BILL ANALYSIS                                                                                                                                                                                                    



          
           AB 2572
                                                                  Page  1

          CONCURRENCE IN SENATE AMENDMENTS
          AB 2572 (Bradford)
          As Amended  August 18, 2010
          Majority vote
           
           ----------------------------------------------------------------- 
          |ASSEMBLY:  |62-4 |(May 20, 2010)  |SENATE: |28-7 |(August 23,    |
          |           |     |                |        |     |2010)          |
           ----------------------------------------------------------------- 
            
           Original Committee Reference:    U. & C.  

           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 (PUC) to exercise  
          enforcement techniques.  

           The Senate amendments  :  

           1)Clarify intent language that PUC has access to the Department  
            of Motor Vehicle's Employer Pull Notice Program. 
           
           2)Require a charter-party carrier engaged in a hired driver  
            service to meet certain insurance requirements.  
           
          AS PASSED BY THE ASSEMBLY  , this bill was substantially similar  
          to the version passed by the Senate.

           FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee analysis, 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  :  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  








          
           AB 2572
                                                                  Page  2

          where it hires drivers to drive Avis cars as a  
          limousine-for-hire service.  

          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.  


           Analysis Prepared by  :    DaVina Flemings / U. & C. / (916)  
          319-2083 


                                                                 FN:  
                                                                 0006599