BILL ANALYSIS
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|SENATE RULES COMMITTEE | AB 2151|
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THIRD READING
Bill No: AB 2151
Author: Torres (D)
Amended: 8/20/10 in Senate
Vote: 21
SENATE BANKING, FINANCE, AND INS. COMMITTEE : 9-1, 6/30/10
AYES: Calderon, Correa, Florez, Kehoe, Liu, Lowenthal,
Padilla, Price, Runner
NOES: Cogdill
NO VOTE RECORDED: Cox
SENATE APPROPRIATIONS COMMITTEE : 10-1, 8/12/10
AYES: Kehoe, Ashburn, Alquist, Corbett, Emmerson, Leno,
Price, Wolk, Wyland, Yee
NOES: Walters
ASSEMBLY FLOOR : 72-0, 5/20/10 (Consent) - See last page
for vote
SUBJECT : Insurance: public safety employees: accidents
SOURCE : California Professional Firefighters
DIGEST : This bill grants protections to peace officers,
members of the California Highway Patrol, and firefighters,
who use their private vehicles in the performance of their
duty, during their hours of employment, as specified.
Senate Floor Amendments of 8/20/10 limit the application of
the bill to private passenger motor vehicles with at least
CONTINUED
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four wheels, and clarify the circumstances under which the
employee's private automobile insurer is and is not liable
for covering loss or injury that occurs while the employee
is operating their privately owned vehicle at the request
or direction of their employer, in the performance of their
duty.
ANALYSIS :
Existing law
1. Provides that no peace officer, member of the California
Highway Patrol (CHP), or firefighter is required to
report, to his or her private automobile insurance
carrier, any accident in which he or she is involved,
while operating an authorized emergency vehicle or any
employer-leased or employer-rented vehicle, in the
performance of his or her duty, during the hours of his
or her employment.
2. Provides that no insurer may increase the premium on a
private automobile insurance policy, or deny renewal of
the private automobile insurance policy, of a peace
officer, member of the CHP, or firefighter, due to an
accident in which that individual was involved, while
operating an authorized emergency vehicle in the
performance of his or her duty, during the hours of his
or her employment
3. Provides that, if an employee or former employee of a
public entity asks that public entity to defend him or
her against any claim or action for an injury arising
out of an act or omission occurring within the scope of
his or her employment, as specified, and if the employee
or former employee cooperates in good faith in the
defense of that claim or action, the public entity must
pay any judgment or any compromise or settlement of the
claim or action to which the public entity agrees
4. Requires the driver of a motor vehicle that is involved
in an accident, which results in property damage in
excess of $750, or in bodily injury or death, to report
the accident to the Department of Motor Vehicles (DMV),
as specified, but specifies that a report is not
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required, if the motor vehicle involved in the accident
is owned or leased by, or under the direction of, the
United States, California, another state, or a local
agency.
5. Requires every driver or employer that is involved in an
accident and is required to report that accident
pursuant to Vehicle Code Section 16000 to provide
evidence of financial responsibility to DMV, and states
that evidence may be established by filing a report with
DMV, indicating that the motor vehicle involved in the
accident was owned, rented, or leased by or under the
direction of the United States, California, or any
political subdivision of California or a California
municipality.
This bill:
1. Extends the exemption from having to report a vehicular
accident to one's private insurance carrier to any peace
officer, member of the CHP, or firefighter, who is
involved in an accident when operating his or her
private passenger motor vehicle at the request or
direction of their employer, while in the performance of
their duty.
2. Prohibits any private insurance carrier from increasing
the premium on a private automobile insurance policy, or
denying renewal of the private automobile insurance
policy, of a peace officer, member of the CHP, or
firefighter, due to an accident in which that individual
was involved, while operating his or her private
passenger motor vehicle at the direction of their
employer, while in the performance of their duty.
3. Provides, notwithstanding any provision of law or
provision in the employees private automobile insurance
policy, the employee has no liability for any loss or
injury that occurs during anytime time period when the
his or her private passenger motor vehicle is operated
at the request or direction of the employer, and that
the employer shall be considered the owner of the
vehicle and any losses shall be borne by the employer.
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4. Provides the employer shall assume liability for a claim
in which a dispute exists as to whether or not the
employer directed or requested the employee to use his
or her private passenger motor vehicle when the loss
occurred. Requires the employees insurer reimburse the
employer if it is subsequently determined the employer
did not direct or request the employee to use his or her
private passenger motor vehicle when the loss occurred.
5. Provides a good faith delay by an employee in reporting
an accident to his or her insurer under the
circumstances of this bill shall not be used by the
insurer as a basis to claim delayed reporting,
noncooperation, and prejudice as a means of avoiding the
defense or indemnity obligations that would otherwise
exist.
