BILL ANALYSIS Ó SB 530 Page 1 Date of Hearing: July 15, 2015 ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION Adam Gray, Chair SB 530 (Pan) - As Amended July 9, 2015 SENATE VOTE: 35-0 SUBJECT: Pedicabs. SUMMARY: Creates a new category of pedicabs, as defined, and establishes a set of operational requirements, including alcohol consumption by passengers, as specified. Specifically, this bill: 1)Expands the definition of pedicab to include a four-wheeled device that is primarily or exclusively pedal-powered, has a seating capacity for eight or more passengers, cannot travel in excess of 15 miles per hour, and is used for transporting passengers for hire, as specified. 2)Specifies certain equipment requirements related to this new category of pedicabs including seatbelts for all passengers, seat backs, breaks, reflectors, headlights, and grab rails. 3)Specifies that all operating pedicabs must meet the abovementioned requirements by SB 530 Page 2 January 1, 2017, in order to remain in operation. 4)Prohibits a pedicab, as defined, from having a seating capacity for more than 15 passengers. 5)Requires a pedicab, as defined, to be authorized by a local ordinance or resolution to operate within the applicable local jurisdiction. 6)Requires a pedicab, as defined, to have proof of financial responsibility, as specified. 7)Requires the pedicab operator to be at least 21 years of age and hold a valid driver's license. 8)Provides that for pedicabs where alcohol is consumed by passengers , the pedicab service is required to: a) Obtain authorization by the appropriate local authority through the approval of a local ordinance or resolution; b) Provide an on-board safety monitor who is at least 21 years of age whenever alcohol is being consumed; c) Have both the operator and safety monitor complete either the Licensee Education on Alcohol and Drugs program (LEAD) implemented by the Department of Alcoholic Beverage Control (ABC) or a training course utilizing the curriculum recommended by the Responsible Beverage Service Advisory Board; and, SB 530 Page 3 d) Permit only passengers that are 21 years of age or older if alcohol is being consumed. e) Alcoholic beverages shall not be provided by the operator or onboard safety monitor or any employee or agent of the operator or onboard safety monitor of the pedicab. Alcoholic beverages may only be supplied by the passengers of the pedicab. f) All alcoholic beverages supplied by passengers of the pedicab shall be in enclosed and enclosed, sealed, and unopened containers that have been labeled prior to their consumption on board the pedicab. g) Alcoholic beverages may be consumed by a passenger of the pedicab only while he or she is physically on board and within the pedicab. 9)Prohibits the safety monitor from supervising passengers while being under the influence of any alcoholic beverage and be subject to certain violations, as specified. 10)Provides that a license or permit issued by the Department of Alcoholic Beverage Control (ABC) is not required to be obtained by a pedicab, as defined, if the pedicab operator or its employees do no sell, serve, or furnish any alcoholic beverage to any passenger, as specified. 11)Makes technical conforming changes. EXISTING LAW: SB 530 Page 4 1)Defines a vehicle as a device by which any person or property may be propelled, moved, or drawn upon a highway, excepting a device moved exclusively by human power or used exclusively upon stationary rails or tracks. 2)Defines pedicabs as either a bicycle that has three or more wheels, that transports, or is capable of transporting passengers on seats attached to the bicycle, that is operated by a person, and is being used for transporting passengers for hire, or a bicycle that pulls a trailer, sidecar, or similar device, that transports passengers on seats attached to a trailer or similar device, that is operated by a person, and is used for transporting passengers, as specified. 3)Specifies that a person riding a bicycle or operating a pedicab upon a highway has all the rights and is subject to all the provisions applicable to the driver of a vehicle, including, but not limited to, provisions relating to driving under the influence of alcoholic beverages or drugs. 4)Any person possessing any can, bottle, or other receptacle containing any alcoholic beverage that has been opened, or a seal broken, or the contents of which have been partially removed, in any city, county, or city and county owned park or other city, county, or city and county owned public place, or any recreation and park district, or any regional park or open-space district shall be guilty of an infraction if the city, county, or city and county has enacted an ordinance that prohibits the possession of those containers in those areas or the consumption of alcoholic beverages in those areas. 