BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 338
                                                                  Page  1

          Date of Hearing:   August 12, 2013

                        ASSEMBLY COMMITTEE ON TRANSPORTATION
                               Bonnie Lowenthal, Chair
                     SB 338 (Hill) - As Amended:  August 5, 2013

           SENATE VOTE  :  32-0
           
          SUBJECT  :  Charter-party carriers of passengers: limousines: fire  
          extinguishers

           SUMMARY  :   Requires all limousines, as defined, to be equipped  
          with two fire extinguishers and requires the California Highway  
          Patrol (CHP) to administer an inspection program for certain  
          limousines, as specified.  Specifically,  this bill  : 

          1)Makes legislative findings and declarations in regards to  
            increasing passenger safety for limousines with a seating  
            capacity of less than 10 passengers.  

          2)Requires limousines, as defined, that are modified or extended  
            for purposes of increasing vehicle length and passenger  
            capacity, within 30 days after the effective date of this  
            bill, to be equipped with two readily accessible and fully  
            charged fire extinguishers as specified, with one fire  
            extinguisher securely mounted in the driver's compartment and  
            one in the passenger cabin.  

          3)Allows the Public Utilities Commission (PUC) to require  
            compliance with the provisions listed above as a condition of  
            issuance or renewal of charter-party certificates and permits.  
             

          4)Authorizes CHP to conduct safety inspections on all limousines  
            that have been modified or extended as specified that are  
            subject to the Charter-Party Carriers Act.  

          5)Requires not later than January 1, 2015, CHP to implement an  
            annual safety inspection program of charter-party carriers who  
            operate limousines that have been modified or extended to  
            increase vehicle length and passenger capacity.  

          6)Requires the inspection program to include, but not be limited  
            to: 









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             a)   Installation of safety equipment; 

             b)   Retention of drivers' logs;

             c)   Accident reports;

             d)   Records of drivers' discipline;  

             e)   Compliance with federal and state motor vehicle safety  
               standards; and,  

             f)   Review of the operator's preventative maintenance  
               program.  

          1)Requires CHP to adopt program regulations consistent with the  
            regulations administered by CHP for bus inspections.  

          2)Requires an operator or owner of a limousine that has been  
            modified or extended for purposes of increasing vehicle length  
            and passenger capacity to certify to the PUC and CHP that the  
            vehicle meets all applicable federal and state motor vehicle  
            safety standards.  

          3)Requires limousine operators subject to the annual inspection  
            program to pay a $25 fee per inspected limousine, or a maximum  
            of $6,500, to offset inspection costs.  

          4)Is an urgency measure.

           EXISTING LAW  : 

          1)Establishes the "Passenger Charter-Party Carriers Act," which  
            directs the PUC to issue permits or certificates to  
            charter-party carriers, investigate complaints against  
            carriers, and cancel, revoke, or suspend permits and  
            certificates for specific violations.  

          2)Defines "charter-party carrier of passengers" as every person  
            engaged in the transportation of persons by motor vehicle for  
            compensation over any public highway in the state.  

          3)Defines "limousine" as any sedan or sport utility vehicle,  
            either standard or extended length, with a seating capacity of  
            not more than 10 passengers including the driver, that is used  
            for transportation of passengers for hire on a prearranged  








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            basis.  

          4)Defines a "bus" as a vehicle designed, used, or maintained for  
            carrying more than 10 persons, including the driver, which is  
            used to transport persons for compensation or profit, or is  
            used by any nonprofit organization or group.  

          5)Prohibits a dealer from selling or from offering for sale a  
            vehicle that does not conform to federal vehicle safety  
            standards.  Additionally, prohibits a person from selling or  
            offering for sale for use upon a vehicle an item of equipment  
            that does not conform to federal vehicle safety standards.  

          6)At the federal level, prohibits states from imposing vehicle  
            equipment standards that are inconsistent with or conflict  
            with any related federal standard.  

