(1)Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including common carriers. The Public Utilities Act, with certain exceptions, requires that a passenger stage corporation, as defined, obtain a certificate of public convenience and necessity from the commission to operate on any public highway in the state. The act authorizes the executive director of the commission to make application to the superior court for an order enjoining certain acts or practices violating the requirements of the act or any order, decision, rule, regulation, direction, demand, or requirement issued pursuant to those requirements, or for an order directing compliance. The act authorizes the superior court to grant a permanent or temporary injunction, restraining order, or other order, including an order allowing vehicles used for subsequent operations subject to the order to be impounded at the passenger stage corporations expense and subject to release only by subsequent court order following a petition to the court by the defendant or owner of the vehicle.

This bill would authorize the commission to contract with the Department of the California Highway Patrol or a sheriff to assist in enforcement of an order to impound a vehicle of a passenger stage corporation and would prohibit any costs incurred by the commission for that assistance from being assigned to the carrier as an expense of impound.

(2)Charter-party carriers of passengers, as defined, are subject to the jurisdiction and control of the commission under the Passenger Charter-party Carriers Act. The act requires a charter-party carrier of passengers to obtain from the commission a certificate that public convenience and necessity require the operation, or a permit issued by the commission, to operate within the state on a prearranged basis, as defined, prohibits operation unless there is displayed on the vehicle a distinctive identifying symbol prescribed by the commission showing the classification to which the carrier belongs, and complying with accident liability protection requirements. The act authorizes the executive director to make application to the superior court for an order enjoining certain acts or practices violating the requirements of the act or any order, decision, rule, regulation, direction, demand, or requirement issued pursuant to those requirements, or for an order directing compliance. The act authorizes the superior court to grant a permanent or temporary injunction, restraining order, or other order, including an order allowing vehicles used for subsequent operations subject to the order to be impounded at the charter-party carriers expense and subject to release only by subsequent court order following a petition to the court by the defendant or owner of the vehicle.

This bill would authorize the commission to contract with the Department of the California Highway Patrol or a sheriff to assist in enforcement of an order to impound a vehicle of a charter-party carrier of passengers and would prohibit any costs incurred by the commission for that assistance from being assigned to the carrier as an expense of impound.

(1)Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including common carriers. The Public Utilities Act, with certain exceptions, requires that a passenger stage corporation, as defined, obtain a certificate of public convenience and necessity from the commission to operate on any public highway in the state. The act authorizes the executive director of the commission to make application to the superior court for an order enjoining certain acts or practices violating the requirements of the act or any order, decision, rule, regulation, direction, demand, or requirement issued pursuant to those requirements, or for an order directing compliance. The act authorizes the superior court to grant a permanent or temporary injunction, restraining order, or other order, including an order allowing vehicles used for subsequent operations subject to the order to be impounded at the passenger stage corporations expense and subject to release only by subsequent court order following a petition to the court by the defendant or owner of the vehicle.

This bill would authorize the commission to contract with the Department of the California Highway Patrol or a sheriff to assist in enforcement of an order to impound a vehicle of a passenger stage corporation and would prohibit any costs incurred by the commission for that assistance from being assigned to the carrier as an expense of impound.

(2)Charter-party carriers of passengers, as defined, are subject to the jurisdiction and control of the commission under the Passenger Charter-party Carriers Act. The act requires a charter-party carrier of passengers to obtain from the commission a certificate that public convenience and necessity require the operation, or a permit issued by the commission, to operate within the state on a prearranged basis, as defined, prohibits operation unless there is displayed on the vehicle a distinctive identifying symbol prescribed by the commission showing the classification to which the carrier belongs, and complying with accident liability protection requirements. The act authorizes the executive director to make application to the superior court for an order enjoining certain acts or practices violating the requirements of the act or any order, decision, rule, regulation, direction, demand, or requirement issued pursuant to those requirements, or for an order directing compliance. The act authorizes the superior court to grant a permanent or temporary injunction, restraining order, or other order, including an order allowing vehicles used for subsequent operations subject to the order to be impounded at the charter-party carriers expense and subject to release only by subsequent court order following a petition to the court by the defendant or owner of the vehicle.

This bill would authorize the commission to contract with the Department of the California Highway Patrol or a sheriff to assist in enforcement of an order to impound a vehicle of a charter-party carrier of passengers and would prohibit any costs incurred by the commission for that assistance from being assigned to the carrier as an expense of impound.

(1)Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including common carriers. The Public Utilities Act, with certain exceptions, requires that a passenger stage corporation, as defined, obtain a certificate of public convenience and necessity from the commission to operate on any public highway in the state. The act authorizes the executive director of the commission to make application to the superior court for an order enjoining certain acts or practices violating the requirements of the act or any order, decision, rule, regulation, direction, demand, or requirement issued pursuant to those requirements, or for an order directing compliance. The act authorizes the superior court to grant a permanent or temporary injunction, restraining order, or other order, including an order allowing vehicles used for subsequent operations subject to the order to be impounded at the passenger stage corporations expense and subject to release only by subsequent court order following a petition to the court by the defendant or owner of the vehicle.

