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Earlier editions: 2026-09

Title 5 — BUSINESS TAX CERTIFICATES AND REGULATIONS

Morro Bay Municipal Code Ch. 5.24 Taxicabs

Morro Bay Municipal Code · 2026-10 edition · updated 2026-10-04 · Morro Bay

Cite as: Morro Bay Municipal Code Chapter 5.24 · Text as of 2026-10-04

Footnotes:

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For statutory provisions authorizing local authorities to license and regulate the operation of any vehicle for hire and drivers of passenger vehicles for hire, see Veh. Code § 16501; for provisions regarding financial responsibility, see Veh. Code § 16500 et seq.

5.24.010 - Definitions.

Unless otherwise expressly stated, whenever used in this chapter the following terms are defined as follows:

A. "Certificate holder" means any person to whom a certificate of public convenience and necessity has been issued under the provisions of this chapter and which certificate has not been revoked.

B. "Driver" means every person in charge of, or operating, any passenger-carrying or motor-propelled vehicle, either as agent, employee, or otherwise, of owner, as owner, or under the direction of the owner.

C. "Street" means any place commonly used for the purpose of public travel.

D. "Taxicab" means any motor-propelled vehicle used for the transportation of passengers who direct the route to be traveled over the streets and not operated over a fixed route for compensation.

E. "Taxicab stand" means a public place alongside the curb of a street or elsewhere in the city which has been designated by the council as reserved exclusively for the use of a holder of a certificate of public convenience and necessity.

F. "Taxicab permit" means an authorization issued to a holder of a certificate of public convenience and necessity pursuant to the provisions of this chapter to operate a taxicab within the city.

(Ord. 5 § 1, 1964)

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5.24.020 - Certificate of public convenience and necessity and permit.

No person shall engage in the business of operating any vehicle defined in Section 5.24.010 within the city without first having obtained a certificate of public convenience and necessity from the council and a taxicab permit for the operation of each vehicle authorized under such certificate of public convenience and necessity from the city clerk.

(Ord. 5 § 2, 1964)

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5.24.030 - Application for certificate.

All persons applying to the council for a certificate of public convenience and necessity to operate one or more taxicabs shall file with the council a sworn application in a form stating as follows:

A. The name and address of the owner or person applying; if a partnership, the name of each partner; if a corporation, the names of the directors and principal officers;

B. The number of vehicles proposed to be operated for taxi service;

C. The designated number of each taxicab to be operated;

D. A description of the proposed color scheme, insignia, trade style, and any other distinguishing characteristics of the proposed taxicab design;

E. Any facts which the applicant believes tend to prove that public convenience and necessity require the granting of a permit;

F. Proposed rates to be charged;

G. Such further information as the council requires.

(Ord. 5 § 3, 1964)

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5.24.040 - Certificate hearing.

No certificate of public convenience and necessity for the operation of any taxicab shall be granted until the council, after hearing, declares by resolution that the public convenience and necessity require the issuance of such certificate.

(Ord. 5 § 4, 1964)

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5.24.050 - Investigation.

In determining whether the public convenience and necessity require the operation of a taxicab, or taxicabs, for which application is made, the council shall hold such public hearing as may be necessary in its discretion to determine that fact. Before any application is acted upon, the chief of police shall cause an investigation to be made and shall report his findings, in writing, to the council on the following:

A. The demand of the public for additional taxicab service;

B. The adequacy of existing mass transportation and taxicab service;

C. The financial responsibility and experience of the applicant;

D. The number, kind and type of equipment and the color scheme to be used;

E. The effect which such additional taxicab service may have upon traffic congestion and parking;

F. Whether the additional taxicab service will result in a greater hazard to the public;

G. Such other relevant facts as the council may deem advisable or necessary.

(Ord. 5 § 5, 1964)

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5.24.060 - Compliance required.

No certificate of public convenience and necessity shall be issued to any person who has not fully complied with all the requirements of this chapter necessary to be complied with before the commencement of operation of the proposed service.

(Ord. 5 § 7, 1964)

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5.24.070 - Additional permits—Council determination.

If the council determines that the public convenience and necessity require additional service, it shall then determine the number of taxicab permits which shall be necessary to furnish such services. The council may award such additional taxicab permits to existing holders of certificates of public convenience and necessity or to any new applicants who are qualified for issuance of certificates of public convenience and necessity.

(Ord. 5 § 6, 1964)

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5.24.080 - Additional permit—Application.

Any holder of a certificate of public convenience and necessity may make application to the city clerk for such additional taxicab permits as he may desire. The city clerk shall notify the other certificate holders of such application and if no objections are filed within ten days, the applicant shall be granted such taxicab permit or taxicab permits as requested without necessity of a hearing or investigation as provided in Section 5.24.050. If, however, protests are filed, then such taxicab permits shall be granted or denied only in accordance with the provisions of Sections 5.24.050 and 5.24.060.