6. Authorizes a peace officer, member of the CHP, or
firefighter, who is involved in a vehicular accident
while operating his or her private passenger motor
vehicle at the request of, or under the direction of the
United States, California, or any political subdivision
of California or a California municipality, to provide
evidence of financial responsibility to the DMV
following that accident, by filing a report indicating
that they were operating that privately owned motor
vehicle in the performance of their duty and at the
request of, or under the direction of the United States,
California, or any political subdivision of California
or a California municipality.
7. Defines "private passenger motor vehicle" or "private
motor vehicle" as a motor vehicle that is insured under
a personal automobile liability insurance policy
insuring a single individual or individuals residing in
the same household as the named insured, but does not
include a vehicle with less than four wheels.
Background
Existing California law protects peace officers, members of
the CHP, and firefighters who are involved in vehicular
accidents, while on the job. These public safety personnel
are not required to report accidents in which they are
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involved while on the job to their private automobile
insurance carriers, nor are their private automobile
insurance carriers allowed to increase their rates, or
refuse to renew their policies, as a result of an
on-the-job accident. However, existing law limits this
protection to situations in which the peace officer, member
of the CHP, or firefighter is operating an authorized
emergency vehicle or an employer-leased or employer-rented
vehicle at the direction of his or her employer. The
operation of a private vehicle at the direction of his or
her employer is not protected, something this bill seeks to
change.
Several sheriffs', firefighters', and peace officers'
associations sent identical letters of support, asserting
that it is inappropriate for an employee to put his or her
personal finances at risk, when engaging in an on-duty,
employer-directed activity.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
According to the Senate Appropriations Committee analysis:
Fiscal Impact (in thousands)
Major Provisions 2010-11 2011-12
2012-13 Fund
Increased state potentially
major costs to the General/
liability state and
local governments Special/
in any given year Federal/
Local
SUPPORT : (Verified 8/23/10)
California Professional Firefighters (source)
Association for Los Angeles Deputy Sheriffs
California Association of Highway Patrolmen
Los Angeles Police Protective League
Orange County Professional Firefighters Association
Peace Officers Research Association of California
Riverside Sheriffs' Association
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OPPOSITION : (Verified 8/23/10)
CSAC-Excess Insurance Authority
League of California Cities
ARGUMENTS IN SUPPORT : The California Professional
Firefighters (CPF) is sponsoring this bill to ensure that
firefighters do not place their own personal finances at
risk, when engaging in an on-duty, employer-directed
activity. CPF observes that the number of daily details
for California firefighters is on the rise. With more
"detailing out," there is an increased demand on fire
departments to provide transportation. In some cases,
there is increased pressure on firefighters to use their
privately-owned vehicles, when department-provided
transportation is not authorized or available. In a few
instances, where firefighters have been ordered or
pressured to use their personal vehicles when on detail, a
handful of employers have refused to indemnify firefighters
who are involved in accidents, while using their personal
vehicles to conduct fire department business. Some
firefighters have been left financially on the hook by
their private insurance carriers, in instances when they
were using their personal vehicles and were involved in a
crash, while detailed out. This bill ensures that, in
cases where department transportation is needed but not
available, and where private vehicles are used, employers
must assume any liability for expenses resulting from an
accident involving that vehicle.
ARGUMENTS IN OPPOSITION : The League of California Cities
believe that it is both inappropriate and unnecessary to
shift the liability for accidents involving personal
vehicles from individuals to public employers. If this
bill is enacted, employers of public safety personnel will
face increased liability for employees who drive their
personal vehicles for work purposes, which, in turn, will
increase the employers' insurance costs.
When employees use their personal vehicles for work
purposes, they are typically reimbursed at the Internal
Revenue Service (IRS)-established mileage reimbursement
rate, or, in some cases, at mileage rates that are
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negotiated with their employers. The IRS mileage
reimbursement rate includes insurance costs among the items
for which it is intended to reimburse those who drive their
personal vehicles for work purposes.
ASSEMBLY FLOOR :
AYES: Adams, Ammiano, Anderson, Arambula, Bass, Beall, Bill
Berryhill, Tom Berryhill, Blakeslee, Block, Blumenfield,
Bradford, Brownley, Buchanan, Caballero, Charles
Calderon, Carter, Chesbro, Conway, Cook, Coto, Davis, De
Leon, DeVore, Emmerson, Eng, Feuer, Fong, Fuentes,
Fuller, Furutani, Gaines, Galgiani, Garrick, Gilmore,
Hagman, Hall, Hayashi, Hernandez, Hill, Huber, Huffman,
Jeffries, Jones, Knight, Lieu, Logue, Bonnie Lowenthal,
Ma, Mendoza, Miller, Monning, Nestande, Niello, Nielsen,
Norby, V. Manuel Perez, Portantino, Ruskin, Salas,
Saldana, Silva, Skinner, Smyth, Solorio, Audra
Strickland, Swanson, Torlakson, Torres, Torrico, Tran,
Yamada
NO VOTE RECORDED: De La Torre, Evans, Fletcher, Harkey,
Nava, Villines, John A. Perez, Vacancy
JJA:do 8/23/10 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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