Torrance Municipal Code Art. 17 Taxicabs and Vehicles for Hire

The purpose of this Article is to provide rules and regulations governing the operation and permitting of vehicle for hire and taxicab service companies and drivers that are substantially located in the City of Torrance. This Article also serves as the taxicab and vehicle for hire transportation service policy of the City of Torrance, which is required to be adopted by California Government Code Section 53075.5(a).

Driver means any person driving a taxicab or vehicle for hire, either as an independent contractor or under the direction, employment, control, or service of a service operator.

Employment includes self-employment as an independent driver.

License Supervisor means the Assistant Finance Director of the City of Torrance or his or her designee.

Person means any individual, firm, corporation, association, partnership, or other form of business entity, other than a governmental entity.

Prearranged trip means using an online enabled application, dispatch, or internet website.

Service operator means every person having control, whether by a ten percent (10%) or greater ownership interest of any taxicab service or vehicle for hire service.

Substantially located means in reference to a city or county that the taxicab company meets either of the following:

1. Has its primary business address within that city’s or county’s jurisdiction.

2. The total number of prearranged and nonprearranged trips that originate within that city’s jurisdiction accounts for the largest share of the taxicab company’s total number of trips over the previous calendar year, as determined annually.

3. A taxicab company that initiates taxi operations after January 1, 2019, in reference to a city or county in which that company had not operated before January 1, 2019, the following:

A) In the first year of its operation, the jurisdiction where the taxicab company has its primary business address;

B) After the first year of operation it meets either of the following: the test described in subsection (1) or (2) of this definition.

Taxicab means any vehicle designed to carry not more than eight (8) passengers, excluding the driver, and that is used to transport persons for compensation on public streets; the compensation for which is determined by a taximeter or flat rate which determines a charge for distance traveled and/or time expended.

Taxicab service means any public passenger transportation service using a taxicab and available for hire on call or demand over the public streets of the City, where the service is not provided over a defined route, but is between points and over routes directed by the person(s) hiring the taxicab, and irrespective of whether the operations extend beyond the corporate limits of the City.

Taximeter means any instrument or device approved for use under applicable laws of the State, which mechanically or electronically calculates the charge for the use of a taxicab. The taximeter registers such charge by means of figures, including dollars and cents, calculated by an initial charge and thereafter a charge for distances traveled and/or waiting time.

Vehicle for hire means every motor-propelled vehicle, other than a taxicab, used for the transportation of passengers for hire from one (1) location within the City to another location within the City or beyond, at rates per mile, per trip, per hour, per day, per week, or per month. This term does not include a transportation network company (i.e., Uber, Lyft) or limousine business that provides service within the City and that holds a certificate or permit issued by the California Public Utilities Commission pursuant to the provisions of Chapter 8, Division 2 of the California Public Utilities Code.

Vehicle for hire service means a business that provides a vehicle for hire for transportation service.

It is unlawful for any person to operate or cause to be operated any vehicle for hire or taxicab service that is substantially located within the City without having a service operator’s permit issued pursuant to this Article.

A taxicab company that is substantially located and permitted by another city within Los Angeles County or by Los Angeles County may operate in the City on a prearranged basis. That taxicab company may pick up trips originating through an online enabled application, phone dispatch, or an internet website.

A taxicab company that is substantially located and permitted by another city within Los Angeles County or by Los Angeles County may use taxicab stands and pick up street hails without an operator’s permit issued by the City pursuant to this Article, unless the License Supervisor places a restriction on these locations pursuant to Section 33.17.170.

It shall be unlawful to operate a taxicab without a valid permit to operate issued by each city or county in which a taxicab is substantially located. The minimum fine for operating without a permit from the city or county in which a taxicab company is substantially located shall be Five Thousand Dollars ($5,000.00). The City of Torrance may, at any time, request trip data from any service operator to determine the city in which it is substantially located. If the requested trip data is not provided by the service operator, the City may impose a fine of One Thousand Dollars ($1,000.00).

