Article 2. Taxicab Licenses.
Division 1. General License Provisions.
Montgomery County, Md., Code § 53-201 (2026)
Sec. 53-201. Required.LinkCopy Citation
(a)
A person must not provide taxicab service without possessing a license as required under this Chapter.
(b)
Except as provided in subsection (c)(3), a license must be issued only to the owner of each taxicab.
(c)
A person must not operate a taxicab or provide taxicab service unless the person either:
(1)
holds a fleet license; or
(2)
holds one or more individual licenses and is affiliated with an association or a fleet; or
(3)
holds a sublicense granted by a holder of a fleet license under Section 53-204A and is affiliated with that fleet.
(d)
A licensee must hold a license for each taxicab.
(e)
A licensee must own a taxicab associated with each license.
Montgomery County, Md., Code § 53-202 (2026)
Sec. 53-202. Display.LinkCopy Citation
Each licensee and driver are both responsible for displaying the license prominently in the taxicab at all times in a location that is plainly visible to passengers.
Montgomery County, Md., Code § 53-203 (2026)
Sec. 53-203. Types of licenses; cross-ownership.LinkCopy Citation
(a)
A fleet or association, including any officer, director, owner, employee, affiliate, subsidiary, or holding company, must not have any direct or indirect ownership interest in or management control over any other fleet or association that operates in the County.
(b)
An individual must not hold a license originally issued to a fleet or association under this Chapter, and a fleet or association must not hold a license originally issued to an individual under this Chapter, unless the license was lawfully transferred under Section 53-204.
(c)
Nothing is this Section prohibits a fleet or association from providing non-taxicab for- hire driving services as defined under State law and not regulated by the County.
Montgomery County, Md., Code § Sec.53-204. Transferability; security interest. (2026)
Sec.53-204. Transferability; security interest.LinkCopy Citation
(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.
Montgomery County, Md., Code § 53-204A (2026)
Sec. 53-204A. Sublicenses.LinkCopy Citation
(a)
The holder of a fleet license may grant a sublicense to another person under this Section.
(b)
A sublicense may be granted only if:
(1)
the holder of a fleet license notifies the Department in writing of the proposed grant not less than 30 days before the date of the proposed grant, specifying all terms and conditions of the proposed grant and the identity of the proposed grantee;
(2)
the Director finds that the proposed grantee meets all requirements for a licensee under this Chapter and applicable regulations; and
(3)
the Director approves the grant of the sublicense.
(c)
The Director must not approve a grant of a sublicense if the grantee already holds, or would then hold, more than 40% of the total number of licenses then in effect.
(d)
The holder of a sublicense is subject to all of the requirements of this Chapter that apply to a licensee.
Division 2. Issuance, Denial, Expiration, and Renewal.
Montgomery County, Md., Code § 53-205 (2026)
Sec. 53-205. Periodic issuance of new licenses.LinkCopy Citation
(a)
Notice. The Director may periodically issue new licenses to qualified applicants or reissue any license that has been revoked or not renewed under this Chapter, as provided in this Section. The Director must advertise the availability of these licenses in at least one newspaper of general circulation in the County for two consecutive weeks before accepting applications. The Director should also notify, by electronic mail or other reasonable means, any licensee or driver who requests to be notified of the availability of new or reissued licenses.
(b)
Criteria. The Director may issue new or reissued licenses to qualified applicants, including existing licensees and persons who do not then hold licenses, who meet criteria defined by regulation which promote competition and further the purposes of this Chapter. The criteria must:
(1)
be based on public convenience and necessity, such as the need for more taxicab services in the County generally or in certain geographic areas of the County, or for certain types of passengers, as shown by such measurements as taxi utilization rates and response times; and
(2)
consider the performance record of each applicant in providing taxicab service in the County or elsewhere.
(c)
Individual allocation. Of the new or reissued licenses issued in any 2-year period, at least 50% must be allocated to individuals who:
(1)
have held a Taxicab Driver Identification Card, and have regularly driven a taxicab in the County, during the preceding 3 years;
(2)
have a superior driving record, as defined by regulation; and
(3)
do not already hold a license under this Chapter.
In deciding among individuals who qualify under this subsection, the Director must rank them by the number of years that each individual has regularly driven a taxicab in the County. If a sufficient number of qualified individuals do not apply for a license under this subsection, the Director may allocate the remaining licenses to individuals who already hold a license under this Chapter.
(d)
Biennial limit. During calendar year 2016 the Director must not issue more than 70 new licenses. In each later even-numbered year, the Director may issue a total number of new licenses that does not exceed 10% of the number of licenses then in effect.
(e)
Additional licenses - extraordinary authority; population limit. The Director may issue more licenses than are authorized under subsection (d) if the Director finds, after holding a public hearing, that additional taxicabs are necessary to improve service to specified geographic areas or types of taxicab users or generally to increase competition. However, the total number of licenses issued must not exceed one license for each 1,000 County residents, as computed in the most recent decennial U.S. Census or any census update published by the appropriate federal agency.
(f)
Individual limit. Notwithstanding any other provision of this Section, the Director must not issue a new or reissued license to any licensee that holds more than 40% of the licenses then in effect.
