BILL ANALYSIS Ó SB 541 Page 1 SENATE THIRD READING SB 541 (Hill) As Amended August 31, 2015 Majority vote SENATE VOTE: 40-0 ------------------------------------------------------------------ |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 Page 2 | | |Bloom, Bonta, | | | | |Calderon, Chang, | | | | |Nazarian, Eggman, | | | | |Gallagher, Eduardo | | | | |Garcia, Holden, | | | | |Jones, Quirk, Rendon, | | | | |Wagner, Weber, Wood | | | | | | | | | | | | ------------------------------------------------------------------ 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 SB 541 Page 3 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 SB 541 Page 4 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. SB 541 Page 5 Analysis Prepared by: Edmond Cheung / U. & C. / (916) 319-2083 FN: 0001825