BILL ANALYSIS
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THIRD READING
Bill No: AB 2572
Author: Bradford (D)
Amended: 8/4/10 in Senate
Vote: 21
SENATE ENERGY, U.&C. COMMITTEE : 7-2, 6/15/10
AYES: Padilla, Corbett, Florez, Kehoe, Lowenthal,
Simitian, Wright
NOES: Dutton, Strickland
NO VOTE RECORDED: Cox, Oropeza
SENATE TRANSPORTATION & HOUSING COMM : 9-0, 6/29/10
AYES: Lowenthal, Huff, Ashburn, DeSaulnier, Harman, Kehoe,
Pavley, Simitian, Wolk
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
ASSEMBLY FLOOR : 62-4, 5/20/10 - See last page for vote
SUBJECT : Charter-party carriers of passengers
SOURCE : Greater California Livery Association
DIGEST : This bill 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 and
changes certificate renewal fees and imposes additional
enforcement provisions to allow the California Public
Utilities Commission to exercise enforcement techniques.
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ANALYSIS : 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 California Public Utilities Commission
(PUC) to fix rates and establish rules for the
transportation of passengers and property by
transportation companies.
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 PUC to deny the application for a new
permit or certificate or renewal upon written
recommendation from the California Highway Patrol
that the application be denied for specified reasons,
and requires PUC 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.
This bill:
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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 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 PUC 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.
Comments
According to the author's office, this bill is intended to
increase public safety and consumer protections by
providing PUC 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
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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.
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.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: Yes
SUPPORT : (Verified 8/4/10)
Greater California Livery Association (source)
California Bus Association
California Public Utilities Commission
San Francisco International Airport
WeDriveU, Inc.
ASSEMBLY FLOOR :
AYES: Adams, Ammiano, Arambula, Bass, Beall, Bill
Berryhill, Tom Berryhill, Blakeslee, Block, Blumenfield,
Bradford, Brownley, Buchanan, Caballero, Charles
Calderon, Carter, Chesbro, Conway, Cook, Coto, Davis, De
Leon, Eng, Feuer, Fong, Fuentes, Fuller, Furutani,
Galgiani, Garrick, Gilmore, Hagman, Hall, Hayashi,
Hernandez, Hill, Huber, Huffman, Jones, Lieu, Logue,
Bonnie Lowenthal, Ma, Mendoza, Monning, Nestande, Niello,
Nielsen, V. Manuel Perez, Portantino, Ruskin, Salas,
Saldana, Skinner, Solorio, Audra Strickland, Swanson,
Torlakson, Torres, Torrico, Tran, Yamada
NOES: Anderson, DeVore, Gaines, Norby
NO VOTE RECORDED: De La Torre, Emmerson, Evans, Fletcher,
Harkey, Jeffries, Knight, Miller, Nava, Silva, Smyth,
Villines, John A. Perez
DLW:nl 8/4/10 Senate Floor Analyses
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SUPPORT/OPPOSITION: SEE ABOVE
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