BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 1574


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          ASSEMBLY THIRD READING


          AB  
          1574 (Chiu)


          As Amended  April 12, 2016


          Majority vote


           ------------------------------------------------------------------ 
          |Committee       |Votes|Ayes                  |Noes                |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |----------------+-----+----------------------+--------------------|
          |Utilities       |13-0 |Gatto, Patterson,     |                    |
          |                |     |Burke, Chávez, Dahle, |                    |
          |                |     |Cristina Garcia,      |                    |
          |                |     |Eduardo Garcia,       |                    |
          |                |     |Hadley,               |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |                |     |Roger Hernández,      |                    |
          |                |     |Obernolte, Quirk,     |                    |
          |                |     |Santiago, Ting        |                    |
          |                |     |                      |                    |
          |----------------+-----+----------------------+--------------------|
          |Transportation  |15-0 |Frazier, Linder,      |                    |
          |                |     |Baker, Bloom, Brown,  |                    |
          |                |     |Chu, Daly, Dodd,      |                    |
          |                |     |Gomez, Kim, Mathis,   |                    |
          |                |     |Medina, Melendez,     |                    |
          |                |     |Nazarian, O'Donnell   |                    |
          |                |     |                      |                    |
          |----------------+-----+----------------------+--------------------|








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          |Appropriations  |20-0 |Gonzalez, Bigelow,    |                    |
          |                |     |Bloom, Bonilla,       |                    |
          |                |     |Bonta, Calderon,      |                    |
          |                |     |Chang, Daly, Eggman,  |                    |
          |                |     |Gallagher, Eduardo    |                    |
          |                |     |Garcia, Roger         |                    |
          |                |     |Hernández, Holden,    |                    |
          |                |     |Jones, Obernolte,     |                    |
          |                |     |Quirk, Santiago,      |                    |
          |                |     |Wagner, Weber, Wood   |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
           ------------------------------------------------------------------ 


          SUMMARY:  Requires, beginning January 1, 2018, the California  
          Public Utilities Commission (CPUC), in collaboration with the  
          Department of Motor Vehicles (DMV), to verify that the buses,  
          limousines, and modified limousines used by a passenger stage  
          corporation (PSC) or a charter-party carrier (CPC) have been  
          reported and meets safety requirements.  Specifically, this  
          bill:  


          1)Requires the CPUC to verify on an annual basis, in  
            collaboration with DMV, that the 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 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 each CPC to furnish annually to the CHP and CPUC a  
            list of all buses, limousines and modified limousines used in  
            the transportation for compensation, including the vehicle  
            registration information for each vehicle.


          5)Requires the CPUC to furnish a copy of the specified list to  
            the carrier's insurer, if the carrier's accident liability  
            protection is provide by a policy of insurance.


          6)Authorizes the CPUC, in addition to any other specified  
            penalties, for a first occurrence, to suspend the carrier's  
            certificate or permit or impose a fine, or both, and for a  
            subsequent occurrence may suspend or revoke the certificate or  
            impose a fine, or both, if the CPC's insurer informs the CPUC  
            that the carrier has failed to obtain insurance coverage for  
            any vehicle reported on the specified list. 


          7)Prohibits the CPUC from issuing or continuing in effect any  
            permit or certificate of a PSC or CPC that has not submitted  
            the required list.


          8)Requires the DMV, in issuing or renewing a commercial vehicle  
            registration, to require the owner of a bus, limousine, or  
            modified limousine used by a CPC or PSC to disclose the name  
            of the carrier or corporation that will be using the vehicle  
            in its operations.


          9)Requires the DMV to notify the CPUC when a CPC or PSC renews  
            or first registers a bus, limousine, or modified limousine,  








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            and provide the CPUC with information that will allow it to  
            identify the vehicle.


          10)Provides that the bill take effect on January 1, 2018.


          FISCAL EFFECT:  According to the Assembly Appropriations  
          Committee, the total costs to the CPUC would be several hundred  
          thousand dollars annually, but will depend on the amount of  
          additional workload.  In addition, the CHP will incur an  
          estimated cost of about $200,000 for every additional 2,500  
          vehicle inspections.  Furthermore, the DMV will incur a 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.


          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  
            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:  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  








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            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.  Types of CPCs include limousines, tour  
            buses, sightseeing services, and charter and party buses.


          3)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.  


          4)CPUC and DMV Discrepancies:  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 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, beginning January 1, 2018, the CPUC, in  
            collaboration with the DMV, to verify that the buses,  
            limousines, and modified limousines used by a PSC or a CPC has  
            been reported and meet safety requirements.  




          Analysis Prepared by:                                             
                          Edmond Cheung / U. & C. / (916) 319-2083  FN:  
          0003247








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