BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                            



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                                    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.

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          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) 







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           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

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