SR 10-10-2023 5A
City Council
Report
City Council Meeting: October 10, 2023
Agenda Item: 5.A
1 of 1
To: Mayor and City Council
From: Douglas Sloan, City Attorney, City Attorney's Office, Administration
Subject: Second Reading and Adoption of an Ordinance Amending Santa Monica
Municipal Code Chapter 6.49 on Taxicabs to Transition from Taxicab
Franchises to Taxicab Permits
Recommended Action
Staff recommends that the City Council adopt the attached Ordinance.
Executive Summary
At its meeting on September 26, 2023, the City Council introduced for first reading an
Ordinance amending the text of Santa Monica Municipal Code Chapter 6.49 on
Taxicabs to transition from taxicab franchises to taxicab permits. The ordinance is now
presented to the City Council for adoption.
Prepared By: Bradley Michaud, Principal Legal Analyst
Approved
Forwarded to Council
Attachments:
A. ORD-6.49 Taxicab Permit 2d
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City Council Meeting: October 10, 2023 Santa Monica, California
ORDINANCE NUMBER _________ (CCS)
(City Council Series)
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA
AMENDING SANTA MONICA MUNICIPAL CHAPTER 6.49 TO TRANSITION TAXICAB
REGULATIONS FROM A FRANCHISE-BASED SYSTEM TO A PERMIT-BASED
SYSTEM
WHEREAS, the City of Santa Monica’s (“City”) taxicab franchise was established
by Council in June 2009 due to the influx of the number of taxicabs within the City and
complaints pertaining to poor customer service from drivers; confusing and high fees; lack
of discounted services for seniors and residents with disabilities; and “bandit” taxis; and
WHEREAS, the City’s one existing franchise with a taxicab company expires on
December 31, 2023; and
WHEREAS, with the changing nature of the taxicab industry due in part to the rise
in the use of Transportation Network Companies (“TNCs”) for ride-hailing services, staff
recommends that the City shift from a franchise program for regulating taxicabs to a
system that is permit-based.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA
DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. Chapter 6.49 of the Santa Monica Municipal Code is hereby
amended as follows:
6.49.010 Definitions.
For the purposes of this Chapter certain words and phrases are defined and certain
provisions shall be construed as herein set forth, unless it is apparent from the context
that a different meaning is intended.
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(a) Taxicab. “Taxicab” means every automobile and motor-propelled vehicle which
is not otherwise licensed by the California Public Utilities Commission, is designed to
carry not more than eight persons, excluding the driver, is not otherwise required by State
Law to have all trips prearranged, and is used for the transportation of passengers for
hire within and without the boundaries of the City, at rates for distance traveled, or for
waiting, standby or traffic delay time, or for any combination of such rates, and not
operating over a defined route.
(b) Taxicab Company Permittee or Permittee. “Taxicab company permittee” or
“permittee” means any person, firm, corporation, or other entity, however organized,
including the management and officers thereunder, that is substantially located in and
has been granted a permit by the City to provide taxicab transportation services.
(c) Taxicab Driver. “Taxicab driver” means a driver who works for a taxicab
company permittee or is a self-employed, independent taxicab company permittee,
unless the context indicates otherwise.
(d) Taximeter. “Taximeter” means any device or technology that automatically
calculates a predetermined rate or rates for taxicab services and indicates the charge for
the hire of a taxicab, including Internet, web, or other network-based applications.
Taximeters may use global position system metering and also facilitate flat rates or
promotional rates.
6.49.020 Authority of designated employees of the Police Department to have
access to summary criminal history information.
Police Department employees assigned to or having responsibility for permitting
and licensing pursuant to this Chapter shall have the authority to obtain State and local
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summary criminal history information pursuant to Sections 11105(b)(11) and
13300(b)(11) of the California Penal Code.
