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