BILL ANALYSIS Ó
AB 1574
Page 1
Date of Hearing: March 30, 2016
ASSEMBLY COMMITTEE ON UTILITIES AND COMMERCE
Mike Gatto, Chair
AB 1574
(Chiu) - As Introduced January 4, 2016
SUBJECT: Vehicles of charter-party carriers of passengers and
passenger stage corporations
SUMMARY: Requires the California Public Utilities Commission
(CPUC) to verify with the Department of Motor Vehicles (DMV)
that the buses, limousines, and modified limousines used by a
passenger stage corporation (PSC) or a charter-party carrier
(CPC) has been reported and meet safety requirements.
Specifically, this bill:
1)Requires the CPUC to verify with the DMV, on a continuous
basis, that buses, limousines, and modified limousines used by
a PSC or CPC have been reported to the CPUC by the carrier.
2)Requires the CPUC to ensure that all newly registered buses,
limousines, or modified limousines of PSCs or CPCs, reported
by the DMV, meet all statutory and regulatory requirements for
safe operation.
3)Requires the CPUC to take immediate steps to require the PSC
or CPC to update its reporting of buses, limousines, and
modified limousines to the CPUC and request the California
Highway Patrol (CHP) to conduct a safety inspection of the
bus, limousine, or modified limousine, if the CPUC become
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aware that the vehicle has not been reported by the carrier.
4)Prohibits a PSC or CPC from transporting passengers on a bus,
limousine, or modified limousine, without securing a
satisfactory rating from the CHP.
5)Authorizes a law enforcement agency from impounding a bus,
limousine, or modified limousine of a PSC or CPC that is
operating without a satisfactory rating from the CHP.
6)Authorizes the CPUC to impose a penalty and revoke the
operating certificate or permit of a PSC or CPC found to be
operating a bus, limousine, or modified limousine without a
satisfactory rating from the CHP.
7)Requires the DMV to notify the CPUC when a CPC or PSC first
registers a bus, limousine, or modified limousine, and provide
the CPUC with information that will allow it to identify the
vehicle.
EXISTING LAW:
1)Establishes the "Passenger Charter-Party Carriers Act," which
directs the CPUC to issue permits or certificates to CPCs,
investigate complaints against carriers, and cancel, revoke,
or suspend permits and certificates for specific violations.
(Public Utilities Code Section 5381 et seq.)
2)Authorizes the CPUC to regulate PSCs, through the issuance of
a certificate, require insurance and workers compensation, and
take appropriate enforcement actions and other provisions, as
specified. (Public Utilities Code Sections 1031 to 1045)
3)Defines "charter party carriers of passengers" as every person
engaged in the transportation of person by motor vehicle for
compensation, whether in common or contract carriage, over any
public highway in the state. (Public Utilities Code Section
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5360)
4)Defines a "passenger stage corporation" to include every
corporation or person engaged as a common carrier, for
compensation, in the ownership, control, operation, or
management of a passenger stage over a public highway in this
state between fixed termini or over a regular route, as
specified. (Public Utilities Code Section 226)
5)Authorizes the CPUC to regulate private carriers of
passengers, including requiring public liability and property
insurance, cargo insurance, knowledge of rates, documentation,
timely reporting of revenues and payment fees, and take
appropriate enforcement actions and other provisions, as
specified. (Public Utilities Code Sections 4000 to 4022)
6)Defines a "commercial vehicle," as a motor vehicle of a type
required to be registered under the vehicle code that is used
or maintained for the transportation of persons for hire,
compensation, or profit or designed, used, or maintained
primarily for the transportation of property. (Vehicle Code
Section 260)
7)Authorizes a CHP officer to impound a CPC's vehicle for 30
days if the officer determines that a violation occurred while
the bus driver was operating the CPC, as specified. (Vehicle
Code Section 14602.9)
FISCAL EFFECT: Unknown.
COMMENTS:
1)Author's Statement: "The current tour bus regulation and
inspection program isn't working. San Franciscans
unfortunately got a first-hand view of this in November when
an unregistered and uninspected tour bus crashed in Union
Square. The bus in the Union Square crash was a so-called
ghost bus, which means the CPUC, the regulator here, didn't
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know it was in the company's fleet [?] Tour buses in
California must be safer; we can't have another crash happen
like the one in Union Square. For us to make sure tour buses
are safe, we need to know that they're on the road in the
first place. Ensuring full inspections and eliminating ghost
buses are important steps we need to take so that tourists and
residents do not become victims of regulatory loopholes."