It is unlawful for any person to drive a vehicle for hire or taxicab in the City without having a driver’s permit issued pursuant to this Article.

A taxicab driver that is substantially located and permitted by another city within Los Angeles County or by Los Angeles County may operate in the City on a prearranged basis. That taxicab driver may pick up trips originating through an online enabled application, phone dispatch, or an internet website.

A taxicab driver that is substantially located and permitted by another city within Los Angeles County or by Los Angeles County may use taxicab stands and pick up street hails without an operator’s permit issued by the City pursuant to this Article, unless the License Supervisor places a restriction on these locations pursuant to Section 33.17.170.

Any applicant that is determined to be substantially located in the City, desiring to obtain or to renew a service operator’s permit, must complete a City application form and sign it under penalty of perjury and submit it to the License Supervisor. Each application must be accompanied by an application fee in an amount to be established by resolution of the City Council. An incomplete application will be returned to the applicant within seven (7) calendar days along with a list of the deficiencies. The application will be deemed abandoned if, within fourteen (14) calendar days following the mailing of a notice of incomplete application, an amended application correcting all identified deficiencies is not received by the City. Within seven (7) calendar days of receiving a complete application, the City will send a letter acknowledging receipt of the completed application.

The following information is required:

a) The legal names, mailing and street addresses, and telephone numbers of the applicant, specified owners, directors, officers and employees. If the vehicle for hire or taxicab service is advertised to the public and operates under a name other than the legal name of the applicant, that name must be included as well. A post office box, mailbox, message service, or other similar device may not be used as an actual street address, but is acceptable as a mailing address;

b) The street addresses from which the applicant conducts or will conduct the vehicle for hire or taxicab service business, where dispatch will be conducted, and each location at which the business’s vehicles will be garaged;

c) The number of vehicles for hire or taxicabs to be operated under the permit and the number of vehicles for hire or taxicabs in the applicant’s fleet;

d) The manufacturer, model year, vehicle type, vehicle identification number ("VIN"), license plate number, company identification number, passenger capacity and proof of commercial registration for each vehicle submitted in the application, together with evidence satisfactory to the License Supervisor that each taxicab or vehicle for hire proposed to be operated under the permit has been safety-inspected within a period of time satisfactory to the License Supervisor, and otherwise complies in all respects with all applicable laws, rules, and regulations;

e) The proposed color scheme, insignia or other distinguishing characteristic of the taxicab or vehicle for hire, including the style and legend of any illuminated sign to be mounted on the top of the vehicle;

f) Data verifying that the taxicab company is substantially located within the City to include the business address and the trip data showing that the total number of prearranged and nonprearranged trips that originate within that city’s or county’s jurisdiction account for the largest share of the taxicab company’s total number of trips over the previous calendar year;

g) Proof that the applicant maintains at its sole expense insurance meeting City requirements as required during the business license application process;

h) Acknowledgment and acceptance of indemnification requirement as required by the City during the business license application process;

i) Legal and registered ownership of the vehicles to be used by the applicant;

j) Prior experience of the applicant in a vehicle for hire or taxicab business, including the details of any prior permit denial, revocation or suspension by any public agency of any type of operator’s or driver’s permit, license or certificate;

k) The name of each driver who will operate a taxicab or vehicle for hire in the City;

l) A certification that no driver employed or to be employed by the operator has been convicted of driving under the influence of alcohol or drugs within five (5) calendar years preceding the date of application;

m) A certification that each driver has received a minimum of sixteen (16) hours of training;

n) A copy of the service operator’s vehicle maintenance program, including preventative maintenance. The program must be in accordance with the vehicle manufacturer’s warranty specifications and any applicable State and Federal laws;

o) Rates to be charged to the public throughout the term of the service operator’s permit;

