Really Petaluma, CA?

Got word today that paratransit is trying to require that Service Dogs ride in kennels.  I don't have too many details yet, but really Petaluma?  If any place in the U.S. should have a handle on the laws regarding Service Animals, I'd think it'd be Petaluma.  Guide Dogs for the Blind, Canine Companions for Independence and Bergin U are all within a stone's throw.  *sigh*