BILL ANALYSIS                                                                                                                                                                                                    Ó          1





                SENATE ENERGY, UTILITIES AND COMMUNICATIONS COMMITTEE
                                 ALEX PADILLA, CHAIR
          

          AB 45 -  Hill                                     Hearing Date:  
          June 21, 2011              A
          As Amended:         June 14, 2011            FISCAL       B
                                                                        
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                                      DESCRIPTION
           
           Current law  makes it unlawful for a person under 21 years of age 
          to drink an alcoholic beverage.

           Current law  makes it unlawful to provide a person under 21 years 
          of age with an alcoholic beverage.

           Current law  prohibits a driver or passenger in a motor vehicle 
          from drinking any alcoholic beverage while in a motor vehicle 
          upon a highway.

           Current law  makes it unlawful and punishable as an infraction 
          for any person to drive a motor vehicle with an open container 
          of alcohol.

           Current law  authorizes the California Public Utilities 
          Commission (CPUC) to regulate charter-party carriers of 
          passengers, defined to mean persons engaged in the 
          transportation of persons by motor vehicle for compensation on a 
          prearranged basis over any public highway in California.

           Current law  regulating charter party carriers generally applies 
          to a limousine, defined to be a vehicle with seating capacity of 
          not more than 10 passengers including the driver, and a bus, 
          defined to be a vehicle with seating capacity of more than 10 
          passengers.

           Current law  provides that the law prohibiting a passenger in a 
          motor vehicle from drinking any alcoholic beverage does not 
          apply to passengers in a bus or limousine.

           Current law  provides that the law making it unlawful to drive a 











          motor vehicle with an open container of alcohol applies to the 
          driver of a limousine, but not a bus, when any passenger is 
          under 21 years of age.

           This bill  would make it unlawful to drive a bus with an open 
          container of alcohol when any passenger is under 21 years of 
          age.

           This bill  would make the third offense of this open container 
          law punishable as a misdemeanor for the driver of a limousine or 
          bus.

           Current law  requires the driver of a limousine to ascertain 
          whether any passenger is under 21 years of age, read them a 
          statement that consumption and transportation of alcohol in the 
          vehicle is unlawful, require each passenger under 21 years of 
          age to sign the statement, and, if that person is found to have 
          been drinking during the course of the ride, terminate the trip 
          and return the passenger to the point of origin of the ride.

           This bill  would require the driver of a limousine, if  a person 
          under 21 years of age is found to have been drinking, to 
          terminate the trip and return that passenger to the point of 
          origin of the ride or, at the option of the driver, drop the 
          passenger off at his or her home, nearest police station, or any 
          other point mutually agreed to by both parties, as long as the 
          conditions are safe for the driver.

           This bill  would apply these requirements regarding any passenger 
          under 21 years of age to the driver of a bus when the driver 
          knows, or has reasonable reason to believe, that alcoholic 
          beverages are, or will be, transported on the bus and accessible 
          to passengers.

           Current law  requires a court to report to the CPUC any 
          conviction of a limousine driver for violating the open 
          container law and authorizes the CPUC, after a hearing, to 
          impose a civil penalty of not more than $2,000 for a first 
          offense, impose a civil penalty of not more than $2,000 or 
          suspend the carrier's certificate or permit for 30 days for a 
          second offense, and revoke the carrier's certificate or permit 
          for a third offense.

           This bill  would authorize the CPUC to impose those same 










          penalties when the driver of a bus is convicted of violating the 
          open container law and the convictions are reported to the CPUC.

                                      BACKGROUND
           
          Prevention of underage drinking and the tragic loss of life that 
          all too often results from drinking and driving is the intent of 
          many provisions of current law. It is always unlawful for a 
          person under 21 years of age to drink and generally unlawful for 
          an adult to provide alcohol to a minor.  It is also unlawful for 
          any driver or passenger of a motor vehicle to drink or have any 
          open container of alcohol while driving or for any person to 
          drive while under the influence of alcohol.  