(Ord. 5 § 8, 1964)

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5.24.090 - Taxicab owner before enactment.

Every owner operating a license taxicab prior to the seventh day of October, 1964, shall be presumed, in the absence of any contrary evidence and finding of the council, to have established a prima facie evidence of public convenience and necessity for the licensing of the taxicab or taxicabs actually in operation, and the council, upon application received not later than fifteen days after the seventh of October, 1964, shall grant a certificate of public convenience and necessity to such owner for the operation of taxicabs. Every owner obtaining a certificate as aforesaid shall be entitled to the number of taxicab permits held by such owner that were in force on the day prior to the seventh day of October, 1964.

(Ord. 5 § 9, 1964)

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5.24.100 - All day operation.

All persons holding certificates of public convenience and necessity shall regularly and daily operate their taxicabs on a twenty-four hour basis during each day of the license year.

(Ord. 5 § 10, 1964)

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5.24.110 - Taxicab replacement.

Whenever a certificate holder replaces a taxicab for which a permit has been issued, he shall file with the city clerk the name, type, year of manufacture, serial number, and motor number of the vehicle abandoned and the vehicle to be placed in use. The city clerk shall, as a matter of right, authorize the replacement of such vehicle under the existing permit.

(Ord. 5 § 11, 1964)

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5.24.120 - Transfer of certificate and permit.

Any person having a certificate of public convenience and necessity for the operation of taxicabs shall be authorized by the council to transfer the certificate of public convenience, taxicab permits and taxicab stands issued pursuant thereto, unless after a hearing held for the purpose the council finds that such proposed transferee is not a person of good moral character or that the transferee does not possess sufficient financial responsibility to meet the requirements of a holder of a certificate of public convenience and necessity under this chapter. The hearing shall be held within thirty days after the holder of the certificate of public convenience and necessity shall give notice in writing to the city clerk of the intended transfer.

(Ord. 5 § 12, 1964)

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5.24.130 - Suspension and revocation of certificate.

The certificate of public convenience and necessity shall be suspended or revoked by the council upon the following grounds:

A. The owner wilfully fails to operate the vehicles under permit in accordance with the provisions of this chapter;

B. The taxicab or taxicabs are operated at a rate of fare other than that approved by the council;

C. The company abandons its operation of all vehicles for a period of thirty days. Acts of God, labor disputes and other acts beyond control of the certificate holder are not an abandonment within the meaning of this section. No suspension shall be made effective until a hearing has been had before the council at which time the certificate holders may be present and represented by counsel. The certificate holder shall have not less than ten days notice by registered mail of the hearing.

(Ord. 5 § 13, 1964)

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5.24.140 - Registration and license.

Every holder of a certificate of public convenience and necessity shall pay registration and business tax to the city in accordance with the business tax rate schedule. The license shall be issued in the same manner provided for other licenses of the city.

(Ord. 285 § 2 (part), 1986; ord. 225 § 25, 1982; Ord. 5 § 14, 1964)

(Ord. No. 595, § 3, 9-8-15)

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5.24.150 - Approval of established rates.

The rate schedule of every owner operating a licensed taxicab or taxicabs prior to the seventh day of October, 1964, and who, under the provisions of this chapter, was granted a certificate of public convenience and necessity and whose rates were, on the seventh day of October, 1964, on file with the clerk and approved prior to the seventh day of October, 1964, by the council, are hereby approved.

(Ord. 5 § 15, 1964)

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5.24.160 - Rate change—Hearing.

The council, upon its own motion or upon application of a certificate holder, may set, establish, change, modify or amend the schedule of rates to be charged by all vehicles operated by each holder of a certificate of public convenience and necessity under the provisions of this chapter. No rates shall be set, established, changed, modified or amended without a hearing before the council. Notice of such hearing shall be given to each certificate holder in writing by the city clerk at least five days before the hearing, and the council may give such other notice as it deems necessary.

(Ord. 5 § 16, 1964)

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5.24.170 - Taxicab specifications and equipment.

Every taxicab shall have permanently printed or placed on each side and rear of such taxicab the name of the owner or the fictitious name under which the owner operates, together with the telephone number of the owner or company. All of the lettering shall be in letters not less than two and one-quarter inches in height and not less than five-sixteenths of an inch stroke. In addition thereto, every taxicab shall have printed or placed upon its exterior in conspicuous letters of at least three and one-half inches in height and not less than one-half inch stroke, of a color in contrast to the color of the taxicab, the number of such taxicab, which numbering shall be printed or placed in the following locations:

A. In front center of taxicab on metal above windshield;

B. One number on each side of taxicab; and

C. One number on each side of outside rear of taxicab.

All taxicabs shall conform to the color scheme, name, monogram, or insignia approved by the city clerk.

