BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON ENERGY, UTILITIES AND COMMUNICATIONS
                              Senator Ben Hueso, Chair
                                2015 - 2016  Regular 

          Bill No:          AB 1574           Hearing Date:    6/13/2016
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          |Author:    |Chiu                                                 |
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          |Version:   |4/12/2016    As Amended                              |
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          |Urgency:   |No                     |Fiscal:      |Yes             |
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          |Consultant:|Nidia Bautista                                       |
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          SUBJECT: Vehicles of charter-party carriers of passengers and  
          passenger stage corporations

            DIGEST:   This bill 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.   
           
           ANALYSIS:
          
          Existing law:

          1)Establishes the CPUC and empowers it to regulate privately  
            owned public utilities and common carriers in California.   
            (Article XII of the California Constitution; Public Utilities  
            Code §301 et seq.)

          2)Defines passenger stage corporation as every 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 fixed  
            termini or over a regular route, not including those  
            exclusively operating within a local jurisdiction or school  
            buses.  Establishes the CPUC's authority to regulate, require  
            license or permit to operate, require vehicles used are in  
            safe operating condition, require insurance and workers  
            compensation, take appropriate enforcement action and other  
            provisions related to passenger stage corporations.  (Public  
            Utilities Code §§226 and 1031 et seq.) 







          AB 1574 (Chiu)                                      Page 2 of ?
          
          

          3)Defines "charter-party carrier of passengers" as every person  
            engaged in the transportation of persons by motor vehicle for  
            compensation, whether in common or contract carriage, over any  
            public highway in the state and includes any person,  
            corporation, or other entity engaged in the provision of a  
            hired driver service when a rented motor vehicle is being  
            operated by a hired driver. Establishes the CPUC's authority  
            to regulate, require license or permit to operate, require  
            insurance and workers compensation, require vehicles are in  
            safe operating condition, take appropriate enforcement action  
            and other provisions related to charter-party carrier of  
            passengers.  (Public Utilities Code §5351)

          4)Establishes the CPUC's authority 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 provides that the CPUC can take appropriate enforcement  
            action, etc. (Public Utilities Code §4001)

          5)Provides the CHP with the ability to take enforcement action  
            related to requirements of buses of charter-party carriers as  
            required by the Public Utilities Code, including ensuring a  
            proper and current license or permit from the CPUC.  (Vehicle  
            Code §14602.9)

          6)Provides that the DMV shall regulate the safe operation of  
            buses, including tour buses, and establish regulations  
            regarding equipment and operations.  (Vehicle Code §34500 et  
            seq.)

          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.










          AB 1574 (Chiu)                                      Page 3 of ?
          
          
          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  
            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.


          Background

          On November 13, 2015, a City Sightseeing bus crashed into  
          construction scaffolding in San Francisco's Union Square  
          resulting in 19 people injured.  The bus was originally used as  
          a transit vehicle and had been retrofitted as a double-decker  
          open-air tour bus before it was sold to City Sightseeing.  The  
          CHP's investigation found the cause of the crash was driver  
          error, specifically driving at an unsafe speed.  Post-crash  
          investigations revealed that City Sightseeing had not notified  
          the CPUC when it added the bus to its fleet, as required by law.  
           The CHP identified other safety violations at the company in a  
          December 2015 terminal inspection.  

          Ghost buses.  The CPUC has regulatory oversight over tour buses  








          AB 1574 (Chiu)                                      Page 4 of ?
          
          
          that operate as charter-party carriers or passenger stage  
          corporations.  Simultaneously, tour buses must be registered  
          with the DMV in order to operate on public roads.  Under current  
          law, tour bus operators are required to provide a list of all  
          vehicles in operation to CPUC subject to its licensing  
          requirements.  However, operators sometimes fail to identify all  
          their vehicles to the CPUC.  Additionally the DMV is not  
          required to share registration bus information with the CPUC.   
          Unfortunately, the disconnect between the two agencies leads to  
          "ghost" buses that are not properly licensed with the CPUC and,  
          as a result, these buses also do not undergo safety inspections  
          required by the CHP for CPUC-licensed buses, which can lead to  
          dangerous conditions on California roads. According to the  
          Assembly Transportation Committee analysis, based on data from  
          the CPUC and DMV, there are approximately 81,824 buses  
          registered with the DMV, but only approximately 12,600 buses  
          licensed are registered with CPUC.  Although CPUC requires  
          carriers to identify their CPC or PSC vehicles during the  
          permitting or licensing process, 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.  By requiring DMV and CPUC to collect and  
          share registration and licensing information, the author intends  
          to ensure that all vehicles operated by CPCs or PSCs are  
          properly accounted for and inspected.
          Double Referral. Should this bill be approved by the committee,  
          it will be re-referred to the Senate Committee on Transportation  
          and Housing for its consideration. 

          Prior/Related Legislation
          
          AB 1677 (Ting, 2016) would require the CHP to develop protocols  
          for the inspection of tour buses by local agencies.  The bill is  
          currently in the Senate Committee on Transportation and Housing.

          SB 247 (Lara, 2015) would require charter buses to have  
          specified emergency equipment by July 1, 2017, including a  
          secondary exit door, burn resistant materials, event data  
          recorder, and others.  The bill also would require charter bus  
          drivers to instruct passengers of locations and operations of  
          emergency exits and the use of seat belts prior to the beginning  
          of a trip and provide these instructions in writing. The bill is  
          currently in the Assembly Committee on Transportation.









          AB 1574 (Chiu)                                      Page 5 of ?
          
          
          SB 812 (Hill, 2016) would make multiple changes to the CHP's  
          authority to inspect tour buses, with the goal of increasing  
          regulatory scrutiny of operators with poor safety records.  The  
          bill is currently in the Assembly Committee on Transportation.

          FISCAL EFFECT:                 Appropriation:  No    Fiscal  
          Com.:             Yes          Local:          Yes


            SUPPORT:  

          Board of Supervisors of the City and County of San Francisco 
          California Bicycle Coalition
          Greater California Livery Association
          San Francisco Bicycle Coalition
          Walk SF

          OPPOSITION:

          None received 

          ARGUMENTS IN SUPPORT:    According to the author, 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.  The incident  
          highlights an unfortunate disconnect in California's oversight  
          of tour bus safety.  This bill is very simple: it requires the  
          DMV to let the CPUC know when a bus is registered.  And it  
          requires the CPUC to continuously check with the DMV to see if  
          new buses are registered.  It's about making sure that these  
          large state bureaucracies talk to each other.
          
          

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