Existing law provides for the Department of Motor Vehicles to register vehicles used on the public streets and highways and to verify insurance coverage. Existing law provides for the Public Utilities Commission to regulate certain classes of passenger carriers, including charter-party carriers of passengers and passenger stage corporations, and to issue certificates or permits in that regard. Existing law requires the Department of the California Highway Patrol to regulate the safe operation of certain classes of vehicles, including buses and modified limousines. Existing law requires charter-party carriers of passengers and passenger stage corporations to report the vehicles they use in their operations to the commission. A violation of provisions governing charter-party carriers of passengers and passenger stage corporations is a crime.

This bill would require the Department of Motor Vehicles, in issuing or renewing a commercial vehicle registration, to require the owner of a bus, limousine, or modified limousine used by a charter-party carrier of passengers or a passenger stage corporation to disclose the name of the carrier or corporation that will be using the vehicle in its operations. The bill would require the Public Utilities Commission, in collaboration with the Department of Motor Vehicles, to annually verify that the buses, limousines, and modified limousines used by a carrier or corporation have been reported to the commission by the carrier or corporation, would require the carriers and corporations to provide the commission with vehicle registration information for each vehicle, and would prohibit the commission from issuing or renewing a noncompliant carriers or corporations permit, certificate, or authority. The bill would require the Department of Motor Vehicles to notify the Public Utilities Commission when a charter-party carrier of passengers or a passenger stage corporation first registers a bus, limousine, or modified limousine with the department, and to provide information to the commission that will allow the commission to identify the vehicle. The bill would require the commission, with respect to those newly registered buses, limousines, or modified limousines, to ensure that the vehicles meet all statutory and regulatory requirements for safe operation. The bill, upon the commission becoming aware of a bus, limousine, or modified limousine of a charter-party carrier of passengers or a passenger stage corporation that has not been reported to the commission by the carrier or corporation, would require the commission to immediately take steps to require the carrier or corporation to update its reporting of vehicles to the commission and to request the Department of the California Highway Patrol to conduct a safety inspection of the vehicle. The bill would prohibit use of such a bus, limousine, or modified limousine to transport passengers in the absence of securing a satisfactory rating from the Department of the California Highway Patrol, and would authorize a law enforcement agency to impound a bus, limousine, or modified limousine operated in violation of this provision. All of these provisions of the bill would become operative on January 1, 2018. Because a violation of certain provisions of the bill would be a crime, this bill would impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

Existing law provides for the Department of Motor Vehicles to register vehicles used on the public streets and highways and to verify insurance coverage. Existing law provides for the Public Utilities Commission to regulate certain classes of passenger carriers, including charter-party carriers of passengers and passenger stage corporations, and to issue certificates or permits in that regard. Existing law requires the Department of the California Highway Patrol to regulate the safe operation of certain classes of vehicles, including buses and modified limousines. Existing law requires charter-party carriers of passengers and passenger stage corporations to report the vehicles they use in their operations to the commission. A violation of provisions governing charter-party carriers of passengers and passenger stage corporations is a crime.

This bill would require the Department of Motor Vehicles, in issuing or renewing a commercial vehicle registration, to require the owner of a bus, limousine, or modified limousine used by a charter-party carrier of passengers or a passenger stage corporation to disclose the name of the carrier or corporation that will be using the vehicle in its operations. The bill would require the Public Utilities Commission, in collaboration with the Department of Motor Vehicles, to annually verify that the buses, limousines, and modified limousines used by a carrier or corporation have been reported to the commission by the carrier or corporation, would require the carriers and corporations to provide the commission with vehicle registration information for each vehicle, and would prohibit the commission from issuing or renewing a noncompliant carriers or corporations permit, certificate, or authority. The bill would require the Department of Motor Vehicles to notify the Public Utilities Commission when a charter-party carrier of passengers or a passenger stage corporation first registers a bus, limousine, or modified limousine with the department, and to provide information to the commission that will allow the commission to identify the vehicle. The bill would require the commission, with respect to those newly registered buses, limousines, or modified limousines, to ensure that the vehicles meet all statutory and regulatory requirements for safe operation. The bill, upon the commission becoming aware of a bus, limousine, or modified limousine of a charter-party carrier of passengers or a passenger stage corporation that has not been reported to the commission by the carrier or corporation, would require the commission to immediately take steps to require the carrier or corporation to update its reporting of vehicles to the commission and to request the Department of the California Highway Patrol to conduct a safety inspection of the vehicle. The bill would prohibit use of such a bus, limousine, or modified limousine to transport passengers in the absence of securing a satisfactory rating from the Department of the California Highway Patrol, and would authorize a law enforcement agency to impound a bus, limousine, or modified limousine operated in violation of this provision. Because a violation of certain provisions of the bill would be a crime, this bill would impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

Existing law provides for the Department of Motor Vehicles to register vehicles used on the public streets and highways and to verify insurance coverage. Existing law provides for the Public Utilities Commission to regulate certain classes of passenger carriers, including charter-party carriers of passengers and passenger stage corporations, and to issue certificates or permits in that regard. Existing law requires the Department of the California Highway Patrol to regulate the safe operation of certain classes of vehicles, including buses and modified limousines. Existing law requires charter-party carriers of passengers and passenger stage corporations to report the vehicles they use in their operations to the commission. A violation of provisions governing charter-party carriers of passengers and passenger stage corporations is a crime.

This bill would require the Department of Motor Vehicles to notify the Public Utilities Commission when a charter-party carrier of passengers or a passenger stage corporation first registers a bus, limousine, or modified limousine with the department, and to provide information to the commission that will allow the commission to identify the vehicle. The bill would require the commission, with respect to those newly registered buses, limousines, or modified limousines, to ensure that the vehicles meet all statutory and regulatory requirements for safe operation. The bill, upon the commission becoming aware of a bus, limousine, or modified limousine of a charter-party carrier of passengers or a passenger stage corporation that has not been reported to the commission by the carrier or corporation, would require the commission to immediately take steps to require the carrier or corporation to update its reporting of vehicles to the commission and to request the Department of the California Highway Patrol to conduct a safety inspection of the vehicle. The bill would prohibit use of such a bus, limousine, or modified limousine to transport passengers in the absence of securing a satisfactory rating from the Department of the California Highway Patrol, and would authorize a law enforcement agency to impound a bus, limousine, or modified limousine operated in violation of this provision. Because a violation of certain provisions of the bill would be a crime, this bill would impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

 THIRD READING  

Bill No: AB 1574

Author:

:

Vote:

SENATE ENERGY, U. & C. COMMITTEE: 11-0, 6/13/16

AYES: Hueso, Morrell, Cannella, Gaines, Hertzberg, Hill, Lara, Leyva, McGuire, Pavley, Wolk

SENATE TRANS. & HOUSING COMMITTEE: 10-0, 6/28/16

AYES: Beall, Cannella, Allen, Bates, Gaines, Leyva, McGuire, Mendoza, Roth, Wieckowski

NO VOTE RECORDED: Galgiani

SENATE APPROPRIATIONS COMMITTEE: 7-0, 8/11/16

AYES: Lara, Bates, Beall, Hill, McGuire, Mendoza, Nielsen

ASSEMBLY FLOOR: 79-0, 5/31/16 - See last page for vote

SUBJECT:

SOURCE: Author

DIGEST: This bill requires the California Public Utilities Commission (CPUC), beginning January 1, 2018, to verify with the Department of Motor Vehicles (DMV) that the buses, limousines, and modified limousines used by a passenger stage corporation (PSC) or a charter-party carrier (CPC) has been reported and meet safety requirements.

