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In short
A for-hire vehicle may only carry passengers who were booked in advance through a TLC-licensed base — an app, a black car base, a livery base. Rule 59A-25(a)(1) holds the vehicle owner responsible when the car carries a passenger any other way, like a street hail or a cash pickup at the curb. The fine starts at $100 and goes up $100 for each violation in the same license term, up to $10,000. The driver usually faces a separate charge.
What the rule says
From §59A-25 of chapter 59, "Passenger Trips by Pre-Arrangement Only":
- "No For-Hire Vehicle Owner will allow Owner's Vehicle(s) to transport Passengers for hire other than through pre-arrangement with a Base licensed by the Commission."
- "A For-Hire Vehicle Owner will be liable for penalties for any violation of this section."
The penalty box: "During any license term, $100 for the first violation during such term, with the penalty increasing by $100 for each subsequent violation up to a maximum of $10,000." Appearance not required.
How the fine climbs
Unlike most TLC fines, this one depends on how many violations the vehicle has had in its current license term. Here is how the rule's formula works out:
Five violations in one term add up to $1,500 in total ($100 + $200 + $300 + $400 + $500). That escalation is what makes repeat street pickups expensive for owners.
Who it applies to
The FHV owner. If you own the car you drive, you can receive this summons and a driver summons from the same stop. If you rent your car to someone else, you're responsible for how it's used — so put the pre-arrangement rule in your rental agreement. For black car and app drivers, see the black car drivers page.
Owner charge vs. driver charge
The driver rules in chapter 80 have their own pre-arrangement rule. Rule 80-19(c)(1) covers an FHV driver picking up a passenger without a dispatch, and 80-19(c)(2) carries higher penalties in the Hail Exclusionary Zone (Manhattan south of East 96th and West 110th Streets, and the airports). The driver penalty and the owner penalty are separate, and both can come from one stop.
How often this charge appears
OATH's records show 4,000–6,300 a year from 2014 to 2019, then a sharp drop: about 1,400 in 2020 and fewer than 500 a year from 2023 to 2025. The data doesn't explain the drop or show outcomes.
Common situations
- A street hail — someone waves the car down and the driver takes them.
- An airport or train-station curb pickup without an app or base booking.
- A "regular" passenger who calls the driver directly rather than booking through a base.
- A trip booked through an unlicensed app or website, not a TLC-licensed base.
Why owners are charged at all
It can seem unfair for an owner to be fined for a trip someone else drove. The rule is written that way on purpose: it says the owner "will not allow" the vehicle to carry passengers except by pre-arrangement, and 59A-25(a)(2) makes the owner "liable for penalties for any violation of this section." The idea is that owners control who drives their cars and on what terms. In practice, owners who rent their TLC cars to other drivers carry this risk for every shift they don't drive themselves. A written agreement that requires app or base dispatch for every trip, and lets you end the rental after a street-hail summons, is the most direct protection.
After the hearing
If you are found in violation, §59A-02(c) says the fine is due within 30 days of the decision, and unpaid fines lead to a written notice of suspension in 10 business days. Because the fine for each new violation depends on earlier ones in the same term, keep a list of every 59A-25(a) decision on the vehicle so you can check the amount you're charged.
What helps
The key evidence is a record that the trip was dispatched: an app trip receipt, a base dispatch log, a booking confirmation with time and pickup point. Under §59B-19, bases must collect and report the date, time and location of each dispatched trip, the driver's license number and the vehicle's license number — so a base can often confirm a booking. Get those records quickly.
Defenses to discuss with a lawyer (general information)
Not legal advice. A representative may ask whether the trip was in fact prearranged through a licensed base (and can the base prove it), whether the person in the car was a paying passenger, and whether the summons correctly counts how many earlier violations the vehicle had in this term — since that sets the fine. See what TLC must prove.
Documents to gather
The summons, app or base trip records for the date and time, the base's dispatch confirmation, and your vehicle license term dates. Read our unlicensed activity and street hail guide and the base affiliation guide.
Frequently asked questions
What does 59A-25(a)(1) say?
No for-hire vehicle owner will allow the owner's vehicle(s) to transport passengers for hire other than through pre-arrangement with a base licensed by TLC.
How much is the fine?
During any license term, $100 for the first violation, with the penalty increasing by $100 for each later violation in that term, up to a maximum of $10,000. Appearance is not required.
Is the driver charged separately?
Usually, yes. Drivers have their own rules on street hails, such as 80-19(c)(1). 59A-25(a)(1) is the owner's charge, and 59A-25(a)(2) makes the owner liable for penalties for these violations.
Does the count reset?
The rule counts violations 'during any license term', so the escalation is tied to the vehicle license term.
Sources
Last reviewed against the official sources on .
- TLC Rule Book, Chapter 59 — §59A-25 nyc.gov
- TLC Rule Book, Chapter 80 (Drivers) — §80-19 nyc.gov
- TLC: Receive a Summons nyc.gov
- NYC Open Data: OATH Hearings Division Case Status (jz4z-kudi) data.cityofnewyork.us
Spotted something out of date? Tell us and we'll check it against the official source.
TLC Help is not a law firm and is not affiliated with the NYC Taxi & Limousine Commission or OATH. Explanations on this site are general information, not legal advice. Legal representation is provided by independent attorneys and OATH-registered representatives in our network.