(2)Charter-party carriers of passengers, as defined, are subject to the jurisdiction and control of the commission under the Passenger Charter-party Carriers Act. The act requires a charter-party carrier of passengers to obtain from the commission a certificate that public convenience and necessity require the operation, or a permit issued by the commission, to operate within the state on a prearranged basis, as defined, prohibits operation unless there is displayed on the vehicle a distinctive identifying symbol prescribed by the commission showing the classification to which the carrier belongs, and complying with accident liability protection requirements. Existing law authorizes a peace officer that arrests a person for operating a charter-party carrier of passengers without a valid certificate or permit at a public airport or within 2 miles of the international border with Mexico, to impound and retain possession of the vehicle, subject to certain exceptions and provisions for notice and return of the vehicle. The act authorizes the executive director to make application to the superior court for an order enjoining certain acts or practices violating the requirements of the act or any order, decision, rule, regulation, direction, demand, or requirement issued pursuant to those requirements, or for an order directing compliance. The act authorizes the superior court to grant a permanent or temporary injunction, restraining order, or other order, including an order allowing vehicles used for subsequent operations subject to the order to be impounded at the charter-party carriers expense and subject to release only by subsequent court order following a petition to the court by the defendant or owner of the vehicle.

(1)Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including common carriers. The Public Utilities Act, with certain exceptions, requires that a passenger stage corporation, as defined, obtain a certificate of public convenience and necessity from the commission to operate on any public highway in the state. The act authorizes the executive director to make application to the superior court for an order enjoining certain acts or practices violating the requirements of the act or any order, decision, rule, regulation, direction, demand, or requirement issued pursuant to those requirements, or for an order directing compliance. The act authorizes the superior court to grant a permanent or temporary injunction, restraining order, or other order, including an order allowing vehicles used for subsequent operations subject to the order to be impounded at the passenger stage corporations expense and subject to release only by subsequent court order following a petition to the court by the defendant or owner of the vehicle.

Beginning July 1, 2019, this bill would instead authorize the commission, through its enforcement, consumer protection, or legal staff, to impound a vehicle owned or operated by a passenger stage corporation for up to 30 days, if the passenger stage corporation, or any officer, director, or agent of the passenger stage corporation, is has, on more than one occasion, engaged in any acts or practices in violation of the acts requirements, or of any order, decision, rule, regulation, direction, demand, or requirement issued pursuant to those requirements, specified provisions of the Vehicle Code, subject to a specified, mandatory administrative review. The bill would prohibit the commission from exercising this authority absent the presence of an officer of the Department of the California Highway Patrol or an officer of an appropriate law enforcement agency in the city, county, or city and county where the vehicle is located, unless impoundment occurs on airport property.

(2)Charter-party carriers of passengers, as defined, are subject to the jurisdiction and control of the commission under the Passenger Charter-party Carriers Act. The act requires a charter-party carrier of passengers to obtain from the commission a certificate that public convenience and necessity require the operation, or a permit issued by the commission, to operate within the state on a prearranged basis, as defined, prohibits operation unless there is displayed on the vehicle a distinctive identifying symbol prescribed by the commission showing the classification to which the carrier belongs, and complying with accident liability protection requirements. Existing law authorizes a peace officer that arrests a person for operating a charter-party carrier of passengers without a valid certificate or permit at a public airport or within 2 miles of the international border with Mexico, to impound and retain possession of the vehicle, subject to certain exceptions and provisions for notice and return of the vehicle.

This bill would authorize the commission, through its enforcement, consumer protection, or legal staff, to impound a vehicle owned or operated by a charter-party carrier of passengers for up to 30 days, if the charter-party carrier of passengers, or any officer, director, or agent of the charter-party carrier of passengers, is has, on more than one occasion, engaged in any acts or practices in violation of the acts requirements, or of any order, decision, rule, regulation, direction, demand, or requirement issued pursuant to those requirements, specified provisions of the Vehicle Code, subject to a specified, mandatory administrative review. The bill would prohibit the commission from exercising this authority absent the presence of an officer of the Department of the California Highway Patrol or an officer of an appropriate law enforcement agency in the city, county, or city and county where the vehicle is located, unless impoundment occurs on airport property.

Existing law, the Uniform Anatomical Gift Act, regulates the making and distribution of organ donations. Existing law authorizes an anatomical gift to be made to certain persons or entities if named in the document of gift, as defined. Among others, existing law authorizes an anatomical gift to be made to a hospital, accredited medical school, dental school, college, university, or organ procurement organization, for research or education.

This bill would further authorize an anatomical gift to be made to a school of nursing approved by the Board of Registered Nursing.

 UNFINISHED BUSINESS  

Bill No: SB 1474

Author:

:

Vote:

SENATE PUBLIC SAFETY COMMITTEE: 6-1, 4/24/18

AYES: Skinner, Bradford, Jackson, Mitchell, Stone, Wiener

NOES: Anderson

SENATE ENERGY, U. & C. COMMITTEE: 10-0, 4/25/18

AYES: Hueso, Bradford, Cannella, Hertzberg, Hill, McGuire, Skinner, Stern, Vidak, Wiener

NO VOTE RECORDED: Morrell

SENATE APPROPRIATIONS COMMITTEE: 6-1, 5/25/18

AYES: Lara, Bates, Beall, Bradford, Hill, Wiener

NOES: Nielsen

SENATE FLOOR: 34-4, 5/29/18

AYES: Allen, Atkins, Bates, Beall, Bradford, Cannella, De León, Dodd, Fuller, Galgiani, Glazer, Hernandez, Hertzberg, Hill, Hueso, Jackson, Lara, Leyva, McGuire, Mitchell, Monning, Moorlach, Newman, Nguyen, Pan, Portantino, Roth, Skinner, Stern, Stone, Vidak, Wieckowski, Wiener, Wilk

NOES: Anderson, Gaines, Morrell, Nielsen

NO VOTE RECORDED: Berryhill

ASSEMBLY FLOOR: 80-0, 8/30/18 - See last page for vote

SUBJECT:

SOURCE: Greater California Livery Association

DIGEST:

This bill allows the Public Utilities Commission (CPUC) to contract with the California Highway Patrol (CHP) or a sheriff to assist in the enforcement of an order for the impoundment of a vehicle owned or operated by a passenger stage corporation or a charter-party carrier, as provided.

