BILL ANALYSIS                                                                                                                                                                                                    







                      SENATE COMMITTEE ON PUBLIC SAFETY
                             Senator Mark Leno, Chair                A
                             2009-2010 Regular Session               B

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          AB 1885 (Hill)                                             5
          As Amended April 14, 2010 
          Hearing date:  June 22, 2010
          Penal Code
          JM:mc

                            AIRPORT LIMOUSINES - REGULATION  

                                       HISTORY

          Source:  San Francisco International Airport

          Prior Legislation: AB 1310 (Leno) - Ch. 701, Stats. 2007
                       AB 2591 (Leno) - Ch. 603, Stats. 2004
                       AB 941 (House) - 1999, failed in Senate Public  
          Safety

          Support:  Unknown

          Opposition:None known

          Assembly Floor Vote:  Ayes 53 - Noes 15



                                       KEY ISSUE
           

          SHOULD THE GOVERNING STATUTE RELATING TO LIMOUSINE OPERATORS   
          PROVIDING SERVICES IN AIRPORTS SPECIFICALLY STATE THAT WHERE A  
          LIMOUSINE SERVICE PROVIDES TRANSPORTATION AT AN AIRPORT ON A  
          PRE-ARRANGED BASIS, THAT SERVICE DOES NOT CONSTITUTE SELLING OR  
          OFFERING GOODS OR SERVICES AT THE AIRPORT, AS SPECIFIED? 




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                                       PURPOSE

          The purpose of this bill is to allow an airport, such as San  
          Francisco International Airport, that is not located in the  
          county where the owning entity is located, to enforce state laws  
          requiring limousine operators to transport passengers only  
          through prior arrangement and to obtain consent to operate at  
          the airport.  

           Existing law  provides that every 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 or services to the public, including  
          transportation, other than charter limousines licensed by the  
          Public Utilities Commission (PUC), on or from the airport  
          property, without express written consent of the airport  
          governing board, is guilty of a misdemeanor, punishable by  
          imprisonment in a county jail for up to six months, a fine of up  
          to $1,000, or both.  The local governing entity may regulate  
          sale or offering for sale of any goods or services.  (Pen. Code  
           602.4.)

           Existing law  prohibits the governing body of any airport from  
          imposing vehicle safety, vehicle licensing, or insurance  
          requirements on charter-party carriers operating limousines that  
          are more burdensome than those imposed by the PUC.  However, the  
          governing board of any airport may require a charter-party  
          carrier operating limousines to obtain an airport permit for  
          operating authority at the airport.  A city, county, or city and  
          county may impose reasonable rules for the inspection of  
          waybills of charter-party carriers of passengers operating  
          within the jurisdiction of the city, county, or city and county,  
          for purposes of verifying valid prearranged travel.  (Pub. Util.  
          Code  5371.4, subds. (b) and (h).)

           Existing law  defines "limousine" as any sedan or sport utility  
          vehicle, of either standard or extended length, with a seating  
          capacity of not more than 10 passengers including the driver,  
          used in the transportation of passengers for hire on a  
          prearranged basis within California.  (Pub. Util. Code  5371.4,  




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          subd. (i).)

           Existing law  provides, as specified, that every charter-party  
          carrier and every officer, director, agent, or employee of any  
          charter-party carrier who violates or who fails to comply with  
          any order, decision or requirement of the PUC or of any  
          operating permit or certificate issued to any charter-party  
          carrier, or who procures, aids, or abets any charter-party  
          carrier in its failure to obey, observe, or comply with any such  
          order, decision, rule, requirement, or operating permit or  
          certificate, is guilty of a misdemeanor and is punishable by a  
          fine of not less than $1,000 and not more than $5,000 or by  
          imprisonment in the county jail for not more than three months,  
          or both.  Persons arrested for operating a charter-party carrier  
          without a valid certificate or permit at a public airport or  
          within 100 feet of a public airport may have their vehicle  
          impounded.  (Pub. Util. Code  5411 and 5411.5.)

           Existing law  provides that the court shall, when sentencing a  
          defendant for a conviction of operating a charter-party carrier  
          without a valid certificate or permit, impose a mandatory fine  
          not exceeding $10,000 for a first conviction, or $25,000 for a  
          subsequent conviction.  The fine shall be conditioned on the  
          defendant's ability to pay and shall be imposed in addition to  
          any other penalty.  (Pub. Util. Code  5412.2, subd. (b).)

