BILL ANALYSIS                                                                                                                                                                                                    �



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           SENATE THIRD READING
          SB 1430 (Hill)
          As Amended  March 25, 2014
          2/3 vote.  Urgency

           SENATE VOTE  :28-4  
           
           TRANSPORTATION      11-0        APPROPRIATIONS      14-3        
           
           ----------------------------------------------------------------- 
          |Ayes:|Lowenthal, Linder,        |Ayes:|Gatto, Bigelow,           |
          |     |Achadjian, Bonta,         |     |Bocanegra, Bradford, Ian  |
          |     |Buchanan, Daly, Frazier,  |     |Calderon, Campos, Eggman, |
          |     |Gatto, Nazarian,          |     |Gomez, Holden, Linder,    |
          |     |Quirk-Silva, Waldron      |     |Pan, Quirk,               |
          |     |                          |     |Ridley-Thomas, Weber      |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |Nays:|Donnelly, Jones, Wagner   |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           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.  

           FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee, likely minor non-reimbursable costs for prosecution  
          of violations, which constitute a misdemeanor, offset to some  
          extent by fine revenues.  

           COMMENTS  :  Currently, two airports within the state are owned by  
          a county but are operated outside the county's jurisdiction.   








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          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 Charter Party Carriers (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 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 Transportation Network Companies (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 California Public  
          Utilities Commission (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  








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          the proper authorization, TNCs continue to conduct business on  
          SFO property.  Recent SFO enforcement statistics report the  
          following: 

          From April 16, 2014 to June 2, 2014: 

             1)   Two hundred and ninety-eight contacts resulting in  
               verbal admonishments for violating PUC decision;

             2)   Ten drivers with two admonishments, no citations yet;

             3)   Fifty-five percent able to present complete waybill  
               (with photo of driver, license plate of vehicle and proof  
               of TNC trip in progress);

             4)   Fifteen percent of drivers had complete, properly  
               displayed trade dress;

             5)   Eight percent of drivers had some trade dress displayed,  
               but not correctly;

             6)   Seventy-seven percent of drivers did not have any trade  
               dress displayed;

             7)   Twenty-one drivers cited for 28 Vehicle Code violations;  
               nine for no proof of insurance, five for improper display  
               of license plate, eight for no registration certificate,  
               two for unlicensed driver, two for no possession of  
               driver's license, one for expired registration, and one for  
               no PUC license number; and,

             8)   Twenty-five vehicles were being operated by persons  
               other than the registered owner.  

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


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