Limousine Laws

Towncar photo
Karen Ducey / P-I 12/10/07
Ali Baharu, a private town car driver, offers a ride in his shiny sedan to a customer for "the same price as a taxi" outside Colman Dock. State law prohibits town cars from soliciting on-demand customers, like taxis, but many drivers disregard the law. Baharu said his original client didn't show up, so he had time for another customer, and he said that he didn't know the law. "This is nothing new," he said. The customer did not order the town car ahead of time.
Town cars -- Let the rider beware
Behind that sleek façade, there could be trouble

By SCOTT GUTIERREZ
P-I REPORTER

Step off a ferry at Colman Dock and you'll see them. A fleet of shiny Lincoln Town Cars parked under the Alaskan Way Viaduct, with drivers offering a ride for "the same price as a taxi."

The stylish sedan might sound like the better deal. But be warned that the chauffeur isn't always who you'd expect behind the wheel of a fancy private car.

In one case, a registered sex offender was caught illegally picking up customers in a licensed town car near Colman Dock. At Sea-Tac Airport, a woman was held against her will by a chauffeur pretending to work for the company hired to drive her, apparently to steal business from a competitor, according to state records.

Many more are unlicensed or uninsured, putting customers at greater risk if there is a collision, according to city officials and records kept by the state and Port of Seattle.

Illegal town cars have been a problem in Seattle and elsewhere for years, but the behavior seems more audacious than in the past, city officials and legitimate businesses say. The problem is prompting some to question whether changes are needed in the law governing limousines and executive sedans.

The sleek sedans are increasingly visible on city streets, especially around downtown hotels, the bus station and Sea-Tac Airport. Known as executive sedans, the cars are smaller than limousines and cater to corporate clients, hotel guests and teenagers attending proms.

Of the 490 executive sedans licensed in Washington, most are in King County.

A growing number of independent drivers jump into the industry to operate as illegal taxicabs. They know that state law regulating limos and executive sedans is much less stringent than city and county ordinances on taxis, making it easier for unqualified or unchecked drivers to break the rules.

Plus, the state Department of Licensing, which regulates the business across the state, doesn't have the resources to crack down on town cars in King County. The port regulates town cars that pick up fares at the airport and cruise ship terminals. The city and county, which regulate taxis, have no jurisdiction over town cars.

"They're carrying a lot of Seattle residents and visitors to Seattle, and the drivers have absolutely no credentials," said Craig Leisy, manager of the city's consumer affairs unit, which enforces the city's taxi laws.

The Seattle P-I reviewed complaints filed with the Licensing Department during the last two years, in addition to citations issued by the Port of Seattle for violations committed by town car drivers during the last year. Among the findings:

# A registered sex offender was spotted by city taxi inspectors trying to pick up customers at Colman Dock. An inspector recognized the man -- because he had been denied a King County taxi license a year before, according to city officials.

# About 30 percent of the 91 town cars cited for violations by the Port of Seattle between January 2006 and September 2007 were not properly licensed to operate at Sea-Tac Airport and about 10 percent were not licensed with the state.

# A town car chauffeur was caught trying to pick up customers in a rental car he had obtained for the day -- a practice that city officials and larger limo companies say is becoming increasingly common among unqualified drivers. Further investigation by the port revealed the driver had a suspended license for reckless driving and was uninsured.

# For more than a year, a South Seattle company, Checker Limousine, rented out a fleet of limos and towns car with expired licenses while the state worked to shut it down. The owner, Alexander Milman, was fined $20,000 by the state that he never paid. Last month, Milman, 47, was sentenced to five years in federal prison for running a pharmacy that bilked Medicaid of about $1.85 million. The lawyer who represented his town car company in state hearings, Oleg Ordinartsev, was convicted in connection with the Medicaid fraud, imprisoned and disbarred.

# A city study six years ago estimated that at least 20 percent of for-hire town cars in Seattle are uninsured.

For taxis, it's about the loss of business. Last year, complaints poured into the state about town cars stealing stand-and-hail fares outside hotels, sometimes triggering physical fights between taxi drivers and town car drivers. State law does not allow executive cars to take stand-and-hail fares.

But town car drivers feel that they are being singled out so established companies can get more business.

Ali Baharu, a town car driver who was interviewed as he solicited a passenger from Colman Dock last month, said his initial customer didn't show up, so he decided to offer his service to a random customer. His vehicle was licensed.

He said he was unaware that soliciting passengers was illegal, and that it's nothing different from what's been done for years.

"This is nothing new," he said.

Taxi drivers have long accused hotel doormen of taking cuts from town car drivers looking to score trips that would normally go to taxis. But it's also become a top issue with the Puget Sound Limousine Association, an industry group seeing chunks of business fall to rogue competitors.