ANALYSIS:

Existing law:

1. Establishes the CPUC and empowers it to regulate privately owned public utilities and common carriers in California. (Article XII of the California Constitution; Public Utilities Code §301 et seq.)
2. Defines PSC as every 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 fixed termini or over a regular route, not including those exclusively operating within a local jurisdiction or school buses. Establishes the CPUC’s authority to regulate, require license or permit to operate, require vehicles used are in safe operating condition, require insurance and workers compensation, take appropriate enforcement action and other provisions. (Public Utilities Code §§226 and 1031 et seq.)
3. 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 and includes any person, corporation, or other entity engaged in the provision of a hired driver service when a rented motor vehicle is being operated by a hired driver. Establishes the CPUC’s authority to regulate, require license or permit to operate, require insurance and workers compensation, require vehicles are in safe operating condition, take appropriate enforcement action and other provisions. (Public Utilities Code §5351 et seq.)
4. Requires a bus operated as a CPC to undergo an annual bus terminal and vehicle inspection conducted by the California Highway Patrol (CHP). (Public Utilities Code §5373.1)
5. Requires every vehicle operated as a PSC to undergo an annual safety inspection conducted by the CHP. (Public Utilities Code §226)
6. Requires CPCs to prepare under oath and provide annually to the CPUC and the CHP a list of all vehicles used in transportation for compensation during the preceding year. (Public Utilities Code § 5374.5)
7. Requires every PSC to furnish the CPUC annually with a list, prepared under oath, of all vehicles used in transportation for compensation during the previous year, including identifying each modified limousine and its terminal location. Requires the CPUC to furnish the list of modified limousines to the CHP. (Public Utilities Code §1042)
8. Provides the CHP with the ability to take enforcement action related to requirements of buses of charter-party carriers as required by the Public Utilities Code, including ensuring a proper and current license or permit from the CPUC. (Vehicle Code §14602.9)
9. Requires the DMV to regulate the safe operation of buses, including tour buses, and establish regulations regarding equipment and operations.
10. Requires the CHP to inspect, at least every 13 months, every maintenance facility or terminal of any person who operates a bus and, beginning in January 1, 2017, of all operators of modified limousines. (Vehicle Code §34500 et seq.)

This bill:

1. Requires CPUC to work with DMV to verify on an annual basis, that buses, limousines, and modified limousines used by a PSC or CPC have been reported to CPUC by the carrier.
2. Requires CPUC to ensure that all newly registered buses, limousines, or modified limousines of PSCs or CPCs, reported by DMV, meet all statutory and regulatory requirements for safe operation.
3. Requires CPUC to take immediate steps to require the PSC or CPC to update its reporting of buses, limousines, and modified limousines to CPUC and request the Department of the CHP to conduct a safety inspection of the bus, limousine, or modified limousine, if CPUC become aware that the vehicle has not been reported by the carrier.
4. Requires every PSC and CPC to report annually to CPUC, in addition to the list of all buses, limousines, and modified limousines used in transportation for compensation by each PSC and CPC, the vehicle registration information for each vehicle.
5. Prohibits CPUC from issuing or continuing in effect any permit or certificate of a PSC or CPC that does not submit the vehicle registration information for each vehicle reported to CPUC.
6. Requires the DMV to notify the CPUC when a CPC or PSC renews or first registers a bus, limousine, or modified limousine, and provide the CPUC with information that will allow it to identify the vehicle.
7. Provides that the bill take effect on January 1, 2018.

Background

San Francisco bus tour accident. On November 13, 2015, a City Sightseeing bus crashed into construction scaffolding in San Francisco’s Union Square resulting in 19 people injured. The bus was originally used as a transit vehicle and had been retrofitted as a double-decker open-air tour bus before it was sold to City Sightseeing. The CHP’s investigation found the cause of the crash was driver error, specifically driving at an unsafe speed. Post-crash investigations revealed that City Sightseeing had not notified the CPUC when it added the bus to its fleet, as required by law. The CHP identified other safety violations at the company in a December 2015 terminal inspection.

Ghost buses. The CPUC has regulatory oversight over tour buses that operate as CPCs or PSCs. Simultaneously, tour buses must be registered with the DMV in order to operate on public roads. Under current law, tour bus operators are required to provide a list of all vehicles in operation to CPUC subject to its licensing requirements. However, operators sometimes fail to identify all their vehicles to the CPUC. Additionally the DMV is not required to share registration bus information with the CPUC. Unfortunately, the disconnect between the two agencies leads to “ghost” buses that are not properly licensed with the CPUC and, as a result, these buses also do not undergo required safety inspections by the CHP for CPUC-licensed buses and modified limousines, which can lead to dangerous conditions on California roads.

Scope of the problem. According to the Assembly Committee on Transportation and Housing analysis, based on data from the CPUC and DMV, there are approximately 81,824 buses registered with the DMV, but only approximately 12,600 buses licensed are registered with CPUC. Although CPUC requires carriers to identify their CPC or PSC vehicles during the permitting or licensing process, not all carriers do so. In addition, DMV registers commercial vehicles but they are not required to collect information on which CPC or PSC carrier the commercial vehicle may be operating under, nor share such information with CPUC. By requiring DMV and CPUC to collect and share registration and licensing information, the author intends to ensure that all vehicles operated as CPCs or PSCs are properly accounted for and inspected.

What’s covered? This bill deals with buses and limousines (including modified limousines) used for transportation for-hire licensed as a CPC or PSC by the CPUC. CPCs are chartered vehicles with a driver under a contract for a fixed fee (e.g. party bus or limousine for a wedding). PSCs transport passengers based on an individual fare over a fixed route (e.g. airport shuttle). This bill does not relate to school buses or public transit buses, or transportation network companies, which do not operate a terminal for their vehicle fleet.

Prior/Related Legislation

AB 1677 (Ting, 2016) requires the CHP to develop protocols for the inspection of tour buses by local agencies. The bill is currently on the Senate Floor.

SB 247 (Lara, 2015) requires charter buses to have specified emergency equipment. The bill is currently on the Assembly Floor.

SB 812 (Hill, 2016) imposes additional, performance-based inspection requirements on tour buses operated by PSCs and CPCs. The bill is currently on the Assembly Floor.

FISCAL EFFECT: Appropriation: Fiscal Com.: Local:

According to the Senate Appropriations Committee:

• Up to $1.1 million (Transportation Reimbursement Account) to the CPUC for additional staff and information technology needs.
• $208,587 (Motor Vehicle Account) for the CHP to conduct the required inspections for every 2,500 vehicles.
• One-time costs of $950,000, and $42,000 annually to DMV for programming, form revisions, and increased registrations and transaction processing times.

SUPPORT: (Verified 8/11/16)

Board of Supervisors of the City and County of San Francisco

California Bicycle Coalition

Greater California Livery Association

San Francisco Bicycle Coalition

Walk SF

OPPOSITION: (Verified 8/11/16)

None received

ARGUMENTS IN SUPPORT: According to the author, the current tour bus regulation and inspection program isn’t working. San Franciscans unfortunately got a first-hand view of this in November when an unregistered and uninspected tour bus crashed in Union Square. The bus in the Union Square crash was a so-called “ghost” bus, which means the CPUC, the regulator here, didn’t know it was in the company’s fleet. The incident highlights an unfortunate disconnect in California’s oversight of tour bus safety. This bill is very simple: it requires the DMV to let the CPUC know when a bus is registered. And it requires the CPUC to continuously check with the DMV to see if new buses are registered. It’s about making sure that these large state bureaucracies talk to each other.

ASSEMBLY FLOOR: 79-0, 5/31/16

AYES: Achadjian, Alejo, Travis Allen, Arambula, Atkins, Baker, Bigelow, Bloom, Bonilla, Bonta, Brown, Burke, Calderon, Campos, Chang, Chau, Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly, Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Gray, Grove, Hadley, Harper, Roger Hernández, Holden, Irwin, Jones, Jones-Sawyer, Kim, Lackey, Levine, Linder, Lopez, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin, Nazarian, Obernolte, O'Donnell, Olsen, Patterson, Quirk, Ridley-Thomas, Rodriguez, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber, Wilk, Williams, Wood, Rendon

NO VOTE RECORDED: Brough

Prepared by:

8/15/16 20:26:52

**** END ****

SENATE COMMITTEE ON APPROPRIATIONS

Senator Ricardo Lara, Chair

2015 - 2016 Regular Session

AB 1574 (Chiu) - Vehicles of charter-party carriers of passengers and passenger stage corporations

This bill meets the criteria for referral to the Suspense File.

Bill Summary:

AB 1574 requires, beginning January 1, 2018, the California Public Utilities Commission (CPUC) to verify with the Department of Motor Vehicles (DMV) that the buses, limousines, and modified limousines used by a passenger stage corporation (PSC) or a charter-party carrier (CPC) has been reported and meets safety requirements.

Fiscal Impact:

• Up to $1.1 million (Transportation Reimbursement Account) to the CPUC for additional staff and information technology needs.
• $208,587 (Motor Vehicle Account) for the CHP to conduct the required inspections for every 2,500 vehicles.
• One-time costs of $950,000, and $42,000 annually to DMV for programming, form revisions, and increased registrations and transaction processing times.

Background:

On November 13, 2015, a City Sightseeing bus crashed into construction scaffolding in San Francisco’s Union Square resulting in 19 people injured. The bus was originally used as a transit vehicle and had been retrofitted as a double-decker open-air tour bus before it was sold to City Sightseeing. The CHP’s investigation found that driver error was the cause of the crash, specifically driving at an unsafe speed. Post-crash investigations revealed that City Sightseeing had not notified the CPUC when it added the bus to its fleet, as required by law. The CHP identified other safety violations at the company in a December 2015 terminal inspection.

