REPORT TO COUNCIL
SUBJECT
Title
Action on the Introduction of an Ordinance Amending Chapter 5.35 ("Taxicabs") of the Code of the City of Santa Clara to revise taxicab permitting and operational requirements establish new permit and operational requirements for pedi-cabs
Report
BACKGROUND
Chapter 5.35, titled Taxicabs, of the City of Santa Clara's Municipal Code (Municipal Code) governs transportation services by taxicabs within the City. This Ordinance contains requirements for licensing, the application and renewal process, grounds for denial or suspension, vehicle inspections, fares, insurance, equipment and conditions, safety inspections, etc.
In 2011, rideshare companies (e.g. Uber, Lyft, Curb, Hailo, Sidecar, etc.) introduced into the transportation market the hiring of an on-demand private driver, which disrupted the taxi industry. As a result of the greater regulations facing the taxi industry as compared with its rideshare competitors, the California Legislature passed several bills. On October 13, 2017, Assembly Bill 1069 was chaptered, and was amended on September 5, 2018, by Assembly Bill 939 (AB 939). AB 939 will be chaptered in early October, after introduction but prior to adoption of this proposed ordinance. These two bills taken together amended Sections 53075.5, 53075.51, and 53075.52 of the Government Code, relating to local government regulations of taxicab businesses. Through these two bills, and the amendments thereto, the California Legislature has provided further clarification regarding the new permitting and regulating requirements.
Under the new law, which will be effective January 1, 2019, cities or counties are required to regulate a taxicab company or driver, if the company or driver is substantially located in one jurisdiction. In addition, taxi companies are only required to obtain a permit from one jurisdiction within the county in which they operate and all jurisdictions within that county are required to accept that ...
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