department of Transportation, the Department of Public Works, the Metropolitan Police Department, and other relevant agencies on policies related to transportation and traffic safety enforcement; and"

(D) A new subparagraph (J) is added to read as follows:

"(J) Serving as a liaison between the DFHV and other relevant District agencies on policies related to the carrier-for-hire industry.".

(2) Paragraph (2) is amended by striking the phrase "related to the regulation of the vehicle-for-hire industry" and inserting the phrase "related to the regulation of the vehicle-for-hire industry and carrier-for-hire industry" in its place.

(3) Paragraph (3) is amended by striking the phrase "communicating with and educating the public and the vehicle-for-hire industry" and inserting the phrase "communicating with and educating the public, the vehicle-for-hire industry, and the carrier-for-hire industry" in its place.

(4) Paragraph (4)(F) is amended as by striking the phrase "Performing vehicle-for-hire inspections" and inserting the phrase "Performing public and private vehicle-for-hire and carrier-for-hire inspections" in its place.

(5) Paragraph (5) is amended as follows:

(A) Strike the phrase "and dispatch services," and insert the phrase "dispatch services, and carrier-for-hire companies and operators," in its place.

(B) Strike the phrase "applicable to the vehicle-for-hire industry, for the" and insert the phrase "applicable to the vehicle-for-hire industry or carrier-for-hire industry, for the" in its place.

(c) Section 8 (D.C. Official Code § 50-301.07) is amended as follows:

(1) Subsection (a) is amended to read as follows:

"(a) The DFHV is charged with the continuance, further development, and improvement of the vehicle-for-hire industry and carrier-for-hire industry within the District, and for the overall regulation of limousines, sedans, taxicabs, taxicab companies, taxicab fleets, and taxicab associations.".

(2) Subsection (b-1) is amended to read as follows:

"(b-1) The DFHV shall employ vehicle inspection officers to enforce the laws, rules, and regulations pertaining to public and private vehicles-for-hire and carriers-for-hire. A primary function of vehicle inspection officers shall be to ensure the proper provision of service and to support safety through street enforcement efforts, including traffic stops of public and private vehicles-for-hire and carriers-for-hire, pursuant to protocol prescribed by the DFHV.".

(3) Subsection (c) is amended as follows:

(A) Paragraph (19) is amended by striking the phrase "; and" and inserting a semicolon in its place.

(B) A new paragraph (19A) is added to read as follows:

"(19A) Establish rules relating to the enforcement of traffic regulations against carrier-for-hire vehicles; and".

(d) Section 20j-4 (D.C. Official Code § 50-301.29d) is amended to read as follows:

"Sec. 20j-4. Trade dress requirements for private vehicles-for-hire.

"(a) A private vehicle-for-hire operator shall display a trade dress approved pursuant this section at all times while the operator is logged into the private vehicle-for-hire company's digital dispatch. The trade dress shall be affixed on the windows of the vehicle-for-hire adjacent to where passengers may sit in the rear of the motor vehicle and may take the form of a removable device. All trade dress required pursuant to this section shall be submitted by a private vehicle-for-hire company to the DFHV for approval. Approved trade dress shall be:

"(1) Sufficiently large and color contrasted so as to be readable during daylight hours at a distance of at least 50 feet; and

"(2) Reflective, illuminated, or otherwise patently visible in darkness.

"(b) In addition to the requirements of this section, the DFHV may require private vehicle-for-hire operators to display a standardized and clearly identifiable emblem or insignia indicating to consumers that a private vehicle-for-hire company is licensed to do business in the District. The DFHV may permit private vehicle-for-hire companies to issue such an approved insignia or certificate to operators on the Department's behalf.

"(c) A private vehicle-for-hire company shall provide an operator with trade dress compliant with the requirements of this section before the operator begins providing service for the company. Notwithstanding the provisions of this section, the Department may establish rules allowing for a private vehicle-for-hire operator to display a temporary trade dress for a limited period of time after a vehicle-for-hire operator registers with a private vehicle-for-hire company.".

(e) Section 20j-5(a)(2) (D.C. Official Code § 50-301.29e(a)(2)) is repealed.

(f) New sections 20j-8 through 20j-13 are added to read as follows:

"Sec. 20j-8. General requirements of carrier-for-hire companies.

