BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | SB 697|
|Office of Senate Floor Analyses | |
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THIRD READING
Bill No: SB 697
Author: Hertzberg (D)
Amended: 4/9/15
Vote: 21
SENATE ENERGY, U. & C. COMMITTEE: 11-0, 4/21/15
AYES: Hueso, Fuller, Cannella, Hertzberg, Hill, Lara, Leyva,
McGuire, Morrell, Pavley, Wolk
SENATE APPROPRIATIONS COMMITTEE: 7-0, 5/4/15
AYES: Lara, Bates, Beall, Hill, Leyva, Mendoza, Nielsen
SUBJECT: Charter-party carriers of passengers
SOURCE: California Public Utilities Commission
DIGEST: This bill repeals the requirement of the California
Public Utilities Commission (CPUC) to issue a decal to
charter-party carriers of passengers.
ANALYSIS:
Existing law:
1)Authorizes the CPUC to regulate various transportation
services, including charter-party carriers of passengers,
defined as persons engaged in the transportation of persons by
motor vehicle for compensation on a prearranged basis over any
public highway in the state, with some exceptions, including
taxi cabs which are regulated by local agencies. (Public
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Utilities Code, Chapter 8 §§5351, 5360, 5353)
2)Requires a charter-party carrier to obtain from the CPUC a
permit or certificate to operate which establishes that the
person or corporation is financially and organizationally
capable to conduct the transportation service, including
complying with all applicable laws and regulations. (Public
Utilities Code §§5371 & 5374)
3)Requires a charter-party carrier to display a distinctive
identifying symbol, in the form prescribed by the CPUC,
showing the classification to which the carrier belongs.
(Public Utilities Code §5385)
4)Requires the CPUC to issue specified decals for charter-party
carrier vehicles designed to carry not more than eight
passengers, including the driver, and who have a valid permit
or certificate from the CPUC. The decal shall be a minimum
size of two and half inches by six inches and affixed to the
lower right hand corner of the rear bumper. (Public Utilities
Code §5385.5)
This bill repeals the provision of the law requiring the CPUC to
issue specified decals for charter-party carrier vehicles
designed to carry not more than eight passengers, including the
driver.
Background
SB 611 (Hill, Chapter 860, Statutes of 2014) addresses safety
issues related to modified limousines. Among its provisions, the
bill repealed sections of the Public Utilities Code that
provided for special "livery" license plates issued by the
Department of Motor Vehicles (DMV), which were used in lieu of
requiring decals on these vehicles. (Public Utilities Code
§5385.6 (d) noted that the "special license plate shall be in
lieu of the decal required to be issued and displayed pursuant
to §5385.5.") As a result, the requirement to issue decals is
now effective for limousines serving eight or less passengers,
vehicles that are required to be registered with the CPUC.
However, the CPUC is not producing these decals, nor has it
issued these decals in two decades.
For the time being, the CPUC has issued a "Temporary
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Acknowledgement of Vehicle Added Letter" to be kept in the
permitted vehicle at all times. The CPUC has informed these
vehicle owners/operators that the decals are not currently in
production, but will be issued to the drivers once in
production.
The CPUC already requires charter-party carriers to display a
distinctive identifying symbol prescribed by the CPUC based on
classification. Examples of these symbols include:
Transportation Charter Party (TCP) identification number along
the bumper of limousine vehicles, or identifying symbols as
filed by each Transportation Network Company, such as Uber or
Lyft.
Comments
For the 2015-16 proposed budget, the CPUC has requested a budget
change proposal for $227,000 to hire three staff within the
transportation division who would, among other tasks, work on
issuing decals. It's unclear if the CPUC anticipates any work
related to decals should this bill become law.
Prior/Related Legislation
SB 611 (Hill, Chapter 860, Statutes of 2014) addressed safety
issues related to modified limousines, including requiring the
California Highway Patrol to develop and implement an inspection
program for these vehicles. The bill also repealed provisions in
law that required charter-party carriers to obtain special
"livery" license plates issued by the DMV, which were in lieu of
the requirements to affix a decal as noted above.
FISCAL EFFECT: Appropriation: No Fiscal
Com.:YesLocal: No
According to the Senate Appropriations Committee, potential
future savings up to $75,000 to the Public Utilities Commission
Transportation Reimbursement Account (special) for reduced
workload associated with issuing decals.
SUPPORT: (Verified5/5/15)
California Public Utilities Commission (source)
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Greater California Livery Association
OPPOSITION: (Verified5/5/15)
None received
ARGUMENTS IN SUPPORT: The CPUC suggests this is a simple cleanup
of the code to capture the intent of the changes in SB 611
(Hill, 2014). They argue that when SB 611was being considered
last year there was widespread belief amongst the parties that
the "decal" required in Public Utilities Code §5385.5 was
synonymous with the distinctive identifying symbols,
specifically the TCP identification, prescribed by Public
Utilities Code §5385.
The CPUC also notes it has not issued "decals" in 20 years and
it lacks the resources to process the many thousands of decals
that would be needed. The CPUC would like to avoid directing
resources towards an activity that wasn't intended and is not
needed since charter-party carriers already have a requirement
to have a distinctive identification symbol displayed on their
vehicles.
Prepared by:Nidia Bautista / E., U., & C. / (916) 651-4107
5/6/15 16:16:29
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