Ghost buses. The CPUC has regulatory oversight over tour buses that operate as charter-party carriers or passenger stage corporations. Tour buses must also be registered with the DMV in order to operate on public roads. Under current law, tour bus operators are required to provide a list of all vehicles in operation to the CPUC.  However, operators sometimes fail to identify all their vehicles. Additionally, the DMV is not required to share registration bus information with the CPUC. The disconnect between the two agencies leads to “ghost” buses that are not properly licensed with the CPUC and, as a result, do not undergo safety inspections required by the CHP for CPUC-licensed buses.

According to the Assembly Transportation Committee analysis, based on data from the CPUC and DMV, there are approximately 81,824 buses registered with the DMV, but only approximately 12,600 buses licensed are registered with CPUC. Although the CPUC requires carriers to identify their CPC or PSC vehicles during the permitting or licensing process, not all carriers do so. In addition, DMV registers commercial vehicles but they are not required to collect information on which CPC or PSC carrier the commercial vehicle may be operating under, nor share such information with CPUC. By requiring DMV and CPUC to collect and share registration and licensing information, the author intends to ensure that all vehicles operated by CPCs or PSCs are properly accounted for and inspected.

Proposed Law:

This bill requires the CPUC, beginning January 1, 2018, to verify with the DMV that the buses, limousines, and modified limousines used by a PSC or a CPC have been reported and meet safety requirements. Specifically, this bill:

1. Requires CPUC to:
   1. Verify with DMV, on an annual basis, that buses, limousines, and modified limousines used by a PSC or CPC have been reported to the CPUC by the carrier.
   2. Ensure that all newly registered buses, limousines, or modified limousines of PSCs or CPCs reported by DMV meet all statutory and regulatory requirements for safe operation.
   3. When it becomes aware of an unreported vehicle, to require the carrier to update its reporting and request that the CHP to conduct a safety inspection.
2. Requires every PSC and CPC to report annually to the CPUC, in addition to the list of all their buses, limousines, and modified limousines used in transportation for compensation, the vehicle registration information for each vehicle.
3. Prohibits the CPUC from issuing or continuing in effect any permit or certificate of a PSC or CPC that does not submit the vehicle registration information for each vehicle reported.
4. Requires the DMV to notify the CPUC when a CPC or PSC renews or first registers a bus, limousine, or modified limousine, and to provide the CPUC with information that will allow it to identify the vehicle.

Related Legislation:

AB 1677 (Ting, 2016) would require the CHP to develop protocols for the inspection of tour buses by local agencies. The bill is currently in the Senate Appropriations Committee.

Staff Comments:

According to the CPUC, “The California Public Utilities Commission received transportation industry estimates that up to 40,000 buses operate in California. Approximately 12,600 buses are currently registered with CPUC (just under 30% of industry estimate). To register and ensure compliance from the remaining 25,000, the CPUC would need additional staff. No such estimates were provided for limousines (a type of Transportation Charter Party—TCP), but if estimates were similarly high, the CPUC would need additional staff for registration and compliance activities.

The CPUC may be able to stagger implementation to reduce costs or fill some positions on a limited-term basis until a better estimate of the number of unregistered carriers (such as for limousines) is available.”

This bill reflects multi-year Legislative and community-based interest in more risk-based, robust CPUC enforcement—particularly in the area of transportation. To optimize the analytical, compliance, enforcement and litigation opportunities created by enhanced access to DMV data, the CPUC would require five analysts and Information Technology (IT) staff.

Staff notes that the industry estimate may include vehicles that are not subject to this bill. To the extent that other vehicles are included in this estimate, the CPUC’s costs would decrease.

-- END --

SENATE COMMITTEE ON TRANSPORTATION AND HOUSING

Senator Jim Beall, Chair

2015 - 2016 Regular

Bill No: Hearing Date: 6/28/2016

SUBJECT:

DIGEST: This bill requires, beginning January 1, 2018, the California Public Utilities Commission (CPUC) to verify with the Department of Motor Vehicles (DMV) that the buses, limousines, and modified limousines used by a passenger stage corporation (PSC) or a charter-party carrier (CPC) have been reported and meet safety requirements.

ANALYSIS:

Existing law:

1. Defines “passenger stage corporation” (PSC) as corporations or persons engaged as common carriers of passengers, for compensation, over any public highway in the state between fixed termini or over a regular route, as specified.
2. Defines “charter-party carrier of passengers” (CPCs) as persons engaged in the transportation of persons by motor vehicle for compensation over any public highway.
3. Requires that CPCs and PSCs obtain a permit from and register all individual buses with the California Public Utilities Commission (CPUC).
4. Requires the California Highway Patrol (CHP) to regulate the equipment, maintenance, and safe operation of vehicles used by PSCs and CPCs, including tour buses, and to conduct annual terminal inspections on all bus operators to verify that buses are being maintained in accordance with the law.
5. Requires the CHP to conduct annual terminal inspections on all operators of modified limousines beginning January 1, 2017.
6. Requires the CHP to inspect every maintenance facility or terminal of any person who operates any vehicle used by a PSC or CPC without the required inspection having been conducted.
7. Requires PSCs and CPCs to prepare under oath and provide annually to the CPUC and the CHP a list of all vehicles used in transportation for compensation during the preceding year, and requires the CPUC to submit this list to the corporation or carrier’s insurer.
8. Authorizes the CPUC to suspend or revoke, as specified, a PSC’s or CPC’s permit to operate for failing to obtain insurance for a vehicle reported to the CPUC, and authorizes the CHP to recommend that the CPUC suspend or revoke a PSC’s or CPC’s permit to operate if the company fails to maintain vehicles used for transporting passengers in safe operating condition.
9. Establishes a process for revoking a permit to operate.

This bill:

1. Requires the DMV, when issuing or renewing a commercial vehicle registration for any bus, limousine, or modified limousine used by a CPC or PSC, to obtain from the owner of the vehicle the name of the CPC or PSC that will be using the vehicle.
2. Requires the CPUC and the DMV to work together to verify, on an annual basis, that the vehicles used by PSCs and CPCs have been reported to the commission.
3. Requires the DMV to notify the CPUC when a CPC or PSC first registers a bus, limousine, or modified limousine, and to provide the CPUC with information sufficient to identify the vehicle.
4. Requires the CPUC to ensure that newly registered buses, limousines, and modified limousines used by PSCs and CPCs, as reported by the DMV, meet all statutory and regulatory requirements for safe operation.
5. If the CPUC becomes aware that a PSC or CPC has not properly reported a newly registered vehicle, requires the CPUC to immediately take steps to compel the company to update its reporting of vehicles, and to request that the CHP conduct a safety inspection of the unreported vehicle.
6. Requires PSCs and CPCs to include vehicle registration information in the vehicle lists provided to the CPUC under existing law.
7. Provides that the CPUC shall not issue or renew the permit of a PSC or a CPC that has not submitted a list of the vehicles it operates, as specified.
8. Provides that this bill shall take effect January 1, 2018.

COMMENTS:

