BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | SB 697| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- 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 SB 697 Page 2 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 SB 697 Page 3 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 SB 697 Page 4 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 SB 697 Page 5 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 **** END **** SB 697 Page 6