BILL ANALYSIS Ó AB 1574 Page 1 Date of Hearing: May 4, 2016 ASSEMBLY COMMITTEE ON APPROPRIATIONS Lorena Gonzalez, Chair AB 1574 (Chiu) - As Amended April 12, 2016 ----------------------------------------------------------------- |Policy |Utilities and Commerce |Vote:|13 - 0 | |Committee: | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | |Transportation | |15 - 0 | | | | | | | | | | | ----------------------------------------------------------------- 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: AB 1574 Page 2 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. AB 1574 Page 3 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 AB 1574 Page 4 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 AB 1574 Page 5