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An ordinance to amend Chapter 6.77 of the Metropolitan Code of Laws regarding the assignment, sale, transfer, or gifting of entertainment transportation vehicle certificates of public convenience and necessity and vehicle permits.
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WHEREAS, Chapter 6.77 of the Metropolitan Code of Laws regulates entertainment transportation within Nashville and Davidson County; and,
WHEREAS, allowing the assignment, sale, transfer, or gifting of entertainment transportation vehicle certificates of public convenience and necessity and vehicle permits under clear regulatory conditions promotes business flexibility and continuity while maintaining public safety and oversight; and,
WHEREAS, establishing a streamlined process for certificate holders in good standing, while requiring review for others, ensures efficient government operations; and,
WHEREAS, the Metropolitan Transportation Licensing Commission voted to recommend this ordinance to the Metropolitan Council for approval during its meeting held on June 16, 2026; and,
WHEREAS, it is in the best interest of the Metropolitan Government to amend the Metropolitan Code of Laws to clarify the rules governing such transactions.
NOW, THEREFORE, BE IT ENACTED BY THE COUNCIL OF THE METROPOLITAN GOVERNMENT OF NASHVILLE AND DAVIDSON COUNTY:
Section 1. That Section 6.77.020 of the Metropolitan Code of Laws is amended by deleting Subsection C in its entirety and replacing it with the following:
C. Except as provided in Section 6.77.055, no certificate issued pursuant to this chapter may be assigned, transferred, sold, or given from one person or entity to another without the express written approval of the MTLC upon the filing of an application for such a transfer. For the purposes of this chapter, a transfer includes a change in control of the certificate holder.
Section 2. That Chapter 6.77 of the Metropolitan Code is amended by adding new Section 6.77.055 as follows:
6.77.055 - Assignment, transfer, sale, and gift of certificates and permits.
An entertainment transportation certificate holder may assign, transfer, sell, or gift its certificate of public convenience and necessity to another person or entity under the following conditions:
A. The receiving person or entity shall comply with all requirements of this Chapter and applicable sections of the MTLC Rules and Procedures, including but not limited to all application requirements.
B. If the certificate holder wishes to assign, sell, transfer, or gift its certificate of public convenience or necessity to a person or entity that already holds a valid certificate at the time of the proposed transaction and is in good standing with the metropolitan government, the transaction may be approved in writing by the MTLC director without approval of the MTLC.
C. If the certificate holder wishes to assign, sell, transfer, or gift its certificate of public convenience and necessity to a person or entity that does not hold a valid certificate at the time of the proposed transaction or is not in good standing with the metropolitan government, then the proposed transaction shall require the approval of the MTLC before any assignment, sale, transfer, or gift of the certificate occurs.
D. For purposes of this subsection, “good standing” means that a certificate holder has met all of its required obligations under federal, state, and local law and is not the subject of pending disciplinary action by the MTLC.
Section 3. That Subsection 6.77.060.C.4. of the Metropolitan Code is amended by deleting it in its entirety and replacing it with the following:
4. Made a misrepresentation or false statement when obtaining or renewing a certificate or additional permits, or assigning, selling, transferring, or gifting a certificate or vehicle permit.
Section 4. That Subsection 6.77.090.A.4. of the Metropolitan Code is amended by deleting it in its entirety and replacing it with the following:
4. Made a misrepresentation or false statement when obtaining or renewing a certificate or additional permits, or assigning, selling, transferring, or gifting a certificate or vehicle permit.
Section 5. That Section 6.77.270 of the Metropolitan Code is amended by deleting it in its entirety and replacing it with the following:
6.77.270 - Vehicle permit required.
A. Each entertainment transportation vehicle must have a permit issued by the MTLC. The permit will identify each entertainment transportation vehicle by a unique number in accordance with rules and procedures established by the MTLC and will be associated with the specific classification and by certificate holder.
B. Permits are not transferable to other entertainment transportation vehicles or other certificate holders without the express written permission of the MTLC director or the MTLC. For the purposes of this chapter, a transfer includes a change in control of the permittee or certificate holder.
C. A certificate holder may assign, sell, transfer or gift its transportation vehicle permit(s) concurrently with any assignment, sale, transfer or gift of a certificate of public convenience and necessity that has been approved in accordance with Section 6.77.055 of this Chapter. The new permit holder must comply with this Chapter and all applicable sections of the MTLC Rules and Procedures, including but not limited to updating proof of vehicle ownership, registration, and any other required information.
D. Upon assignment, sale, transfer or gift of a vehicle permit to another person or entity in accordance with this section, the original vehicle permit issue date and expiration date shall remain unchanged.
Section 6. That this ordinance shall take effect from and after its passage, the welfare of the Metropolitan Government of Nashville and Davidson County requiring it.