BILL ANALYSIS
AB 2572
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Date of Hearing: May 12, 2010
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Felipe Fuentes, Chair
AB 2572 (Bradford) - As Amended: May 5, 2010
Policy Committee:
UtilitiesVote:15-0
Transportation 12-0
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill modifies several provisions related to regulation of
charter-party carriers of passengers. Specifically, this bill:
1)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 service when
a rented motor vehicle is operated by a hired driver.
2)Exempts charter-party carriers defined in (1) from certain,
non-applicable operating requirements because they do not own
the charter-party carrier vehicles.
3)Increases the cost of new permits and Class B and C
certificates from $500 to $1,000 and decreases the cost of all
renewal permits and certificates from $500 to $100.
4)Authorizes the Public Utilities Commission (PUC) to cancel,
revoke, or suspend any charter-party carrier operating permit
or certificate for failure of a permit or certificate holder
or 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 limiting a police officer's authority to
impound a vehicle used by a charter-party carrier operating in
violation of the law only where that 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.
7)States legislative intent that:
a) The PUC have access to real-time information drivers of
charter-party carriers from the DMV's Employer Pull Notice
Program.
b) The PUC create an online renewal process for
charter-party carriers.
c) The PUC implement procedures to have an approved drug
and alcohol testing provider submit to the commission
information on licensed charter-party carriers that have
contracted with providers for compliance with commission
rules.
FISCAL EFFECT
Based on 2009 applications and renewals of charter party
licenses and certificates, the change in fees from this bill
would result in additional special fund revenue of about
$235,000. Any costs associated with implementing legislative
intent and enforcing the new requirements will be covered by the
additional revenue.
COMMENTS
Purpose . Charter-party carriers are rented as an entire vehicle
and transport passengers on a prearranged basis. Some examples
include limousines and chartered buses for tours or events.
Charter-party carriers are permitted and regulated by the PUC.
According to the author, this bill is intended to increase
public safety and consumer protections by providing the PUC with
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 California. The author would
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like to ensure the state's rigorous charter-party carrier laws
capture this new business arrangement.
Analysis Prepared by : Chuck Nicol / APPR. / (916) 319-2081