5)Establishes ABC and grants it exclusive authority to SB 530 Page 5 administer the provisions of the Alcholic Beverage Control Act (Act) in accordance with laws enacted by the Legislature. This involves licensing individuals and businesses associated with the manufacture, importation and sale of alcoholic beverages in this state and the collection of license fees for this purpose. 6)Defines "Alcoholic beverage" to include alcohol, spirits, liquor, wine, beer, and every liquid or solid containing alcohol, spirits, wine, or beer, and which contains one-half of 1 percent or more of alcohol by volume and which is fit for beverage purposes either alone or when diluted, mixed, or combined with other substances. 7)Provides no ABC license or permit shall be required for the serving and otherwise disposing of alcoholic beverages where all of the following conditions prevail: 1) That there is no sale of an alcoholic beverage; 2) That the premises are not open to the general public during the time alcoholic beverages are served, consumed or otherwise disposed of; and 3) That the premises are not maintained for the purpose of keeping, serving, consuming or otherwise disposing of alcoholic beverages. 8)Under the Act, it is a public nuisance for any person to maintain any club room in which any alcoholic beverage is received or kept, or to which any alcoholic beverage is brought, for consumption on the premises by members of the public or of any club, corporation, or association, unless the person and premises are licensed under this division. It is a public nuisance for any person to keep, maintain, operate or lease any premises for the purpose of providing therein for a consideration a place for the drinking of alcoholic beverages by members of the public or other SB 530 Page 6 persons, unless the person and premises are licensed under this division. As used herein "consideration" includes cover charge, the sale of food, ice, mixers or other liquids used with alcoholic beverage drinks, or the furnishing of glassware or other containers for use in the consumption of alcoholic beverage drinks. The Attorney General or any district attorney may bring an action in the name of the people to abate the nuisance, and the Attorney General shall, upon request of ABC, bring the action. 9)Allows the serving of alcoholic beverages without a license or permit in a "limousine" or as part of a "hot air balloon ride" service, provided there is no extra charge or fee for the alcoholic beverages. FISCAL EFFECT: Unknown. COMMENTS: Originally established in Europe, this type of pedal-powered vehicle, otherwise known as a party bike, beer bike, or pedibus, has rapidly grown in popularity throughout cities in the United States. Cities such as Portland, Denver, and Sacramento all permit some form of this transportation services within their city. These human pedal-powered vehicles can generally seat up to fifteen passengers with the steering and breaking controlled by a driver who does not provide pedaling power. Additionally, these pedal-powered vehicle's typically are used to offer guided riding tours through tourist and entertainment areas, many times accompanied with stops to local bars and restaurants. The author introduced SB 530 to establish a set of safety standards for this new category of pedicab service (party bikes). Currently party bike businesses are licensed by the host city without any state involvement. This has created some SB 530 Page 7 uncertainty about how to properly classify party bikes or how to prescribe any particular set of safety standards. While there have been no reported or known party bike accidents within California, incidents have occurred in other states. For example, in 2013, a party bike in Minneapolis tipped over while traveling downhill towards the end of its tour. Within California, party bike companies currently operate under conditions, which vary in each municipality. SB 530 establishes a basic set of uniform standards by requiring party bikes to be equipped with certain safety equipment, requiring party bike operators to meet particular requirements, and requiring all party bike operators to meet these requirements before January 1, 2017. The author notes that this industry is growing rapidly, and that California should address regulation at the state level before any significant public safety issues arise. Background : Existing law provides authority for ABC to issue numerous types of licenses. Currently, it is unlawful for any corporation, club, or organization to sell, give, serve, dispense, keep, or allow to be consumed on its premises any alcoholic beverage unless licensed or permitted by law. This prohibition includes the serving of free alcohol with the purchase of another good or service. It is also unlawful