BILL ANALYSIS Ó
SB 697
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Date of Hearing: July 6, 2015
ASSEMBLY COMMITTEE ON UTILITIES AND COMMERCE
Anthony Rendon, Chair
SB
697 (Hertzberg) - As Amended June 24, 2015
SENATE VOTE: Vote not relevant
SUBJECT: Public Utilities Commission: reports: civil
penalties: charter-party carriers of passengers.
SUMMARY: This bill repeals the California Public Utilities
Commission's (CPUC) requirement to issue a decal to
charter-party carriers (CPC) and makes technical changes to the
Public Utilities Code relating to reporting requirements.
Specifically, this bill:
1)Repeals the CPUC's requirement to issue a suitable decal for
each vehicle registered with the CPUC and operated by a CPC,
holding a valid permit or certificate of public convenience
and necessity, for motor vehicles designed to carry no more
than eight passengers, including the driver.
2)Consolidates and makes technical changes to the Public
Utilities Code relating to reporting requirements.
EXISTING LAW:
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1)Defines "charter-party carrier of passenger" as every person
engaged in the transportation of persons by motor vehicle for
compensation, whether in common or contract carriage, over any
public highway in the state. (Public Utilities Code Section
5360)
2)Prohibits a CPC, as specified, from engaging in transportation
services without obtaining a certificate or permit from the
CPUC. (Public Utilities Code Section 5371)
3)Requires the CPUC to establish that the person or corporation
is financially and organizationally capable to conduct
transportation services, including complying with all
applicable laws and regulations, before a permit or
certificate is issued or renewed. (Public Utilities Code
Section 5374)
4)Authorizes the CPUC to investigate complaints against carriers
and cancel, revoke, or suspend permits and certificates for
specific violations. (Public Utilities Code Section 5387)
5)Requires a CPC to display a distinctive identifying symbol, on
the vehicle, prescribed by the CPUC showing the classification
to which the carrier belongs. (Public Utilities Code Section
5385)
6)Requires the CPUC to issue a suitable decal for each vehicle,
as specified, registered with the CPUC and operated by a CPUC
holding a valid permit or certificate. The decal 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. (Public Utilities Code Section 5385.5)
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FISCAL EFFECT: According to the Senate Appropriations Committee
on the prior version of this bill, this bill would have
potential future savings of up to $75,000 to the Public
Utilities Commission Transportation Reimbursement Account for
reduced workload associated with issuing decals.
COMMENTS:
1)Author's Statement: "[This bill] eliminates antiquated CPUC
decal requirements; SB 697 makes California law clearer and
easier to abide by for limousine and other passenger carriers
and for law enforcement to uphold. [In addition, this bill]
consolidates and clarifies the CPUC's statutory reporting
requirements; SB 697 makes California law clearer and easier
to understand and track all CPUC reports."
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 Passenger Stage Corporations, which are
regulated by the CPUC. CPCs are services that charter a
vehicle, on a prearranged basis, for the exclusive use of an
individual or group. Charges are based on the mileage or time
of use, or a combination of both. The CPUC does not regulate
the level of charges for CPCs. Types of CPCs include limos,
tour buses, sightseeing services, and charter and party buses.
The CPUC requires CPCs to meet a number of requirements until
an operating permit or certificate is issued. These
requirements include providing sufficient proof of financial
responsibility, maintain a preventative maintenance program
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for all vehicles, possessing a safety education and training
program, and regularly checking the driving records of all
persons operating vehicles used in transportation for
compensation. Taxis are excluded from the definition of CPCs
and are regulated by cities or counties.
3)CPC Permits: The CPUC authorizes six types of Transportation
Charter Party (TCP) certificates and permits for CPCs:
Three types of transferable certificates: Class A
certificates allows charter service between any point in
the state, such as roundtrip sightseeing service; Class B
certificates allows charter service between any point
within 125 miles of the carrier's home terminal; and Class
C certificates transportation services that apply to
commercial balloon operations, and commercial river rafting
or skiing.
Three types of nontransferable permits: P permits allow
charter services using only vehicles that seat under 15
passengers, S permits allow charter services to provide
round-trip sightseeing services, and Z permits which
authorizes specialized services not offered to the general
public; namely, transportation incidental to another
business, transportation under contact with specific
entities, and transportation of agricultural works to and
from farms.
1)Senate Bill 611: In 2014, in response to fatal limousine
fires, the Legislature passed SB 611 (Hill, Chapter 860,
Statues of 2014) requiring all modified limousines to be
equipped with fire extinguishers and requiring the California
Highway Patrol to develop and implement an inspection program
for modified limousines. The bill also repealed a provision
that required CPCs to obtain special "livery" license plates
issued by the Department of Motor Vehicles.
