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Earlier editions: 2026-09

Title 5 — BUSINESS LICENSES AND REGULATIONS

Grass Valley Municipal Code Ch. 5.40 Taxicabs and Other Vehicles for Hire

Grass Valley Municipal Code · 2026-10 edition · updated 2026-10-04 · Grass Valley

Cite as: Grass Valley Municipal Code Chapter 5.40 · Text as of 2026-10-04

5.40.010 - Definitions.

For the purposes of this chapter, the following words and phrases shall have the meanings respectively ascribed to them by this section:

"Driver" means any person in charge of or operating any passenger-carrying motor vehicle, either as owner or employee or under the direction of owners or employees.

"Owner" means any person who, in any manner, has the proprietary use, ownership or control of any passenger-carrying motor vehicle.

"Taxicab" means any motor vehicle used solely or mainly for the transportation of passengers for hire, on call or demand, over the public streets of the city, irrespective of whether the operations extend beyond the city, and between such points and over such route as may be directed by the passenger, of a distinctive color or insignia and of public appearance such as is in common usage for taxicabs.

(Prior code § 10-55)

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5.40.020 - Vehicle safety—Annual inspection.

A. All public passenger vehicles for hire shall be under the supervision and control of the chief of police, and he shall not permit any driver to operate any taxicab in the city while it or any equipment used on it or with it shall be unsafe, defective or unsanitary, and every taxicab shall be at all times subject to the inspection of any police officer of the city.

B. All such vehicles shall be inspected annually for safety purposes by an agency designated by the chief of police.

(Prior code § 10-56)

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5.40.030 - Rates and charges—Generally.

The city council shall, from time to time, fix by resolution the schedule of rates and charges for taxicab service; and it is unlawful for the owner or driver of any taxicab in the city to fix, charge or collect for taxicab service a rate more than that fixed in such schedule.

(Ord. 512 § 1, 1994: prior code § 10-57)

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5.40.040 - Charges—Failure to pay.

No person, except where credit is extended, shall refuse to pay the lawful fare for the use of any taxicab after hiring it.

(Prior code § 10-58)

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5.40.050 - Liability insurance required.

A. It is unlawful for any owner or operator to drive or operate a taxicab, or cause it to be driven or operated in the city, and no certificate for operation of it shall be granted, unless and until there is on file with the city clerk, and in full force and effect at all times while such taxicab is being operated, a policy of auto liability insurance approved by the city attorney, with a solvent and responsible company authorized to do business in the State of California, whereby the owner and driver of each of the taxicabs operated under the franchise are insured against liability for damage to property and for injury to or death of any person as a result of the ownership, operation, defective construction of such taxicab or other use thereof. Further, such policy of insurance shall name the city, its officers, agents and employees as additional insureds. Additionally, a vehicle owner and driver shall indemnify, defend and hold harmless the city, its officers, agents and employees from claims arising from or alleged to arise from the negligence of the vehicle owner or driver.

B. Such policy shall have a minimum liability coverage of one million dollars for the injury or death of one person, one million dollars for the injury or death of two or more persons in the same accident and two hundred fifty thousand dollars for injury or destruction to property in any one accident. Additional coverage shall be provided by the certificate holder as required by the risk manager and/or city attorney if deemed necessary based on the history of the holder's operation of the taxicab business, the driving and/or criminal history of drivers employed by the holder and other conditions which may create additional risks associated with the operation of the taxicab business.

C. Such policy of insurance shall guarantee the payment of any final judgment rendered against such owner or driver to any person suffering injury or damage to his person or property, within the required limits, irrespective of the financial condition of such owner or any acts or omissions of such owner or driver, and shall inure to the benefit of such person.

D. The receipt by the city of a notice of cancellation of a policy of insurance for reasons attributed to such an act of an owner shall result in the suspension of the insured vehicle's certificate of operation; the suspension shall commence on the effective date of the cancellation of insurance as stated in the notice. The holder of a suspended certificate must apply for and obtain a new certificate of operation prior to resuming operating the subject vehicle within the city. The certificate holder is responsible also to keep the city informed of deletions and additions of vehicles to the insurance schedule when changes are made during the year.

E. If at any time such policy of insurance is canceled by the company issuing it, or the authority of the company to do business in the state is revoked, the city clerk shall require the owner to replace such policy with another company satisfactory to the city attorney and in default thereof the owner's certificate of operation shall be revoked.

(Ord. 636 § 1, 2003: Ord. 521 § 1, 1995: Ord. 512 § 2, 1994: prior code § 10-59)

Exceptions & meaning →

5.40.060 - Use of taxicab stand.

No person driving a taxicab, while awaiting employment, shall stand such taxicab on any street or place other than upon a designated taxicab stand, nor shall any driver of a taxicab, while awaiting employment, drive so as to interfere with vehicular traffic.

(Prior code § 10-60)

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5.40.070 - Refusal of service.

