The case is called Greater
New York Taxi Ass’n, et al. v. New York City Taxi and Limousine Commission
Limousine Commission, et al., 101083/2013 (October 8, 2013). The ruling invalidated the “Taxi of Tomorrow” program on the grounds that the
regulation exceeded the TLC’s statutory authority and that in enacting the
regulation the TLC violated the separation of powers doctrine.
The
Taxi of Tomorrow regulation would have mandated that medallions owners purchase a specific make and model of automobile (the Nissan NV200) that had been designated by the TLC as the Official Taxicab Vehicle. It was enacted after substantial public discussion, an online poll as to the public's preference and
formal notice and comment in September 2012. After an earlier ruling invalidated part of the rule on the ground that it did not permit the use of hybrid taxis, the rule was amended. Now the the entire program has been thrown out.
The court analyzed whether the TLC had
been delegated authority to enact such a rule by its enabling statute, the City
Charter. In its review, the court found that “the purpose of the TLC was clearly
defined” and that the Charter “enumerated authority to set ‘standards of
service, standards of insurance and minimum coverage; standards for driver
safety and design; standards for noise and air pollution control; and to set
standards and criteria for the licensing of vehicles, drivers and chauffeurs,
owners and operators engaged in such services.’” The court then concluded that
the power to compel medallion owners to purchase a specific automobile does not
exist in the City Charter.
The court
further found that the TLC rule unlawfully impinged on the authority of the
City Council to mandate the type of cars that could be used as taxis (if there
was to be such a mandate at all). The TLC was not exercising a “typical
administrative ‘interstitial’ rule-making function” such as its historical role
of setting technical standards for taxicabs. Instead, it wrote on a clean
slate, “creating its own comprehensive set of rules without benefit of
legislative guidance.”
This is just the latest effort by Mayor Bloomberg and his (theoretically independent taxi commissioners) to dictate the type of vehicle that taxi owners might purchase. First, the mayor tried to force the industry to buy hybrid vehicles, not in so many words by through a minimum gas-mileage regulation. That ruling was held invalid on the grounds that only the Congress could dictate gas mileage. Then Bloomberg pushed through the Taxi of Tomorrow, which ironically would have prevented the use of hybrids.
The city has said it will immediately appeal. But for now, we are back to the traditional regime, where, in Justice Hagler's words the New York City taxi fleet "comprised various makes and models of
vehicles made by different automobile manufacturers. These makes and models were then modified or 'hacked-up' for use as taxis." The TLC set the specific standards for cars that could be employed as taxis and the medallion owners were given the freedom to purchase any make or model of vehicle from any manufacturer who met those standards.
Only recently has the TLC decided it was smart enough to design cars. But it seems it was too smart by half. Nissan, meanwhile, says it will still roll out the NV200, and that it's a great car. Maybe so, but without its state-mandated monopoly, it will be a tougher sell.