"(a) A carrier-for-hire company shall:

"(1) Create an application process for an individual to register as a carrier-for-hire operator;

"(2) Maintain an up-to-date registry of each carrier-for-hire operator ("operator") and vehicle associated with the carrier-for-hire company;

"(3) Require an operator to verify the vehicle the operator is using to make deliveries while logged into the company's delivery dispatch;

"(4) Register as a carrier-for-hire company with the DFHV, and submit to the Department for the purposes of registration:

"(A) Proof that the carrier-for-hire company is licensed to do business in the District and, if applicable, registered pursuant to section 6 of the Fair Meals Delivery Act of 2022, effective March 10, 2023 (D.C. Law 24-292, D.C. Official Code § 48-655) and § 25-130;

"(B) Proof that the carrier-for-hire company maintains a registered agent in the District;

"(C) An illustration or photograph of trade dress established by the company, as required by section 20j-11; and

"(D) A written description of how the carrier-for-hire company's delivery dispatch operates;

"(5) Submit to the DFHV and the District Department of Transportation the following information in a format and frequency approved by the Director:

"(A) The total number of operators that utilized the company's delivery dispatch in the District;

"(B) A log of anonymized data relating to deliveries, which shall include the following categories of information for each delivery originating or terminating inside of the District:

"(i) The latitude and longitude of where each delivery originated and terminated, calculated to 3 decimal degrees;

"(ii) The date and time of request, pick-up, and drop-off;

"(iii) The delivery mode by class (Class 1, Class 2, Class 3, or Class 4) used by the carrier-for-hire operator; and

"(iv) The total miles driven, including both while en route to a pick-up point and while en route to a drop-off point, in the District by operators that utilized the carrier-for-hire company's delivery dispatch;

"(C) Any additional trip data that the DFHV or DDOT deems necessary for inclusion as set forth in rules adopted by the Mayor; provided, that such rules specify that such trip data shall be anonymized and may be used only for the purposes of public safety, congestion management, and transportation planning, including curbside management, road improvements, traffic management, transit service planning, and the allocation of public monies for those purposes; and

"(6)(A) Establish a policy of zero tolerance for the use of alcohol or illegal drugs or being impaired by the use of alcohol or drugs while a carrier-for-hire operator is logged into a carrier-for-hire company's delivery dispatch;

"(B) Immediately suspend, for the duration of the investigation conducted pursuant to subparagraph (C) of this paragraph, a carrier-for-hire operator upon receiving a written complaint from a customer submitted through regular mail or electronic means containing a reasonable allegation that the operator violated the policy of zero tolerance established by subparagraph (A) of this paragraph; and

"(C) Conduct an investigation when a customer alleges that a carrier-for-hire operator violated the policy of zero tolerance established by paragraph (A) of this subparagraph.

"(b) The Mayor may request additional relevant information from a carrier-for-hire company pertaining to any delivery referenced in a Metropolitan Police Department police report, provided that the report references one or more incidents alleged to have occurred during the time that a carrier-for-hire operator was performing a delivery in the District.

"(c) Any information that is received pursuant to subsection (a)(5) of this section shall be deemed confidential and shall:

"(1) Be exempt from disclosure pursuant to section 202 of the District of Columbia Administrative Procedure Act, effective March 25, 1977 (D.C. Law 1-96; D.C. Official Code § 2-532);

"(2) Be safely and securely stored by the District, and the District shall take all reasonable measures and efforts to protect, secure, and, when appropriate, encrypt or limit access to any data provided; and

"(3) Not include the personal information of customers or carrier-for-hire operators that utilized the delivery dispatch services of the carrier-for-hire company.

"(d) The Mayor, pursuant to Title I of the District of Columbia Administrative Procedure Act, approved October 21, 1968 (82 Stat. 1204; D.C. Official Code § 2-501 et seq.), may issue rules to govern the sharing or publishing of conclusions and analysis derived from information that is received pursuant to this section; provided, that the conclusions and analysis shared shall not contain the original information that is received from a carrier-for-hire company by the District pursuant to this section and any such shared or published data derived from the information that is received by the District pursuant to this section shall be anonymized and aggregated across all carrier-for-hire companies.

"Sec. 20j-9. Carrier-for-hire operators.

"(a) To become a carrier-for-hire operator, an individual shall submit an application to register with a carrier-for-hire company.

