O2370City Council Meeting 10 -11 -2011 Santa Monica, California
ORDINANCE NUMBER 2370 (CCS)
(City Council Series)
AN ORDINANCE OF THE CITY COUNCIL
OF THE CITY OF SANTA MONICA AMENDING
CHAPTERS 6.48 AND 6.49 OF ARTICLE VI OF THE SANTA MONICA
MUNICIPAL CODE REGARDING VEHICLES FOR HIRE
WHEREAS, for years, it has been a common practice in the City for owners and
operators of hotels, motels, and other business establishments to have arrangements
for compensation with taxicab or other vehicle for hire companies to ensure privileged
access to customers, and for employees and agents of such establishments to demand,
solicit, and accept, and for taxicab or other vehicle for hire drivers to offer and pay,
compensation in exchange for such privileged access; and
WHEREAS, this practice fosters unfair competition and an unfair working
environment for companies and drivers, and imposes financial hardships on drivers,
which results in less courteous and efficient service to the public because of a negative
incentive to recoup payments from the public by increasing overcharges, using
circuitous routes, or other discourteous behavior, and is thereby detrimental to the
public health, safety, and general welfare; and
WHEREAS, the taxicab rules and regulations adopted by the Santa Monica
Police Department pursuant to Santa Monica Municipal Code Section 6.49.020 prohibit
taxicab franchisees from entering into any arrangements or agreements for
compensation with any hotel, motel, or other business establishment, public or private
agency, or organization in the City; and
WHEREAS, the taxicab rules and regulations also prohibit taxicab drivers from
offering or paying any bribe or gratuity to any employee or agent of a hotel, motel, or
other business establishment, public or private agency, or organization in the City, for
privileged access to passengers at the hotel, motel, or other business establishment,
public or private agency, or organization in the City; and
WHEREAS, the foregoing rules were adopted to combat discrimination by
businesses against taxicab companies and drivers, to ensure equal competition and
equal access to passengers, to prevent negative impacts on driver income, to facilitate
more efficient taxicab services, and to improve customer service; and
WHEREAS, notwithstanding the foregoing rules, the prevailing practice among
owners, operators, employees, and agents of a hotel, motel, or other business
establishment to solicit, demand, and accept payment from taxicab franchisees and
drivers in exchange for privileged access to passengers continues unabated; and
WHEREAS, taxicab franchisees and drivers who refuse to provide such
compensation (commonly referred to as "kickbacks" or "cookies "), in compliance with
the foregoing rules, are consistently refused access to passengers or even access to
business premises that provide a taxicab stand or hack stand; and
WHEREAS, based on the foregoing, it is necessary to prohibit the practice of
kickbacks and discrimination against companies and drivers with respect to access to
passengers and to premises that provide a hack stand, in order to promote fair
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competition, equal opportunities, and more efficient service to the public, which will in
turn promote the public health, safety, and general welfare; and
WHEREAS, since the implementation of the taxicab franchise program, there
has been an increase in the number of charter -party carriers registered with the Public
Utilities Commission that operate within the City, requiring modification to the definition
of a "vehicle for hire" under the Santa Monica Municipal Code in order to apply
reasonable local regulations on charter -party carriers of passengers other than
limousines operating within the City, as authorized by Public Utilities Code Section
5371.4; and
WHEREAS, since the implementation of the taxicab franchise program, certain
responsibilities in the administration and management of vehicles for hire have shifted
to City departments different from those designated in Chapter 6.48 of Article VI of the
Santa Monica Municipal Code; and
WHEREAS, the City strives to establish a clear, fair, effective, and
administratively efficient system for regulating vehicles for hire;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA
DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. Section 6.48.010 of Chapter 6.48 of Article VI of the Santa Monica
Municipal Code is hereby amended as follows:
As used in this Chapter, the phrase "vehicle for hire" includes taxicabs, charter -party
carriers of passengers other than limousines as defined in the Public Utilities Code, and
every automobile or motor - propelled vehicle used for transportation of passengers within
and without the boundaries of the City not over a defined route, at rates per mile, per trip,
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per hour, per day, per week or per month. Vehicles leased or rented for a period of time to
be driven by the lessee or his or her designee are not included.
