(a) Any license must not be transferred except as provided in this Chapter.
(b) A license may be transferred only if:
(1) the license was first issued before January 1, 2015;
(2) the licensee notifies the Department in writing of the proposed transfer not less than 30 days before the date of the proposed transfer, specifying all terms and conditions of the proposed transfer and the identity of the proposed transferee;
(3) the Director finds that the proposed transferee meets all requirements of this Chapter and applicable regulations; and
(4) the licensee surrenders the license when the Director approves the transfer.
(c) The Director must not approve a transfer of any license if the transferee already holds, or would then hold, more than 40% of the total number of licenses then in effect. This subsection does not prohibit the sale or transfer of a license to a licensee that held more than 40% of the licenses in effect on October 1, 2004, or the sale or transfer of all or a majority of the licenses held by that licensee.
(d) A security interest may be created in a passenger vehicle license in accordance with the Maryland Uniform Commercial Code, subject to the Director’s approval. The Executive may by regulation attach further conditions to the creation of a security interest, consistent with this subsection, as necessary to avoid significant disruptions in taxi service. The Director may approve the creation of a security interest only if:
(1) the licensee and, if different, the proposed holder of the security interest has notified the Director at least 30 days before the security interest would be created of the identities of all parties to and all terms and conditions of the security interest; and
(2) the secured party acknowledges in the security interest agreement that:
(A) the security interest is subordinate, in all respects, to the authority of the Director to suspend, revoke, or refuse to renew the license under this Chapter; and
(B) any transfer of the license pursuant to a foreclosure or execution on the security interest is not effective unless the Director finds that the proposed transferee satisfies all requirements of this Chapter and applicable regulations.
The Director must send to the secured party, at its last address on file with the Department, a copy of any written notice to the licensee regarding the suspension, revocation, or refusal to renew the license. That notice is the only notice the Director is required to provide to a secured party of any action taken or proposed to be taken with respect to a license.
(e) A transferred license is valid for the remainder of the term of the original license.
(f) A fleet or individual that transfers a license must not be issued a new license for three years after the transfer of the license. (2004 L.M.C., ch. 27, § 1; 2008 L.M.C., ch. 35, § 1; 2015 L.M.C., ch. 39, § 1.)