(a)
25 to individuals who do not hold a license under this Chapter, and of these, eight must be for accessible vehicles;
(b)
25 to fleets that hold fewer than 100 licenses, and of these, eight must be for accessible vehicles; and
(c)
50 accessible vehicle licenses to a driver-owned cooperative fleet that the Director determines is a qualified applicant under Chapter 53.
(a)
A license approved for issuance under Section 2, but for which a taxicab vehicle was not placed in service, must be issued if the applicant:
(1)
notifies the Department of its intention to place a taxicab vehicle in service under this Section;
(2)
is a qualified applicant under Chapter 53; and
(3)
places a taxicab in service not later than January 31, 2019.
(b)
If any of the 50 accessible licenses allocated to a driver-owned cooperative under Section 2 are not issued to the cooperative by January 31, 2019, either because the Director determines that the cooperative is not a qualified applicant under Chapter 53, or because the cooperative otherwise declines to obtain them, the licenses may be issued to individuals who do not currently hold licenses under this Chapter.
(a)
Until September 1, 2007, notwithstanding the provisions of Section 53-306(c)(2)(D) and Section 53- 306(c)(3) to the contrary, the Director may issue a temporary identification card to an applicant for a taxicab driver identification card, before the Department receives the results of the state criminal background check required by Section 53-306, if:
(1)
the applicant submitted all information necessary to process the state criminal background check required by Section 53-306 at least 10 days previously and the Department has not received the results of that background check;
(2)
the applicant submits an initial criminal history background check, conducted within the previous 10 days by a third-party vendor approved by the Director;
(3)
this third-party background check covers each jurisdiction in the United States where the applicant resided during the previous 5 years; and
(4)
this third-party background check does not disclose any information that would disqualify the applicant from receiving an identification card under Section 53-309 (now Section 53-308).
(b)
For any new passenger vehicle license issued in 2006 under County Code Section 53-205(d), as amended by Section 1 of this Act, the licensee must place the vehicle in taxi service not later than March 31, 2007.
Montgomery County, Md., Code § 53-206 (2026)
Sec. 53-206. License issuance; initial fee.LinkCopy Citation
(a)
The Director may issue a license only to a qualified applicant under this Chapter. An applicant is qualified if the applicant:
(1)
meets all requirements of this Chapter and applicable regulations; and
(2)
pays the initial license fee.
(b)
The Council must set the initial license fee by resolution adopted under Section 53-107. In setting the amount of the fee, the Council must consider:
(1)
the County’s interest in encouraging competition and improving customer service;
(2)
the value of the license in the private market; and
(3)
the cost to the Department of processing applications and issuing the license.
Montgomery County, Md., Code § 53-207 (2026)
Sec. 53-207. License application.LinkCopy Citation
A person may obtain a license by applying to the Director on a form provided by the Department that, at a minimum, requires the applicant to provide:
(a)
a statement of financial responsibility, showing the availability of unencumbered financial resources sufficient to place the vehicle into service;
(b)
a certificate of insurance, a certificate of self-insurance issued by the state motor vehicle agency, or a written statement from an insurance company licensed to do business in Maryland certifying that:
(1)
the applicant will be able to acquire the required insurance; and
(2)
the insurance will not be canceled or modified without prior written notice from the insurer to the Department;
(c)
the applicant’s past customer service record, if the applicant has engaged in taxicab service in any jurisdiction;
(d)
a statement that the applicant is familiar with the Chapter and applicable regulations, and is not disqualified from holding a license under this Chapter;
(e)
the applicant’s experience in providing taxicab or other transportation service;
(f)
a description of the applicant’s financial and managerial resources available to operate and maintain the taxicab as required by law; and
(g)
the geographic areas the applicant primarily intends to serve, including the extent of the applicant’s willingness to serve areas or types of passengers that need additional service.
Montgomery County, Md., Code § 53-208 (2026)
Sec. 53-208. Individual licenses.LinkCopy Citation
The Director must issue a license to each individual applicant who qualifies under this Chapter, subject to the limits and requirements in Section 205 and the procedures in Section 210.
Montgomery County, Md., Code § 53-209 (2026)
Sec. 53-209. Individual license application.LinkCopy Citation
In addition to the information required in Section 53-207, each applicant for a license to be issued under Section 53-205(c) or otherwise to an individual must:
(a)
specify which fleet or association the applicant will affiliate with before putting the taxicab into service;
(b)
hold a valid identification card;
(c)
describe the applicant’s experience driving a taxicab or other commercial passenger vehicle, and the applicant’s experience as a taxicab driver in the County;
(d)
present evidence of the applicant’s intent to drive the taxicab for 3 years, or if the applicant does not intend to personally drive the taxicab, provide the name of a driver with a valid identification card who is committed and ready to drive the taxicab on a full- time basis;
(e)
specify the number and type of consumer complaints regarding taxicab service naming the applicant during the past 12 months;
(f)
have a safe driving record, as defined by applicable regulations;
(g)
list the applicant’s name, date of birth, current address, and any address where the applicant resided during the previous 5 years;
(h)
list the applicant’s employment during the preceding 10 years; and
(i)
show that the applicant, or if the applicant does not intend to personally drive the taxicab, the driver designated under subsection (d), has provided taxicab service in the County satisfactorily for at least 12 months.
(j)
attest that the applicant has not transferred any license during the previous 36 months.