6.49.030 Taxicab company permit— application for permit.
(a) Prior to commencing the operation of taxicab services within the City, a taxicab
company shall apply for and obtain a permit in accordance with the provisions of this
Chapter. In order for a taxicab company to be eligible for a permit, the taxicab company
must provide documentation of the following consistent with applicable State law, this
Chapter, and the City’s requirements: (1) the taxicab company is substantially located in
the City; (2) established fares, fees, or rates to be charged to the customer; (3)
participation in the pull-notice program; (4) financial responsibility; (5) a safety and
disabled access education and training program; (6) the motor vehicles to be used for
taxicab transportation services are in safe operating condition and have passed
inspection by the City; (7) the address of an office or terminal where all documents
pertaining to taxicab transportation services may be inspected by the City; and (8)
provision of a taxicab driver fingerprint-based criminal history check and a mandatory
drug and alcohol testing program.
(b) Taxicabs may be driven pursuant to a contract, agreement, or understanding
between the taxicab company permittee and the driver. Such contract, agreement, or
understanding shall not relieve the taxi company permittee from full and complete
compliance with the applicable provisions of the Code, rules and regulations adopted
pursuant to this Chapter.
6.49.040 Taxicab company permit —Suspension or revocation.
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(a) Suspension. The City may, after due notice and an opportunity to be heard,
suspend a taxicab company’s operations for one or more days if, in the judgment of the
City, a lapse in required insurance or any other violation of this Chapter; or a violation of
any administrative rules and regulations established by the City, orders or directives
established by the City, or applicable State law, creates an immediate safety hazard.
Cause for suspension also exists where the holder of a majority interest in the taxicab
company or the taxicab company permittee illegally conducts any type of vehicle for hire
or public transportation operation licensed by the City or any other governmental agency,
or the permittee fails to pay any monetary penalties in accordance with this Chapter or
any resolutions or schedules adopted thereto.
(b) Revocation. The City may, after due notice and an opportunity to be heard,
revoke a permit in the event that the permittee, including its employees, officers, agents
and drivers: violates this Chapter; violates subsection (d) of this Section; violates or
commits multiple violations of any provision of this Chapter or any other law, rule,
regulation, order or filings of any regulatory body having jurisdiction over the permittee;
or practices, or attempts to practice, any fraud or deceit upon any governmental agency
or regulatory body.
(c) The permittee may appeal any decision from the City to suspend or revoke to
a Hearing Examiner for consideration pursuant to this Section. The matter will be set for
a hearing and the City shall give the permittee at least thirty days’ written notice of the
time and place of the hearing. At the hearing, the Hearing Examiner shall consider all
relevant evidence and testimony and if supported by a preponderance of the evidence,
the Hearing Examiner may, in his or her discretion, order the permittee to take remedial
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actions or impose any other remedy as authorized by law, including, but not limited to,
suspension for a designated period of time; or revocation of the permit. The decision or
order of the Hearing Examiner shall be final and binding and subject only to judicial
review.
(d) Effect of Suspension or Revocation. Upon suspension or revocation of a
permit, all the company permittee’s taxicab operations in the City shall cease until such
time as the suspension or revocation is lifted. Upon revocation of any taxicab permit, no
permit to operate the same business activity shall be granted to the permit for a period of
three years thereafter.
6.49.050 Taxicab company permit —Driver’s permit.
(a) Application. In order to obtain a taxicab driver’s permit, each person shall file
with the City, upon forms supplied by the City, a completed verified application including
the following information and documentation:
(1) Name, address, and age of applicant;
(2) Convictions, if any, in any court of law;
(3) Name, address, and certification of the taxicab company permittee by whom
the applicant is to be employed as a taxicab driver in the City;
(4) Proof of a valid California driver’s license;
(5) A signed agreement to submit to a background investigation and fingerprinting
via LiveScan capture by the Police Department;
(6) Original test results from a certified laboratory or testing agency, submitted
simultaneously with the applicant’s verified application, proving that the applicant has
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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, as established by the rules
and regulations.
