The Local Government Association (LGA) said current legislation was "confusing" and "utterly outdated".
It has called for the drivers of speciality and novelty vehicles to be vetted for criminal records and for their vehicles to be safety compliant.
It said a single licensing scheme would also allow councils to ban rip-off operators too.
Last month, a rickshaw driver was filmed trying to charge tourists Â£206 for a mile-long ride from Oxford Circus to Marble Arch.
London mayor Boris Johnson said pedicab drivers should not be allowed "to take advantage of" passengers in this way and renewed his call for greater regulation.
"Party limousines, party buses and rickshaws are growing in popularity and it is imperative drivers and vehicles come under the same rigorous scrutiny as licensed taxis," said Councillor Tony Page, the licensing spokesman for LGA.
He said there ought to be a consistent and fair approach towards vehicle licensing. "While there are many reputable firms, it is vital a few rogue operators do not drag down the sector."
Vehicle licensing regulations, source: Local Government Association
The LGA said any future legislation should be based on the Law Commission's draft bill published last year, to make the licensing regime "fit for the 21st Century."
Rickshaws operate legally but without regulation in London.
Mr Johnson is lobbying government to give Transport for London extra powers to introduce regulation in this area, his spokesman said.
There is a voluntary code that rickshaw drivers can sign up to via the The London Pedicap Operators Association (LPOA) that works with Transport for London, the mayor's office and the Metropolitan Police.
A spokesman for the LPOA said rickshaws had been operating in London since 1998 and added vibrancy and colour to London's streets, as well as emission-free transport.
Party buses, limousines and rickshaws should be governed by the same rules as London black cabs, councils have said.