BILL ANALYSIS Ó
AB 1574
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Date of Hearing: April 18, 2016
ASSEMBLY COMMITTEE ON TRANSPORTATION
Jim Frazier, Chair
AB 1574
(Chiu) - As Amended April 12, 2016
SUBJECT: Vehicles of charter-party carriers of passengers and
passenger stage corporations
SUMMARY: Requires, beginning January 1, 2018, 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 CPUC to verify with DMV, on an annual basis, that
buses, limousines, and modified limousines used by a PSC or
CPC have been reported to CPUC by the carrier.
2)Requires CPUC to ensure that all newly registered buses,
limousines, or modified limousines of PSCs or CPCs, reported
by DMV, meet all statutory and regulatory requirements for
safe operation.
3)Requires CPUC to take immediate steps to require the PSC or
CPC to update its reporting of buses, limousines, and modified
limousines to CPUC and request the Department of the
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California Highway Patrol (CHP) to conduct a safety inspection
of the bus, limousine, or modified limousine, if CPUC become
aware that the vehicle has not been reported by the carrier.
4)Requires every PSC and CPC to report annually to CPUC, in
addition to the list of all buses, limousines, and modified
limousines used in transportation for compensation by each PSC
and CPC, the vehicle registration information for each
vehicle.
5)Prohibits CPUC from issuing or continuing in effect any permit
or certificate of a PSC or CPC that does not submit the
vehicle registration information for each vehicle reported to
CPUC.
6)Requires the DMV to notify the CPUC when a CPC or PSC renews
or first registers a bus, limousine, or modified limousine,
and provide the CPUC with information that will allow it to
identify the vehicle.
7)Provides that the bill take effect on January 1, 2018.
EXISTING LAW:
1)Defines "passenger stage corporation" PSC 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.
2)Defines "charter-party carrier of passengers" CPC as a person
engaged in the transportation of persons by motor vehicle for
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compensation over any public highway.
3)Establishes the "Passenger Charter-Party Carriers Act," which
directs the CPUC to issue permits or certificates to
charter-party carriers, investigate complaints against
carriers, and cancel, revoke, or suspend permits and
certificates for specific violations.
4)Requires CHP to regulate the equipment, maintenance, and safe
operation of vehicles used by a PSC or CPC.
5)Requires CHP to inspect every maintenance facility or terminal
of any person who operates any vehicle used by a PSC or CPC
without this inspection having been conducted.
6)Requires every PSC and CPC to report annually to CPUC a list
of all buses, limousines, and modified limousines used in
transportation for compensation by each PSC and CPC.
7)Prohibits CPUC from issuing or continuing in effect any
permit, certificate, or authority of a PSC that has not
submitted fees required for inspection by CHP, as required.
8)Authorizes CPUC to suspend a PSC or CPC's certificate or
permit, or impose a fine, or both upon a first instance of a
PSC or CPC failing to obtain insurance for each vehicle it
reports to CPUC, and authorizes CPUC to suspend or revoke the
certificate, or impose a fine, or both upon a subsequent
instance.
FISCAL EFFECT: Unknown
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COMMENTS: 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 CPUC. PSCs 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 a charter vehicle, on a pre-arranged 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. CPUC does
not regulate the fees charged by CPCs. Types of CPCs include
limousines, tour buses, sightseeing services, and charter and
party buses.
AB 1574 would require DMV to notify CPUC when a CPC or PSC first
registers a bus, limousine, or modified limousine, and provide
CPUC with information to identify the vehicle. This bill also
requires CPUC, on a continuous basis, to verify with DMV that
the buses, limousines, and modified limousines used by CPCs and
PSCs have been reported to CPUC.
The author introduced this bill in response to a tour bus crash
in San Francisco in November 2015 that injured 20 people.
According to the author, although the bus was registered with
the DMV, it was not registered with the CPUC, and therefore the
bus was not inspected by CHP before it went into operation. The
author states that, "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."
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 the bus operator, many
mechanical in nature.
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According to CPUC and DMV, there are approximately 81,824 buses
registered with DMV, but only approximately 12,613 buses
registered with CPUC. Although 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, DMV registers commercial vehicles but they are
not required to collect information on which CPC or PSC carrier
the commercial vehicle may be operating under, nor share such
information with CPUC. According to the author this creates the
number discrepancy between CPUC and DMV.
By requiring DMV and CPUC to collect and share identifying
information, the author intends to ensure that all vehicles
operated by CPCs or PSCs are properly accounted for and
inspected.
Double referral: This bill passed out of the Assembly Utilities
and Commerce Committee on March 30, 2016, with a 13-0 vote.
Related legislation: AB 1677 (Ting), requires CHP to develop
protocols for the inspection of tour buses by local agencies.
AB 1677 is scheduled to be heard by this committee on April 18,
2016.
SB 812 (Hill), requires CHP to develop inspection fees for CPCs
and requires CPCs or PSCs to schedule CHP inspections, as
specified. SB 812 is scheduled to be heard by the Senate
Energy, Utilities and Communications Committee on April 19,
2016.
Previous legislation: SB 541 (Hill), Chapter 718, Statutes of
2015, codified the State Auditor report's recommendation on
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strengthening CPUC's oversight of transportation-related
activities of household good carrier and CPCs.
SB 611 (Hill), Chapter 860, Statutes of 2014, required all
modified limousines, as defined, to be equipped with two fire
extinguishers and required CHP to develop and implement an
inspection program for modified limousines, as specified.
REGISTERED SUPPORT / OPPOSITION:
Support
California Bicycle Coalition
San Francisco Board of Supervisors
Walk San Francisco
Opposition
None on file
Analysis Prepared by:Justin Behrens / TRANS. / (916) 319-2093
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