(b) Taxicab Driver’s Permit Applicant Investigation. The Police Department shall
investigate each applicant for a taxicab driver’s permit and shall approve the application
or state its reason for disapproval. The City 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 alcohol or drugs;
(7) Three or more moving violations under the California Vehicle Code within the
12-month period preceding the date of the application;
(8) Existing suspension or revocation of a taxicab driver’s permit in any other
jurisdiction as of the date of the application;
(9) Conviction of operating a taxicab without a valid taxicab driver’s permit or
taxicab vehicle permit within the three-year period preceding the date of the application;
or
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(10) Acts showing the applicant to be otherwise incompetent or not fit to drive a
taxicab.
(c) Taxicab Driver’s Permit Issuance. Based on the application, investigation and
compliance with all requirements of Section 53075.5(b)(3) of the California Government
Code, the City shall approve or deny the taxicab driver’s permit. No taxicab driver’s permit
shall be issued if the applicant is under the age of eighteen years, if any false statement
appears in the application, or if the application is otherwise incomplete. Upon approval of
an application and receipt by the City of the taxicab driver’s permit fee, the City shall issue
a taxicab driver’s permit to the applicant. The taxicab driver’s permit shall bear the name
and photograph of the applicant, date of expiration of the taxicab driver’s permit, and
name of the taxicab company permittee for which the driver is authorized to drive a
taxicab.
(d) Taxicab Driver’s Permit Renewal. A taxicab driver’s permit which has not been
revoked, suspended, or terminated may be renewed annually by paying the annual
taxicab driver’s permit fee and by filing with 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 driver has tested negative for drugs and alcohol as
provided by Section 53075.5(b)(3) of the California Government Code and U.S.
Department of Transportation program guidelines set forth in 49 CFR Parts 40, 653, and
654, and any other applicable regulations.
(e) Effect of Termination of Employment. The taxicab driver’s permit shall become
void upon termination of employment, at which time the taxicab company permittee shall
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immediately give the City written notice of the termination and the terminated driver shall
immediately return their taxicab driver’s permit to the City.
(f) Prohibition on Transfers. A taxicab driver’s permit is personal in nature and
shall not be transferred to another person. Any purported transfer shall be null and void.
(g) Grounds for Suspension and Revocation. Any taxicab driver’s permit and any
taxicab vehicle permit may be suspended or revoked, after due notice and an opportunity
to be heard, for any of the following reasons:
(1) Arrest or citation for the commission of any crime while driving a taxicab or any
crime involving moral turpitude;
(2) Violation of any applicable rule or regulation, or Federal, State or local law
relating to the operation of taxicabs by a driver, or by an employer in the case of a taxicab
vehicle permit;
(3) Use of the taxicab driver’s permit for a purpose different from that for which it
was issued;
(4) Suspension or revocation of the driver or taxicab company permittee’s taxicab
driver’s permit or taxicab vehicle permit in another jurisdiction; and
(5) The existence of any facts, including conviction of a crime that is substantially
related to the qualifications, functions or duties of a taxicab driver, which would have been
good cause to deny such taxicab driver’s permit application, regardless of when such
facts arose.
6.49.060 Taxicab permit —Fees.
(a) Annual Taxicab Company Permit Fee. Each taxicab company permittee shall
pay to the City an annual fee, established by resolution of the City Council, to cover the
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City’s costs of administering taxicab transportation services in the City. Such payment
shall be in addition to any other prescribed fees, including but not limited to, business
license fees. The taxicab company permit fee shall be due, without set off or deduction,
upon issuance of the taxicab company permit and payable on each anniversary date
thereafter, unless otherwise as specified in the franchise ordinance. Failure to pay the full
taxicab company fee when due shall be cause for revocation of the taxicab company
permit.
(b) Annual Taxicab Vehicle Permit Fee. Each taxicab company permittee shall be
required annually to obtain a taxicab vehicle permit and to pay to the City an annual
taxicab vehicle permit fee, established by resolution of the City Council, for each taxicab
operating under its taxicab company permit.
