BILL ANALYSIS                                                                                                                                                                                                    Ó




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          |SENATE RULES COMMITTEE            |                        SB 697|
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                                UNFINISHED BUSINESS 


          Bill No:  SB 697
          Author:   Hertzberg (D)
          Amended:  9/3/15  
          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

           SENATE FLOOR:  36-0, 5/11/15
           AYES:  Allen, Bates, Beall, Berryhill, Block, Cannella, Fuller,  
            Gaines, Galgiani, Hall, Hancock, Hernandez, Hertzberg, Hill,  
            Hueso, Huff, Jackson, Lara, Leno, Leyva, McGuire, Mendoza,  
            Mitchell, Monning, Moorlach, Morrell, Nguyen, Nielsen, Pan,  
            Pavley, Roth, Runner, Stone, Vidak, Wieckowski, Wolk
           NO VOTE RECORDED:  Anderson, De León, Liu

           ASSEMBLY FLOOR:  78-0, 9/9/15 - See last page for vote

           SUBJECT:   Public Utilities Commission Accountability Act of  
                     2015: reports: audits: electrical restructuring:  
                     charter-party carriers of passengers


          SOURCE:    Author

          DIGEST:   This bill repeals the requirement of the California  
          Public Utilities Commission (CPUC) to issue a decal to  
          charter-party carriers of passengers, extends the sunset date by  
          one year 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  








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          Utilities Code related to reporting requirements. 

          Assembly Amendments extend the sunset date by one year on the  
          CPUC's authority to issue financing orders and make numerous  
          changes to the Public Utilities Code to consolidate reporting  
          requirements and provide that reports to the Legislature or the  
          Governor can be submitted electronically by the agency. 

          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  
            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)

          5)Requires numerous reports by the CPUC to provide an annual  
            report to the Legislature and numerous other issues relating  








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            to the California Advanced Services Fund, Renewable Portfolio  
            Standard, water-related reporting, and many others.

          This bill:

          1)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.

          2)Extends the sunset date by one year on the CPUC's authority to  
            issue financing orders from 2015 to 2016.

          3)Allows reports submitted to the Legislature or the Governor 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. 

          Background
          
          Decals. 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, 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 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  








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          the bumper of limousine vehicles, or identifying symbols as  
          filed by each Transportation Network Companies. 

          Consolidated reports. This bill 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 the Public  
          Utilities Code. Consolidating report requirements into one  
          section of the code will provide for better tracking and  
          compliance. Additional amendments allow for electronic  
          transmission of reports in lieu of more costly hard copy  
          deliveries.

          One-year extension on sunset for financing orders. According to  
          the CPUC, the one-year extension is needed to allow the CPUC to  
          assess whether the expiration of the authority will have undue  
          harm on ratepayers, including its ability to issue financing  
          orders or enter into agreements with the Department of Water  
          Resources. 

          FISCAL EFFECT:   Appropriation:    No          Fiscal  
          Com.:YesLocal:   No


          According to the Assembly Appropriations Committee, this bill  
          will have potential minor savings up to $30,000 to the CPUC  
          Transportation Reimbursement 


          SUPPORT:   (Verified9/9/15)


          California Public Utilities Commission
          Greater California Livery Association


          OPPOSITION:   (Verified 9/9/15)


          None received









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          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 611 was being  
          considered last year there was widespread belief amongst the  
          parties that the "decal" required in Public Utilities Code  
          Section 5385.5 was synonymous with the distinctive identifying  
          symbols, specifically the TCP identification, prescribed by  
          Public Utilities Code §5385. The CPUC states that the reporting  
          changes in this bill are to help consolidate and make more  
          transparent the numerous reports the agency is required to  
          provide the Legislature or Governor. The changes providing  
          electronic copies of these reports in lieu of hard copy will  
          save paper and reduce costs with printing and shipping. The  
          extension of the sunset date by one year on the CPUC's authority  
          to issue financing orders will provide the agency additional  
          time to work with the Department of Water Resources to assess  
          whether the expiration of the authority will unduly harm  
          ratepayers.
           

           ASSEMBLY FLOOR:  78-0, 9/9/15
           AYES: Achadjian, Alejo, Travis Allen, Baker, Bigelow, Bloom,  
            Bonilla, Bonta, Brough, Brown, Burke, Calderon, Campos, Chang,  
            Chau, Chávez, Chiu, Chu, Cooley, Cooper, Dahle, Daly, Dodd,  
            Eggman, Frazier, Beth Gaines, Gallagher, Cristina Garcia,  
            Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Gray,  
            Grove, Hadley, Harper, Roger Hernández, Holden, Irwin, Jones,  
            Kim, Lackey, Levine, Linder, Lopez, Low, Maienschein, Mathis,  
            Mayes, McCarty, Medina, Melendez, Mullin, Nazarian, Obernolte,  
            O'Donnell, Olsen, Patterson, Perea, Quirk, Rendon,  
            Ridley-Thomas, Rodriguez, Salas, Santiago, Steinorth, Mark  
            Stone, Thurmond, Ting, Wagner, Waldron, Weber, Wilk, Williams,  
            Wood, Atkins
           NO VOTE RECORDED: Dababneh, Jones-Sawyer


          Prepared by:Nidia Bautista / E., U., & C. / (916) 651-4107
          9/9/15 20:56:13


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