BILL ANALYSIS Ó
AB 2790
Page 1
ASSEMBLY THIRD READING
AB
2790 (Nazarian)
As Amended April 13, 2016
Majority vote
------------------------------------------------------------------
|Committee |Votes|Ayes |Noes |
| | | | |
| | | | |
| | | | |
|----------------+-----+----------------------+--------------------|
|Business & |12-2 |Salas, Brough, Bloom, |Gatto, Jones |
|Professions | |Campos, Chávez, | |
| | |Dahle, Dodd, Gomez, | |
| | |Holden, Mullin, Ting, | |
| | |Wood | |
| | | | |
|----------------+-----+----------------------+--------------------|
|Transportation |14-0 |Frazier, Linder, | |
| | |Baker, Bloom, Brown, | |
| | |Chu, Daly, Dodd, | |
| | |Gomez, Kim, Mathis, | |
| | |Medina, Nazarian, | |
| | |O'Donnell | |
| | | | |
|----------------+-----+----------------------+--------------------|
|Appropriations |18-0 |Gonzalez, Bigelow, | |
| | |Bloom, Bonilla, | |
| | |Bonta, Calderon, | |
| | |Chang, Daly, Eggman, | |
| | |Gallagher, Eduardo | |
AB 2790
Page 2
| | |Garcia, Roger | |
| | |Hernández, Holden, | |
| | |Obernolte, Quirk, | |
| | |Santiago, Weber, Wood | |
| | | | |
| | | | |
------------------------------------------------------------------
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.
FISCAL EFFECT: According to the Assembly Appropriations
Committee, "negligible state fiscal impact. CRB prepares
reports for members of the Legislature upon request."
COMMENTS:
Purpose. This bill will require the CRB to conduct a study
regarding the necessity and feasibility of licensure for taxi
cab drivers. This bill is author sponsored. According to the
author, "unlike other drivers and professions, taxi cab drivers
face overlapping licensure requirements. Overall, [this bill]
simplifies the licensure of the taxicab profession, protects
consumers and ensures a competent and fair marketplace for
taxicab professionals by creating the [Commission], under the
[DCA]."
Taxicab Regulation and Local Control. 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
AB 2790
Page 3
Commission (PUC). Government Code Section 53075.5 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. The San
Francisco Municipal Transportation Agency requires taxicab
drivers 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 the English language,
get fingerprinted, attend and complete a taxi school training
program, have an offer from a taxi company to drive and pay an
application fee, among others. In the City of Los Angeles, an
applicant for a taxicab driver license, must be sponsored by one
of LA City's franchised taxicab companies, provide a driving
history record, pass an examination, and pay a fee.
According to information obtained from the Senate Energy,
Utilities, and Communications Committee and the Senate
Transportation and Housing Committee background paper for their
February 17, 2016 joint informational oversight hearing,
Ride-hailing Disruption: Establishing a Level Playing Field in
the Transportation-for-hire Market, "Taxicab Service Unlike
services regulated and licensed by the [PUC], taxicab service in
California is regulated by cities and counties. Taxis are the
only transportation for-hire service explicitly allowed to pick
up passengers via a street hail. Taxicab owners, fleets, and
drivers are often subjected to extensive regulations,
particularly in large cities, and generally less extensive
regulations in mid-sized and smaller cities. Therefore, the
range of regulations varies across jurisdictions, including
among neighboring cities. In general, taxi fares are regulated.
AB 2790
Page 4
Additionally, cities often cap the number of taxis to protect
against an oversupply that could result in excessive competition
that undermines public safety with unsafe vehicles, drivers, and
driving practices? The cities and counties restrict the number
of taxis by limiting the supply of permits, or medallions (named
for the metal ornament affixed to the vehicle)."
Other Vehicle Transportation Service Providers. California law
regulates different modes of passenger transportation for
compensation, in addition to taxi services, which are regulated
at the local level; there are charter-party carriers and
passenger stage corporations, and transportation network
companies (TNCs). TNC's are defined as an organization,
including, but not limited to, a corporation, limited liability
company, partnership, sole proprietor, or any other entity,
operating in California that provides prearranged transportation
services for compensation using an online-enabled application or
platform to connect passengers with drivers using a personal
vehicle, as specified in the Public Utilities Code Section
5431(a). The license to operate ride-hailing services has been
provided at the state level by the PUC, whereas taxis are
permitted exclusively by individual local cities and counties.
Occupational Licensing. The issue of occupational licensing and
its impacts on the ability to enter the labor market and
mobility within have been raised at both the state and federal
level. Currently, The Little Hoover Commission, which is a
statutorily created independent agency that conducts research
studies about state government operations, is currently in the
process of conducting a study on occupational licensing. The
study will partly explore the impact of occupational licensing
on upward mobility for various groups, as well as the effect of
licensing regulations on consumers and the economy. The Little
Hoover Commission's study will have a broad policy perspective,
and will not place emphasis on licensing testing, education, and
other requirements for specific professions.
AB 2790
Page 5
Analysis Prepared by:
Elissa Silva / B. & P. / (916) 319-3301 FN:
0003162