(c) Annual Taxicab Driver’s Permit Fee. Each taxicab driver shall be required
annually to renew his or her taxicab driver’s permit and the taxicab permittee or driver
shall pay to the City an annual taxicab driver’s permit fee, established by resolution of the
City Council.
(d) No fee refunds shall be issued to any taxicab company permittee upon
revocation of a, or to any driver upon revocation of a taxicab driver’s permit.
6.49.070 Taxicab company permittee —Signage.
Taxicab company permittees and taxicab drivers shall ensure that taxicabs display
the following signage:
(a) Two cards not less than two inches by four inches nor more than two and one-
half inches by five inches, in both the front seat and the rear seat in full view of
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passengers, which state the following in letters and numbers which are clearly legible and
in the following format:
(1) On the first card: the name, address and telephone number of the taxicab
franchisee which operates the taxicab and all rates to be charged; and
(2) On the second card: “COMPLAINTS? Call the City of Santa Monica’s Hotline,”
followed by the City’s hotline telephone number.
(b) Every taxicab shall have printed upon it, in lettering and numbering not less
than two and one-fourth inches in height and five-sixteenths of an inch wide, the cab
number and the name and telephone number of the taxicab company permittee which
operates the taxicab. The telephone number and the cab number shall also be printed in
a plainly visible manner upon the rear of such vehicle.
(c) Every taxicab may have an electrically lighted identification or vacant sign, or
a combination of both, attached to the top of such taxicab, which shall be not more than
two and one-half inches high by nine inches in length.
(d) No taxicab shall display any sign other than those authorized in this Chapter.
6.49.080 Taxicab company permit —Identification decal required.
(a) Each taxicab operated pursuant to a permit shall be identified as a City of
Santa Monica authorized taxicab by a taxicab identification decal issued by the City. No
person shall identify any vehicle by means of such taxicab identification decal, or any
facsimile thereof, unless authorized to do so by the City in writing.
(b) Every taxicab driver and permittee shall ensure that a taxicab identification
decal is displayed in each taxicab at all times. Such decal shall be issued and affixed by
the City to a specific area on the assigned taxicab as designated by the City.
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(c) No taxicab driver or taxicab company permittee shall operate a taxicab without
a current taxicab identification decal for that specific vehicle.
(d) No taxicab identification decal issued shall be in any manner transferred or
assigned. Any decal that is transferred, assigned, or otherwise conveyed or stolen shall
be automatically revoked.
(e) No applicant may be issued a taxicab identification decal until that applicant
has paid all applicable fees and all of his, her or its outstanding parking citations, including
all civil penalties and related fees.
6.49.090 Taximeters and rates.
(a) No taxicab shall be operated within the City unless it is equipped with a
taximeter that is approved by the California Division of Measurement Standards and
complies with Section 12500.5 of the California Business and Professions Code and with
all regulations established pursuant to Section 12107 of the California Business and
Professions Code.
(b) Taximeters are subject to inspection at any time by any police officer of the
City or any other authorized inspector, including the California Department of Agriculture
Commissioner/Weights and Measures. Any vehicle equipped with an inaccurate
taximeter is subject to impound until said taximeter shall have been correctly adjusted,
inspected, and certified by the Los Angeles County Agricultural Commissioner/Weights
and Measures.
(c) Taximeters shall be placed so that the reading dial displaying the amount to
be charged is readily discernible by passengers.
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(d) All rates to be charged for transportation by taxicabs pursuant to a permit,
including both flat and mileage rates, may not exceed the maximum rates established by
resolution of City Council. No permittee shall charge, collect, demand, receive, or arrange
for any compensation for taxicab service in an amount that exceeds said maximum rates.
(e) Each taxicab company and taxicab driver shall disclose all rates to the
customer before providing taxicab services.
