BILL ANALYSIS
AB 951
Page 1
ASSEMBLY THIRD READING
AB 951 (Lieu)
As Amended April 21, 2009
Majority vote
UTILITIES & COMMERCE 13-1
APPROPRIATIONS 16-0
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|Ayes:|Fuentes, Duvall, |Ayes:|De Leon, Nielsen, |
| |Blakeslee, Carter, Fong, | |Ammiano, |
| |Fuller, Furutani, | |Charles Calderon, Davis, |
| |Huffman, Krekorian, | |Duvall, Fuentes, Hall, |
| |Skinner, Smyth, Swanson, | |Harkey, Miller, |
| |Torrico | |John A. Perez, Price, |
| | | |Skinner, Solorio, Audra |
| | | |Strickland, Torlakson |
|-----+--------------------------+-----+--------------------------|
|Nays:|Tom Berryhill | | |
| | | | |
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SUMMARY : 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 PUC symbol, and who fails to remove an
identifying symbol when required by PUC.
AB 951
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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
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 : 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. The group would usually reserve the vehicle as a group,
and would not reserve a "seat" individually.
According to the author, the purpose of this bill is to
implement stronger deterrents for charter buses that pose great
harm to passengers. The author states that the current fines in
state law are too low to serve as a deterrent for bad
charter-party carriers that would rather compromise the safety
of its passengers to make a profit. Fines regarding
charter-party carriers can range from as low as $125 to $5,000
for violations that compromise the safety of human beings.
The author cites two incidences 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 and injured nearly 40 others. The investigation
report revealed that the bus driver did not have the proper "P"
endorsement from the Department of Motor Vehicles (DMV), and the
bus company was currently filed with DMV as "non-operational."
AB 951
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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 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.
Analysis Prepared by : Gina Adams / U. & C. / (916) 319-2083
FN: 0000601