BILL ANALYSIS �
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
AB 45 (Hill) - Charter-party carriers: alcoholic beverages -
open containers.
Amended: August 6, 2012 Policy Vote: EUC 7-1, JUD 4-0
Urgency: No Mandate: Yes
Hearing Date: August 6, 2012
Consultant: Jolie Onodera
This bill does not meet the criteria for referral to the
Suspense File.
Bill Summary: AB 45 would repeal specified provisions of the
Passenger Charter-party Carriers' Act (Act) related to the
requirements for a driver of a limousine for hire operated by a
charter-party carrier of passengers (carrier) concerning the
consumption of alcoholic beverages by passengers under 21 years
of age, and would instead require the chartering party, as
defined, to name a "designee" to be present on any party bus or
limousine, as specified. This bill would impose various
responsibilities and liabilities upon the designee, driver, and
carrier to prevent the consumption of alcohol by persons under
21 years of age. This bill would also provide for specified
penalties for failure to comply with these provisions, and would
make it a misdemeanor for third and subsequent violations
relating to the storage or possession of an open container of an
alcoholic beverage, as specified.
Fiscal Impact:
Minor, absorbable costs to the Public Utilities Commission
(PUC) associated with the revised provisions of the Act.
Potential ongoing minor court costs for misdemeanor
filings, likely less than $25,000 (General Fund) for 50 new
misdemeanor filings per year.
While the impact of this bill independently is likely to be
minor, the cumulative effect of all new misdemeanors could
create General Fund cost pressure on capital outlay,
staffing, programming, the courts, and other resources in
the context of recently enacted 2011 Public Safety
Realignment.
Background: Existing law, the Passenger Charter-party Carriers'
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Act, authorizes the California PUC to regulate charter-party
carriers of passengers, defined as persons engaged in the
transportation of persons by motor vehicle for compensation on a
prearranged basis over any public highway in the state. The Act
imposes the following requirements on the driver of any
limousine for hire operated by a carrier under a valid
certificate or permit:
Ascertain whether any passenger is under the age of 21
years.
Read to any passenger under 21 years of age a specified
statement that notifies the passenger, among other things,
that the consumption of any alcoholic beverage in the
vehicle is unlawful and that, if during the course of the
ride any minor is found to be, or to have been, consuming
any alcoholic beverage, the contract will be terminated and
the customer will be brought back to the point of origin of
the ride.
Require every passenger under the age of 21 years to sign
the statement to be retained by the limousine operator for
the period required by the commission.
Immediately terminate the contract of hire and return the
passengers to the point of origin of the ride if any minor
passenger, after signing the statement above is found to be,
or to have been, consuming any alcoholic beverage during the
course of any ride subject to this section.
Under existing law, failure of a driver to comply with the
aforementioned requirements that results in the conviction of a
driver of a violation of Vehicle Code (VC) section 23225, which
prohibits the storage of an open container containing any
alcoholic beverage in a vehicle, is subject to various penalties
which include specified fines and revocation of the carrier's
permit. Notably, under existing law, the requirements previously
noted that are imposed upon a limousine driver do not apply to
the driver of any bus, taxicab, or van.
Proposed Law: This bill, to be known as the Brett Studebaker
Law, would repeal Section 5384.1 of the Public Utilities Code
related to requirements for a limousine driver for hire operated
by a carrier concerning the consumption of alcoholic beverages
by passengers under 21 years of age, and would instead enact
specified requirements and liabilities relating to under-age
drinking on charter party carriers, as specified. This bill
would impose various penalties for violations of the bill's
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provisions, and would create two new misdemeanors. This bill:
Requires a chartering party, as defined, to disclose to the
carrier at the time the service is prearranged or the contract
is made, whether alcoholic beverages will be served or
transported in the passenger compartment of the vehicle during
transportation and whether a member of the party will be under
21 years of age.
If the aforementioned is true, the carrier is required to
notify the chartering party of specified responsibilities,
including the assignment of a "designee" who is at least 25
years of age to be present whenever persons under 21 years of
age who are not accompanied by a parent or legal guardian are
being transported.
Requires the designee to make reasonable efforts to ensure
compliance with all laws prohibiting the consumption of
alcoholic beverages by persons under 21 years of age who are
members of the party and are unaccompanied by a parent or
legal guardian.
Requires the carrier to provide a copy of a written form
signed by the designee to the chartering party within 24 hours
of the reservation. If the form is not provided, the carrier
must provide a designee who is not the driver and shall incur
all liabilities of that designee.
Requires the carrier to inform the driver of the vehicle that
alcohol will be present and that there will be persons under
21 years of age present during the provision of transportation
services, and the name of the designee.
Requires the driver to obtain the designee's signature or
initials on a written form indicating the designee's
acknowledgment and agreement to specified terms.
Extends the following existing penalties imposed on limousine
drivers to all charter-party carriers of passengers for a
specified violation of the Vehicle Code related to the storage
of an opened container of an alcoholic beverage.
o For a first offense, the PUC may impose a
civil penalty of not more than $2,000 upon the
carrier.
o For a second offense, the PUC may impose a
civil penalty of not more than $2,000 upon the carrier
or suspend the carrier's certificate or permit for not
more than 30 days, or both.
o For a third offense, the PUC is required to
revoke the carrier's certificate or permit.
Provides that a third or subsequent violation of VC section
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23225, relating to the storage of an opened container of an
alcoholic beverage, or Section 23223, relating to the
possession of an open container of an alcoholic beverage, or a
driver of any vehicle used to provide transportation services
on a prearranged services, operating under a valid certificate
or permit, as specified, is a misdemeanor.
Staff Comments: The PUC has indicated the costs to their
department associated with the revisions to the Act will be
minor and absorbable.
Except in cases where a different punishment is prescribed, a
misdemeanor offense is punishable by imprisonment in the county
jail not exceeding six months, by a fine not exceeding $1,000,
or by both. The Judicial Council may incur costs for increased
misdemeanor filings, but annual costs are likely to be minor of
less than $25,000 (General Fund) statewide if 50 new
misdemeanors are filed per year, and would be offset to a degree
by fine revenue.
The creation of new misdemeanors has historically been analyzed
by this Committee to result in non-reimbursable state mandated
costs for local law enforcement and incarceration. Staff notes,
however, that the creation of new misdemeanors taken
cumulatively could increase the statewide adult jail population
to a degree that could potentially impact the flexibility of
counties to manage their jail populations recently increased
under the 2011 Public Safety Realignment. While the provisions
of this bill are likely to be minor, the cumulative effect of
all new misdemeanors could create unknown General Fund cost
pressure on capital outlay, staffing, programming, the courts,
and other resources.