BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 611
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          Date of Hearing:  June 9, 2014

                        ASSEMBLY COMMITTEE ON TRANSPORTATION
                               Bonnie Lowenthal, Chair
                      SB 611 (Hill) - As Amended:  June 4, 2014

           SENATE VOTE :  Not relevant 
           
          SUBJECT  :  Modified limousines: inspection program: safety  
          requirements 

           SUMMARY  :  Requires all modified limousines, as defined, to be  
          equipped with two fire extinguishers and requires the California  
          Highway Patrol (CHP) to develop and implement an inspection  
          program for modified limousines, as specified.  Specifically,  
           this bill  : 

          1)Requires passenger stage corporations (PSCs) and charter-party  
            carrier of passengers (CPCs) to provide a list to the Public  
            Utilities Commission (PUC) specifically identifying each  
            modified limousine, as defined, operated by a PSC and CPC and  
            the terminal location of each modified limousine.  

          2)Prohibits PUC from issuing to a PSC or CPC any permit,  
            certificate, or authority to provide transportation services  
            if all required inspection fees are not submitted to PUC, as  
            specified.  Further requires PUC to terminate any existing  
            permit, certificate, or authority of a PSC or CPC if all  
            required inspection fees are not submitted to PUC, as  
            specified.  

          3)Requires PUC to no later than January 1, 2015, to provide CHP  
            with a list of all modified limousines and their terminal  
            locations in order for CHP to promulgate regulations for a  
            limousine inspection program.  

          4)Repeals existing provisions requiring CPCs to obtain special  
            "livery" license plates issued by the Department of Motor  
            Vehicles (DMV) and to permanently affix livery plates on all  
            limousines the CPC operates.  

          5)Defines "modified limousine" as any vehicle that has been  
            modified, altered, or extended in a manner that increases the  
            overall wheelbase of the vehicle in any amount sufficient to  
            accommodate additional passengers with a seating capacity of  








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            not more than 10 passengers including the driver and is used  
            in the transportation of passengers for hire.  

          6)Requires all modified limousines to be equipped with two fire  
            extinguishers, as specified.  Requires a driver or operator of  
            a modified limousine to notify passengers of the location of  
            each fire extinguisher in the vehicle.  

          7)Requires CHP to establish a limousine inspection program and  
            requires modified limousines operated by a PSC or CPC to be  
            inspected by CHP once every 13 months.  

          8)Requires CHP to implement the limousine inspection program no  
            later than January 1, 2016, and requires CHP to adopt  
            emergency regulations for purposes of developing and  
            implementing the inspection program.  

          9)Specifies that the limousine inspection program must include  
            an inspection of, but not be limited to, the installation of  
            safety equipment, retention of maintenance logs, accident  
            reports, and driver records.  

          10)Requires CHP to establish an inspection fee through the  
            promulgation of regulations that will be applied to modified  
            limousines subject to inspection.  Specified the inspection  
            fee will be collected every 13 months, based on the number of  
            modified limousines operated by a PSC or CPC, and set at the  
            amount necessary to cover CHP's cost to administer the  
            limousine inspection program.  

          11)Requires the inspection fee to be collected by PUC.  

          12) Requires CHP to transmit inspection data to PUC.   

          13) Makes additional conforming and technical changes.  

           EXISTING LAW  :

          1)Establishes the "Passenger Charter-Party Carriers Act," which  
            directs the PUC to issue permits or certificates to CPCs,  
            investigate complaints against carriers, and cancel, revoke,  
            or suspend permits and certificates for specific violations.  

          2)Defines "charter-party carrier of passengers" as every person  
            engaged in the transportation of persons by motor vehicle for  








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            compensation, whether in common or contract carriage, over any  
            public highway in the state.  

          3)Defines "passenger stage corporation" as a corporation or  
            person engaged as a common carrier, for compensation, in the  
            ownership, control, operation, or management of any passenger  
            stage over any public highway in the state between a fixed  
            termini or over a regular route, as specified.  

          4)Defines "limousine" as any sedan or sport utility vehicle,  
            either standard or extended length, with a seating capacity of  
            not more than 10 passengers including the driver, that is used  
            for transportation of passengers for hire on a prearranged  
            basis.  

          5)Defines a "bus" as a vehicle designed, used, or maintained for  
            carrying more than 10 persons, including the driver, which is  
            used to transport persons for compensation or profit, or is  
            used by any nonprofit organization or group.  

          6)Prohibits a dealer from selling or from offering for sale a  
            vehicle that does not conform to federal vehicle safety  
            standards.  Additionally, prohibits a person from selling or  
            offering for sale for use upon a vehicle an item of equipment  
            that does not conform to federal vehicle safety standards.  

          7)At the federal level, prohibits states from imposing vehicle  
            equipment standards that are inconsistent with or conflict  
            with any related federal standard.  