2)Decal vs. Identifying Symbol: Current law requires the CPUC
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to issue a suitable decal for CPCs. Before the passage of SB
611, CPCs were allowed to obtain special license plates in
lieu of being issued and displaying the decal. With the
passage of SB 611, the requirement was reverted back to
issuing decals. Hence, current law now requires the CPCs to
display a decal, as well as a distinctive identifying symbol
issued by the CPUC. When livery plates were eliminated under
SB 611, stakeholders thought that the distinctive identifying
symbol issued by the CPUC also satisfied the requirement to
display a decal. For CPCs, this distinctive identifying
symbol includes the TCP identification number displayed along
the bumper of the motor vehicle. Oversight of CPCs is based
upon the vehicles' TCP numbers. The CPUC has not issued, nor
has it produced, any decals in over two decades. In the
meantime, the CPUC has issued "Temporary Acknowledgment of
Vehicle Added letters" which are to be kept in the permitted
vehicle at all times, depending on if or when a decal is
produced and issued.
Due to the conflicting nature of the statues, this bill would
repeal the CPUC requirement to issue a suitable decal for CPC
vehicles, hence, leaving only the requirement that CPCs must
display a CPUC-issued distinctive identifying symbol.
3)Consolidating Reporting Requirements in the Public Utilities
Code: This bill also makes technical changes to the Public
Utilities Code by consolidating and clarifying statutory
reporting requirements under one section of the Public
Utilities Code. The CPUC is required by statute to prepare
and publish numerous reports on a wide range of subjects
within its jurisdiction. The reporting requirements are
typically codified in separate sections within the Public
Utilities Code. Consolidating the reporting requirements in a
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single area of the code will assist tracking and compliance.
A provision in this bill changes Public Utilities Code Section
321.6 which is also currently being amended by Senate Bill 48
(Hill). This provision relates to the CPUC's requirement to
submit an annual plan to the Governor and Legislature with an
annual work plan on schedule ratemaking proceedings and other
decisions considered by the CPUC, a complete accounting of the
CPUC's transactions and proceedings for the preceding year,
and a report on the number of cases where resolutions exceeded
the time period prescribed in scoping memos and the days that
commissioners presided in hearings. This bill will require
double jointing language with SB 48 to resolve the conflict.
The current version of SB 697 represents a partial
consolidation of the CPUC's reports.
The author may wish to also include the following additional
Public Utilities Code reporting requirements into the bill:
1. Change the new Public Utilities Code Section 916 to
Public Utilities Code Section 916.2. Additionally, change
the code section to add a new subdivision (d) to read as
follows: "(d) The commission may combine the information
required by this section with the report prepared pursuant
to Section 916."
2. Change the new Public Utilities Code Section 911 to
Public Utilities Code Section 916. Additionally, change the
code section's first sentence to read as follows: "On or
before November 30 of each year, the commission shall
report to the Legislature on the its rail safety activities
of the division of the commission responsible for consumer
protection and safety, and shall fully document in the
report all expenditures of those funds in the audit report
provided in subdivision (f) of Section 421 ."
3. Change all of the code sections that were changed to
refer to the new Section 916 (previously Section 7711) to
now refer to 916.2.
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4. Strike the amended subdivision (d) of Public Utilities
Code Section 7661 and move it to a new Public Utilities
Code Section 916.1. Change the "subdivision (b)" reference
to "subdivision (b) of Section 7661."
5. Change the new Public Utilities Code Section 911.1 to
Public Utilities Code Section 911. Additionally, change
subdivision (b) to read as follows: "(b) The commission
shall include in its work plan workplan required pursuant
to Section 910, a summary of the staff safety
investigations concluded during the prior calendar year and
the staff safety investigations that remain open for any
gas corporation or electrical corporation, with a link to
the Internet Web site with the report that contains the
information required pursuant to subdivision (a)."
6. Change the new Public Utilities Code Section 910.1 to
Public Utilities Code Section 910.2.
7. Change existing Public Utilities Code Section 765.6 to
Public Utilities Code Section 916.3. Additionally, amend
the language of the code section to read as follows: " (a)
The commission shall annually report to the Legislature on
or before November 30 of each year on the its compliance
with the requirements of Section 765.5 , as added by Chapter
763 of the Statutes of 1991, on or before January 1, 1993,
and annually thereafter. Commencing in 1996, the report
shall be submitted on or before November 30 of each year .
The annual report shall include a determination by the
commission of the impact on competition, if any, of the
regulatory fees assessed railroad corporations and motor
carriers for the support of the commission's activities.
(b) The commission may combine the information required by
this section with the report prepared pursuant to Section
916. "
8. Change the new Public Utilities Code Section 912 to
Public Utilities Code Section 912.1.
9. Change existing Public Utilities Code Section 432.5 to
Public Utilities Code Section 910.3.
10. Strike subdivision (e) of Public Utilities Code Section
8283. Put the subdivision (e) language into a new Public
Utilities Code Section 910.4.
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11. Change existing Public Utilities Code Section 326.5 to
Public Utilities Code Section 910.5.
12. Change existing Public Utilities Code Section 326 to
Public Utilities Code Section 910.6.
13. Strike subdivision (c) of Public Utilities Code Section
311.4.
14. Add a new Public Utilities Code Section 910.7 that reads
as follows: "It is the intent of the Legislature that,
commencing one year from the date that the procedures
described in subdivision (a) of Section 311.4 are
implemented, the commission annually review the procedures
and the technology involved to ensure the continued
effectiveness of the program, and report any findings to
the Legislature."
