BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON TRANSPORTATION AND HOUSING
                              Senator Jim Beall, Chair
                                2015 - 2016  Regular 

          Bill No:          AB 1574           Hearing Date:    6/28/2016
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          |Author:   |Chiu                                                  |
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          |Version:  |4/12/2016                                             |
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          |Urgency:  |No                     |Fiscal:      |Yes             |
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          |Consultant|Sarah Carvill                                         |
          |:         |                                                      |
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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) have been reported and  
          meet safety requirements.    

          ANALYSIS:
          
          Existing law:
          
          1)Defines "passenger stage corporation" (PSC) as corporations or  
            persons engaged as common carriers of passengers, for  
            compensation, over any public highway in the state between  
            fixed termini or over a regular route, as specified.

          2)Defines "charter-party carrier of passengers" (CPCs) as  
            persons engaged in the transportation of persons by motor  
            vehicle for compensation over any public highway.

          3)Requires that CPCs and PSCs obtain a permit from and register  
            all individual buses with the California Public Utilities  
            Commission (CPUC).

          4)Requires the California Highway Patrol (CHP) to regulate the  
            equipment, maintenance, and safe operation of vehicles used by  







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            PSCs and CPCs, including tour buses, and to conduct annual  
            terminal inspections on all bus operators to verify that buses  
            are being maintained in accordance with the law. 

          5)Requires the CHP to conduct annual terminal inspections on all  
            operators of modified limousines beginning January 1, 2017.

          6)Requires the CHP to inspect every maintenance facility or  
            terminal of any person who operates any vehicle used by a PSC  
            or CPC without the required inspection having been conducted. 

          7)Requires PSCs and CPCs to prepare under oath and provide  
            annually to the CPUC and the CHP a list of all vehicles used  
            in transportation for compensation during the preceding year,  
            and requires the CPUC to submit this list to the corporation  
            or carrier's insurer.

          8)Authorizes the CPUC to suspend or revoke, as specified, a  
            PSC's or CPC's permit to operate for failing to obtain  
            insurance for a vehicle reported to the CPUC, and authorizes  
            the CHP to recommend that the CPUC suspend or revoke a PSC's  
            or CPC's permit to operate if the company fails to maintain  
            vehicles used for transporting passengers in safe operating  
            condition.

          9)Establishes a process for revoking a permit to operate.

          This bill:

          1)Requires the DMV, when issuing or renewing a commercial  
            vehicle registration for any bus, limousine, or modified  
            limousine used by a CPC or PSC, to obtain from the owner of  
            the vehicle the name of the CPC or PSC that will be using the  
            vehicle.

          2)Requires the CPUC and the DMV to work together to verify, on  
            an annual basis, that the vehicles used by PSCs and CPCs have  
            been reported to the commission.

          3)Requires the DMV to notify the CPUC when a CPC or PSC first  
            registers a bus, limousine, or modified limousine, and to  
            provide the CPUC with information sufficient to identify the  
            vehicle.

          4)Requires the CPUC to ensure that newly registered buses,  








          AB 1574 (Chiu)                                      Page 3 of ?
          
          
            limousines, and modified limousines used by PSCs and CPCs, as  
            reported by the DMV, meet all statutory and regulatory  
            requirements for safe operation.

          5)If the CPUC becomes aware that a PSC or CPC has not properly  
            reported a newly registered vehicle, requires the CPUC to  
            immediately take steps to compel the company to update its  
            reporting of vehicles, and to request that the CHP conduct a  
            safety inspection of the unreported vehicle.

          6)Requires PSCs and CPCs to include vehicle registration  
            information in the vehicle lists provided to the CPUC under  
            existing law.

          7)Provides that the CPUC shall not issue or renew the permit of  
            a PSC or a CPC that has not submitted a list of the vehicles  
            it operates, as specified.

          8)Provides that this bill shall take effect January 1, 2018.

          COMMENTS:

          1)Purpose. 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 didn't know it was  
            in the company's fleet.  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.  It's also about  
            accountability - 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: San Francisco tour bus accident.  On November 13,  
            2015, 19 people were injured when a City Sightseeing bus  
            crashed into construction scaffolding in San Francisco's Union  
            Square.  The bus was originally a transit vehicle and had been  








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            retrofitted as a double-decker open-air tour bus before it was  
            sold to City Sightseeing.  Despite early speculation that the  
            vehicle's brakes may have failed, on March 23, 2016, the CHP  
            announced that the cause of the crash was driver error.   
            Post-crash investigations revealed that City Sightseeing had  
            not notified the CPUC when it added the bus to its fleet, as  
            required by law, and the CHP identified other safety  
            violations at the company in a December 2015 terminal  
            inspection.