          8)Requires CHP to inspect and regulate the safe operation to of  
            various types of vehicles, such as buses, as specified.  

          9)Requires PSCs to provide an annual list to PUC that identifies  
            all vehicles used in transportation for compensation during  
            the preceding year and requires PUC to provide the list to  
            CHP.  

          10)Requires a limousine operated by a CPC to display a specialty  
            license plate issued by DMV that includes the word "Livery."  

           FISCAL EFFECT  :  Unknown

           COMMENTS  :  CPCs and PSCs are regulated by the PUC.  CPC's  
          provide limousine transportation services that are prearranged  








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          by a "chartering party" (e.g. person or group) and are designed  
          to allow the chartering party to have control over the  
          transportation - i.e., when and where the trip originates and  
          ends and the itinerary in between that period.  Additionally,  
          CPCs may not charge individual fares; rather, fees are based on  
          vehicle mileage, time of use, or some combination thereof.  PSCs  
          typically provide scheduled services over fixed routes and  
          charge individual fees.  PSCs also provide on call "door to  
          door" shuttle services, such as airport shuttle service.   
          However, PSCs may also operate limousine transportation services  
          similar to CPCs.  The key difference is that CPSs solely operate  
          chartered limousine transportation services whereas PSCs may  
          operate both shuttle and limousine services.  

          PSCs and CPCs that operate limousines with a seating capacity  
          for more than 10 passengers are subject to commercial vehicle  
          regulatory requirements and thus must comply with the same  
          driver safety and vehicle maintenance requirements as charter  
          buses or shuttles, including CHP vehicle inspections, driver  
          certifications, and hours of service requirements.  However,  
          PSCs and CPCs that operate limousines with a seating capacity of  
          less than 10 passengers remain classified as passenger vehicles  
          and are not subject to the abovementioned requirements.  Rather,  
          these limousine operators must submit to the PUC an application  
          to obtain a permit or certificate, pay a fee, and provide  
          adequate evidence of financial responsibility.  Upon receiving a  
          permit or certificate, ongoing or periodic vehicle inspections  
          are not required to be conducted by PUC or CHP.  A carrier  
          permit or certification is valid for three years from the time  
          of issuance and requires a carrier to submit a renewal  
          application and provide the proper documentation accordingly.   
          PSCs and CPCs may be subject to a PUC investigation under  
          specific circumstances including, a complaint by a customer, a  
          complaint by an industry or law enforcement entity, or a notice  
          of lapsed or cancelled insurance policies; however a safety  
          inspection of limousines is not required.  

          Last year, over a two-month period, two limousine fires occurred  
          in Northern California. On May 5, 2013, a limousine fire  
          occurred on the San Mateo-Hayward bridge killing five passengers  
          who were unable to escape the vehicle.  Several of the other  
          passengers were able to exit the limousine only after climbing  
          through the partition window separating the passengers from the  
          driver.  On June 11, 2013, nine passengers successfully exited a  
          limousine in Walnut Creek prior to the vehicle catching fire  








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          while idling.  In both cases, the modified limousines were not  
          subject to CHP inspections due to the vehicle's seating capacity  
          being less than 10 passengers.  

          In response to these incidents, the author introduced SB 338  
          which would have required modified limousines to be equipped  
          with two fire extinguishers and directed CHP to develop and  
          implement a limousine inspection program.  The Governor  
          ultimately vetoed SB 338 and requested the Legislature to send  
          him similar legislation with a provision authorizing CHP to  
          charge a fee for the actual cost to perform the inspections.  

          This bill is in response to the Governor's veto message and is  
          aimed to increase safety in the limousine industry.  The author  
          asserts this bill will improve the safety standards for modified  
          limousines by bringing them in line with the safety standards  
          for larger charter-party vehicles.  Additionally, this bill  
          attempts to resolve the Governor's concerns by authorizing CHP  
          to collect inspection fees sufficient to offset the cost to  
          administer the inspection program.  Lastly, by requiring PSCs  
          and CPCs to provide a list of all operating modified limousines  
          and terminal locations, the provisions in this bill intend to  
          provide CHP with sufficient data to develop an effective  
          inspection program that will capture all modified limousines  
          operating on the state's roads and highways.  

           Double referred  : This bill is also referred to the Assembly  
          Utilities and Commerce Committee where it will be directed if it  
          successfully passes out of this committee.  

           Previous legislation  : SB 338 (Hill), almost identical to this  
          bill, required extended or modified limousines to be equipped  
          with two fire extinguishers and required CHP to develop and  
          implement an inspection program for extended or modified  
          limousines, as specified. This bill was vetoed by the Governor.   


           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          Greater California Livery Association
          California Fire Chiefs Association 
            California State Sheriffs' Association 
          Alliance of Automobile Manufacturers 








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           Opposition 
           
          None on file

           
          Analysis Prepared by  :   Manny Leon / TRANS. / (916) 319-2093