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SR-419-000 f:\atty\share\cfh\taxicab\staffrep2.wpd City Council Meeting 3-6-01 Santa Monica, California TO: Mayor and City Council FROM: City Staff SUBJECT: Ordinance Adding Sections 6.48.031 and 6.48.140 to the Municipal Code and Amending Section 6.48.040 of the Municipal Code Relating to Taxicab Owners and Drivers Introduction The purpose of the proposed amendments to the existing taxicab ordinance is to comply with California Government Code Section 53075.5. Section 53075.5 requires local laws to include, at minimum: (1) the establishment or registration of taxicab rates; (2) a policy for entry into the business of providing taxicab transportation service; and (3) a mandatory drug and alcohol testing program for taxicab drivers. The Santa Monica Municipal Code currently regulates entry into taxicab businesses, but it does not include certain provisions required by Section 53075.5(b), nor does it cover taxicab rates or mandatory drug and alcohol testing. The adoption of this Ordinance will bring the Citys taxicab regulations into compliance with current state law. = 1 Discussion Registration of Taxicab Rates State law requires the establishment or registration of rates for the provision of taxicab A transportation service. California Government Code 53075.5(b)(2). The City does not @' have established taxicab rates; therefore it must require the registration of taxicab rates. Accordingly, Section 6.48.031 is added to the Municipal Code to require that all persons applying for a business license under Section 6.48.030 file with the City a schedule of A taxicab rates for carrying passengers. This Section prohibits conducting any taxicab @ business without having first filed a schedule of taxicab rates, requires that at all times such persons keep on file an up-to-date rate schedule, and prohibits taxicab drivers from charging a sum greater than that listed on the schedule filed with the City. Policy for Taxicab Driver Permits Section 53075(b)(1) mandates that the Citys taxicab ordinance include the following = requirements: (A) The driver must be employed by a taxicab company as a driver, and test negative for drugs and alcohol, as conditions of permit issuance. (B) The driver's permit must become void upon termination of employment. (C) The driver's permit must state the name of the employer. (D) The employer must notify the City upon termination of employment. (E) The driver must return the permit to the City upon termination of employment. 2 These requirements can readily be incorporated into the City=s existing procedures. The proposed Ordinance divides the existing permit application procedure (described in Section 6.48.040) into three stages: application, investigation, and permit issuance. The new application process is modeled after Burbank=s taxicab ordinance, which was one of the first ordinances to comply with Section 53075.5. The proposed changes to Section 6.48.040, besides adding the mandatory requirements under state law, do not significantly change the City?s existing procedure for obtaining a driver?s permit (referred to as a ?Police Permit? instead of a ?police permit/photo badge? in the proposed Ordinance). The proposed changes are likely to provide more uniformity and guidance in the application process for both the City employees who process the applications and the applicants. The existing Ordinance requires all persons who ?drive? a taxicab to have a taxicab driver?s permit. The proposed Ordinance requires that only persons who drive a taxicab to ?pick up or attempt to pick up passengers? have a taxicab driver?s permit. Under the proposed Ordinance, drivers who drop off, but do not pick up, passengers in Santa Monica need not have a taxicab driver?s permit issued by the City. This modification more accurately reflects the City?s intent to regulate passenger pick ups, and not passenger drop offs, within the City?s boundaries. Section 6.48.040(a), which describes the initial application process, now requires the applicant to provide, when applying for a driver?s permit, the certification of his or her 3 prospective employer. Additionally, the applicant must provide a recent test result from a certified laboratory or testing agency proving that the applicant has tested negative for drugs and alcohol. The name and location of an approved testing facility will be provided to the applicant. Subsection (c) is added to Section 6.48.040 and provides that a driver?s permit shall bear the driver?s employer?s name. In addition, although not required by Section 53075.5, Subsection (c) provides that the Police Department?s decision to approve or deny a Police Permit is final, and not appealable to any City body or official. This clarifies the City?s position on an issue which is silent in the existing Ordinance, the finality of the Police Department?s decision. Subsection (d) is added to require that in order to renew an expired permit, the applicant must provide a recent test result proving that the applicant has tested negative for drugs and alcohol. A new subsection, entitled ?Effect of termination of employment,? provides that a taxicab driver?s permit is contingent upon employment. Although the existing Ordinance already limits the operation of a taxicab to owners or their employees, the new subsection explicitly provides that a driver?s permit is in effect only for as long as the permittee is employed, and provides a procedure for giving notice and returning the permit to the City upon termination of employment. 