BILL ANALYSIS �
AB 1524
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Date of Hearing: March 28, 2012
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Felipe Fuentes, Chair
AB 1524 (Allen) - As Introduced: January 19, 2012
Policy Committee:
TransportationVote:14-0
Urgency: No State Mandated Local Program:
Yes Reimbursable: No
SUMMARY
This bill eliminates the January 1, 2013 sunset date on the
exemption of commercial balloon operators from regulation by the
Public Utilities Commission (PUC) and also extends indefinitely
the requirements for these operators to maintain specified
minimum liability insurance coverage and to provide specified
notifications to passengers.
FISCAL EFFECT
Ongoing minor savings to the PUC, which, absent this bill, would
resume regulation of commercial operators of hot air balloons
effective January 1, 2013.
COMMENTS
Background and Purpose . Before 2005, commercial operators of hot
air balloons, who primarily provide sightseeing rides for
tourists, were regulated by the PUC as other commercial air
operators, such as small aircraft engaged in cargo, charter, and
sightseeing services. These commercial balloon operators were
thus subject to increasingly expensive and limited liability
insurance requirements. As a result of the standards established
by the PUC, insurers withdrew from the hot air balloon liability
insurance market or offered insurance coverage that was cost
prohibitive.
AB 2430 (Wiggins)/Chapter 881 of 2004, for four years removed
commercial balloon operators from PUC jurisdiction, established
minimum insurance requirements, required notification to
passengers of the operator's liability coverage, and required
AB 1524
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proof of coverage to the local government entity granting the
ballooning company a business license. SB 911 (Wiggins)/ Chapter
706 of 2008 extended these provisions for an additional four
years.
AB 1524 removes the sunset date and thus extends these
provisions indefinitely. The PUC is in support of this bill.
Analysis Prepared by : Chuck Nicol / APPR. / (916) 319-2081