Assembly Amendments

give CPUC the authority to contract with the CHP or a sheriff to assist in the enforcement of an order to impound a vehicle of a charter party carrier.

ANALYSIS:

Existing law:

1. Provides the CPUC with regulatory authority over public utilities, including common carriers. (Pub. Util. Code, § 701.)
2. Defines “passenger stage corporation” to include 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 this state between fixed termini or over a regular route except those, 98 percent or more of whose operations as measured by total route mileage operated, which are exclusively within the limits of a single city or city and county, or whose operations consist solely in the transportation of bona fide pupils attending an institution of learning between their homes and that institution. (Pub. Util. Code, § 226.)
3. Defines, subject to specified exclusions, “charter-party carrier of passengers” to mean every person engaged in the transportation of persons by motor vehicle for compensation, whether in common or contract carriage, over any public highway in this state. It 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. (Pub. Util. Code, § 5360.)
4. States that no passenger stage corporation shall operate or cause to be operated any passenger stage over any public highway in this state without first having obtained from the commission a certificate declaring that public convenience and necessity require such operation, with specified exceptions. (Pub. Util. Code, § 1031.)
5. States that no charter-party carrier of passengers excepting transit districts, transit authorities or cities owning and operating local transit systems themselves or through wholly owned nonprofit corporations shall engage in transportation services made subject to this chapter without first having obtained from the commission a certificate that public convenience and necessity require the operation, except as specified. (Pub. Util. Code, § 5371.)
6. Provides that when the executive director of the CPUC determines that any passenger stage corporation, or any officer, director, or agent of any passenger stage corporation, has engaged in, is engaged in, or is about to engage in, any acts or practices in violation of the Public Utilities Act, or any order, decision, rule, regulation, direction, demand, or requirement issued under the Act, the executive director may make application to the superior court for an order enjoining those acts or practices or for an order directing compliance. (Pub. Util. Code, § 1044.)
7. Authorizes the court to grant a permanent or temporary injunction, restraining order, or other order, including, but not limited to, an order allowing vehicles used for subsequent operations subject to the order to be impounded at the carrier’s expense and subject to release only by subsequent court order following a petition to the court by the defendant or owner of the vehicle, upon a showing by the executive director of the CPUC that a person or corporation has engaged in or is about to engage in acts or practices in violation of the Public Utilities Act, or any order, decision, rule, regulation, direction, demand, or requirement issued under the Act. (Id.)
8. States that it is a misdemeanor for every passenger stage corporation which violates any provisions related to requirements on passenger stage corporations, or aids or abets, or without being present advises or encourages any person or corporation in such violation, is guilty of a misdemeanor punishable by a fine not exceeding $1,000 or by imprisonment in a county jail for a term not to exceed six months, or by both such fine and imprisonment, or, if a corporation, shall be punished by a fine not to exceed $1,000. (Pub. Util. Code, §1037.)
9. States that it is a misdemeanor for every charter-party carrier of passengers who violates or who fails to comply with, or who procures, aids, or abets any violation by any charter-party carrier of passengers of any provision related to requirements on charter-party carriers, or who fails to obey, observe, or comply with any order, decision, rule, regulation, direction, demand, or requirement of the commission, or of any operating permit or certificate issued to any charter-party carrier of passengers, or who procures, aids, or abets any charter-party carrier of passengers in its failure to obey, observe, or comply with any such order, decision, rule, regulation, direction, demand, requirement, or operating permit or certificate, punishable by a fine of not less than $1,000 and not more than $5,000 or by imprisonment in a county jail for not more than three months, or by both that fine and imprisonment. (Pub. Util. Code, § 5411.)
10. States that the CPUC may charge a fee or to bar, suspend, or revoke authority when operating a charter-party carrier without the proper authority to do so. (Pub. Util. Code, §§ 5387, 5387.5.)
11. Authorizes a peace officer to impound a bus or limousine of a charter-party carrier for 30 days if the officer determines that specified violations related to a permit or certificate issued by the CPUC or for not having the proper driver’s license or passenger vehicle endorsement occurred while the driver was operating the bus or limousine of the charter-party carrier. (Veh. Code, § 14602.9, subd. (b).)
12. Authorizes a peace officer may impound a bus or limousine belonging to a passenger stage corporation for 30 days if the officer determines that specified violations related to a certificate of public convenience and necessity issued by the CPUC or for not having the proper driver’s license occurred while the driver was operating the bus or limousine. (Veh. Code, § 14602.9, subd. (c).)
13. Requires, within two working days after impoundment, the impounding agency to send notice to the legal owner of the vehicle informing the owner that the vehicle has been impounded and requires the impounding agency to provide information regarding the impoundment of vehicles and the rights of a registered owner to request a hearing. (Veh. Code, § 14602.9, subd. (d).)
14. States that the registered and legal owner of a vehicle that is impounded by law enforcement shall be provided the opportunity for a storage hearing to determine the validity of, or consider any mitigating circumstances attendant to, the storage (or impound). (Veh. Code, § 14602.9, subd. (e) and 22852.)
15. Provides that the impounding agency shall release the vehicle to the registered owner or the legal owner prior to the end of the impoundment period in certain specified circumstances. (Veh. Code, § 14602.9, subds. (f), (h).)

