Editor’s note: We have asked of the NYC TLC in the past about their medallion requirements, and whether they have been changed or updated due to the evolution of Uber and Lyft.  While the same rules are in place, including limited numbers of yellow cabs and the newer green cabs, which did not work out as well as intended due to the aforementioned competitors, there are many options for those drivers who have been negatively impacted by the sudden decline in value.  This reduction in price happened due to the different rules that Uber and Lyft and other rideshare companies were asked to live by, versus what the already-exisiting yellow cab industry was subject to.  Whereas in the past, a yellow cab medallion was a super-valuable commodity, where people obtained mortgage-style loans on similarly mortgage-cost medallions (resulting from low supply and high demand), the evolution of ridesharing made these medallions practically worthless, almost overnight.  For those who had finished paying them off, that didn’t affect them as much.  But for those with outstanding loans and dwindling business, it was sometimes more than they could bear.  The number of driver suicides increased dramatically, in tandem with the market domination of New York City’s streets by the app-hailable rideshare vehicles.  The medallions became like underwater mortgages pretty quickly, just like the home market in the years that followed the runaway loan program that practically caused a depression in this country, due to lack of regulation of banks.  Of course, the Dodd-Frank Act that this inspired after caused more harm that good, as it made people trapped in mortgages unable to sell their homes due to the lower values that their homes had.  This was especially so in rural, low-income communities across the country, particularly in the South.   Drivers now, with these new rules, will also be able to pass their medallions on to family members who are qualified to take over their business, where in the past, this was not possible.

NEW YORK CITY TAXI AND LIMOUSINE COMMISSION

Notice of Public Hearing and Opportunity to Comment on Proposed Rules

What are we proposing? The Taxi and Limousine Commission (“TLC”) is proposing to reduce fines and fees that are negatively affecting TLC licensees and to update the Medallion Relief Program rules to facilitate transfer of taxicab medallions participating in the program.

When and where is the Hearing? TLC will hold a public hearing on the proposed rule. The public hearing will take place at 10:00 am on August 13, 2026. The hearing will be held in the hearing room at 33 Beaver Street – 19th Floor, New York, NY 10004.

The hearing room is wheelchair accessible and CART will be provided in the meeting room.

How do I comment on the proposed rules? Anyone can comment on the proposed rules by:

• Website. You can submit comments to the Taxi and Limousine Commission through the NYC rules website at www.nyc.gov/nycrules.

• Email. You can email comments to tlcrules@tlc.nyc.gov.

• Mail. You can mail comments to the Taxi and Limousine Commission, Office of Legal Affairs, 33 Beaver Street – 22nd Floor, New York, NY 10004.

• Fax. You can fax comments to the TLC at 212-313-3027.

• By speaking at the hearing. To sign up to speak and provide testimony, you must e-mail the TLC at tlcrules@tlc.nyc.gov or call 212-676-1135 by 5:00 p.m. on August 12, 2026. Speakers will not be able to sign up to testify the day of the hearing. You can speak for up to three minutes. Those who did not sign-up in advance to testify are welcome to view the live-stream of the meeting on TLC’s website. Please note that the hearing is for accepting oral testimony only and is not held in a “Question and Answer” format.

Is there a deadline to submit written comments? Yes, you must submit written comments by August 13, 2026.

Do you need assistance to participate in the Hearing? You must tell the Office of Legal Affairs if you need a reasonable accommodation of a disability at the Hearing. You must tell us if you need a sign language interpreter. You can tell us by mail at the address given above. You may also tell us by telephone at 212-676-1135. You must tell us by August 12, 2026. This location has the following accessibility option(s) available: Simultaneous transcription for people who are deaf or hard of hearing and audio only access.

Can I review the comments made on the proposed rules? You can review the comments made online on the proposed rules by going to the website at www.nyc.gov/nycrules. A few days after the hearing, copies of all comments submitted online, copies of all written comments, and a summary of oral comments concerning the proposed rule will be available to the public at the Office of Legal Affairs.

What authorizes the Commission to make this rule? Sections 1043 and 2303 of the City Charter and Section 19-503 of the New York City Administrative Code authorize the Commission to make this proposed rule. This proposed rule was included in TLC’s regulatory agenda for fiscal year 2027.

Where can I find the Commission’s rules? The Commission’s rules are in Title 35 of the Rules of the City of New York.

What rules govern the rulemaking process? TLC must meet the requirements of Section 1043 of the City Charter when creating or changing rules. This notice is made according to the requirements of Section 1043 of the City Charter.

Statement of Basis and Purpose

On January 14, 2026, the Mayor issued Executive Order 11, requiring that City agencies review all fees and penalties applicable to small businesses and identify and codify reforms to reduce undue hardships for small businesses. The initiative is led by the Deputy Mayor for Economic Justice. Many of the licensees of the New York City Taxi and Limousine Commission (TLC) are small businesses, such as drivers operating vehicles for hire, vehicle owners, and some base owners.

