BILL ANALYSIS Ó AB 45 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 45 (Hill) As Amended August 24, 2012 Majority vote ----------------------------------------------------------------- |ASSEMBLY: |70-0 |(May 12, 2011) |SENATE: |31-0 |(August 29, | | | | | | |2012) | ----------------------------------------------------------------- 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. AB 45 Page 2 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 AB 45 Page 3 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: AB 45 Page 4 0005784