BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2591
                                                                  Page  1

          Date of Hearing:   May 24, 2004

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                   Judy Chu, Chair

                     AB 2591 (Leno) - As Amended:  May 17, 2004 

          Policy Committee:                              Local  
          GovernmentVote:9-0
                        Transportation                        8-1

          Urgency:     No                   State Mandated Local Program:  
          Yes    Reimbursable:              No

           SUMMARY  

          This bill modifies Public Utilities Commission (PUC) and local  
          processes for regulating for-hire limousine services and  
          taxicabs.  Specifically, this bill:

          1)Allows cities and counties to impose rules governing the  
            inspection of "waybills" for limousine services to verify that  
            transport of passengers is carried out under a prearranged  
            basis between the service and the passengers.

          2)Requires the PUC, to better ensure limousines services are  
            operating solely on prearranged bases, to require a limousine  
            service to include, on its waybill or trip report, information  
            on the traveling party, on the party's point of origin and  
            destination, and on whether transport was arranged by  
            telephone or written contract.

          3)Allows a peace officer to impound and retain possession of a  
            taxicab whenever the officer arrests the taxicab operator for  
            violating a city or county ordinance.

          4)Eliminates the schedule, based on the number of prior  
            convictions, for determining the maximum penalty to be imposed  
            by a court on a person operating a limousines service or  
            taxicab without a valid certificate or permit and leaves the  
            penalty, up to a maximum of $5,000, up to the court.

          5)Allows the PUC to impose a maximum $5,000 fine on any person  
            who operates a taxicab without a valid permit or certificate  
            issued by a city or county.  (  Current law  allows the PUC to  








                                                                  AB 2591
                                                                  Page  2

            impose the maximum $5,000 fine on limousine services only.)

           FISCAL EFFECT  

          1)Minor costs, probably less than $120,000 in FY 2004-05, to the  
            PUC to adopt regulations implementing limousine waybill/trip  
            report information requirement.  These costs are covered by  
            revenue generated by fees imposed on limousine services and  
            other charter-party carriers.  (PUC Transportation  
            Reimbursement Account)

          2)Moderate potential penalty revenue to the extent the PUC  
            imposes fines on taxicab operators who operate without a valid  
            certificate or permit.  (GF)

           

          COMMENTS  

           1)Rationale  .  This bill, sponsored by the United Taxicab Workers  
            (UTW), a San Francisco labor organization, is primarily  
            intended to address a competition problem with limousine  
            services that violate their operating certificates and  
            permits.  The UTW is particularly concerned about limousine  
            services that act like taxicab services, a violation of  
            provisions that limit limousine transport of passengers to  
            prearranged trips.  

          In an effort to achieve more consistency in local and PUC  
            regulation of passenger transport, this bill also authorizes  
            penalties and other potential sanctions against taxicab  
            operators that are currently imposed on limousine services.
           
          2)Background  .  Limousine services, classified in statute as  
            "charter-party carriers of passengers," are allowed to  
            transport passengers for hire only to the extent that  
            transport was prearranged with the service by the passengers.   
            Prearrangement generally involves a reservation of limousine  
            services by phone or in person by a written contract.   
            Limousine services are precluded from picking up passengers on  
            a spontaneous basis, as taxicab operators are allowed to do.   
            This bill addresses this situation by allowing cities and  
            counties to require limousine services to maintain waybills  
            that show that a passenger is in a limousine under prearranged  
            conditions and by requiring the PUC to mandate that  








                                                                  AB 2591
                                                                  Page  3

            information.

           Analysis Prepared by  :    Steve Archibald / APPR. / (916)  
          319-2081