Montgomery County, Md., Code § 53-210 (2026)
Sec. 53-210. Individual license lottery.LinkCopy Citation
(a)
If the number of applications filed by qualified individual applicants as defined under Sections 205 and 209 equals or is less than the number of new licenses authorized for individual use in a 2-year period, the Director must issue a license to each qualified applicant. If the number of applicants from qualified individuals exceeds the number of new individual licenses authorized for that period, the Director must conduct a lottery among each group of qualified individuals with an equal number of years’ experience regularly driving a taxicab in the County to determine the priority of issuance.
(b)
Licenses issued by lottery must be awarded under the procedures of this Section and Section 205.
(c)
The Director may conduct a separate lottery for:
(1)
licenses for accessible taxicabs;
(2)
other new licenses that become available; and
(3)
any other authorized license that become available.
(d)
A lottery must be conducted so that each qualified applicant has an equal probability of receiving a license, subject to the seniority ranking required by Section 205(c).
(e)
A lottery may be conducted in 2 separate phases. Phase 1 would determine the recipients of available individual licenses and continue until all available licenses have been awarded. Phase 2 would create an eligibility list for issuance of individual licenses that later become available. The drawing in Phase 2 must continue until twice the number of available licenses have been drawn, or a smaller number if sufficient applicants did not apply for an individual license. The eligibility list created under Phase 2 is valid for the remainder of the 2 year period, or until the next lottery is conducted if longer than 2 years.
(f)
As licenses become available for reissuance, the Department must notify the applicant highest on the eligibility list that a license is available and of the applicable acceptance procedures and deadlines. The Department must send notice by mail to the address listed by the applicant on the application or to any updated address provided by the applicant in writing to the Department. If the taxicab is not placed in service within 90 days after the license is issued, the Director must revoke the applicant’s eligibility and notify the next applicant on the eligibility list. The Director may extend the time to place a taxicab in service to permit the taxicab to be retrofitted for use as an accessible taxicab.
(a)
25 to individuals who do not hold a license under this Chapter, and of these, eight must be for accessible vehicles;
(b)
25 to fleets that hold fewer than 100 licenses, and of these, eight must be for accessible vehicles; and
(c)
50 accessible vehicle licenses to a driver-owned cooperative fleet that the Director determines is a qualified applicant under Chapter 53.
(a)
A license approved for issuance under Section 2, but for which a taxicab vehicle was not placed in service, must be issued if the applicant:
(1)
notifies the Department of its intention to place a taxicab vehicle in service under this Section;
(2)
is a qualified applicant under Chapter 53; and
(3)
places a taxicab in service not later than January 31, 2019.
(b)
If any of the 50 accessible licenses allocated to a driver-owned cooperative under Section 2 are not issued to the cooperative by January 31, 2019, either because the Director determines that the cooperative is not a qualified applicant under Chapter 53, or because the cooperative otherwise declines to obtain them, the licenses may be issued to individuals who do not currently hold licenses under this Chapter.
Montgomery County, Md., Code § 53-211 (2026)
Sec. 53-211. Fleet license application.LinkCopy Citation
In addition to the information required in Section 53-207, each applicant for a license issued to a fleet must:
(a)
submit evidence that the fleet provides or will be able to provide its own centralized administrative, managerial, marketing, operational, dispatch, and driver training services;
(b)
calculate previous taxicab productivity, as measured by the number of daily trips per taxicab or an equivalent measurement approved by the Director, if the applicant has previously provided taxicab service in any jurisdiction;
(c)
describe the extent of the applicant’s development of and participation in innovative taxicab services;
(d)
submit the number of consumer complaints involving taxicab service provided by the applicant, by type, filed with the County or any other government agency in the past 24 months, and the resolution of each complaint;
(e)
list each enforcement action involving taxicab service provided by the applicant or any of its drivers during the past 24 months of which the applicant is aware, listing the number, violations alleged, and disposition of each action;
(f)
submit other performance related criteria, as required by regulation;
(g)
describe all ownership and management interests relating to taxicabs of the applicant and any affiliated, parent, or subsidiary business entity;
(h)
specify the levels and types of service to be provided;
(i)
provide evidence of the level of capitalization and expected operating costs;
(j)
describe the applicant’s existing or proposed hiring and training procedures for drivers; and
(k)
attest that the applicant has not transferred any license during the previous 36 months.
Montgomery County, Md., Code § 53-212 (2026)
Sec. 53-212. Criteria to deny a license.LinkCopy Citation
The Director must not issue or renew a license to any person, licensee, or applicant:
(a)
who, within five years before the application is submitted, was convicted of, pled guilty or no contest to, or was placed on probation without a finding of guilt for, or who when the application is submitted, has a charge pending for, or who has, within three years before the application was submitted, completed a sentence or period of probation based on a charge for:
(1)
any offense involving violence or a weapon;
(2)
any sex offense;
(3)
soliciting for prostitution;
(4)
illegal sale or use of alcoholic beverages;
(5)
any felony involving controlled dangerous substances;
(6)
any offense involving driving under the influence of alcohol; or
(7)
any act of moral turpitude;
(b)
who has a pattern of reasonably verifiable complaints of substandard customer service during the previous 24 months;
(c)
whose traffic record of “moving” offenses for the 3 years immediately before the application was submitted, or while licensed to drive a taxicab, demonstrates that the applicant is not a responsible, safe, or careful driver. This record may include eyewitness testimony of unsafe or dangerous driving;
(d)
who makes a false statement or gives a false answer to obtain, or who obtains, a license by fraud, misrepresentation, misleading statements, evasion, or suppression of material fact;
(e)
who is unable to safely operate a taxicab, who may otherwise endanger the public health, safety, or welfare, or who would be unable to fulfill the duties of a driver as required by applicable regulation;
(f)
who has substantial delinquent debts to the County, State, or Federal government; or
(g)
whose record of violations of this Chapter or other laws or regulations of the County, State, or any other jurisdiction indicates to the Director that to protect public safety a license should not be issued.
