BILL ANALYSIS                                                                                                                                                                                                    �



                                                                            



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                                 UNFINISHED BUSINESS


          Bill No:  SB 338
          Author:   Hill (D), et al.
          Amended:  9/6/13
          Vote:     27 - Urgency


           SENATE TRANSPORTATION & HOUSING COMMITTEE  :  9-0, 6/18/13
          AYES:  DeSaulnier, Gaines, Beall, Galgiani, Hueso, Lara, Pavley,  
            Roth, Wyland
          NO VOTE RECORDED:  Cannella, Liu

           SENATE APPROPRIATIONS COMMITTEE  :  6-0, 7/1/13
          AYES:  De Le�n, Walters, Gaines, Hill, Lara, Steinberg
          NO VOTE RECORDED:  Padilla

           SENATE FLOOR  :  32-0, 7/8/13
          AYES:  Anderson, Beall, Berryhill, Block, Cannella, Corbett,  
            Correa, DeSaulnier, Emmerson, Evans, Fuller, Gaines, Galgiani,  
            Hancock, Hill, Hueso, Huff, Jackson, Knight, Leno, Lieu,  
            Monning, Nielsen, Padilla, Pavley, Roth, Steinberg, Torres,  
            Walters, Wolk, Wright, Wyland
          NO VOTE RECORDED:  Calderon, De Le�n, Hernandez, Lara, Liu, Yee,  
            Vacancy, Vacancy

           ASSEMBLY FLOOR  :  Not available


           SUBJECT  :    Limousines

           SOURCE  :     Author


           DIGEST  :    This bill requires owners of limousines offered for  
                                                                CONTINUED





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          hire in California to equip their limousines with two fire  
          extinguishers, one in the drivers' compartment and one in the  
          passenger cabin, as specified, and requires the California  
          Highway Patrol (CHP) to establish and administer an inspection  
          program for certain limousines, as specified.
           
          Assembly Amendments  require 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; require 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; requires  
          not later than July 1, 2015, CHP to implement a safety  
          inspection program of charter-party carriers who operate  
          limousines as specified; and requires charter-party carriers  
          that operate limousines, as specified, to be inspected at least  
          once every 13 months.

           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.








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          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  
          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:

             A.   It is financially and organizationally capable of  
               operating its business so that it complies with rules and  
               regulations governing highway safety.
             B.   It has a preventative maintenance program in effect for  
               its vehicles, as prescribed in CHP regulations, and it will  
               maintain its vehicles in safe operating condition.

             C.   It regularly checks the driving records of and has in  
               effect a safety education and training program for all of  
               its drivers.

             D.   It provides for controlled substance and alcohol testing  
               of its drivers.

          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 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  







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            information available to CHP.

          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  







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            at a minimum of $25 and no higher than $75 per vehicle with a  
            maximum fee of $6,500 levied per fleet.

          2.Requires the inspection fee to be collected by the 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. 

           Comments
           
          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.

           FISCAL EFFECT :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  Yes

          According to the Assembly Appropriations Committee:

           Significant cost to 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,  
            CHP will require at least eight additional Motor Carrier  
            Safety Specialist positions and eight vehicles.  First-year  







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            costs will be about $1.2 million and ongoing costs will be  
            about $900,000.  These costs will be offset by the inspection  
            fee to be established by CHP.  In addition, the higher fee to  
            be established for tour bus inspection will help offset the  
            cost of that program.

           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.

           SUPPORT :   (Verified  9/11/13)

          California Fire Chiefs Association 
          California Professional Firefighters 
          California State Sheriffs Association
          Consumers for Auto Reliability and Safety
          Greater California Livery Association
          Orange County Fire Authority

          JA:ej  9/11/13   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

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