BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | SB 1430| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- THIRD READING Bill No: SB 1430 Author: Hill (D) Amended: 3/25/14 Vote: 27 - Urgency SENATE TRANSPORTATION & HOUSING COMMITTEE : 8-0, 4/29/14 AYES: DeSaulnier, Gaines, Beall, Galgiani, Hueso, Lara, Pavley, Roth NO VOTE RECORDED: Cannella, Liu, Wyland SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8 SUBJECT : Enforcement of ground transportation services at airports SOURCE : San Francisco International Airport DIGEST : This bill prohibits unregulated transportation operators from taking passengers to public airports. ANALYSIS : Existing law provides that a person who enters or remains on airport property owned by a city, county, or city and county, but located in another county, and sells, peddles, or offers for sale any goods, merchandise, property, or services of any kind whatsoever, including transportation services on or from, the airport property, without express written consent of the governing board of the airport property, is guilty of a misdemeanor. Existing law as described above does not include transportation services to airport property. CONTINUED SB 1430 Page 2 This bill makes it a misdemeanor for transportation services to take passengers to public airports without the express written consent of the airport governing board. Background According to the author's office, the California Legislature has granted governing bodies of publicly owned airports broad authority to manage their operations, including granting exclusive operating agreements to commercial enterprises. In exercising such authority, airport governing bodies are required to consider, among other things, public safety. Consequently, San Francisco International Airport (SFO) has the authority to and does require commercial ground transportation companies doing business on SFO roadways to have operating permits. This includes all charter party carriers regulated by the Public Utilities Commission (e.g., limousine operators and the newly designated transportation network companies such as Uber and SideCar), charter bus services, and shared ride van services. Because SFO is owned by the City and County of San Francisco, but located in San Mateo County, the Legislature passed Penal Code Section 602.4 to enable the San Francisco Police Department to enforce SFO's rules and regulations against businesses that operate unlawfully at SFO. The San Mateo District Attorney prosecutes violators of SFO's rules and regulations. Employing a very narrow interpretation of Section 602.4, under some circumstances the San Mateo District Attorney has declined to prosecute illegally operating transportation network companies under Section 602.4 because, while the statute prohibits unpermitted businesses form operating "on or from" SFO, it does not, in the opinion of the San Mateo DA, prohibit commercial transportation operators from taking passengers "to" SFO. FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes Local: Yes SUPPORT : (Verified 5/13/14) San Francisco International Airport (source) SB 1430 Page 3 ARGUMENTS IN SUPPORT : According to SFO, transportation network companies like Uber and Lyft are currently operating illegally at SFO by offering airport-return trip services to arriving air travelers who, at the end of their visit, will need to use ground transportation to return to the airport for departure home by air. Because current law does not include trips to the airport, these return trip services being offered on airport property constitute a legal loophole. The San Mateo County District Attorney, who prosecutes violations of illegal commercial activity on airport property, has declined to prosecute these cases because statute only includes transportation services from and on, but not to the airport. This bill would close the loophole by including transportation services to airports. JA:nl 5/13/14 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END ****