BILL ANALYSIS
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THIRD READING
Bill No: SB 1264
Author: Leno (D), et al
Amended: 6/1/10
Vote: 21
SENATE TRANSPORTATION & HOUSING COMMITTEE : 6-2, 4/20/10
AYES: Lowenthal, DeSaulnier, Kehoe, Oropeza, Pavley,
Simitian
NOES: Huff, Ashburn
NO VOTE RECORDED: Harman
SENATE APPROPRIATIONS COMMITTEE : 7-3, 5/27/10
AYES: Kehoe, Alquist, Corbett, Leno, Price, Wolk, Yee
NOES: Denham, Walters, Wyland
NO VOTE RECORDED: Cox
SENATE FLOOR : 17-16, 6/3/10 (FAIL)
AYES: Alquist, Corbett, DeSaulnier, Florez, Hancock,
Kehoe, Leno, Liu, Lowenthal, Oropeza, Pavley, Romero,
Simitian, Steinberg, Wiggins, Wolk, Yee
NOES: Aanestad, Ashburn, Calderon, Cedillo, Cogdill,
Correa, Denham, Ducheny, Dutton, Huff, Negrete McLeod,
Runner, Strickland, Walters, Wright, Wyland
NO VOTE RECORDED: Cox, Harman, Hollingsworth, Padilla,
Price
SUBJECT : Commercial airlines: passenger rights
SOURCE : Author
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DIGEST : This bill establishes rights for passengers who
are detained on an airline for over two hours.
ANALYSIS : Federal law prohibits a state or political
subdivision of a state from enacting or enforcing a law,
regulation, or other provision related to a price, route,
or service of an air carrier. Further, it preempts the
entire field of aviation safety from state regulation. On
April 29, 2010, federal regulations governing planes with
passengers being held on the ground (commonly referred to
as tarmac delays) for three hour will become effective.
The federal regulations mandate that departing and arriving
planes held on the tarmac must, after two hours, provide
food and potable water to detained passengers.
This bill:
1.Establishes rights for airline passengers detained in an
airplane for over two hours, either before takeoff or
after landing. In those instances where passengers are
detained on the tarmac, this bill requires airlines to
provide for its passengers, on an as-needed basis,
electrical service for sufficient fresh air and light;
waste removal service for sanitation facilities; and
adequate food, drinking water, and other refreshments.
2.Requires airlines to provide conspicuous notice regarding
passenger or consumer complaint contact information
including an explanation of the rights of airline
passengers, the posting of forms and consumer information
near passenger counters in terminals in airports, the
name, address, and telephone number of company personnel
responsible for complaints, and the telephone number and
mailing address of the Office of Aviation Enforcement and
Proceedings in the U.S. Department of Transportation
(U.S. DOT).
3.If the U.S. DOT no longer has the authority to levy fines
upon an air carrier for departing or arriving passenger
aircraft that are delayed on the ground, the Public
Utilities Commission may levy a civil penalty of up to
$27,500 per passenger upon an airline for violating the
provisions of this bill and to deposit the revenue into
the General Fund. Specifies the PUC may not take
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enforcement activities unless the Legislature
appropriates funds for such a purpose, however, the PUC
may use existing resources to undertake preliminary steps
necessary to preserve its enforcement authority.
Background
According to the Bureau of Transportation Statistics the
number of delayed flights have risen from about one million
in 1998 to 1.8 million in 2007. The reasons for the delays
are as follows:
1.38 percent of the time aircraft arrived late at the gate.
2.29 percent were air carrier imposed delays.
3.28 percent were aviation system delays.
4.6 percent were due to extreme weather.
According to the Joint Economic Committee of Congress
nearly 60 percent of the time passengers lose to flight
delays is spent waiting at a gate, about 20 percent of
occurs during the taxi process, and 15 percent takes place
in the air. The cost, according to that committee, to
passengers and their employers is as much as $12 billion in
lost productivity, business opportunities, and missed
leisure activities. That committee estimated the loss to
the lodging and food service industry at about $10 billion
and that flight delays have wasted about $1.6 billion in
fuel.
Federal response to aircraft delays . The federal
regulations governing tarmac delays included extensive
requirement to which the airline must adhere, such as the
preparation of a Contingency Plan for Lengthy Tarmac Delays
and a Customer Service Plan that has a section addressing
customers' needs during lengthy tarmac delays. In addition,
the regulations prohibit a plan from waiting on the tarmac
for more than three hours and after two have the carrier
must provide adequate food, water, sanitation, and medical
attention, if necessary. After three hours on the tarmac,
U.S. DOT can fine the carrier a $27,500 per onboard
passenger.
States vs. Federal pre-emption . In response to the
experiences of airline travelers, the New York legislature
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enacted a law in 2007 that provides a measure of consumer
protection to fliers using New York airports. The Air
Transportation Association of American (ATA) challenged the
law, which a federal district court upheld, but the U. S.
Court of Appeals for the Second Circuit overturned because
it violated the Airline Deregulation Act of 1978. In its
opinion, the court quoted the following from the act:
"States may not enact or enforce a law, regulation, or
other provision having the force and effect of law related
to a price, route, or service of an air carrier that may
provide air transportation. ..." The opinion also pointed
out that to prevent the states from undoing the
deregulation, Congress included a pre-emption provision.
The state of New York did not appeal the ruling of the
Second Circuit.
Previous Legislation
AB 1943 (Leno) of 2008, which was very similar to this
bill, died on the Senate Floor. Another bill, AB 1407
(Lieu) of 2008, which the Governor vetoed, required
airports serving over one million passengers annually to
publish on their websites information about airport and
airline operations.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
According to the Senate Appropriations Committee:
Fiscal Impact (in thousands)
Major Provisions 2010-11 2011-12 2012-13
Fund
PUC enforcement
staffing costs of $250-$500 in a future fiscal
Special*
year if the U.S. DOT discontinues
enforcement General
(contingent upon future appropriation)
Civil penalty
unknown, potentially significant penalty
General
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revenues revenue gains in a future fiscal year if the
federal DOT discontinues enforcement
* Public Utilities Commission General Transportation
Reimbursement Account or General Fund
SUPPORT : (Verified 5/27/10)
Flyersrights.org
California Coalition of Travel Organizations
Consumer Federation
Service Employees International Union
OPPOSITION : (Verified 5/27/10)
Department of Finance
California Chamber of Commerce
Southwest Airlines
United Airlines
JA:nl 6/22/10 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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