BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 2790


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          Date of Hearing:  April 18, 2016


                        ASSEMBLY COMMITTEE ON TRANSPORTATION


                                 Jim Frazier, Chair


          AB 2790  
          (Nazarian) - As Amended April 13, 2016


          SUBJECT:  Taxicab drivers:  study:  licensure


          SUMMARY:  Requires the California Research Bureau (CRB) conduct  
          a study, on or before September 1, 2017, on the necessity and  
          feasibility of licensure for taxicab drivers.


          EXISTING LAW:


          1)Requires every city or county to protect the public health,  
            safety, and welfare by adopting an ordinance or resolution in  
            regard to taxicab transportation service rendered in vehicles  
            designed for carrying not more than eight persons, excluding  
            the driver, which is operated within the jurisdiction of the  
            city or county.

          2)Requires each city or county to provide for, at minimum, the  
            following:



             a)   A policy for entry into the business of providing  
               taxicab transportation services, including, but not limited  
               to:








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               i)     Employment, or an offer of employment, as a taxicab  
                 driver in the jurisdiction, including compliance with a  
                 mandatory controlled substance and alcohol testing  
                 certification program;

               ii)    The driver's permit becomes void upon termination of  
                 employment;

               iii)   The drivers permit states the name of the employer;  
                 and,

               iv)    The employer notifies the city or county upon  
                 termination of employment.

             a)   The establishment or registration of rates for the  
               provision of taxicab transportation services; and, 

             b)   A mandatory controlled substance and alcohol testing  
               certification program, as specified.

          1)Authorizes each city or county to levy service charges, fees,  
            or assessments in an amount sufficient to pay for the costs of  
            carrying out an ordinance or resolution adopted in regard to  
            taxicab transportation services.

          2)Permits a transportation inspector, authorized by a local  
            government to cite any person for operating as a taxicab  
            without a valid certificate, license or permit, required by  
            any ordinance, to impound and retain possession of any vehicle  
            used in violation of the ordinance.

          3)Requires every taxicab transportation service to include the  
            number of its certificate, license, or permit in every written  
            or oral advertisement of the services it offers.

          4)Permits a city or county to adopt additional requirements for  
            a taxicab to operate in its jurisdiction.









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          5)Provides for the licensure and regulation of various  
            professions and vocations by boards and commissions within the  
            Department of Consumer Affairs.



          FISCAL EFFECT:  Unknown


          COMMENTS:  Under current law, taxicab businesses and taxicab  
          drivers are regulated through various local ordinances.  Each  
          local jurisdiction can and does create its own requirements for  
          taxis to operate, unlike other models of passenger carriers, who  
          are regulated under one statewide requirement, established by  
          the Public Utilities Commission (CPUC).  Existing law requires  
          cities and counties to protect the public health, safety, and  
          welfare by adopting an ordinance or resolution in regard to  
          taxicab transportation services.  Each ordinance or resolution  
          must include a policy for entry into the business of providing  
          taxicab services, the establishment or registration of rates,  
          and a mandatory controlled substance and alcohol testing  
          certification program.


          Local jurisdictions may include additional requirements for  
          taxicab businesses and drivers, many of which do.  For example,  
          the San Francisco Municipal Transportation Agency requires a  
          taxicab driver to be a legal resident, maintain personal  
          hygiene, be free of disease, possess a current California  
          driver's license, be 21 years of age, speak, read and write  
          English, get fingerprinted, attend and complete a taxi school  
          training program, have an offer from a taxi company to drive,  
          and pay an application fee.  In the City of Los Angeles, an  
          applicant for a taxicab driver license must be sponsored by one  
          of the city's franchised taxicab companies, provide a driving  








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          history record, pass an examination, and pay a fee.


          Because cities regulate the number of taxis permitted in each  
          jurisdiction, the number of taxicab drivers varies by location.   
          The Bureau of Labor Statistics reports that there are just over  
          13,000 taxicab and chauffer drivers in California.


          This bill would require the CRB to conduct a study, on or before  
          September 1, 2017, on the necessity and feasibility of licensure  
          for taxicab drivers in order to inform the Legislature on the  
          topic of substituting statewide regulation for various local  
          ordinances.


          The author identifies other types of commercial carriers  
          regulated by the state, including transportation network  
          companies, limousines, and shuttles, and argues that these  
          business models are similar to taxis, but they are licensed and  
          regulated by CPUC and benefit from consistent and statewide  
          operating standards, while taxis are not.


          According to the author, "the recent expansion of  
          technology-enable transportation services has questioned the way  
          California incorporates regulatory frameworks across all sectors  
          of the transportation industry," including taxis.


          By collecting information through a study of the necessity and  
          feasibility of statewide licensure for taxicab drivers, the  
          author intends to provide the basis for future Legislative  
          action in this field.


          It is unclear if legislation is necessary to request the  
          California Research Bureau to conduct such a study.









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          Double referral:  This bill passed out of the Assembly Business  
          and Professions Committee on April 12, 2016, with a 12-2 vote.


          REGISTERED SUPPORT / OPPOSITION:




          Support


          None on file




          Opposition


          None on file




          Analysis Prepared by:Justin Behrens / TRANS. / (916) 319-2093




















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