BILL ANALYSIS                                                                                                                                                                                                    Ó





          SENATE COMMITTEE ON APPROPRIATIONS
                             Senator Ricardo Lara, Chair
                            2015 - 2016  Regular  Session

          SB 247 (Lara) - Charter bus transportation:  safety improvements
          
           ----------------------------------------------------------------- 
          |                                                                 |
          |                                                                 |
          |                                                                 |
           ----------------------------------------------------------------- 
          |--------------------------------+--------------------------------|
          |                                |                                |
          |Version: January 4, 2016        |Policy Vote: T. & H. 8 - 0,     |
          |                                |          E.,U.,& C. 8 - 0      |
          |                                |                                |
          |--------------------------------+--------------------------------|
          |                                |                                |
          |Urgency: No                     |Mandate: Yes                    |
          |                                |                                |
          |--------------------------------+--------------------------------|
          |                                |                                |
          |Hearing Date: January 19, 2016  |Consultant: Mark McKenzie       |
          |                                |                                |
           ----------------------------------------------------------------- 


          This bill meets the criteria for referral to the Suspense File.







          Bill  
          Summary:  SB 247 would place new safety requirements on charter  
          buses.  Specifically, this bill would require all charter buses  
          to have specified safety and emergency equipment, require all  
          charter buses manufactured after July 1, 2017 to have a  
          secondary door as an emergency exit, and require drivers to  
          instruct passengers on the vehicle's safety equipment and  
          emergency exits prior to any trip.










          SB 247 (Lara)                                          Page 1 of  
          ?
          
          Fiscal  
          Impact:  
           Potential California Public Utilities Commission (CPUC) costs  
            in the range of $150,000 to $300,000 for staff support and an  
            administrative law judge to conduct a formal rulemaking  
            proceeding for the new charter bus safety requirements  
            (Transportation Reimbursement Account).  See Staff Comments.

           California Highway Patrol (CHP) costs of approximately $20,000  
            to develop standards and criteria for the proposed safety  
            equipment requirements. (Motor Vehicle Account)


          Background:  Existing law, the Passenger Charter-party Carriers' Act,  
          defines a "charter-party carrier of passengers" as a person or  
          entity engaged in the transportation of persons by motor vehicle  
          for compensation on a prearranged basis over any public highway  
          in the state.  The CPUC is generally responsible for the  
          regulation of charter-party carriers of passengers, and existing  
          law prohibits these entities from engaging in transportation  
          services without obtaining a specified permit from the CPUC.
          Existing law also defines "charter bus transportation" as  
          transportation using a vehicle designed, used, or maintained for  
          carrying more than 10 persons, including the driver, who have  
          acquired the exclusive use of the vehicle to travel together,  
          pursuant to a common purpose, and under a single contract at a  
          fixed charge.


          Existing law requires the CHP to regulate the safe operation of  
          motor vehicles engaged in transportation for hire or  
          compensation, including charter buses, and to inspect those  
          vehicles to ensure that they have the required safety equipment.




          Proposed Law:  
            SB 247 would place new safety requirements on charter-party  
          carriers of passengers engaged in charter bus transportation.   
          Specifically, these carriers must: 
           Ensure that charter bus drivers instruct all passengers on the  
            safety equipment and emergency exits on the vehicle prior to  
            any trip, including providing passengers with written  
            instructions that demonstrate the location and operation of  







          SB 247 (Lara)                                          Page 2 of  
          ?
          
            all exits and the importance of wearing a seatbelt.
           Ensure that its charter buses are equipped with all of the  
            following safety measures:
               o      Burn resistant materials for passenger compartments.
               o      Independently powered emergency lighting fixtures  
                 designed to turn on in the event of an impact or  
                 collision.
               o      Interior and exterior luminescent or retroreflective  
                 emergency signage.
               o      An event data recorder capable of recording  
                 vehicle-related data in the event of sudden deceleration  
                 or hard braking.
               o      Windows that can be easily opened and remain open  
                 during an emergency.

          The bill would also require CHP to adopt standards for the  
          implementation of the charter bus safety requirements by July 1,  
          2017, and require charter buses manufactured after that date to  
          be equipped with a secondary door for use as an emergency exit.


          Related  
          Legislation:  SB 109 (Corbett), Chap 752/2013, requires all  
          modified limousines to have at least two rear side doors and two  
          rear push-out windows that may be used as emergency exits by  
          passengers.


          Staff  
          Comments:  This bill is intended to place new safety  
          requirements on charter buses that are consistent with  
          recommendations made by the National Transportation Safety Board  
          (NTSB) following the investigation of a tragic head-on collision  
          between a FedEx tractor-trailer and a charter bus in 2014 that  
          resulted in the death of eight passengers.
          The CPUC indicates that the bill may require a formal proceeding  
          to implement the new rules pertaining to charter bus safety  
          measures, which would result in one-time costs as high as  
          $328,341 for staff support and an administrative law judge to  
          run the proceeding.  The uncertainty is due to the bill  
          requiring CHP to adopt the standards for implementing bus safety  
          requirements, but the provisions are in the Public Utilities  
          Code.  Staff notes that it is unclear that a full PY of CPUC  
          staff and administrative law judge time would be necessary to  
          conduct a rulemaking proceeding of this nature.  This Committee  







          SB 247 (Lara)                                          Page 3 of  
          ?
          
          has typically noted CPUC costs in the range of $150,000 for  
          conducting proceedings of similar scope and complexity, such as  
          those related to limousine safety improvements.


          Staff notes that the costs to make the specified safety  
          improvements to charter buses, the scope of which is currently  
          unknown, would be the responsibility of charter bus companies  
          and are not expected to result in a direct state fiscal impact. 




          Recommended  
          Amendments:  Staff recommends a technical drafting amendment to  
          remove the provisions of the bill from the Public Utilities  
          Code, and instead include the language within the Vehicle Code  
          (similar to the safety equipment requirements for modified  
          limousines, as enacted by SB 109 of 2013).  This would have the  
          practical effect of reducing the bill's costs by eliminating the  
          need for a formal CPUC proceeding to implement charter bus  
          safety requirements.


                                      -- END --