BILL NUMBER: AB 1524	CHAPTERED
	BILL TEXT

	CHAPTER  108
	FILED WITH SECRETARY OF STATE  JULY 13, 2012
	APPROVED BY GOVERNOR  JULY 13, 2012
	PASSED THE SENATE  JULY 2, 2012
	PASSED THE ASSEMBLY  APRIL 12, 2012

INTRODUCED BY   Assembly Member Allen
   (Coauthor: Assembly Member Yamada)
   (Coauthors: Senators Evans and Wolk)

                        JANUARY 19, 2012

   An act to amend Section 5513 of, and to amend and repeal Sections
5500 and 5501 of, the Public Utilities Code, relating to commercial
air carriers.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1524, Allen. Commercial air carriers: hot air balloons.
   (1) Existing law requires the Public Utilities Commission to
require every commercial air operator, as defined, to procure, and
continue in effect, adequate protection against liability for
personal bodily injuries and property damage as a result of an
accident, that may be imposed by law upon the operator and upon any
person using, operating, or renting an aircraft, as defined, with the
permission of the operator.
   Existing law, until January 1, 2013, excludes from the definition
of commercial air operator a person furnishing or providing
transportation by hot air balloon for hire and excludes from the
definition of aircraft a hot air balloon, as provided. Existing law,
until January 1, 2013, imposes specific liability insurance and
passenger notice requirements on a person providing hot air balloon
transportation, as provided. Existing law, until January 1, 2013,
requires that any person providing such transportation for hire
comply with any requirement of a city, county, or city and county
(local government) that the person obtain a business license as a
condition for operating in the jurisdiction of the local government
and to prominently display the license as required, and provide to
the local government certain evidence of insurance coverage.
   Existing law imposes a state-mandated local program by requiring
local governments, until January 1, 2013, to give reasonable notice
of the evidence of insurance coverage requirement with any business
license renewal notification and to maintain as a public record every
business license issued by the local government to a person
providing transportation by hot air balloon for hire. A local
government, until January 1, 2013, is authorized to charge a
reasonable fee for purposes of carrying out these provisions.
Existing law also imposes a state-mandated local program by making it
a misdemeanor to fail to obtain and maintain a current valid local
business license as required or to fail to maintain insurance as
required.
   This bill would extend these provisions set to expire on January
1, 2013, indefinitely. The bill, in extending those dates
indefinitely, would thereby impose state-mandated local programs for
the purposes described above.
   (2) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 5500 of the Public Utilities Code, as amended
by Section 1 of Chapter 706 of the Statutes of 2008, is amended to
read:
   5500.  As used in this article, "commercial air operator" means
any person owning, controlling, operating, renting, or managing
aircraft for any commercial purpose for compensation. "Commercial air
operator" does not include any person owning, controlling,
operating, renting, managing, furnishing, or otherwise providing
transportation by hot air balloon for entertainment, sporting, or
recreational purposes.
  SEC. 2.  Section 5500 of the Public Utilities Code, as amended by
Section 2 of Chapter 706 of the Statutes of 2008, is repealed.
  SEC. 3.  Section 5501 of the Public Utilities Code, as amended by
Section 3 of Chapter 706 of the Statutes of 2008, is amended to read:

   5501.  As used in this article, "aircraft" means any contrivance
used for navigation of, or flight in, the air. "Aircraft" does not
include a hot air balloon furnished or providing transportation for
entertainment, sporting, or recreational purposes.
  SEC. 4.  Section 5501 of the Public Utilities Code, as amended by
Section 4 of Chapter 706 of the Statutes of 2008, is repealed.
  SEC. 5.  Section 5513 of the Public Utilities Code is amended to
read:
   5513.  (a) Notwithstanding any other provision of this article,
any person owning, controlling, operating, renting, managing,
furnishing, or otherwise providing transportation by hot air balloon
for hire shall maintain in force at least one million dollars
($1,000,000) of liability insurance for personal injury, wrongful
death, and property damage resulting from the operation of a balloon
carrying up to 10 passengers, with additional liability coverage of
one hundred thousand dollars ($100,000) for each passenger for any
balloon carrying more than 10 passengers. A notice shall be provided
to every passenger that identifies both the insurer providing a
policy of liability insurance to the person providing that
transportation and the amount of insurance coverage provided by that
policy.
   (b) Any person owning, controlling, operating, renting, managing,
furnishing, or otherwise providing transportation by hot air balloon
for hire shall comply with any requirement of a city, county, or city
and county that the person obtain a business license as a condition
for operating in that city, county, or city and county. Whenever a
city, county, or city and county requires a business license, any
person owning, controlling, operating, renting, managing, furnishing,
or otherwise providing transportation by hot air balloon for hire
shall prominently display the license only within the city or county
of the person's primary place of business frequented by customers and
potential customers. Whenever a city, county, or city and county
requires a business license, the person shall provide to the city,
county, or city and county, a currently effective certificate of
insurance evidencing insurance coverage as required in subdivision
(a). A new certificate of insurance shall be provided to the city,
county, or city and county, at least annually or whenever there is a
material change in insurance coverage. A city, county, or city and
county shall give reasonable notice of this requirement with any
business license renewal notification. Every business license issued
by a city, county, or city and county to any person owning,
controlling, operating, renting, managing, furnishing, or otherwise
providing transportation by hot air balloon for hire and every
currently effective certificate of insurance evidencing insurance
coverage, shall be maintained as a public record. The city, county,
or city and county may charge a reasonable fee for purposes of
carrying out the provisions of this subdivision.
   (c) Any person who violates subdivision (a) by failing to maintain
insurance in force as required by subdivision (a) is guilty of a
misdemeanor. Any person who violates subdivision (b) by failing to
obtain and maintain a current valid city, county, or city and county
business license issued by the local government jurisdiction where
the person's primary place of business is located, in accordance with
subdivision (b), is guilty of a misdemeanor.
  SEC. 6.  No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because a
local agency or school district has the authority to levy service
charges, fees, or assessments sufficient to pay for the program or
level of service mandated by this act or because costs that may be
incurred by a local agency or school district will be incurred
because this act creates a new crime or infraction, eliminates a
crime or infraction, or changes the penalty for a crime or
infraction, within the meaning of Section 17556 of the Government
Code, or changes the definition of a crime within the meaning of
Section 6 of Article XIII B of the California Constitution.