p) Satisfactory evidence establishing that the applicant has complied and currently complies with the provisions of California Government Code Section 53075.5(b)(3), or any successor provision, pertaining to pre-employment and periodic testing of drivers for controlled substances and alcohol, and with provisions pertaining to payment for drug and alcohol testing programs and related reporting requirements. The applicant must also provide satisfactory evidence that each driver who will operate a taxicab or vehicle for hire with the taxicab company has tested negative for drugs and alcohol within the previous twelve (12) months;

q) The names, street addresses and telephone numbers of no less than two (2) individuals who may be contacted twenty-four (24) hours a day, seven (7) days a week by the City in case of an emergency;

r) An explanation of how the vehicle for hire or taxicab service will provide service to people with disabilities that make it difficult to use conventional taxicab sedans;

s) The history of the organization and the manner in which it is organized, including, without limitation, the date of formation, the business commencement date(s), and all business locations in California during the five (5) calendar years preceding the year of application;

t) Submission of Department of Motor Vehicles (DMV) Pull Notice Program Requestor Code Number, as defined in Vehicle Code Section 1808.1, issued to the applicant. As a condition of accepting a service operator’s permit, the service operator is required to notify the License Supervisor immediately if it receives a DMV Pull Notice on one (1) of its drivers that would affect that person’s driver’s permit. In the event a driver’s DMV record indicates that a driver no longer qualifies for a driver’s permit, the service operator must require the driver to surrender the driver’s permit to the License Supervisor. DMV Pull Notice records must be made available for review by the License Supervisor upon request;

u) Submission of records of any convictions in any court of any state of the United States or in any United States court with respect to any of the persons identified in subsection (a) of this section; and

v) Any additional information pertinent to the operation of the proposed taxicab or vehicle for hire service, including but not limited to the business backgrounds of the officers and directors, certified business financial statements, and lease arrangements as the City may require.

The License Supervisor may approve, deny or conditionally approve an application for a service operator’s permit. The License Supervisor may deny an application for a service operator’s permit if, based on substantial evidence, the License Supervisor finds any of the following:

a) The application contains any material misrepresentation;

b) The applicant is not morally or financially responsible;

c) Any vehicle proposed to be operated lacks required equipment, is improperly licensed, or unsafe;

d) The applicant’s proposed schedule of rates are deemed unreasonable; or are unjust, discriminatory, or preferential pursuant to Government Code Section 53075.5(g); or

e) The applicant has not otherwise complied with this Article.

Should a service operator appeal the denial of a service operator’s permit, the License Supervisor will conduct an investigation of the applicant. Upon completion of the investigation, the License Supervisor will set a date for public hearing on the application before the License Review Board. A notice specifying the time and place of the hearing and a copy of the investigatory report will be mailed to the applicant and to all existing service operators and will be made available to the public, at least seven (7) days before the date of the hearing. The License Review Board will make a determination within fourteen (14) calendar days following the close of the hearing.

Any person who wishes to obtain a driver’s permit must file an application with the License Supervisor. Each application must be accompanied by an application fee in an amount to be set by resolution of the City Council. An incomplete application will be returned by mail to the applicant along with a list of deficiencies. An incomplete application will be deemed abandoned if a corrected application is not received by the City within fourteen (14) calendar days following the date the City mailed the applicant notice of the deficiency. Within seven (7) calendar days of receiving a complete application, the City will send a letter acknowledging receipt of the completed application.

The application must be signed under penalty of perjury and must include the following:

a) The name, residence address, and age of the applicant;

b) Any convictions in any court of any state of the United States or in any United States court;

c) The number and expiration date of the applicant’s California driver’s license, and disclosure of whether any state driver’s license or taxi driver’s permit held by the applicant has ever been revoked or suspended;

d) The name and address of the permitted service operator by whom the applicant is to be employed as a driver, and the endorsement of that service operator;

e) The names and addresses of every person by whom the applicant has been employed at any time during the five (5) calendar years preceding the year of application;

f) The names and addresses of three (3) responsible persons, excluding relatives of the applicant, who have known the applicant for at least three (3) years;

g) Proof of insurance and agreement to maintain at all times in full force and effect insurance at levels required by Section 33.17.050(g);

h) Assent to a background investigation and fingerprinting by the Police Department;

i) Two (2) copies of a one (1) inch square photograph of the applicant, taken within ninety (90) days of the date of application (one (1) photograph will be attached to the driver’s permit certificate or identification card; the other will be retained by the License Supervisor);

j) The identification number and expiration date of each taxi driver’s permit issued by every other jurisdiction in which the applicant is licensed; and

k) Any other information the License Supervisor may require.

