BILL ANALYSIS
SB 201
Page 1
Date of Hearing: June 29, 2009
ASSEMBLY COMMITTEE ON TRANSPORTATION
Mike Eng, Chair
SB 201 (Oropeza) - As Amended: June 23, 2009
SENATE VOTE : 22-14
SUBJECT : Taxicab impoundment
SUMMARY : Establishes increased fines and clarifies impoundment
procedures for the release of an illegally operated and
unlicensed (bandit taxi) cab to a legal owner. Specifically,
this bill :
1)Imposes a penalty of $1,250 on the legal owner to whom an
impounded taxicab is released, if that legal owner:
a) Releases the taxicab to a registered owner, his/her
agent, or the person in possession of the vehicle at the
time of the impoundment prior to the end of the impoundment
period; and,
b) Releases the taxicab to a person who is not in
possession of a valid driver's license and a valid
operator's license.
2)Clarifies that a vehicle that was stolen or seized
inappropriately is not to be released from impoundment at any
time, except upon presentation of the registered owner's
currently valid license to operate the vehicle under the local
authority's licensing requirements and proof of current
vehicle registration, or upon order of the magistrate.
3)Clarifies the type of documents that can be submitted to prove
a vehicle's legal ownership.
EXISTING LAW :
1)Authorizes local authorities to license and regulate the
operation of vehicles for hire and drivers of passenger
vehicles for hire. A local authority must adopt either an
ordinance or resolution to establish requirements for
licensing these vehicles and drivers.
SB 201
Page 2
2)Requires a magistrate, when presented with sufficient evidence
by a peace officer or a designated local transportation
officer, to issue an order authorizing the peace officer or
transportation officer to impound, for not more than 30 days,
a taxicab or other vehicle for hire that is in violation of
local licensing requirements.
3)Requires the impounding agency to notify the legal owner of
the impoundment and to release the vehicle to that legal owner
without permission from the magistrate and prior to the end of
the 30 days, if:
a) The legal owner is not the registered owner but is a
motor vehicle dealer, financial institution, or other
person holding a financial interest in the vehicle; or,
b) The legal owner or his/her agent pays all towing and
storage fees related to the impoundment of the vehicle, and
the legal owner or his/her agent presents documents showing
proof legal of ownership of the vehicle.
4)Prohibits the legal owner from releasing the vehicle to the
registered owner until the termination of the impoundment
period.
5)Prohibits the legal owner from relinquishing the vehicle to
the registered owner until the registered owner presents a
valid driver's license and an operator's license that is in
compliance with the licensing requirements of the local
authority.
FISCAL EFFECT : Unknown
COMMENTS : According to this bill's sponsor, the City of Los
Angeles, "there are a number of bad actors who knowingly allow
their vehicles to be used illegally and without proper
licensing, in what is commonly referred to as "bandit taxis."
These bad actors remain the legal owners of the vehicles, but
register or loan them to others, who then drive them as bandit
taxis."
Typically, when a bandit taxi driver is caught and the vehicle
is impounded, the legal owner retrieves his/her vehicle from the
impound lot prior to the end of the 30-day impoundment period.
Once the vehicle is released to the legal owner, the legal owner
SB 201
Page 3
then returns the vehicle to the registered owner or other person
who was operating it illegally. Thus, the vehicle once again
operates as a bandit taxi. This bill attempts to stop this
revolving door for bandit taxis by imposing a fine on the legal
owners who return the bandit taxi to operation.
To operate in Los Angeles, taxicabs must have a permit from the
city. To receive a permit, drivers must undergo background
checks, meet insurance requirements, have their vehicles
inspected, and meet certain customer service standards. In
addition, taxicab companies must ensure that their fleets
contain a certain percentage of wheelchair-accessible vehicles
as well as a certain number of low-emission vehicles. A
franchise fee must also be paid to the city for the permit.
Often times, bandit taxis do not meet these public safety and
customer service requirements.
In the City of Los Angeles, the Los Angeles Department of
Transportation (LADOT) and Los Angeles Police Department (LAPD)
have worked together in cooperative bandit taxi enforcement over
the last 30 years. In 2007, the LADOT and LAPD reported 1,024
arrests, more than three times the annual average from the
previous ten years. Last year, the arrests increased to 1,427.
REGISTERED SUPPORT / OPPOSITION :
Support
City of Los Angeles (sponsor)
Official Police Garages of Los Angeles
Taxicab Paratransit Association of California
Opposition
None received
Analysis Prepared by : Alejandro Esparza / TRANS. / (916)
319-2093