1. Purpose. According to the author “The current tour bus regulation and inspection program isn’t working. San Franciscans unfortunately got a first-hand view of this in November when an unregistered and uninspected tour bus crashed in Union Square. The bus in the Union Square crash was a so-called ghost bus, which means the CPUC didn’t know it was in the company’s fleet. This bill is very simple: it requires the DMV to let the CPUC know when a bus is registered. And it requires the CPUC to continuously check with the DMV to see if new buses are registered. It’s about making sure that these large state bureaucracies talk to each other. It’s also about accountability — tour buses in California must be safer; we can’t have another crash happen like the one in Union Square. For us to make sure tour buses are safe, we need to know that they’re on the road in the first place. Ensuring full inspections and eliminating ghost buses are important steps we need to take so that tourists and residents do not become victims of regulatory loopholes.”
2. Background: San Francisco tour bus accident. On November 13, 2015, 19 people were injured when a City Sightseeing bus crashed into construction scaffolding in San Francisco’s Union Square. The bus was originally a transit vehicle and had been retrofitted as a double-decker open-air tour bus before it was sold to City Sightseeing. Despite early speculation that the vehicle’s brakes may have failed, on March 23, 2016, the CHP announced that the cause of the crash was driver error. Post-crash investigations revealed that City Sightseeing had not notified the CPUC when it added the bus to its fleet, as required by law, and the CHP identified other safety violations at the company in a December 2015 terminal inspection.
3. What’s covered? This bill deals with vehicles used for transportation by CPCs and PSCs. The former transport passengers traveling under a single contract for a fixed fee, usually based on distance traveled (e.g., charter buses). The latter transport passengers over a fixed route between regular termini (e.g., airporter buses). The bill does not relate to school buses or public transit buses. A bus is defined as a vehicle designed to carry more than 10 people, including the driver. The bill also covers other types of vehicles used by CPCs and PSCs, including limousines and modified limousines. Modified limousines are defined as vehicles that have been altered to extend the distance between the front and rear wheels, thereby allowing them to transport more passengers.
4. Scope of the problem. This bill targets vehicles that are individually registered with the DMV but not the CPUC, even though they are used by CPUC-regulated entities. According to CPUC and DMV, there are approximately 81,824 buses registered with DMV, but only around 12,613 buses reported to the CPUC. Part of this discrepancy is due to other classes of buses — for example, courtesy shuttles — that must register with the DMV but are not regulated by the CPUC. However, neither the CPUC nor the DMV currently collect all the data that would allow them to determine how many of the missing buses are properly registered with the DMV only and how many are “ghost buses” that should also be overseen by the CPUC.
5. Why vehicle registration? While vehicles must be registered with the DMV to operate on California highways, it is much easier for buses and limousines to fly under the radar of the CPUC. This bill requires the DMV to solicit information about the company that a vehicle will be used by as part of the commercial vehicle registration process, which operators cannot avoid. With this data, the DMV can generate a list of registered vehicles associated with each CPC and PSC. This list can then be cross-referenced with the self-reported lists supplied by carriers to the CPUC under existing law. This bill also requires carriers to include vehicle registration information in their self-reported lists, making it possible for the CPUC and DMV to identify exactly which vehicles have been registered but not reported. These new requirements, combined with this bill’s mandate that the CHP and the CPUC work together to identify DMV-registered vehicles that are not registered with the CPUC, close the information gaps in current law that allow vehicles to slip through the cracks.
6. Other ghosts. In addition to the situation described above, there are other ways that a bus or other commercial vehicle used by a PSC or CPC can operate without proper oversight by the CPUC and the CHP. The author is considering amendments to be taken in a later committee to address another common type of ghost bus: Vehicles that are properly registered with the DMV, but which are operated by carriers that are themselves not properly registered with the CPUC. Additional categories of ghost buses are either extremely difficult to identify or comparatively rare.
7. Double-referral. This bill was heard by the Energy, Utilities, and Communications committee on June 13 and passed out on a 11-0 vote.

Related Legislation:

AB 1677 (Ting, 2016) — authorizes the CHP to enter into agreements with local governments to increase terminal inspections. This bill is pending in this committee.

SB 812 (Hill, 2016) — changes existing terminal inspection program administered by the CHP to make it more performance-based. This bill is pending in the Assembly Transportation Committee.

Assembly Votes:

Floor: 79-0

Appr: 20-0

Trans.: 15-0

FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: Yes

POSITIONS: (Communicated to the committee before noon on Wednesday,

June 22, 2016.)

SUPPORT:

California Bicycle Coalition

Greater California Livery Association

San Francisco, City and County of

San Francisco Bicycle Coalition

San Francisco Board of Supervisors

Walk San Francisco

OPPOSITION:

None received

-- END --

SENATE COMMITTEE ON ENERGY, UTILITIES AND COMMUNICATIONS

Senator Ben Hueso, Chair

2015 - 2016 Regular

Bill No: Hearing Date: 6/13/2016

SUBJECT:

DIGEST: This bill requires, beginning January 1, 2018, the California Public Utilities Commission (CPUC) to verify with the Department of Motor Vehicles (DMV) that the buses, limousines, and modified limousines used by a passenger stage corporation (PSC) or a charter-party carrier (CPC) has been reported and meet safety requirements.

ANALYSIS:

Existing law:

1. Establishes the CPUC and empowers it to regulate privately owned public utilities and common carriers in California. (Article XII of the California Constitution; Public Utilities Code §301 et seq.)
2. Defines passenger stage corporation as every 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 fixed termini or over a regular route, not including those exclusively operating within a local jurisdiction or school buses. Establishes the CPUC’s authority to regulate, require license or permit to operate, require vehicles used are in safe operating condition, require insurance and workers compensation, take appropriate enforcement action and other provisions related to passenger stage corporations. (Public Utilities Code §§226 and 1031 et seq.)
3. 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 and includes any person, corporation, or other entity engaged in the provision of a hired driver service when a rented motor vehicle is being operated by a hired driver. Establishes the CPUC’s authority to regulate, require license or permit to operate, require insurance and workers compensation, require vehicles are in safe operating condition, take appropriate enforcement action and other provisions related to charter-party carrier of passengers. (Public Utilities Code §5351)
4. Establishes the CPUC’s authority to regulate private carriers of passengers including requiring public liability and property insurance, cargo insurance, knowledge of rates, documentation, timely reporting of revenues and payment fees, and provides that the CPUC can take appropriate enforcement action, etc. (Public Utilities Code §4001)
5. Provides the CHP with the ability to take enforcement action related to requirements of buses of charter-party carriers as required by the Public Utilities Code, including ensuring a proper and current license or permit from the CPUC. (Vehicle Code §14602.9)
6. Provides that the DMV shall regulate the safe operation of buses, including tour buses, and establish regulations regarding equipment and operations. (Vehicle Code §34500 et seq.)

This bill:

1. Requires CPUC to verify with DMV, on an annual basis, that buses, limousines, and modified limousines used by a PSC or CPC have been reported to CPUC by the carrier.
2. Requires CPUC to ensure that all newly registered buses, limousines, or modified limousines of PSCs or CPCs, reported by DMV, meet all statutory and regulatory requirements for safe operation.
3. Requires CPUC to take immediate steps to require the PSC or CPC to update its reporting of buses, limousines, and modified limousines to CPUC and request the Department of the California Highway Patrol (CHP) to conduct a safety inspection of the bus, limousine, or modified limousine, if CPUC become aware that the vehicle has not been reported by the carrier.
4. Requires every PSC and CPC to report annually to CPUC, in addition to the list of all buses, limousines, and modified limousines used in transportation for compensation by each PSC and CPC, the vehicle registration information for each vehicle.
5. Prohibits CPUC from issuing or continuing in effect any permit or certificate of a PSC or CPC that does not submit the vehicle registration information for each vehicle reported to CPUC.
6. Requires the DMV to notify the CPUC when a CPC or PSC renews or first registers a bus, limousine, or modified limousine, and provide the CPUC with information that will allow it to identify the vehicle.
7. Provides that the bill take effect on January 1, 2018.

Background

On November 13, 2015, a City Sightseeing bus crashed into construction scaffolding in San Francisco’s Union Square resulting in 19 people injured. The bus was originally used as a transit vehicle and had been retrofitted as a double-decker open-air tour bus before it was sold to City Sightseeing. The CHP’s investigation found the cause of the crash was driver error, specifically driving at an unsafe speed. Post-crash investigations revealed that City Sightseeing had not notified the CPUC when it added the bus to its fleet, as required by law. The CHP identified other safety violations at the company in a December 2015 terminal inspection.

Ghost buses. The CPUC has regulatory oversight over tour buses that operate as charter-party carriers or passenger stage corporations. Simultaneously, tour buses must be registered with the DMV in order to operate on public roads. Under current law, tour bus operators are required to provide a list of all vehicles in operation to CPUC subject to its licensing requirements.  However, operators sometimes fail to identify all their vehicles to the CPUC. Additionally the DMV is not required to share registration bus information with the CPUC. Unfortunately, the disconnect between the two agencies leads to “ghost” buses that are not properly licensed with the CPUC and, as a result, these buses also do not undergo safety inspections required by the CHP for CPUC-licensed buses, which can lead to dangerous conditions on California roads. According to the Assembly Transportation Committee analysis, based on data from the CPUC and DMV, there are approximately 81,824 buses registered with the DMV, but only approximately 12,600 buses licensed are registered with CPUC. Although CPUC requires carriers to identify their CPC or PSC vehicles during the permitting or licensing process, not all carriers do so. In addition, DMV registers commercial vehicles but they are not required to collect information on which CPC or PSC carrier the commercial vehicle may be operating under, nor share such information with CPUC. By requiring DMV and CPUC to collect and share registration and licensing information, the author intends to ensure that all vehicles operated by CPCs or PSCs are properly accounted for and inspected.

