(a) Commission Approval. All Medallion transfers, including partial transfers, must be approved by the Commission. All Applicants to own a Medallion or an interest in a Medallion must be approved by the Commission.
(b) Concurrent Purchase and Licensing of Medallion. An application to own and operate a Medallion Taxicab must be filed by any individual or Business Entity acquiring a Medallion, including an interest in a Medallion, either:
(1) As part of the public sale or auction process, if the Applicant is purchasing a Medallion from the Commission
(2) Jointly, with the current Owner (the "transferor") of the Medallion, if the Applicant is purchasing a Medallion from a private Owner,
(3) As a transfer of an interest in an Owner,
(4) By becoming a new Business Entity Person in an Owner, or
(5) By succeeding to the interest of any Owner or Business Entity Person of any Owner.
(c) Vehicle Ownership Requirements. An Applicant must demonstrate to the satisfaction of the Commission that the Applicant:
(1) Owns a vehicle that meets all of the requirements set forth in 35 RCNY Chapter 67 (Taxicab Hack-Up) of these Rules, as well as the requirements of all other governmental agencies having concurrent jurisdiction.
(2) Possesses the certificate of title and the certificate of registration, both of which must be in the name of the Applicant unless title is retained by a lessor or conditional vendor; and
(3) Has provided the Commission with all information required concerning the financing of the purchase price of the Medallion and/or Taxicab.
(d) Licensing – Special Requirements for Business Entities.
(1) Partnerships. If the Applicant is a partnership, it must file with its application a certified copy of the partnership certificate from the clerk of the county where the partnership's principal place of business is located.
(2) Corporations.
(i) If the Applicant is a corporation it must file the following with its Taxicab License application:
A. A certified copy of its certificate of incorporation
B. A list of officers and shareholders
C. A certified copy of the minutes of the meeting at which the current officers were elected
(ii) No corporate or trade name will be accepted by the Commission that is similar to a name already in use by another Owner.
(iii) All officers and shareholders of the corporate Taxicab License Applicant must disclose each and every Medallion in which he or she has any interest whatsoever, including but not limited to, any interest as individual Owner or as a Business Entity Person in a Business Entity that owns other Medallion(s); this disclosure must be made:
A. Upon original application for the Taxicab License,
B. Upon application for renewal of a Taxicab License, and
C. Upon application for transfer of a Taxicab License.
(iv) All corporate officers and shareholders are subject to the same standards and criteria as individual Owners.
(v) The Commission will only recognize corporate officers that have been approved by the Commission.
(vi) It is a violation of these Rules for a corporate Owner to appoint a new officer without the approval of the Commission.
(vii) Temporary approval contingent on final approval can be permitted in cases where an officer has resigned or died and another individual must be able to continue the regular daily operation of the Owner corporation.
(viii) The standards and criteria for Ownership are equally applicable when the shares of a corporate Owner are held by another Business Entity.
(3) Closed Corporations.
(i) A stockholder in a closed corporation that owns a Medallion will be personally accountable for complying with these Rules and any other laws that relate directly and uniquely to Medallion Ownership.
(ii) If a closed corporation wants to transfer stock or Medallion(s) to another closed corporation that is already an approved Medallion owner, the stockholders of the transferee corporation must sign an assumption and indemnification agreement in which they agree to assume all of the duties and responsibilities set forth in these Rules and to indemnify the Commission for all unpaid fines or fees regarding the Medallion(s) owned by the transferor corporation.
(4) Limited Liability Companies (LLCs).
(i) If the Applicant is a limited liability company it must file the following with its Taxicab License application:
A. A copy of its articles of organization
B. A copy of its operating agreement
C. A list of the members, with the percentages of the Applicant owned by each.
(ii) No LLC or trade name will be accepted by the Commission that is similar to a name already in use by another Owner.
(iii) All members of the LLC Taxicab License Applicant must disclose each and every Medallion in which he or she has any interest whatsoever, including, but not limited to, any interest as an individual Owner or any interest as a Business Entity Person in a Business Entity that owns other Medallion(s); this disclosure must be made:
A. Upon the original application for the Taxicab License,
B. Upon application for renewal of a Taxicab License, and
C. Upon application for transfer of a Taxicab License.
(iv) All members of the Owner are subject to the same standards and criteria as individual Owners.
(v) The Commission will only recognize members that have been approved by the Commission.
(vi) It is a violation of these Rules for an Owner that is an LLC to add a new member without the approval of the Commission.
(vii) The standards and criteria for Ownership are equally applicable when membership interests in a LLC Owner are held by another Business Entity.
(Amended City Record 3/4/2016, eff. 4/3/2016)