BILL ANALYSIS
AB 2572
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Date of Hearing: April 19, 2010
ASSEMBLY COMMITTEE ON TRANSPORTATION
Bonnie Lowenthal, Chair
AB 2572 (Bradford) - As Amended: April 21, 2010
SUBJECT : Charter-party carriers of passengers
SUMMARY : Modifies provisions related to charter-party carriers
of passengers. Specifically, this bill:
1)Adds intent language to provide the California Public
Utilities Commission (CPUC) with access to real-time
information on drivers for licensed charter-party carriers of
passengers by utilizing the California Department of Motor
Vehicle's (DMV) Employer Pull Notice Program. States the
further intentions of the Legislature that CPUC create an
online renewal process for charter-party carriers of
passengers and a renewal process that is administratively
efficient.
2)Expands the definition of a "charter-party carrier of
passengers" (charter-party carrier) to include any person, or
entity engaged in providing either a hired driver or a rented
motor vehicle operated by a hired driver.
3)In the event a hired driver is utilizing a rented vehicle to
provide chauffeured transportation, requires the vehicle owner
to provide insurance coverage and verify that the hired driver
possesses a valid and appropriate license to operate a motor
vehicle in California.
4)Authorizes CPUC to cancel, revoke, or suspend any
charter-party carrier operating permit or certificate for
failure of a permit or certificate holder, or any of its
employees, to follow any order, decision, rule, regulation,
direction, demand, ordinance, or other requirement established
by the governing body of an airport, including solicitation
practices.
5)Deletes a provision that restricts a police officer from
impounding a vehicle used by a charter-party carrier who
operates in violation of the law if the person is within 100
feet of a public airport or within two miles of the
international border between the United States and Mexico.
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6)Requires the return of an impounded vehicle to the owner after
all impoundment fees are paid when the vehicle is seized due
to a violation of a person other than the owner of the
vehicle.
EXISTING LAW :
1)Prohibits a charter-party carrier from engaging in
transportation services subject to regulation by CPUC without
obtaining a specified permit or certificate from CPUC.
2)Limits the term for a charter-party carrier permit or
certificate to three years.
3)Requires an employer of a driver of a charter party carrier to
obtain a report showing the driver's current public record as
recorded by DMV.
4)Requires CPUC to deny the application for a new or renewed
permit or certificate upon a written recommendation from the
California Highway Patrol (CHP) that the application should be
denied for specified reasons, and requires CPUC to provide an
appeal process.
5)Pursuant to the California Constitution, establishes private
corporations and persons that own, operate, control, or manage
a line, plant, or system for the transportation of people or
property, and common carriers, as public utilities that are
subject to control by the Legislature; allows CPUC to fix
rates and establish rules for the transportation of passengers
and property by transportation companies.
FISCAL EFFECT : Unknown
COMMENTS : According to the author, the purpose of this bill is
to increase public safety and consumer protections by providing
CPUC greater authority to enforce charter-party carrier laws.
In addition, Avis, a well-known rental car company, would like
to implement a program in California where it hires drivers to
drive Avis cars as a limousine-for-hire service. Avis has
successfully tested this business model on the East Coast and
would like to expand that service to California. The author
would like to ensure the state's rigorous charter-party carrier
laws capture this new business model by expanding the definition
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of charter-party carrier.
Charter-party carriers for-hire drivers : Charter-party carriers
are rented as an entire vehicle (vehicle and driver) and
transport passengers on a prearranged basis. Some examples
include limousines and chartered buses for tours or events.
Currently, for the chartered buses and limousines, the law
prescribes specific requirements for vehicle maintenance and
safety standards, driver screening and training, controlled
substance and alcohol testing, workers' compensation insurance,
and fitness and financial responsibility. However, the law is
ambiguous wherein a hired driver operates a rented vehicle under
separate travel agreements. This bill intends to clarify this
situation.
DMV pull notice program : The DMV employer pull notice program
was established to provide employers and regulatory agencies
with a means of promoting driver safety through the ongoing
review of driver records. The program allows a company to
monitor the license records of its drivers. This monitoring is
useful to determine if each driver has a valid driver's license
to potentially reveal a driver problem. This bill would add
intent language to provide CPUC with access to real-time
information on drivers for licensed charter-party carriers of
passengers by utilizing the DMV employer pull notice program and
to create an online renewal process for those charter-party
carriers.
Related bills : AB 1310 (Leno) Chapter 701, Statutes of 2007,
streamlined CPUC's regulation and investigation procedures of
charter-party carriers.
AB 2985 (Duvall) of 2008, a similar bill, would have eliminated
the three-year permit and certificate renewal process and
proposed to eliminate or reduce a number of other requirements.
The bill passed out of the Assembly Utilities and Commerce (U &
C) Committee on a unanimous vote (13-0) but was later amended
and held in the Assembly Rules Committee.
REGISTERED SUPPORT / OPPOSITION :
Support
The Greater California Livery Association (sponsor)
California Bus Association
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Opposition
None on file
Analysis Prepared by : Ed Imai / TRANS. / (916) 319-2093