AGENCY TESTIMONY
Discussion of Intro 323 on maximum lease rates for for-hire vehicles
1:30:06
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129 sec
Commissioner Do discusses Intro 323, which would require TLC to establish maximum rates for leasing, rentals, and purchase arrangements of for-hire vehicles. He explains TLC's current efforts to address leasing costs and outlines challenges with setting maximum rates.
- TLC recognizes the burden of high leasing costs on drivers
- Current efforts include targeting EV license issuance to individual drivers and adopting FHV lease transparency rules
- TLC is conducting a study to ensure driver pay rules align with current operating costs, including lease costs
- Setting FHV lease rates is more challenging than for taxis due to the diversity of vehicle types and leasing arrangements
- TLC does not believe establishing maximum rates is the best approach but is open to exploring additional ways to reduce the burden of leasing costs on drivers
The commissioner concludes by thanking the committee and offering to answer questions.
David Do
1:30:06
Lastly, intro 323 would require TLC to establish maximum rates for leasing, rentals, lease to own, and conditional purchase of 4 higher vehicles.
1:30:15
TLC recognizes the burden of high leasing cost, which is one of the reason why we targeted the issuance of EV licenses to individual drivers and why we have adopted FHV lease transparency roles.
1:30:28
We are also currently conducting a study to ensure that our driver pay rules align with current operating costs, including leases costs.
1:30:37
While TLC does not, does regulate lease rates for our taxis, Differences between the sectors make setting FHV lease rates more challenging.
1:30:46
Makes and models for in the far higher sector are far more diverse than in the taxi sector.
1:30:51
Unlike taxis, the FHV industry relies on a wide range of vehicle types to offer a variety of different services to passengers from standard trips and compact sedans to premium services and luxury vehicles.
1:31:06
Depending on their target market, a recent survey of drivers revealed that some may spend $40,000 on a new car, while others may spend well over $100,000.
1:31:16
Determining the appropriate lease rates for such a wide range of vehicle types makes models and years would be incredibly challenging, especially because lease prices typically include insurance maintenance and other costs that are difficult to capture.
1:31:30
There is also much more variation in leasing arrangements in the FHVs sector from lease to own and conditional purchase arrangements to informal short term lease rentals between drivers, each of which would be have to be addressed with distinct regulatory approaches.
1:31:46
While we're open to explore additional ways to reduce the burden of leasing costs on drivers, We do not believe that establishing maximum rates is the best approach.
1:31:55
Thank you again for inviting me to provide an update on TLC's rate regulated industries, address recent developments, and offer the administration's position on the proposed bills.
1:32:06
We look forward to continuing to work with you to ensure that New Yorkers can rely on the city's for higher industry.
1:32:12
I'm happy to answer any questions that you may have.
