BILL ANALYSIS                                                                                                                                                                                                    Ó



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          CONCURRENCE IN SENATE AMENDMENTS
          AB 45 (Hill)
          As Amended  August 24, 2012
          Majority vote
           
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          |ASSEMBLY:  |70-0 |(May 12, 2011)  |SENATE: |31-0 |(August 29,    |
          |           |     |                |        |     |2012)          |
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           Original Committee Reference:    U. & C.  

           SUMMARY  :  Expands the provisions concerning under-age drinking 
          to apply to drivers of charter-party carriers, with certain 
          exemptions.  Specifically,  this bill  :  

           The Senate amendments:

           1)Require advance written notification to the designee fully 
            explaining their responsibilities and assumed liabilities.  If 
            the carrier fails to comply, the amendments would require the 
            carrier to provide a designee and assume the responsibilities 
            and liabilities of a designee under this law.

          2)Require the charter party carrier of passengers to ask the 
            chartering party at the time service is being prearranged to 
            make certain disclosures pertaining to the consumption of 
            alcoholic beverages and if there are passengers under 21 years 
            of age.

          3)Restate the duties of the designee to "ensure compliance" with 
            all laws prohibiting the consumption of alcoholic beverages by 
            persons under 21 years as a duty to make reasonable efforts to 
            ensure compliance with respect to persons the designee knew or 
            should have known to be under 21 years of age and was 
            consuming or consumed alcohol.

          4)Limit the designee's liability to reasonably foreseeable 
            personal injuries or property damage (as opposed to any and 
            all).

          5)Clarify that a party who provides the under-age party with 
            alcohol retains any liability they have under existing law for 
            those acts.  









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          6)Help ensure that a designee acts reasonably in executing his 
            or her duties by allowing the liability of a designee to 
            terminate once they deliver an intoxicated under-age drinker 
            to a reasonably safe location, such as a hospital, if not 
            their home or to their parent or guardian, as the bill 
            currently requires. 

          7)Clarify what is intended by the term "minor" in this bill as 
            the term is usually used to indicate under the age of majority 
            (18) when the bill focuses on anyone under 21 years of age, 
            including adults between 18-20 years of age. 

          8)Add co-authors and make other technical and clarifying 
            changes.

           FISCAL EFFECT  :  According to the Senate Appropriations 
          Committee, pursuant to Senate Rule 28.8, negligible state costs.

           AS PASSED BY THE ASSEMBLY  , this bill expands the provisions 
          concerning under-age drinking to apply to drivers of 
          charter-party carriers, with certain exemptions.  Specifically, 
          this bill expands the application of the alcoholic beverage 
          provisions concerning passengers under the age of 21 years by 
          applying those requirements to the driver of any vehicle used as 
          a charter-party carrier and makes the third or subsequent 
          violation of the open container prohibition a misdemeanor 
          against the driver of any vehicle used as a charter-party 
          carrier.

           COMMENTS  :  According to the author, 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, 
          a nineteen year old teenager 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 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.

           Issue  :  Limousines were not regulated by PUC until the 








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          proliferation of limousines companies in the late 1980s began to 
          lead to serious drug and alcohol abuse on limousine rides by 
          minors.  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  :  PUC is the agency 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 DMV 
          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 (CHP) for violating the open container law, that 
          information is supposed to be given to PUC by the courts.  This 
          information sharing allows PUC to issue administrative citations 
          and 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.  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, PUC may impose a 
          civil penalty no greater than $2,000 upon the carrier.  For a 
          second offense, 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, 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.  

          Senate Floor amendments add co-authors, clarify the duties, 
          liabilities and/or penalties of the designee, driver, and 
          carrier, and make other technical, clarifying changes.


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








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