for any person to keep or consume an alcoholic beverage on any premises open to the public other than as specifically permitted by law. Existing law defines various types of vehicles with differing rights and responsibilities. Bicycles, motorized bicycles, pedicabs, neighborhood electric vehicles, motorcycles, passenger vehicles, and buses are just some of the different types of vehicles allowed to use California streets and highways. This SB 530 Page 8 bill deals with four-wheeled, primarily pedal-powered vehicles that carry up to 15 passengers. These are substantial vehicles, about the size of a car, and can cost up to $100,000. This bill would expand the definition of a pedicab to include a 4-wheeled device that is primarily or exclusively pedal-powered, has a seating capacity for 8 or more passengers, cannot travel in excess of 15 miles per hour, and is being used for transporting passengers for hire, as prescribed. The bill would impose specified requirements on these pedicabs defined by the bill, relating to, among other things, a maximum seating capacity for 15 passengers, local authorization to operate, operator qualifications and training, safety equipment, financial responsibility, and passenger alcohol consumption. A pedicab shall not operate on any highway under the jurisdiction of the local authority unless authorized by resolution or ordinance. Pedicabs will be required to be equipped with seatbelts for all passengers, seat backs, brakes, reflectors, headlights, and grab rails. A pedicab that does not meet these requirements shall meet these requirements by January 1, 2017, in order to continue operation. SB 530 Page 9 ABC's LEAD Program : The LEAD Program is a free, voluntary prevention and education program for retail licensees, their employees and applicants. It began on January 1, 1991 with a grant from the California Office of Traffic Safety. The training classes are offered at a variety of locations throughout the California. The classes include instruction on checking various forms of identification, detecting and preventing illegal activity, reducing liability and much more. Each training class lasts 4 hours. At the conclusion of the class, an exam is given on the material that was covered. Each person that fulfills all of the training requirements receives a certificate, via email, certifying that they successfully completed a LEAD training course. Policy considerations : The author might want to consider amending the bill to make the responsible beverage service training requirement subject to private organizations that offer such training throughout the state. Otherwise, if ABC's LEAD program is utilized, it might be appropriate for the department to assess a fee for service, as current funding for this required training is offset from annual retail license fees paid into the ABC Fund. The Committee may wish to consider if this bill might create a safety hazard if local governments choose to permit alcoholic beverages to be consumed on board. Moreover, pedicabs are open-air, and therefore the alcohol consumption will be visible to the public. SB 530 Page 10 Double referral : On June 29, 2015, this bill passed the Assembly Transportation Committee by a 14-0 vote. Related legislation : AB 1322 (Daly) of 2015. Would allow beauty salons and barber shops, in good standing with the California Board of Barbering and Cosmetology (CBBC), to serve their clients limited quantities of beer or wine at no extra charge during normal business hours without obtaining a license or permit from ABC. (Pending in Senate G.O. Committee) AB 604 (Olsen) of 2015. Defines "electrically motorized skateboard" and authorizes cities and counties to regulate their use. (In Assembly - Concurrence in Senate amendments pending) Prior legislation : SB 346 (Harman) of 2011. Would have authorized the serving of alcoholic beverages without a license or permit as part of a "gondola ride" (boat) service. (Held in Assembly Appropriations Committee at request of the author) AB 2416 (Governmental Organization Committee, Chapter 639, Statutes of 1998). Provided that a license or permit is not required for the serving of alcoholic beverages as part of a hot air balloon ride service, provided there is no extra charge or fee for the alcoholic beverages. SB 530 Page 11 SB 1546 (Beverly, Chapter 1354, Statutes of 1986). Provided that a license or permit is not required for the serving of alcoholic beverages in a limousine provided there is no extra charge or fee for the alcoholic beverages. REGISTERED SUPPORT / OPPOSITION: Support Off the Chain, Sponsor City Cruiser Pedal On Roberta MacGlashan, Sacramento County Supervisor Social Cycle Various letters of support from individuals Opposition SB 530 Page 12 None on file Analysis Prepared by:Eric Johnson / G.O. / (916) 319-2531