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Earlier editions: 2026-09

Title 5 — BUSINESS TAXES, LICENSES AND REGULATIONS

Clayton Municipal Code Ch. 5.36 Taxicabs

Clayton Municipal Code · 2026-10 edition · updated 2026-10-04 · Clayton

Cite as: Clayton Municipal Code Chapter 5.36 · Text as of 2026-10-04

5.36.010 - Definitions.

"Taxicab" means a motor-propelled passenger-carrying vehicle of a distinctive color or colors and which is of such a public appearance as is customary for taxicabs in common usage in this country, and which is operated at rates per mile or upon a waiting time basis or both, and is equipped with a taximeter, and which motor-propelled vehicle is used for the transportation of passengers for hire over and along public streets, not over a defined route, but as to route and destination in accordance with, and under the direction of the person hiring such vehicle.

"Taximeter" means a mechanical device attached to a vehicle for hire, by means of which device the authorized charge for hire of such vehicle is mechanically calculated on the basis of distance traveled, or for waiting time, or a combination of both, which charges shall be indicated upon such mechanical device by means of figures in dollars and cents.

"Operator" means every person in charge of, or driving, any taxicab as defined in this chapter, either as owner or employee or under the direction of owners or employees.

"Owner" means every person who in any manner has the proprietary use, ownership or control of any taxicab.

"Owner-Operator" means an owner who is also an operator of a taxicab or taxicabs.

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5.36.020 - Owner and operator permits required.

It is unlawful for any person to engage in the business of operating any taxicab company, where passenger pick-up is within the City of Clayton (herein "City"), without first obtaining an owner's permit from the Clayton Police Department (herein "Police Department"). It is unlawful for any person to drive a taxicab, where passenger pick-up is within the city, without first obtaining an operator's permit from the police department. All permits shall be non-transferable.

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5.36.030 - Application for Permit.

Any person desiring to own or operate a taxicab shall first make an application for a permit by filing with the police department a sworn application in writing on a form to be furnished by the police department which shall give the following information. The application shall be accompanied by a permit fee as set forth below. An owner-operator may make a single application and pay a single fee.

A. Name, residence and telephone number;

B. The previous address of the applicant during the five (5) years immediately prior to the present address of the applicant;

C. California driver's license and number and any other driver's license held during the last five (5) years identified by driver's license number, issuing jurisdiction and dates held;

D. Birth certificate or other written proof acceptable to the police department that the applicant is at least eighteen (18) years of age;

E. Fingerprints (taken by the police department for criminal history investigation);

F. Business, occupation or employment of the applicant for the five (5) years immediately preceding the date of application;

G. Any City or County business license and permit history of the applicant, including a list of other jurisdictions in which the applicant holds a current owner's or operator's permit; whether such person, in previously operating in this or another city or state, under license or permit has had such license or permit revoked or suspended, the reason therefor, and the business activity or occupation subsequent to such action of suspension or revocation;

H. Owner or owner-operator applications shall also include: name, residence and telephone number, license number, make, model and year of all vehicles the applicant proposes to operate, the location of any proposed depots and offices, and the color scheme or insignia to be used to designate the vehicle or vehicles of the applicant.

  1. Whether such person has ever been convicted of any crime, except misdemeanor traffic violations. If any person mentioned in this subsection has been so convicted, a statement must be made giving the place and court in which such conviction was had, the specific charge under which the conviction was obtained and the sentence imposed as a result of such convection;

  2. Such other identification and information necessary to discover the truth of matters specified in this Section as required to be set forth in the application;

I. The application will also include a separately signed waiver and release authorizing the City of Clayton, its agents, and employees to seek information and to conduct an investigation into the truth of the statements made on the application and the qualifications and record of the applicant.

J. The applicant shall provide two (2) passport size photos taken within the last thirty (30) days.

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5.36.035 - Controlled Substance Testing.

No application for a new or renewed operator's permit shall be accepted without proof that the applicant has tested negative for controlled substances as set forth in Government Code § 53075.5 (b)(3).

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5.36.040 - Corporations and Partnerships.

