BILL ANALYSIS ------------------------------------------------------------ |SENATE RULES COMMITTEE | AB 2572| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ 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. CONTINUED AB 2572 Page 2 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: CONTINUED AB 2572 Page 3 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 CONTINUED AB 2572 Page 4 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 CONTINUED AB 2572 Page 5 SUPPORT/OPPOSITION: SEE ABOVE **** END **** CONTINUED