BILL ANALYSIS                                                                                                                                                                                                              1
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                SENATE ENERGY, UTILITIES AND COMMUNICATIONS COMMITTEE
                                 ALEX PADILLA, CHAIR
          

          AB 636 -  Jones                                   Hearing Date:   
          June 30, 2009              A
          As Amended:         June 26, 2009            FISCAL       B
                                                                        
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                                      DESCRIPTION
           
           Current law  permits the California Public Utilities Commission  
          (CPUC) to cancel, revoke, or suspend any operating permit or  
          certificate upon specified violations. 

           Current law  prohibits a charter-party carrier from engaging in  
          transportation services, without obtaining a specified  
          certificate or permit from the CPUC. 

          Current law  provides that whenever the CPUC suspends the  
          certificate or permit of any charter party carrier for failure  
          to maintain any vehicle or failure to enroll all drivers in a  
          specified system, the CPUC shall hold a hearing within a  
          reasonable time, not to exceed 21 days. 
           
          This bill  requires the CPUC to permanently revoke the authority  
          of a charter-party carrier that operates a bus without being  
          issued the proper permit from the CPUC, knowingly employs a  
          non-licensed or inappropriately licensed driver, or operates  
          improperly registered busses.   This bill  provides a charter  
          party carrier who has received a notice of refusal or revocation  
          of its permit the right to a hearing provided that the hearing  
          is requested in writing within 15 days of receipt of such  
          notice.

          If a person drives a bus for a charter-party carrier without  
          having been issued the proper driver's license, endorsement, or  
          certificate,  this bill  permanently prohibits that person from  
          driving a bus and requires the Department of Motor Vehicles to  
          revoke and refuse to renew that persons license.   This bill   
          provides a person who has been given a notice of refusal to  











          receive a driver's license the right to a hearing provided that  
          the hearing is requested in writing within 15 days of receipt of  
          such notice. 

           This bill  requires a California Highway Patrol (CHP) officer who  
          stops or inspects a bus of a charter-party carrier, to impound  
          the bus for 30 days if it is being operating by a non-licensed  
          driver or being operated without an appropriate license from the  
          CPUC. The charter party carrier shall have a right to a hearing.  
           

                                      BACKGROUND  
           
          The Charter-Party Carriers' Act  secures adequate and dependable  
          transportation by carriers operating upon the highways; full and  
          unrestricted flow of traffic by motor carriers over the highways  
          which will adequately meet reasonable public demands by  
          providing for the regulations for all transportation agencies  
          with respect to accident indemnity so that adequate and  
          dependable service by all necessary transportation agencies  
          shall be maintained and the full use of the highways preserved  
          to the public; and to promote carrier and public safety through  
          its safety  enforcement regulations.   

           Charter-party carriers  furnish limousines-for-hire or passenger  
          charter transportation service in motor vehicles. Charter party  
          carriers provide different sized vehicles to take a scheduled  
          group of people to another location and/or back. Charter-party  
          carriers do not include vehicles on a set schedule or between  
          fixed termini, taxi cabs, car rentals, or city busses. 

                                       COMMENTS
          
          1.This bill is in response to a series of incidents by bus  
            charter companies who have been operating in disregard of the  
            law.  In general the bill is a "one strike and you're out"  
            approach to bus safety.  It is sponsored by the California Bus  
            Association.

          2.The author's office has provided an example of an incident  
            where a bus driver from a charter-party carrier company had  
            been in violation of the law by not being properly licensed to  
            operate his vehicle. 











               On October 5th, 2008, a charter bus en route from  
               Sacramento to a gaming facility swerved off the road and  
               overturned into a ditch, killing 11 people, including the  
               bus owner, and injured nearly 40 others.  Most of the  
               passengers were elders from Sacramento's Southeast Asian  
               community.  

               As stated in a Sacramento Bee article on October 9th, 2008  
               (Bus driver in Colusa County crash was not properly  
               licensed), investigations found that "neither the bus nor  
               the driver?had the legal right to be on the road that  
               evening."  Owners of the bus had legally designated it as  
               non-operational with the Department of Motor Vehicles in  
               May 2008, meaning that the vehicle should not have been on  
               the road.  Also, bus driver Quintin Watts did not possess  
               the required "passenger endorsement" from DMV in order to  
               be driving the bus, a passenger transportation vehicle  
               carrying more than 10 people.  
           
          3.Are the penalties too harsh for charter-party carriers?  - The  
            California Bus Association (CBA) believe that due to the  
            number of carriers and drivers without the proper licensing  
            and certifications, current penalties do not deter carriers  
            and drivers from continuing to break the law. The bill does  
            allow for individuals and charter party carriers, who have  
            received a notice of refusal for either their driver's license  
            or their permit, to submit a written request for a hearing  
            within 15 days of receiving a notice. 

           4.Related Legislation  - AB 951 increases the range of fines the  
            CPUC can impose on charter-party carriers who do not comply  
            with the laws and CPUC regulations. 

           5.Double Referral  - This bill has been double referred to the  
            Senate Committee on Transportation and Housing.  Due to time  
            constraints, if amendments are proposed in Committee these  
            amendments must be taken in the second Committee.

                                    ASSEMBLY VOTES
           
          Assembly Floor                     (73-0)
          Assembly Appropriations Committee  (16-0)
          Assembly Transportation Committee  (13-0)
          Assembly Utilities and Commerce Committee                       










          (15-0)

                                       POSITIONS
           
           Sponsor:
           
          California Bus Association

           Support:
           
          American Federation of State, County and Municipal Employees,  
          AFL-CIO
          California Nations Indian Gaming Association
          California Public Utilities Commission
          United Iu-Mien Community, Inc.

           Oppose:
           
          None on file

          



















          Melissa Macias
          AB 636 Analysis
          Hearing Date:  June 30, 2009