Double Referral. Should this bill be approved by the committee, it will be re-referred to the Senate Committee on Transportation and Housing for its consideration.

Prior/Related Legislation

AB 1677 (Ting, 2016) would require the CHP to develop protocols for the inspection of tour buses by local agencies. The bill is currently in the Senate Committee on Transportation and Housing.

SB 247 (Lara, 2015) would require charter buses to have specified emergency equipment by July 1, 2017, including a secondary exit door, burn resistant materials, event data recorder, and others. The bill also would require charter bus drivers to instruct passengers of locations and operations of emergency exits and the use of seat belts prior to the beginning of a trip and provide these instructions in writing. The bill is currently in the Assembly Committee on Transportation.

SB 812 (Hill, 2016) would make multiple changes to the CHP’s authority to inspect tour buses, with the goal of increasing regulatory scrutiny of operators with poor safety records. The bill is currently in the Assembly Committee on Transportation.

FISCAL EFFECT: Appropriation: Fiscal Com.: Local:

SUPPORT:

Board of Supervisors of the City and County of San Francisco

California Bicycle Coalition

Greater California Livery Association

San Francisco Bicycle Coalition

Walk SF

OPPOSITION:

None received

ARGUMENTS IN SUPPORT: According to the author, the current tour bus regulation and inspection program isn’t working. San Franciscans unfortunately got a first-hand view of this in November when an unregistered and uninspected tour bus crashed in Union Square. The bus in the Union Square crash was a so-called “ghost” bus, which means the CPUC, the regulator here, didn’t know it was in the company’s fleet. The incident highlights an unfortunate disconnect in California’s oversight of tour bus safety. This bill is very simple: it requires the DMV to let the CPUC know when a bus is registered. And it requires the CPUC to continuously check with the DMV to see if new buses are registered. It’s about making sure that these large state bureaucracies talk to each other.

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ASSEMBLY THIRD READING

ATR Bill Id:AB 1574

Author:(Chiu)

As Amended Ver:April 12, 2016

Majority vote

SUMMARY: Requires, beginning January 1, 2018, the California Public Utilities Commission (CPUC), in collaboration with the Department of Motor Vehicles (DMV), to verify that the buses, limousines, and modified limousines used by a passenger stage corporation (PSC) or a charter-party carrier (CPC) have been reported and meets safety requirements. Specifically, this bill:

1. Requires the CPUC to verify on an annual basis, in collaboration with DMV, that the buses, limousines, and modified limousines used by a PSC or CPC have been reported to the CPUC by the carrier.
2. Requires the CPUC to ensure that all newly registered buses, limousines, or modified limousines of PSCs or CPCs, reported by DMV, meet all statutory and regulatory requirements for safe operation.
3. Requires CPUC to take immediate steps to require the PSC or CPC to update its reporting of buses, limousines, and modified limousines to CPUC and request the Department of the California Highway Patrol (CHP) to conduct a safety inspection of the bus, limousine, or modified limousine, if CPUC become aware that the vehicle has not been reported by the carrier.
4. Requires each CPC to furnish annually to the CHP and CPUC a list of all buses, limousines and modified limousines used in the transportation for compensation, including the vehicle registration information for each vehicle.
5. Requires the CPUC to furnish a copy of the specified list to the carrier's insurer, if the carrier's accident liability protection is provide by a policy of insurance.
6. Authorizes the CPUC, in addition to any other specified penalties, for a first occurrence, to suspend the carrier's certificate or permit or impose a fine, or both, and for a subsequent occurrence may suspend or revoke the certificate or impose a fine, or both, if the CPC's insurer informs the CPUC that the carrier has failed to obtain insurance coverage for any vehicle reported on the specified list.
7. Prohibits the CPUC from issuing or continuing in effect any permit or certificate of a PSC or CPC that has not submitted the required list.
8. Requires the DMV, in issuing or renewing a commercial vehicle registration, to require the owner of a bus, limousine, or modified limousine used by a CPC or PSC to disclose the name of the carrier or corporation that will be using the vehicle in its operations.
9. Requires the DMV to notify the CPUC when a CPC or PSC renews or first registers a bus, limousine, or modified limousine, and provide the CPUC with information that will allow it to identify the vehicle.
10. Provides that the bill take effect on January 1, 2018.

FISCAL EFFECT: According to the Assembly Appropriations Committee, the total costs to the CPUC would be several hundred thousand dollars annually, but will depend on the amount of additional workload. In addition, the CHP will incur an estimated cost of about $200,000 for every additional 2,500 vehicle inspections. Furthermore, the DMV will incur a one-time special fund cost of around $225,000 to establish four new body-type codes, in order to distinguish auto or commercial vehicles used by a PSC or CPC.

COMMENTS:

1. Author's Statement: "The current tour bus regulation and inspection program isn't working. San Franciscans unfortunately got a first-hand view of this in November when an unregistered and uninspected tour bus crashed in Union Square. The bus in the Union Square crash was a so-called ghost bus, which means the CPUC, the regulator here, didn't know it was in the company's fleet […] Tour buses in California must be safer; we can't have another crash happen like the one in Union Square. For us to make sure tour buses are safe, we need to know that they're on the road in the first place. Ensuring full inspections and eliminating ghost buses are important steps we need to take so that tourists and residents do not become victims of regulatory loopholes."
2. Background: PSCs are services that provide transportation to the general public on an individual fare basis, such as scheduled bus operators, which are buses that operate on a fixed route and scheduled services, or airport shuttles, which operate on an on-call door-to-door share the ride service. CPCs are services that charter a vehicle, on a prearranged basis, for the exclusive use of an individual or group. Charges are based on the mileage or time of use, or a combination of both. Types of CPCs include limousines, tour buses, sightseeing services, and charter and party buses.
3. San Francisco Tour Bus Crash: In November 2015, a sightseeing tour bus operated by City Sightseeing crashed in San Francisco's Union Square, injuring 20 people. According to news reports, the bus was registered with the DMV, but it was not registered with the CPUC, hence, the bus was not inspected by CHP before it went into operation.
4. CPUC and DMV Discrepancies: Although the CPUC requires carriers to identify their CPC or PSC vehicles during the permitting or licensing process, according to the author not all carriers do so. In addition, the DMV registers commercial vehicles but they are not required to collect information on which CPC or PSC carrier the commercial vehicle may be operating under, nor share such information with the CPUC. According to the author this creates the number discrepancy between the CPUC and DMV.

This bill requires, beginning January 1, 2018, the CPUC, in collaboration with the DMV, to verify that the buses, limousines, and modified limousines used by a PSC or a CPC has been reported and meet safety requirements.

Analysis Prepared by: Edmond Cheung / U. & C. / (916) 319-2083 FN: 0003247

ASSEMBLY THIRD READING

ATR Bill Id:AB 1574

Author:(Chiu)

As Amended Ver:April 12, 2016

Majority vote

SUMMARY: Requires, beginning January 1, 2018, the California Public Utilities Commission (CPUC), in collaboration with the Department of Motor Vehicles (DMV), to verify that the buses, limousines, and modified limousines used by a passenger stage corporation (PSC) or a charter-party carrier (CPC) have been reported and meets safety requirements. Specifically, this bill:

1. Requires the CPUC to verify on an annual basis, in collaboration with DMV, that the buses, limousines, and modified limousines used by a PSC or CPC have been reported to the CPUC by the carrier.
2. Requires the CPUC to ensure that all newly registered buses, limousines, or modified limousines of PSCs or CPCs, reported by DMV, meet all statutory and regulatory requirements for safe operation.
3. Requires CPUC to take immediate steps to require the PSC or CPC to update its reporting of buses, limousines, and modified limousines to CPUC and request the Department of the California Highway Patrol (CHP) to conduct a safety inspection of the bus, limousine, or modified limousine, if CPUC become aware that the vehicle has not been reported by the carrier.
4. Requires each CPC to furnish annually to the CHP and CPUC a list of all buses, limousines and modified limousines used in the transportation for compensation, including the vehicle registration information for each vehicle.
5. Requires the CPUC to furnish a copy of the specified list to the carrier's insurer, if the carrier's accident liability protection is provide by a policy of insurance.
6. Authorizes the CPUC, in addition to any other specified penalties, for a first occurrence, to suspend the carrier's certificate or permit or impose a fine, or both, and for a subsequent occurrence may suspend or revoke the certificate or impose a fine, or both, if the CPC's insurer informs the CPUC that the carrier has failed to obtain insurance coverage for any vehicle reported on the specified list.
7. Prohibits the CPUC from issuing or continuing in effect any permit or certificate of a PSC or CPC that has not submitted the required list.
8. Requires the DMV, in issuing or renewing a commercial vehicle registration, to require the owner of a bus, limousine, or modified limousine used by a CPC or PSC to disclose the name of the carrier or corporation that will be using the vehicle in its operations.
9. Requires the DMV to notify the CPUC when a CPC or PSC renews or first registers a bus, limousine, or modified limousine, and provide the CPUC with information that will allow it to identify the vehicle.
10. Provides that the bill take effect on January 1, 2018.