"In my opinion, I think it's getting worse. I think they're getting a little bit more aggressive," said Tom Stottler, president of Evergreen Town Car Service and head of the Limo Association.

The executive sedan law largely relies on companies to self-regulate. License-holders certify that their drivers meet qualifications and pass criminal history checks. The state, unlike the city's taxi enforcement office, doesn't routinely audit license holders unless there is a complaint.

"We believe there is a large number (of town car drivers) who tried to get taxi licenses who aren't qualified because they can't pass the basic tests on English language, geography, or there are some who have criminal histories," said Diana Toledo, the county's taxi enforcement coordinator.

In one of the more outrageous cases, Sue England landed at Sea-Tac in April of 2005 anticipating a private Lincoln Town Car to pick her up. Her son-in-law, who couldn't make it to the airport, booked the shiny sedan, complete with a chauffeur, to take England directly home.

Unaware of tactics used by rogue drivers, she stepped into a sedan with a chauffeur poaching customers from his competitors. By the time she realized it, she was on her way into downtown Seattle, miles from her daughter's home, in an anxious journey with a driver who refused to take her back to the airport.

"I didn't feel threatened, but I was frightened because somebody wasn't doing what I was asking, especially when I knew there had been a mistake," said England, 60, who was visiting from the San Francisco area.

England had called her limousine company's dispatch and walked out onto the sidewalk in front of baggage claim. Within minutes, two black town cars pulled up. A driver in slacks sprang from one and asked "Are you Sue?" She followed him into his car.

But as they merged onto the highway, her cell phone rang. It was the limo company, Crown Limousine. The dispatcher wondered where she was. Her real driver was waiting for her at the airport.

She asked her driver to return to the airport, but he refused.

England's ride stopped outside a downtown hotel, where the driver demanded $40 to release her luggage. She was saved because Crown Limousine, the company hired by her son-in-law, kept her on the cell phone and sent the driver to find her.

The driver, who ran his own one-vehicle company, was fined $750. He lost his town car license after not paying the fine, according to state records.

IS IT A LEGAL TOWN CAR?

# The state's "limo" law restricts town cars to trips that are prearranged. Any drivers soliciting business from the street are violating the law.

# Licensed town cars have a small sticker on the rear bumper.

# Don't hesitate to ask a driver to show proof that he works for the company you hired.

# To file a complaint, call the state Department of Licensing at 360-664-1400. For more information or to check operator credentials, visit the state Department of Licensing's Web site at

