BILL ANALYSIS
AB 2591
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ASSEMBLY THIRD READING
AB 2591 (Leno)
As Amended May 17, 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, for purposes of
verifying valid prearranged travel.
2)Requires every charter party carrier of passengers to include
all of the following on a waybill or trip report to ensure
that the transportation was prearranged:
a) The name of at least one passenger in the traveling
party, or identifying information of the traveling party's
affiliation;
b) The point of origin and destination of the passenger or
traveling party; and,
c) Information as to whether the travel was arranged by
telephone or written contract.
1)Authorizes a peace officer to impound the vehicle of a person
arrested for operating a charter-party carrier of passengers
as a taxicab.
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2)Deletes the existing graduated fine structure for persons
convicted of operating a charter-party carrier of passengers
or a taxicab without a valid certificate or permit and instead
requires the court to impose a mandatory fine of not more than
$5,000 per offense.
3)Authorizes the California Public Utilities Commission (CPUC)
to impose a fine of up to $5,000 for each violation upon a
person or corporation found to be operating a charter-party
carrier of passengers as a taxicab without a valid certificate
or permit in violation of a local ordinance or resolution.
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
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
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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 specifies the required contents of a
waybill, which acts as proof that passenger rides are
prearranged, enhances the fines for illegal operators, and
provides for local authority to inspect charter-party carrier
waybills 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
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 CPUC. The
limousine industry supports increased penalties and enforcement
efforts, since illegal operators affect their business as well.
Analysis Prepared by : Mark McKenzie / L. GOV. / (916)
319-3958
FN: 0005418
AB 2591
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