[House Report 106-1003]
[From the U.S. Government Publishing Office]



106th Congress                                           Rept. 106-1003
                        HOUSE OF REPRESENTATIVES
 2d Session                                                      Part 1

======================================================================



 
          PERMITTING INTERSTATE COMMERCE IN LIMOUSINE SERVICE

                                _______
                                

                October 25, 2000.--Ordered to be printed

                                _______
                                

  Mr. Bliley, from the Committee on Commerce, submitted the following

                              R E P O R T

                        [To accompany H.R. 1689]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Commerce, to whom was referred the bill 
(H.R. 1689) to prohibit States from imposing restrictions on 
the operation of motor vehicles providing limousine service 
between a place in a State and a place in another State, and 
for other purposes, having considered the same, report 
favorably thereon with an amendment and recommend that the bill 
as amended do pass.

                                CONTENTS

                                                                   Page
Amendment........................................................     1
Purpose and Summary..............................................     2
Background and Need for Legislation..............................     2
Hearings.........................................................     4
Committee Consideration..........................................     4
Committee Votes..................................................     4
Committee Oversight Findings.....................................     4
Committee on Government Reform Oversight Findings................     4
New Budget Authority, Entitlement Authority, and Tax Expenditures     4
Committee Cost Estimate..........................................     4
Congressional Budget Office Estimate.............................     4
Federal Mandates Statement.......................................     5
Advisory Committee Statement.....................................     5
Constitutional Authority Statement...............................     6
Applicability to Legislative Branch..............................     6
Section-by-Section Analysis of the Legislation...................     6
Changes in Existing Law Made by the Bill, as Reported............     6

                               Amendment

      The amendment is as follows:
      Strike all after the enacting clause and insert the 
following:

SECTION 1. REGULATION OF INTERSTATE LIMOUSINE SERVICE.

  It shall be unlawful for any State, political subdivision or agency 
of a State, interstate agency, or political agency of 2 or more States, 
to restrict interstate commerce by the enforcement of any law, rule, 
regulation, standard, or other provision having the force and effect of 
law that restricts the operation of a motor vehicle providing pre-
arranged ground transportation service if the motor carrier providing 
such service--
          (1) is registered under chapter 139 of title 49, United 
        States Code, for the interstate transportation of passengers;
          (2) meets all applicable requirements of the State or States 
        in which the motor carrier is domiciled or registered to do 
        business; and
          (3) was hired pursuant to a contract for--
                  (A) travel from one State, including intermediate 
                stops, to a destination in another State; or
                  (B) travel from one State, including 1 or more 
                intermediate stops in another State, to a destination 
                in the original State.

SEC. 2. REGULATION OF INTERSTATE TAXICAB SERVICE.

  Nothing in this Act shall be construed as subjecting taxicab service 
to regulation pursuant to chapter 135 or section 31138 of title 49, 
United States Code.

SEC. 3. DEFINITIONS

  For purposes of this Act
          (1) Motor carrier.--The term ``motor carrier'' has the same 
        meaning given such term by section 13102(12) of title 49, 
        United States Code.
          (2) Pre-arranged ground transportation service.--The term 
        ``pre-arranged ground transportation service'' means 
        transportation for a passenger (or a group of passengers) 
        arranged in advance (or operated on a regular route or between 
        specified points) and provided in a motor vehicle with a 
        seating capacity not exceeding 15 passengers (including the 
        driver).
          (3) State.--The term ``State'' means the 50 States and the 
        District of Columbia.
          (4) Taxicab service.--The term ``taxicab service'' means 
        passenger transportation in a motor vehicle having a capacity 
        of not more than 8 passengers (including the driver), not 
        operated on a regular route or between specified places, and 
        that
                  (A) is licensed as a taxicab by a State or local 
                jurisdiction; or
                  (B) is offered by an entity or individual that 
                provides primarily local, demand response 
                transportation.
          (5) Demand response transportation.--The term ``demand 
        response transportation'' means passenger transportation 
        provided pursuant to a request communicated to the driver at a 
        point in time relatively close to the pick-up time requested by 
        the passenger, and does not include transportation provided 
        pursuant to an advance reservation, notice of which is 
        communicated to a designated driver soon after the reservation 
        is made and numerous hours or days before the pick up time 
        requested by the passenger.