This bill authorizes the CPUC to contract with the CHP or a sheriff to assist in the enforcement of an order to impound a vehicle of a charter party carrier.

FISCAL EFFECT: Appropriation: Fiscal Com.: Local:

According to the Assembly Appropriations Committee:

1. Ongoing annual costs of approximately $100,000 (special fund) to the CPUC for one position to develop an impound program and law enforcement contracting policies and procedures and to oversee the program.
2. Potential ongoing annual costs to the CPUC to contract with CHP and sheriff departments. (This bill does not require the CPUC to undertake such contracting. However, it is the author’s intent that the CPUC enter into such contracts and the CPUC indicates it intention to do so, estimating annual special fund costs of approximately $125,000.)

SUPPORT: (Verified 8/28/18)

Greater California Livery Association (source)

OPPOSITION: (Verified 8/28/18)

None received

ASSEMBLY FLOOR: 80-0, 8/30/18

AYES: Acosta, Aguiar-Curry, Travis Allen, Arambula, Baker, Berman, Bigelow, Bloom, Bonta, Brough, Burke, Caballero, Calderon, Carrillo, Cervantes, Chau, Chávez, Chen, Chiu, Choi, Chu, Cooley, Cooper, Cunningham, Dahle, Daly, Eggman, Flora, Fong, Frazier, Friedman, Gabriel, Gallagher, Cristina Garcia, Eduardo Garcia, Gipson, Gloria, Gonzalez Fletcher, Gray, Grayson, Harper, Holden, Irwin, Jones-Sawyer, Kalra, Kamlager-Dove, Kiley, Lackey, Levine, Limón, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin, Muratsuchi, Nazarian, Obernolte, O'Donnell, Patterson, Quirk, Quirk-Silva, Reyes, Rivas, Rodriguez, Rubio, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Voepel, Waldron, Weber, Wood, Rendon

Prepared by: Mary Kennedy / PUB. S. /

8/30/18 20:45:47

**** END ****

SENATE THIRD READING

STR Bill Id:

Author:(Hill)

As Amended Ver:

Majority vote

SENATE VOTE: 34-4

SUMMARY: Authorizes the California Public Utilities Commission (CPUC), as part of its enforcement of its regulation of passenger stage corporations (PSC) and charter-party carriers (CPC) to contract with the California Highway Patrol (CHP) or a sheriff to assist in the enforcement of an order for vehicle impound. The bill prohibits assignment of the costs of CHP or sheriff's assistance with impound to a carrier as an expense of impound.

FISCAL EFFECT: According to the Assembly Appropriations Committee, this bill would have the following costs:

1. Ongoing annual costs of approximately $100,000 to the CPUC for one position to develop an impound program and law enforcement contracting policies and procedures and to oversee the program.
2. Potential ongoing annual costs to the CPUC to contract with CHP and sheriff departments. (This bill does not require the CPUC to undertake such contracting. However, it is the author's intent that the CPUC enter into such contracts and the CPUC indicates it intention to do so, estimating annual special fund costs of approximately $125,000.)

COMMENTS:

1. Authors Statement: According to the author, "Approximately half of all unlicensed carriers blatantly disregard CPUC citations and continue to operate illegally in the state, allowing for both a monetary deficit and continuation of illegal operation. SB 1474 would ensure the CPUC is effective at enforcing its regulations, and takes proper public safety precautions by ensuring law enforcement is present during the impoundment."
2. Background: The CPUC regulates different modes of passenger transportation for compensation including PSCs and CPCs. PSCs are services that provide transportation to the general public on an individual fare basis, such as scheduled bus operators and airport shuttles.

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.

1. CPUC Transportation Enforcement Branch: The CPUC's Transportation Enforcement Branch (TEB) is tasked with responding to, and investigating complaints of unsafe, unlicensed, and uninsured passenger carriers; as well as responding to complaints against licensed carriers, such as overcharging, discrimination, and other consumer complaints. In June 2014, the California State Auditor released a report which found that the TEB did not provide sufficient oversight of CPCs and PSCs to ensure consumer safety.

SB 541 (Hill) Chapter 718, Statutes of 2015, codified many of the report's recommendations and the CPUC has made strides toward improving TEB activities since then. As part of SB 541, the CPUC conducted an independent review by the firm Crowe Horwath which identified numerous deficiencies in the CPUC's transportation oversight program that have persisted for decades. The report noted that because the TEB does not have the authority to impound vehicles or the ability to follow up on fines issued to unlicensed carriers, enforcement of unlicensed carriers aren't enforced as efficiently.

This bill authorizes the CPUC to contract with CHP or a sheriff to assist in the enforcement of an order for vehicle impound of a PSC or CPC.