SECTION 2. Section 6.48.040 of Chapter 6.48 of Article VI of the Santa Monica
Municipal Code is hereby amended as follows:
Before any license is issued or renewed, the owner of the vehicle for hire shall be
required to file proof of insurance with the Finance Department in the amount specified in
the rules and regulations adopted pursuant to Chapter 6.49. This policy must insure the
public against any loss or damage that may result to any person or property from the
operation of such vehicle. No person shall operate any such vehicle without having a policy
as described in this Section in full force and effect at all times during the operation of such
vehicle.
SECTION 3. Section 6.48.050 of Chapter 6.48 of Article VI of the Santa Monica
Municipal Code is hereby amended as follows:
Vehicles for hire shall be operated by the owner or by an employee or authorized
agent of the owner.
SECTION 4. Section 6.48.065 is hereby added to Chapter 6.48 of Article VI of the
Santa Monica Municipal Code as follows:
6.48.065 Compensation to gain access to passengers.
(a) No person shall offer, pay or agree to pay any consideration, either monetary
or non - monetary, to any owner, operator, employee or agent of any hotel or any other
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business establishment for recommending or directing any passenger, who does not have
a reservation made on a prearranged basis, to ride in a specific vehicle for hire or to a
specific vehicle for hire company.
(b) No owner, operator, employee or agent of any hotel or any other business
establishment shall solicit, demand, accept or agree to accept any consideration, either
monetary or non - monetary, or enter into any vehicle for hire service arrangement or
agreement for recommending or directing a passenger, who does not have a reservation
made on a prearranged basis, to ride in a specific vehicle for hire orto a specific vehicle for
hire company.
(c) No owner, operator, employee or agent of any hotel or any other business
establishment shall offer, pay or agree to pay any vehicle for hire company or driver in
exchange for the company or driver recommending or directing a passenger, who does not
have a reservation made on a prearranged basis, to a business establishment operated by
a specific owner or operator
(d) Nothing in this Section prohibits the passenger of a vehicle for hire from tipping
or paying a gratuity to the driver of a vehicle for hire, or to an employee or agent of a hotel
or other business establishment.
SECTION 5. Section 6.49.095 is hereby added to Chapter 6.49 of Article VI of the
Santa Monica Municipal Code as follows:
6.49.095 Access to passengers on business establishment premises.
No owner, operator, employee or agent of any hotel or any other business
establishment shall exclude any taxicab driver operating pursuant to a franchise awarded
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by the City from standing or picking up passengers at any taxicab stand, hack stand, or
other location where taxicabs or other vehicles for hire are regularly allowed to stand and
pick up passengers on the premises of the hotel or other business establishment.
SECTION 6. 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 7. 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.
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SECTION 8. The Mayor shall sign and the City Clerk shall attest to the passage of
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:
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Approved and adopted this 11th day of October, 2011.
Richard Bloom, Mayor
State of California )
County of Los Angeles ) ss.
City of Santa Monica )
I, Denise Anderson - Warren, Acting City Clerk of the City of Santa Monica, do
hereby certify that the foregoing Ordinance No. 2370 (CCS) had its introduction
on September 27, 2011, and was adopted at the Santa Monica City Council
meeting held on October 11, 2011, by the following vote:
Ayes: Council members: Holbrook, O'Connor, O'Day, McKeown, Shriver
Mayor Pro Tern Davis, Mayor Bloom
Noes: Council members: None
Absent: Council members: None
A summary of Ordinance No. 2370 (CCS) was duly published pursuant to
California Government Code Section 40806.
ATTEST:
Denise Anderson - Warren, Acting City Clerk