                          Purpose and Summary

    H.R. 1689 is a bill to prohibit States from imposing 
restrictions on the operation of motor vehicles providing 
limousine service between a place in a State and a place in 
another State. The legislation prohibits a State, local 
jurisdiction, public authority or other similar entity from 
enforcing any law, ordinance, rule or regulation that has the 
effect of restricting the operation of a motor vehicle 
providing pre-arranged ground transportation service if the 
motor carrier providing that service is registered with the 
Secretary of Transportation, meets all applicable State 
requirements in the State in which they are domiciled, and was 
hired pursuant to a contract for interstate travel.

                  Background and Need for Legislation

    Travel by limousine and sedan, once reserved for only the 
wealthy, is an increasingly popular form of transportation. 
Because limousine travel is always pre-arranged, business 
travelers may secure a fixed rate and certainty in 
availability. Further, many businesses keep limousine companies 
on retainer to provide after-hours transportation to employees 
working overtime as an alternative to other forms of 
transportation or in inclement weather.
    With the increase in the popularity of limousine 
transportation has come questions associated with limousine 
trips that cross State lines. Currently, the Department of 
Transportation regulates the requirements of interstate 
transportation of passengers and property. Additionally, States 
and localities regulate the pickup and drop-off of passengers 
within their jurisdictions ostensibly to regulate intrastate 
transportation of passengers and property on an intrastate 
basis, as well as the ``safety'' of out-of-State carriers. 
Certain localities and States, such as New York City, have 
developed a reputation as vigorously enforcing local ordinances 
and regulations to purposely prevent out-of-State carriers from 
operating within their borders.
    For instance, if a person flies into the airport in Newark, 
New Jersey, and wants a limousine to take him to his hotel in 
New York city, the limousine would be able to drop him off, but 
it would be unlawful for the limousine to pick him up again to 
return him to the airport at the conclusion of his trip. Local 
New York ordinances require a license or ``medallion'' to pick 
up passengers within the city, a prohibitively expensive 
license for an out-of-State company which only occasionally 
needs to travel in the city. Thus, even if the limousine 
operator were able to drop off his client in the city 
(something that is increasingly monitored by local 
authorities), he would be unable to pick the client up again 
for the return trip.
    Limousine operators who violate the law face the 
possibility of stiff fines, imprisonment, and confiscation of 
the vehicle. Similar situations exist in other localities, 
including Las Vegas and the District of Columbia. Further, New 
Jersey recently enacted legislation restricting the operation 
of out-of-State limousine services in New Jersey. Some view 
this statute as a reciprocal act for New York's actions against 
out-of-State drivers.
    Thus, the local law interferes with the ability of an 
individual to contract for round-trip service from a point in 
one State to a point in another State, and back again. Further, 
local actions are leading to retaliatory actions by other 
States and localities, presenting a threat to continued 
interstate commerce transportation of passengers.
    In a related matter, the Committee is aware that in some 
States providers of intrastate pre-arranged ground 
transportation service between or among points in two or more 
local jurisdictions or municipalities must secure permits from 
each local jurisdiction or municipality as a prerequisite to 
making a pick up in that locality. The Committee notes that 
such a requirement for pre-arranged ground transportation 
service that is not taxicab service (e.g., limousine service) 
could be alleviated by adoption of State legislation 
establishing a State licensing requirement, mooting the need 
for multiple local permits. The Committee also recognizes that 
some States may deem it prudent to grant local jurisdictions or 
municipalities the authority to impose a permitting requirement 
in regard to movements performed between or among points in the 
same local jurisdiction or municipality. However, such matters 
remain reserved to the States, and this legislation does not 
affect those laws and ordinances.

                                Hearings

    The Committee on Commerce has not held hearings on the 
legislation.

                        Committee Consideration

    On September 14, 2000, the Committee on Commerce met in 
open markup session and ordered H.R. 1689 reported to the House 
with an amendment by a voice vote.

                            Committee Votes

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires the Committee to list the record votes 
on the motion to report legislation and amendments thereto. 
There were no record votes taken in connection with ordering 
H.R. 1689 reported. A motion by Mr. Bliley to order H.R. 1689 
reported to the House, with an amendment, was agreed to by a 
voice vote.
    The following amendment was agreed to by a voice vote:

          An amendment in the nature of a substitute by Mr. 
        Blunt, No. 1, narrowing the scope of the bill to cover 
        only interstate travel of pre-arranged ground 
        transportation service.

                      committee oversight findings

    Pursuant to clause 3(c)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee has not held oversight 
or legislative hearings on this legislation.

           committee on government reform oversight findings

    Pursuant to clause 3(c)(4) of rule XIII of the Rules of the 
House of Representatives, no oversight findings have been 
submitted to the Committee by the Committee on Government 
Reform.

   new budget authority, entitlement authority, and tax expenditures

    In compliance with clause 3(c)(2) of rule XIII of the Rules 
of the House of Representatives, the Committee finds that H.R. 
1689, a bill to prohibit States from imposing restrictions on 
the operation of motor vehicles providing limousine service 
between a place in a State and a place in another State, would 
result in no new or increased budget authority, entitlement 
authority, or tax expenditures or revenues.

