BILL ANALYSIS
SENATE TRANSPORTATION & HOUSING COMMITTEE BILL NO: ab 2572
SENATOR ALAN LOWENTHAL, CHAIRMAN AUTHOR: bradFORD
VERSION: 5/5/10
Analysis by: Carrie Cornwell FISCAL: yes
Hearing date: June 29, 2010
SUBJECT:
Charter party carriers of passengers
DESCRIPTION:
This bill regulates hired driver services whenever the driver is
using a rented motor vehicle.
ANALYSIS:
Charter-party carriers of passengers are those engaged in the
business of transporting persons by motor vehicle for
compensation over the public highways of California. Charter
party carriers are principally charter bus and limousine
companies. By definition, they are not taxicabs, transit
vehicles, school transportation vehicles, or other specified
transportation services.
To operate as a charter-party carrier, the carrier must obtain
from the Public Utilities Commission (PUC) a permit or
certificate to operate, place identifying symbols or plates on
its vehicles, and acquire adequate liability insurance. The PUC
issues six different types of permits and certificates,
depending on the type of vehicle operated. Approximately 6200
charter-party carriers hold a PUC permit or certificate to
operate in California.
Existing law requires the PUC to investigate complaints against
charter carriers and to cancel, revoke, or suspend permits and
certificates for specified violations. State law regulates other
terms of operation for charter party carriers, including
prescribing specific requirements for
vehicle maintenance and safety standards, driver licensing and
training requirements, controlled substance and alcohol testing,
and workers' compensation insurance.
AB 2572 (BRADFORD) Page 2
Existing law allows a peace officer to impound a charter-party
carrier's vehicle if the peace officer deems the carrier to be
operating illegally in close proximity to an airport or the
border with Mexico. The vehicle must be returned immediately and
without cost to its owner if the violation is dismissed, the
owner is found not guilty, or the vehicle was being used without
the knowledge and consent of the owner.
Existing law establishes the pull-notice system, through which
DMV provides an employer of a driver of specified vehicles with
a report showing the driver's current driving record and any
subsequent convictions, driver's license revocations, failures
to appear, accidents, driver's license suspensions, driver's
license revocations, or any other actions taken against the
driving privilege. The program allows a company to monitor the
license records of its drivers.
This bill :
1.Makes legislative findings, including that DMV's "pull notice
system" shall provide "real-time" information on drivers for
licensed charter-party carriers of passengers.
2.Expands the definition of a charter-party carrier of
passengers to include any person, corporation, or other entity
that provides a hired driver service, if the driver is using a
rented motor vehicle. The bill exempts these hired-driver
carriers from vehicle-related requirements, such as those
pertaining to vehicle maintenance, CHP inspections of its
vehicles and offices, and vehicle liability insurance.
3.Adjusts the schedule of fees that an applicant for a
charter-party carrier certificate or permit must pay to the
PUC as follows:
A new Class A certificate remains at $1,500;
A new Class B certificate increases from $500 to $1,000;
A new Class C certificate increases from $500 to $1,000;
A new permit increases from $500 to $1,000; and
Renewal of any class of certificate or permit decreases
to $100 from $500.
1.Permits the PUC to cancel, revoke, or suspend any
AB 2572 (BRADFORD) Page 3
charter-party carrier permit or certificate for failure of the
permit or certificate holder to comply with any order,
decision, rule, regulation, ordinance, or other requirement
that the governing body of a public airport establishes,
including those relating to solicitation practices.
2.Allows a peace officer to impound a charter-party carrier
vehicle anywhere the carrier is found to be operating
illegally, rather than just within two miles of the border
with Mexico or 100 feet of a public airport. The bill requires
the return of an impounded vehicle to the owner only after all
impoundment fees are paid in cases where the vehicle was
seized due to a violation of a person other than the owner.
COMMENTS:
1.Purpose . The author introduced this bill to increase public
safety and consumer protections by providing the PUC with
greater authority to enforce charter-party carrier laws.
Typically, charter-party carriers of passengers offer their
customers both a vehicle and driver to transport passengers on
a prearranged basis. Examples include limousines and chartered
buses for tours or events. For the chartered buses and
limousines, current law prescribes specific requirements for
vehicle maintenance and safety standards, driver screening and
training, controlled substance and alcohol testing, workers'
compensation insurance, and business fitness and financial
responsibility, but the law is ambiguous when a hired driver
operates a rented vehicle under separate travel agreements.
This bill intends to clarify this situation, as 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. The author would
like to ensure the state's rigorous charter-party carrier laws
capture this new business model.
2.DMV pull notice program . This bill adds intent language to
provide the PUC 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.
DMV reports that charter-party carriers may currently receive
pull notices of driver records electronically (or in "real
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time"). Therefore it is unclear what the legislative intent
language in this bill attempts to achieve. For this reason,
the author or committee may wish to delete it.
3.Committee of second referral . The Rules Committee referred
this bill to the Energy, Utilities, and Communications
Committee and to the Transportation and Housing Committee.
This bill passed that committee on June 15 by a 7 to 2 vote.
Assembly Votes:
Floor: 62 - 4
Appr: 14 - 1
Trans: 12 - 0
U&C: 15 - 0
POSITIONS: (Communicated to the Committee before noon on
Wednesday,
June 23, 2010)
SUPPORT: The Greater Livery Association (sponsor)
California Airports Council
California Bus Association
California Public Utilities Commission
San Francisco International Airport
WeDriveU, Inc.
OPPOSED: None received.