BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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                                 THIRD READING


          Bill No:  AB 636
          Author:   Jones (D), et al
          Amended:  9/1/09 in Senate
          Vote:     21

           
           SENATE ENERGY, U.&C. COMMITTEE  :  11-0, 7/7/09
          AYES:  Padilla, Benoit, Calderon, Corbett, Cox, Kehoe,  
            Lowenthal, Simitian, Strickland, Wiggins, Wright

           SEN. TRANS. & HOUSING COMMITTEE  :  8-3, 7/14/09
          AYES:  Lowenthal, DeSaulnier, Harman, Kehoe, Oropeza,  
            Pavley, Simitian, Wolk
          NOES:  Huff, Ashburn, Hollingsworth

           SENATE APPROPRIATIONS COMMITTEE  :  10-2, 8/27/09
          AYES:  Kehoe, Cox, Corbett, Denham, Hancock, Leno, Oropeza,  
            Price, Wolk, Yee
          NOES:  Runner, Walters
          NO VOTE RECORDED:  Wyland

           ASSEMBLY FLOOR  :  73-0, 5/14/09 (Consent) - See last page  
            for vote


           SUBJECT  :    Charter-party carriers

           SOURCE  :     California Bus Association


           DIGEST  :    This bill places new restrictions and  
          requirements on the operations of charter-party carriers.

                                                           CONTINUED





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           ANALYSIS  :    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 PUC.

          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 PUC shall hold a hearing  
          within a reasonable time, not to exceed 21 days.

          This bill places the following restrictions and  
          requirements on charter-party carriers of passengers and  
          bus drivers:

          1.Imposes a five-year suspension from driving any kind of  
            passenger bus if a person drives a charter bus without  
            having the appropriate driver's license, endorsement, or  
            certificate to operate such a vehicle.

          2.Requires the CPUC to permanently revoke a permit to  
            operate as a charter-party carrier if the business  
            operates a bus without CPUC certification, operates a bus  
            while its permit is suspended, knowingly employs a driver  
            who is not properly and licensed and certified to operate  
            a bus, commits three or more liability insurance  
            violations within a two year period for which it has been  
            cited, or has one or more buses improperly registered  
            with the Department of Motor Vehicles (DMV).

          3.Requires the California Highway Patrol to impound the bus  
            of a charter-party carrier for 30 days when a bus driver  
            operates the vehicle without the proper licensure and  
            certification from CPUC and DMV.

          4.Requires the CPUC to hold an expedited hearing, upon  
            request, to appeal the decision to permanently revoke a  
            charter-party carrier's permit to operate.  

          The bill is contingent on the passage of AB 951 (Lieu).







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           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 buses.

          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.

          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  







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          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 DMV 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.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  Yes

                          Fiscal Impact (in thousands)

           Major Provisions             2009-10             2010-11          
              2011-12           Fund

           PUC                                         Minor and  
          absorbable costs              Special*

          DMV programming                            Up to $200        
                                Special**

            *CPUC Transportation Reimbursement Account
          **Motor Vehicle Account

           SUPPORT  :   (Verified  9/1/09)

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


           ASSEMBLY FLOOR  : 
          AYES:  Adams, Anderson, Arambula, Beall, Bill Berryhill,  
            Tom Berryhill, Blakeslee, Block, Blumenfield, Brownley,  
            Buchanan, Caballero, Charles Calderon, Carter, Chesbro,  
            Conway, Cook, Coto, Davis, De La Torre, De Leon, DeVore,  
            Duvall, Emmerson, Eng, Evans, Feuer, Fletcher, Fong,  
            Fuller, Furutani, Galgiani, Gilmore, Hagman, Hall,  
            Harkey, Hayashi, Hernandez, Hill, Huber, Huffman,  







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            Jeffries, Jones, Knight, Krekorian, Lieu, Logue, Bonnie  
            Lowenthal, Ma, Mendoza, Miller, Monning, Nava, Nestande,  
            Niello, Nielsen, John A. Perez, V. Manuel Perez,  
            Portantino, Price, Ruskin, Salas, Silva, Skinner,  
            Solorio, Audra Strickland, Swanson, Torlakson, Torres,  
            Torrico, Tran, Villines, Yamada
          NO VOTE RECORDED:  Ammiano, Fuentes, Gaines, Garrick,  
            Saldana, Smyth, Bass


          DLW:cm  9/1/09   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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