No person shall imitate any color scheme, monogram or insignia used by any other holder of a certificate of public convenience and necessity which has been approved by the city clerk.

(Ord. 5 § 17, 1964)

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5.24.180 - Inspection.

Before a permit is issued to any owner, the taxicab for which such permit is requested shall be delivered to a place designated by the council for inspection, and the council shall designate agents to inspect such taxicab or taxicabs, and their equipment, to ascertain whether such taxicab complies with the provisions of this chapter, all costs thereof to be paid by cab owner.

(Ord. 5 § 18(a), 1964)

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5.24.190 - Right of entry.

The chief of police, or any member of the police department under his direction, shall have the right, at any time after displaying proper identification, to enter into or upon any certificated taxicab for the purpose of ascertaining whether or not any of the provisions of this chapter are being violated.

(Ord. 5 § 18(b), 1964)

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5.24.200 - Unsuitable taxicab—Proof of safety.

Any taxicab which is found, after any such inspection, to be unsafe or in any way unsuitable for taxicab service shall be immediately ordered out of service, and before again being placed in service, proof must be furnished to the chief of police that it is in a safe condition.

(Ord. 5 § 18(c), 1964)

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5.24.210 - Interior cleanliness.

The interior of every taxicab shall be thoroughly cleaned at least once in every twenty-four hours.

(Ord. 5 § 18(d), 1969)

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5.24.220 - Operating regulations.

A. Any driver employed to transport passengers to a definite point shall take the most direct route possible that will carry his passenger to his destination safely and expeditiously.

B. No driver of any licensed taxicab shall refuse any person prompt taxi service in the city at any time while such taxicab is on the public streets ready for service, unless the taxicab is already engaged in the carrying of one or more passengers or is en route to answer a call for taxicab service; provided further that nothing in this subsection shall require any owner or driver to furnish taxicab service to any person under the influence of intoxicating liquor or narcotics, or to any person who is insane or who is a known criminal.

C. Every driver, upon request, shall give a correct receipt for the amount of payment received.

D. No driver of any taxicab shall accept, take into his vehicle or transport any larger number of passengers than the rates covering the seating capacity of his vehicle.

E. No driver shall permit any taxicab to remain standing in any established taxicab stand, unless the cab is attended by a driver or operator, except when assisting passengers to load or unload, or when answering the telephone.

F. No driver shall carry any passenger other than paying passengers or persons authorized by or on company business.

G. Every driver shall at all times display his driver's permit and picture in a conspicuous place in the taxicab which he is operating.

H. Any violation of the provisions of this section shall be cause for the revocation of the permit of the driver guilty of such violation.

(Ord. 5 § 19, 1964)

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5.24.230 - Driver's permit—Required.

No person shall drive or operate any of the vehicles mentioned in Section 5.24.010 without first obtaining a permit in writing so to do from the chief of police, or any person designated by him. The permit issued will entitle the driver to work for only those whose name appears on the permit. A new permit will be required for each subsequent employment, provided, however, that no application shall be necessary other than a ratification of change of employment.

(Ord. 5 § 20(a), 1964)

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5.24.240 - Driver's permit—Application.

Applicants for taxicab driver's permits shall file applications therefor with the chief of police. The application shall contain the following information together with the application fee in accordance with the business tax rate schedule, and three pictures of the applicant:

A. Name, marital status, age, residence, last previous address, and length of residence at such last address and in the city;

B. The names and addresses of two residents of the city acquainted with the applicant;

C. Complete fingerprinting of applicant.

(Ord. 285 § 2 (part), 1986; Ord. 225 § 26, 1982; Ord. 5 § 20(b), 1964)

(Ord. No. 595, § 3, 9-8-15)

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5.24.250 - Driver's permit—Prohibited persons.

No taxicab driver's permit shall be issued to any of the following persons:

A. Any person under the age of eighteen years;

B. Any person not a citizen of the United States or who has not unlawfully declared his intention to become such;

C. Any person who has been convicted of a felony or a crime involving moral turpitude;

D. Any person who has been convicted within the last three years of driving a vehicle recklessly or while under the influence of intoxicating liquors or narcotics.

(Ord. 343, 1989; Ord. 144 § 1, 1976; Ord. 5 § 20(c), 1964)

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5.24.260 - Applicant residency.

No applicant may obtain a permit to drive or operate any of the vehicles mentioned in this chapter unless and until he shall have been a continuous resident of the county for at least thirty days immediately preceding the date of the application; provided, however, that a temporary permit only may be granted for a period not to exceed sixty days after which time the license may be made permanent if, after investigation, the applicant is found to be a fit and proper person.

