BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 709
                                                                  Page  1

          Date of Hearing:   April 27, 2009

                    ASSEMBLY COMMITTEE ON UTILITIES AND COMMERCE
                                Felipe Fuentes, Chair
                     AB 709 (Lieu) - As Amended:  April 22, 2009
           
          SUBJECT  :   Charter-party carriers of passengers: driver  
          background checks.

           SUMMARY  :   Requires the PUC to adopt rules requiring that a  
          complete criminal history background check be conducted and  
          identification credential be issued for drivers of charter-party  
          carriers that serve most of the larger airports. 

           EXISTING LAW   prohibits the governing body of any airport from  
          imposing any vehicle safety, licensing, or insurance  
          requirements on charter-party carriers operating limousines, but  
          authorizes the governing board to require a charter-party  
          carrier operating limousines to obtain an airport permit for  
          operating authority at the airport.

           THIS BILL  : 

          1)Prohibits the governing body of an airport to require criminal  
            history background checks on a driver for a charter-party  
            carrier who provides transportation to and from airports, but  
            permits the governing body of an airport to request a list of  
            all drivers to whom identification credentials have been  
            issued.

          2)Before issuing a permit or certificate, requires the PUC to  
            certify that for any airport that regularly serves an air  
            carrier holding a certificate issued by the U.S. Secretary of  
            Transportation, the applicants' drivers have successfully  
            completed a criminal history background check and have been  
            issued an identification credential. 

          3)Requires the PUC to adopt rules requiring that a complete  
            criminal history background check be conducted and  
            identification credential be issued for drivers of  
            charter-party carriers that serve specified airports. 

          4)Requires the rules to provide that all drivers that are  
            employed by a charter-party carrier shall carry identification  
            credentials at all times on airport property and produce the  








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            credentials when requested by law enforcement officers. 

           FISCAL EFFECT  :   Unknown.

           COMMENTS  :   According to the author, the purpose of this bill is  
          to provide uniformity, consistency, and cost savings to  
          charter-party drivers who service multiple airports.  There is a  
          movement among California's airports to require background  
          checks.  Some airports are considering requiring the U.S.  
          Transportation Security Administration (TSA) checks and badges,  
          others are considering a different set of disqualifying crimes  
          for drivers.  The sponsor is concerned that each airport may  
          have its own distinct background check and badge requirements  
          that would over-burden charter-party carrier drivers who serve  
          multiple airports and require them to undergo multiple  
          background checks and carry multiple identification badges.

          1)   What are charter-party carriers  :  Charter-party carriers  
          furnish limousines-for-hire or passenger charter transportation  
          service in motor vehicles.  Charter-party carriers do not  
          include vehicles on a set schedule or between fixed termini,  
          taxi cabs, car rentals, or a city bus.  Typical charter party  
          carriers provide different sized vehicles to take a scheduled  
          group of people to another location and/or back.  The group  
          would usually reserve the vehicle as a group, and would not  
          reserve a "seat" individually.

          Current law requires charter-party carriers to possess a  
          certificate to operate, provided by the PUC.  The intent is to  
          secure adequate and dependable transportation by carriers  
          operating upon the public highways, and to promote carrier and  
          public safety through its safety enforcement regulations.

          2)   Homeland security is on its way:   In 2003, AB 1645  
          (Ridley-Thomas) would have established a process at the PUC to  
          ensure greater security is exercised when companies hire and  
          employ key employees and drivers to operate vehicles carrying  
          paying passengers to and from airports.  There was concern that,  
          in the wake of the events of September 11, 2001, homeland  
          security would be substantially enhanced by establishing a  
          comprehensive criminal screening and identification process for  
          the people who drive privately-owned vans and other vehicles  
          that take passengers to and from airports. Potential future  
          terrorist attacks could be led by or somehow involve these  
          drivers.  AB 1645 failed passage in Assembly Appropriations  








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          Committee.  

          The TSA has not yet required background checks or badges for  
          individuals entering the public area of California's airports.   
          Should such requirement to be implemented, charter-party  
          carriers would be federally mandated to comply.  The sponsor of  
          this bill, the Greater California Livery Association, is  
          concerned that the TSA will allow each airport to implement its  
          own requirements.

          To ensure rights to privacy, this bill requires the background  
          check results to be confidential and retained by the PUC, unless  
          the applicant fails passage.  The applicant will be provided the  
          ability to respond or clarify with the PUC if he or she has  
          failed passage.

          This bill does not apply to charter-party carrier employees who  
          do not provide transportation to and from an airport, and does  
          not apply to the non-public areas of the airport.

          3)   Losing cabin pressure:   As introduced, AB 709 was opposed by  
          San Francisco International Airport.  The Airport's concern was  
          that this bill would prohibit an airport's ability to require a  
          separate and distinct background check of charter-party carrier  
          drivers.  The sponsors of this bill offered to allow individual  
          airports to impose additional unique requirements; however, the  
          costs of the unique requirements should be born by the airport  
          requiring them.  The Airport did not concur with that solution  
          and continues to oppose this bill.

          4)   Does the penalty fit the crime  :  AB 709 requires the PUC  
          rules on background checks to apply retroactively to drivers  
          employed on or after January 1, 2009, and to all future  
          applicants.  It imposes civil penalties not to exceed $2,000 per  
          incident when a carrier has employed individual as drivers who  
          have not successfully completed the criminal background  
          investigation.  Repeated violations are grounds for revocation  
          of the charter-party carrier's certification or permit.   The  
          author and this committee may wish to evaluate whether the  
          $2,000 is the appropriate penalty, especially in cases where the  
          omission may have been inadvertent or unintentional.
           
           REGISTERED SUPPORT / OPPOSITION  :   

           Support 








                                                                 AB 709
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          Greater California Livery Association (sponsor)

           Opposition 
           
          None on file.  
           
          Analysis Prepared by  :    Gina Adams / U. & C. / (916) 319-2083