(f) Except where a flat rate is applicable, it is unlawful for a taxicab driver to do
any of the following:
(1) Set the taximeter in operation when such vehicle is not actually hired;
(2) Fail to set the taximeter to a nonrecording position at the termination of each
and every service or call the attention of the passenger to the amount registered;
(3) Fail to activate the taximeter while carrying passengers or under hire; or
(4) Activate or operate the taximeter so as to denote a rate of fare exceeding that
authorized pursuant to this Chapter or by the permitting governmental agency.
(g) No driver of any taxicab upon receiving payment of a fare thereon shall refuse
to give a receipt upon the request of any passenger making said payment.
(h) It shall be unlawful to charge a discounted or flat rate other than that which has
been advertised or agreed to in advance with the passenger. (Added by Ord. No.
2590CCS, adopted 11/13/18)
6.49.100 Intentionally Left Blank
6.49.110 Taxicab identification and vehicle operating requirements.
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(a) No taxicab company shall operate any taxicab without a distinctive and uniform
color scheme or identification which designates the taxicab company under which said
vehicle is operated.
(b) No taxicab company shall use any color scheme, insignia, name, monogram,
logo, or identification that conflicts with or imitates any color scheme, insignia, name,
monogram, logo, or identification used by another taxicab company in such a manner as
to be misleading or to tend to confuse or defraud the public.
(c) Every taxicab company and taxicab driver shall comply with the following
operating requirements at all times:
(1) Maintain and keep an accurate and legible record of all passengers carried,
including the pickup and drop off points, the date and time carried, the starting and ending
mileage of the taxicab for each trip, and the charges authorized and made for each trip;
(2) Display inside the taxicab and in full view of passengers, a valid taxicab driver’s
permit bearing the name and photograph of the taxicab driver and identifying the name
of the taxicab company under which such taxicab is operated;
(3) Maintain in each taxicab a working two-way communication system with a
dispatcher;
(4) Obtain an annual vehicle inspection of each taxicab at a facility certified by the
National Institute for Automotive Service or a facility registered with the Bureau of
Automotive Repair; and
(5) Permit any police officer of the City or other authorized enforcement officer
enforcing this Chapter to inspect any taxicab upon request.
6.49.120 Full use of taxicab.
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When a taxicab is engaged the occupant or occupants shall have the exclusive
right to the full and free use of the passenger compartment and no owner or driver of said
taxicab shall solicit or carry additional passengers therein without soliciting and receiving
the consent of the occupant or occupants. Nothing in this provision is intended to restrict
any taxicab company from offering carpooling or ride sharing services.
6.49.130 Access to passengers on business establishment premises; exclusive
arrangements limited.
(a) No owner, operator, employee or agent of any hotel or any other business
establishment shall exclude any permitted taxicab driver from standing or picking up
passengers at any 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.
(b) Each taxicab company permittee is prohibited from entering into any taxicab
service arrangements or agreements for compensation with any hotel, motel, or other
business establishments, or any public or private agency or organization in the City for
the purpose of obtaining exclusive access to the business’ patrons seeking on demand
taxicab services. Each taxicab company permittee shall ensure that none of its members
or taxicab drivers enters into any such taxicab service arrangements or agreements for
compensation with any hotel, motel or other business establishments, or any public or
private agency or organization in the City. Nothing in this Section prohibits exclusive
arrangements with any business establishment for the purpose of providing pre-arranged
transportation services for events with multiple participants, employee shuttle services,
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carpooling services, or other arrangement approved in advance by the City to the extent
consistent with the requirements of this Chapter.
6.49.140 Unauthorized taxicab services prohibited; exception.
(a) No person shall knowingly dispatch a vehicle or respond to a request for a
“taxi,” “cab” or “taxicab” for pick-up within the City, or pick up passengers within the City
for taxicab services, unless the vehicle has a valid taxicab vehicle permit, the driver of
such vehicle has a valid taxicab driver’s permit, and the taxicab is operated pursuant to
this Chapter.
