BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 1574


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          Date of Hearing:  May 4, 2016


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                               Lorena Gonzalez, Chair


          AB  
          1574 (Chiu) - As Amended April 12, 2016


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          |Policy       |Utilities and Commerce         |Vote:|13 - 0       |
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          |             |Transportation                 |     |15 - 0       |
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          Urgency:  No  State Mandated Local Program:  YesReimbursable:   
          No


          SUMMARY:


          This bill requires the Public Utilities Commission (PUC),  
          beginning January 1, 2018, to verify with the DMV that the  
          buses, limousines, and modified limousines used by a passenger  
          stage corporation (PSC) or a charter-party carrier (CPC) have  
          been reported and meet safety requirements. Specifically, this  
          bill:  









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          1)Requires PUC to: 


             a)   Verify with DMV, on an annual basis, that buses,  
               limousines, and modified limousines used by a PSC or CPC  
               have been reported to the PUC by the carrier.


             b)   Ensure that all newly registered buses, limousines, or  
               modified limousines of PSCs or CPCs, and reported by DMV,  
               meet all statutory and regulatory requirements for safe  
               operation.


             c)   Take immediate steps, when it becomes aware of a new  
               such vehicle not reported to the commission, to require the  
               carrier to update its reporting of buses, limousines, and  
               modified limousines to the PUC and request the CHP to  
               conduct a safety inspection of the vehicle.


          2)Requires every PSC and CPC to report annually to the PUC, in  
            addition to the list of all their buses, limousines, and  
            modified limousines used in transportation for compensation,  
            the vehicle registration information for each vehicle.


          3)Prohibits the PUC 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  
            the commission.


          4)Requires the DMV to notify the PUC when a CPC or PSC renews or  
            first registers a bus, limousine, or modified limousine, and  
            to provide the PUC with information that will allow it to  
            identify the vehicle.









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          FISCAL EFFECT:


          1)It is unknown how many additional buses and limousines not  
            currently reported to the PUC will come under the commission's  
            purview due to the receipt of registration information from  
            the DMV. The commission estimates this number could be up to  
            25,000 vehicles. The DMV notes that it would be reliant on  
            carriers to self-report to the department, thus adding  
            uncertainty to any estimate. Nevertheless, the PUC would need  
            additional staff regarding increased vehicle registrations and  
            new permit applications from CPCs and PSCs, with the attendant  
            additional regulatory activity associated with the additional  
            registrations, plus one-time and ongoing information  
            technology support costs. Total costs to the commission would  
            be several hundred thousand dollars annually, but again, will  
            depend on the amount of additional workload. [Transportation  
            Reimbursement Account]


          2)The CHP will incur costs for inspections of additional CPC/PSC  
            vehicles identified through this bill. Estimated costs are  
            about $200,000 for every additional 2,500 vehicle inspections.  
            [Motor Vehicle Account]


          3)The DMV will incur one-time special fund cost of around  
            $225,000 to establish four new body-type codes, in order to  
            distinguish auto or commercial vehicles used by a PSC or CPC.  
            [Motor Vehicle Account]


          COMMENTS:


          1)Background. 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  








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            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.  The PUC  
            does not regulate the fees charged by CPCs.  Types of CPCs  
            include limousines, tour buses, sightseeing services, and  
            charter and party buses.


          2)Purpose. 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 PUC,  
            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."  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.


          3)Related Legislation. AB 1677 (Ting), pending in this  
            committee, requires the CHP to develop protocols for the  
            inspection of tour buses by local agencies. 


          Analysis Prepared by:Chuck Nicol / APPR. / (916)  
          319-2081














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