BILL ANALYSIS
AB 2591
Page 1
ASSEMBLY THIRD READING
AB 2591 (Leno)
As Amended May 5, 2004
Majority vote
LOCAL GOVERNMENT 9-0 TRANSPORTATION 8-1
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|Ayes:|Salinas, Lieber, Daucher, |Ayes:|Oropeza, Houston, Bates, |
| |Garcia, | |Chan, Firebaugh, Pavley, |
| |La Suer, Leno, Mullin, | |Salinas, Simitian |
| |Steinberg, Diaz | | |
|-----+--------------------------+-----+--------------------------|
| | |Nays:|Mountjoy |
| | | | |
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SUMMARY : Strengthens the enforcement authority of local
governments in the regulation of charter-party carriers.
Specifically, this bill :
1)Authorizes a city, county, or city and county to impose
reasonable rules for the inspection of waybills of
charter-party carriers of passengers operating within the
jurisdiction of that local government.
2)Specifies that the operation of a charter-party carrier of
passengers without a valid permit or operating authority
constitutes a public nuisance.
3)Authorizes local law enforcement agencies, at the request of
the California Public Utilities Commission (CPUC), the
Attorney General, district attorney, city attorney, or county
counsel, to impound charter-party carrier vehicles being used
in a manner constituting a public nuisance for up to 72 hours.
EXISTING LAW :
1)Authorizes, under the Charter-Party Carriers' Act (Act), CPUC
to issue operating authority and to regulate every
charter-party carrier of passengers, including limousines for
hire, that operates in the state.
2)Authorizes a city, county, or city and county to adopt and
enforce reasonable rules and regulations pertaining to
AB 2591
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operations within its boundaries for any charter-party carrier
domiciled or maintaining a business office within that city,
county, or city and county.
3)Prohibits a charter-party carrier from engaging in taxicab
transportation service licensed and regulated by a city or
county.
4)Prohibits local governments from adopting license, permit,
fee, and other requirements on charter-party carriers
operating a limousine.
FISCAL EFFECT : Unknown
COMMENTS : The author has introduced this bill in an effort to
address problems on the local level with the regulation of
limousine operators. Charter-party carriers, including
limousines, are passenger carriers who provide prearranged
transportation service within the state. The Act, enacted in
the early 1960s, establishes CPUC as a regulatory body that
issues permits for this type of passenger carrier operation, and
establishes financial responsibility criteria, rate criteria,
and other operating requirements. According to the author and
proponents of this bill, CPUC has been less than effective in
discharging its responsibilities.
In response to allegations of the proliferation of renegade or
bandit limousine operators acting illegally as taxicabs, the
author wants to strengthen local governments' enforcement
authority in the regulation of charter-party carriers acting as
limousines. This bill authorizes a local government to inspect
charter-party carrier waybills, which provide proof that
passenger rides are prearranged, and to impound the vehicles of
illegal operators. Existing law authorizes local governments to
adopt and enforce any reasonable rules and regulations
pertaining to the operation of charter-party carriers within its
boundaries.
The author and supporters contend that the current system of
regulation and enforcement of charter-party carriers is
inadequate and ineffective. The taxicab and limousine
industries have both been faced with a proliferation of illegal
operators who fail to get CPUC operating authority or proper
insurance, and undercut the rates of legitimate operators.
Illegal operators do not follow basic safety and insurance
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regulations required by CPUC, do not pay for the state
regulation of limousines, and pose a variety of hazards to
passengers and other drivers. Proponents contend that this bill
will help control the longstanding illegal and unfair practices
of limousine drivers who operate as taxicabs by not adhering to
the requirement that their services have been prearranged.
Supporters assert that limousines have been stealing fares from
taxicabs from hotels, airports, and increasingly while customers
are hailing off the street. The author and supporters note that
CPUC lacks the resources or personnel to do more than minimal
enforcement, and that local governments' efforts have been
largely ineffective due to the inadequacy of existing
regulations. They contend that this bill will enhance public
safety and confidence, mitigate the economic harm of illegal
activities, and reduce the regulatory burden on the CPUC.
The limousine industry supports increased enforcement efforts,
since illegal operators affect their business as well. Further
amendments are expected to enhance the fines and penalties for
illegal operation of charter-party carriers and to clarify the
contents of waybills to ensure that limousines are operating on
a prearranged basis.
Analysis Prepared by : Mark McKenzie / L. GOV. / (916)
319-3958
FN: 0005155