2)Background: California law regulates different modes of
passenger transportation for compensation including taxi
services, which are regulated by cities and/or counties; and
PSCs and CPCs, which are regulated by the CPUC. PSCs are
services that provide transportation to the general public on
an individual fare basis, such as scheduled bus operators,
which are buses that operate on a fixed route and scheduled
services, or airport shuttles, which operate on an on-call
door-to-door share the ride service.
CPCs are services that charter a vehicle, on a prearranged
basis, for the exclusive use of an individual or group.
Charges are based on the mileage or time of use, or a
combination of both. The CPUC does not regulate the fees
charged by CPCs. Types of CPCs include limousines, tour
buses, sightseeing services, and charter and party buses.
3)CPC Permits: The CPUC authorizes six types of certificates
and permits for CPCs: Class A certificates allow charter
service between any point in the state, such as roundtrip
sightseeing service; Class B certificates allow charter
service between any point within a 125 miles of the carrier's
home terminal; Class C certificates are for transportation
services that apply to commercial balloon operations, and
commercial river rafting or skiing; Class P permits are
restricted to vehicles under 15 passengers; Class S permits
are for round trip sightseeing; and Class Z permits are for
specialized transportation services not offered to the general
public.
The CPUC requires CPCs to meet a number of requirements until
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an operating permit or certificate is issued. These
requirements include providing sufficient proof of financial
responsibility, maintaining a preventative maintenance program
for all vehicles, possessing a safety education and training
program, and regularly checking the driving records of all
persons operating vehicles used in transportation for
compensation.
4)DMV Commercial Vehicles: While the CPUC regulates passenger
carriers, the DMV is responsible for motor vehicle
registrations. According to the DMV, a commercial vehicle is
a type of vehicle that is: 1) used or maintained for the
transportation of persons for hire, compensation, or profit,
or 2) designed, used or maintained primarily for the
transportation of property. Examples of commercial vehicles
include, buses designed to carry more than 10 persons, when
used to transport person for hire, compensation, or profit,
for hire passenger vehicles such as taxi's, rental limousines,
or ambulances, and pickup trucks that meet certain weight and
vehicle specifications.
5)San Francisco Tour Bus Crash: In November 2015, a sightseeing
tour bus operated by City Sightseeing crashed in San
Francisco's Union Square, injuring 20 people. According to
news reports, the bus was registered with the DMV, but it was
not registered with the CPUC, hence, the bus was not inspected
by CHP before it went into operation. Although the
investigation into the cause of the accident is still pending,
a CHP audit report released in December 2015, found multiple
violations and failures on City Sightseeing, many mechanical
in nature.
6)CPUC and DMV Discrepancies: According to the CPUC and DMV,
there are approximately 81,824 registered buses under the DMV,
but only approximately 12,613 buses registered with the CPUC.
Although the CPUC requires carriers to identify their CPC or
PSC vehicles during the permitting or licensing process,
according to the author not all carriers do so. In addition,
the DMV registers commercial vehicles but they are not
required to collect information on which CPC or PSC carrier
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the commercial vehicle may be operating under, nor share such
information with the CPUC. According to the author this
creates the number discrepancy between the CPUC and DMV.
This bill requires the DMV to notify the CPUC when a CPC or
PSC first registers a bus, limousine, or modified limousine,
and provide the CPUC with information to identify the vehicle.
This bill also requires the CPUC, on a continuous basis, to
verify with the DMV that the buses, limousines, and modified
limousines used by CPCs and PSCs have been reported to the
CPUC.
The author may wish to consider an amendment to require CPC
and PSC operators to provide the CPUC with the vehicle
registration information of a vehicle used by the carrier, and
provide the DMV with the name of the CPC or PSC that are
operating the vehicles.
The author may also wish to consider an amendment to require
the CPUC to collaborate with the DMV annually, to verify that
the buses, limousines, and modified limousines have been
properly reported to the CPUC.
7)CHP Inspections: Currently, the CPUC requires operators of
buses (a vehicle seating 11 or more, including the driver) to
undergo and pass a CHP inspection before a permit or license
is issued. In 2014, the Legislature passed SB 611 (Hill),
Chapter 860, Statute of 2014, which requires CHP to also
develop an inspection program for modified limousines.