Analysis Prepared by: Edmond Cheung / C. & C. / (916) 319-2637 FN: 0004163

Date of Hearing: June 20, 2018

ASSEMBLY COMMITTEE ON COMMUNICATIONS AND CONVEYANCE

Miguel Santiago, Chair

SBPCA Bill Id:SB 1474

Author:(Hill) – As Amended Ver:April 30, 2018

SENATE VOTE: 34-4

SUBJECT: Passenger stage corporations: charter-party carriers of passengers: impoundment of vehicles

SUMMARY: Authorizes the California Public Utilities Commission (CPUC) to impound a vehicle owned or operated by a charter-party carrier (CPC) or a passenger stage corporation (PSC) for specified violations. Specifically, this bill:

1. Authorizes the CPUC, beginning, July 1, 2019, through its enforcement, consumer protection, or legal staff, to impound a vehicle owned or operated by a PSC or a CPC for up to 30 days, if the CPUC, or its enforcement, consumer protection, or legal staff, determines that the PSC or CPC, or any officer, director, or agent of the PSC or CPC, has, on more than one occasion, engaged in any specified violation.
2. Prohibits the CPUC from exercising the specified authority until it amends its existing general orders, resolutions, or decisions as necessary to provide for a prompt and fair administrative review of the decision to impound a vehicle and adopts all existing impoundment protections and rules, as specified.
3. Prohibits the CPUC from exercising the specified authority absent the presence of an officer of the Department of the California Highway Patrol (CHP) or an officer of an appropriate law enforcement agency in the city, county, or city and county where the vehicle is located, unless impoundment occurs on airport property.
4. Specifies that the registered owner, and not the legal owner, shall remain responsible for any towing and storage charges related to the impoundment, any administrative charges authorized, as specified, and any parking fines, penalties, and administrative fees incurred by the registered owner.
5. Sunsets the current authorization for the CPUC executive director to apply for court orders to impound PSC vehicles, as of July 1, 2019, and as of January 1, 2020 is repealed.

EXISTING LAW:

1. Establishes the “Passenger Charter-Party Carriers Act,” which authorizes the CPUC to supervise and regulate every CPC in the State and may do all things, necessary and convenient in the exercise of such power and jurisdiction, including issuing permits or certificates, investigating complaints against carriers, and cancel, revoke, or suspend permits and certificates for specific violations. (Public Utilities Code (PUC) Section Code 5381 et seq.)
2. 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 any passenger stage over any public highway in this state between fixed termini or over a regular route, as specified. (PUC Section 226)
3. Defines a “charter-party carrier of passengers” to mean every person engaged in the transportation of persons by motor vehicle for compensation, whether in common or contract carriage, over any public highway in this state. (PUC Section 5360)
4. Authorizes 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. (PUC Sections 1031 to 1045)
5. Prohibits a CPC excepting transit districts, transit authorities or cities owning and operating local transit systems themselves or through wholly owned nonprofit corporations from engaging in transportation services made, as specified, without first having obtained from the CPUC a certificate that public convenience and necessity require the operation, as specified. (PUC Section 5371)
6. Specifies that when the executive director of the CPUC determines that any PSC, or any officer, director, or agent of any PSC, has engaged in, is engaged in, or is about to engage in, any specified violation, or any order, decision, rule, regulation, direction, demand, or requirement issued, as specified, the executive director may make application to the superior court for an order enjoining those acts or practices or for an order directing compliance, as specified. (PUC Section 1044)
7. Authorizes a peace officer, with respect to a PSC, to enforce and assist in the enforcement of specified violations, as specified (PUC Section 1046)
8. Establishes requirements for vehicle impoundments, including authorizing peace officers to impound PSCs or limousines for 30 days if an officer determines that a specified violation has occurred. (Vehicle Code Section 14602.9)

FISCAL EFFECT: Unknown. This bill is keyed fiscal by the Legislative Counsel.

COMMENTS:

1. Authors Statement: According to the author, “SB 1474 adopts one remaining recommendation from the 2017 audit of CPUC’s transportation authority; that is, allowing the CPUC to impound vehicles under their jurisdiction. The CPUC already regulate these entities, issue licenses, and fine or penalize them for bad behavior. However, approximately half of all unlicensed carriers blatantly disregard CPUC citations and continue to operate illegally in the state, allowing for both a monetary deficit and continuation of illegal operation. SB 1474 would ensure the CPUC is effective at enforcing its regulations, and takes proper public safety precautions by ensuring law enforcement is present during the impoundment.”
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. CPUC Transportation Enforcement Branch: Current law requires PSCs and CPCs to obtain licensure from the CPUC before operating. The CPUC’s Transportation Enforcement Branch (TEB) is tasked with responding to, and investigating complaints of unsafe, unlicensed, and uninsured passenger carriers; as well as responding to complaints against licensed carriers, such as overcharging, discrimination, and other consumer complaints. The TEB works in collaboration with law enforcement to carry out its duties.

In June 2014, the California State Auditor released a report examining the TEBs efforts to regulate passenger carriers, as well as its use of fees collected from carriers. The report found that the branch did not provide sufficient oversight of CPCs and PSCs to ensure consumer safety. The report found a number of issues including a lack of procedures for processing complaints, failure to conduct adequate investigations, inadequate enforcement across the state due to the lack of internal control and high turnover, among others.

The report made a number of recommendations including exploring legislation to give the CPUC authority to impound vehicles. The report noted that the TEB has authorization to perform some peace officer activities, but does not have the authority to impound vehicles. Such authority the report noted could be an effective tool to encourage compliance with passenger carrier requirements and fine collection. SB 541 (Hill) Chapter 718, Statutes of 2015, subsequently codified many of the reports recommendations and the CPUC has made strides toward improving TEB activities since then.

