BILL ANALYSIS �
AB 1366
Page 1
Date of Hearing: April 22, 2013
ASSEMBLY COMMITTEE ON UTILITIES AND COMMERCE
Steven Bradford, Chair
AB 1366 (Allen) - As Amended: March 21, 2013
SUBJECT : Carriers of passengers: report by California Public
Utilities Commission
SUMMARY : Requires the California Public Utilities Commission
(PUC), by January 1, 2014, to report to the Legislature the
results and conclusions of a rulemaking to assess public safety
risks associated with the operation of transportation services
utilizing new transportation business models.
EXISTING LAW :
1)Prohibits a charter-party carrier of passengers from engaging
in transportation services subject to regulation by the PUC
without obtaining a specified certificate of permit, as
appropriate, from the PUC, and imposes various other
requirements.
2)Pursuant to existing law, the PUC has opened Rulemaking
12-12-011 to assess public safety risks and to ensure that the
safety of the public is not compromised in the operation of
transportation services utilizing new transportation business
models.
FISCAL EFFECT : Unknown.
COMMENTS : According to the author, "It is pertinent that the
Legislature receives all of the necessary information and be
completely up to date on issues in California in case any
legislative action is required. In this regard, the Legislature
should work to encourage entrepreneurs and small businesses to
want locate and operate in California, not stifle innovation and
progressive ideas."
1)Overview : Charter-party carriers are rented as an entire
vehicle and transport passengers on
a prearranged basis. Some examples include limousines and
chartered buses for tours or events.
Charter-party carriers are regulated by the PUC pursuant to the
Passenger Charter-Party Carriers' Act (Public Utilities Code
AB 1366
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Section 5351). 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. Rules applicable to these carriers include
mandatory drug testing of employees, workers compensation
insurance, participation in the Department of Motor Vehicles
"Pull Notice" program, and submitting a safety inspection to the
California Highway Patrol. Approximately 7,000 carriers hold one
or more certificates and permits. This type of traditional
limousine or passenger carrier service continues to operate
under the current regulatory scheme prescribed by the PUC.
New businesses have recently begun using mobile internet, social
media, and location services to offer new ways of arranging
transportation of passengers over public highways for
compensation. Businesses like Sidecar and Lyft use mobile
communications and social networks to connect individuals
wishing to offer and receive low cost and convenient, sometimes
shared, transportation. Uber, another unique business model,
allows passengers to use a GPS-enabled smartphone application to
hail a limousine or other passenger carrier. This unique
business arrangement, however, does not necessarily meet the
current PUC regulatory scheme.
2)PUC rulemaking : New technology and innovation requires the PUC
to continually review
its regulations and policies to ensure that the law the PUC's
safety oversight reflect the current state of the industry and
that these regulations are just and fair for all passenger
carriers. In December 2012, the PUC initiated
Rulemaking12-12-011 on regulations relating to passenger
carriers, ridesharing, and new online-enabled transportation
services. The implications of these new business models on
public safety are currently unknown and it is the PUC's
responsibility to determine whether and how public safety might
be impacted by these new businesses. This bill requires the PUC
to report the results, conclusions and recommendations to the
Legislature of the proposed statutory changes. The PUC is
expediting consideration of this item in light of the threat to
public safety posed by leaving the ride share provider issue
unaddressed. A final ruling is expected later this summer. The
author and this committee may wish to amend the bill to specify
AB 1366
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the PUC to report the results, conclusions and recommendations
in the PUC annual report to the Legislature due January 1, 2014 .
REGISTERED SUPPORT / OPPOSITION :
Support
None on file.
Opposition
None on file.
Analysis Prepared by : DaVina Flemings / U. & C. / (916)
319-2083