BILL ANALYSIS 1
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SENATE ENERGY, UTILITIES AND COMMUNICATIONS COMMITTEE
ALEX PADILLA, CHAIR
AB 951 - Lieu Hearing Date: June 16, 2009 A
As Amended: April 21, 2009 FISCAL B
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DESCRIPTION
Current law prohibits a charter-party carrier from engaging in
transportation services, without obtaining a specified certificate
or permit from the California Public Utilities Commission (CPUC).
Current law permits the CPUC to cancel, revoke or suspend any
operating permit or certificate upon specified violations. Some
violations include conviction of any misdemeanor while holding
operating authority issued by the commission or the conviction of
the carrier or its
officers of a felony while holding operating authority issued by
the commission, limited to robbery, burglary, larceny, fraud, or
intentional dishonesty for personal gain. Also, the failure of a
charter-party carrier of passengers to pay any fee imposed upon
the carrier within the time required by law and failure of a
permit or certificate holder to operate and perform reasonable
service.
Current law requires a carrier to pay a reinstatement fee of $125
if its certificate or permit was suspended and the carrier wanted
the CPUC to reinstate its certificate.
This bill increases the reinstatement fee from $125 to $1,000.
Current law allows the CPUC to levy a civil penalty of up to
$5,000 for specified violations as an alternative to canceling,
revoking, or suspending the permit or certificate.
This bill increases the civil penalty from a maximum of $5,000 to
$7,500.
Current law imposes a minimum fine of $1,000 for each day of
operation if the CPUC finds, after a hearing has been conducted,
that the charter-party carrier has continued to operate with a
suspended certificate.
This bill increases the minimum fine of charter-party carriers who
violate or do not comply with the laws and regulations of the CPUC
from $1,000 to a range of not less than $1,000 and not more than
$5,000.
Current law states that a charter-party carrier is guilty of a
misdemeanor and is punishable by a fine of $1,000, by imprisonment
in the county jail, or both if the carrier continues to display
any identifying symbol other than the CPUC symbol, and fails to
remove an identifying symbol when required by the CPUC.
This bill increases the fine for every charter-party carrier who
continues to display any identifying symbol other than the CPUC
symbol, and who does not remove an identifying symbol when
required by the CPUC. The fine will be increased from $1,000 to
$2,500.
Current law states that the fine a court imposes for a first
conviction by a charter-party carrier is $2,500 and $5,000 for
each subsequent conviction for operating a charter-party carrier
or taxicab without the proper certificate or permit.
This bill allows the CPUC to increase the fine a court imposes for
a first conviction to $10,000 and up to $25,000 for each
subsequent conviction for operating a charter-party carrier or a
taxicab without a valid certificate or permit, if the operator has
the ability to pay.
BACKGROUND
The Charter-Party Carriers' Act secures adequate and dependable
transportation by carriers operating upon the highways; full and
unrestricted flow of traffic by motor carriers over the highways
which will adequately meet reasonable public demands by providing
for the regulations for all transportation agencies with respect
to accident indemnity so that adequate and dependable service by
all necessary transportation agencies shall be maintained and the
full use of the highways preserved to the public; and to promote
carrier and public safety through its safety enforcement
regulations.
Charter-party carriers furnish limousines-for-hire or passenger
charter transportation service in motor vehicles. Charter party
carriers provide different sized vehicles to take a scheduled
group of people to another location and/or back. Charter-party
carriers do not include vehicles on a set schedule or between
fixed termini, taxi cabs, car rentals, or city busses.
The CPUC is authorized under the Public Utilities Code to levy
fines against unlicensed carriers, and as an alternative to
suspension or revocation of a permit or certificate, against
licensed carriers. The CPUC may also seek penalties through civil
court action, or refer matters to local prosecutors for criminal
action.
COMMENTS
1. The author's office has provided examples of several
incidents where charter-party carriers have been in violation
of the law. The fines that are currently in place do not seem
to deter charter-party carriers from conducting business as
they do and therefore, the fines must be increased.
On October 5, 2008 there was an accident in Colusa County
where a bus, which was on its way to a casino, crashed
killing 10 and injuring nearly 40 people. Later an
investigation report proved that the bus driver was not
properly licensed from the Department of Motor Vehicles
(DMV), and the bus company was filed as "non-operational"
with the DMV.
This year in February the California Highway Patrol found
violations in 12 of the 13 buses at the Thunder Valley
Casino. The buses were not owned by the casino they were
owned by six or seven charter companies located in
Sacramento. The inspection was a surprise and the violations
ranged from brake deficiencies to loose lug nuts, cracked
wheels, and lighting and steering problems.
2. Some of the fines and penalties that are being proposed in
this bill have not been increased in the last 20-25 years.
The proposed provisions and increases in AB 162 are relevant
and coincide with the rate of inflation and also with current
economic standards.
3. The money that is collected from increase in the
reinstatement fee will stay with the CPUC and the funds
collected from the increase in fines will be added to the
general fund.
4. Related Legislation:
AB 636 (Jones) requires that the CPUC
permanently revoke the authority of a charter-party
carrier that operates a bus without the proper permits
or that knowingly employs a non-licensed or
inappropriately licensed busdriver. The bill also
requires that a California Highway Patrol officer
impound the bus if driven by a non-licensed or
inappropriately licensed driver.
AB 709 (Lieu) requires that the CPUC adopt rules
to allow for criminal background checks of drivers, or
applicants to be a driver, for a charter-party carrier
of passengers. The bill would also disqualify persons
from becoming drivers who have been convicted of
specified crimes.
1. This bill has been double referred to the Senate Committee
on Public Safety.
ASSEMBLY VOTES
Assembly Floor (75-0)
Assembly Appropriations Committee (16-0)
Assembly Utilities and Commerce Committee
(13-1)
POSITIONS
Sponsor:
California Bus Association
Support:
California Public Utilities Commission
Greater California Livery Association
Hmong Women's Heritage Association
Oppose:
None on file
Melissa Macias
AB 951 Analysis
Hearing Date: June 16, 2009