PORTLAND, Ore. — A new report from the Portland Ombudsman’s office shows there are more than 80 tour companies in Portland that are operating without a license. For more than a decade, licensed tour bus drivers have argued the Portland Bureau of Transportation (PBOT) has done little to address the problem.
"Some of them have gamed the system," said Jeff Davies, the owner of EcoTours of Oregon, talking about non-permitted companies.
Davies, and other permitted guides said slim enforcement of permitting has cost them thousands in revenue.
"I've literally paid the city of Portland $25,000 in the past decade," said Josh Blaize, the owner of Sea to Summit Tours. “And I've lost hundreds of thousands of dollars year after year."
Money isn’t the only concern. It’s unclear how safe non-permitted vans are for travelers.
In 2012, an 11-year-old died after she fell out of the window of a non-permitted party bus. The accident sparked change. In 2014, PBOT created its Regulatory Division, tasked with adding permitting enforcement.
PBOT requires party and charter companies to have a permit, which includes proof of insurance and driver background checks. Though for years, permitted businesses have complained there isn’t enough enforcement, while casting questions on the safety of non-permitted tour vans.
"No one knows if they have insurance," Davies said.
It’s also unclear if non-permitted vehicles pass safety inspections. For offenders operating without a permit, there’s a $1,250 fee on the first offense. That fee doubles on second and third offenses.
City code also allows vehicles to be towed and criminal penalties to be handed out. Though PBOT doesn’t do that, the Portland Ombudsman office wrote in a new report.
Instead, auditors said PBOT reviews company websites before issuing a warning letter. After a warning, PBOT can send a cease-and-desist letter. Though in some instances, auditors found it took PBOT almost two years to send the cease-and-desist letter.
"We really don't know what they're doing," Blaize said of PBOT’s enforcement.
Now auditors say PBOT needs to do more, saying limited enforcement "undermines the core purpose of these rules - to protect public safety." The Ombudsman office recommends PBOT open investigations into 82 non-permitted tour companies on record, and immediately issue citations against offenders, instead of the warnings and apparent investigation delays.
PBOT said they’ll make the changes.
"We can be a little bit more quick to issue a fine in some cases," said PBOT spokesperson Dylan Rivera.
PBOT now plans to crack down in a similar fashion to Colorado, where investigators call companies on a recorded line and ask to book a tour. If vendors agree, investigators use the call as evidence the company is operating without a permit.
According to Portland auditors, Colorado officials believe there are less than 12 of these kinds of unlicensed companies statewide. PBOT hopes the changes make a big difference.
"What we want from these companies is compliance," Rivera said.
There are questions on the legality of recorded phone calls, which PBOT plans to examine. Oregon is a two-party consent state for in-person conversations. Though phone conversations require one-person consent.
Regardless, tour companies are still unsure whether reinvigorated enforcement will suffice.
"I don't think there will be that much more impact because I don't think they have enough boots on the ground to do it," Blaize said.