Limousines are not required to undergo a CHP inspection.
This bill requires the CPUC, if it becomes aware, of a newly
registered bus, limousine, or modified limousine that has not
been reported, to take immediate steps to require the CPC or
PSC to update it's reporting of buses, limousines, and
modified limousines to the CPUC, and to request the CHP to
conduct a safety inspection of the vehicle. This bill
prohibits a CPC or PSC from transporting passengers without
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securing a satisfactory rating from the CHP. A bus,
limousine, or modified limousine may be impounded, and the
CPUC may impose penalties, including the suspension or
revoking the operating certificate or license, if the CPC or
PSC is found to be operating a newly registered bus, limousine
or modified limousine without passing a CHP inspection.
It is unclear what the impact of the bill will be on the CHP
or CPC and PSC operators, if CHP is unable to inspect all
newly registered buses, limousines or modified limousines in a
timely manner, and CPCs and PSCs are forced to leave their
vehicles idle until they receive the CHP inspection. This
bill is double referred to the Assembly Transportation
Committee.
8)Arguments in Support: According to the California Bicycle
Coalition, "The current tour bus regulation and inspection
program is not working [?] The CPUC reported recently that
12,613 buses are registered with them, but estimates indicate
that around 30,000 buses are operating across the state. We
need to be sure that tour buses in California are registered
and safe; we can't have another crash happen like the one in
Union Square."
9)Suggested Amendments:
Add the following sections to the Public Utilities Code (PUC):
PUC Section --- : The commission shall, in issuing a
certificate or permit, require a passenger stage corporation
to provide the commission with vehicle registration
information of all buses, limousines, and modified limousines
used by the carrier.
PUC Section --- : Upon a request of the commission, a
passenger stage corporation shall provide the commission with
vehicle registration information of a vehicle used by the
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carrier.
PUC Section --- : The commission shall, in issuing a
certificate or permit, require a charter party carrier to
provide the commission with vehicle registration information
of all buses, limousines, and modified limousines used by the
carrier.
PUC Section --- : Upon a request of the commission, a charter
party carrier shall provide the commission with vehicle
registration information of a vehicle used by the carrier.
Add the following section to the Vehicle Code:
Vehicle Code Section --- : The department shall, in issuing a
commercial vehicle registration, require the owner of a
vehicle used by a charter party carrier or a passenger stage
corporation, to disclose the name of the carrier or
corporation that are operating the vehicles.
Amend Section 1042.2 (a) and Section 5374.4 (a) as follows:
1042.2. (a) The commission in collaboration with the
Department of Motor Vehicles shall, on a n continuous annual
basis, verify with the Department of Motor Vehicles that the
buses, limousines, and modified limousines used by a passenger
stage corporation have been reported to the commission by the
carrier.
5374.4. (a) The commission in collaboration with the
Department of Motor Vehicles shall, on a n continuous annual
basis, verify with the Department of Motor Vehicles the buses,
limousines, and modified limousines used by a charter-party
carrier of passengers and reported to the commission by the
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carrier.
10)Related Legislation:
AB 1677 (Ting), 2016: Requires CHP to develop protocols, in
consultation with representatives of local government, to
allow for the inspection of tour buses, as specified. Pending
in the Assembly Transportation Committee.
SB 812 (Hill), 2016: Requires CHP to develop inspection fees
for CPCs and requires CPCs or PSCs to schedule CHP
inspections, as specified. Pending in the Senate
Transportation and Housing Committee.
11)Prior Legislation:
SB 541 (Hill), Chapter 718, Statutes of 2015: Codifies the
State Auditor report's recommendation on strengthening the
CPUCs oversight of transportation-related activities of
household good carrier and CPCs.
SB 611 (Hill), Chapter 860, Statutes of 2014: Requires all
modified limousines, as defined, to be equipped with two fire
extinguishers and requires the CHP to develop and implement an
inspection program for modified limousines, as specified.
12)Double Referred: This bill is double referred to the
Assembly Transportation Committee.
REGISTERED SUPPORT / OPPOSITION:
Support
California Bicycle Coalition
Greater California Livery Association
AB 1574
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Walk San Francisco
Opposition
None on file.
Analysis Prepared by:Edmond Cheung / U. & C. / (916) 319-2083