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