Amended in Senate April 9, 2015

Senate Bill No. 697

Introduced by Senator Hertzberg

February 27, 2015

An act to amend Section begin delete 1904 end delete begin insert 5387 end insert of, and to repeal Section begin delete 1906 end delete begin insert 5385.5 end insert of, the Public Utilities Code, relating to public utilities.

LEGISLATIVE COUNSEL’S DIGEST

SB 697, as amended, Hertzberg. begin delete Public utilities: certificates of public convenience and necessity: fees. end delete begin insert Charter-party carriers of passengers. end insert

begin insert

The Passenger Charter-party Carriers’ Act places charter-party carriers of passengers, as defined, under the jurisdiction of the Public Utilities Commission. Under existing law, no charter party carrier of passengers may operate a motor vehicle on a public highway unless there is displayed on the vehicle a distinctive identifying symbol, in the form prescribed by the commission, showing the classification to which the carrier belongs. For motor vehicles designed to carry not more than 8 passengers, the commission is required to issue a suitable decal with an identifying symbol and of a specified size for that purpose.

end insert begin insert

This bill would repeal that provision requiring the issuance of the decal.

end insert begin delete

The Public Utilities Act prohibits any street railroad corporation, gas corporation, electrical corporation, telegraph corporation, telephone corporation, water corporation, or sewer system corporation from beginning the construction of, among other things, a line, plant, or system, or of any extension thereof, without having first obtained from the Public Utilities Commission a certificate that the present or future public convenience and necessity require or will require that construction (certificate of public convenience and necessity). Existing law provides that each application for a certificate of public convenience and necessity be accompanied by a fee of $500, unless the applicant is already operating in the immediate vicinity under the jurisdiction of the commission. Other existing law requires the commission to charge and collect a fee of $75 for each application for a certificate of public convenience and necessity, or for the mortgage, lease, transfer, or assignment thereof, except for those applications for a certificate that are required to be accompanied by a fee of $500.

end delete begin delete

This bill would require the commission to charge and collect a fee of $500 for each application for a certificate of public convenience and necessity, or for the mortgage, lease, transfer, or assignment thereof.

end delete begin delete

Existing law establishes the Public Utilities Commission Utilities Reimbursement Account in the General Fund and generally provides that all fees and charges collected under the Public Utilities Code, except penalties, from each public utility be paid into the fund.

end delete begin delete

Other existing law provides that specified fees, including the fee for filing each application for a certificate of public convenience and necessity, or for the mortgage, lease, transfer, or assignment of a certificate, and fees charged for preparation of certain official documents, are required to be paid at least once each month into the State Treasury to the credit of the General Fund.

end delete begin delete

This bill would repeal the provision that requires certain fees to be paid at least once each month into the State Treasury to the credit of the General Fund.

end delete

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

begin insert

begin insert SECTION 1. end insert   

end insert

begin insert Section 5385.5 of the end insert begin insert Public Utilities Code end insert begin insert is
repealed. end insert

begin delete

5385.5.  

For motor vehicles designed to carry not more than
eight passengers, including the driver, the commission shall issue
a suitable decal for purposes of Section 5385, for each vehicle
registered with the commission and operated by a charter-party
carrier of passengers holding a valid permit or certificate of public
convenience and necessity. The decal with an identifying symbol
shall be a minimum size of two and one-half inches by six inches,
and shall be affixed to the lower right hand corner of the rear
bumper of the vehicle.

end delete

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert Section 5387 of the end insert begin insert Public Utilities Code end insert begin insert is amended
to read: end insert

5387.  

(a) It is unlawful for the owner of a charter-party carrier
of passengers to permit the operation of a vehicle upon a public
highway for compensation without (1) having obtained from the
commission a certificate or permit pursuant to this chapter, (2)
having complied with the vehicle identification requirements of
Section begin delete 5385 or 5385.5, end delete begin insert 5385, end insert and (3) having complied with the
accident liability protection requirements of Section 5391.

(b) A person who drives a bus for a charter-party carrier without
having a current and valid driver’s license of the proper class, a
passenger vehicle endorsement, or the required certificate shall be
suspended from driving a bus of any kind, including, but not
limited to, a bus, schoolbus, school pupil activity bus, or transit
bus, with passengers for a period of five years pursuant to Section
13369 of the Vehicle Code.

(c) (1) A charter-party carrier shall have its authority to operate
as a charter-party carrier permanently revoked by the commission
or be permanently barred from receiving a permit or certificate
from the commission if it commits any of the following acts:

(A) Operates a bus without having been issued a permit or
certificate from the commission.

(B) Operates a bus with a permit that was suspended by the
commission pursuant to Section 5378.5.

(C) Commits three or more liability insurance violations within
a two-year period for which it has been cited.

(D) Operates a bus with a permit that was suspended by the
commission during a period that the charter-party carrier’s liability
insurance lapsed for which it has been cited.

(E) Knowingly employs a busdriver who does not have a current
and valid driver’s license of the proper class, a passenger vehicle
endorsement, or the required certificate to drive a bus.

(F) Has one or more buses improperly registered with the
Department of Motor Vehicles.

(2) The commission shall not issue a new permit or certificate
to operate as a charter-party carrier if any officer, director, or owner
of that charter-party carrier was an officer, director, or owner of
a charter-party carrier that had its authority to operate as a
charter-party carrier permanently revoked by the commission or
that was permanently barred from receiving a permit or certificate
from the commission pursuant to this subdivision.

(d) An officer of the Department of the California Highway
Patrol may impound a bus of a charter-party carrier for 30 days
pursuant to Section 14602.9 of the Vehicle Code if the officer
determines that any of the following violations occurred while the
busdriver was operating the bus of a charter-party carrier:

(1) The driver was operating the bus of a charter-party carrier
when the charter-party carrier did not have a permit or certificate
issued by the commission.

(2) The driver was operating the bus of a charter-party carrier
when the charter-party carrier was operating the bus with a
suspended permit or certificate from the commission.

(3) The driver was operating the bus of a charter-party carrier
without having a current and valid driver’s license of the proper
class, a passenger vehicle endorsement, or the required certificate.

begin delete

SECTION 1.  

Section 1904 of the Public Utilities Code is
amended to read:

1904.  

The commission shall also charge and collect the
following fees:

(a) Except as otherwise provided in Section 1036 for filing each
application for a certificate of public convenience and necessity,
or for the mortgage, lease, transfer, or assignment thereof, five
hundred dollars ($500). The commission may adjust this fee based
on the Consumer Price Index. The fee charged and collected
pursuant to this subdivision shall not exceed the reasonable costs
to process the application.

(b) For a certificate authorizing an issue of bonds, notes, or
other evidences of indebtedness, two dollars ($2) for each one
thousand dollars ($1,000) of the face value of the authorized issue
or fraction thereof up to one million dollars ($1,000,000), one
dollar ($1) for each one thousand dollars ($1,000) over one million
dollars ($1,000,000) and up to ten million dollars ($10,000,000),
and fifty cents ($0.50) for each one thousand dollars ($1,000) over
ten million dollars ($10,000,000), with a minimum fee in any case
of fifty dollars ($50). No fee need be paid on such portion of any
such issue as may be used to guarantee, take over, refund,
discharge, or retire any stock, bond, note or other evidence of
indebtedness on which a fee has theretofore been paid to the
commission. If the commission modified the amount of the issue
requested in any case and the applicant thereupon elects not to
avail itself of the commission’s authorization, no fee shall be paid,
and if such fee is paid prior to the issuance of such certificate by
the commission, such fee shall be returned.

SEC. 2.  

Section 1906 of the Public Utilities Code is repealed.

end delete