          But the laws apply differently to charter party carriers, which 
          are private vehicles for hire to transport passengers on a 
          pre-arranged basis.  Charter party carriers are regulated by the 
          CPUC as a limousine (a vehicle with no more than 10 passengers 
          including the driver) or a bus (a vehicle with more than 10 
          passengers including the driver).  Some charter party carriers, 
          with a wide range of seating capacity, are marketed as "party" 
          vehicles and have neon lighting, bars, sound systems and often 
          center poles and perimeter seating.

          A complicated web of cross-referencing sections of the Vehicle 
          Code and Public Utilities Code allow adult passengers of a 
          charter party carrier limousine or bus to drink alcohol on 
          board.  However, the open container prohibition applies to the 
          driver of a limousine (but not a bus) when any passenger is 
          under 21 years of age, effectively making it unlawful for adults 
          in a limousine to drink if anyone in the group is a minor.

          In response to an apparent surge in underage drinking parties in 
          limousines in the late 1980s, AB 3628 (Leslie, 1998) imposed new 
          requirements on charter party limousines.  A limousine driver is 
          required to ascertain whether any passenger is under 21 years of 
          age, read them a statement that consumption and transportation 
          of alcohol in the vehicle is unlawful, require each passenger 
          under 21 years of age to sign the statement, and, if that person 
          is found to have been drinking during the course of the ride, 
          terminate the trip and return the passenger to the point of 
          origin.  The bill also required a court to report to the CPUC 
          any conviction of a limousine driver for violating the open 
          container law and authorized the CPUC, after a hearing, to 










          impose a civil penalty of not more than $2,000 for a first 
          offense, impose a civil penalty of not more than $2,000 or 
          suspend the carrier's certificate or permit for 30 days for a 
          second offense, and revoke the carrier's certificate or permit 
          for a third offense.

          Despite this law being in effect for more than 20 years, the 
          CPUC has never imposed any penalties under these provisions and 
          has not identified a single case where a court reported a 
          conviction of a limousine driver for violating the open 
          container law.  The law does not require the CPUC to do anything 
          unless it receives a notice of conviction under the open 
          container law.

          The CPUC has sought to address underage drinking in charter 
          party vehicles by working with law enforcement where underage 
          drinking is a problem, including with the Hollywood Strike Force 
          and San Diego Area Law Enforcement Task Force. 

                                       COMMENTS
           
              1.   Author's Purpose  .  According to the author, this bill is 
               necessary to close the loophole in current law that exempts 
               party buses from provisions applicable to limousines and to 
               ensure that bus drivers do not turn a blind eye to underage 
               drinking parties.  The bill is in response to the death of 
               Brett Studebaker, a 19-year-old who crashed into a sound 
               wall on Highway 101 near San Mateo in February 2010 after 
               his friend's 21-year-old birthday celebration aboard a 
               charter bus.  His blood alcohol level was more than three 
               times the legal limit for an adult of drinking age.  The 
               author states that this bill, named the Brett Studebaker 
               Law, "is life-saving legislation that will prevent 
               tragedies such as that of Brett Studebaker." 

              2.   CPUC Penalties Triggered Only by Open Container 
               Violation  .  The author claims that this bill seeks to close 
               a loophole and make the provisions of AB 3628 that apply to 
               limousines also applicable to buses.  But it is unclear if 
               any provision of that bill has effectively curbed underage 
               drinking in charter party carriers.  That bill was intended 
               to make limousine drivers subject to CPUC penalties after 
               an open container conviction, but not a single open 
               container conviction has ever been reported to the CPUC and 










               not a single penalty has been imposed in 20 plus years.  
               This bill in its current form would make the driver of a 
               bus subject to this same open container violation if any 
               passenger is under 21 years of age, would require a court 
               to report to the CPUC any bus driver conviction under the 
               open container law, and authorize the CPUC to assess 
               penalties.  However, the author indicates that he plans to 
               amend the bill to delete the provisions that would make a 
               bus driver subject to an open container violation if any 
               passenger is under 21 years of age.  Thus, without this 
               change in current law, the open container law would not 
               apply to a bus driver, and there would be no potential 
               violation that could trigger the CPUC assessing penalties 
               on a bus driver.  The changes in law that would remain in 
               the bill relate to bus and limousine driver obligations 
               during a trip.