If a license is denied or revoked, the applicant is not eligible to reapply for 2 years, unless the Director for good cause otherwise orders.
Montgomery County, Md., Code § 53-213 (2026)
Sec. 53-213. Additional criteria to deny a license.LinkCopy Citation
(a)
A licensee or applicant, as those terms are used in this Section, includes any director, officer, partner, or managing agent, and any other person who effectively controls the operations of a licensee.
(b)
The Director may decline to issue or renew a license to any licensee or applicant:
(1)
who has been convicted of fraud, misrepresentation, or false statement in the course of activity in a taxicab business;
(2)
who, while previously operating in any jurisdiction, has had a license or other permission to operate taxicab services revoked or suspended because of material violation of law or substandard performance;
(3)
who has failed to keep the licensed taxicab in continuous operation as required by Section 53-226; or
(4)
who has not complied after reasonable notice with any required safety, operational, or inspection requirement of this Chapter.
Montgomery County, Md., Code § 53-214 (2026)
Sec. 53-214. Expiration of license.LinkCopy Citation
A license expires one year after it is issued.
Montgomery County, Md., Code § 53-215 (2026)
Sec. 53-215. Renewal of license.LinkCopy Citation
The Director must renew a license if the licensee:
(a)
is in compliance with all applicable laws and regulations, including all required safety, operational, and inspection requirements of this Chapter;
(b)
submits a statement under oath affirming that the information and statements submitted with the original application have not materially changed, except as previously or then submitted; and
(c)
pays the required fee.
Division 3. Duties of Licensees.
Montgomery County, Md., Code § 53-216 (2026)
Sec. 53-216. Notice of change of address.LinkCopy Citation
Each licensee must notify the Department, in writing, not more than 2 business days after changing:
(a)
a business or residential address;
(b)
a required telephone number; or
(c)
any officer, principal, partner, or managing agent, or any other person who effectively controls the operations of a licensee.
Montgomery County, Md., Code § 53-217 (2026)
Sec. 53-217. Quarterly reports.LinkCopy Citation
(a)
Each licensee, or fleet or association on behalf of an affiliated individual licensee, must submit a quarterly report that:
(1)
details all accidents involving any of its taxicabs to the Department on a form approved by the Director; and
(2)
shows the mileage driven by the vehicle associated with each license.
(b)
The Director may require a more frequent report.
Montgomery County, Md., Code § 53-218 (2026)
Sec. 53-218. Responsibility of licensees, affiliates, and drivers.LinkCopy Citation
(a)
A licensee must not knowingly permit any taxicab to be operated in this County by a person who has:
(1)
not been authorized to operate a taxicab under this Chapter; or
(2)
tested positive for drugs or alcohol, as defined by applicable regulations, unless authorized by the Director.
(b)
Each licensee must promptly take appropriate action when the licensee becomes aware from any source that a driver of a taxicab for which the licensee holds the license or regarding which the licensee is a party to an affiliation agreement has not complied with all requirements of this Chapter.
(c)
Each licensee must exercise due diligence to monitor the activities of each driver of a taxicab for which the licensee holds the license or regarding which the licensee is a party to an affiliation agreement to assure that the driver complies with all requirements of this Chapter.
(d)
Notwithstanding the legal status of any driver as an independent contractor rather than an employee of the licensee, for the purposes of this Chapter, the responsibility of each licensee for the conduct and performance of drivers under this Chapter:
(1)
applies to each driver, including affiliates of the licensee; and
(2)
prevails over any inconsistent contract or other agreement between a licensee and an affiliate or a driver.
(e)
Any contract or other operating agreement between a licensee and any affiliate or driver must use the applicable uniform agreement adopted by regulation under Section 53-111 and must:
(1)
inform the driver of:
(A)
the driver’s obligation to comply with all requirements of this Chapter; and
(B)
the licensee’s obligation to take appropriate action when the licensee becomes aware that a driver has not complied with any requirement of this Chapter;
(2)
empower the licensee to take appropriate action, as required in subsection (b);
(3)
not restrict a driver, affiliate, or taxicab owner from providing taxicab service in the County after the contract or agreement expires or is terminated;
(4)
not exceed a term of one year;
(5)
not require a driver or affiliate to use the fleet or association system for processing credit card transactions; and
(6)
not be subject to automatic renewal.
(f)
A licensee must not impose on a driver or affiliate:
(1)
charges totaling more than 5% of any credit card transaction; or
(2)
any other charge of a type or amount other than those on the list adopted by regulation under Section 53-111.
(a)
the maximum credit card processing charge under Section 53-218(f)(1);
(b)
the dispute resolution requirements under Section 53-219;
(c)
the deletion of the driver examination requirement under former Section 53-308 (deleted as of October 1, 2015); and
(d)
the minimum liability insurance requirements under Section 53-224.
