Valet companies in the City of Los Angeles would be required to obtain permits and insurance before driving customers’ cars under an ordinance considered Wednesday by the City Council.

The Valet Parking Operator Permit Program is intended to stop valets from parking cars in  neighborhoods and give drivers a way to protect their vehicles from theft and damage. Once the L.A. City Council signs off on the final ordinance in another 60-to-90 days, the program will be phased in over a six-month period. The first neighborhood to see the permit program in action will be Hollywood.

“You’ll find upwards of six valet companies competing against one another on a one- to two-block stretch,” Councilman Eric Garcetti said of the Hollywood area.

“Don’t get me wrong, competition is great. However, when you have valet companies that are not insured, they’re not endorsed or affiliated to any local business, and they’re monopolizing on-street metered spaces and parking cars in our neighborhoods, then you have a serious problem,” he said.

The ordinance would prevent valet drivers from parking cars on city streets, at parking meters, or in residential neighborhoods.

Drivers will have to undergo background checks and receive permits from the Police Commission. Enforcement will be complaint-driven, and violators could face fines. 

The permit program would not apply to valet drivers hired for private events.