BILL ANALYSIS                                                                                                                                                                                                    �






           SENATE TRANSPORTATION & HOUSING COMMITTEE       BILL NO: SB 338
          SENATOR MARK DESAULNIER, CHAIRMAN              AUTHOR:  hill
                                                         VERSION: 6/12/13
          Analysis by:  Carrie Cornwell                  FISCAL:  yes
          Hearing date:  June 18, 2013                       URGENCY:  YES


          SUBJECT:

          Limousines

          DESCRIPTION:

          This bill requires owners of limousines offered for hire in  
          California to equip their limousines with two fire  
          extinguishers, one near the driver and one in the trunk.

          ANALYSIS:

          Charter-party carriers of passengers are businesses that  
          transport persons by motor vehicle for compensation over the  
          public highways of California.  Charter-party carriers are  
          principally charter bus and limousine companies.  By definition,  
          they are not taxicabs, transit vehicles, school transportation  
          vehicles, or other specified transportation services.   
          Typically, charter-party carriers of passengers offer their  
          customers both a vehicle and driver to transport passengers on a  
          prearranged basis.  

          To operate as a charter-party carrier, the carrier must obtain  
          from the Public Utilities Commission (PUC) a permit or  
          certificate, place identifying symbols or plates on its  
          vehicles, and acquire adequate liability insurance.  The  
          charter-party carrier must renew its permit or certificate every  
          three years.  

          The PUC issues six different types of charter-party carrier  
          permits and certificates, depending on the type of vehicle  
          operated and types of transportation services offered.  Three of  
          these encompass limousines, of which there are about 12,500  
          licensed to operate for charter-party carrier businesses in this  
          state.  Limousines can be sedans or sport utility vehicles.

          Before the PUC can issue a permit or certificate, it must  
          require a business applying for or renewing the permit or  
          certificate to establish that it is reasonably fit and  




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          financially responsible to conduct or continue to conduct  
          transportation services.  The PUC shall not issue or renew a  
          permit or certificate unless the charter-party carrier applicant  
          meets several requirements, including:

                 It is financially and organizationally capable of  
               operating its business so that it complies with rules and  
               regulations governing highway safety;
                 It has a preventative maintenance program in effect for  
               its vehicles, as prescribed in California Highway Patrol  
               (CHP) regulations, and it will maintain its vehicles in  
               safe operating condition;
                 It regularly checks the driving records of and has in  
               effect a safety education and training program for all of  
               its drivers; and 
                 It provides for controlled substance and alcohol testing  
               of its drivers.
           This bill  , in addition, prohibits the PUC from issuing a permit  
          or certificate to a charter-party carrier applicant, unless the  
          applicant has equipped each of its vehicles with two readily  
          accessible and fully charged fire extinguishers having a  
          specified rating, maintained in efficient operating condition,  
          and mounted in the driver's compartment and in the vehicle's  
          trunk.  This bill takes effect immediately as an urgency  
          measure.
          
          COMMENTS:

           1.Purpose  .  The author introduced this bill in response to an  
            incident that occurred on May 5, 2013, in which a limousine  
            caught fire while traveling on the San Mateo-Hayward Bridge  
            over the San Francisco Bay.  That limousine was carrying nine  
            passengers.  The driver escaped unharmed and four of the  
            passengers escaped through the driver's partition.  The five  
            other passengers died in the blaze.  The author asserts that  
            the limousine did not have a fire extinguisher and introduced  
            this bill to require limousines for hire to have fire  
            extinguishers on board for use in situations such as this May  
            5th incident.

           2.Investigation in progress  .  The California Highway Patrol  
            (CHP) reports its accident investigation team is nearing  
            completion of its work and will report soon on its findings as  
            to what caused the May 5th limousine fire and resulting  
            deaths.   Information CHP has provided to committee staff and  
            to other interested parties thus far does not indicate that  




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            requiring fire extinguishers in the trunk and driver's  
            compartment of that vehicle would have averted the tragedy  
            that occurred.  That incident appears most likely related to a  
            mechanical issue.  These findings are preliminary, and until  
            CHP releases its report, it is too early to know what changes  
            in statute, if any, would address the causes of that incident  
            and help avert a similar future incident.   The committee may  
            wish, therefore, to hold this bill until the CHP investigation  
            is complete.
          
           3.Criminal and other penalties  .  CHP is also working with the  
            San Mateo County District Attorney on an investigation that  
            could lead to criminal charges related to the May 5th  
            incident.  In addition, state law already requires the PUC,  
            upon receiving a recommendation from CHP, to revoke the permit  
            or certificate of any charter-party carrier because of its  
            failure to maintain its vehicles in a safe operating  
            condition.  Existing law further requires the PUC to  
            investigate complaints against charter carriers and to cancel,  
            revoke, or suspend permits and certificates for specified  
            violations.  All of these provisions of existing law empower  
            CHP and PUC to ensure that charter-party carriers maintain  
            their vehicles in safe operating condition.  The CHP  
            investigation of the May 5th incident should show whether the  
            existing law and the related regulations are sufficient and  
            are being appropriately implemented.  

          4.Work in progress  .   This bill makes a minor change in law -  
            requiring limousines for hire to have two fire extinguishers  
            on board - that either the PUC or the CHP could heretofore  
            have included in regulations those agencies adopt pursuant to  
            their authority over limousines for hire.  The author notes in  
            his background that state law currently subjects buses to CHP  
            inspections at least once every 13 months.  Limousines do not  
            meet the definition of bus, but depending on the outcome of  
            the CHP investigation, it may become clear that limousines  
            should be subjected to CHP inspections.  It does appear very  
            likely that the author will expand this bill to provide for  
            greater regulation of limousines for hire.  


           5.Technical amendments  .

                 On page 3, line 32, after "vehicles" insert "as defined  
               in subdivision (i) of Section 5371.4"
                 On page 3, line 36, after "trunk" insert "or luggage  




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               compartment" 

          RELATED LEGISLATION

          SB 109 (Corbett) requires limousines manufactured on or after  
          January 1, 2015, to have two windows and two doors in the rear  
          compartment to serve as emergency exits in the case of fire. Set  
          for hearing on June 17th in the Assembly Transportation  
          Committee.
          
          POSITIONS:  (Communicated to the committee before noon on  
          Wednesday,                                             June 12,  
          2013.)

               SUPPORT:  California Professional Firefighters
                         California State Sheriffs' Association

               OPPOSED:  None received.