Powerpoint presentation regarding recent "bandit cab" legislation.

1. CALIFORNIA’S NEW BANDIT CAB LEGISLATION
Paul Marron, Esq.
April 17, 2009
Landmark Square
111 West Ocean Blvd, Suite 1925
Long Beach, CA 90802
p.562. 432.7422
f.562.432.8682
www.marronlaw.com

2. THE BANDIT CAB PROBLEM IN CALIFORNIA

3. THE BANDIT CAB PROBLEM IN CALIFORNIA
In 2008 there were approximately 18,000
legally operating taxicabs in California
In Los Angeles there were approximately
2,000 legally operating cabs and an equal
number of illegally operating cabs.

4. THE BANDIT CAB PROBLEM IN CALIFORNIA
Bandit Cab Operators are Able to Avoid:
•Safety Requirements
•Drug Testing
•Accident Insurance Coverage
•Proper Inspections
•Taximeter Requirements
•Proper Licensing of Their Businesses
•Proper Licensing of Their Drivers

5. THE BANDIT CAB PROBLEM IN CALIFORNIA
Police forces and the California Legislature
Finally Realize that Bandit Cabs are Unfair and
Unsafe.
Many Complaints Have Been Received From
Bandit Cab Customers Including:
•Price Gouging
•Robbery
•Assault
•Sexual Assault

6. THE BANDIT CAB PROBLEM IN CALIFORNIA
In 1999 a bandit driver with two
convictions for drunken driving
and a suspended licensed raced
into a Compton rail crossing and
collided with a Metro Blue Line
train, killing himself and all five
passengers.

7. THE BANDIT CAB PROBLEM IN CALIFORNIA
In 2006, the Los Angeles Taxi
Commission instituted a Bandit
Taxi Enforcement Program jointly
between LAPD and LADOT with
high levels of success.

8. THE BANDIT CAB PROBLEM IN CALIFORNIA
Number of Bandit Arrests and Impounds
in Los Angeles Before and After Bandit Taxicab
Enforcement Program Charter in 2006
1600
1400
1200
1000
Arrests
800
Impounds
600
400
200
0
1997-2005 2006 2007 2008

9. NEW LEGISLATION SB1519 ENACTED JANUARY 1, 2009

10. NEW LEGISLATION
California State Senator Leland Yee (D-San
Francisco) spearheaded and presented SB1519
in the summer of 2008.
This bill passed through the California State
Legislature and was signed into law by
Governor Schwarzenegger on September
30, 2008 to be enacted starting
January 1, 2009.

11. NEW LEGISLATION
Supporters of This Bill Include:
Taxicab Paratransit Association of California
Cabco Yellow (Los Angeles Basin)
City of Huntington Park
City of Los Angeles Board of Taxicab Commissioners President Bruce
Iwasaki
City of Sacramento
City of San Francisco Taxi Commissioners
League of California Cities
Luxor Cabs (San Francisco)
National Cab Company (San Francisco)
United Food and Commercial Workers Local 5
USA Cab Limited (San Diego)
Yellow Cab Cooperative (San Francisco)
Yellow Checker Cab Company, Incorporated (San Jose)

12. NEW LEGISLATION
Legislative Intent:
To implement fines and penalties for bandit cab operators to help enforce
municipal regulation and either 1) halt operation of noncompliant cab
companies or 2) force bandit cab companies to become licensed and
regulated like lawfully operating cab companies.
“Bandit cabs are unfair to the law-abiding taxicab companies and taxi
drivers who must comply with local regulators and pay local fees. [Bandit
Cabs] are also unsafe for the cab riders who unwittingly travel in
unregulated taxicabs with unsupervised taxi drivers. These unregulated
competitors divert business from regulated taxicab companies and
drivers, and do not comply with any city or county mandated safety
provisions. “ California Senator Leland Yee

13. NEW LEGISLATION
As of 2008, the Legislature finds and declares that:
• Advertising and use of telephone service is essential for a
taxicab transportation service to obtain business and conduct
intrastate passenger transportation services.
• Unlawful advertisements constitute “unfair business
practices.”
•Termination of telephone service utilized by taxicabs
operating without proper authority is essential to ensure public
safety and welfare
- California Government Code Section 53075.8

14. NEW LEGISLATION
The Legislature Tackled the Following Problems
with Enforcement:
•Local municipalities power to impound is
ineffective,
•Local municipalities ability to fine bandit cab
operators is not deterrent,
•Laws, as of 2008, did not target phone service
as a viable means to stopping bandit cab
activity.

15. NEW LEGISLATION
Scofflaws may ignore local
“
taxicab licenses and
regulations, but when their
phone lines go down, they’ll lose
their main source of business.”
Senator Leland Yee Author of
SB1519.