FISCAL EFFECT: According to the Assembly Appropriations Committee, the total costs to the CPUC would be several hundred thousand dollars annually, but will depend on the amount of additional workload. In addition, the CHP will incur an estimated cost of about $200,000 for every additional 2,500 vehicle inspections. Furthermore, the DMV will incur a one-time special fund cost of around $225,000 to establish four new body-type codes, in order to distinguish auto or commercial vehicles used by a PSC or CPC.

COMMENTS:

1. Author's Statement: "The current tour bus regulation and inspection program isn't working. San Franciscans unfortunately got a first-hand view of this in November when an unregistered and uninspected tour bus crashed in Union Square. The bus in the Union Square crash was a so-called ghost bus, which means the CPUC, the regulator here, didn't know it was in the company's fleet […] Tour buses in California must be safer; we can't have another crash happen like the one in Union Square. For us to make sure tour buses are safe, we need to know that they're on the road in the first place. Ensuring full inspections and eliminating ghost buses are important steps we need to take so that tourists and residents do not become victims of regulatory loopholes."
2. Background: PSCs are services that provide transportation to the general public on an individual fare basis, such as scheduled bus operators, which are buses that operate on a fixed route and scheduled services, or airport shuttles, which operate on an on-call door-to-door share the ride service. CPCs are services that charter a vehicle, on a prearranged basis, for the exclusive use of an individual or group. Charges are based on the mileage or time of use, or a combination of both. Types of CPCs include limousines, tour buses, sightseeing services, and charter and party buses.
3. San Francisco Tour Bus Crash: In November 2015, a sightseeing tour bus operated by City Sightseeing crashed in San Francisco's Union Square, injuring 20 people. According to news reports, the bus was registered with the DMV, but it was not registered with the CPUC, hence, the bus was not inspected by CHP before it went into operation.
4. CPUC and DMV Discrepancies: Although the CPUC requires carriers to identify their CPC or PSC vehicles during the permitting or licensing process, according to the author not all carriers do so. In addition, the DMV registers commercial vehicles but they are not required to collect information on which CPC or PSC carrier the commercial vehicle may be operating under, nor share such information with the CPUC. According to the author this creates the number discrepancy between the CPUC and DMV.

This bill requires, beginning January 1, 2018, the CPUC, in collaboration with the DMV, to verify that the buses, limousines, and modified limousines used by a PSC or a CPC has been reported and meet safety requirements.

Analysis Prepared by: Edmond Cheung / U. & C. / (916) 319-2083 FN: 0003247

Date of Hearing: May 4, 2016

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Lorena Gonzalez, Chair

ABPCA Bill Id:AB 1574

Author:(Chiu) – As Amended Ver:April 12, 2016

Urgency: No State Mandated Local Program: Yes Reimbursable: No

SUMMARY:

This bill requires the Public Utilities Commission (PUC), beginning January 1, 2018, to verify with the DMV that the buses, limousines, and modified limousines used by a passenger stage corporation (PSC) or a charter-party carrier (CPC) have been reported and meet safety requirements. Specifically, this bill:

1. Requires PUC to:
   1. Verify with DMV, on an annual basis, that buses, limousines, and modified limousines used by a PSC or CPC have been reported to the PUC by the carrier.
   2. Ensure that all newly registered buses, limousines, or modified limousines of PSCs or CPCs, and reported by DMV, meet all statutory and regulatory requirements for safe operation.
   3. Take immediate steps, when it becomes aware of a new such vehicle not reported to the commission, to require the carrier to update its reporting of buses, limousines, and modified limousines to the PUC and request the CHP to conduct a safety inspection of the vehicle.
2. Requires every PSC and CPC to report annually to the PUC, in addition to the list of all their buses, limousines, and modified limousines used in transportation for compensation, the vehicle registration information for each vehicle.
3. Prohibits the PUC from issuing or continuing in effect any permit or certificate of a PSC or CPC that does not submit the vehicle registration information for each vehicle reported to the commission.
4. Requires the DMV to notify the PUC when a CPC or PSC renews or first registers a bus, limousine, or modified limousine, and to provide the PUC with information that will allow it to identify the vehicle.

FISCAL EFFECT:

1. It is unknown how many additional buses and limousines not currently reported to the PUC will come under the commission's purview due to the receipt of registration information from the DMV. The commission estimates this number could be up to 25,000 vehicles. The DMV notes that it would be reliant on carriers to self-report to the department, thus adding uncertainty to any estimate. Nevertheless, the PUC would need additional staff regarding increased vehicle registrations and new permit applications from CPCs and PSCs, with the attendant additional regulatory activity associated with the additional registrations, plus one-time and ongoing information technology support costs. Total costs to the commission would be several hundred thousand dollars annually, but again, will depend on the amount of additional workload. [Transportation Reimbursement Account]
2. The CHP will incur costs for inspections of additional CPC/PSC vehicles identified through this bill. Estimated costs are about $200,000 for every additional 2,500 vehicle inspections. [Motor Vehicle Account]
3. The DMV will incur one-time special fund cost of around $225,000 to establish four new body-type codes, in order to distinguish auto or commercial vehicles used by a PSC or CPC. [Motor Vehicle Account]

COMMENTS:

1. Background. PSCs provide transportation to the general public on an individual fare basis, such as scheduled bus operators, which are buses that operate on a fixed route and scheduled services, or airport shuttles, which operate on an on-call door-to-door share the ride service.

CPCs are a charter vehicle, on a pre-arranged basis, for the exclusive use of an individual or group. Charges are based on the mileage or time of use, or a combination of both. The PUC does not regulate the fees charged by CPCs. Types of CPCs include limousines, tour buses, sightseeing services, and charter and party buses.

1. Purpose. The author introduced this bill in response to a tour bus crash in San Francisco in November 2015 that injured 20 people. According to the author, although the bus was registered with the DMV, it was not registered with the PUC, and therefore the bus was not inspected by CHP before it went into operation. The author states that, “Ensuring full inspections and eliminating ghost buses are important steps we need to take so that tourists and residents do not become victims of regulatory loopholes.” By requiring DMV and CPUC to collect and share identifying information, the author intends to ensure that all vehicles operated by CPCs or PSCs are properly accounted for and inspected.
2. Related Legislation. AB 1677 (Ting), pending in this committee, requires the CHP to develop protocols for the inspection of tour buses by local agencies.

Analysis Prepared by: Chuck Nicol / APPR. / (916) 319-2081

Date of Hearing: April 18, 2016

ASSEMBLY COMMITTEE ON TRANSPORTATION

Jim Frazier, Chair

ABPCA Bill Id:AB 1574 (

Author:Chiu) – As Amended Ver:April 12, 2016

SUBJECT: Vehicles of charter-party carriers of passengers and passenger stage corporations

SUMMARY: Requires, beginning January 1, 2018, the California Public Utilities Commission (CPUC) to verify with the Department of Motor Vehicles (DMV) that the buses, limousines, and modified limousines used by a passenger stage corporation (PSC) or a charter-party carrier (CPC) has been reported and meet safety requirements. Specifically, this bill:

1. Requires CPUC to verify with DMV, on an annual basis, that buses, limousines, and modified limousines used by a PSC or CPC have been reported to CPUC by the carrier.
2. Requires CPUC to ensure that all newly registered buses, limousines, or modified limousines of PSCs or CPCs, reported by DMV, meet all statutory and regulatory requirements for safe operation.
3. Requires CPUC to take immediate steps to require the PSC or CPC to update its reporting of buses, limousines, and modified limousines to CPUC and request the Department of the California Highway Patrol (CHP) to conduct a safety inspection of the bus, limousine, or modified limousine, if CPUC become aware that the vehicle has not been reported by the carrier.
4. Requires every PSC and CPC to report annually to CPUC, in addition to the list of all buses, limousines, and modified limousines used in transportation for compensation by each PSC and CPC, the vehicle registration information for each vehicle.
5. Prohibits CPUC from issuing or continuing in effect any permit or certificate of a PSC or CPC that does not submit the vehicle registration information for each vehicle reported to CPUC.
6. Requires the DMV to notify the CPUC when a CPC or PSC renews or first registers a bus, limousine, or modified limousine, and provide the CPUC with information that will allow it to identify the vehicle.
7. Provides that the bill take effect on January 1, 2018.

