May 21, 2010

SUMMARY: The California General Assembly passes AB 2572 by an overwhelming margin on Friday morning. The bill, which would regulate Avis WeDriveU statewide in the same way as limousine operators, now moves to the Senate for further action.

SACRAMENTO, Calif. -- A bill that would put Avis WeDriveU under the same regulatory authority as licensed limousine operators sailed through the California General Assembly Friday on a 55-2 vote.

In coming weeks, AB 2572 will move through State Senate committees for approval and eventual referral to the Senate floor for a vote.

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Limousine Team,

I am excited to announce that I am now a Board Member with the GCLA. I would like to take this opportunity to encourage you to become a member of the GCLA if you are not already. There are many benefits to becoming a member - but the most important one is to be able to continue the funding of the Lobbyists that work on our behalf to keep the laws and regulations in California working to your benefit. I have had the opportunity to review the amount of money that is spent on legislation to keep the laws working for you, at the end of 2008 the Association had approximately $55k in their account, at the end of 2009 they had approximately $12k - it cost $4k per month just for lobbyists alone - your membership fee's and any additional donation you can make at this time will help keep you on the road with pending legislation. http://gcla.org/join-gcla.html

"Become a Member of the Greater California Livery Association (GCLA)"

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Travel industry experts are cautiously optimistic about the travel industry based on stabilization of Third and Fourth Quarters 2009 revenues. Airline ticket sales and reservations for hotel rooms started to stabilize, which could signal that the worst may be over.

In the limousine business, operators are experiencing similar signs. If nothing else goes wrong, we could agree that the worst may be over. However, there are lots of "If's".

Anything can destabilize this fragile economy, like the sudden increase in the price of oil, another terrorist attack, more financial bad news, continuing detrimental government policy, to name a few.

Admittedly, we as limousine operators cannot do anything about controlling oil prices, terrorist activity or more financial bad news. But we can become politically active together with the rest of the travel industry to protest against bad government policy like the anti-corporate travel rhetoric and the non-essential travel ban that came out of Washington D.C. and Sacramento during the first two quarters of 2009. The GCLA believes that this is bad public policy because the travel industry employs 2.4 million Americans, generates $240 billion in sales and $38 billion in tax revenues.

The U. S. Travel Association has been providing the leadership to other travel-related associations to combat this public policy. The associations for the airlines, hotels, rental cars, bus companies, taxi companies, restaurants, resorts, convention and visitors bureaus across the country have joined together to create a rapid response team to combat the demonization of business travel.

In addition, U.S. Travel is in the process of passing legislation through the House and Senate, called the Travel Promotion Act (TPA) to create promotions targeting the international traveler. They are also active in expanding a Visa Waiver Program to encourage the international visitor to come to the U.S. and working vigorously to stop the hysteria over such things in the news like Swine Flu.

The National Limousine Association (NLA) is targeting legislation to prevent the airports from overreaching and increasing fees on duly licensed limousine company. They have introduced S 1764 "The Prevention of Unreasonable Fees Act" to clarify application of the RIDE Act. The purpose of the RIDE act was to stop abusive airport fees. This new legislation prohibits any transportation terminal, receiving federal funding from charging a special fee, other than that charged the general public, as long as that ground transportation provider is duly licensed by its "home" state.

The Greater California Livery Association (GCLA) is sponsoring legislation this year to reduce the number of bandit operators by  increasing fines on unlicensed and uninsured operators;  protect duly licensed and insured operators from unreasonable fines and regulation as well as  "chauffeur drive schemes".  The mission of the GCLA together with our lobbyist Government Affairs Consulting in Sacramento is to protect the legal livery operators in California.

The U.S. Chamber of Commerce is actively combating anti-business legislation. Specifically they have launched the Workforce Freedom Initiative which is a grassroots program to stop Card Check and defeat "Unions" anti-growth and anti-competitive agenda. You can actively participate by joining your own local chamber of commerce.

This new year of 2010 is a year for political activism for business owners. If you value your business, you must participate in the grassroots efforts launched by these associations to protect your businesses, employees, and families.

The GCLA is encouraging limousine owners to visit the websites of the associations mentioned; join your local chamber of commerce, support the NLA and GCLA and become part of the rapid response teams that keep our government representatives in check.

The GCLA is committed to keep you up to date on legislation and political activity that could negatively affect your business.

Recommended websites:

www.ustravel.org
www.meetingsmeanbusiness.org
http://www.nla.org
www.gcla.org (This site)
www.uschamberofcommerce.org

 

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.