"(b) The Director is authorized, pursuant to Title I of the District of Columbia Administrative Procedure Act, approved October 21, 1968 (82 Stat. 1204; D.C. Official Code § 2-501 et seq.), to issue rules regarding background check requirements for carrier-for-hire operators and to require a carrier-for-hire company to reject an application submitted under subsection (a) of this section or to permanently disqualify from carrier-for-hire operator status an applicant who violates background check requirements established by the Director.

"Sec. 20j-10. Insurance requirements for carriers-for-hire.

"(a) Within 9 months after the applicability date of this section, the Director, in consultation with the Department of Insurance, Securities, and Banking, and carrier-for-hire companies, shall assess insurance requirements appropriate to carriers-for-hire, and shall report its findings and recommendations to the Council.

"Sec. 20j-11. Trade dress requirements for carriers-for-hire.

"(a)(1) A carrier-for-hire operator shall display a trade dress, which may take the form of a removable device, approved pursuant to subsection (b) of this section at all times while the operator is logged into the carrier-for-hire company's delivery dispatch.

"(2) A carrier-for-hire operator transporting goods by motor vehicle shall display trade dress in at least one location determined to be acceptable by the DFHV on the carrier-for-hire operator's motor vehicle.

"(3) Notwithstanding paragraph (1) of this subsection, a carrier-for-hire operator transporting goods by foot or using a bicycle, motor-driven cycle, or other class 1, 2, or 3 delivery mode may, subject to approval of the Department, display trade dress on equipment such as a delivery bag or carrier, helmet, or other apparel worn by the operator.

"(b) All trade dress required pursuant to this section shall be approved for display by the DFHV. Approved trade dress shall be:

"(1) Sufficiently large and color contrasted so as to be readable during daylight hours at a distance of at least 50 feet; and

"(2) Reflective, illuminated, or otherwise patently visible in darkness.

"(c)(1) The DFHV may require that carrier-for-hire operators display a standardized emblem or insignia identifying the operator as a carrier-for-hire, in lieu of trade dress specific to an individual carrier-for-hire company. Such emblem or insignia shall be otherwise subject to all of the requirements enumerated in subsections (a), (b), and (d) of this section.

"(2) The DFHV may permit carrier-for-hire companies to issue such an approved emblem or insignia to operators on the Department's behalf.

"(d) A carrier-for-hire company shall provide an operator with trade dress compliant with the requirements of this section before the operator begins providing service for the company. Notwithstanding the provisions of this section, the Department may establish rules allowing for a carrier-for-hire operator to display a temporary trade dress for a limited period of time after a carrier-for-hire operator registers with a carrier-for-hire company.

"(e) The Department, pursuant to Title I of the District of Columbia Administrative Procedure Act, approved October 21, 1968 (82 Stat. 1204; D.C. Official Code § 2-501 et seq.), shall issue rules to implement this section.

"Sec. 20j-12. Certification, enforcement, and regulation of carriers-for-hire.

"(a) Every 24 months, a carrier-for-hire company shall certify on a form provided by the DFHV that the carrier-for-hire company has complied with the requirements of this act.

"(b) The DFHV is authorized to inspect and copy the relevant safety and consumer protection-related records of a carrier-for-hire company to ensure compliance with this act when it has a reasonable basis to suspect non-compliance; provided, that any records disclosed to the DFHV under this subchapter shall not be subject to disclosure to a third party by the DFHV, including through a request submitted pursuant to Title II of the District of Columbia Administrative Procedure Act , effective March 25, 1976 (D.C. Law 1-96; D.C. Official Code § 2-531 et seq.).

"(c) If the Mayor determines that a carrier-for-hire company knowingly certified an intentionally false or misleading statement on a form required by this act, the Mayor may impose a civil fine as determined by rulemaking. A civil fine prescribed by this section shall be applicable only after the carrier-for-hire company is afforded an opportunity for a hearing. These penalties shall be in addition to any other penalties available by law.

"(d) Failure by a private carrier-for-hire company or operator to adhere to the requirements of this act may result in sanction by the DFHV, including fines and other penalties, pursuant to the DFHV's authority in section 8(c)(7) of this act.

"Sec. 20j-13. Carrier-for-hire delivery mode shift.

"(a) The Director is authorized to establish programs and issue rules to encourage, but not require, that carrier-for-hire operators utilize more sustainable and space-efficient carrier-for-hire delivery modes, with a preference for Class 1 and Class 2 modes, particularly in congested areas or areas with limited curbside availability.