If the applicant is a corporation, the name of the corporation shall be set forth exactly as shown in its articles of incorporation together with the names and residence addresses of each of the officers, directors and each stockholder holding more than ten percent (10%) of the stock of the corporation. The information hereinafter required shall be provided for each officer of the corporation. If the application is a partnership, the information hereinafter required shall be supplied for each of the partners, including limited partners. If one or more of the partners is a corporation, the provisions above pertaining to a corporate applicant apply.

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5.36.050 - Permit Fee and Investigation.

All applications shall be accompanied by a permit fee of which no part is refundable. The City Council shall from time to time, in a Council Resolution, set forth the specific amount of the permit fee. Applications for an owner's permit shall include evidence of insurance meeting the requirements of this chapter. Additional fees may be charged to cover costs of processing the applicant's fingerprints by the state of California. Upon receipt of said application, the police department within thirty (30) days of filing the application shall interview the applicant and any other person as may be required, and make any other investigation necessary to approve or deny the permit, provided that said thirty (30) days may be extended by the Chief of Police for such period as may be necessary to obtain fingerprint records or other necessary information from the appropriate state agency.

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5.36.060 - Business License.

At the time of the application for an owner's or owner-operator's permit, applicant shall also apply for and furnish the information necessary to obtain a City business license as required by Chapter 5.04 of this Code. No business license shall be issued until the investigation is completed and the permit is approved. The business license shall be issued upon payment of the business license fee as provided in Chapter 5.04 of this Code. In addition, each owner or owner-operator shall obtain an annual business license as provided for in Chapter 5.04 of this Code.

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5.36.070 - Issuance or Denial of Owner's Permit.

The police department shall issue an owner's permit if all required information has been furnished and the report filed finds that:

A. The character of the applicant is satisfactory;

B. The applicant has not been convicted of any crime which would cause him to be unfit to operate a taxi company;

C. The applicant has not knowingly and with intent to deceive, made any false, misleading or fraudulent oral or written statements in his application or to any person investigating his application.

D. That the name, monogram or insignia to be used upon the vehicles is not in conflict with and does not imitate any other name, monogram, or insignia used by any other person heretofore licensed by the city in such manner as to be misleading or tend to deceive or defraud the public.

The permit shall be denied if all of the above findings cannot be made or if all of the information required is not supplied to the city. If denied, the reasons therefor shall be endorsed upon the application, and the police department shall notify the applicant of the denial by first class mail enclosing a copy of the application upon which the reasons have been endorsed.

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5.36.080 - Issuance or Denial of Operator's Permit.

The police department shall issue an operator's permit if all required information has been furnished and the report filed finds that:

A. The character of the applicant is satisfactory;

B. The applicant is over eighteen (18) years of age;

C. The applicant possesses a valid driver's license issued by the state of California;

D. The applicant is not a reckless driver and has not been convicted of reckless driving or driving under the influence of intoxicating liquors or narcotics;

E. The applicant has not been convicted of a felony or crime involving moral turpitude; and

F. The applicant has not knowingly and with intent to deceive made any false, misleading or fraudulent oral or written statements in his application or to any person investigation his application.

The operator's permit shall be denied if all of the above findings cannot be made or if all of the information required is not supplied to the city. If denied, the reasons therefor shall be endorsed upon the application, and the police department shall notify the applicant of the denial by first class mail enclosing a copy of the application upon which reasons have been endorsed.

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5.36.090 - Appeal.

In the event a permit has been denied, suspended or revoked, the applicant shall have ten (10) days from the date of mailing the notice of same within which to appeal to the City Council by filing a written application requesting a public hearing with the City Clerk of the city. Notice and public hearing shall be given as follows:

A. Upon receipt of the request for hearing, the City Clerk shall set the matter for hearing before the City Council, at a regular or special meeting thereof, within thirty (30) days from the date of filing the request for public hearing, and shall give written notice of such hearing to the applicant at the address set forth in the request by first class mail at least ten (10) days prior thereto;

B. On the date set, the City Council shall hear the matter, and may continue it from time to time before reaching a decision. In the case of a permit denial, if the Council finds that the applicant has satisfactorily met all of the requirements of this chapter, it shall order the issuance of the permit and business license. If it finds that the requirements have not been met satisfactorily, it shall deny the permit and business license. In the event of a suspension or revocation, the Council may affirm or deny the decision or may make such other decision as it deems just under the circumstances.

