BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 709
                                                                  Page  1

          Date of Hearing:   May 6, 2009

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Kevin De Leon, Chair

                     AB 709 (Lieu) - As Amended:  April 22, 2009 

          Policy Committee:                               
          UtilitiesVote:10-2

          Urgency:     No                   State Mandated Local Program:  
          Yes    Reimbursable:              No

           SUMMARY  

          This bill requires the Public Utilities Commission (PUC) to  
          adopt and enforce rules requiring drivers for charter party  
          carriers serving airports to undergo criminal background checks.  
           Specifically, this bill:

          1)Prohibits the governing body of an airport from requiring  
            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)Requires a charter party carrier, seeking approval or renewal  
            of their operating permit or certificate from the PUC, and who  
            provides transportation to and from an airport, to certify  
            that the carrier's 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 an  
            identification credential be issued for drivers of  
            charter-party carriers that serve airports, and specifies  
            those criminal acts for which the background check would  
            disqualify drivers and prospective drivers. 

          4)Provides that charter party carriers employing drivers that  
            have not successfully completed the criminal background check  
            shall be subject to civil penalties of up to $2,000 per  
            incident, and that repeated violations are grounds for  








                                                                  AB 709
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            certification or permit revocation.

          5)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  
            credentials when requested by law enforcement officers. 

           FISCAL EFFECT  

          The PUC would incur annual special fund costs of about $1.2  
          million to fund 17 positions related to undertaking the  
          rulemaking to determine the parameters of the background check  
          program, including an appeals process for drivers denied a  
          credential; receiving, reviewing, and maintaining criminal  
          history information obtained from the Department of Justice; and  
          ensuring compliance through auditing of carrier records and spot  
          checks at airports.  [Transportation Reimbursement Account]

          The PUC indicates there are over 6,000 charter party carriers in  
          the state, and estimates 25,000 to 30,000 drivers, with a fairly  
          high turnover rate.

           COMMENTS  

           1)Background  .  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, such as on  
            tour buses.  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 from the PUC.

           2)Purpose  .  According to the author, this bill is intended to  
            provide uniformity, consistency, and cost savings to  
            charter-party drivers who service multiple airports.  The  
            author indicates that 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, while others are  
            considering a different set of disqualifying crimes for  
            drivers.  The sponsor-the Greater California Livery  








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            Association-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 by requiring them to undergo multiple background  
            checks and carry multiple identification badges.

           Analysis Prepared by  :    Chuck Nicol / APPR. / (916) 319-2081