RIDE Act Clarifying Amendments Will Prohibit Unreasonable Transportation Fees

And Protect Small Business Operators

The "Real Interstate Driver's Equity (RIDE) Act" (H.R. 2546, 107^th Cong., codified principally at 49 U.S.C. §14501(d)) prohibits States and any political subdivision, other than the home licensing State, from requiring a fee or other payment from providers of pre-arranged ground transportation service.

Problem: Unfettered Fees Threaten Small Businesses and Increase Travel Costs

Since the law was enacted, several airports and other transportation terminals (which are "political subdivisions" of States) have continued to charge or have initiated further unreasonable fees to all for-hire vehicles, regardless of whether the vehicle is providing interstate or intrastate transportation. These fees increase the costs of travel for passengers, act as a tax on these small business operators, and are directly contrary to the intent and spirit of the RIDE Act.

For example, flat annual fees of as much as $500 for each for-hire vehicle regardless of whether the vehicle makes one airport trip per year, or hundreds. These fees effectively prevent many small business operators from providing limousine service at airports, reducing supply, increasing costs for passengers, and causing many passengers to use other, less secure means of travel.

Limousine owners are primarily small businesses - 85% operate only 1 to 3 vehicles, and 44% of owners gross less than $250,000 per year. These small businesses can ill afford to pay unreasonable permitting fees, transponder "looping" fees, redundant inspection fees on vehicles that have already passed all required state inspections, and other charges.  These fees are increasingly burdensome as fuel prices rise and business travel is curtailed in the face of our nation's economic challenges.

Solution: Prohibit Unreasonable Fees While Allowing Fees for Useful Services

Our two organizations support proposed changes to 49 U.S.C. §14501(d) that would -

• Ø Clarify that States and political subdivisions (including publicly owned airports) cannot charge fees with respect to a vehicle that provides pre-arranged ground transportation service.

• Ø Prohibit transportation terminals from charging a special fee (other than a fee charged to the general public) for access to or use of the terminal or its facilities by any provider of pre-arranged ground transportation that is otherwise duly licensed by its "home" state.

• Ø Provide an exception that transportation terminal operators may charge a reasonable fee to cover the cost of ancillary services that are necessary, appropriate, desirable and useful to the business of the provision of pre-arranged ground transportation service. Such ancillary services might include curbside parking, monitors providing information regarding departures and arrivals, or other similar services.

Enactment Will Reduce Travel Costs and Protect Small Businesses 

This legislation will increase the convenience and reduce the cost of airport and interstate travel for travelers, protect the ability of small limousine company operators to survive in these tough economic times, while also allowing airports to charge fees for truly useful services.

Nothing in the bill prohibits airports and other transportation terminals from contracting for preferential arrangements with providers of pre-arranged ground transportation services, including "close-in" or exclusive on-site concessions, or from providing special lots for limousines and sedans for which the company or driver can pay a fee.

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THE NATIONAL LIMOUSINE ASSOCIATION

The National Limousine Association, Inc. (NLA) was founded in 1985 as a voluntary, non-profit, tax-exempt organization responsible for and dedicated to representing and furthering the worldwide, national, state and local interests of the luxury chauffeured ground transportation industry. Our membership, which currently exceeds over 2000 members, includes limousine owners and operators, suppliers, manufacturers, and regional and state limousine associations.

NLA membership unites peers in a powerful way. By pooling the resources and knowledge of thousands of operators from around the world, the NLA is able to accomplish goals far beyond the scope of any single limousine company. The inclusion of suppliers and manufacturers as Associate Members, who support operator interests, provides additional expertise and greater empowerment. Working together, NLA members continue to redefine professionalism and improve the industry every day.

The National Limousine Association is headquartered at 49 South Maple Avenue, Marlton, NJ 08053. The NLA staff can be reached between 9 AM and 5 PM Eastern time by phone at 800.652.7007 (toll free) or 856.596.3344, fax at 856.596.2146, and e-mail This e-mail address is being protected from spam bots, you need JavaScript enabled to view it .

THE TAXICAB, LIMOUSINE & PARATRANSIT ASSOCIATION

The Taxicab, Limousine & Paratransit Association (TLPA), formed in 1917, serves as the national organization that represents the owners and managers of taxicab, limousine, sedan, airport shuttle, paratransit, and non-emergency medical fleets. TLPA has over 1,000 member companies that operate 100,000 passenger vehicles. TLPA member companies transport over 2 million passengers each day - more than 900 million passengers annually.

The taxicab, limousine, and paratransit industry is an essential part of public transportation that is vital to this country's commerce and mobility, to the relief of traffic congestion, and to improving the environment. The private taxicab, limousine, and paratransit industry transports 2 billion passengers annually, compared with the 9 billion passengers transported by public transit; provides half of all the specialized paratransit services furnished to persons with disabilities; serves as a feeder service to major transit stations and airports; and provides about half of its service to transportation disadvantaged people, such as the elderly, who are either not able to drive or do not have a car.

TLPA, 3849 Farragut Avenue, Kensington, Maryland 20895