BILL ANALYSIS Ó
SB 541
Page 1
SENATE THIRD READING
SB
541 (Hill)
As Amended September 3, 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, Bloom, | |
| | |Bonta, Calderon, | |
| | |Chang, Nazarian, | |
SB 541
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| | |Eggman, Gallagher, | |
| | | | |
| | | | |
| | |Eduardo Garcia, | |
| | |Holden, Jones, Quirk, | |
| | |Rendon, Wagner, Weber, | |
| | |Wood | |
| | | | |
| | | | |
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SUMMARY: This bill 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 hire an independent entity for no more
than $250,000 to, in consultation with carrier trade
associations, assess its capabilities to carry out the
SB 541
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activities specified in the goals, and submit a report to the
Legislature by January 1, 2017, with an analysis of current
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
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Enforcement Division. The Division is responsible for safety
oversight in specific industries, including electric, natural
gas, and telecommunications infrastructure; railroads, rail
crossings, and light rail transit systems; passenger carriers
and 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 1/3 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 efforts of the CPUC's
Transportation Enforcement Branch (within the Safety and
Enforcement Division) to regulate passenger carriers and 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 and to assess, in consultation
with carrier trade associations, 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, the 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:
0002070