15. Change new Public Utilities Code Section 914 to Public
Utilities Code Section 914.6.
16. Strike subdivision (b) of existing Public Utilities Code
Section 7912 and move it to a new Public Utilities Code
Section 914. Change "public utilities pursuant to
subdivision (a)" to instead read "telephone corporations
pursuant to Section 7912."
17. Change existing Public Utilities Code Section 873 (a)(2)
to a new Public Utilities Code Section 914.1.
18. Change the last sentence of existing Public Utilities
Code Section 2891 (d)(10) to a new Public Utilities Code
Section 914.2. Instead of referencing "its annual
low-income ratepayer assistance report" instead reference
the new Public Utilities Code Section 914.1 report.
19. Change existing Public Utilities Code Section 5960 (c)
to a new Public Utilities Code Section 914.3. Modify 5960
(d) to only reference "submitted to" and modify new 914.3
to include the 5960 (d) language, but only reference
"reported by".
20. Change existing Public Utilities Code Section 5920 (b)
to a new Public Utilities Code Section 914.4.
21. Change existing Public Utilities Code Section 2881 (k),
(l), and (o) to a new Public Utilities Code Section 914.5.
22. Change existing Public Utilities Code Section 281 (j) to
a new Public Utilities Code Section 914.7.
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23. Change existing Public Utilities Code Section 281 (i) to
a new Public Utilities Code Section 912.2.
24. Strike the amended subdivision (d) of Public Utilities
Code Section 765 and move it to a new Public Utilities Code
Section 916.4. Change the Section 321.6 reference to
"Section 910."
25. Take the uncodified budget RPS quarterly report language
and put it in a new Public Utilities Code Section 913.5.
26. Change existing Public Utilities Code Section 399.19 to
Public Utilities Code Section 913.6. Amend the existing
reference in subdivision (d) to "this article" to clarify
that the article in question is Article 16 of Chapter 2.3
of Part 1 of Division 1 of the Public Utilities Code.
27. Change existing Public Utilities Code Section 384.2 to a
new Public Utilities Code Section 913.7.
28. Change existing Public Utilities Code Section 381.2 (b)
to a new Public Utilities Code Section 913.8.
29. Strike the amended Public Utilities Code Section 747.6
and move it to a new Public Utilities Code Section 913.9.
30. Change existing Public Utilities Code Section 321.7 to a
new Public Utilities Code Section 913.10.
31. Change existing Public Utilities Code Section 8367 to a
new Public Utilities Code Section 913.11.
32. Change existing Public Utilities Code Section 740.3 (b)
to new Public Utilities Code Section 913.12.
33. Change existing Public Utilities Code Section 2851
(c)(3) to new Public Utilities Code Section 913.13.
34. Change existing Public Utilities Code Section 785 (b) to
a new Public Utilities Code Section 913.14.
35. Strike the amended subdivision (d) of Public Utilities
Code Section 960 and move it to a new Public Utilities Code
Section 913.15. Change the Section 321.6 reference to
"Section 910."
36. Strike the last two sentences of Public Utilities Code
Section 348 and put them in a new Public Utilities Code
Section 919.
37. Strike the last two sentences of Public Utilities Code
Section 364 (b) and put them in a new Public Utilities Code
Section 919.1.
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38. Strike Public Utilities Code Section 379.7 (f) and put
in a new Public Utilities Code Section 919.2. Sunset the
clause to conform with the dates in Public Utilities Code
Section 379.7 (g).
1)Arguments in Support: According to the CPUC, the sponsor of
the bill, "when last year's SB 611 (Hill) eliminated the
requirement that limousine operators obtain specialized
license plates as a condition for legal operation, it
inadvertently reactivated Public Utilities Code Section
5385.5, which requires limousine decals that the CPUC has not
issued since 1995. SB 697 would clarify that decals need no
longer be issued, thus affirming the intent of SB 611 and the
consensus opinion of regulators that a TCP ID sticker alone
suffices as necessary identification for legal operation of a
limousine. SB 697 would further help encourage accountability
at the CPUC by consolidating key [CPUC] reports into a single
section of code, thus allowing the Legislature to better
ensure that all reports are delivered on schedule."
2)Prior Legislation:
SB 611 (Hill) 2014: Requires all modified limousines, as
defined, to be equipped with two fire extinguishers and
requires the California Highway Patrol to develop and
implement an inspection program for modified limousines, as
specified. Chaptered by Secretary of State - Chapter 860,
Statutes of 2014.
AB 2227 (Bradford) 2012: Recasts and revises reporting
requirements applicable to publicly owned utilities and
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revises certain reporting requirements. Chaptered by
Secretary of State - Chapter 606, Statutes of 2012.
REGISTERED SUPPORT / OPPOSITION:
Support
California Public Utilities Commission (Sponsor)
Greater California Livery Association
Opposition
None on file.
Analysis Prepared by:Edmond Cheung / U. & C. / (916)
319-2083
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