BILL ANALYSIS Ó AB 1551 Page 1 Date of Hearing: May 2, 2012 ASSEMBLY COMMITTEE ON APPROPRIATIONS Felipe Fuentes, Chair AB 1551 (Torres) - As Introduced: January 26, 2012 Policy Committee: Insurance Vote:13 - 0 Urgency: No State Mandated Local Program: No Reimbursable: SUMMARY This bill expands an exemption from mandatory reporting of traffic accidents to a private insurer for public safety professionals when accidents occur when using a personal vehicle at the direction of an employer. Specifically, this bill: 1)Adds private vehicles to the kinds of vehicles for which accidents are not required to be reported. 2)Requires private vehicles to be used at the request or direction of an employer in order to be covered by the exemption expansion established in this bill. FISCAL EFFECT No direct fiscal impact is established by the expansion of the exemption established in this bill. COMMENTS 1)Rationale . This bill is sponsored by the California Professional Firefighters to expand a current law exemption to mandatory reporting of motor vehicle accidents for certain public safety professionals. Under current law, peace officers, California Highway Patrol officers, and firefighters are not required to report traffic accidents to a private insurer if these incidents occur while driving an employer-leased or an employer-rented vehicle. This bill ensures a peace officer or a firefighter is held harmless with respect to mandatory reporting of traffic AB 1551 Page 2 accidents if an accident occurs while operating a private vehicle at the request or direction of their employer. 2)Related Legislation . In 2010, AB 2151 (Torres), an identical bill was vetoed by the governor. In his veto message, Governor Schwarzenegger wrote, "While there may be reasons for state and local entities to pay the costs of automobile accidents while employees are responding to emergency situations in their private vehicles, this measure would require indemnification in all situations regardless of the driver's fault, which is unwarranted. Moreover, the Internal Revenue Service-established mileage reimbursement rate already covers costs for insurance for employees that use their private vehicles for work purposes." Analysis Prepared by : Julie Salley-Gray / APPR. / (916) 319-2081