Taxi Associations

Taxicab associations must meet certain operating responsibilities. Taxicab associations must:

• Maintain affiliation with at least 15 taxis and notify the director of the Department of Finance and Administrative Services of any changes in the affiliation status of any vehicle.
• Maintain an address where it can accept mail, have a working telephone,  keep all required records and provide a secure place for lost-and-found items left in taxis by passengers.
• Provide radio or computer dispatch services during all hours that affiliated taxis are operating.
• Ensure that affiliated taxis are properly insured and maintain compliance with the association's color scheme.
• Forward correspondence from the director of the Department of Finance and Administrative Services to the association's drivers.
• File reports required by the Department of Finance and Administrative Services.
• Notify the director of the Department of Finance and Administrative Services when drivers are convicted of criminal offenses or traffic violations that occurred while operating a taxi.
• Notify the director of the Department of Finance and Administrative Services when drivers or licensees are convicted of serious criminal offenses that have a bearing on their ability or fitness to operate a taxi. Such offenses may include: theft, fraud, robbery, burglary, assault, sex crimes, alcohol, drugs or prostitution.
• Report traffic accidents involving affiliated taxis.
• Permit inspections without notice of association records or affiliated taxis.
• Pay penalties for any violations.
• Provide a supervisor at a taxicab zone whenever the director of the Department of Finance and Administrative Services determines it is necessary.
• Require a safety inspection of affiliated taxicabs before they provide services and annually thereafter.

Taxi associations may use smart taximeters in place of analog taximeters. To do so, a taxi association must apply to the director of the Department of Finance and Administrative Services for approval. This checklist contains questions to be answered by the taxi association and the smart taximeter vendor and an overview of the approval process. A taxi association changing smart taximeter vendors must also go through the approval process.

If a taxi association does not currently use smart taximeters but must provide transition information to the director to meet new licensing and operating requirements, then please complete this plan.

Taxicab associations must have a valid Seattle business license.
In addition, associations must file an application that includes the following information:

• The name, address, phone number and date of birth of the taxicab association representative.
• The taxicab number (assigned by the City or county) and the name of each taxicab vehicle owner that will be affiliated with the taxicab association.
• The special or contract rates that will be charged by taxis affiliated with the taxicab association.
• Any other information required by director's rules.

This information must be updated annually when the business license is renewed.

The annual fee for taxicab associations is $1,000. Associations that are late in renewing must pay a late fee of $100.

Transportation network companies must maintain insurance coverage, in compliance with RCW 46.72B.180 for all TNC-affiliated vehicles at any time they are active on a TNC’s online dispatch application.

During the period before a passenger requests a ride (period 1), the insurance coverage must include:

• Liability coverage in amounts no less than $50,000 per person for bodily injury, $100,000 per accident for bodily injury of all persons, and $30,000 for property damage.
• Underinsured motorist coverage to the extent required under RCW 48.22.030.
• Personal injury protection coverage to the extent required under RCW 48.22.085 and RCW 48.22.095.

During the period from when the passenger requests a ride until the passenger exits the TNC-affiliated vehicle (period 2), the insurance coverage must include:

• Combined single limit liability coverage in the amount of $1 million for death, personal injury, and property damage.
• Personal injury protection coverage to the extent required under RCW 48.22.085 and RCW 48.22.095.

During the period when the passenger enters the TNC-affiliated vehicle until the passenger exits the vehicle (period 3), the insurance coverage must include:

• Underinsured motorist coverage in the amount of $100,000 per person, $300,000 per accident.

 Alternatively, the insurance coverage requirements can be met by securing 24-hour coverage in the following amounts:

• $100,000 for any recovery for death or personal injury.
• $300,000 for all persons killed or receiving personal injury.
• $25,000 for property damage.
• $100,000 per person and $300,000 per accident in underinsured motorist coverage.
• Additionally, the insurance policy must:
  • Name the City of Seattle as an additional insured.
  • Be issued by an admitted carrier with an A.M. Best Rating of not less than B (VII) unless an exemption has been met for the use of a surplus line insurer.
  • Provide that the insurer will send a 30-day non-renewal or cancellation notice.
  • Not include aggregate limits or named driver exclusions.