           Existing law  provides that whenever the PUC, after hearing,  
          finds that any person or corporation that is operating as a  
          charter-party carrier, including a charter-party carrier  
          operating a limousine, without a valid certificate or permit, or  
          fails to include in any public advertisement the number or  
          permit or required identifying symbol, the PUC may impose a fine  
          of not more than $7,500 for each violation.  The PUC may assess  
          the person or the corporation in an amount sufficient to cover  
          the reasonable expense of investigation incurred by the PUC.   
          The PUC may assess interest on any fine or assessment imposed,  
          to commence on the day the payment of the fine or assessment  
          becomes delinquent.  All fines, assessments, and interest  
          collected shall be deposited a least once a month in the General  
          Fund.  (Pub. Util. Code  5413.5.)




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           This bill  removes the exemption currently given to charter-party  
          carrier limousines licensed by the PUC to enter or remain on  
          airport property owned by a city, county, or city and county but  
          located in another county, to offer transportation services, on  
          or from the airport property, without the express written  
          consent of the governing board of the airport property, or its  
          duly authorized representative.

           This bill  specifically provides that the offering of  
          pre-arranged transportation services by a charter party carrier  
          (limousine service) at an airport does not constitute the  
          offering of goods or services for which prior consent of the  
          airport authority is required.  
          

                    RECEIVERSHIP/OVERCROWDING CRISIS AGGRAVATION
          
          The severe prison overcrowding problem California has  
          experienced for the last several years has not been solved.  In  
          December of 2006 plaintiffs in two federal lawsuits against the  
          Department of Corrections and Rehabilitation sought a  
          court-ordered limit on the prison population pursuant to the  
          federal Prison Litigation Reform Act.  On January 12, 2010, a  
          federal three-judge panel issued an order requiring the state to  
          reduce its inmate population to 137.5 percent of design capacity  
          -- a reduction of roughly 40,000 inmates -- within two years.   
          In a prior, related 184-page Opinion and Order dated August 4,  
          2009, that court stated in part:

               "California's correctional system is in a tailspin,"  
               the state's independent oversight agency has reported.  
               . . .  (Jan. 2007 Little Hoover Commission Report,  
               "Solving California's Corrections Crisis: Time Is  
               Running Out").  Tough-on-crime politics have increased  
               the population of California's prisons dramatically  
               while making necessary reforms impossible. . . .  As a  
               result, the state's prisons have become places "of  
               extreme peril to the safety of persons" they house,  
               (Governor Schwarzenegger's Oct. 4, 2006 Prison  




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               Overcrowding State of Emergency Declaration), while  
               contributing little to the safety of California's  
               residents . . .   California "spends more on  
               corrections than most countries in the world," but the  
               state "reaps fewer public safety benefits." . . .  .   
               Although California's existing prison system serves  
               neither the public nor the inmates well, the state has  
               for years been unable or unwilling to implement the  
               reforms necessary to reverse its continuing  
               deterioration.  (Some citations omitted.)

               . . .

               The massive 750% increase in the California prison  
               population since the mid-1970s is the result of  
               political decisions made over three decades, including  
               the shift to inflexible determinate sentencing and the  
               passage of harsh mandatory minimum and three-strikes  
               laws, as well as the state's counterproductive parole  
               system.  Unfortunately, as California's prison  
               population has grown, California's political  
               decision-makers have failed to provide the resources  
               and facilities required to meet the additional need  
               for space and for other necessities of prison  
               existence.  Likewise, although state-appointed experts  
               have repeatedly provided numerous methods by which the  
               state could safely reduce its prison population, their  
               recommendations have been ignored, underfunded, or  
               postponed indefinitely.  The convergence of  
               tough-on-crime policies and an unwillingness to expend  
               the necessary funds to support the population growth  
               has brought California's prisons to the breaking  
               point.  The state of emergency declared by Governor  
               Schwarzenegger almost three years ago continues to  
               this day, California's prisons remain severely  
               overcrowded, and inmates in the California prison  
               system continue to languish without constitutionally  







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               adequate medical and mental health care.<1>

          The court stayed implementation of its January 12, 2010, ruling  
          pending the state's appeal of the decision to the U.S. Supreme  
          Court.  On Monday, June 14, 2010, the U.S. Supreme Court agreed  
          to hear the state's appeal in this case.    































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          <1>   Three Judge Court Opinion and Order, Coleman v.  
          Schwarzenegger, Plata v. Schwarzenegger, in the United States  
          District Courts for the Eastern District of California and the  
          Northern District of California United States District Court  
          composed of three judges pursuant to Section 2284, Title 28  
          United States Code (August 4, 2009).










