(a) 
An entity may not operate a transportation-for-hire service inside the city without an operating authority permit granted under this chapter.
(b) 
A driver may not transport a passenger for hire within the city limits unless the entity that employs or contracts with the driver has been granted an operating authority permit under this chapter.
(c) 
Nothing in the operating authority permit shall be construed as granting to the operating authority a franchise to use city streets.
(Ordinance 2016-O0077, sec. 2, adopted 5/12/2016)
To obtain an operating authority permit, an applicant shall submit an application in the manner prescribed by this section. The applicant must be the entity that is the owner, controller, or operator of the proposed operating authority. An applicant shall file with the city secretary a nonrefundable application fee, as set forth and established annually in the city’s budget ordinance, and an application containing and certifying the following:
(1) 
The form of business of the applicant and the name and address of each entity with a twenty percent (20%) or greater ownership interest in the applicant’s business;
(2) 
If the applicant is a corporation or association, a copy of the documents establishing the applicant’s corporation or association;
(3) 
The verified signature of the applicant’s signatory;
(4) 
The address of the fixed facilities to be used as the applicant’s primary place of business in the city, if any, and the address of the applicant’s headquarters, if different from the address of the fixed facilities;
(5) 
The name of the entity designated by the applicant to receive notice on behalf of the operating authority, and that entity’s contact information, including a mailing address, telephone number, and email or other electronic address;
(6) 
That the operating authority requires its drivers to undergo an annual local, state, and national criminal background check by a nationally accredited third-party background check provider;
(7) 
That the operating authority’s drivers are required to maintain a physical or digital identification card displayable within their vehicles that contains a photograph of the driver, the full name of the driver, the name of the operating authority, and a means to contact the operating authority;
(8) 
That all vehicles operating under the operating authority permit have been inspected by a state authorized vehicle inspector, possess a current state-issued registration, and meet all required vehicle safety standards, required under this chapter;
(9) 
That the operating authority and all of its drivers are covered by a valid insurance policy, as described in this chapter, from an insurance company listed as an authorized auto liability lines carrier on the Texas Department of Insurance’s List of Authorized Insurance Companies, or a surplus lines insurer listed on the Texas Department of Insurance’s list of Eligible Surplus Lines Insurance Companies;
(10) 
A tax certificate showing the payment of ad valorem taxes on the operating authority’s local property, if any, to be used by the operating authority in connection with its transportation-for-hire service; and
(11) 
A copy of the applicant’s zero-tolerance policy for intoxicating substances.
(Ordinance 2016-O0077, sec. 2, adopted 5/12/2016)
Any change to the information provided by the applicant in its operating authority permit application must be reported in writing to the city secretary within ten (10) days of the change in the manner prescribed by the city secretary.
(Ordinance 2016-O0077, sec. 2, adopted 5/12/2016)
(a) 
If the city secretary determines that an entity’s operating authority permit should be denied, suspended, or revoked, the city secretary shall then issue a correction order to the operating authority notifying it that its permit is denied, suspended, or revoked, with such correction order detailing the reason for the denial, suspension, or revocation of the operating authority permit, the procedure to remedy the violation, and a statement informing the operating authority of its right of appeal the denial, suspension, or revocation of its permit to the permit and license appeal board in the manner set out in chapter 2 of this code.
(b) 
Denial.
The following shall constitute grounds for denial by the city secretary of an operating authority permit:
(1) 
The determination by the chief of police that the applicant is not qualified under this chapter;
(2) 
The applicant knowingly makes any false statement in its application statement; or
(3) 
The applicant has knowingly violated any city, state, or federal law or regulation.
(c) 
Suspension.
The following regulations apply to the suspension of an operating authority permit:
(1) 
The city secretary shall suspend an operating authority permit if the city secretary determines that the operating authority failed to comply with a correction order issued by the city secretary within the time specified in the correction order.
(2) 
The expiration date of the operating authority permit is not tolled or extended by a suspension.
(3) 
The city secretary may reinstate a suspended operating authority permit if the operating authority complies with the correction order and pays a reinstatement fee as such reinstatement fee is set forth and established annually in the city’s budget ordinance.
(d) 
Revocation.
The following regulations apply to the revocation of an operating authority permit:
(1) 
The city secretary shall revoke an operating authority permit if the city secretary determines that the operating authority:
(A) 
Knowingly made a false statement in its application statement;
(B) 
Failed to maintain the insurance required by this chapter; or
(C) 
Knowingly violated any city, state, or federal law or regulation.
(2) 
After revocation of its operating authority permit, an operating authority is not eligible for another operating authority permit for a period of up to two (2) years, depending on the severity of the violation resulting in the revocation as determined by the city secretary after its review of the revocation.
(e) 
It shall be unlawful under this chapter for any entity to operate as an operating authority if it fails to comply with a correction order notifying it of the denial, suspension, or revocation of its operating authority permit.
(Ordinance 2016-O0077, sec. 2, adopted 5/12/2016)
An operating authority permit is not transferable. This regulation should not be construed to impede the continuing use of trade names.
(Ordinance 2016-O0077, sec. 2, adopted 5/12/2016)
(a) 
An operating authority shall employ, maintain, and enforce a zero-tolerance policy prohibiting the use of intoxicating substances by its drivers while they are on duty.
(b) 
An operating authority shall include on its website a notice of the operating authority’s zero-tolerance policy for intoxicating substances, and information on how passengers may report a possible violation of the policy to the operating authority and to the city.
(Ordinance 2016-O0077, sec. 2, adopted 5/12/2016)
In no case shall the operating authority provide the opportunity for passengers to reserve, participate in, or pay for any transportation-for-hire service through the website or any form of the website, such as an “app” or other type of digital network.
(Ordinance 2016-O0077, sec. 2, adopted 5/12/2016)