A transportation network company must file evidence of insurance with the director of the Department of Finance and Administrative Services as part of its annual licensing.

Drivers must keep proof of commercial insurance in their vehicles while operating them. If you are a TNC driver, you must also maintain your own auto insurance policy to provide coverage when your vehicle is not being used to transport passengers.

Transportation network companies must provide a written insurance disclosure of the following statements to prospective TNC drivers in prospective drivers’ terms of service:

“WHILE OPERATING ON THE DIGITAL NETWORK OR SOFTWARE APPLICATION OF THE COMMERCIAL TRANSPORTATION SERVICES PROVIDER, YOUR PRIVATE PASSENGER AUTOMOBILE INSURANCE POLICY MIGHT NOT AFFORD LIABILITY, UNDERINSURED MOTORIST, PERSONAL INJURY PROTECTION, COMPREHENSIVE, OR COLLISION COVERAGE, DEPENDING ON THE TERMS OF THE POLICY.

IF THE VEHICLE THAT YOU PLAN TO USE TO PROVIDE COMMERCIAL TRANSPORTATION SERVICES FOR OUR COMPANY HAS A LIEN AGAINST IT, YOU MUST NOTIFY THE LIENHOLDER THAT YOU WILL BE USING THE VEHICLE FOR COMMERCIAL TRANSPORTATION SERVICES THAT MAY VIOLATE THE TERMS OF YOUR CONTRACT WITH THE LIENHOLDER.”

Online dispatch applications, which are sometimes called mobile apps or online apps, allow people to request dispatch of drivers for trips or to accept payments for trips via the Internet using mobile devices such as smartphones and tablets.

Online dispatch applications must make the rate structure transparent, including any variable fees or possible surcharges, before the customer confirms the ride.

Transportation network companies must use an online dispatch application; taxicab associations and for-hire companies may use them with approval from the director of the Department of Finance and Administrative Services.

Taxicab meter rates are established by rule by the director of the Department of Finance and Administrative Services. Meter rates are as follows:

• Drop charge: $2.60 for passengers for the first one-ninth of a mile.
• Per mile: 30 cents for each one-ninth of mile or fraction thereof after the first one-ninth of a mile.
• Waiting time, charged when the taxicab speed is less than 11 miles per hour, or when the customer asks the driver to wait: 50 cents for every one minute of waiting time, charged at 30 cents per 36 seconds.
• Additional per passenger charge for more than two persons, excluding children under twelve years of age: 50 cents.

Taxis must pay a surcharge of 10 cents per ride for the Wheelchair Accessible Services Fund.

The director of the Department of Finance and Administrative Services may approve the addition of a temporary fuel surcharge rate to the meter rate any time the price of fuel, as published by the American Automobile Association, exceeds a fuel surcharge trigger price established by a director's rule. The surcharge will cover increased fuel costs.

If a taxicab association is using an online dispatch application, the rates must be transparent to the customer as determined by the director of the Department of Finance and Administrative Services.

Taxicabs must charge a flat rate for trips to the Seattle-Tacoma International Airport from the downtown Seattle hotel district unless the vehicle is using an application dispatch system. The rate must be filed with the director of the Department of Finance and Administrative Services and displayed conspicuously in the taxicab.

Coupons or discounts are not allowed unless the taxicab is using an application dispatch system.

