BILL ANALYSIS
AB 951
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Date of Hearing: May 6, 2009
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Kevin De Leon, Chair
AB 951 (Lieu) - As Amended: April 21, 2009
Policy Committee:
UtilitiesVote:13-1
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill increases the range of various fines the Public
Utilities Commission (PUC) can impose on charter-party carriers
who knowingly violate state laws and PUC regulations.
Specifically, this bill:
1)Increases the civil penalty from a maximum of $5,000 to
$7,500.
2)Increases the reinstatement fee from $125 to $1,000.
3)Increases the civil penalty, for a charter-party carrier
operating with a suspended certificate or permit, from a range
of $1,000 to $5,000 to a range of $1,500 to $7,500 per each
day of operation.
4)Changes the fine, for a charter party carrier who violates or
fails to comply with PUC laws and regulations, from a maximum
of $1,000 to a range of $1,000 to $5,000.
5)Increases the maximum fine from $1,000 to $2,500 for every
charter-party carrier who continues to display any identifying
symbol other than the PUC symbol, and who fails to remove an
identifying symbol when required by the PUC.
6)Increases the maximum fine, from $1,000 to $2,000, on every
corporation or person other than a charter-party carrier who
violates state laws or PUC regulations regulating
charter-party carriers.
7)Changes the maximum fine a court may impose following a
AB 951
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conviction for operating as a charter party carrier without a
certificate or permit from $1,500 to $10,000 for a first
conviction and from $5,000 to $25,000 for a second and for
subsequent convictions. Current law allows a maximum fine of
$100,000 for a third and subsequent convictions.
FISCAL EFFECT
Annual increase in fine/penalty revenue, which goes to the
General Fund. Given, that current revenues are about $100,000,
revenues could increase to between $200,000 and $500,000
annually.
COMMENTS
1)Background . Charter-party carriers furnish
limousines-for-hire or passenger charter transportation
service in motor vehicles. Charter-party carriers do not
include vehicles on a set schedule or between fixed termini,
taxi cabs, car rentals, or a city bus. Typical charter party
carriers provide different sized vehicles to take a scheduled
group of people to another location and/or back, such as on
tour buses. The group would usually reserve the vehicle as a
group, and would not reserve a "seat" individually. Current
law requires charter-party carriers to possess a certificate
to operate from the PUC.
2)Purpose . According to the author, this bill is intended to
implement stronger deterrents for charter buses that pose
great harm to passengers. The author states that the current
statutory fines are too low to serve as a deterrent for
charter-party carriers who would rather compromise passengers
safety.
The author cites two recent incidents involving charter-party
carriers who were in violation of the law.
On October 5, 2008, a bus crashed on its way to a casino in
Colusa County. The crash killed 10 people and injured nearly
40 others. The investigation report revealed that the bus
driver did not have the proper "P" endorsement from DMV, and
the bus company was currently filed with DMV as
"non-operational."
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On October 31, 2008, a charter bus carrying the Alameda High
School varsity football team crashed in Pinole. There were no
major injuries, but the CHP determined later that the driver
did not hold the proper license and the bus itself had not
been registered with CHP since 2005.
In February 2009, surprise inspections at the Thunder Valley
Casino found violations in 12 of the 13 buses that were
inspected. Violations ranged from brake deficiencies to loose
lug nuts, cracked wheels, and lighting and steering problems.
3)Related Legislation . AB 636 (Jones), also on today's
committee agenda, requires the PUC to permanently revoke the
authority of a charter-party carrier if the carrier knowingly
employs a non-licensed or inappropriately licensed driver.
Analysis Prepared by : Chuck Nicol / APPR. / (916) 319-2081