In compliance with Executive Order 11, TLC is proposing to eliminate

• • the driver license replacement fee of $25. This will help drivers who have lost or damaged their license replace their license at no additional fee and return to work.

  • rules which impose a $50 fine for drivers who need to report the loss or theft of their license, have an unreadable license, lost license, or a license that does not match their current appearance. A driver who misuses, or allows another to misuse, their license in an attempt to deceive the public will still be subject to charges under other TLC rules, such as for committing fraud or misrepresentation.

  • the $200 fine assessed to licensed TLC Drivers who take their annual drug test more than 30 days late during the time they hold their TLC license. TLC requires TLC Drivers to complete annual drug testing as an integral part of ensuring public safety. TLC Drivers are required to take and pass a drug test on the first and second anniversary of the date their license was issued. Drivers who miss this deadline are immediately suspended until they successfully complete their drug test. Because they are already suspended, the $200 fine that is imposed if a driver is more than 30 days late taking their drug test is an additional and unnecessary burden on the driver with minimal disincentive value

  • the fines associated with missed inspections for taxicabs pursuant to 35 RCNY §58-29(b) and for-hire vehicles pursuant to 35 RCNY §59A-26(a) range from $100 to $500. Both violations may result in the suspension of the license until compliance, therefore an additional fine is an unnecessary burden on the licensee.

The Medallion Relief Program Supplemental Loan Deficiency Guaranty

In addition to these fee and penalty reductions, TLC proposes further relief to medallion owners participating in the medallion loan debt relief through the Medallion Relief Program Supplemental Loan Deficiency Guaranty, more commonly known at MRP+. The goal of the MRP+ grant program is to support the recovery of the yellow taxicab industry in New York City by providing financial assistance and free legal representation to help medallion owners negotiate with lenders to reduce loan balances and lower monthly payments.

Since the Medallion Relief Program started in 2021 and expanded in 2022 with MRP+, the Medallion Relief Program successfully restructured loans for over 2,000 medallion owners, resulting in $472 million in debt forgiveness.

It has become clear that some changes to the MRP program rules relating to medallion ownership and transfers are required to provide the additional support to medallion owners and their families. These changes will ensure TLC’s ongoing commitment to small business owners and contribute to the financial health of the medallion industry and the City of New York.

Specifically, the proposed rules would permit:

1. The estate of a deceased medallion owner to transfer the medallion(s) to immediate family members upon the death of the medallion owner.

2. Medallion owners to transfer their medallion(s) to immediate family members.

3. Members of an existing partnership that owns one or more medallions to remove a partner from the entity upon mutual agreement by all partners.

TLC’s authority for these rules is found in section 2303 of the New York City Charter and section 19-503 of the New York City Administrative Code.

New material is underlined.

[Material inside brackets indicates deleted material.] Asterisks (***) indicate omitted text.

Section 1. Subdivision (e) of section 56-07 of Title 35 of the Rules of the City of New York, relating to the fee for replacement of a paratransit driver’s license, is REPEALED.

Section 2. Subdivisions (c), (d) and (e) of section 56-10 of Title 35 of the Rules of the City of New York, relating to reporting the loss of a paratransit driver’s license, replacing an unreadable license and keeping the license photo updated, are REPEALED, and subdivisions (f) and (g) are re-lettered as subdivisions (c) and (d).

Section 3. Subdivision (e) of section 57-07 of Title 35 of the Rules of the City of New York, relating to the fee for replacement of a commuter van driver’s license, is REPEALED.

Section 4. Subdivisions (a) through (d) of section 57-10 of Title 35 of the Rules of the City of New York, relating to reporting the loss of a commuter van driver’s license, replacing an unreadable license and keeping the license photo updated, are REPEALED, and subdivision (e) is re-lettered as subdivision (a).

Section 5. The penalty provision of subdivision (b) of section 58-29 of Title 35 of the Rules of the City of New York is amended to read as follows:

§58-29(b)

[Fine: (penalties below are cumulative) 0-30 days past inspection due date: $100 and Suspension until compliance 31-60 days past inspection due date: $100- $250 and Suspension until compliance 61-120 days past inspection due date: $250- $500 and Suspension until compliance More than 120 days past inspection due date: $500 and/or revocation.] Penalty: Suspension until compliance

Appearance REQUIRED

Section 6. Section 58-51 of Title 35 of the Rules of the City of New York is amended by adding a new subdivision (f), to read as follows:

6. Transfer of Medallions in Receipt of MRP+ Grants.

6. 1. Transfers to family members

A medallion owner or the medallion owner’s estate which has received an MRP+ grant, may transfer the medallion in receipt of the MRP+ grant to a family member that shall assume the obligations of the MRP+ grant if the following criteria are met:

6. 1. 1. The family member must be or must have been:

         1. A spouse or partner that is legally married or in a domestic partnership with the medallion owner, or

         2. A biological or adopted child of the owner, or

         3. A biological or adopted child of the surviving spouse or partner.

6. 1. 2. The family member must be able to provide documentation establishing the familial relationship with the medallion owner.

