BILL ANALYSIS Ó ------------------------------------------------------------ |SENATE RULES COMMITTEE | AB 45| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ THIRD READING Bill No: AB 45 Author: Hill (D), et al. Amended: 8/24/12 in Senate Vote: 21 SENATE ENERGY, UTIL. & COMMUNIC. COMMITTEE : 7-1, 6/21/11 AYES: Padilla, Fuller, Corbett, De León, DeSaulnier, Rubio, Simitian NOES: Berryhill NO VOTE RECORDED: Pavley, Strickland, Wright SENATE JUDICIARY COMMITTEE : 4-0, 7/3/12 AYES: Evans, Blakeslee, Corbett, Leno NO VOTE RECORDED: Harman SENATE APPROPRIATIONS COMMITTEE : 7-0, 8/6/12 AYES: Kehoe, Walters, Alquist, Dutton, Lieu, Price, Steinberg ASSEMBLY FLOOR : 70-0, 5/12/11 (Consent) - See last page for vote SUBJECT : Charter-party carriers of passengers: alcoholic beverages: open carry SOURCE : Author DIGEST : This bill (1) repeals specified provisions of the Passenger Charter-party Carriers Act (Act) related to CONTINUED AB 45 Page 2 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 instead requires the chartering party, as defined, to name a "designee" to be present on any party bus or limousine, as specified; (2) imposes various responsibilities and liabilities upon the designee, driver, and carrier to prevent the consumption of alcohol by persons under 21 years of age; and (3) makes failure to comply with certain of its requirements a misdemeanor and would make any violation of its requirements by a carrier or its driver subject to civil penalties imposed by the Public Utilities Commission (PUC). Senate Floor Amendments of 8/24/12 add coauthors, clarify the duties, liabilities and/or penalties of the designee, driver, and carrier, and make other technical, clarifying changes 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. B. Allows the PUC to fix rates and establish rules for the transportation of passengers and property by transportation companies. 2. The Public Utilities Code: A. Requires the PUC to ensure that every carrier operates on a prearranged basis within the state. B. Requires the driver of any limousine for hire operated by a carrier under a valid certificate or permit to comply with certain requirements relating to alcohol beverages, including: CONTINUED AB 45 Page 3 (1) Ascertaining whether any passenger is under the age of 21 years. (2) Reading to the passenger a statement that the consumption of any alcoholic beverage in the vehicle is unlawful. (3) Requiring the minor passenger to sign the statement and if minor is found to be, or to have been, consuming any alcoholic beverage during the course of the ride, the driver shall immediately terminate the contract of hire and return passenger to the point of origin. C. Subjects the carrier to specified penalties, based on the number of offenses for conviction of a driver, or any officer, director, agent or employee of the carrier that prohibits storage of an opened container of an alcoholic beverage in a motor vehicle. This bill, to be known as the Brett Studebaker Law, repeals the 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 instead enacts specified requirements and liabilities relating to under-age drinking on charter party carriers, as specified. This bill imposes various penalties for violations of the bill's provisions, and creates two new misdemeanors. This bill: 1. Requires the carrier to ask the chartering party, as defined, to disclose to the carrier at the time the service is prearranged or the contract is made and upon being asked, requires the chartering party to disclose 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. 2. Requires the carrier if the aforementioned is true, the carrier is required to notify the chartering party of CONTINUED AB 45 Page 4 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. 3. 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. 4. Requires the carrier to verify the written form has been returned with the signature of the designee no later than 72 hours prior to the commencement of the travel date. If the transportation service is prearranged within 72 hours of the travel date, the carrier shall immediately provide the written form to the chartering party as a stand-alone form separate from the contract of carriage, to be returned prior to the commencement of transportation services with the signature of the designee. 5. 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. 6. 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. 7. Provides that if the PUC, after a hearing, finds that a carrier or the driver of a carrier has violated this section, the PUC shall do the following: A. For a first violation, the PUC shall impose a civil penalty of not more than $2,000 upon the carrier, as determined appropriate by the PUC. B. For a second violation, the PUC shall impose a civil penalty of not more than $2,000 upon the carrier or may suspend the carrier's certificate or CONTINUED AB 45 Page 5 permit for not more than 30 days, or both, as determined appropriate by the PUC. C. For a third violation, the PUC shall revoke the carrier's certificate or permit. 8. Provides that a third or subsequent violation of Vehicle Code Section 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. Background Charter-party carriers are rented as an entire vehicle and transport passengers on a prearranged basis. A charter-party carrier is also referred to as a party bus, charter bus and limousine. Charter-party carriers are regulated by the PUC pursuant to the Passenger Charter-Party Carriers' Act. Carriers operate under one or more of the various types of permits and certificates issued by the PUC. There are three categories of certificates (designated Class A, B, and C) and three categories of permits (designated P, S, and Z). The certificates and permits authorize different kinds of transportation services or limit the size of the vehicle that may be operated. Approximately 5,600 carriers hold one or more certificates and permits. Issue . Limousines were not regulated by the PUC until the proliferation of limousines companies in the late 1980s began to lead to serious drug and alcohol abuse on limousine rides by minor. Similar to limousines, charter buses are the new place for under-age teenagers to drink. Some of these