1. Crowe Horwath Report: As part of SB 541, the CPUC was required to assess TEBs capabilities to carry out the enforcement activities, report to the Legislature on its current capabilities and deficiencies, and provide recommendation to improve the TEB. The CPUC hired Crowe Horwath LLP to conduct the evaluation. The Crowe Horwath report identified numerous deficiencies in the CPUC’s transportation oversight program that have persisted for decades, due in large part to insufficient attention from CPUC leadership and a lack of resources required to staff a meaningful regulatory program.

The report noted that unlicensed carriers were usually a greater threat to public safety than licensed carriers. Unlicensed carriers can easily close business and re-open under another name, unbeknownst to the TEB. Because the TEB does not have the authority to impound vehicles or the ability to follow up on fines issued to unlicensed carriers, enforcement of unlicensed carriers aren’t enforced as efficiently. Although the TEB does occasionally participate in sting operations at airports with other agencies, the report found that there were no concerted effort to bring unlicensed carriers into compliance with current laws and regulations.

The report recommended a number of authorities and tools that would significantly improve TEB’s ability to regulate carriers, including Legislation giving the TEB impounding authority. In 2017, the Legislature passed SB 19 (Hill) Chapter 421, Statutes of 2017, which provided a suite of reforms to the CPUC, including codifying a number of recommendations from the Crowe Horwath report. SB 19, however, did not include the recommendation to provide the CPUC with the ability to impound vehicles.

This bill authorizes the CPUC to impound CPCs or PSCs for specified violations with a CHP or law enforcement officer present.

1. Arguments in Support: According to the Greater California Livery Association, “Currently, the [CPUC] lacks effective enforcement efforts and effective enforcement tools. Without efforts to safely regulate our industry, legal and illegal operators understand that current rules, operating requirements, and any possible violation fines are meaningless. The lack of enforcement by the CPUC and the lack of effective enforcement tools jeopardizes the safety of the public and diminishes the viability of the charter party industry. The passage of [SB 1474] will go a long way to enhance enforcement of California law and regulation, penalize non-compliance operators and provide incentive to comply with the laws and standards governing our industry.”
2. Previous Legislation: SB 19 (Hill) of 2017 provides a suite of reforms of the operations of the CPUC, including the transfer, by July 1, 2018, of specified transportation-related functions from the CPUC to other agencies or jurisdictions. Status: Chaptered by the Secretary of State, Chapter 421, Statutes of 2017.

SB 541 (Hill) of 2015 codifies a State Auditor report’s recommendations on strengthening the CPUC’s oversight of transportation-related activities of household good carriers and CPCs. Statues: Chaptered by the Secretary of State, Chapter 718, Statutes of 2015.

1. Double-referral: This bill is double referred, and if passed by this Committee, will be referred to the Assembly Committee on Public Safety.

REGISTERED SUPPORT / OPPOSITION:

Support

Greater California Livery Association

Opposition

None on file.

Analysis Prepared by: Edmond Cheung / C. & C. / (916) 319-2637

Date of Hearing: August 8, 2018

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Lorena Gonzalez Fletcher, Chair

SBPCA Bill Id:SB 1474

Author:(Hill) – As Amended Ver:June 28, 2018

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

SUMMARY:

This bill authorizes the California Public Utilities Commission (CPUC), as part of its enforcement of its regulation of passenger stage corporations and charter-party carriers to contract with the California Highway Patrol (CHP) or a sheriff to assist in the enforcement of an order for vehicle impound. The bill prohibits assignment of the costs of CHP or sheriff’s assistance with impound to a carrier as an expense of impound.

FISCAL EFFECT:

1. Ongoing annual costs of approximately $100,000 (special fund) to the CPUC for one position to develop an impound program and law enforcement contracting policies and procedures and to oversee the program.
2. Potential ongoing annual costs to the CPUC to contract with CHP and sheriff departments. (This bill does not require the CPUC to undertake such contracting. However, it is the author’s intent that the CPUC enter into such contracts and the CPUC indicates it intention to do so, estimating annual special fund costs of approximately $125,000.)

COMMENTS:

1. Purpose. The author intends this bill to provide CPUC contracting authority to allow CPUC to better enforce state laws on regulated transportation entities. According to the author, “allowing contracting with law enforcement to uphold CPUC rules provides one final piece to ensuring illegal carriers no longer flout the law.”
2. Background. Since its inception, the CPUC has regulated commercial transportation. Relevant to this bill, the CPUC has regulatory authority over two types of commercial transportation service: passenger stage corporations (PSCs) and charter-party carriers (CPCs). In brief, PSCs provide transportation to the general public on an individual fare basis, like an airport shuttle. CPCs offer services, such as limousine service, by which an individual can charter a vehicle, on a prearranged basis, for exclusive use.

The CPUC has broad authority to enforce its regulation of PSCs and CPCs, including authority to impound vehicles, pursuant to a court order. However, there have been two recent, critical reviews of CPUC enforcement of its regulation of transportation services: a June 2014 report by the California State Auditor, requested by the Legislature, and an independent review by the firm Crowe Horwath.

One assertion is that local law enforcement oftentimes does not prioritize response to CPUC’s requests for assistance in response to violation of CPUC regulations. The author intends this bill to remedy this situation by allowing CPUC to contract with CHP or local law enforcement to assist with vehicle impoundment.

1. Recent Legislation. SB 541, (Hill), Chapter 718, Statutes of 2015, allows peace officers to impound buses and limousines when they lack the required permits or licensing.

