BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                  AB 2572|
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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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