                        committee cost estimate

    The Committee adopts as its own the cost estimate prepared 
by the Director of the Congressional Budget Office pursuant to 
section 402 of the Congressional Budget Act of 1974.

                  congressional budget office estimate

    Pursuant to clause 3(c)(3) of rule XIII of the Rules of the 
House of Representatives, the following is the cost estimate 
provided by the Congressional Budget Office pursuant to section 
402 of the Congressional Budget Act of 1974:

                                     U.S. Congress,
                               Congressional Budget Office,
                                Washington, DC, September 28, 2000.
Hon. Tom Bliley,
Chairman, Committee on Commerce,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 1689, a bill to 
prohibit states from imposing restrictions on the operation of 
motor vehicles providing limousine service between a place in a 
state and a place in another state, and for other purposes.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contacts are James 
O'Keeffe (for federal costs), and Victoria Heid Hall (for the 
state and local costs).
            Sincerely,
                                          Barry B. Anderson
                                    (For Dan L. Crippen, Director).
    Enclosure.

H.R. 1689--A bill to prohibit states from imposing restrictions on the 
        operation of motor vehicles providing limousine service between 
        a place in a state and a place in another state, and for other 
        purposes.

    H.R. 1689 would prohibit states, state agencies, or 
political subdivisions of states from restricting interstate 
limousine service. Providers of interstate limousine services 
would continue to be governed by federal regulations on 
interstate commerce. H.R. 1689 would not have a significant 
impact on the federal budget because it would not expand the 
regulatory or enforcement authorities of federal agencies. The 
bill would not affect direct spending or receipts; therefore, 
pay-as-you-go procedures would not apply.
    The restriction on regulatory activities of state and local 
governments would be an intergovernmental mandate as defined in 
the Unfunded Mandates Reform Act (UMRA). CBO estimates that the 
cost of this mandate, primarily lost revenues from fines and 
penalties, would be well below the threshold established in 
UMRA ($55 million in 2000, adjusted annually for inflation). 
H.R. 1689 contains no new private-sector mandates as defined in 
UMRA.
    The CBO staff contacts are James O'Keeffe (for federal 
costs), and Victoria Heid Hall (for the state and local costs). 
This estimate was approved by Robert A. Sunshine, Assistant 
Director for Budget Analysis.

                       federal mandates statement

    The Committee adopts as its own the estimate of Federal 
mandates prepared by the Director of the Congressional Budget 
Office pursuant to section 423 of the Unfunded Mandates Reform 
Act.

                      advisory committee statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act were created by this 
legislation.

                   constitutional authority statement

    Pursuant to clause 3(d)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee finds that the 
Constitutional authority for this legislation is provided in 
Article I, section 8, clause 3, which grants Congress the power 
to regulate commerce with foreign nations, among the several 
States, and with the Indian tribes.

                  applicability to legislative branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

             section-by-section analysis of the legislation

Section 1. Regulation of interstate limousine service

    Section 1 clarifies that a State or local government or an 
interstate agency may not regulate pre-arranged interstate 
ground transportation provided by operators that meet all 
applicable licensing requirements under State law and are 
registered to transport passengers in interstate commerce 
pursuant to chapter 139 of title 49, United States Code.
    Interstate ground transportation includes any trip in which 
one or more passengers are picked up in one state and taken to 
any intermediate or final destination in another state. For 
purposes of this rule, an intermediate destination is a 
destination where one or more passengers expect to conduct 
personal or business activities before continuing their trip. A 
destination is an intermediate destination only if the driver 
does not perform any service for a second passenger or group of 
passengers while waiting to transport the first passenger(s) to 
the next destination.

Section 2. Regulation of interstate taxicab service

    Section 2 is a savings clause which provides that nothing 
in the legislation is to be construed as subjecting taxicab 
service to regulation pursuant to the Secretary of 
Transportation's authority over interstate commerce.

Section 3. Definitions

    Section 3 defines certain terms, including ``motor 
carrier,'' ``pre- arranged ground transportation,'' ``State,'' 
``taxicab,'' and ``demand response transportation.''

         changes in existing law made by the bill, as reported

    This legislation does not amend any existing Federal 
statute.