Licenses may only be transferred to individuals, partnerships, limited liability companies, or corporations. Taxicab medallions licenses may not be transferred to and held by a trust.
Each licensee who holds one or more active licenses shall be entitled to renew each such license for the succeeding licensing period, unless the applicant has ceased to be qualified to obtain a license under this chapter (other than if the disqualification for obtaining a new license is due to the licensee having reached the maximum number of licenses allowable under the Code) or unless cause exists under this chapter to rescind, revoke or require surrender of the license or licenses held by such person.
No person shall own in whole or in part, directly or indirectly, or have a security interest in more than 25 percent of, the authorized licenses.
Subject to the limitations set forth above, all taxicab industry licenses issued pursuant to this chapter shall be freely transferable to any person qualified under the provisions of this chapter to be a license holder. Every transfer must be approved by the department. In so approving, the commissioner, or her designee, shall review and investigate whether the transferor and transferee are eligible to sell, apply, renew, or hold the license being transferred. The commissioner shall determine eligibility by applying the standards and requirements for obtaining, renewing, or holding a license under this chapter or applicable promulgated rules.
No license holder may transfer a license if revocation proceedings with respect to that license have been filed with the department of administrative hearings or with any other court of competent jurisdiction.
Any attempt to transfer a license in violation of this section shall result in the rescission of the license as provided in section9-112-120" destination-id="JD_9-112-120">9-112-120 of this Code.
A nonrefundable transfer fee shall be paid by the transferee at the time of application or transfer of the license by the department. The amount of the fee shall be determined as follows:
if the transfer occurs less than one year after the transferor had acquired the license: 25 (twenty- five) percent of the purchase price or 25 percent of the average market value, whichever is higher;
if the transfer occurs one year or more but less than two years after the transferor had acquired the license: 10 (ten) percent of the purchase price or 10 percent of the average market value, whichever is higher; or
if the transfer occurs two or more years after the transferor had acquired the license, or if the transferor is a natural person and the transferee is the transferor’s spouse or a natural or legally adopted child of the transferor, or if the transferor is the executor or administrator of the estate of a deceased licensee or the executor or administrator of a deceased person who held 100 percent of the stock or other interest in a corporation which was the licensee and the transferee is not a person adjudged to be the heir of the deceased person, or if the transfer was pursuant to a foreclosure upon a pledged or encumbered license: 5 (five) percent of the purchase price or 5 percent of the average market value, whichever is higher.
The average market value shall be an amount determined by the commissioner to be the approximate average purchase price for licenses in arms-length transactions in the previous calendar year.
No transfer fee is assessed if the transferor is a natural person and the transferee is a corporation in which the transferor holds 100 percent of the stock; if the transferor is the executor or administrator of the estate of a deceased person who held the license or held 100 percent of the stock in a corporation which held the license and the transferee is the heir of the deceased person; or if the transferee is the legal spouse or child of the deceased transferor and that legal spouse or child is a 50 percent shareholder in the license and the deceased transferor was a 50 percent shareholder in the license.
Pledging or otherwise encumbering a license shall be permitted; provided, that the licensee shall notify the commissioner in advance and in writing of any such encumbrance and provide the commissioner with such information with respect to the person to whom the license is to be pledged as the commissioner may reasonably require. Any foreclosure upon a pledged or encumbered license shall constitute a transfer subject to the provisions of this subsection.
In the event of an individual licensee’s death, the authority to operate granted under the license shall cease, and the license card and medallion metal plate for each license owned or controlled by the deceased licensee must be surrendered by the individual in possession of the license card and the medallion metal plate.
Corporate officers or shareholders listed on the deceased licensee’s company, taxicab affiliations and license managers must report within five business days to the department any incident of death or incapacitation of a licensee.
Existing corporate officers of the deceased licensee’s company or the executor or administrator of the estate of any deceased licensee, only after application and approval by the commissioner, may continue to exercise the privileges of the deceased licensee, including the limited privilege of license transfer granted in this chapter, until the expiration of the license but no longer than six months after the licensee’s death. At the end of the six-month period or the expiration of the license, whichever comes first, the executor or administer may apply for and seek approval for an extension. The commissioner may extend this period after reviewing such application for an extension.
(Added Coun. J. 1-18-12, p. 19118, § 1)