No driver operating under a driver's permit issued pursuant to the terms of this chapter, shall refuse, when the vehicle is in service and not otherwise engaged, to transport any person who presents himself for carriage in a sober and orderly manner and for a lawful purpose.

(Prior code § 10-61)

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5.40.080 - Most direct route to be used.

Any driver 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.

(Prior code § 10-62)

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5.40.090 - Issuance of receipts.

If requested, every driver of a taxicab shall give a receipt upon payment of the correct fare. In case of a dispute the matter shall be determined by the officer in charge at the police station. Failure to comply with such determination shall subject the offending party to a charge of violation of this chapter.

(Prior code § 10-63)

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5.40.100 - Certificate required.

No person shall engage in the business of operating any taxicab in the city without first having obtained from the chief of police a certificate of operation for each individual vehicle.

(Ord. 512 § 3, 1994: prior code § 10-64)

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5.40.110 - Application for certificate.

Any person applying for a certificate of operation shall file with the chief of police a verified application accompanied by a fee in the amount established by city council resolution from time to time, which shall set forth the following:

A. The name and address of the company or persons making the application;

B. The make, type, year of manufacture and passenger seating capacity of each taxicab for which application for a certificate is made;

C. A description of the proposed color scheme, insignia or other distinguishing characteristics and signage of each taxicab;

D. Proof of a recent vehicle inspection for safety compliance;

E. Proof of insurance on all vehicles to be operated;

F. Such other information as the chief of police may require.

(Ord. 512 § 4, 1994: prior code § 10-65)

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5.40.160 - Substitution of vehicles.

If an owner sells or transfers title to a taxicab for which a certificate of operation has been issued, or in the event a taxicab for which a certificate has been issued has been destroyed, the owner is entitled, as a matter of right, upon written application to the chief of police, made within fifteen days after such sale, transfer or destruction, to have a new certificate issued, providing the taxi meets those applicable requirements of Section 5.40.110 but for no greater number than sold, transferred or destroyed; provided that such owner has complied with all the provisions of this chapter.

(Ord. 512 § 9, 1994: prior code § 10-70)

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5.40.170 - Certificate canceled after forty-five-day lapse in service.

If any taxicab service permitted under this chapter is for any reason discontinued for a period of forty-five days, without the prior permission of the chief, the certificate of operation granted therefor shall be automatically canceled and shall be restored only in accordance with the provisions of this chapter.

Any owner who shall retire and not replace any taxicab for a period of forty-five days shall immediately surrender to the chief of police the certificate granted for such taxicab.

(Ord. 512 § 10, 1994: prior code § 10-71)

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5.40.180 - Suspension and revocation of certificate.

The chief of police may at any time revoke or suspend any certificate of operation granted pursuant to this chapter for the following reasons:

A. If the owner's/driver's/operator's license or insurance has been revoked or suspended;

B. If the owner fails to operate taxicabs in accordance with the provisions of this chapter;

C. If the owner discontinues or suspends operation of taxicabs for a period of forty-five days without permission first obtained;

D. If taxicabs are operated at a rate of fare greater than that approved by the city council.

Any revoked or suspended permit shall be surrendered to the chief of police and the operation of all taxicabs covered by such certificates shall cease and be unlawful.

(Ord. 512 § 11, 1994: prior code § 10-72)

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5.40.185 - Appeals.

Any owner or driver aggrieved by a decision of the chief of police may appeal that decision to the city council. Such appeal must be submitted in writing to the city clerk within fifteen days of the date which the original decision occurred, briefly sating the facts and grounds of appeal, and signed by the appellant. Upon receipt of the appeal, the city clerk shall set the item on the city council's agenda no later than thirty days from the date of the filing of the appeal and shall notify the appellant of the hearing date. The appellant shall pay a fee in an amount established by resolution of the city council to cover the cost of expenses of the appeal process. Following the hearing of any such appeal, city council may affirm, reverse or modify the action of the chief of police. The action of city council on any such appeal shall be final and conclusive.

(Ord. 512 § 12, 1995)

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5.40.190 - Driver's permit required.

No person shall operate or drive a taxicab in the city without having first obtained a written permit to do so from the chief of police.

(Prior code § 10-73)

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5.40.200 - Driver's permit—Application.

To secure a driver's permit under this chapter, written application shall be filed with the chief of police and shall be accompanied by a deposit in an amount established by the city council from time to time to cover the cost of an identification card to be issued and carried by the permittee during all working hours. Such identification card shall not be transferable.

(Ord. 512 § 13, 1994: prior code § 10-74)

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5.40.210 - Driver's permit—Denial.

The chief of police shall not issue a driver's permit under this chapter for any of the following reasons:

A. If the applicant is under twenty-one years of age;

B. If the applicant does not possess a valid motor vehicle license issued by the state which permits the transporting of passengers for hire;

C. If the applicant is a reckless driver or has been convicted of reckless driving or driving while under the influence of intoxicating liquor or narcotics;

D. If the applicant is guilty or has been convicted of a felony or crime involving moral turpitude; or

E. If the applicant violates any provisions of this chapter.

(Ord. 459 § 18, 1991: prior code § 10-75)

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5.40.220 - Driver's permit—Issuance.