Montgomery County, Md., Code § 53-219 (2026)
Sec. 53-219. Dispute Resolution.LinkCopy Citation
(a)
Definitions. In this Section:
(1)
Dispute means a disagreement between a person who holds a taxicab driver identification card issued under this Chapter and the fleet or association under whose colors the person drives over whether an action taken by the fleet or association to terminate, suspend or impair the person’s ability to drive under the fleet or association’s colors, or to terminate, suspend or impair the person’s right to enjoy the resources and benefits provided by the fleet or association, on the same basis as other similarly situated fleet or association drivers, was reasonable and based upon good cause.
(2)
Good cause means one or more of the causes for revocation of an identification card under Section 53-604, or a material failure of a driver to comply with established, written rules or practices of the company or to perform in accordance with his or her written contract with the company, after reasonable notice and an opportunity to comply or perform.
(b)
Each fleet or association may have a written dispute resolution procedure as part of its agreements with its affiliates or drivers, so long as such dispute resolution procedure incorporates, at a minimum, binding arbitration pursuant to the American Arbitration Association Commercial Arbitration Rules, R-1 through R-58.
(c)
If a fleet or association has an agreement with an affiliate or driver that does not include a dispute resolution procedure meeting the requirements of subsection (b), then disputes will be subject to resolution under this subsection.
(1)
disputes must first be the subject of an internal grievance procedure conducted as follows:
(A)
the aggrieved party must submit a complaint in writing to the fleet or association within 30 days from the date of the fleet or association’s action, containing a written statement of the matter in dispute and the names, addresses and telephone numbers of each party to the dispute.
(B)
within two weeks after the submission of the written complaint, the fleet or association must appoint a representative from within the fleet or association to hear the dispute. The representative must have had no direct or indirect involvement in the dispute.
(C)
within two weeks after appointment, the representative must conduct an informal hearing concerning the dispute.
(D)
both parties must use best efforts to resolve the dispute.
(E)
within two weeks after the hearing has been concluded, the fleet or association representative must provide a written decision.
(2)
If the dispute is not resolved through the internal grievance procedure, both parties may agree to informal or formal mediation of the dispute, pursuant to paragraph (3). If the parties fail to agree to mediation, either party may elect to proceed to arbitration, pursuant to paragraph (4).
(3)
Informal or formal mediation.
(A)
within two weeks after the internal grievance procedure has been concluded, any party requesting mediation must submit a written notice requesting mediation to all parties.
(B)
within two weeks after such notice has been submitted, the parties may agree to an impartial person to mediate the dispute in an informal process. If the parties do not agree to informal mediation, the party requesting mediation must submit a written Request for Mediation to the American Arbitration Association (AAA). If the parties are unable to agree to mediation, either party may elect to proceed to arbitration, pursuant to paragraph (4).
(C)
a request for mediation must contain a brief statement of the dispute, and the names and addresses and telephone numbers of each party to the dispute.
(D)
the mediator must notify all parties of the time, date and place of the mediation.
(E)
the costs of the mediation must be borne equally by the parties unless they agree otherwise in writing.
(F)
the mediation conducted by AAA must be in substantial accord with the American Arbitration Association Commercial Mediation Rules, M-1 through M-17.
(G)
the mediator may end the mediation if, in the sole discretion of the mediator, the continuation of the mediation would not be useful.
(H)
the parties in mediation must use their best efforts to resolve the issues in controversy and the mediator may execute a written settlement agreement if agreed on by the parties but may not impose a settlement on the parties.
(4)
Where neither the internal grievance procedure nor mediation, if attempted, has resolved the dispute, either party may submit the matter to arbitration, which is binding upon the parties. Such arbitration must be conducted as follows:
(A)
within two weeks after the mediation process or the internal grievance procedure has been concluded, the party requesting arbitration must submit a written notice of intent to arbitrate to all parties.
(B)
within two weeks after such notice has been submitted, an impartial person to arbitrate the dispute must be agreed upon by the parties, or, if the parties do not agree, the party requesting arbitration must submit a written request for arbitration to the (AAA) and simultaneously mail a copy of the request for arbitration to every party to the dispute.
(C)
a request for arbitration must contain a brief statement of the dispute, and the names and addresses and telephone numbers of each party to the dispute.
(D)
the arbitrator must notify all parties and their representatives, if any, of the time, date and place of the arbitration.
(E)
the costs of the arbitration must be borne by the party which does not prevail, unless the parties agree otherwise in writing, or the costs are otherwise apportioned by the arbitrator if there is no prevailing party.
(F)
the arbitration, whether conducted by AAA or another arbitrator chosen by the parties, must be in substantial accord with the American Arbitration Association Commercial Arbitration Rules, R-1 through R-56.
(G)
the arbitrator may conclude the arbitration hearing if in the sole discretion of the arbitrator, continuation of the hearing would not be useful.
(H)
within two weeks after the arbitration hearing has been concluded, the arbitrator must render an award in writing, which must be binding upon the parties and which may be enforced by any court having jurisdiction over the parties.
(a)
the maximum credit card processing charge under Section 53-218(f)(1);
(b)
the dispute resolution requirements under Section 53-219;
(c)
the deletion of the driver examination requirement under former Section 53-308 (deleted as of October 1, 2015); and
(d)
the minimum liability insurance requirements under Section 53-224.
