BILL ANALYSIS Ó SB 697 Page 1 SENATE THIRD READING SB 697 (Hertzberg) As Amended August 27, 2015 Majority vote SENATE VOTE: 36-0 -------------------------------------------------------------------- |Committee |Votes|Ayes |Noes | | | | | | | | | | | | | | | | |----------------+-----+-----------------------+---------------------| |Utilities |13-0 |Rendon, Patterson, | | | | |Achadjian, Bonilla, | | | | |Burke, Dahle, Eggman, | | | | |Cristina Garcia, | | | | |Hadley, Obernolte, | | | | |Quirk, Santiago, Ting | | | | | | | |----------------+-----+-----------------------+---------------------| |Appropriations |17-0 |Gomez, Bigelow, Bloom, | | | | |Bonta, Calderon, | | | | |Chang, Daly, Eggman, | | | | |Gallagher, Eduardo | | | | |Garcia, Holden, Jones, | | | | |Quirk, Rendon, Wagner, | | | | |Weber, Wood | | | | | | | | | | | | SB 697 Page 2 -------------------------------------------------------------------- SUMMARY: Repeals the California Public Utilities Commission's (CPUC) requirement to issue a decal to charter party carriers (CPC), extends the sunset date on the CPUC's authority to issue financing orders, allows for the electronic filing of legislative reports, and makes additional codifying and 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)Extends the sunset on the CPUC's authority to issue financing orders, as specified, from 2015 to 2016. 3)Allows reports submitted to the Legislature or the Governor, as specified, to be submitted electronically, unless specifically requested to submit a printed copy, as specified. 4)Consolidates and makes technical changes to the Public Utilities Code relating to reporting requirements. FISCAL EFFECT: According to the Assembly Appropriations Committee, this bill would have potential minor savings up to $30,000 to the Public Utilities Commission Transportation Reimbursement Account for reduced workload associated with issuing decals. SB 697 Page 3 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: Current law requires CPCs to display a decal, as well as a distinctive identifying symbol issued by the CPUC. Previously CPCs were allowed to obtain special "livery" license plates in lieu of a decal. When livery plates were eliminated under SB 611 (Hill), Chapter 860, Statues of 2014, stakeholders thought that the distinctive identifying symbol issued by the CPUC also satisfied the requirement to display a decal. The CPUC has not issued, nor has it produced, any decals in over two decades. Due to the conflicting nature of the statutes, 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 SB 697 Page 4 single area of the code will assist tracking and compliance. Furthermore, this bill allows for reports required to be submitted to the Legislature or the Governor, as specified, to be submitted electronically, unless a printed copy is specifically requested. Doing so would help save paper and reduce costs associated with printing and processing. 4)Extends the Sunset on CPUC's Financing Orders Authority: Current law gives the CPUC authority to issue financing orders, as specified. This authority is set to expire on December 31, 2015. In 2014, the Governor vetoed SB 38 (Padilla) because it also would have inadvertently taken away the CPUC's authority to continue enforcing the collection of some residual bond expenses. According to the CPUC, the one year extension is needed for it to continue to assess if the expiration of the authority would have an impact on its ability to issue financing orders or enter into agreements with the Department of Water Resource, which potentially could have an impact on ratepayers. Analysis Prepared by: Edmond Cheung / U. & C. / (916) 319-2083 FN: 0001523