6. 1. 3. The participating lender has approved the family member as an eligible borrower.

6. 1. 4. All loan payments on behalf of the medallion owner must be brought up to date prior to the transfer if they are in arrears.

6. 1. 5. The medallion must be transferred to the family member in accordance with chapter 58 of the TLC Rules.

6. 2. Removal of a Partner from existing Partnership

A partnership entity that owns one or more medallions may remove a designated partner from the existing partnership if:

6. 1. 1. All partners have mutually agreed upon the removal of the designated partner and provided adequate documentation to both the participating lender and the Commission demonstrating such agreement.

6. 1. 2. The participating lender has agreed to the removal of the designated partner.

6. 1. 3. All loan payments on behalf of the partnership owning the medallion(s) must be brought up to date prior to the removal, if they are in arrears.

6. 1. 4. The change in medallion ownership must be recorded by the Commission in accordance with chapter 58 of the TLC Rules.

Section 7. The penalty provision of subdivision (a) of section 59A-26 of Title 35 of the Rules of the City of New York is amended to read as follows:

§59A-26(a)

[Fine: $100 and suspension] Penalty: Suspension of the Vehicle Owner License until any defect found is corrected or until the vehicle passes inspection, including any applicable inspection by the NYS DOT.

Appearance REQUIRED

Section 8. Subdivision (e) of section 80-07 of Title 35 of the Rules of the City of New York, relating to the fee for replacement of a taxicab driver’s license, is REPEALED, and subdivision

(f) is re-lettered as subdivision (e).

Section 9. Subdivisions (a), (b), (d) and (e) of Section 80-10 of Title 35 of the Rules of the City of New York, relating to reporting the loss of a taxicab driver’s license, an unreadable license, alteration of a license and updated license photo are REPEALED, subdivision (c) is re-lettered as subdivision (a), and subdivision (f) is re-lettered as subdivision (b).

Section 10. The penalty provision of subdivision (d) of section 80-14 of Title 35 of the Rules of the City of New York is amended to read as follows:

§80-14(d)(3)

[Fine] Penalty: Summary Suspension until compliance. [$200 if compliance is more than 30 days after the deadline.]

Appearance NOT REQUIRED

***

§80-14(d)(4)

[Fine] Penalty: Summary Suspension until compliance. [$200 if compliance is more than 30 days after the deadline.]

Appearance NOT REQUIRED

NEW YORK CITY LAW DEPARTMENT DIVISION OF LEGAL COUNSEL

100 CHURCH STREET NEW YORK, NY 10007 212-356-4028

CERTIFICATION PURSUANT TO CHARTER §1043(d)

RULE TITLE: Amendment of Rules Relating to Fees and Penalties for Drivers Licensed by TLC and the Medallion Relief Program

REFERENCE NUMBER: 2026 RG 029

RULEMAKING AGENCY: Taxi and Limousine Commission

I certify that this office has reviewed the above-referenced proposed rule as required by section 1043(d) of the New York City Charter, and that the above-referenced proposed rule:

1. is drafted so as to accomplish the purpose of the authorizing provisions of law;

2. is not in conflict with other applicable rules;

3. to the extent practicable and appropriate, is narrowly drawn to achieve its stated purpose; and

4. to the extent practicable and appropriate, contains a statement of basis and purpose that provides a clear explanation of the rule and the requirements imposed by the rule.

/s/ STEVEN GOULDEN Date: July 3, 2026

Senior Counsel

NEW YORK CITY MAYOR’S OFFICE OF OPERATIONS

253 BROADWAY, 10^th FLOOR NEW YORK, NY 10007

212-788-1400

CERTIFICATION / ANALYSIS PURSUANT TO CHARTER SECTION 1043(d)

RULE TITLE: Amendment of Rules Relating to Fees and Penalties for Drivers Licensed by TLC and the Medallion Relief Program

REFERENCE NUMBER: TLC-162

RULEMAKING AGENCY: Taxi and Limousine Commission

I certify that this office has analyzed the proposed rule referenced above as required by Section 1043(d) of the New York City Charter, and that the proposed rule referenced above:

1. Is understandable and written in plain language for the discrete regulated community or communities;

2. Minimizes compliance costs for the discrete regulated community or communities consistent with achieving the stated purpose of the rule; and

3. Does not provide a cure period because the violation cannot be corrected or undone.

/s/ Francisco X. Navarro July 2, 2026

Mayor’s Office of Operations Date

Banner Image: Yellow cab. Image Credit – Diane Picchiottino