              3.   Focus on Party Buses  .  This bill seeks to make drivers 
               of buses subject to the same requirements during a trip 
               that apply to limousine drivers - checking identification 
               and requiring passengers under 21 to sign a statement, and, 
               if a person under 21 years of age is found to have been 
               drinking, terminating the trip and returning the underage 
               passenger to the point of origin or another location.  
               Given that the only distinction in the law between a 
               limousine and a bus is the number of seats in the vehicle, 
               and that either vehicle could be a "party bus" where 
               underage drinking occurs, requiring only drivers of 
               limousines to comply is arbitrary. Thus, the bill seeks to 
               focus on party buses by applying these requirements only 
               "when the driver knows, or has reasonable reason to 
               believe, that alcoholic beverages are, or will be 
               transported on the bus and accessible to passengers."  In 
               theory, this will excuse the driver from checking IDs and 
               collecting signed statements for a Little League or church 
               group where drinking is not likely but will ensure that 
               these steps are taken when a trip obviously includes 
               drinking. 

              4.   Monitoring Underage Passengers .  Unlike checking IDs and 
               collecting signed statements of minors, which are required 
               before a trip begins, the driver's obligation to determine 
               if an underage person subsequently drinks during a bus ride 
               raises concerns, especially in larger buses with up to 55 










               passengers.  Bus companies claim that it will be an 
               impossible task for a driver to keep track of which 
               passengers are underage and whether they are drinking while 
               also safely driving the bus.  

              5.   Ending the Trip  .  Current law requires that, if a 
               limousine driver finds an underage passenger to have been 
               drinking, to terminate the trip and return that passenger 
               to the point of origin of the ride.  This bill applies that 
               obligation to bus drivers as well but gives both limousine 
               and bus drivers the option to drop the passenger off at his 
               or her home, nearest police station, or any other point 
               mutually agreed to by both parties, as long as the 
               conditions are safe for the driver.  This obligation may 
               present practical problems. Returning an underage passenger 
               to the trip's point of origin or other location necessarily 
               means all passengers come along, which is especially 
               problematic for large buses on long-distance trips, and 
               even more so if multiple groups paid for passage on the 
               bus. For example, an all-adult group on a charter bus from 
               the Central Valley to a World Series game in San Francisco 
               may be more than a little miffed if the bus is suddenly 
               turning around to return home because another group on the 
               same bus included a minor who somehow got drunk.  Moreover, 
               as the tragic death of Brett Studebaker shows, the safety 
               of a person who has been drinking excessively is not 
               guaranteed merely by getting them off the bus.

              6.   Double Referral  .  Should this bill be approved by the 
               committee, it should be re-referred to the Senate Committee 
               on Public Safety for its consideration.

                                    ASSEMBLY VOTES
           
          Assembly Floor                     (70-0)
          Assembly Appropriations Committee  (17-0)
          Assembly Utilities and Commerce Committee                      
          (15-0)

                                           
                                      POSITIONS
           
           Sponsor:
           










          Author

           Support:
           
          California Narcotic Officers' Association
          California Police Chiefs Association
          California Public Utilities Commission
          California State Sheriffs' Association (in concept)
          EF International Language Schools
          Greater California Livery Association
          Los Angeles County Sheriff's Department
          Mothers Against Drunk Driving
          National Council on Alcoholism and Drug Dependence - Orange 
          County
          State Public Affairs Committee - Junior Leagues of California

           Oppose:
           
          Amador Stage Lines
          Coach America/San Francisco
          Great American Stage
          H & L Charter Co., Inc.
          Lancer Insurance Company
          Orange Belt Stages
          Pacific Coachways Charter Services, Inc.
          Pacific Monarch Ltd.
          Sundance Stage Lines, Inc.
          VIA Trailways

          











          Jacqueline Kinney 
          AB 45 Analysis
          Hearing Date:  June 21, 2011