BILL ANALYSIS                                                                                                                                                                                                    Ó






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          |SENATE RULES COMMITTEE            |                       AB 1574|
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                                   THIRD READING 


          Bill No:  AB 1574
          Author:   Chiu (D), et al.
          Amended:  4/12/16 in Assembly
          Vote:     21 

           SENATE ENERGY, U. & C. COMMITTEE:  11-0, 6/13/16
           AYES:  Hueso, Morrell, Cannella, Gaines, Hertzberg, Hill, Lara,  
            Leyva, McGuire, Pavley, Wolk

           SENATE TRANS. & HOUSING COMMITTEE:  10-0, 6/28/16
           AYES:  Beall, Cannella, Allen, Bates, Gaines, Leyva, McGuire,  
            Mendoza, Roth, Wieckowski
           NO VOTE RECORDED:  Galgiani

           SENATE APPROPRIATIONS COMMITTEE:  7-0, 8/11/16
           AYES:  Lara, Bates, Beall, Hill, McGuire, Mendoza, Nielsen

           ASSEMBLY FLOOR:  79-0, 5/31/16 - See last page for vote

           SUBJECT:   Vehicles of charter-party carriers of passengers and  
                     passenger stage corporations


          SOURCE:    Author

          DIGEST:   This bill requires the California Public Utilities  
          Commission (CPUC), beginning January 1, 2018, 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.  










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          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 PSC 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.  (Public  
             Utilities Code §§226 and 1031 et seq.) 


           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.  (Public Utilities  
             Code §5351 et seq.)


           4) Requires a bus operated as a CPC to undergo an annual bus  
             terminal and vehicle inspection conducted by the California  
             Highway Patrol (CHP).  (Public Utilities Code §5373.1)









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           5) Requires every vehicle operated as a PSC to undergo an  
             annual safety inspection conducted by the CHP.  (Public  
             Utilities Code §226)


           6) Requires 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.   
             (Public Utilities Code § 5374.5)


           7) Requires every PSC to furnish the CPUC annually with a list,  
             prepared under oath, of all vehicles used in transportation  
             for compensation during the previous year, including  
             identifying each modified limousine and its terminal  
             location. Requires the CPUC to furnish the list of modified  
             limousines to the CHP. (Public Utilities Code §1042)


           8) 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)


           9) Requires the DMV to regulate the safe operation of buses,  
             including tour buses, and establish regulations regarding  
             equipment and operations.


           10)Requires the CHP to inspect, at least every 13 months, every  
             maintenance facility or terminal of any person who operates a  
             bus and, beginning in January 1, 2017, of all operators of  
             modified limousines.  (Vehicle Code §34500 et seq.)


          This bill:


           1) Requires CPUC to work with DMV to verify on an annual basis,  
             that buses, limousines, and modified limousines used by a PSC  
             or CPC have been reported to CPUC by the carrier.








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           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.


           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  
             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


          San Francisco bus tour accident. 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  







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          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  
          that operate as CPCs or PSCs.  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 required  
          safety inspections by the CHP for CPUC-licensed buses and  
          modified limousines, which can lead to dangerous conditions on  
          California roads. 


          Scope of the problem.  According to the Assembly Committee on  
          Transportation and Housing 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 as CPCs or PSCs are properly  
          accounted for and inspected.


          What's covered?  This bill deals with buses and limousines  
          (including modified limousines) used for transportation for-hire  







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          licensed as a CPC or PSC by the CPUC.  CPCs are chartered  
          vehicles with a driver under a contract for a fixed fee (e.g.  
          party bus or limousine for a wedding).  PSCs transport  
          passengers based on an individual fare over a fixed route (e.g.  
          airport shuttle).  This bill does not relate to school buses or  
          public transit buses, or transportation network companies, which  
          do not operate a terminal for their vehicle fleet.


          Prior/Related Legislation


          AB 1677 (Ting, 2016) requires the CHP to develop protocols for  
          the inspection of tour buses by local agencies.  The bill is  
          currently on the Senate Floor.


          SB 247 (Lara, 2015) requires charter buses to have specified  
          emergency equipment. The bill is currently on the Assembly  
          Floor.


          SB 812 (Hill, 2016) imposes additional, performance-based  
          inspection requirements on tour buses operated by PSCs and CPCs.  
          The bill is currently on the Assembly Floor.




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

          According to the Senate Appropriations Committee:  

           Up to $1.1 million (Transportation Reimbursement Account) to  
            the CPUC for additional staff and information technology  
            needs.


           $208,587 (Motor Vehicle Account) for the CHP to conduct the  
            required inspections for every 2,500 vehicles.


           One-time costs of $950,000, and $42,000 annually to DMV for  







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            programming, form revisions, and increased registrations and  
            transaction processing times.


          SUPPORT:   (Verified8/11/16)


          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:   (Verified8/11/16)


          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.
           

          ASSEMBLY FLOOR:  79-0, 5/31/16
          AYES:  Achadjian, Alejo, Travis Allen, Arambula, Atkins, Baker,  
            Bigelow, Bloom, Bonilla, Bonta, Brown, Burke, Calderon,  
            Campos, Chang, Chau, Chávez, Chiu, Chu, Cooley, Cooper,  
            Dababneh, Dahle, Daly, Dodd, Eggman, Frazier, Beth Gaines,  
            Gallagher, Cristina Garcia, Eduardo Garcia, Gatto, Gipson,  
            Gomez, Gonzalez, Gordon, Gray, Grove, Hadley, Harper, Roger  
            Hernández, Holden, Irwin, Jones, Jones-Sawyer, Kim, Lackey,  
            Levine, Linder, Lopez, Low, Maienschein, Mathis, Mayes,  
            McCarty, Medina, Melendez, Mullin, Nazarian, Obernolte,  







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            O'Donnell, Olsen, Patterson, Quirk, Ridley-Thomas, Rodriguez,  
            Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting,  
            Wagner, Waldron, Weber, Wilk, Williams, Wood, Rendon
          NO VOTE RECORDED:  Brough

          Prepared by:Nidia Bautista / E., U., & C. / (916) 651-4107
          8/15/16 20:26:52


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