A municipality may regulate taxicab and limousine transportation by ordinance, and must regulate taxicab vehicles; limousine regulation is discretionary.
Sec. 215.004. TAXICABS AND LIMOUSINES. (a) To protect the public health, safety, and welfare, a municipality by ordinance: (1) shall license, control, and otherwise regulate each private passenger vehicle, regardless of how it is propelled, that provides passenger taxicab transportation services for compensation and is designed for carrying no more than eight passengers; and (2) may license, control, and otherwise regulate each private passenger vehicle, regardless of how it is propelled, that provides passenger limousine transportation services for compensation and is designed for carrying no more than 15 passengers. (a-1) Subsection (a) applies to a taxicab or limousine service that is operated: (1) within the jurisdiction of the municipality; (2) on property owned by the municipality, singly or jointly with one or more other municipalities or public agencies; (3) on property in which the municipality possesses an ownership interest; or (4) by transporting from the municipality, municipal property, or property in which the municipality has an interest and returning to it. (b) The ordinance may include: (1) regulation of the entry into the business of providing passenger taxicab or limousine transportation services, including controls, limits, or other restrictions on the total number of persons providing the services; (2) regulation of the rates charged for the provision of the services; (3) establishment of safety and insurance requirements; and (4) any other requirement adopted to ensure safe and reliable passenger transportation service. (c) In regulating passenger taxicab or limousine transportation services under this section, a municipality is performing a governmental function. A municipality may carry out the provisions of this section to the extent the governing body of the municipality considers it necessary or appropriate. (d) The provisions of this section relating to the regulation of limousine transportation services apply only to a municipality with a population of more than 1.9 million. Added by Acts 1989, 71st Leg., ch. 1, Sec. 50(a), eff. Aug. 28, 1989. Amended by: Acts 2007, 80th Leg., R.S., Ch. 476 (H.B. 2338), Sec. 1, eff. September 1, 2007.