(Ord. 5 § 21, 1964)

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5.24.270 - Applicant examination.

Each applicant for a permit shall be examined by a person designated by the chief of police as to his knowledge of the provisions of this chapter and traffic regulations, and if the result of the examination be unsatisfactory he may be refused a permit.

(Ord. 5 § 22, 1964)

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5.24.280 - Revocation of license.

The chief of police may revoke or refuse to renew an operator's license if the driver or applicant has since the granting of his permit:

A. Been convicted of a felony or a crime involving moral turpitude; pandering, using, possessing, selling or transporting narcotics; or imparting information for obtaining narcotics;

B. Been convicted of driving recklessly or while under the influence of liquors or narcotics;

C. Had his state driver's license revoked or suspended;

D. Had two or more convictions of misdemeanor hit and run, or speed violation as set forth in the Vehicle Code of the state occurring during any consecutive period not exceeding twelve months.

(Ord. 5 § 23, 1964)

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5.24.290 - Appeal to council after revocation.

Any driver whose license has been revoke as provided in Section 5.24.280, may, within ten days of such revocation, file an appeal from such revocation with the council, and a hearing shall be held before the council on such revocation. If, in the opinion of the council, the revocation is not justified from the evidence submitted to it at the hearing, the permit shall be reinstated. If, upon the hearing, it appears that good cause exists therefor, the council shall affirm the action of the chief of police and order the permanent revocation of the permit. The action of the council on such a revocation shall be final and conclusive. Pending such hearing and reinstatement, it is unlawful for such driver to operate a taxicab within the city.

(Ord. 5 § 24, 1964)

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5.24.300 - Taxicab stands.

The council may designate taxicab stands on public streets for each certificate holder which shall remain in effect until revoked by the council.

No owner or driver of any taxicab shall park it on any public street in the central traffic district for the purpose of soliciting business, other than at the stands designated by the council.

The taxicab stands shall be designated by alternating striped colors of the taxicab company painted on the curb, with the words "taxicab only."

(Ord. 5 § 25, 1964)

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5.24.310 - Insurance—Liability.

The motor vehicle liability policy required by this chapter shall insure the owner and any other person using or responsible for the use of any such vehicle, with the consent, express or implied, of the owner against loss from the liability imposed upon such owner by law for injury to, or death of, any person, or damage to property, growing out of the maintenance, operation or ownership of any public motor vehicle to the amount or limit of fifty thousand dollars, exclusive of interest and costs, on account of injury to, or death of, any one person; of one hundred thousand dollars, exclusive of interest and costs, on account of any one accident resulting in an injury to, or death of, more than one person, and of twenty-five thousand dollars for damage to property of others resulting from any one accident.

The motor vehicle liability policy shall inure to the benefit of any and all persons suffering loss or damage either to person or property, as herein provided, and the liability of the insurance carrier shall be in no manner abrogated or abated by the death of the tort feasor or the owner.

Every certificate required under the provisions of this chapter shall certify that the motor vehicle liability policy or policies therein cited shall not be cancelled except upon ten days prior written notice thereof to the council. The motor vehicle liability insurance shall be a continuing liability up to the full amount thereof, notwithstanding any recovery thereon, and the certificates thereof shall so certify. All motor vehicle liability policies and all certificates thereof shall be subject to the approval of the city attorney in any and all matters and if at any time, in the judgment of the council, the motor vehicle liability policies are not sufficient for any cause, the council may require the owner of such public motor vehicle who filed the same to replace the motor vehicle policies within ten days with other policies in accordance with the provisions of this chapter. If the owner fails to replace the motor vehicle policies within the ten day period with good and sufficient policies, as aforesaid, then at the termination of the period the owner's permit issued hereunder shall be by such failure automatically suspended until such time as the requirement is complied with, and the chief of police shall enforce such suspension.

(Ord. 5 § 26, 1964)

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5.24.320 - Permit revocation.

Any person convicted of violating any of the provisions of this chapter shall, in addition to any other penalty provided by this code, have the permit to him revoked.

(Ord. 5 § 27, 1964)

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5.24.330 - Penalty for refusal to pay fare.

Except where credit is intended, no person shall fail or refuse to pay at the end of the trip or the termination or discharge of service, the regular fare for the public passenger vehicle for hire he has hired, and upon conviction for violation thereof, in addition to any other penalty provided for in this code, he shall be compelled to pay to the driver of the vehicle an amount equal to the legal fare and in case any bail required is forfeited, the amount of the legal fare shall be paid to the driver from such amount forfeited, and the court or judge before whom the case is heard shall order the same to be paid from the proper account.

(Ord. 5 § 28, 1964)

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