BILL ANALYSIS Ó Senate Appropriations Committee Fiscal Summary Senator Christine Kehoe, Chair AB 45 (Hill) - Charter-party carriers: alcoholic beverages - open containers. Amended: August 6, 2012 Policy Vote: EUC 7-1, JUD 4-0 Urgency: No Mandate: Yes Hearing Date: August 6, 2012 Consultant: Jolie Onodera This bill does not meet the criteria for referral to the Suspense File. Bill Summary: AB 45 would repeal specified provisions of the Passenger Charter-party Carriers' Act (Act) related to the requirements for a driver of a limousine for hire operated by a charter-party carrier of passengers (carrier) concerning the consumption of alcoholic beverages by passengers under 21 years of age, and would instead require the chartering party, as defined, to name a "designee" to be present on any party bus or limousine, as specified. This bill would impose various responsibilities and liabilities upon the designee, driver, and carrier to prevent the consumption of alcohol by persons under 21 years of age. This bill would also provide for specified penalties for failure to comply with these provisions, and would make it a misdemeanor for third and subsequent violations relating to the storage or possession of an open container of an alcoholic beverage, as specified. Fiscal Impact: Minor, absorbable costs to the Public Utilities Commission (PUC) associated with the revised provisions of the Act. Potential ongoing minor court costs for misdemeanor filings, likely less than $25,000 (General Fund) for 50 new misdemeanor filings per year. While the impact of this bill independently is likely to be minor, the cumulative effect of all new misdemeanors could create General Fund cost pressure on capital outlay, staffing, programming, the courts, and other resources in the context of recently enacted 2011 Public Safety Realignment. Background: Existing law, the Passenger Charter-party Carriers' AB 45 (Hill) Page 1 Act, authorizes the California PUC to regulate charter-party carriers of passengers, defined as persons engaged in the transportation of persons by motor vehicle for compensation on a prearranged basis over any public highway in the state. The Act imposes the following requirements on the driver of any limousine for hire operated by a carrier under a valid certificate or permit: Ascertain whether any passenger is under the age of 21 years. Read to any passenger under 21 years of age a specified statement that notifies the passenger, among other things, that the consumption of any alcoholic beverage in the vehicle is unlawful and that, if during the course of the ride any minor is found to be, or to have been, consuming any alcoholic beverage, the contract will be terminated and the customer will be brought back to the point of origin of the ride. Require every passenger under the age of 21 years to sign the statement to be retained by the limousine operator for the period required by the commission. Immediately terminate the contract of hire and return the passengers to the point of origin of the ride if any minor passenger, after signing the statement above is found to be, or to have been, consuming any alcoholic beverage during the course of any ride subject to this section. Under existing law, failure of a driver to comply with the aforementioned requirements that results in the conviction of a driver of a violation of Vehicle Code (VC) section 23225, which prohibits the storage of an open container containing any alcoholic beverage in a vehicle, is subject to various penalties which include specified fines and revocation of the carrier's permit. Notably, under existing law, the requirements previously noted that are imposed upon a limousine driver do not apply to the driver of any bus, taxicab, or van. Proposed Law: This bill, to be known as the Brett Studebaker Law, would repeal Section 5384.1 of the Public Utilities Code related to requirements for a limousine driver for hire operated by a carrier concerning the consumption of alcoholic beverages by passengers under 21 years of age, and would instead enact specified requirements and liabilities relating to under-age drinking on charter party carriers, as specified. This bill would impose various penalties for violations of the bill's AB 45 (Hill) Page 2 provisions, and would create two new misdemeanors. This bill: Requires a chartering party, as defined, to disclose to the carrier at the time the service is prearranged or the contract is made, whether alcoholic beverages will be served or transported in the passenger compartment of the vehicle during transportation and whether a member of the party will be under 21 years of age. If the aforementioned is true, the carrier is required to notify the chartering party of specified responsibilities, including the assignment of a "designee" who is at least 25 years of age to be present whenever persons under 21 years of age who are not accompanied by a parent or legal guardian are being transported. Requires the designee to make reasonable efforts to ensure compliance with all laws prohibiting the consumption of alcoholic beverages by persons under 21 years of age who are members of the party and are unaccompanied by a parent or legal guardian. Requires the carrier to provide a copy of a written form signed by the designee to the chartering party within 24 hours of the reservation. If the form is not provided, the carrier must provide a designee who is not the driver and shall incur all liabilities of that designee. Requires the carrier to inform the driver of the vehicle that alcohol will be present and that there will be persons under 21 years of age present during the provision of transportation services, and the name of the designee. Requires the driver to obtain the designee's signature or initials on a written form indicating the designee's acknowledgment and agreement to specified terms. Extends the following existing penalties imposed on limousine drivers to all charter-party carriers of passengers for a specified violation of the Vehicle Code related to the storage of an opened container of an alcoholic beverage. o For a first offense, the PUC may impose a civil penalty of not more than $2,000 upon the carrier. o For a second offense, the PUC may impose a civil penalty of not more than $2,000 upon the carrier or suspend the carrier's certificate or permit for not more than 30 days, or both. o For a third offense, the PUC is required to revoke the carrier's certificate or permit. Provides that a third or subsequent violation of VC section AB 45 (Hill) Page 3 23225, relating to the storage of an opened container of an alcoholic beverage, or Section 23223, relating to the possession of an open container of an alcoholic beverage, or a driver of any vehicle used to provide transportation services on a prearranged services, operating under a valid certificate or permit, as specified, is a misdemeanor. Staff Comments: The PUC has indicated the costs to their department associated with the revisions to the Act will be minor and absorbable. Except in cases where a different punishment is prescribed, a misdemeanor offense is punishable by imprisonment in the county jail not exceeding six months, by a fine not exceeding $1,000, or by both. The Judicial Council may incur costs for increased misdemeanor filings, but annual costs are likely to be minor of less than $25,000 (General Fund) statewide if 50 new misdemeanors are filed per year, and would be offset to a degree by fine revenue. The creation of new misdemeanors has historically been analyzed by this Committee to result in non-reimbursable state mandated costs for local law enforcement and incarceration. Staff notes, however, that the creation of new misdemeanors taken cumulatively could increase the statewide adult jail population to a degree that could potentially impact the flexibility of counties to manage their jail populations recently increased under the 2011 Public Safety Realignment. While the provisions of this bill are likely to be minor, the cumulative effect of all new misdemeanors could create unknown General Fund cost pressure on capital outlay, staffing, programming, the courts, and other resources.