Upon satisfying the requirements of this chapter, the applicant for a driver's permit under this chapter shall be fingerprinted, and his record filed in the office of the police department; and thereupon a permit shall be issued, which shall be fixed in a conspicuous place in the taxicab so as to be seen from the passenger's compartment. Such permit shall set forth the name, address and telephone number of the owner of the taxicab.

(Prior code § 10-76)

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5.40.230 - Driver's permit—Term.

A. When issued, a driver's permit under this chapter shall be valid for one year from the date of issuance, unless it has been revoked for any of the causes set forth in this chapter.

B. The driver, in making application for a renewal of his permit, shall follow the same procedure as set forth in making his original application; except, that he shall not be required to pay the identification card deposit, be fingerprinted or furnish photographs.

C. Driver shall pay a fee in an amount established by resolution of the city council from time to time for the issuance of renewal permits.

(Ord. 512 § 14, 1994: prior code § 10-77)

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5.40.240 - Change of employer.

If any driver holding a permit pursuant to this chapter changes his employment to a different owner, he shall, within twenty-four hours thereafter, notify the chief of police for the purpose of having his driver's permit changed so as to properly designate the name of the new employer.

(Prior code § 10-78)

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5.40.250 - Driver's permit—Revocation.

A. The chief of police is authorized and directed to revoke and cancel, without previous notice, any driver's permit granted pursuant to this chapter whenever a driver violates any of the provisions of this chapter or for any of the reasons set forth in Section 5.40.210.

B. The holder of the permit thus revoked may, within ten days thereafter, appeal such order of revocation to the city council, which shall, after due notice to the holder, hear and determine the matter and its decision shall become final.

C. Any person whose permit is thus revoked shall not be eligible to apply for another for a period of one year from the date of such revocation.

(Prior code § 10-79)

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5.40.260 - Designation of taxicab stands.

The chief of police may designate, in writing, stands on the public streets to be occupied by taxicabs after application for a permit therefor has been made and the fee has been paid as provided in this chapter.

(Prior code § 10-80)

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5.40.270 - Approval of taxicab stand.

Before any designation of a taxicab stand is made as provided in this chapter, the written consent of the tenants or lessee of the ground floor or portion of the ground floor fronting the space where such stand is to be located shall be obtained. In the event the ground floor or portion of the ground floor fronting the space where such stand is to be located is not occupied by a tenant or lessee, then the written consent of the owner of the building fronting the space where such stand is to be located shall first be obtained.

(Prior code § 10-81)

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5.40.280 - Where stands prohibited.

No taxicab stand shall be designated within twenty feet of the curb line of any street crossing.

(Prior code § 10-82)

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5.40.290 - Permit for taxicab stand—Fee.

A. Application for taxicab stand permits shall be filed with the chief of police.

B. Such application shall be accompanied by the written consent required under this chapter, together with a fee of thirty dollars for each taxicab, which fee shall be paid by the applicant before any permit shall be issued under this chapter.

(Prior code § 10-83)

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5.40.300 - Stand permit—Issuance.

A taxicab stand permit shall be issued by the chief of police and shall specify the name and address of the permittee and the number of vehicles, class and character of service permitted thereunder.

(Prior code § 10-84)

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5.40.310 - Stand permit—Term.

A. All permits issued pursuant to this chapter, unless sooner revoked, shall expire at the end of one year from the date of issuance.

B. Application for renewal of permits shall be made at least five days before the date of expiration and the same requirements shall apply as in case of an original application.

(Prior code § 10-85)

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5.40.320 - Stand permit—Display.

Every permittee under this chapter shall display in plain sight in each taxicab used by him a copy of his permit.

(Prior code § 10-86)

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5.40.330 - Stand permit—Revocation.

Any permit for the use of a taxicab stand granted under this chapter may be revoked by the chief of police upon giving ten days' notice to the holder thereof and to the city council, and it is unlawful for any person to occupy a stand with a taxicab after such revocation and notice has been given.

(Prior code § 10-87)

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5.40.340 - Exclusive use of permit holder.

A. Any portion of the public streets designated as a taxicab stand shall be for the exclusive use of the taxicabs of the holder of the permit for such taxicab stand.

B. It is unlawful for any person, other than the permittee, to park his automobile or any other vehicle upon any portion of the public streets designated as a taxicab stand, and it is unlawful for the owner or operator of any passenger vehicle for hire, other than the permittee, to use the stand designated under such permit.

(Prior code § 10-88)

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5.40.350 - Vehicle number permitted to use stand.

The chief of police shall designate the number of taxicabs, not exceeding two, that shall be allowed to stand at any one time at any designated taxicab stand.

(Prior code § 10-89)

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