REPORT TO COUNCIL
SUBJECT
Title
Introduce an Ordinance Amending Chapter 5.36 (Taxicabs) of the Sunnyvale Municipal Code to Comply with State Law (AB 1069 and AB 939) and to Make Minor Operational Revisions
BACKGROUND
Sunnyvale Municipal Code (SMC) Chapter 5.36 (Taxicabs) regulates taxicab franchises to promote driver and passenger safety and risk reduction. On February 9, 2016, Council approved revisions to SMC Chapter 5.36 as recommended by staff (RTC No. 15-1104). The recommended revisions were the result of a study issue and consultant report that addressed the impact of ride-sharing businesses on the taxicab industry. At that time, staff acknowledged that the transportation industry would continue to evolve, and advised that staff would continue to monitor regulatory changes to this industry, both locally and throughout the state.
In October 2017, the State of California enacted into law Assembly Bill 1069 (AB 1069, Low), a bill that redirected regulatory authority for taxicabs from individual cities and towns to counties and regional authorities, establishing a statewide regulatory scheme for driver eligibility and vehicle safety by amending Section 53075.5 of the Government Code, adding sections 53075.51, 53075.52 and 53075.53 of the Government Code, and amending Section 1808.1 of the Vehicle Code. In September 2018, the State of California enacted Assembly Bill 939 (AB 939, Low) to additionally clarify portions of AB 1069. These laws take effect on January 1, 2019.
Previously, state law required every city or county to adopt a resolution or ordinance regarding taxicab transportation service. Taxicab companies and drivers were subject to the local laws of each city in which they operated, requiring multiple licenses and fees for each jurisdiction where they provided taxicab services. This model created barriers for market entry and made it difficult for taxicab companies to compete with other for-hire modes of transportation like Uber and Lyft.
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