Obtaining a Certificate of Public Convenience and Necessity

There are four steps to the certification process: (1) Acquiring the application, (2) application submission (if all requirements are met), (3) a certification hearing (If intervention occurs), and (4) satisfaction of bonding/insurance/inspection/safety requirements.

To begin the application process an applicant MUST meet the following criteria:

• The applicant must prove that the proposed operations will serve a useful public purpose, a useful public necessity and a useful public convenience responsive to a public demand. The applicant must satisfactorily present evidence that existing Public Carriers are not able to meet demands for Public Carrier service by the public. This requirement is satisfied through the presentation of petitions, surveys, and requests for service from Medicaid providers, demographic trend surveys, or other documents that clearly identify that a public demand exists, and existing Public Carriers are unable to meet the demand. Verbal or written statements by the entity intending to apply for a Certificate of Public Convenience and Necessity, in and of themselves, are insufficient without supporting documentation.
• The applicant, as to its proposed service and/or operations, has sufficient financial ability to compensate members of the public for injuries to person or property, which they may sustain, from acts or failures to act of the Public Carrier. In accordance with the authority granted by statute to the Office of Public Carrier Regulation, if a hearing is granted, and all criteria are met, that carrier must prove financial fitness, by providing one of the following: (1) a general liability insurance policy, or (2) a bond (in accordance with Office of Public Carrier Regulation requirements). This Financial Fitness requirement must be satisfied prior to issuance of a certificate. For the general liability insurance policy, the DelDOT DMV, MFTA Office of Public Carrier Regulation must be listed as a Certificate Holder.
• As to the proposed service and/or operations, the applicant must comply with all applicable motor vehicle laws of the State, including, but not limited to, 21 Del C, c. 21, Subchapter IV. The principals of the entity applying for certification, along with their intended drivers, must not have adverse driving records. In addition, the vehicles intended for Public Carrier use must be properly registered and titled in the company’s name, or a lease agreement between the business entity applying for certification and the vehicle owner must be presented. Finally, the vehicle(s) in question must not have adverse operational, safety or inspection issues.
• As to the proposed service and/or operations, the applicant is covered by and with a public liability and property damage policy or policies issued by a company licensed to conduct insurance business in the State with coverages. A letter of intent for coverage, in the amounts legally required (as identified in Chapter 3 of the Public Carrier Rules) from a qualified insurance company satisfies this requirement. If a certificate is granted, a Certificate of Insurance must be provided to the Office of Public Carrier Regulation prior to actual issuance of the certificate. The DelDOT DMV, MFTA Office of Public Carrier Regulation must be listed as a Certificate Holder.

Applicants must demonstrate their ability to meet these requirements in order to even be considered for a Certificate of Public Convenience and Necessity. The application must be completely filled out and returned to the Office of Public Carrier Regulation, with the appropriate filing fee ($75). The Office of Public Carrier Regulation will send notification to existing the Public Carriers. If an existing Public Carrier intervenes, a hearing is held to verify all information, and to give other Public Carriers the opportunity to participate in the process.

The applicant is responsible for the cost of the Court Reporter, who makes a verbatim transcript of the proceedings for the Office Of Public Carrier Regulation’s permanent files. Payment of these fees is to be rendered at the conclusion of the hearing.

If, after the hearing process, approval is granted, a Certificate of Public Convenience and Necessity will not be issued until bonding, insurance, inspection and safety requirements are met. Failure to meet any of these requirements will prevent Certificate issuance.

Once a certificate is issued, the Public Carrier is responsible for operating in a responsible manner, for maintaining neat and clean vehicles, for having their vehicles inspected twice a year, for providing and keeping current a Certificate of Insurance. In addition, each Public Carrier must submit a revised listing of all their drivers, whenever there are changes to the driver listing on file with the Office of Public Carrier Regulation.

An Annual Report and Assessment must be filed yearly, on or before April 1st, on forms provided by the Office of Public Carrier Regulation. The assessment is currently .002 (2 mills) multiplied by the Public Carrier’s gross operating intrastate revenue. Failure to file this report and submit payment in a timely manner will result in the assessment of late filing and/or late payment penalties.

Audit and Compliance: Routine scheduled and unscheduled site visits will be performed by Motor Fuel Tax Compliance personnel. Motor Fuel Tax Audit personnel will perform scheduled audits on the records of all Public Carriers. Audits will include verification of the information stated on the Annual Assessment Reports required by law to be filed by April 1st of each year. Failure to comply with Delaware laws, rules and regulations governing Public Carriers, or failure to provide and/or maintain the required records, will be cause for fines and penalties, up to and including revocation of any and all Certificates of Public Convenience and Necessity held by the non-compliant Public Carrier, and the voiding of any taxicab medallions held.

Application packages may be obtained from our website www.deldot.gov, and also from the Office of Public Carrier Regulation, physically located in the Public Safety Building, 303 Transportation Circle, Room 112, Dover DE 19901. For phone inquiries, please call Shelby French at 302-744-2706. Please mail all correspondence and reports to the Motor Fuel Tax Administration, Office of Public Carrier Regulation, P.O. Drawer E, Dover DE 19903.