(b) Notwithstanding subsection (a) above, a taxicab company or taxicab driver that
is lawfully permitted by a governmental agency to operate in Los Angeles County may
provide prearranged trips anywhere within the City.
(c) No person who drives or operates a taxicab in the City shall publish, advertise
or broadcast in any manner, written or oral, a telephone number, website address, or
other identifier, either by itself or connected to a rotary, redirect, or call forwarding system
for taxicab service, which is the same telephone number, website address, or other
identifier, as that for other taxicabs or vehicles for hire.
(d) No person who drives or operates a taxicab in the City shall use a name that
imitates a name used by another person who drives or operates a taxicab in such a
manner as to be misleading or tend to confuse or defraud the public.
(e) No person shall advertise or otherwise hold itself out as providing taxicab
services within the City, unless such person is operating pursuant to a taxicab company
permit granted by the City or is lawfully permitted by a governmental agency to provide
prearranged trips in the City.
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6.49.150 Rules and regulations.
The Director of Transportation or designee is authorized to adopt administrative
rules and regulations consistent with this Code and applicable State law necessary to
implement this Chapter. Such rules and regulations may include, but are not limited to,
provisions: governing taxicab service and safety; prescribing limitations, conditions and
qualifications of applicants for vehicle permits and driver permits; stipulating the
responsibilities of taxicab company permittees and their drivers; and pertaining to public
health, safety, and welfare. Violations of the administrative rules and regulations adopted
pursuant to this section shall constitute violations of this Chapter, and shall subject the
violator to the penalties set forth in this Chapter.
6.49.160 Penalty for violation.
(a) Except as otherwise provided in this Chapter, any person violating any
provision of this Chapter shall be guilty of either: (1) an infraction, which shall be
punishable by a fine of one hundred dollars for the first violation, two hundred dollars for
a second violation within one year, and five hundred dollars for a third and subsequent
violations within one year; or (2) 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. Where the
violation is of a continuing nature, each day that the violation continues constitutes a
separate and distinct violation.
(b) Any police officer and other persons authorized by the City to enforce this
Chapter are authorized under Sections 53075.6 and 53075.61 of the California
Government Code, Section 5411.5 of the California Public Utilities Code, Section 21100.4
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of the California Vehicle Code and any other applicable State law, to impound and retain
any vehicle operating within the City as a taxicab without having any valid permits issued
by the City to operate a taxicab service, in violation of this Chapter.
(c) Every person who operates a taxicab and who knowingly and willfully issues,
publishes or affixes, or causes or permits to be issued, published or affixed, any oral or
written advertisement, broadcast or holding out to the public or any portion thereof, in any
manner whatsoever, that the person operates a taxicab company or an individual taxicab
without having any valid permits is guilty of a misdemeanor.
(d) Any person who, after due notice and an opportunity to be heard in accordance
with the provisions of Chapter 6.16, is found to have been operating a taxicab service
within the City without any valid permits may in the City’s discretion be required to pay a
fine of not less than five thousand dollars for each violation, plus any assessments and
interest as authorized by law, as set forth by resolution of the City Council.
(e) The remedies specified in this Section are cumulative and their specification
shall not preclude the use of any other remedy provided by law.
6.49.170 Penalties for violations of rules and regulations.
Any person who violates a rule or regulation adopted pursuant to this Chapter may
be subject to an administrative citation pursuant to Chapter 1.09 of this Code. A taxicab
company shall be responsible for the violation of a rule or regulation by a taxicab driver
operating under that company, and shall be deemed a responsible party within the
meaning of Section 1.09.020 of this Code.
SECTION 2. Any provision of the Santa Monica Municipal Code or appendices
thereto inconsistent with the provisions of this Ordinance, to the extent of such
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inconsistencies and no further, is hereby repealed or modified to that extent necessary to
effect the provisions of this Ordinance.
SECTION 3. 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 4. 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 thirty
days after adoption.
APPROVED AS TO FORM:
_________________________
Douglas Sloan, City Attorney
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