           This bill  does not appear to aggravate the prison overcrowding  
          crisis described above.









































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                                      COMMENTS

          1.  Need for This Bill  

          According to the author:

               I was recently offered a ride by an unauthorized limo  
               driver at San Francisco International (SFO) Airport.   
               I have experience with this and know this type of  
               illegal soliciting is happening and can be dangerous  
               to those passengers that get roped in by these rogue  
               limo drivers.  

               AB 1885 provides law enforcement the necessary tools  
               to reduce the prevalence of unauthorized limousine  
               drivers that are illegally soliciting business at San  
               Francisco International Airport.  Due to a 1973  
               exemption, SFO police officers do not have adequate  
               enforcement authority to monitor unauthorized  
               limousine drivers.  AB 1885 would change the Penal  
               Code to give them this much needed authority.   
               Unauthorized limousine drivers not only take away  
               business from legitimate drivers, they endanger  
               passengers because they do not have to undergo  
               criminal background checks and their vehicles are not  
               inspected by the appropriate authorities.

          2.  Additional Background on Illegal Limousine Operators at  
            the San Francisco International Airport  

          The author has provided this additional background information:

               Due to a 1973 exemption, officers of the San Francisco  
               Police Department (SFPD) do not have enforce laws  
               prohibiting unauthorized limousine drivers from  
               illegally soliciting business on the grounds of San  
               Francisco International Airport (SFO).  SFO is owned  
               and operated by the City and County of San Francisco.   
               San Francisco Police officers patrol SFO.  However,  
               the airport is located in San Mateo County.   












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               Consequently, San Francisco Police officers at the  
               airport cannot arrest the drivers or impound their  
               vehicles based on San Francisco police powers because  
               those powers do not extend to San Mateo County, the  
               location of SFO.  

               This bill would allow SFO and San Francisco Police to  
               use Penal Code Section 602.4, which provides the  
               police with legal authority to arrest any person who  
               comes onto airport property and sells or offers to  
               sell goods and services to members of the public in  
               violation of the rules and regulations or the airport  
               governing board.  Unfortunately, however, while  
               Section 602.4 applies generally to transportation  
               services, charter limousines are specifically exempt  
               from this provision.  Therefore, SFPD cannot protect  
               the public at SFO from pirate limousine owners and  
               drivers by arresting such drivers and impounding their  
               vehicles.

               Illegal soliciting by limousine drivers is a  
               long-standing problem at SFO.  I was recently offered  
               a ride by an unauthorized limo driver at SFO.  I have  
               experience with this and know this type of illegal  
               soliciting is happening and can be dangerous to those  
               passengers that get roped in by these rogue limo  
               drivers.
                 
               Because the restriction in Section 602.4 only applies  
               to SFO and Ontario Airport, other airports do not have  
               a comparable problem with illegal limousine operators.  
                AB 1885 provides law enforcement the necessary tools  
               to reduce the prevalence of limousine drivers that  
               illegally solicit business at SFO.  Unauthorized  
               limousine drivers not only take away business from  
               legitimate drivers, they endanger passengers because  
               they do not have to undergo criminal background checks  
               and their vehicles are not inspected by the  
               appropriate authorities.













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          3.  Technical Suggestion  

          The bill now provides:  c) For purposes of this section,  
          any charter-party carrier licensed by the Public Utilities  
          Commission at an airport operating under a prearranged  
          basis, as defined in Section 5360.5 of the Public Utilities  
          Code, shall not constitute the sale, peddling, or offering  
          of goods, merchandise, property, or services.

          Read literally, this provision states that a charter party  
          carrier shall not be considered the sale, et cetera of  
          goods.  A charter party carrier provides services; it is  
          not the service.   It appears that the purpose of this  
          provision is to state that a charter party carrier that  
          provides transportation through an arrangement or contract  
          made prior to meeting the customer at the airport shall not  
          be considered to be illegally peddling or offering goods of  
          services.

          It is suggested that this provision be clarified as  
          follows:

          c) For purposes of this section, where any charter-party  
          carrier licensed by the Public Utilities Commission  
          provides transportation services at an airport on a  
          pre-arranged basis, as defined in Section 5360.5 of the  
          Public Utilities Code, those acts shall not constitute the  
          sale, peddling, or offering of goods, merchandise,  
          property, or services.


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