Government Affairs Consulting accepted an invitation to team with the Greater California Livery Association to represent California's Limousine Industry in legislative and regulatory matters impacting the ability of limousine operators to serve their clients. Initially, Government Affairs Consulting focused on defeating legislation that would have allowed local agencies to regulate limousine operators and require licensing fees to be paid to local governments in every city or county that limousine operators served. We were successful in defeating that legislation. We joined forces with the California Public Utilities Commission to beat back a proposal to require criminal background checks of all limousine operators and drivers in reaction to ongoing concerns regarding potential terrorist activity in California's airports. In fact, no legislation detrimental to the owners of limousine companies has been adopted by the California Legislature since GCLA has teamed with Government Affairs Consulting.

Our team has been able to amend California law to recognize the limousine industry in the 21st Century. We've redefined "limousine" to include SUVs, the resulting considerable savings to operators. We redefined "medical transportation vehicle" to save our operators the costs being assessed through fines by local police authorities. We passed legislation to allow transportation in large vehicles for students attending school-sponsored activities.

We have represented California's limousine industry in proceedings before city and airport commissions on matters that might impair your ability to operate your business efficiently and profitably. We've engaged, on a professional, informed and successful basis, with Los Angeles, Burbank, Orange County, San Diego, Oakland, San Francisco, San Jose and Sacramento airports to fight potentially exorbitant penalty and fee increases, increases that directly affect the profitability of your business.

That was then, what about NOW!

GCLA is sponsoring legislation, in cooperation with the California Public Utilities Commission that would eliminate the tri-annual CPUC permit renewal requirement that will result in significant cost savings to limousine operators. Our legislation will include redefining "charter-party carrier" to include a rented vehicle operated by a hired driver, an attempt to protect the traveling public from "chauffeur drive schemes." The result of this effort will be to place "chauffeur drive" programs under the jurisdiction of the California Public Utilities Commission and require appropriate vehicle safety inspection, insurance and permitting. In an effort to increase enforcement of laws and regulations regarding "bandit operators," our legislation will provide for CPUC suspension or revocation of an operating permit for failure to comply with airport regulation and allow for vehicle impoundment for violation of operating as a "charter-party carrier" without a valid certificate or permit issued by the CPUC anywhere within the state of California.

GCLA has petitioned the California Public Utilities Commission to increase fines and penalties imposed on unlicensed or uninsured limousine operators, to reduce the time period from suspension of the CPUC permit to revocation and to increase fees associated with re-instatement following permit revocation.

GCLA is at work for you. Our goal is to protect limousine operators from unreasonable fees, assessments and regulations that impact your ability to operate your company efficiently and profitably. At the same time, we are committed increasing awareness and understanding of the role and needs of your industry by public officials at the state and local level. It is critical that legitimate limousine operators not be victimized by the activities of those who operate illegally. We must do everything possible to rid the limousine industry of those individuals who insist on operating in violation of California law and regulation. We will do this at every level of government in the state. The integrity of your industry, and your business will determine our future success.

PUC Investigations Result in Enforcement Actions and Fines Imposed on Operators

The California Public Utilities Commission CPUC Transportation Enforcement Section, took the following enforcement actions against limousine, bus and shuttle companies for violations of the Public Utilities Code and CPUC rules and regulations during the fourth quarter of 2009.

Fifty-six companies were cited and fined (totaling $51,250) for one or more of these violations: Administrative Citation 

1. Engaged employees without procuring evidence of workers' compensation insurance
2. Failed to comply with G.O. 157 rules (no prearrangement, waybills, failed to maintain a current equipment list on file, failed to report the seating capacity of vehicles in operation
3. Failed to enroll drivers in a mandatory drug and alcohol program
4. Failed to enroll drivers in DMV Pull Notice program
5. Operated at airport without a valid CPUC permit
6. Operated without a valid authority (suspension, revocation, expiration, or unlicensed)
7. Operated without evidence of PLPD insurance in effect and on file

Cease and Desist Notices

One hundred-fourteen companies were issued cease and desist notice for one or more of these violations:  

1. Engaging employees without evidence of workers' compensation insurance
2. Engaging unlicensed sub carriers
3. Failing to maintain waybills
4. Operating and advertising without a valid permit (unlicensed, suspended, revoked, or expired)
5. Operating at airport without a CPUC permit
6. Operating beyond the scope of their operating authority
7. Operating without evidence of PLPD insurance in effect

The California Public Utilities Commission {CPUC) will be continuing its multi-agency strike force operations on passenger carriers (limousines, shuttles and motor coaches) throughout the State at all major airports, sporting venues, wineries, prom locations and other locations where there is an anticipated high visibility of these types of vehicles.