EXISTING LAW:

1. Defines “passenger stage corporation” PSC 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.
2. Defines “charter-party carrier of passengers” CPC as a person engaged in the transportation of persons by motor vehicle for compensation over any public highway.
3. Establishes the “Passenger Charter-Party Carriers Act,” which directs the CPUC to issue permits or certificates to charter-party carriers, investigate complaints against carriers, and cancel, revoke, or suspend permits and certificates for specific violations.
4. Requires CHP to regulate the equipment, maintenance, and safe operation of vehicles used by a PSC or CPC.
5. Requires CHP to inspect every maintenance facility or terminal of any person who operates any vehicle used by a PSC or CPC without this inspection having been conducted.
6. Requires every PSC and CPC to report annually to CPUC a list of all buses, limousines, and modified limousines used in transportation for compensation by each PSC and CPC.
7. Prohibits CPUC from issuing or continuing in effect any permit, certificate, or authority of a PSC that has not submitted fees required for inspection by CHP, as required.
8. Authorizes CPUC to suspend a PSC or CPC’s certificate or permit, or impose a fine, or both upon a first instance of a PSC or CPC failing to obtain insurance for each vehicle it reports to CPUC, and authorizes CPUC to suspend or revoke the certificate, or impose a fine, or both upon a subsequent instance.

FISCAL EFFECT: Unknown

COMMENTS: California law regulates different modes of passenger transportation for compensation including taxi services, which are regulated by cities and/or counties; and PSCs and CPCs, which are regulated by CPUC. PSCs provide transportation to the general public on an individual fare basis, such as scheduled bus operators, which are buses that operate on a fixed route and scheduled services, or airport shuttles, which operate on an on-call door-to-door share the ride service.

CPCs are a charter vehicle, on a pre-arranged basis, for the exclusive use of an individual or group. Charges are based on the mileage or time of use, or a combination of both. CPUC does not regulate the fees charged by CPCs. Types of CPCs include limousines, tour buses, sightseeing services, and charter and party buses.

AB 1574 would require DMV to notify CPUC when a CPC or PSC first registers a bus, limousine, or modified limousine, and provide CPUC with information to identify the vehicle. This bill also requires CPUC, on a continuous basis, to verify with DMV that the buses, limousines, and modified limousines used by CPCs and PSCs have been reported to CPUC.

The author introduced this bill in response to a tour bus crash in San Francisco in November 2015 that injured 20 people. According to the author, although the bus was registered with the DMV, it was not registered with the CPUC, and therefore the bus was not inspected by CHP before it went into operation. The author states that, “Ensuring full inspections and eliminating ghost buses are important steps we need to take so that tourists and residents do not become victims of regulatory loopholes.” Although the investigation into the cause of the accident is still pending, a CHP audit report released in December 2015, found multiple violations and failures on the bus operator, many mechanical in nature.

According to CPUC and DMV, there are approximately 81,824 buses registered with DMV, but only approximately 12,613 buses registered with CPUC. Although CPUC requires carriers to identify their CPC or PSC vehicles during the permitting or licensing process, according to the author not all carriers do so. In addition, DMV registers commercial vehicles but they are not required to collect information on which CPC or PSC carrier the commercial vehicle may be operating under, nor share such information with CPUC. According to the author this creates the number discrepancy between CPUC and DMV.

By requiring DMV and CPUC to collect and share identifying information, the author intends to ensure that all vehicles operated by CPCs or PSCs are properly accounted for and inspected.

Double referral: This bill passed out of the Assembly Utilities and Commerce Committee on March 30, 2016, with a 13-0 vote.

Related legislation: AB 1677 (Ting), requires CHP to develop protocols for the inspection of tour buses by local agencies. AB 1677 is scheduled to be heard by this committee on April 18, 2016.

SB 812 (Hill), requires CHP to develop inspection fees for CPCs and requires CPCs or PSCs to schedule CHP inspections, as specified. SB 812 is scheduled to be heard by the Senate Energy, Utilities and Communications Committee on April 19, 2016.

Previous legislation: SB 541 (Hill), Chapter 718, Statutes of 2015, codified the State Auditor report’s recommendation on strengthening CPUC’s oversight of transportation-related activities of household good carrier and CPCs.

SB 611 (Hill), Chapter 860, Statutes of 2014, required all modified limousines, as defined, to be equipped with two fire extinguishers and required CHP to develop and implement an inspection program for modified limousines, as specified.

REGISTERED SUPPORT / OPPOSITION:

Support

California Bicycle Coalition

San Francisco Board of Supervisors

Walk San Francisco

Opposition

None on file

Analysis Prepared by: Justin Behrens / TRANS. / (916) 319-2093

Date of Hearing: March 30, 2016

ASSEMBLY COMMITTEE ON UTILITIES AND COMMERCE

Mike Gatto, Chair

ABPCA Bill Id:AB 1574 (

Author:Chiu) – As Introduced Ver:January 4, 2016

SUBJECT: Vehicles of charter-party carriers of passengers and passenger stage corporations

SUMMARY: Requires the California Public Utilities Commission (CPUC) to verify with the Department of Motor Vehicles (DMV) that the buses, limousines, and modified limousines used by a passenger stage corporation (PSC) or a charter-party carrier (CPC) has been reported and meet safety requirements. Specifically, this bill:

1. Requires the CPUC to verify with the DMV, on a continuous basis, that buses, limousines, and modified limousines used by a PSC or CPC have been reported to the CPUC by the carrier.
2. Requires the CPUC to ensure that all newly registered buses, limousines, or modified limousines of PSCs or CPCs, reported by the DMV, meet all statutory and regulatory requirements for safe operation.
3. Requires the CPUC to take immediate steps to require the PSC or CPC to update its reporting of buses, limousines, and modified limousines to the CPUC and request the California Highway Patrol (CHP) to conduct a safety inspection of the bus, limousine, or modified limousine, if the CPUC become aware that the vehicle has not been reported by the carrier.
4. Prohibits a PSC or CPC from transporting passengers on a bus, limousine, or modified limousine, without securing a satisfactory rating from the CHP.
5. Authorizes a law enforcement agency from impounding a bus, limousine, or modified limousine of a PSC or CPC that is operating without a satisfactory rating from the CHP.
6. Authorizes the CPUC to impose a penalty and revoke the operating certificate or permit of a PSC or CPC found to be operating a bus, limousine, or modified limousine without a satisfactory rating from the CHP.
7. Requires the DMV to notify the CPUC when a CPC or PSC first registers a bus, limousine, or modified limousine, and provide the CPUC with information that will allow it to identify the vehicle.

EXISTING LAW:

1. Establishes the "Passenger Charter-Party Carriers Act," which directs the CPUC to issue permits or certificates to CPCs, investigate complaints against carriers, and cancel, revoke, or suspend permits and certificates for specific violations. (Public Utilities Code Section 5381 et seq.)
2. Authorizes the CPUC to regulate PSCs, through the issuance of a certificate, require insurance and workers compensation, and take appropriate enforcement actions and other provisions, as specified. (Public Utilities Code Sections 1031 to 1045)
3. Defines "charter party carriers of passengers" as every person engaged in the transportation of person by motor vehicle for compensation, whether in common or contract carriage, over any public highway in the state. (Public Utilities Code Section 5360)
4. Defines a "passenger stage corporation" to include every corporation or person engaged as a common carrier, for compensation, in the ownership, control, operation, or management of a passenger stage over a public highway in this state between fixed termini or over a regular route, as specified. (Public Utilities Code Section 226)
5. Authorizes the CPUC to regulate private carriers of passengers, including requiring public liability and property insurance, cargo insurance, knowledge of rates, documentation, timely reporting of revenues and payment fees, and take appropriate enforcement actions and other provisions, as specified. (Public Utilities Code Sections 4000 to 4022)
6. Defines a "commercial vehicle," as a motor vehicle of a type required to be registered under the vehicle code that is used or maintained for the transportation of persons for hire, compensation, or profit or designed, used, or maintained primarily for the transportation of property. (Vehicle Code Section 260)
7. Authorizes a CHP officer to impound a CPC's vehicle for 30 days if the officer determines that a violation occurred while the bus driver was operating the CPC, as specified. (Vehicle Code Section 14602.9)

FISCAL EFFECT: Unknown.

