BILL ANALYSIS Ó
SB 541
Page 1
SENATE THIRD READING
SB
541 (Hill)
As Amended August 31, 2015
Majority vote
SENATE VOTE: 40-0
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|Committee |Votes|Ayes |Noes |
| | | | |
| | | | |
| | | | |
|----------------+-----+----------------------+--------------------|
|Utilities |14-0 |Rendon, Patterson, | |
| | |Achadjian, Bonilla, | |
| | |Burke, Dahle, Eggman, | |
| | |Cristina Garcia, | |
| | |Hadley, Obernolte, | |
| | |Quirk, Santiago, | |
| | |Ting, Williams | |
| | | | |
|----------------+-----+----------------------+--------------------|
|Public Safety |7-0 |Quirk, Melendez, | |
| | | | |
| | | | |
| | |Jones-Sawyer, Lackey, | |
| | |Lopez, Low, Santiago | |
| | | | |
|----------------+-----+----------------------+--------------------|
|Appropriations |17-0 |Gomez, Bigelow, | |
SB 541
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| | |Bloom, Bonta, | |
| | |Calderon, Chang, | |
| | |Nazarian, Eggman, | |
| | |Gallagher, Eduardo | |
| | |Garcia, Holden, | |
| | |Jones, Quirk, Rendon, | |
| | |Wagner, Weber, Wood | |
| | | | |
| | | | |
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SUMMARY: Codifies the State Auditor report's recommendations on
strengthening the California Public Utilities Commission's
(CPUC) oversight of transportation-related activities of
household goods carriers and charter party carriers (CPC).
Specifically, this bill:
1)Directs the CPUC to coordinate enforcement with peace
officers, as specified.
2)Authorizes the Attorney General, a district attorney, or a
city attorney to prosecute actions or proceedings for the
violation of any law committed in connection with a
transaction involving the transportation of household goods
and personal effects.
3)Requires the CPUC to establish specified goals related to its
existing authority to provide oversight and regulation of
transportation-related activities of household goods carriers
and CPCs, and passenger stage corporations (PSC).
4)Requires the CPUC to assess its capabilities to carry out the
activities specified in the goals, and submit a report to the
Legislature by January 1, 2017, with an analysis of current
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capabilities and deficiencies, and recommendations to overcome
any deficiencies identified.
5)Allows peace officers to impound a bus or limousine of a CPC
or PSC for 30 days if the officer determines that specified
violations occurred while the driver was operating the vehicle
of the charter party carrier:
6)Clarifies that impoundment provisions do not apply to
privately owned, personal vehicles, or to charter party
carriers that are not required to carry individual permits.
FISCAL EFFECT: According to the Assembly Appropriations
Committee, this bill would have an increased one-time cost of
approximately $250,000 for the CPUC to assess the transportation
program and submit an evaluation report to the Legislature.
COMMENTS:
1)Author's Statement: "In a 2014 report, the California State
Auditor concluded that the CPUC Transportation Enforcement
Branch does not provide sufficient oversight of [CPCs] and
[PSCs] to ensure consumer safety ? SB 541 improves the
functions of the Transportation Enforcement Branch at the CPUC
to improve customer service and enforcement against illegally
operating [CPCs], [PSCs], and moving companies."
2)Background: California law regulates different modes of
passenger transportation for compensation, including taxi
services, which are regulated by cities and/or counties, as
well as CPCs and PSCs, which are regulated by the CPUC. The
division within the CPUC responsible to ensure that services
are delivered in a safe and reliable manner is the Safety and
Enforcement Division. The division is responsible for safety
oversight in specific industries, including electric, natural
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gas, and telecommunications infrastructure; railroads, rail
crossings, and light rail transit systems; passenger carriers,
ferries; and household goods carriers.
The division is funded through a fee assessed on various types
of state-regulated vehicles, including passenger carriers.
The CPUC collects these fees from operators and deposits them
in the Transportation Reimbursement Account. The CPUC has set
the fee for passenger carriers that seat no more than 15
persons at one-third of 1% of their annual gross revenue, plus
a $10 quarterly fee or a $25 annual fee. The CPUC is allowed
to maintain an appropriate reserve in the account based on
past and projected operating experiences.
3)State Auditor Report: In June 2014, the California State
Auditor released a report examining the CPUC's Transportation
Enforcement Branch, within the Safety and Enforcement
Division, efforts to regulate passenger carriers, as well as
its use of fees collected from carriers. The report found
that the branch did not provide sufficient oversight of CPCs
and PSCs to ensure consumer safety and made a number of
recommendations to address the problems.
This bill codifies these recommendations by requiring the CPUC
to establish specific goals, assess its capabilities to
achieve such goals, and report to the Legislature with an
analysis of current capabilities and deficiencies and
recommendations to overcome any deficiencies identified by
January 1, 2017.
To improve enforcement of the branch, this bill authorizes
peace officers, as defined, to help in the enforcement of
transportation-related services, as specified. The CPUC would
coordinate efforts with peace officers through educational
outreach and establishing lines of communication.
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Analysis Prepared by: Edmond Cheung / U. & C. / (916) 319-2083
FN: 0001825