          3)What's covered?  This bill deals with vehicles used for  
            transportation by CPCs and PSCs. The former transport  
            passengers traveling under a single contract for a fixed fee,  
            usually based on distance traveled (e.g., charter buses).  The  
            latter transport passengers over a fixed route between regular  
            termini (e.g., airporter buses).  The bill does not relate to  
            school buses or public transit buses.  A bus is defined as a  
            vehicle designed to carry more than 10 people, including the  
            driver.  The bill also covers other types of vehicles used by  
            CPCs and PSCs, including limousines and modified limousines.   
            Modified limousines are defined as vehicles that have been  
            altered to extend the distance between the front and rear  
            wheels, thereby allowing them to transport more passengers.

          4)Scope of the problem.  This bill targets vehicles that are  
            individually registered with the DMV but not the CPUC, even  
            though they are used by CPUC-regulated entities.  According to  
            CPUC and DMV, there are approximately 81,824 buses registered  
            with DMV, but only around 12,613 buses reported to the CPUC.   
            Part of this discrepancy is due to other classes of buses -  
            for example, courtesy shuttles - that must register with the  
            DMV but are not regulated by the CPUC.  However, neither the  
            CPUC nor the DMV currently collect all the data that would  
            allow them to determine how many of the missing buses are  
            properly registered with the DMV only and how many are "ghost  
            buses" that should also be overseen by the CPUC.

          5)Why vehicle registration?  While vehicles must be registered  
            with the DMV to operate on California highways, it is much  
            easier for buses and limousines to fly under the radar of the  
            CPUC.  This bill requires the DMV to solicit information about  
            the company that a vehicle will be used by as part of the  
            commercial vehicle registration process, which operators  
            cannot avoid.  With this data, the DMV can generate a list of  
            registered vehicles associated with each CPC and PSC.  This  








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            list can then be cross-referenced with the self-reported lists  
            supplied by carriers to the CPUC under existing law.  This  
            bill also requires carriers to include vehicle registration  
            information in their self-reported lists, making it possible  
            for the CPUC and DMV to identify exactly which vehicles have  
            been registered but not reported.  These new requirements,  
            combined with this bill's mandate that the CHP and the CPUC  
            work together to identify DMV-registered vehicles that are not  
            registered with the CPUC, close the information gaps in  
            current law that allow vehicles to slip through the cracks.  

          6)Other ghosts.  In addition to the situation described above,  
            there are other ways that a bus or other commercial vehicle  
            used by a PSC or CPC can operate without proper oversight by  
            the CPUC and the CHP.  The author is considering amendments to  
            be taken in a later committee to address another common type  
            of ghost bus:  Vehicles that are properly registered with the  
            DMV, but which are operated by carriers that are themselves  
            not properly registered with the CPUC.  Additional categories  
            of ghost buses are either extremely difficult to identify or  
            comparatively rare.

          7)Double-referral. This bill was heard by the Energy, Utilities,  
            and Communications committee on June 13 and passed out on a  
            11-0 vote.

          Related Legislation:
          
          AB 1677 (Ting, 2016) - authorizes the CHP to enter into  
          agreements with local governments to increase terminal  
          inspections. This bill is pending in this committee.

          SB 812 (Hill, 2016) - changes existing terminal inspection  
          program administered by the CHP to make it more  
          performance-based.  This bill is pending in the Assembly  
          Transportation Committee.
          
          Assembly Votes:

            Floor:         79-0
            Appr:          20-0
            Trans.:        15-0
          










          AB 1574 (Chiu)                                      Page 6 of ?
          
          
          FISCAL EFFECT:  Appropriation:  No    Fiscal Com.:  Yes     
          Local:  Yes


            POSITIONS:  (Communicated to the committee before noon on  
          Wednesday,
                          June 22, 2016.)
          
            SUPPORT:  

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

          OPPOSITION:

          None received
          
          
                                      -- END --