16. CHANGES FOR 2009

17. NEW LEGISLATION
Old Law New Law
Now additionally local agencies are
Every city or county is required to :
required to adopt an •Receive complaints regarding
bandit cab activity;
ordinance or
•Investigate the complaints;
resolution regarding •Determine which businesses (if
taxicab transportation any) are legal competitors;
•Inform the bandit cab operators of
service. (California their violation;
Government Code •Within 60 days of informing the
bandit cab operators, institute civil
Section 53075.5) or criminal proceedings.
(California Government Code
Section 53075.7)

18. NEW LEGISLATION
Old Law New Law
1)False Advertising Law Additionally, new changes to
(California Business and the Government Code
Professions Code Section requires every taxicab
17500) transportation service to
2)Advertising a business for include the number of its
which a license is required certificate, license, or permit
without a license is a in every written or oral
misdemeanor (California advertisement (California
Business and Professions Government Code Section
Code Section 16240.) 53075.9(c ).)

19. NEW LEGISLATION
Old Law New Law
These same provisions apply.
State Law allows peace officers
to arrest operators and impound
taxicabs for operating without a
valid local permit at or near
public airports or within two
miles of the Mexican border.
(California Government Code
Section 53075.6)
Local regulators can impound
illegally operating taxicabs.
(California Government Code
Section 53075.6-53075.61)

20. NEW LEGISLATION
Old Law New Law
Misdemeanor offense Fines up to $5,000 per
(California Business and violation for any violation
Professions Code Section of licensing or advertising
16240.) restrictions (California
Government Code
Section 53075.9 (a).)

21. NEW LEGISLATION
Old Law New Law
No authority to target Local Agencies are
phone lines. now authorized to
terminate telephone
service utilized by
taxicabs operating
without proper
authority. (California
Government Code
Section 53075.8)

22. MARRON & ASSOCIATES’ APPROACH TO BANDIT CAB LITIGATION

23. MARRON & ASSOCIATES APPROACH TO BANDIT CAB LIT.
Interference
Interference
Contractual
Intentional
Relations
with city
with
contracts, franc
hises, and
business
licenses
Possible Causes of Action
Law (Cal. Bus.
Prof. 17500)
Advertising
False
Misleading
Advertisements
Cybersquatting
Law (15 USC
Trademark
Trademark
1125)
Dilution
Tradedress
Infringement
Trademark/ Tradename
Infringement
Fraudulent
Practices (Cal.
Conduct
Bus. Prof.
Business
17200)
Unfair
Unfair Conduct
Illegal Conduct

24. MARRON & ASSOCIATES’ APPROACH TO BANDIT CAB LIT.
Lifecycle of Bandit Cab Litigation
Identify New
Bandit Cab
Company
Support via
Seek
Photographs
Permanent
and
Injunction
Declarations
File Contempt
File Complaint
Charges
File Temporary
Restraining
Order/
Preliminary
Injunction

25. MARRON & ASSOCIATES APPROACH TO BANDIT CAB LIT.
Recently we have received a
preliminary injunction and a
hearing for a contempt order
against a Los Angeles Bandit
Cab company.

26. IMPACT AND BENEFITS OF NEW LEGISLATION

27. IMPACTS AND BENEFITS OF NEW LEGISLATION
Reinvigoration of Local Agencies
Los Angeles Taxi
Cities Business License
Commission Bandit Cab
Departments know about
Enforcement Program
the new legislation.
(BTEP) targets for 2009.
Over 90% of
Effective bandit Target for
Jan 2009 All defendants 2009 Limos
Ex: City of Cudahy working with LADOT and
Vehicles are plead and Black
local Police forces to target bandit cabs.
Impounded guilty. 95% Car
for 30 Days conviction Companies.
rate.

28. IMPACTS AND BENEFITS OF NEW LEGISLATION
Whether 2009 will mark the increased enforcement of
Bandit Cab legislation, or a deterrent to Bandit Cab
operators remains to be seen.
Room for improvement:
•Institute a private right of action allowing legal
competitors to cut off phone service to Bandit Cabs.
•Minimum days for impound.
•Allowing immediate removal of Bandit Cab websites.

29. MARRON & ASSOCIATES
Marron & Associates
111 Ocean Blvd Suite 1925
Long Beach, California 90802
(562) 432-7422
(562) 432-8682 fax
www.marronlaw.com
Marron & Associates is a California-based law firm with a national practice focusing
on the interests of on-demand transit operators and issues such as bandit cab
litigation resulting in injunctions and contempt orders; wage and hour lawsuits;
classification of drivers/employees and independent contractors/employees; and
political and regulatory issues affecting the industry, such as union- or otherwise-
backed efforts to organize drivers, regulatory agency investigations, serious
accident/OSHA matters, insurance coverage, and regulatory audits from state
employment departments, workers’ compensation and taxing authorities.
Our national practice includes representation of clients in such diverse areas as
Washington, D.C., San Francisco, Los Angeles, and Denver.