The California Public Utilities Commission {CPUC) Enforcement Team is committed with these type of operations to ensure that operators are properly licensed with the CPUC.

 

Organized labor's membership in the private sector has plummeted below 8 % - an all time low. To address this problem, unions have turned to an aggressive legislative agenda designed to tilt the scales in their favor. Among the items on their priority list are the Employee Free Choice Act (EFCA) and the Re-Employment of Skilled and Professional Employees and Construction Trade Workers Act (RESPECT Act).

At the top of labor's wish list is EFCA, a bill that would radically alter 75 years of labor law governing the representation rights of employees. Specifically, EFCA would fundamentally change three critical aspects of the National Labor Relations Act (NLRA) by: 

1. Providing for the elimination of NLRB supervised secret ballot elections in favor of "Card Check" thereby enabling unions to organize employees merely by convincing or coercing a major of the to sign authorization cards.
   
2. Changing the rules of bargaining by imposing mandatory interest arbitration on those parties who fail to reach an agreement on their own within 130 days, and subjecting employers to substantially increased penalties and remedial relief.

The RESPECT Act is an effort to narrow the scope of individuals who would be considered "supervisors" under the NLRA. If passed, it would substantially reduce the number of employees considered supervisory, thereby increasing the number of employees eligible for union representation. From a practical standpoint, the RESPECT Act would also decrease the number of employees permitted to campaign on behalf of the employer in response to a union organizing effort.

In the wake of President-elect Obama's victory, the business community has been flooded with recommendations on how best to respond to these proposed pieces of legislation. Some suggestions may appear to be severe and even cost-prohibitive. At this stage, however, it remains to be seen whether these provisions will become law as proposed or whether compromise bills will be crafted and signed into law. We recommend a balanced approach, taking into account lingering uncertainty in the legal landscape and the unique challenges presented by the current economic climate.

Regardless of whether some or all of these bills become law, one thing remains clear: employers can anticipate a surge in organizing activity in the first months of an Obama Presidency. Should the card check provisions of EFCA become law, those employers who are ill-prepared could wake up to find their employees unionized by a reinvigorated labor movement.

Consequently, all employers are best served by acting now to prepare for the onset of stealthy, but aggressive, card-signing efforts. Those who choose to wait until the legislation is actually passed may find that they are too late to adequately protect their organizations. Employers should pursue a proactive strategy designed to inoculate and educate employees long before the initial signs of union activity. Fortunately, time remains for concerned employers to prepare adequately by rolling out their plans through a structured approach, as outlined in this document.

The California Public Utilities Commission CPUC and a multi task force consisting of the County District Attorney's office and EDD Labor Division throughout California will be concentrating their efforts in the 2010 year on limousine companies operating without Workers' Compensation Insurance and not reporting payroll taxes. The task force plans to aggressively pursue operators operating their companies in this manner.

By California Law if you operate a business with employees you must provide Workers' Compensation Insurance. Workers' Compensation Insurance is based and computed by your payroll. The multi task force has received numerous complaints from the livery industry of companies operating without Workers' Compensation Insurance and companies not reporting their payroll. The task force estimates that companies operating without Worker' Compensation Insurance and not reporting payroll are saving an estimated additional 30% each month. This additional savings and cash flow allows operators operating in this way a huge advantage over their competitors who are having to operate legally.

Another area of concern for the task force are companies who do have a Workers' Compensation Insurance policy, but are not reporting all of their payroll. Example, XYZ company has fifteen employees half of them are having taxes reported and the other half are receiving cash or a check for the wages earned. In this example the operator is in violation of Workers' Compensation Insurance and Payroll Taxes Premium Fraud. Operators should be fully aware if they are operating in this manner and are found guilty, they are looking at large fines, a felony on their record and potential jail time.

The multi task force see these illegally operating companies making it very difficult for the legitimate companies to be on a level playing field. The Greater California Livery Association GCLA will keep you updated with developments from these ongoing investigations during the year.