BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 1430
                                                                  Page  1

          Date of Hearing:  June 23, 2014

                        ASSEMBLY COMMITTEE ON TRANSPORTATION
                               Bonnie Lowenthal, Chair
                     SB 1430 (Hill) - As Amended:  March 25, 2014

           SENATE VOTE  :  28-4
           
          SUBJECT  :  Malicious mischief: airport property: transportation  
          services 

           SUMMARY  :  Prohibits a person that is providing transportation  
          services from dropping off passengers at certain airports unless  
          they are authorized by the airport to provide transportation  
          services, as specified.  Specifically,  this bill  : 

          1)Clarifies that a person providing transportation services to  
            an airport that is owned by a city, county, or city and county  
            but located in another county is prohibited from transporting  
            passengers to the airport if they are not authorized by the  
            airport to provide transportation services.  

          2)Provides that a person conducting unauthorized transportation  
            services to the airport is guilty of a misdemeanor. 

          3)Includes an urgency provision.   

           EXISTING LAW  : 

          1)Authorizes an airport to adopt and enforce rules and  
            regulations pertaining to access, use of streets and roads,  
            parking, passenger transfers, and use of buildings and  
            facilities on airport property.  

          2)Provides that a person who enters or remains on airport  
            property owned by a city, county, or city and county, but  
            located in another county, and sells, peddles, or offers for  
            sale any goods, merchandise, property, or services of any kind  
            whatsoever, including transportation services on or from, the  
            airport property, without express written consent of the  
            governing board of the airport property, is guilty of a  
            misdemeanor.  

          3)Establishes the "Passenger Charter-Party Carriers Act," which  
            directs the state Public Utilities Commission (PUC) to issue  








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            permits or certificates to charter-party carrier of passengers  
            (CPCs), investigate complaints against carriers, and cancel,  
            revoke, or suspend permits and certificates for specific  
            violations.  

          4)Defines "charter-party carrier of passengers" as every person  
            engaged in the transportation of persons by motor vehicle for  
            compensation, whether in common or contract carriage, over any  
            public highway in the state.   

          5)Requires CPCs to operate on a prearranged basis.  Further  
            defines "prearranged basis" to mean that the transportation of  
            the prospective passenger was arranged with the carrier by the  
            passenger, or a representative of the passenger, either by  
            written contract or telephone.

          6)At the regulatory level, defines a transportation network  
            company (TNCs) as an organization whether a corporation,  
            partnership, sole proprietor, or other form, operating within  
            the state that provides prearranged transportation services  
            for compensation using an online-enabled application or  
            platform to connect passengers with drivers using their  
            personal vehicles.       

           FISCAL EFFECT  :  Unknown

           COMMENTS  :  Currently, two airports within the state are owned by  
          a county but are operated outside the county's jurisdiction.   
          Ontario Airport is owned and operated by Los Angeles World  
          Airports but is located in San Bernardino County.  San Francisco  
          International Airport (SFO) is owned by the City and County of  
          San Francisco but is located in San Mateo County. As a result of  
          their respective locations, when crimes/violations occur at  
          these airports, the local county district attorney (DA)  
          prosecutes these crimes - e.g. the San Mateo County DA  
          prosecutes crimes committed on SFO property.  

          AB 1885 (Hill) Chapter 584, Statutes of 2010, allows the San  
          Mateo DA to prosecute persons illegally conducting business at  
          SFO to clarify that transportation service providers not  
          authorized by SFO and CPCs illegally soliciting business from  
          airport patrons are subject to prosecution.  At that time, SFO  
          was experiencing a significant problem with CPCs illegally  
          soliciting customers "off the curb" rather than on a prearranged  
          basis.  This clarification provided by AB 1885 allowed the San  








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          Mateo DA to prosecute these types of violations on SFO property.  
           

          Similarly, the author introduced this bill on behalf of SFO and  
          the San Mateo DA in order to provide additional clarification in  
          existing law.  While existing law prohibits unauthorized  
          businesses, including transportation services, from operating on  
          or from SFO, it is unclear for transportation services that take  
          passengers "to" SFO.  As a result, since existing law does not  
          explicitly state this prohibition, the San Mateo DA has declined  
          to prosecute unauthorized transportation service providers -  
          such as TNCs - that drop off passengers at SFO.  This bill will  
          provide the additional clarification to allow the San Mateo DA  
          to prosecute persons and businesses not authorized to provide  
          transportation services to SFO.  
           
          While this bill will provide clarification that any unauthorized  
          transportation service provider transporting passengers to SFO  
          property is prohibited, this clarification will have the  
          greatest impact on TNCs. Currently, no TNC is authorized to  
          provide transportation services to and/or from SFO.  SFO does  
          have an application process that allows PUC-permitted TNCs to  
          obtain authorization; however, only two TNCs have applied and  
          did not meet authorization criteria (e.g. commercial insurance,  
          real-time tracking on SFO property, etc).  Despite not having  
          the proper authorization, TNCs continue to conduct business on  
          SFO property.  Recent SFO enforcement statistics report the  
          following: 

          From April 16 to June 2: 

             1)   298 contacts resulting in verbal admonishments for  
               violating CPUC decision;

             2)   10 drivers with 2 admonishments, no citations yet;

             3)   55% able to present complete waybill (with photo of  
               driver, license plate of vehicle and proof of TNC trip in  
               progress);

             4)   15% of drivers had complete, properly displayed trade  
               dress;

             5)   8% of drivers had some trade dress displayed, but not  
               correctly;








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             6)   77% of drivers did not have any trade dress displayed;

             7)   21 drivers cited for 28 Vehicle Code violations; 9 for  
               no proof of insurance, 5 for improper display of license  
               plate, 8 for no registration certificate, 2 for unlicensed  
               driver, 2 for no possession of driver's license, 1 for  
               expired registration and 1 for no CPUC license number; and,

             8)   25 vehicles were being operated by persons other than  
               the registered owner.  

          Moreover, the number of TNC drivers providing unauthorized  
          transportation to and from airports throughout the state has  
          been steadily increasing and widely reported.  In response to  
          this issue, the PUC has sent a letter to TNCs requesting  
          unauthorized transport of passengers to airports ceases by June  
          24, 2014, or be subject to PUC fines and revocation of CPC  
          permits.  

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          San Francisco International Airport 
           
            Opposition 
           
          None on file 

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