C. All findings of the City Council shall be final and conclusive upon the applicant.

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5.36.100 - Revocation or Suspension of Permits.

Any permit issued under this chapter shall be subject to suspension or revocation as set forth herein. A suspension or revocation may be imposed for driving a taxicab under the influence of alcohol or a controlled substance or for violation of, or for causing or permitting violation of, any provision of this chapter or for any grounds that would warrant the denial of such permits in the first instance. Any permit may be temporally suspended by the Chief of Police or his designated representative for a period of seventy-two (72) hours if, in the opinion of the Chief of Police or his designee, an emergency condition exists necessitating immediate suspension. Any permit may be suspended indefinitely or revoked by the City Manager or his designated representative for any of the grounds set forth herein.

In the event the permit is suspended or revoked, the notification of the reasons for such suspension or revocation shall be set forth in writing and sent to the permittee by means of first class mail. In the event of suspension or revocation of any permit, the permittee may appeal to the City Council in the manner provided in Section 5.36.090.

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5.36.110 - Fares.

A. Taximeter. All taxicabs picking up passengers within the City shall be equipped with a taximeter, and it shall be the duty of every owner operating a taxicab to maintain such taximeter in perfect condition so that it will at all times correctly and accurately indicate the correct charge for the distance traveled and waiting time. Such taximeter shall be at all times subject to inspection by the Contra Costa county sealer of weights and measures.

B. Dial of Taximeter. Every such taximeter shall be equipped so as to register the cost of transportation of passengers and the taximeter shall be so placed in the taxicab that the reading dial showing the amount to be charged may be readily seen by the passengers in the taxicab. It is unlawful to charge any sum in excess of the amount shown on the taximeter dial for conveyance in the taxicab.

C. Taximeter Flag. It is unlawful while carrying a passenger to display the flag or the device attached to the taximeter in such position as to denote that the vehicle is for hire or to cause the taximeter to record when the vehicle is not actually employed or to fail to cause the device on the taximeter to be placed into a non-recording position at the termination off each service.

D. Registration of Rates. Prior to the issuance of a permit to operate a taxicab within the City and thereafter, within fifteen (15) days after any change of rates, the owner or owner-operator shall register with the City Clerk and the Chief of Police its most current rate schedule for distance traveled and waiting time.

E. Rates. It is unlawful to fix, charge or collect for a service a rate more than the rate registered under Section 5.36.110.D. above.

F. Multiple passengers. When carrying multiple passengers whose points of destination are different, the meter shall be turned back to the "for hire" positions each time a passenger is discharged.

G. Waiting time. For waiting time a charge may be made at a rate not to exceed the amount registered with the Chief of Police. Waiting time is to be included in the total registered fare, providing that the waiting time charge shall not apply to traffic delays or crossing delays for train passage.

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5.36.120 - Safe Maintenance of Taxicabs—Inspection.

All taxicabs for hire shall be under the supervision and control of the Chief of Police. No operator shall be permitted to drive any taxicab in the city while the same or any equipment used thereon, or therewith, is unsafe, defective or in an unsanitary condition. Every taxicab shall comply and be subject to all applicable provisions of the California Vehicle Code and shall be at all times subject to the inspection of any police officer of the city for compliance with this section and the provisions of the California Vehicle Code. At least once every twelve (12) months each taxicab shall be safety checked by an independent state licensed auto service or repair facility which is an approved brake and lamp station. Upon completion of the safety check, a copy of the report shall be promptly forwarded by the owner or owner-operator to the Police Department. Written proof of a current safety check shall be carried in each vehicle at all times and no owner or operator shall allow any taxicab to be operated within the City without being covered by a valid safety check.

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5.36.122 - Safe Operation of Taxicabs.

Owners and operators shall jointly be responsible for the safe operation of taxicabs in full compliance with all applicable provisions of the California Vehicle Code with regard to the operation of motor vehicles.

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5.36.124 - Compliance With Other Laws.

Owners and operators shall jointly be responsible for compliance with all applicable provisions of the Clayton Municipal Code.