buses have the reputation for promoting drinking parties on wheels, and there is no consistent set of regulations promulgated to ensure that drivers are checking the passenger's photo identification. PUC enforcement authority . The PUC is the agency CONTINUED AB 45 Page 6 responsible for licensing limousine operators by issuing them a charter-party carrier permit or certificate. Limousine operators and other charter-party carriers are required to participate in the Department of Motor Vehicle Employer Pull Notice System, which is a program for the carrier-employer to monitor the driving records of its drivers. If a driver is pulled over by a California Highway Patrol officer for violating the open container law, that information is supposed to be given to the PUC by the courts. This information sharing allows the PUC to issue administrative citations and with fines against charter-party carriers for violations of the law or PUC rules and regulations. For instance, if a limousine driver is pulled over by a law enforcement officer and is found to have passengers under 21 years of age drinking inside of the vehicle, the driver can then be charged with an open container violation. The PUC does not have the authority to impose penalties against the driver. The carrier (i.e. company) is held responsible for any violations committed by its drivers. For a first offense, the PUC may impose a civil penalty no greater than $2,000 upon the carrier. For a second offense, the PUC may impose a civil penalty no greater than $2,000 upon the carrier or suspend the carrier's permit for not more than 30 days, or both. For a third offense, the PUC shall revoke the carrier's permit. These provisions and penalties also apply to a limousine driver or a carrier officer, director, agent or employee who is convicted of having an open container of an alcoholic beverage in the vehicle when a minor passenger is being transported. According to the PUC, in recent years staff has not received any notices from the courts of a violation of the open container prohibition by a limousine driver or a company official. Close the loophole . This bill extends to all charter-party carrier vehicles the protections against under-age drinking of alcoholic beverages that currently apply only to limousines. For a first offense, the PUC may impose a civil penalty no greater than $2,000 upon the carrier. For a second offense, the PUC may impose a civil penalty no greater than $2,000 upon the carrier, or suspend the CONTINUED AB 45 Page 7 carrier's permit for no more than 30 days, or both. On a third offense, the PUC shall revoke the carrier's permit. A third or subsequent offense would subject the driver to misdemeanor criminal charges which would be enforceable by the appropriate law enforcement agency. Statistical data . While there is no statistical data available at this time, there is antidotal evidence that may substantiate the need for greater regulatory oversight. According to a news article published in the Los Angeles Times in March 2011, the Los Angeles Police Department formed a task force over the last year to address the growing problems with party buses. The task force has received cooperation from many of the club operators who turn away partiers who have engaged in excessive drinking or appear under-age. Additionally, PUC staff has been participating in vehicle inspections, including vehicles operated as party buses, with other law enforcement agencies where under-age drinking or other alcohol related incidents occur. These include inspections conducted periodically by the Hollywood Strike Force and surrounding areas and by the San Diego Area Law Enforcement Task Force in the Pacific Beach and Mission Beach areas of San Diego, where large numbers of university students are attracted to the lively nightlife. Any violations by a charter-party carrier that are observed by the staff are dealt with subsequently by the issuance of a citation or warning notice. Comments According to the author's office, it took the loss of Brett Studebaker, a 19-year old San Mateo resident to expose loopholes in state law regarding under-age drinking in the party bus industry. On the evening of February 5, 2010, Brett Studebaker boarded a charter bus to celebrate a friend's birthday. According to the lawsuit filed by his family, the charter bus dropped the passengers off at their cars at approximately 2:00 a.m. after several hours of heavy alcohol consumption. Unfortunately, Brett lost his life less than an hour later when he crashed his vehicle into a CONTINUED AB 45 Page 8 sound wall and another vehicle on Highway 101 near San Mateo. It was later determined by officials that Brett's blood alcohol level was more than three times the legal limit for an adult of drinking age. FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes Local: Yes According to the Senate Appropriations Committee: Minor, absorbable costs to the 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. SUPPORT : (Verified 8/24/12) California Bus Association California Narcotic Officers' Association California Police Chiefs Association California Public Utilities Commission Crime Victims United of California 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 San Mateo Police Department State Public Affairs Committee of the Junior League of California ASSEMBLY FLOOR : 70-0, 5/12/11 AYES: Achadjian, Allen, Ammiano, Atkins, Beall, Bill CONTINUED AB 45 Page 9 Berryhill, Block, Blumenfield, Bonilla, Bradford, Brownley, Buchanan, Butler, Charles Calderon, Campos, Carter, Chesbro, Cook, Davis, Dickinson, Donnelly, Eng, Feuer, Fletcher, Fong, Fuentes, Furutani, Beth Gaines, Galgiani, Gatto, Gordon, Grove, Hagman, Halderman, Hall, Harkey, Hayashi, Hill, Huber, Hueso, Huffman, Jeffries, Jones, Knight, Lara, Logue, Ma, Mansoor, Mendoza, Miller, Monning, Morrell, Nestande, Nielsen, Norby, Olsen, Pan, Perea, V. Manuel Pérez, Silva, Skinner, Smyth, Solorio, Swanson, Valadao, Wagner, Wieckowski, Williams, Yamada, John A. Pérez NO VOTE RECORDED: Alejo, Cedillo, Conway, Garrick, Gorell, Roger Hernández, Bonnie Lowenthal, Mitchell, Portantino, Torres RM:dkd 8/27/12 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END **** CONTINUED