BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | SB 611| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- UNFINISHED BUSINESS Bill No: SB 611 Author: Hill (D) Amended: 8/4/14 Vote: 27 - Urgency PRIOR SENATE VOTES NOT REVELENT SENATE TRANSPORTATION & HOUSING COMMITTEE : 8-0, 8/25/14 (Pursuant to Senate Rule 29.10) AYES: DeSaulnier, Beall, Cannella, Galgiani, Hueso, Lara, Pavley, Roth NO VOTE RECORDED: Gaines, Liu, Wyland ASSEMBLY FLOOR : 75-1, 8/20/14 - See last page for vote SUBJECT : Limousines: inspection program: safety requirements SOURCE : Author DIGEST : This bill requires all modified limousines, as defined, to be equipped with two fire extinguishers and requires the California Highway Patrol (CHP) to develop and implement an inspection program for modified limousines, as specified. Assembly Amendments delete the Senate version, which dealt with the Public Utilities Commission (PUC) now renamed Division of Ratepayer Advocates, and instead add the current language. ANALYSIS : CONTINUED SB 611 Page 2 Existing law: 1. Establishes the "Passenger Charter-Party Carriers Act," which directs PUC to issue permits or certificates to charter-party carrier of passengers (CPCs), 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, whether in common or contract carriage, over any public highway in the state. 3. Defines "passenger stage corporation" as a corporation or person engaged as a common carrier, for compensation, in the ownership, control, operation, or management of any passenger stage over any public highway in the state between a fixed termini or over a regular route, as specified. 4. 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. 5. 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. 6. 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. This bill: 1. Requires passenger stage corporations (PSCs) and CPCs to provide a list to PUC specifically identifying each modified limousine, as specified. 2. Prohibits PUC from issuing to a PSC or CPC any permit, CONTINUED SB 611 Page 3 certificate, or authority to provide transportation services if all required inspection fees are not submitted to PUC, as specified. Further requires PUC to terminate any existing permit, certificate, or authority of a PSC or CPC if all required inspection fees are not submitted to PUC, as specified. 3. Requires PUC to no later than January 1, 2015, to provide CHP with a list of all modified limousines and their terminal locations in order for CHP to promulgate regulations for a limousine inspection program. 4. Repeals existing provisions requiring CPCs to obtain special "Livery" license plates issued by the Department of Motor Vehicles (DMV) and to permanently affix livery plates on all limousines the CPC operates. 5. Provides a definition for "modified limousine," as specified. 6. Requires all modified limousines to be equipped with two fire extinguishers, as specified. Requires a driver or operator of a modified limousine to notify passengers of the location of each fire extinguisher in the vehicle. 7. Requires CHP to establish a limousine inspection program and requires terminals of modified limousines operated by a PSC or CPC to be inspected by CHP once every 13 months. 8. Requires CHP to implement the limousine inspection program no later than July 1, 2016, and requires CHP to adopt emergency regulations for purposes of developing and implementing the inspection program. 9. Requires CHP to establish an inspection fee through the promulgation of regulations. Specifies the inspection fee will be collected every 13 months, based on the number of modified limousines operated by a PSC or CPC, and set at the amount necessary to cover CHP's cost to administer the limousine inspection program. 10.Requires the inspection fee to be collected by PUC and requires CHP to transmit inspection data to PUC. CONTINUED SB 611 Page 4 11.Adds double-jointing language to avoid chaptering out conflicts with AB 2752 (Assembly Transportation Committee) of the current legislative session. Comments CPCs and PSCs are regulated by the PUC. CPC's provide limousine transportation services that are prearranged by a "chartering party" (e.g. person or group) and are designed to allow the chartering party to have control over the transportation - i.e., when and where the trip originates and ends and the itinerary in between that period. Additionally, CPCs may not charge individual fares; rather, fees are based on vehicle mileage, time of use, or some combination thereof. PSCs typically provide scheduled services over fixed routes and charge individual fees. PSCs also provide on call "door to door" shuttle services, such as airport shuttle service. However, PSCs may also operate limousine transportation services similar to CPCs. The key difference is that CPSs solely operate chartered limousine transportation services whereas PSCs may operate both shuttle and limousine services. PSCs and CPCs that operate limousines with a seating capacity for more than 10 passengers are 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, PSCs and CPCs 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 limousine operators must submit to the PUC an application to obtain a permit or certificate, pay a fee, and provide adequate evidence of financial responsibility. Upon receiving a permit or certificate, ongoing or periodic vehicle inspections are not required to be conducted by PUC or CHP. 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. PSCs and CPCs may be subject to a PUC investigation under specific circumstances including, a complaint by a customer, a complaint by an industry or law enforcement entity, or a notice of lapsed or cancelled insurance policies; however a safety inspection of limousines is not required. CONTINUED SB 611 Page 5 Last year, over a two-month period, two limousine fires occurred in Northern California. On May 5, 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. On June 11, 2013, nine passengers successfully exited a limousine in Walnut Creek prior to the vehicle catching fire while idling. In both cases, the modified limousines were not subject to CHP inspections due to the vehicle's seating capacity being less than 10 passengers. FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes Local: Yes According to the Assembly Appropriations Committee: 1.The PUC will incur annual special fund costs of around $200,000 to implement procedures and collect the required data on limousines for transmission to the CHP and to collect inspection fees on behalf of DMV. 2.Significant cost to the CHP to establish and implement an ongoing safety inspection program for modified limousines. According to the CHP, these costs cannot be determined until the CHP receives the data from the PUC on the number of limousines and terminals to be inspected. Annual program costs would likely be at least $2 million beginning in 2016-17. SUPPORT : (Verified 8/20/14) Alliance of Automobile Manufacturers California Fire Chiefs Association California Professional Firefighters California State Sheriffs' Association Greater California Livery Association Orange County Fire Authority ASSEMBLY FLOOR : 75-1, 08/20/14 AYES: Achadjian, Alejo, Allen, Ammiano, Bigelow, Bloom, Bocanegra, Bonilla, Bonta, Bradford, Brown, Buchanan, Ian CONTINUED SB 611 Page 6 Calderon, Campos, Chau, Chávez, Chesbro, Conway, Cooley, Dababneh, Dahle, Daly, Dickinson, Eggman, Fong, Fox, Frazier, Beth Gaines, Garcia, Gatto, Gomez, Gonzalez, Gordon, Gorell, Gray, Hagman, Hall, Harkey, Roger Hernández, Holden, Jones, Jones-Sawyer, Levine, Linder, Logue, Lowenthal, Maienschein, Medina, Melendez, Mullin, Muratsuchi, Nazarian, Nestande, Olsen, Pan, Patterson, Perea, John A. Pérez, V. Manuel Pérez, Quirk, Quirk-Silva, Rendon, Rodriguez, Salas, Skinner, Stone, Ting, Wagner, Waldron, Weber, Wieckowski, Wilk, Williams, Yamada, Atkins NOES: Donnelly NO VOTE RECORDED: Grove, Mansoor, Ridley-Thomas, Vacancy JA:k 8/20/14 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END **** CONTINUED