If an applicant holds a valid driver’s permit issued by another jurisdiction whose application process included an investigation and background check by a law enforcement agency, the License Supervisor may immediately issue a driver’s permit, upon confirmation of the issuance and current validity of that prior permit.

The License Supervisor will otherwise forward the completed application to the Police Department, which will conduct and complete an investigation of the applicant, within sixty (60) days after a completed application has been received by it. The Police Department will approve or deny the application and report its action to the License Supervisor. The Police Department must specify its grounds for any denial. The License Supervisor will notify the applicant by mail of Police Department approval or denial within seven (7) calendar days of the Police Department action.

The Police Department must recommend denial of an application if the applicant has:

a) Falsified material information on the application;

b) Registered as a sex offender pursuant to California Penal Code Section 290;

c) Served or is on formal probation or parole for any offense in this section;

d) A conviction (or plea of guilty or nolo contendere) in any state for any of the following: murder; robbery; pandering; pimping; crimes related to the sale or transportation of controlled substances; crimes involving the use of a weapon; or any other offense involving moral turpitude or any crime that is substantially related to the qualifications, functions, or responsibilities of a taxi driver;

e) A conviction (or plea of guilty or nolo contendere) in any state for a felony other than those listed in subsection (d) of this section within eight (8) years of application; or

f) Any conviction (or plea of guilty or nolo contendere) within five (5) years of application in any state or any final administrative determination of a violation of any statute, ordinance, or regulation reasonably and rationally pertaining to the same or similar business operation which would have resulted in suspension or revocation of a driver’s permit under this Article.

Any person whose application for a driver’s permit is denied is entitled to a de novo hearing before the License Review Board upon the filing of a written request with the License Supervisor. A request for hearing must be filed with the License Supervisor within fourteen (14) calendar days following mailing of a notice of denial.

a) Right to Condition Service Operator’s Permit. The License Review Board may condition any permit in order to ensure that the vehicle for hire or taxicab operation will comport with the public health, safety, and welfare. The permittee must sign an affidavit affirming his or her acceptance of the conditions.

b) Right to Condition Driver’s Permit. The Police Department may condition any driver’s permit at any time in order to ensure that a driver’s operation of a vehicle for hire or taxicab within the City will comport with the public health, safety and welfare. The permittee must sign an affidavit affirming his or her acceptance of the conditions.

c) Application to Change Conditions. The License Review Board may change, modify or eliminate any conditions previously placed on a permit, upon its own motion or upon written request of the permittee, if it finds that the reasons for the original imposition of such conditions have been cured or no longer exist. Applications to change conditions will be noticed and set for public hearing in a manner consistent with Section 33.17.070.

No permit issued under this Article will be sold, transferred, assigned, mortgaged or otherwise conveyed without the prior consent of the License Review Board, and any sale, transfer, assignment, mortgage or otherwise conveying any such permit without the prior consent of the Board will render the permit automatically void.

a) Every service operator must pay an annual per-vehicle operating permit fee in an amount established by resolution of the City Council. Required fees must be paid at the time an application for a permit or renewal is submitted.

b) Every operating permit issued under this Article will terminate at the expiration of one (1) year from the date of its issuance unless revoked prior to said termination. Any renewal of an operating permit issued under this Article will be pursuant to the same requirements, procedures, provisions and regulations set forth in this Article for an original permit, except as otherwise provided. A service operator may not drive a taxicab or vehicle for hire without also possessing a current taxicab or vehicle for hire driver’s permit and otherwise satisfying all requirements of this Article pertaining to City approval of taxicab and vehicle for hire drivers. Every service operator must provide written notification to the License Supervisor upon the termination or resignation from employment of any person holding a driver’s permit.

