BILL ANALYSIS                                                                                                                                                                                                    �






           SENATE TRANSPORTATION & HOUSING COMMITTEE       BILL NO: sb 338
          SENATOR MARK DESAULNIER, CHAIRMAN              AUTHOR:  hill
                                                         VERSION: 9/6/13
          Analysis by:  Carrie Cornwell                  FISCAL:  yes
          Hearing date:  September 12, 2013



          SUBJECT:

          Limousines:  fire extinguishers and inspections

          DESCRIPTION:

          This bill requires owners of limousines to equip their  
          limousines with two fire extinguishers, one near the driver and  
          one accessible to passengers, and it requires the California  
          Highway Patrol (CHP) to inspect limousines offered for hire.

          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 and  
          by definition seat fewer than ten passengers.





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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:

                 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 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  :

           1. Requires a charter-party carrier to submit its permit to  
             operate its limousines to the Department of Motor Vehicles  
             (DMV), which shall identify in registration documents if  
             someone has modified that vehicle to accommodate more  
             passengers and to make that information available to CHP.  
             
           2. Requires charter party carriers operating limousines  
             modified after manufacture to carry more passengers to equip  
             their modified limousines 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 accessible to the passengers.   
             The driver of such a vehicle shall notify passengers of the  
             location of the fire extinguishers prior to commencing a  
             trip.

           3. Requires not later than July 1, 2015, CHP to implement a  
             safety inspection program of charter-party carriers who  
             operate limousines modified after manufacture to carry more  
             passengers.  CHP may adopt emergency regulations to implement  
             this inspection program initially, but these may be in effect  
             for no more than one year after which CHP must adopt final  
             regulations.  CHP regulations shall establish a fee schedule  
             that CHP will base on the number of these limousines a  




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             charter-party carrier operates. These fees shall be a minimum  
             of $25 and no higher than $75 per vehicle with a maximum fee  
             of $6,500 levied per fleet.  PUC will collect the fees.

           4. Directs CHP to adopt regulations for limousine inspections  
             that are consistent with those for bus inspections.

           5. Requires CHP to inspect charter-party carriers that operate  
             these modified limousines at least once every 13 months.  CHP  
             shall inspect, among other things, the vehicles, safety  
             equipment and maintenance program, driver records, accident  
             reports, and changes in vehicle ownership.

           6. Requires CHP to transmit limousine inspection data to the  
             PUC.

           7. Requires the original manufacturer or final-stage  
             manufacturer of a limousine modified after manufacture to  
             carry more passengers to certify to CHP that the vehicle  
             meets all applicable federal and state motor vehicle safety  
             standards.  
          
          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 notes that  
            under current law both the PUC and the CHP regulate  
            charter-party vehicles with a seating capacity of more than 10  
            passengers, including larger limousines and party buses.  CHP  
            regulations require these charter-party vehicles to be  
            equipped with a fire extinguisher and to undergo an annual  
            safety inspection.  

            On the other hand, the PUC is the sole regulator of  
            charter-party vehicles with a seating capacity of less than 10  
            passengers, such as smaller six- and eight-passenger  
            limousines, which are not therefore subject to CHP safety  
            regulations requiring fire extinguishers and inspections.  The  
            author introduced this bill to extend these safety protections  
            to smaller limousines that someone has modified and that are  
            offered for hire, as the limousine involved in the May 5th  




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            incident was.  He states that a life in a nine-passenger  
            vehicle is just as valuable as a life in a 10-passenger  
            vehicle.

           2.Concurrence hearing  .  This bill is back in the Senate on  
            concurrence and has been referred to this committee pursuant  
            to rule 29.10 because Assembly amendments add the provisions  
            that relate to limousine inspections.  As passed by the  
            Senate, the bill related solely to the fire extinguisher  
            requirement.  At today's 29.10 hearing, the committee may not  
            amend the bill further and may only hold the bill or return  
            the bill to the Senate floor.

          RELATED LEGISLATION:

          SB 109 (Corbett) requires that limousines for hire, which  
          someone has modified to increase the number of passengers they  
          can carry, shall have at least two doors and one or two push-out  
          windows to serve as emergency exits.  Also being heard today in  
          this committee.

          Assembly Votes:
               Floor:    71-0 (Unofficial)
               Appr: 13-1
               Trans:    15-0

          POSITIONS:  (Communicated to the committee before noon on  
          Wednesday,                                             September  
          11, 2013.)

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

               OPPOSED:  None received.