HB 2251 addresses Limousine Rules

3/3/96
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HOUSE BILL REPORT
HB 2551
As Reported By House Committee On:
Transportation
Title: An act relating to the regulation of limousines and for hire vehicles carrying
passengers.
Brief Description: Regulating limousines.
Sponsors: Representatives Cairnes, Patterson, Ogden, Romero, Tokuda, Mitchell, Quall
and K. Schmidt.
Brief History:
Committee Activity:
Transportation: 1/18/96 [DP].
HOUSE COMMITTEE ON TRANSPORTATION
Majority Report: Do pass. Signed by 25 members: Representatives K. Schmidt,
Chairman; Benton, Vice Chairman; Mitchell, Vice Chairman; R. Fisher, Ranking
Minority Member; Hatfield, Assistant Ranking Minority Member; Backlund; Blanton;
Brown; Buck; Cairnes; Chandler; Chopp; Elliot; Hankins; Johnson; McMahan;
Ogden; Patterson; Quall; Robertson; Romero; D. Schmidt; Scott; Sterk and Tokuda.
Staff: Mary McLaughlin (786-7309).
Background: In 1989 the Utilities and Transportation Commission (UTC) was given
exclusive regulatory authority over limousines. The commission is charged with
safety, equipment, and insurance requirements. Entry into the field is unlimited if the
applicant can prove financial responsibility; no rate or route regulation may be
imposed. Because of the broad statutory definition of limousines and the lack of
enforcement by the UTC due to severe cutbacks in the agency, there is concern over
the public safety of the passengers, the qualifications of the drivers, the conditions of
the vehicles, and the types of vehicles being used as limousines.
Cities, counties, and port districts may regulate taxicab companies operating within
their jurisdictions, and may control entry, rate, route, licensing, and safety. Both
King County and the city of Seattle have chosen to regulate taxicabs and have
imposed a moratorium on the number of taxicabs that may operate within their
jurisdictions in order to stabilize the market. The city and county have developed
HB 2551
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House Bill Report
Page 2
stringent guidelines to enforce licensing, rates, routes, driver qualifications, safety and
vehicle inspection provisions. Because limousines may be operated in King County in
a more relaxed regulatory environment than taxicabs, there has been a dramatic rise
in the number of limousines in the city, county, and at SeaTac International Airport.
At the end of 1989 there were 94 limousine permits issued for use at SeaTac Airport;
by 1995 the number had risen to 410 permits. At SeaTac this increase in limousine
traffic has resulted in frequent solicitation of passengers within the terminal and
inconsistency in the type of vehicles used. There is evidence that some vehicles lack
the proper insurance and operating authority required by the UTC.
Summary of Bill: The regulation of limousines is transferred from the Utilities and
Transportation Commission (UTC) to the Department of Licensing (DOL). The
department regulates entry, equipment, chauffeur qualifications, and operations. In
addition, the Port of Seattle may regulate limousines with regard to entry, chauffeur
qualifications, operations, and equipment at SeaTac International Airport. No rate
regulation may be imposed, but the carrier must file its rates and schedules with the
port. King County may adopt ordinances to assist the port in enforcement at SeaTac
Airport; this does not grant King County the authority to regulate limousines within
its jurisdiction.
A new definition of limousine service is created, which divides the vehicles into four
categories. A limousine is a for-hire, chauffeur-driven, unmetered, unmarked luxury
motor vehicle that meets one of the following definitions:
(1)
"stretch limousine" is an automobile whose wheelbase has been altered, has
a seating capacity of no more than 12 passengers, and is equipped with
amenities;
(2)
"executive sedan" is a four-door sedan with a minimum wheelbase of
114.5 inches, a seating capacity of no more than three passengers behind
the driver, and standard factory amenities;
(3)
"executive van" is a van, minivan, or minibus with a seating capacity of
seven to 14 passengers behind the driver; or
(4)
"classic" is a fine and distinctive automobile that is 30 years old or older.
A limousine carrier must have an office; a vehicle cannot solely be used as an office.
Arrangements for service are prearranged through the carrier’s office and dispatched
to the limo. Customers cannot make arrangements with the driver for immediate
rental of a limousine, even if the driver is the owner. The single exception is stand-
hail limousines at SeaTac Airport that are licensed by the port.
The Washington State Patrol (WSP) annually inspects each limousine licensed by
DOL, except if the Port of Seattle chooses to regulate limousines within its
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House Bill Report
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jurisdiction; in that case, it is the port or King County (rather than the WSP) that is
responsible for the annual inspection.
A limousine carrier must certify that each chauffeur (1) is 21 years of age, (2) holds a
valid Washington driver’s license, (3) has successfully completed a training course
and written exam approved by DOL, (4) has passed a background check performed by
the WSP, and (5) submits a medical certificate upon initial application and every three
years thereafter validating the driver’s fitness.
DOL may refuse, suspend, or revoke a license of a limousine carrier if it has good
reason to believe that the carrier hired a chauffeur that (1) has been convicted of an
offense that makes the driver unfit to qualify as a chauffeur, (2) has been found guilty
of two or more offenses resulting in revocation of the driver’s license, (3) has been
convicted of vehicular homicide or assault, or (4) is intemperate or addicted to
narcotics.
Limousine carriers must list their unified business identifier when advertising and
specify the type of service offered (stretch limo, executive sedan or van, or classic
auto). A limousine carrier cannot advertise as a taxicab company.
A vehicle operated as a limousine before April 1, 1996, is grandfathered into the new
regulatory process if the owner is the same as the registered owner on April 1, 1996,
and the vehicle and carrier otherwise comply with the new limousine statutes.
Unlawful operation of a limousine without a certificate is a misdemeanor on first
offense and a gross misdemeanor thereafter. Violation of the insurance provisions
and false advertising are gross misdemeanors.
Cities, counties, and port districts may regulate for-hire vehicles within their
respective jurisdictions with regard to entry, rates, routes, safety, and licensing.
(This is in addition to DOL’s current licensing and insurance regulations.)
Appropriation: None.
Fiscal Note: Not requested.
Effective Date: Ninety days after adjournment of session in which bill is passed.
Testimony For: The new regulations governing limousines will level the playing
field between the taxicab and limousine industries, and will promote the safety of the
drivers, vehicles, and passengers.
Testimony Against: None.
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Testified: Representative Jack Cairnes, prime sponsor; Mike Zawaideh, Limousine
Association of Washington; Robert Long, Limousine Association of Washington; Mel
McDonald, city of Seattle; Richard Irvin, Limousine Association of Washington;
Peter Bailey, Evergreen Towncar Service; Jayelyn Thresher, Limousine Association
of Washington; Carmen Bullard, representing towncar operators; Doug Bohlke,
Evergreen State Taxi Association; Ed Stemkoski, Farwest Taxi; Jack Blunk, North
End Taxi; Tom Tanaka, Port of Seattle; Vazgen Abramyan, United Towncars; Jim
Fricke, Pacific Northwest Transportation Services; and John Ruhl, Seattle-Tacoma
International Taxi Association.
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