Analysis Prepared by: Jay Dickenson / APPR. / (916) 319-2081

Date of Hearing: June 26, 2018

Counsel: David Billingsley

ASSEMBLY COMMITTEE ON PUBLIC SAFETY

Reginald Byron Jones-Sawyer, Sr., Chair

SBPCA Bill Id:SB 1474

Author:(Hill) – As Amended Ver:April 30, 2018

SUMMARY: Allows the Public Utilities Commission (CPUC) to impound a vehicle owned or operated by a passenger stage corporation (PSC) or a charter-party carrier (CPC) for up to 30 days, as specified. Specifically, this bill:

1. Authorizes, beginning July 1, 2019, the CPUC, through its enforcement, consumer protection, or legal staff, to impound a vehicle owned or operated by a PSC for up to 30 days, if the PSC, or any officer, director, or agent of the PSC, has, on more than one occasion, engaged in any acts or practices that violates specified laws applicable to passenger stage corporations.
2. Makes the provision described above effective July 1, 2019.
3. Makes inoperative, as of July 1, 2019, and repeals, as of January 1, 2020, an existing provision that authorizes, among other things, the impoundment of vehicles owned or operated by a passenger state corporation based upon acts in violation of rules and regulations in the Public Utilities Code.
4. Authorizes CPUC, through its enforcement, consumer protection, or legal staff, to impound a vehicle owned or operated by a CPC for up to 30 days, if the CPC, or any officer, director, or agent of the CPC, has, on more than one occasion, engaged in any acts or practices that violates specified requirements applicable to charter-party carriers.
5. States that the CPUC shall not exercise its power to impound until it amends its existing general orders, resolutions, or decisions as necessary to provide for a prompt and fair administrative review of the decision to impound a vehicle and shall adopt existing impoundment protections and rules as outlined existing law related to impound of these types of vehicles.
6. States that the CPUC shall not exercise this authority absent the presence of a California Highway Patrol officer or an officer from a law enforcement agency in the city, county, or city and county where the vehicle is located, unless impoundment occurs on airport property.
   
7. Provides that the registered owner, and not the legal owner, shall remain responsible for any towing and storage charges related to the impoundment, any administrative charges authorized pursuant to the provisions in this bill, and any parking fines, penalties, and administrative fees incurred by the registered owner.
   

EXISTING LAW:

1. Provides the CPUC with regulatory authority over public utilities, including common carriers. (Pub. Util. Code, § 701.)
2. Defines “passenger stage corporation” to include 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 this state between fixed termini or over a regular route except those, 98 percent or more of whose operations as measured by total route mileage operated, which are exclusively within the limits of a single city or city and county, or whose operations consist solely in the transportation of bona fide pupils attending an institution of learning between their homes and that institution. (Pub. Util. Code, § 226.)
3. Defines, subject to specified exclusions, “charter-party carrier of passengers” to mean every person engaged in the transportation of persons by motor vehicle for compensation, whether in common or contract carriage, over any public highway in this state. It 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. (Pub. Util. Code, § 5360.)
4. States that no passenger stage corporation shall operate or cause to be operated any passenger stage over any public highway in this state without first having obtained from the commission a certificate declaring that public convenience and necessity require such operation, with specified exceptions. (Pub. Util. Code, § 1031.)
5. States that no charter-party carrier of passengers excepting transit districts, transit authorities or cities owning and operating local transit systems themselves or through wholly owned nonprofit corporations shall engage in transportation services made subject to this chapter without first having obtained from the commission a certificate that public convenience and necessity require the operation, except as specified. (Pub. Util. Code, § 5371.)
6. Provides that when the executive director of the CPUC determines that any passenger stage corporation, or any officer, director, or agent of any passenger stage corporation, has engaged in, is engaged in, or is about to engage in, any acts or practices in violation of the Public Utilities Act, or any order, decision, rule, regulation, direction, demand, or requirement issued under the Act, the executive director may make application to the superior court for an order enjoining those acts or practices or for an order directing compliance. (Pub. Util. Code, § 1044.)
7. Authorizes the court to grant a permanent or temporary injunction, restraining order, or other order, including, but not limited to, an order allowing vehicles used for subsequent operations subject to the order to be impounded at the carrier’s expense and subject to release only by subsequent court order following a petition to the court by the defendant or owner of the vehicle, upon a showing by the executive director of the CPUC that a person or corporation has engaged in or is about to engage in acts or practices in violation of the Public Utilities Act, or any order, decision, rule, regulation, direction, demand, or requirement issued under the Act. ((Pub. Util. Code, § 1044.)
8. States that when the executive director of the CPUC determines that any charter party carrier of passengers, or any officer, director, or agent of any charter–party carrier of passengers, has engaged in, is engaged in, or is about to engage in, any acts or practices in violation of this chapter, or any order, decision, rule, regulation, direction, demand, or requirement issued under this chapter, the executive director may make application to the superior court for an order enjoining those acts or practices or for an order directing compliance. (Pub. Util. Code, § 5415.5.)
9. Provides that the court may grant a permanent or temporary injunction, restraining order, or other order, including, but not limited to, an order allowing vehicles used for subsequent operations subject to the order to be impounded at the carrier’s expense and subject to release only by subsequent court order following a petition to the court by the defendant or owner of the vehicle, upon a showing by the executive director that a person or corporation has engaged in or is about to engage in these acts or practices. (Pub. Util. Code, § 5415.5.)
10. States that it is a misdemeanor for every passenger stage corporation which violates any provisions related to requirements on passenger stage corporations, or aids or abets, or without being present advises or encourages any person or corporation in such violation, is guilty of a misdemeanor punishable by a fine not exceeding $1,000 or by imprisonment in a county jail for a term not to exceed six months, or by both such fine and imprisonment, or, if a corporation, shall be punished by a fine not to exceed $1,000. (Pub. Util. Code, §1037.)
11. States that it is a misdemeanor for every charter-party carrier of passengers who violates or who fails to comply with, or who procures, aids, or abets any violation by any charter-party carrier of passengers of any provision related to requirements on charter-party carriers, or who fails to obey, observe, or comply with any order, decision, rule, regulation, direction, demand, or requirement of the commission, or of any operating permit or certificate issued to any charter-party carrier of passengers, or who procures, aids, or abets any charter-party carrier of passengers in its failure to obey, observe, or comply with any such order, decision, rule, regulation, direction, demand, requirement, or operating permit or certificate, punishable by a fine of not less than $1,000 and not more than $5,000 or by imprisonment in a county jail for not more than three months, or by both that fine and imprisonment. (Pub. Util. Code, § 5411.)
12. States that the CPUC may charge a fee or to bar, suspend, or revoke authority when operating a charter-party carrier without the proper authority to do so. (Pub. Util. Code, §§ 5387, 5387.5.)
13. Authorizes a peace officer to impound a bus or limousine of a charter-party carrier for 30 days if the officer determines that specified violations related to a permit or certificate issued by the CPUC or for not having the proper driver’s license or passenger vehicle endorsement occurred while the driver was operating the bus or limousine of the charter-party carrier. (Veh. Code, § 14602.9, subd. (b).)
14. Authorizes a peace officer may impound a bus or limousine belonging to a passenger stage corporation for 30 days if the officer determines that specified violations related to a certificate of public convenience and necessity issued by the CPUC or for not having the proper driver’s license occurred while the driver was operating the bus or limousine. (Veh. Code, § 14602.9, subd. (c).)
15. Requires, within two working days after impoundment, the impounding agency to send notice to the legal owner of the vehicle informing the owner that the vehicle has been impounded and requires the impounding agency to provide information regarding the impoundment of vehicles and the rights of a registered owner to request a hearing. (Veh. Code, § 14602.9, subd. (d).)
16. States that the registered and legal owner of a vehicle that is impounded by law enforcement shall be provided the opportunity for a storage hearing to determine the validity of, or consider any mitigating circumstances attendant to, the storage (or impound). (Veh. Code, § 14602.9, subd. (e) and 22852.)
    