Taxicab associations, for-hire vehicle companies and transportation network companies must compile accurate and complete operational records and keep these records for two years. The records must include:

• The total number of rides provided by each taxi, for-hire vehicle license holder or transportation network company.
• The type of dispatch for each ride (hail, phone, online app, etc.).
• The percentage or number of rides picked up in each ZIP code.
• The pick up and drop off ZIP codes of each ride.
• The percentage by ZIP code of rides that are requested by telephone or applications but do not happen.
• The number of collisions, including the name and number of the affiliated driver, collision fault, injuries and estimated damage.
• The number of rides when an accessible vehicle was requested.
• Reports of crimes against drivers.
• Records of passenger complaints.
• Any other data identified by the director of the Department of Finance and Administrative Services to ensure compliance.

Records may be maintained electronically.

Data must be reported quarterly to the director of the Department of Finance and Administrative Services. Reports are to be made electronically on forms provided by the director.

Drivers must complete driver’s education and be tested before obtaining a for-hire driver’s permit. The training must include completion of the National Safety Council's Defensive Driving Course and at least one additional driving training program approved by the director of the Department of Finance and Administrative Services.

Transportation network companies may provide their own driver training programs, which must include the following topics:

• Defensive driving,
• Use of emergency equipment,
• Procedures for driver safety,
• Risk factors for crimes against drivers,
• Passenger relations and
• Standards of professional conduct.

Required testing may be administered by the City of Seattle, jointly by the City and King County, or by a licensed TNC or a third-party vendor. Examinations must test the driver's:

• Knowledge of requirements and laws for operating TNC affiliated vehicles;
• Ability to speak and read English well enough to fulfill the duties of a driver;
• Knowledge of vehicle safety requirements;
• Knowledge of the geography of Seattle, King County and the surrounding region;
• Knowledge of local public and tourist destinations and attractions and
• Knowledge of risk factors for crimes against drivers, of emergency procedures and of personal safety equipment.

Exam procedures and content must be approved by the director of the Department of Finance and Administrative Services.

All drivers affiliated with a transportation network company must consent to an annual criminal background check. TNCs must review the background checks and maintain records of them.

The background checks may be conducted by fingerprinting the driver, with prints forwarded to the FBI or Washington State Patrol for investigation. They may also be conducted by a third-party vendor approved by the director of the Department of Finance and Administrative Services.

Companies also must report criminal offenses by drivers that affect the driver’s fitness to operate a TNC affiliated vehicle. These criminal offenses include but are not limited to:

• Fraud
• Theft
• Robbery
• Burglary
• Assault
• Sex crimes
• Alcohol or drug offenses
• Prostitution

All TNC affiliated vehicles must undergo an annual vehicle safety inspection before they can be used to serve passengers. This inspection covers all major components of the vehicle, as well as vehicle features that aid the driver and keep the passenger comfortable. Inspections certify that the vehicle is mechanically sound and fit for driving and will note that all plates, decals and notices required and supplied by the City are legible and properly displayed.

The inspection must be performed by a mechanic approved by the director of the Department of Finance and Administrative Services. See the list of City-approved vehicle safety inspection mechanics.

The TNC has responsibility to require that each affiliated vehicle passes an inspection and to maintain inspection records for all affiliated vehicles

City inspectors enforce the regulations affecting drivers and vehicles affiliated with TNCs. Inspectors ride announced in TNC affiliated vehicles to ensure operating standards are met. Please contact us if you have questions about driver or vehicle operating standards.

You have 10 days to request a hearing if you receive a violation, suspension or revocation. Instructions for requesting a hearing will be on the reverse side of the notice of violation or license action form, or you may contact us.

If you receive a notice of infraction, you must respond within 15 days. Instructions for responding will be on the reverse side of the notice of infraction. Payments or requests for hearings are processed by Seattle Municipal Court.

You must pay any fines within 30 days of the issue date. Failure to pay could result in the loss of your license. This table list Seattle fines for TNC affiliated drivers and vehicles:

A TNC is subject to monetary penalties for violations incurred by its affiliated drivers and vehicles and for revocation of its annual license for violations outlined in SMC 6.310.610.C.