The License Supervisor will issue an identification decal for each taxicab and vehicle for hire approved during the permit application process.

Every taxicab and vehicle for hire driver and service operator will be jointly and severally responsible for all of the following requirements. Each service operator and driver must:

a) Maintain, at all times in full force and effect insurance as required by Section 33.17.050(g).

b) Maintain, at all times, valid business licenses for the City of Torrance.

c) Display at all times on each taxicab or vehicle for hire a valid taxicab or vehicle for hire identification decal issued by the License Supervisor. The identification decal must be permanently affixed to the lower left corner of the rear windshield of the vehicle so that it is clearly visible from the outside of the vehicle. If, because of the presence of other stickers or decals required by law, the decal cannot be affixed on the lower left corner of the rear windshield, the decal must be attached to the vehicle in a conspicuous location, as close as possible to the lower left corner of the rear windshield.

d) Keep an accurate, legible record of all passengers carried, the pick up and drop off points, and the date and time carried. This record must be available for at least one (1) year for review by the License Supervisor and to make determinations of where the taxicab company is substantially located.

e) Not, when otherwise available for hire, refuse to transport anyone requesting a ride except under the following circumstances:

1. The transportation requested is such that the driver may not legally accept such passenger;

2. The driver has reasonable cause to believe that the proposed passenger will refuse to pay or cannot pay the fare; or

3. The proposed passenger is disorderly, engaged in the commission of any crime, or is otherwise unfit to be transported as a passenger.

f) Display a photo I.D. badge identifying the driver’s association with permitted taxicab or vehicle for hire service.

g) Keep the taxicab or vehicle for hire in good mechanical condition and in compliance with any and all applicable rules and regulations.

h) Charge only those rates as submitted on the application or such rates as have been approved by the License Review Board.

i) Display in full view of passengers in both the front and the rear seat, in letters and figures which are clearly legible a schedule of rates to be charged.

j) Keep the taxicab or vehicle for hire in a clean and sanitary condition.

k) Participate in periodic testing for controlled substances and alcohol, must report the results thereof, as specified in Government Code Section 53075.5(b)(3), must test negative for drugs and/or alcohol as required in said Code Section, and must carry in his or her vehicle a certificate of compliance with the provisions described in this subsection.

l) Not permit any person to operate a taxicab unless such person is authorized to operate a taxicab pursuant to this Article.

m) Drive passengers to their point of destination by the most direct practical route, unless specifically directed otherwise by such passengers.

n) Surrender the taxicab or vehicle for hire driver’s permit to the City if no longer employed by a City-permitted service operator.

o) Ensure that each driver operating within the City maintains a valid California driver’s license at all times.

p) Perform a yearly inspection of each vehicle approved by the City as part of his or her vehicle for hire or taxicab service. The inspection must be made by a facility registered with the Bureau of Automotive Repair or a facility certified by the National Institute for Automotive Service Excellence. Inspection records, signed by the mechanic or repair dealer, must be maintained in the business office of the service operator attesting that the vehicle has been inspected and is in good working order. A vehicle for hire or taxicab which has been inspected pursuant to the requirements of the City or County of Los Angeles taxicab regulations may maintain proof of that inspection in lieu of the inspection required by this section.

q) Permit any police officer of the City to inspect or thoroughly examine any taxicab or vehicle for hire at any time.

a) At its discretion, the City Council may permit the License Supervisor to locate, designate, and approve taxicab stands, which will be available for the exclusive use of City-approved taxicabs. Any taxicab company established may be restricted by the City, which would require each interested taxicab company to complete the service operator’s permit process and corresponding driver’s permit process for each driver.

b) Established taxicab stands will be in operation twenty-four (24) hours of every day, unless otherwise provided by the License Supervisor.

c) No taxicab will remain standing unless it is attended by a driver, except when necessary to assist passengers in loading or unloading.

a) Taxicab companies may set their rates and fares and use flat rate pricing.

b) The taxicab company may use any type of taximeter, device or technology approved by the Division of Measurement Standards to calculate fares, including the use of Global Positioning System metering; provided, that the device or technology complies with Section 12500.5 of the Business and Professions Code and with all regulations established pursuant to Section 12107 of the Business and Professions Code.

