BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | AB 1574| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- 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. AB 1574 Page 2 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) AB 1574 Page 3 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. AB 1574 Page 4 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 AB 1574 Page 5 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 AB 1574 Page 6 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 AB 1574 Page 7 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, AB 1574 Page 8 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 **** END ****