Division 4. Additional Duties of Fleets and Associations.
Montgomery County, Md., Code § 53-220 (2026)
Sec. 53-220. Essential requirements.LinkCopy Citation
Each fleet and association must:
(a)
establish a management office in the County, or at another location approved by the Director;
(b)
provide a communication system approved by the Director that:
(1)
gives the driver and fleet or association two-way dispatch communication; and
(2)
allows public access to request service, register complaints, and seek information. The communications system must allow a member of the public to speak to a staff member 24 hours a day, 7 days a week.
(c)
operate under colors and markings approved by the Director;
(d)
submit accurate, verifiable operating and statistical data reports as required under this Chapter;
(e)
provide an adequate number of taxicabs to meet service demand 24 hours a day, 7 days a week, as defined by applicable regulations; and
(f)
comply with all requirements of this Chapter regarding the provision of accessible taxicabs.
Montgomery County, Md., Code § 53-221 (2026)
Sec. 53-221. Operating requirements.LinkCopy Citation
Each fleet and association must:
(a)
provide centralized administrative, vehicle maintenance, customer service, complaint resolution, dispatch, management, marketing, operational, and driver training services located in the County, or at one or more locations approved by the Director. A fleet or association may obtain these services, with the approval of the Director:
(1)
from another person or entity who does not hold, or have an interest in, a license issued under this Chapter; or
(2)
from another fleet or association if the Director finds that joint operations of this type:
(A)
would promote competition and improve customer service; and
(B)
would not impair the independence of any fleet or association;
(b)
designate one to 4 persons with managing or supervisory authority to act on behalf of the fleet or association in all contact with the Department; and
(c)
file with the Department, in addition to any other data required by law:
(1)
if the fleet or association is incorporated, a copy of its certificate of incorporation, bylaws, and all other rules and regulations relating to the organization and operation of the entity and its membership;
(2)
if a corporation holds a license, each year by February 1 a certificate of good standing issued by the State Department of Assessments and Taxation; and
(3)
information on a form provided by the Department, showing, for each taxicab, the licensee’s name and address, vehicle make, vehicle identification number and taxicab number, and other pertinent information listed on the form. Any change in the information required by this paragraph must be filed in writing with the Department within 2 business days after the change.
(d)
ensure that each taxicab affiliated with or operating under a license issued to the fleet or association places a written notice, clearly visible to passengers in the vehicle and on a form approved by the Department, that includes a statement:
(1)
that the customer may choose to pay the fare using any available payment system; and
(2)
identifies the available credit card processing systems approved by the Department.
Montgomery County, Md., Code § 53-222 (2026)
Sec. 53-222. User-side subsidy programs - participation.LinkCopy Citation
(a)
Any fleet or association must participate in the County’s user-side subsidy programs, as required by applicable regulations.
(b)
Each taxicab affiliated with, or operating under a license issued to, a fleet or association that is required to participate in a County’s user-side subsidy program must be equipped to accept payment through the program.
Division 5. Taxicab Vehicles.
Montgomery County, Md., Code § 53-223 (2026)
Sec. 53-223. Mechanical inspection certificate.LinkCopy Citation
Before a license is issued under this Chapter, the applicant must furnish a certificate from a state- certified inspection station in good standing that a comprehensive inspection, performed to state standards by a licensed state inspector, shows that the vehicle is mechanically safe. A license must not be issued if the vehicle has been driven more than 150 miles since the inspection was performed.
Montgomery County, Md., Code § 53-224.Insurance (2026)
Sec. 53-224.Insurance required.LinkCopy Citation
(a)
Before the Director issues any passenger vehicle license under this Chapter, the applicant must submit written proof of insurance or self-insurance for the vehicle that covers bodily injury or death to any passenger or other person, and property damage, in the following amounts:
(1)
$50,000 for bodily injury or death per person;
(2)
$100,000 for bodily injury or death per accident; and
(3)
$ 25,000 for property damage.
(b)
The insurance must be provided by an insurer licensed to do business in the State or, alternatively, under a self insurance program approved and administered by the state motor vehicle agency.
(c)
If the insurance coverage lapses at any time during the license term, the taxicab license is automatically suspended. The licensee must immediately notify the Department, stop operating the taxicab, and surrender the license to the Department. The Director must promptly reinstate the license if all required insurance coverage is documented to the Director’s satisfaction.
(d)
Each taxicab must contain sufficient copies of a summary of insurance information, in a form approved by the Director, that may be given to passengers, members of the public, and law enforcement officers. The summary must include:
(1)
the name and address of the vehicle owner;
(2)
the vehicle’s license tag number;
(3)
the name, address, office hours, and telephone number of the insurance claims office responsible for adjusting any insurance claim arising from use of the vehicle; and
(4)
the name, address, and telephone number of the Department and any other government agency where complaints regarding insurance claims handling may be filed.
(a)
the maximum credit card processing charge under Section 53-218(f)(1);
(b)
the dispute resolution requirements under Section 53-219;
(c)
the deletion of the driver examination requirement under former Section 53-308 (deleted as of October 1, 2015); and
(d)
the minimum liability insurance requirements under Section 53-224.