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5.36.130 - Insurance.

Each owner shall carry liability insurance in the amount of not less than one million dollars ($1,000,000.00) per person for bodily injury and property damage. All insurance shall name the City of Clayton as additional insured; such insurance shall be primary to all others and shall contain a provision that it will not be canceled except upon thirty (30) days' written notice to the City of Clayton. All insurance carriers shall be admitted in the State of California. Evidence of current insurance in the form of an additional insured endorsement shall be on file with the City Clerk at all times. The City Manager may alter the requirements set forth in this Paragraph in his sole discretion.

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5.36.132 - Markings and Decal Required.

A. Each taxicab operated by the holder of an owner's permit shall be painted and marked in accordance with the application currently on file with the police department.

B. No color, markings or insignia shall be allowed which is the same as or similar to the colors, markings or insignia then currently on file by any other permittee.

C. Each taxicab shall, in plain view on each side of its exterior, have the business name and telephone number of the owner printed in letters at least two (2) inches high. Magnetic or other temporary signs shall not be allowed. Each taxicab shall also display in such area the identifying number for the taxicab which number shall be issued by the police department.

D. Each taxicab shall display a decal issued by the police department for that vehicle. A new decal shall be issued each year at the time of payment of the business license for the vehicle. No person shall alter, remove or transfer the decal to another vehicle.

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5.36.133 - Replacing Taxicabs.

If an owner or owner-operator desires to replace any taxicab for which he has a permit with another taxicab, he shall so inform the Police Department in writing. The notification shall be accompanied by all pertinent information and data to identify the vehicle and shall be accompanied by a policy of insurance as required herein. The decal from the replaced vehicle shall be returned to the police department or evidence shall be provided that it has been destroyed. In the event the police department finds that such a taxicab fulfills the requirements set forth in this chapter, it shall permit the requested replacement.

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5.36.135 - Preferences Prohibited.

It is unlawful for any person, having the ability or authority to control the selection of taxicabs for hire at any premises, to solicit a fee or other compensation or favor for the purpose of granting preference or priority rights to any taxi.

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5.36.140 - Operator to Take Direct Route to Destination.

Any operator employed to transport passengers to a definite point shall take the most direct route that will take the passengers to their destination, safely and expeditiously.

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5.36.150 - Failure to Pay Lawful Fare.

It is unlawful for any person, except where credit is extended, to refuse to pay the lawful fare, as set forth on the taximeter, for the use of any taxicab, after hiring the same.

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5.36.160 - Refusal of Service.

It is unlawful for any operator, driving under a permit issued pursuant to the terms of this chapter, to refuse, when the vehicle is in service and not otherwise engaged, to provide service to or from any location in the city or to refuse to transport any person who presents himself for carriage in a sober and orderly manner and for a lawful purpose.

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5.36.170 - Display of Operator's Permit.

The operator's permit shall be fixed in a conspicuous place in the taxicab so as to be seen from the passenger's compartment. It shall display a photo of the operator and shall set forth the name, address and telephone number of the owner of the taxicab and the name of the operator.

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5.36.180 - Change of Employment by Operator.

The owner shall notify the city immediately upon termination of an operator's employment. The operator's permit shall become void upon such termination and shall be returned to the Police Department. It may be renewed upon reemployment under procedures set forth in Section 5.36.190 hereof.

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5.36.190 - Expiration and Renewal of Operator's Permit.

Every operator's permit shall be renewed annually, no less than ninety (90) days prior to the anniversary date of its issuance. Any permit not renewed shall be null and void on such anniversary date. The permit fee for renewals is not refundable. The City Council shall in a Council Resolution, set forth the specific amount of the permit fee for renewals. Additional fees may be charged to cover costs such as processing fingerprints. Prior to permit renewal being granted the permittee must provide a new photograph and current information concerning any changes to the facts set forth in the application. Failure to renew the operator's permit in a timely manner shall be cause for requiring a completely new operator's permit.

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5.36.200 - Penalty for Violation.

In addition to the penalties expressly set forth herein, the violation of any provision of this chapter is subject to the provisions of Chapter 1.20 of the Clayton Municipal Code entitled General Penalty.

(Ord. 388, 2005)

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