4 The last subsection added to Section 6.48.040, entitled ?Grounds for suspension and revocation,? provides that upon a violation of any provision of this Section, the driver?s permit and the owner?s business license may be suspended or revoked. Although this provision goes beyond the mandatory minimal requirements of Section 53075.5, it addresses the City?s objective to hold drivers and their employers liable for the driver?s non-compliance with the provisions of this Section. Penalty In addition to proposed Section 6.48.040 (f) (entitled ?Grounds for suspension and revocation? and discussed in previous paragraph), the proposed Ordinance adds Section 6.48.140, which provides that any person violating any provision of the Chapter shall be guilty of an infraction or a misdemeanor. This new Section broadens the scope of acts subject to sanctions (i.e., from violations of Section 6.48.040 to violations of any section of Chapter 6.48), and enhances the penalties from revocation and suspension of permits and licenses to criminal penalties, thereby permitting more meaningful enforcement of the Ordinance. Financial/Budget Impact There are no fiscal impacts associated with this proposed Ordinance. The employer of the applicant for the driver?s permit will be responsible for the costs associated with the drug and alcohol testing. There are no costs to the City associated with the requirement for the registration of taxicab rates. 5 Recommendation It is respectfully recommended that the accompanying Ordinance be introduced for first reading. PREPARED BY: Marsha Jones Moutrie, City Attorney Eda U. Suh, Deputy City Attorney Debby Sowers, Business License Captain Roy McGinnis, Police Department 6 f:\atty\share\cfh\taxicab\ordin.draft.wpd City Council Meeting 3-6-01 Santa Monica, California ORDINANCE NUMBER ____ (CCS) (City Council Series) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA ADDING SECTIONS 6.48.031 AND 6.48.140 TO THE SANTA MONICA MUNICIPAL CODE AND AMENDING SECTION 6.48.040 OF THE SANTA MONICA MUNICIPAL CODE RELATING TO TAXICAB REGULATIONS WHEREAS, the visitor service industry is a mainstay of the Citys economic base; = and WHEREAS, visitors to the City are particularly dependent on taxicabs for transportation; and WHEREAS, senior citizens who visit or reside in the City are also particularly dependent on taxicabs for transportation; and WHEREAS, taxicab operators must be held to high standards to protect the safety and welfare of visitors, the elderly, and other members of the public; and WHEREAS, California Government Code Section 53075.5 requires every city to adopt taxicab regulations that include: the establishment or registration of taxicab rates, a policy for entry into taxicab businesses with certain requirements, and a drug and alcohol testing certification program for taxicab drivers; and 7 WHEREAS, the Citys existing laws regulating taxicab businesses are contained in = Santa Monica Municipal Code Chapter 6.48; and WHEREAS, the Citys existing laws regulating taxicab businesses do not contain = the provisions required by California Government Code Section 53075.5, NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. Section 6.48.031 is hereby added to the Santa Monica Municipal Code to read as follows: Section 6.48.031Registration of taxicab rates required . All persons applying for a business license in compliance with Section 6.48.030 of this Code shall simultaneously file with the City a schedule of taxicab rates for carrying passengers. No person shall conduct any vehicle for hire business without having first filed such a schedule. All such license holders shall thereafter at all times keep on file with the City an up-to-date schedule. No driver of any vehicle for hire shall, and no employer shall allow any driver to, charge a greater sum for the use of a vehicle than the rate listed on the schedule filed with the City. SECTION 2. Section 6.48.040 of the Santa Monica Municipal Code is hereby amended to read as follows: 8 Section 6.48.040Driver Permit requiredPolice permit required. No person shall drive any vehicle for hire without having first obtained a permit/photo badge for each cab company for which he or she is driving from the City's License Office. Such permit shall expire on June 30th each year, unless revoked, suspended or cancelled prior to such date. Authorization for such permit/photo badge and badge must first be obtained from the Police Department in the form of a permit/photo badge. The Police Department may require information pertaining to the character and background of the permittee. Upon receipt of the applicable police permit/photo badge fee and issuance of a police permit to applicant, the Police Department shall issue a permit/photo badge to the applicant. Application. (a) No person shall drive a vehicle for hire to pick up or attempt to pick up passengers, and no person who owns or controls any such vehicle for hire shall allow any vehicle for hire to be so used, unless the driver has a valid Police Permit issued under the provisions of this Section for each taxicab company for which he or she is driving. In order to