COMMENTS:

1. Author's Statement: "The current tour bus regulation and inspection program isn't working. San Franciscans unfortunately got a first-hand view of this in November when an unregistered and uninspected tour bus crashed in Union Square. The bus in the Union Square crash was a so-called ghost bus, which means the CPUC, the regulator here, didn't know it was in the company's fleet […] Tour buses in California must be safer; we can't have another crash happen like the one in Union Square. For us to make sure tour buses are safe, we need to know that they're on the road in the first place. Ensuring full inspections and eliminating ghost buses are important steps we need to take so that tourists and residents do not become victims of regulatory loopholes."
2. Background: California law regulates different modes of passenger transportation for compensation including taxi services, which are regulated by cities and/or counties; and PSCs and CPCs, which are regulated by the CPUC. PSCs are services that provide transportation to the general public on an individual fare basis, such as scheduled bus operators, which are buses that operate on a fixed route and scheduled services, or airport shuttles, which operate on an on-call door-to-door share the ride service.

CPCs are services that charter a vehicle, on a prearranged basis, for the exclusive use of an individual or group. Charges are based on the mileage or time of use, or a combination of both. The CPUC does not regulate the fees charged by CPCs. Types of CPCs include limousines, tour buses, sightseeing services, and charter and party buses.

1. CPC Permits: The CPUC authorizes six types of certificates and permits for CPCs: Class A certificates allow charter service between any point in the state, such as roundtrip sightseeing service; Class B certificates allow charter service between any point within a 125 miles of the carrier's home terminal; Class C certificates are for transportation services that apply to commercial balloon operations, and commercial river rafting or skiing; Class P permits are restricted to vehicles under 15 passengers; Class S permits are for round trip sightseeing; and Class Z permits are for specialized transportation services not offered to the general public.

The CPUC requires CPCs to meet a number of requirements until an operating permit or certificate is issued. These requirements include providing sufficient proof of financial responsibility, maintaining a preventative maintenance program for all vehicles, possessing a safety education and training program, and regularly checking the driving records of all persons operating vehicles used in transportation for compensation.

1. DMV Commercial Vehicles: While the CPUC regulates passenger carriers, the DMV is responsible for motor vehicle registrations. According to the DMV, a commercial vehicle is a type of vehicle that is: 1) used or maintained for the transportation of persons for hire, compensation, or profit, or 2) designed, used or maintained primarily for the transportation of property. Examples of commercial vehicles include, buses designed to carry more than 10 persons, when used to transport person for hire, compensation, or profit, for hire passenger vehicles such as taxi’s, rental limousines, or ambulances, and pickup trucks that meet certain weight and vehicle specifications.
2. San Francisco Tour Bus Crash: In November 2015, a sightseeing tour bus operated by City Sightseeing crashed in San Francisco's Union Square, injuring 20 people. According to news reports, the bus was registered with the DMV, but it was not registered with the CPUC, hence, the bus was not inspected by CHP before it went into operation. Although the investigation into the cause of the accident is still pending, a CHP audit report released in December 2015, found multiple violations and failures on City Sightseeing, many mechanical in nature.
3. CPUC and DMV Discrepancies: According to the CPUC and DMV, there are approximately 81,824 registered buses under the DMV, but only approximately 12,613 buses registered with the CPUC. Although the CPUC requires carriers to identify their CPC or PSC vehicles during the permitting or licensing process, according to the author not all carriers do so. In addition, the DMV registers commercial vehicles but they are not required to collect information on which CPC or PSC carrier the commercial vehicle may be operating under, nor share such information with the CPUC. According to the author this creates the number discrepancy between the CPUC and DMV.

This bill requires the DMV to notify the CPUC when a CPC or PSC first registers a bus, limousine, or modified limousine, and provide the CPUC with information to identify the vehicle. This bill also requires the CPUC, on a continuous basis, to verify with the DMV that the buses, limousines, and modified limousines used by CPCs and PSCs have been reported to the CPUC.

The author may wish to consider an amendment to require CPC and PSC operators to provide the CPUC with the vehicle registration information of a vehicle used by the carrier, and provide the DMV with the name of the CPC or PSC that are operating the vehicles.

The author may also wish to consider an amendment to require the CPUC to collaborate with the DMV annually, to verify that the buses, limousines, and modified limousines have been properly reported to the CPUC.

1. CHP Inspections: Currently, the CPUC requires operators of buses (a vehicle seating 11 or more, including the driver) to undergo and pass a CHP inspection before a permit or license is issued. In 2014, the Legislature passed SB 611 (Hill), Chapter 860, Statute of 2014, which requires CHP to also develop an inspection program for modified limousines. Limousines are not required to undergo a CHP inspection.

This bill requires the CPUC, if it becomes aware, of a newly registered bus, limousine, or modified limousine that has not been reported, to take immediate steps to require the CPC or PSC to update it's reporting of buses, limousines, and modified limousines to the CPUC, and to request the CHP to conduct a safety inspection of the vehicle. This bill prohibits a CPC or PSC from transporting passengers without securing a satisfactory rating from the CHP. A bus, limousine, or modified limousine may be impounded, and the CPUC may impose penalties, including the suspension or revoking the operating certificate or license, if the CPC or PSC is found to be operating a newly registered bus, limousine or modified limousine without passing a CHP inspection.

It is unclear what the impact of the bill will be on the CHP or CPC and PSC operators, if CHP is unable to inspect all newly registered buses, limousines or modified limousines in a timely manner, and CPCs and PSCs are forced to leave their vehicles idle until they receive the CHP inspection. This bill is double referred to the Assembly Transportation Committee.

1. Arguments in Support: According to the California Bicycle Coalition, "The current tour bus regulation and inspection program is not working […] The CPUC reported recently that 12,613 buses are registered with them, but estimates indicate that around 30,000 buses are operating across the state. We need to be sure that tour buses in California are registered and safe; we can't have another crash happen like the one in Union Square."
2. Suggested Amendments:

Add the following sections to the Public Utilities Code (PUC):

PUC Section --- : The commission shall, in issuing a certificate or permit, require a passenger stage corporation to provide the commission with vehicle registration information of all buses, limousines, and modified limousines used by the carrier.

PUC Section --- : Upon a request of the commission, a passenger stage corporation shall provide the commission with vehicle registration information of a vehicle used by the carrier.

PUC Section --- : The commission shall, in issuing a certificate or permit, require a charter party carrier to provide the commission with vehicle registration information of all buses, limousines, and modified limousines used by the carrier.

PUC Section --- : Upon a request of the commission, a charter party carrier shall provide the commission with vehicle registration information of a vehicle used by the carrier.

Add the following section to the Vehicle Code:

Vehicle Code Section --- : The department shall, in issuing a commercial vehicle registration, require the owner of a vehicle used by a charter party carrier or a passenger stage corporation, to disclose the name of the carrier or corporation that are operating the vehicles.

Amend Section 1042.2 (a) and Section 5374.4 (a) as follows:

1042.2. (a) The commission in collaboration with the Department of Motor Vehicles shall, on an continuous annual basis, verify with the Department of Motor Vehicles that the buses, limousines, and modified limousines used by a passenger stage corporation have been reported to the commission by the carrier.

5374.4. (a) The commission in collaboration with the Department of Motor Vehicles shall, on an continuous annual basis, verify with the Department of Motor Vehicles the buses, limousines, and modified limousines used by a charter-party carrier of passengers and reported to the commission by the carrier.

1. Related Legislation:

AB 1677 (Ting), 2016: Requires CHP to develop protocols, in consultation with representatives of local government, to allow for the inspection of tour buses, as specified. Pending in the Assembly Transportation Committee.

SB 812 (Hill), 2016: Requires CHP to develop inspection fees for CPCs and requires CPCs or PSCs to schedule CHP inspections, as specified. Pending in the Senate Transportation and Housing Committee.

1. Prior Legislation:

SB 541 (Hill), Chapter 718, Statutes of 2015: Codifies the State Auditor report's recommendation on strengthening the CPUCs oversight of transportation-related activities of household good carrier and CPCs.

SB 611 (Hill), Chapter 860, Statutes of 2014: Requires all modified limousines, as defined, to be equipped with two fire extinguishers and requires the CHP to develop and implement an inspection program for modified limousines, as specified.

1. Double Referred: This bill is double referred to the Assembly Transportation Committee.

REGISTERED SUPPORT / OPPOSITION:

Support

California Bicycle Coalition

Greater California Livery Association

Walk San Francisco

Opposition

None on file.

Analysis Prepared by: Edmond Cheung / U. & C. / (916) 319-2083