"(b) The DFHV shall maintain a publicly accessible dashboard regarding delivery mode in the carrier-for-hire industry, including a breakdown of delivery mode by neighborhood or other geographic area.".

(g) Section 20k(a) (D.C. Official Code § 50-301.30(a)) is amended as follows:

(1) Strike the phrase "shall undergo training on the rules and regulations governing private and public vehicles-for-hire and undergo" and insert the phrase "shall undergo training on the rules and regulations governing private and public vehicles-for-hire and carrier-for-hire vehicles and undergo" in its place.

(2) Strike the phrase "inspection officers shall be prohibited from making traffic stops of on-duty private or public vehicles-for-hire in the act of transporting a fare, unless there is reasonable suspicion of a violation" and insert the phrase "inspection officers shall be prohibited from making traffic stops of on-duty private or public vehicles-for-hire in the act of transporting a fare and carrier-for-hire vehicles in the act of transporting a parcel, food, or beverage, unless there is reasonable suspicion of a violation" in its place.

(h) Section 20(o) (D.C. Official Code § 50-301.34) is amended as follows:

(1) The section heading is amended by striking the phrase "in a public or private vehicle-for-hire." and inserting a period in its place.

(2) Subsection (a) is amended as follows:

(A) Paragraph (1) is amended as follows:

(i) Strike the phrase "operator of a public or private vehicle-for-hire who" and insert the phrase "operator of a public or private vehicle-for-hire or a carrier-for-hire operator who" in its place.

(ii) Strike the phrase "the public or private vehicle-for-hire to" and insert the phrase "the public or private vehicle-for-hire or carrier-for-hire operator to" in its place.

(B) Paragraph (2) is amended by striking the phrase "operator of a public or private vehicle-for-hire who" and inserting the phrase "operator of a public or private vehicle-for-hire or a carrier-for-hire operator who" in its place.

(3) Subsection (b) is amended as follows:

(A) The lead-in language is amended by striking the phrase "operator of a public or private vehicle-for-hire can" and inserting the phrase "operator of a public or private vehicle-for-hire or the carrier-for-hire operator can" in its place.

(B) Paragraph (3) is amended by striking the phrase "public or private vehicle-for-hire operator while" and inserting eh phrase "public or private vehicle-for-hire operator or carrier-for-hire operator while" in its place.

(C) Paragraph (4) is amended by striking the phrase "public vehicle-for-hire operator stopped" and inserting the phrase "public or private vehicle-for-hire operator or carrier-for-hire operator stopped" in its place.

Sec. 3. Conforming Amendments.

(a) Section 2(3) of the Food Delivery Insurance Requirements Act of 1990, effective September 20, 1990 (D.C. Law 8-162, D.C. Official Code § 50-101(3)), is amended by striking the phrase "a service offered by a restaurant or retail business" and inserting the phrase "a service provided by an employee or contractor of a restaurant or retail business" in its place.

(b) The second section 9r of the Department of Transportation Establishment Act of 2002, effective November 28, 2023 (D.C. Law 25-66; D.C. Official Code § 50-921.27), is redesignated as section 9s.

(c) The Commercial Bicycle Operators Licensing Act of 1987, effective March 29, 1988 (D.C. Law 7-97, D.C. Official Code § 50-1631) is repealed.

Sec. 4. Applicability.

(a) This act shall apply upon the date of inclusion of its fiscal effect in an approved budget and financial plan.

(b) The Chief Financial Officer shall certify the date of the inclusion of the fiscal effect in an approved budget and financial plan and provide notice to the Budget Director of the Council for certification.

(c)(1) The Budget Director shall cause the notice of the certification to be published in the District of Columbia Register.

(2) The date of publication of the notice of the certification shall not affect the applicability of the provisions identified in subsection (a) of this section.

Sec. 5. Fiscal impact statement.

The Council adopts the fiscal impact statement of the Budget Director as the fiscal impact statement required by section 4a of the General Legislative Procedures Act of 1975, approved October 16, 2006 (120 Stat. 2038; D.C. Official Code § 1-301.47a).

Sec. 6. Effective date.

This act shall take effect after approval by the Mayor (or in the event of veto by the Mayor, action by the Council to override the veto) and a 30-day period of congressional review as provided in section 602(c)(1) of the District of Columbia Home Rule Act, approved December 24, 1973 (87 Stat. 813; D.C. Official Code § 1-206.02(c)(1).