Montgomery County, Md., Code § 53-225 (2026)
Sec. 53-225. State registration required.LinkCopy Citation
The Director must not issue or renew a license unless the licensee has registered the taxicab as a “class B” for-hire vehicle with the Motor Vehicle Administration for the year in which the license is applied for, and the registration remains valid. The licensee must notify the Department in writing not more than 2 business days after the licensee receives notice that the vehicle registration is revoked or suspended.
Montgomery County, Md., Code § 53-226 (2026)
Sec. 53-226. Continuous operation.LinkCopy Citation
(a)
Each licensee must keep each licensed taxicab in continuous operation as defined by applicable regulation.
(b)
The Executive must by method (2) regulation define continuous operation using a formula that:
(1)
uses calendar-quarterly reports submitted by each fleet and association showing mileage driven by each vehicle associated with a license held by, or affiliated with, each fleet and association; and
(2)
requires average per-vehicle mileage to be at least 60% of the County-wide average for each quarter, unless the Director, by written request, waives the requirement.
(c)
Each licensee must notify the Department in writing at any time that:
(1)
a taxicab will be or has been out of service for more than 30 days; or
(2)
an average of more than 15% of the taxicab whose licenses are held by that licensee have been inactive during the previous calendar month.
(d)
Each notice must:
(1)
explain the reasons for each period of inactivity; and
(2)
show why the Director should not revoke the license of each inactive taxicab for lack of use.
Montgomery County, Md., Code § 53-227 (2026)
Sec. 53-227. Procedure when vehicle placed in or removed from service.LinkCopy Citation
(a)
Each licensee must notify the Department in writing at least 3 business days before placing a taxicab in service.
(b)
Each licensee must place a taxicab in service within 90 days after a license is approved for issuance. Issuance of the license take effect when the vehicle is placed in service; if the vehicle is not actually placed in service, the license has not been issued. The Director may extend the time to place a taxicab in service for no more than 90 additional days:
(1)
to allow a vehicle to be retrofitted for use as an accessible taxicab; or
(2)
in the case of a fleet, to allow the fleet to buy the taxicab and prepare it to be placed in service;
The Director must not otherwise waive or extend this requirement.
(c)
Each licensee must notify the Department at least 3 business days before removing a taxicab permanently from service, whether the owner junks the vehicle, sells it, or transfers its title.
(d)
Each licensee must notify the Department if a vehicle’s license plates have been stolen or its registration or license has been suspended or revoked. Any vehicle without a valid registration or with expired, revoked or suspended license plates must not be used to provide taxicab service.
(e)
When a taxicab is permanently out of service, the licensee must return the license to the Department and must remove the meter, cruising lights, and any other marking or sign that identifies the vehicle as a taxicab.
(f)
Each licensee must receive the Department’s approval before taking a taxicab out of service for a period longer than 30 days. The licensee must explain why the taxicab is out of service and list its license number, assigned vehicle number, and registration numbers. If the Department finds that the licensee has good cause, as defined by applicable regulations, to take the taxicab out of service, the Department may approve that action. If the Department rejects the application, the licensee must promptly reinstate the taxicab in service or return the license.
(g)
Any vehicle placed in service as a taxicab must not be more than five model years old.
Montgomery County, Md., Code § 53-228 (2026)
Sec. 53-228. Age of vehicles.LinkCopy Citation
(a)
Except for vehicles that are hybrid, electric, or wheelchair accessible, a licensee must not use any vehicle that is older than ten model years to provide taxicab service in the County.
(b)
A licensee must not use any hybrid, electric, or wheelchair accessible vehicle that is older than twelve model years to provide taxicab service in the County.
(c)
As used in this Chapter, the “model year” of a vehicle is the year designated by the vehicle manufacturer, as indicated on the vehicle or in the manufacturer’s records. A licensee may continue to maintain a taxicab vehicle in service until the December 31st of the succeeding calendar year after a taxicab vehicle ages out of service due to the end of its model year, if the vehicle passes a comprehensive safety inspection performed during the month of August of the vehicle’s final model year by a state-certified inspector in good standing.
(d)
The Director may waive this requirement only to maintain an accessible taxicab in service for no more than 90 days when the licensee shows that no adequate replacement vehicle was available for purchase during the preceding 90 days.
Sec. 3. Expedited Effective Date. The Council declares that this legislation is necessary for the immediate protection of the public interest. This Act takes effect on the date when it becomes law.
Montgomery County, Md., Code § 53-229 (2026)
Sec. 53-229. Maintenance and repair.LinkCopy Citation
(a)
Each licensee must maintain each taxicab in a clean and safe operating condition, and properly maintain its lights, brakes, window glass, doors, tires, fenders, paint, upholstery, and all devices and parts affecting the vehicle’s safety, operation, or appearance.
(b)
Each licensee must comply with any order of the Director to immediately remove from service any taxicab which is not in safe operating condition, and to remove from service within 5 days any taxicab that is not clean, sanitary, and of good appearance, until all necessary repairs and replacement of defective equipment, painting, or cleaning has been completed.
(c)
Any taxicab removed from service under this Section must not be reinstated in service until it has been inspected and approved under procedures established by applicable regulation.
Montgomery County, Md., Code § 53-230 (2026)
Sec. 53-230. Vehicle numbering, lettering, and markings; rate chart.LinkCopy Citation
(a)
When a license for a taxicab is issued under this Chapter, the Department must assign a license number to the taxicab. The licensee (or the fleet, if the vehicle is affiliated with a fleet) must assign a vehicle number to each taxicab. The vehicle number must be permanently applied and plainly visible.