Any permit described under this Article may be immediately suspended by the Police Department or License Supervisor if either deems it necessary to remedy an immediate threat to the public health, safety or welfare, or failure to maintain any insurance required by this Article. Repeated failure to maintain required insurance will constitute grounds for revocation.

No suspension made pursuant to this Section may exceed fifteen (15) days pending a hearing before the License Review Board.

In the event the License Review Board has reasonable cause to believe that grounds exist to revoke any permit issued pursuant to this Article, a written notice of intent to revoke will be served by mail upon the permit holder. Unless timely appealed, the revocation will be effective as of midnight on the date specified in the notice which will not be less than twenty-one (21) calendar days following the date of mailing of the notice.

Any taxicab or vehicle for hire service operator or driver having a permit revoked will not be eligible to apply for another permit for one (1) year after the effective date of revocation.

The License Review Board may instead of revocation provide a permit holder with an opportunity to cure certain violations, or may place certain conditions on the permit where it finds that grounds for revocation of the permit exist or that the permit holder’s activities have been conducted in a manner detrimental to the public health, safety or welfare.

A service operator’s permit may be denied or revoked by the License Review Board for any of the following reasons:

a) Failure to maintain vehicles in good and safe order and in compliance with all laws;

b) Any false, misleading or fraudulent statement made on the application for a service operator’s permit;

c) Failure to pay any fees required under this Article;

d) Repeated and persistent violations by the service operator or the service operator’s drivers of the traffic and motor vehicle laws of the City, County or State;

e) Employment of a driver who does not have a valid California driver’s license;

f) Poor safety record or a record of complaints with respect to the operation of the vehicle for hire or taxicab service within the City or other operating areas outside the City;

g) Charging rates in excess of the amounts stated in the permit application;

h) Failure to procure, post or maintain in effect approved comprehensive automobile liability insurance as required under Section 33.17.050(g); a temporary lapse in insurance coverage will result in immediate suspension pursuant to Section 33.17.190;

i) Commission of a crime involving moral turpitude that is substantially related to operation of a taxicab or vehicle for hire service by the applicant, his or her agent or employee, or any person connected or associated with the applicant as a partner, director, officer, stockholder, associate or manager;

j) Failure to comply with all applicable health, zoning, fire, building and safety laws of the State of California and the City for buildings, structures, premises and equipment located within the City and used to conduct the vehicle for hire or taxicab service activity;

k) Detriment to the public health, safety or welfare due to the operation of the vehicle for hire or taxicab service;

l) Violation by the service operator, or any of his employees or agents, of any rule or regulation adopted by any governmental entity with respect to the applicant’s operation of a vehicle for hire or taxicab service in other operating areas or within the City;

m) Determination that the permit is not justified by public convenience and necessity. In making this determination, the Board may take into account all facts which it deems pertinent and proper, including, but not limited to, whether:

1. The applicant has complied with all of the provisions of the Torrance Municipal Code;

2. The applicant is financially responsible;

3. The applicant has sufficient liability insurance coverage to operate a taxicab or vehicle for hire service;

n) Failure to comply with the requirements of Section 33.17.150;

o) Failure to satisfy, or violation of, any requirement of this Article.

Any interested person, applicant or permittee may seek review of any action of the License Review Board in accordance with the provisions of Section 11.5.1.

This Article does not apply to any public transportation service being performed pursuant to a contract with the City or with any other public entity in this State.