BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     SB 530


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          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 








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          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,









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               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:   








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          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  








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            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  








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            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  








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          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  








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          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.











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           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.  









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           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.









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          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








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          None on file




          Analysis Prepared by:Eric Johnson / G.O. / (916)  
          319-2531