(b)
When the Director so orders, the license number must be affixed to the taxicab by decal or metal tag provided by the Department in a manner approved by the Director.
(c)
Numbers must be assigned only in the manner designated by the Director. A person must not remove, reassign, or change a number from one vehicle to another without written authorization by the Department.
(d)
The licensee must place lettering on the passenger side of the taxicab, in a form and manner approved by the Director, identifying the licensee.
(e)
A taxicab operating in the County must have the license number, and the name and telephone number of the fleet or association that owns or operates it and to whom complaints can be made, prominently displayed in the rear seat area of the taxicab with lettering and numbering at least 1.5 inches high. If the operator is not the owner, as defined in Section 53-101, the name, telephone number, and business address of the owner must similarly be prominently displayed.
(f)
A licensee must post a rate chart issued by the Department in the taxicab in a location conspicuously visible to any passenger.
Montgomery County, Md., Code § 53-231 (2026)
Sec. 53-231. Doors; lettering; color; special equipment.LinkCopy Citation
(a)
Each taxicab operated in the County must have at least 3 doors. All doors must operate safely.
(b)
A licensee or driver must not operate a taxicab unless the taxicab bears markings in letters plainly distinguishable on each of the 2 sides of the taxicab, showing the approved name of the fleet or association by whom the taxicab is owned or operated.
(c)
Each fleet or association must register its colors with the Department. A fleet or association may register one or more color combinations, and any fleet or association may register black as one of its colors. A fleet or association must not use colors that are similar to those of another fleet or association so that the public can readily identify taxicabs operated by that fleet or association. The Director may approve advertising in different colors or markings as long as the public can still readily identify taxicabs operated by that licensee, or the use of a set of different colors and markings to identify a specialized service provided by or geographic area served by a fleet or association. Any color or color combination approved by the Department, other than black, must be reserved for the exclusive use of that fleet or association when the fleet or association is operating taxicabs in the County.
(d)
Each licensee must insure that each fleet or association uses only the approved name of the fleet or association in advertising or listing its service to the public.
Montgomery County, Md., Code § 53-232 (2026)
Sec. 53-232. Cruising lights.LinkCopy Citation
Each taxicab must have cruising lights that operate electrically as a sign or insignia mounted on the forward portion of the roof of the taxicab. Cruising lights must not be used until approved by the Department. Cruising lights may be removable, but must be mounted when the vehicle is in use as a taxicab, and must be designed so that the vehicle can be easily identified as a taxicab.
Montgomery County, Md., Code § 53-233 (2026)
Sec. 53-233. Seat belts.LinkCopy Citation
Each taxicab must have one set of seat belts for the driver and each passenger. The seat belts must be easily accessible and in good working order.
Montgomery County, Md., Code § 53-234 (2026)
Sec. 53-234. Taxicab meters.LinkCopy Citation
(a)
Each taxicab must be equipped with:
(1)
an accurate, properly installed and connected taximeter which has a security seal affixed by the Department; or
(2)
a reliable, independently verifiable software-based metering system, approved by the Department.
(b)
In addition to regular inspections, the Department may conduct periodic tests of these meters or metering systems. Upon successful completion of the tests, a taximeter must be affixed with a security seal, and a software-based metering system must be marked in a manner acceptable to the Department. These tests should be scheduled in a manner that minimizes interruption of taxicab service to the public.
(c)
Except as otherwise specified, the requirements for approval and methods of testing and operation of taximeters must conform to specifications, tolerances, and standards for taximeters set out in national standards or established by applicable regulation.
(d)
A person must not alter the meter or change the mechanical condition of wheels, tires, or gears of any taxicab with the intent to cause incorrect registration by the meter of the fare charged to any passenger.
Montgomery County, Md., Code § 53-235 (2026)
Sec. 53-235. Inspections.LinkCopy Citation
(a)
Each licensee must allow the Director to make reasonable inspections of any vehicle licensed to operate under this Chapter, and must allow the Director to examine any business record, including any maintenance record, in-service inquiry or dispatching record required to analyze data and enforce this Chapter, and all trip records required under this Chapter. Maintenance record includes any record needed to establish whether safety repairs have been made, or that reflects the mileage and odometer readings of any vehicle.
(b)
On the request of any inspector or law enforcement officer, any licensee or driver must produce any required license or identification card or a valid driver’s license.
(c)
Each driver must respond to an oral request within 60 minutes when any trip record required under Section 53-314 is requested during a field investigation by an inspector or law enforcement officer. Each fleet or association must make available a direct telephone line to the Department and the County Police Department on which the fleet or association must transmit any record it possesses of any trip taken or dispatched on the same or the previous day, within 60 minutes after any inspector or law enforcement officer requests the record.
(d)
Each taxicab licensed under this Chapter must undergo a complete inspection of its mechanical condition and any special equipment used to transport persons with disabilities every 12 months at a time and place designated by the Department. The inspection must be performed by a licensed state inspector at a state-certified inspection station in good standing. The Director must immediately, without holding a hearing, suspend the license of any taxicab in an unsafe physical or mechanical condition. The Director must immediately reinstate any unexpired suspended license after receiving satisfactory proof that the violation or defect has been corrected.