BILL ANALYSIS �
SB 338
Page 1
SENATE THIRD READING
SB 338 (Hill)
As Amended September 6, 2013
Majority vote
TRANSPORTATION 15-0 APPROPRIATIONS 13-1
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|Ayes:|Lowenthal, Linder, |Ayes:|Gatto, Bocanegra, |
| |Achadjian, Ammiano, | |Bradford, |
| |Bloom, Bonta, Buchanan, | |Ian Calderon, Campos, |
| |Daly, Frazier, Gatto, | |Eggman, Gomez, Hall, |
| |Holden, Logue, Morrell, | |Holden, Linder, Pan, |
| |Nazarian, Quirk-Silva | |Quirk, Weber |
|-----+--------------------------+-----+--------------------------|
| | | | |
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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 charter-party carriers that operate limousines, as
specified, that are modified or extended for purposes of
increasing vehicle length and passenger capacity 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 at least one
shall be accessible to passengers.
3)Requires the driver or operator of a limousine, as specified,
to notify the passengers of the location of each fire
extinguisher prior to the commencement of any trip.
4)Requires a certificate of registration submitted to the
Department of Motor Vehicles (DMV) by a charter-party carrier
to identify whether a limousine has been extended or modified
for purposes of increasing vehicle length and passenger
capacity and requires DMV to make this information available
to CHP.
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5)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.
6)Requires not later than July 1, 2015, CHP to implement a
safety inspection program of charter-party carriers who
operate limousines that have been modified or extended to
increase vehicle length and passenger capacity. Requires CHP
to adopt emergency regulations pertaining to the development
and implementation of the inspection program as specified in
this bill. Requires the emergency regulations to be in effect
for not more than one year and requires the final regulations
to be adopted by CHP by the end of the one year period.
7)Requires charter-party carriers that operate limousines, as
specified, to be inspected at least once every 13 months.
8)Requires the inspection program to include, but not be limited
to:
a) Installation of safety equipment;
b) Retention of maintenance logs;
c) Accident reports;
d) Records of drivers' discipline;
e) Compliance with federal and state motor vehicle safety
standards;
f) Review of the operator's preventative maintenance
program; and,
g) Relevant safety and maintenance information on the
limousine if the vehicle has changed ownership.
1)Requires CHP to adopt regulations to establish an inspection
fee on charter-party carriers that operate limousines, as
defined, that have been modified or extended for purposes of
increasing vehicle length and passenger capacity. The
inspection fee shall be based on the number of vehicles, as
specified, by a single charter-party carrier and shall be set
at a minimum of $25 and no higher than $75 per vehicle with a
maximum fee of $6,500 levied per fleet.
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2)Requires the inspection fee to be collected by the California
Public Utilities Commission (PUC) and deposited into the Motor
Vehicle Account.
3)Requires CHP to transmit to the PUC inspection data pertaining
to the limousines subject to inspection under this bill.
4)Requires CHP to adopt program regulations consistent with the
regulations administered by CHP for bus inspections.
5)Requires the original manufacturer or final-stage manufacturer
of a limousine that has been modified or extended for purposes
of increasing vehicle length and passenger capacity to certify
to CHP that the vehicle meets all applicable federal and state
motor vehicle safety standards.
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
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.
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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 of
various types of vehicles, such as buses, as specified.
FISCAL EFFECT : According to the Assembly Appropriations
Committee:
1)Significant cost to the CHP to establish and implement an
ongoing safety inspection program for limousines with a
capacity of 10 passengers or less. There are an estimated
12,500 such vehicles statewide. The number of these vehicles
that have been modified or extended is unknown, however, but
is estimated at around 4,200 to 5,000. Based on this
estimate, the CHP would require at least eight additional
Motor Carrier Safety Specialist positions and eight vehicles.
First-year costs would be about $1.2 million and ongoing costs
would be about $900,000. These costs will be offset by the
inspection fee to be established by the CHP. In addition, the
higher fee to be established for tour bus inspection will help
offset the cost of that program.
2)With more charter-party vehicles being inspected, the PUC
anticipates workload increases associated with vehicles
failing inspection. This will require two to three positions
at an annual cost of $120,000 to $180,000.
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
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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
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, this bill 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. This bill was amended on the Assembly floor to make
clarifications that will improve the efficiency and
effectiveness of the proposed inspection program such as,
providing additional clarification on the types of limousines
that will subject to inspection, authorizing CHP to expedite the
development of program regulations, and requiring the PUC to
collect inspection fees while processing a charter-party
carrier's permit or renewal application.
Related legislation: SB 109 (Corbett) of the current
legislative session, requires limousines that have been modified
or extended for purposes of increasing vehicle length and
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passenger capacity operating within the state to be equipped
with emergency exits no later than January 1, 2016. This bill
is on the Assembly floor.
Analysis Prepared by : Manny Leon / TRANS. / (916) 319-2093
FN: 0002592