BILL ANALYSIS
AB 2591
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 2591 (Leno)
As Amended July 7, 2004
Majority vote
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|ASSEMBLY: |75-1 |(May 26, 2004) |SENATE: |28-7 |(August 10, |
| | | | | |2004) |
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Original Committee Reference: L. GOV.
SUMMARY : Strengthens the enforcement authority of local
governments in the regulation of charter-party carriers.
The Senate amendments :
1)Authorize the California Public Utilities Commission (PUC) to
require additional information on a waybill or trip report in
addition to specified information to ensure that
transportation has been prearranged.
2)Specify that a vehicle that has been impounded pursuant to the
provisions of this bill may not be treated as abandoned
property if the vehicle's owner is in the process of making
payments to the court.
3)Specify that the fine for a conviction of operating a
charter-party carrier of passengers or a taxicab without a
permit shall be no more than $2,500 for a first offense, and
up to $5,000 for a subsequent conviction.
AS PASSED BY THE ASSEMBLY , this bill:
1)Authorized 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)Required 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
AB 2591
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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)Authorized a peace officer to impound the vehicle of a person
arrested for operating a charter-party carrier of passengers
as a taxicab.
2)Deleted 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)Authorized PUC 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.
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 Charter-Party
Carrier's Act, enacted in the early 1960s, establishes PUC 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, PUC 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 specifies the required contents of a
waybill, which acts as proof that passenger rides are
AB 2591
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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 PUC operating authority or proper
insurance, and undercut the rates of legitimate operators.
Illegal operators do not follow basic safety and insurance
regulations required by PUC, 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
PUC 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 PUC. 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: 0007369