obtain a Police Permit, each person shall file with the Citys License Office, upon = forms supplied by the City, a verified application containing the following information: (1) Name and address of applicant; (2) Convictions, if any, in any court of law; (3) Certification of the owner by whom he or she is to be 9 employed as a driver in the City; (4) Proof of a valid California Drivers License; = (5) A signed agreement to submit to a background investigation and fingerprinting by the Police Department; (6) Test results from a certified laboratory or testing agency, submitted simultaneously with the applicants verified application, proving = that the applicant has tested negative for drugs and alcohol as provided by Section 53075.5(b)(3) of the California Government Code; and (7) Such further information as the City may require. Permit applicant investigation. (b) The Police Department shall conduct an investigation of each applicant for a Police Permit and shall indicate its approval on the application or, if disapproved, the reason therefor. The Police Department may disapprove any applicant who has a record of criminal conduct or other behavior involving any of the following: (1) Moral turpitude; (2) Violence toward persons or property; (3) Physical or mental disease which could make the applicant a danger to the safety of others; (4) Illegal sexual conduct involving another nonconsenting person; (5) Negligent or reckless driving; (6) Operating a motor vehicle while under the influence of 10 alcohol or drugs; or (7) Acts showing the applicant to be otherwise incompetent or not fit to drive a vehicle for hire. Permit issuance. (c) The Police Department shall, upon consideration of the application and investigation, approve or deny the Police Permit. No Permit shall be issued to any person under the age of eighteen years, where any false statement appears in the application, or if the application is otherwise incomplete. Upon approval of an application and receipt of the applicable fees, the Police Department shall issue a Police Permit to the applicant. The Permit shall bear the name and photograph of the applicant, date of expiration of the Permit, and the name of the taxicab company for which the driver is authorized to drive a vehicle for hire. The Police Departments = decision to approve or deny the Police Permit shall be final and shall not be appealable to the City Council or to any other City body or official. Permit expiration. (d) A Police Permit shall expire on June 30 of each year, unless revoked, suspended, or terminated prior to that date. A Police Permit which has not been revoked, suspended, or terminated may be renewed annually by paying the appropriate fee and by filing with the City, on forms supplied by the City, a verification that the driver is in compliance with the provisions of this Section, and test results from a certified laboratory or testing agency proving that the applicant has tested negative for drugs 11 and alcohol as provided by Section 53075.5(b)(3) of the California Government Code. Effect of termination of employment. (e) Each Police Permit shall be in force and effect only while the holder thereof is employed as a driver by the taxicab company indicated on the Police Permit. Upon termination of a drivers employment, the owner by whom such driver has been employed, = shall immediately give the City written notice of the termination, and the terminated driver shall immediately return the Police Permit to the City. Grounds for suspension and revocation. (f) Any Police Permit issued under the provisions of this Section, and any business license issued under Section 6.48.030, may be suspended or revoked for any of the following reasons: (1) Violation of any provision of this Section by a holder or employer of the holder of such Permit; and (2) The existence of any facts which would have been good reason to deny such Permit when applied for, regardless of when such facts arose. SECTION 3. Section 6.48.140 of the Santa Monica Municipal Code is hereby added to read as follows: Section 6.48.140Penalty for Violation. 12 Any person violating any provision of this Chapter shall be guilty of an infraction, which shall be punishable by a fine not exceeding two hundred fifty dollars, or a misdemeanor, which shall be punishable by a fine not exceeding one thousand dollars per violation, or by imprisonment in the County Jail for a period not exceeding six months, or by both such fine and imprisonment. SECTION 4. Any provision of the Santa Monica Municipal Code or appendices thereto inconsistent with the provisions of this Ordinance, to the extent of such inconsistencies and no further, is hereby repealed or modified to that extent necessary to effect the provisions of this Ordinance. SECTION 5. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed this Ordinance and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of the ordinance would be subsequently declared invalid or unconstitutional. SECTION 6. The Mayor shall sign and the City Clerk shall attest to the passage of 13 this Ordinance. The City Clerk shall cause the same to be published once in the official newspaper within 15 days after its adoption. This Ordinance shall become effective 30 days from its adoption. APPROVED AS TO FORM: _________________________ MARSHA JONES MOUTRIE City Attorney 14