BILL ANALYSIS
AB 2572
Page 1
ASSEMBLY THIRD READING
AB 2572 (Bradford)
As Amended May 5, 2010
Majority vote
UTILITIES & COMMERCE 15-0
TRANSPORTATION 12-0
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|Ayes:|Bradford, Knight, Tom |Ayes:|Bonnie Lowenthal, Bill |
| |Berryhill, Buchanan, | |Berryhill, Blumenfield, |
| |Carter, Fletcher, Fong, | |Buchanan, Eng, Furutani, |
| |Fuentes, Fuller, | |Galgiani, Hayashi, |
| |Furutani, Huffman, Ma, | |Miller, Niello, |
| |Skinner, Swanson, | |Portantino, Solorio |
| |Villines | | |
|-----+--------------------------+-----+--------------------------|
| | | | |
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APPROPRIATIONS 14-1
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|Ayes:|Fuentes, Conway, Ammiano, | | |
| |Bradford, Coto, Davis, | | |
| |Hill, Hall, Harkey, | | |
| |Miller, Skinner, Solorio, | | |
| |Torlakson, Torrico | | |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Norby | | |
| | | | |
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SUMMARY : Expands the definition of a "charter-party carrier" to
include any person, or entity engaged in providing
transportation service where the vehicle is rented and is
operated by a for-hire driver. Changes certificate renewal fees
and imposes additional enforcement provisions to allow the
California Public Utilities Commission (CPUC) to exercise
enforcement techniques. Specifically, this bill:
1)Expands the existing definition of a charter-party carrier of
passengers to include any person, corporation, or other entity
engaged in the provision of hired driver services when a
AB 2572
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rented motor vehicle is being operated by a hired driver.
2)Exempts a charter-party carrier engaged in providing a hired
driver service when a rented motor vehicle is being operated
by the hired driver, from provisions that require vehicle
maintenance.
3)Decreases the filing fee to renew a Class A certificate from
$500 to $100; increases the fee for new Class B, Class C, and
permits to $1,000; and, decreases the fee to renew the
certificates and permits from $500 to $100.
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 restriction of 100 miles from an airport or
international border shared by United States and Mexico, for a
police officer to impound a vehicle used by a charter-party
carrier who operates in violation of the law.
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)Article XII of the California Constitution:
a) 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 subject to control by the
Legislature; and,
b) Allows CPUC to fix rates and establish rules for the
transportation of passengers and property by transportation
companies.
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2)The Public Utilities Code:
a) Requires every application for a charter-party carrier
certificate, permit, or renewal to be accompanied by a
specified fee and adequate evidence of reasonable fitness
and financial responsibility;
b) Limits the term for a charter-party carrier permit or
certificate to three years;
c) Requires each application for a charter-party carrier of
passengers permit or certificate shall be accompanied by a
filing fee of $1,500 for a new Class A certificate and $500
for a renewal, and $500 for Class B and C certificates, and
permits, new and renewal; and,
d) Requires CPUC to deny the application for a new permit
or certificate or renewal upon written recommendation from
the California Highway Patrol (CHP) that the application be
denied for specified reasons, and requires CPUC to provide
the charter-party carrier written notice and hold a hearing
to allow the carrier to show cause why the denial was
improper or unwarranted.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, 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 : According to the author, this bill is intended to
increase public safety and consumer protections by providing
CPUC greater authority to enforce charter-party carrier laws.
This bill captures a different business model used by Avis, a
well-known rental car company that 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 like to ensure the
state's rigorous charter-party carrier laws capture this new
business arrangement.
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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 regulated by CPUC pursuant to the
Passenger Charter-Party Carriers' Act (Public Utilities Code
Section 5351). Carriers operate under one or more of the
various types of permits and certificates issued by CPUC. There
are three categories of certificates (designated Class A, B, and
C) and three categories of permits (designated P, S, and Z).
The certificates and permits authorize different kinds of
transportation services or limit the size of the vehicle that
may be operated. Approximately 5,600 carriers hold one or more
certificates and permits.
Analysis Prepared by : Gina Adams / U. & C. / (916) 319-2083
FN: 0004341