          7)Requires CHP to inspect and regulate the safe operation to of  
            various types of vehicles, such as buses, as specified.  

           FISCAL EFFECT :  Unknown

           COMMENTS  :  This bill is in response to two limousine fires which  
          took place in May and June of this year.  On May 4, 2013, a  
          limousine fire occurred on the San Mateo-Hayward bridge killing  
          five passengers who were unable to escape the vehicle.  Several  
          of the other passengers were able to exit the limousine only  
          after climbing through the partition window separating the  
          passengers from the driver.  Similarly, on June 9, 2013, nine  
          passengers successfully exited a limousine in Walnut Creek prior  
          to the vehicle catching fire while idling.  

          Charter-party carriers (carriers) are regulated by the PUC.   
          Carriers do not include vehicles on a set schedule or between  
          fix termini, taxi cabs, car rentals, or public transit.  Any  
          carrier, that operates extended limousines with a seating  
          capacity for more than 10 passengers, is subject to commercial  
          vehicle regulatory requirements and thus must comply with the  
          same driver safety and vehicle maintenance requirements as  
          charter buses or shuttles, including CHP vehicle inspections,  
          driver certifications, and hours of service requirements.   
          However, carriers that operate limousines with a seating  
          capacity of less than 10 passengers remain classified as  
          passenger vehicles and are not subject to the abovementioned  
          requirements.  Rather, these carriers must submit to the PUC an  








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          application to obtain a permit or certificate, pay a fee, and  
          provide adequate evidence of reasonable fitness and financial  
          responsibility.  Upon receiving a carrier permit or certificate,  
          ongoing or periodic vehicle inspections are not required.   
          Furthermore, a carrier permit or certification is valid for  
          three years from the time of issuance and requires a carrier to  
          submit a renewal application and provide the proper  
          documentation accordingly.  Carriers may be subject to a PUC  
          investigation triggered for example, by a customer, industry, or  
          law enforcement complaint, notice of lapsed or cancelled  
          insurance policies or any other means of notice to the PUC on  
          the carrier's non-compliance with state law; however physical  
          inspections of the vehicles are not required.  

          This bill would require additional safety standards on  
          limousines that have been modified or extended for purposes of  
          increasing vehicle length and passenger capacity.  The author  
          asserts that this bill will improve the safety standards for  
          smaller carriers by bringing them in line with the safety  
          standards for larger carriers.  Specifically, SB 338 aims to  
          improve safety standards by requiring limousines that are  
          modified to be extended and hold less than 10 passengers to be  
          equipped with two fire extinguishers and, commencing in 2015, be  
          subject to a CHP-administered inspection program that is  
          consistent with the inspection program currently administered  
          for buses.  Furthermore, providing the PUC with the flexibility  
          to require the installation and maintenance of fire  
          extinguishers as part of the permitting or certification process  
          will provide the PUC with a greater opportunity to enforce the  
          provisions specified in this bill.  

           Suggested amendment:   This bill does not require coordination  
          between CHP and PUC.  This bill authorizes CHP to develop  
          regulations and administer a limousine inspection program,  
          however does not provide CHP with direction on the enforcement  
          of regulations or reporting inspection data of these specified  
          limousines to the PUC.  The bill should be amended to ensure CHP  
          inspection data is properly communicated to the PUC.  (Due to  
          committee schedule constraints, any amendments accepted will  
          need to be taken in the Assembly Appropriations Committee.)

           Related legislation:  SB 109 (Corbett), requires limousines that  
          have been modified or extended for purposes of increasing  
          vehicle length and passenger capacity operating within the state  
          to be equipped with emergency exits no later than January 1,  








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          2016.  This bill is on third reading and pending on the Assembly  
          floor.  

           REGISTERED SUPPORT / OPPOSITION  :

           Support 

           California Fire Chiefs Association
          California State Sheriffs' Association 
          California Professional Firefighters
           
            Opposition 
           
          None on file

           Analysis Prepared by  :   Manny Leon / TRANS. / (916) 319-2093