17. Provides that the impounding agency shall release the vehicle to the registered owner or the legal owner prior to the end of the impoundment period in certain specified circumstances. (Veh. Code, § 14602.9, subds. (f), (h).)

FISCAL EFFECT: Unknown

COMMENTS:

1. Author's Statement: According to the author, "SB 1474 adopts one remaining recommendation from the 2017 audit of CPUC’s transportation authority; that is, allowing the CPUC to impound vehicles under their jurisdiction. The CPUC already regulate these entities, issue licenses, and fine or penalize them for bad behavior. However, approximately half of all unlicensed carriers blatantly disregard CPUC citations and continue to operate illegally in the state, allowing for both a monetary deficit and continuation of illegal operation. SB 1474 would ensure the CPUC is effective at enforcing its regulations, and takes proper public safety precautions by ensuring law enforcement is present during the impoundment.”
   
2. Charter-Party Carriers (CPC) and Passenger Stage Corporations (PSC): 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 level of charges for CPCs. Types of CPCs include limos, tour buses, sightseeing services, and charter and party buses.
   
   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, maintain 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. Taxis are excluded from the definition of CPCs and are regulated by cities or counties.
   
   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.
   
3. CPUC: California law regulates different modes of passenger transportation for compensation, including taxi services, which are regulated by cities and/or counties, as well as CPCs and PSCs, which are regulated by the CPUC. State law requires the CPUC, through its regulatory efforts, to ensure that carriers comply with state laws. This includes ensuring that carriers have a permit to operate, maintain certain insurance, obtain an annual California Highway Patrol (CHP) safety inspection for vehicles seating more than 10 passengers, enroll in a DMV notification program for driver violations, participate in an alcohol and drug testing program, and maintain records for each trip taken.
   
   Generally, state law allows commission staff to impose a penalty of up to $2,000 per offense on noncompliant passenger carriers. Because state law clarifies that each day of continued noncompliance is a separate offense, potential cumulative penalties can be quite high. In lieu of revoking a passenger carrier’s permit, the commission may also levy an additional civil penalty of up to $7,500. However, before branch staff can issue citations exceeding $5,000, branch management requires them to obtain approval from the deputy director. (https://www.bsa.ca.gov/pdfs/reports/2013-130.pdf, State Auditor’s Report, p. 23.) In addition to fines, the CPUC has the power to seek impound of vehicles operated by CPCs and PSCs through the court. (Pub. Util. Code, §§ 1044 and 5415.5.)
   
4. State Auditor Report: In June 2014, the California State Auditor released a report examining the CPUC’s Transportation Enforcement Branch, within the Safety and Enforcement Division, efforts to regulate passenger carriers, as well as its use of fees collected from carriers. The report found that the branch did not provide sufficient oversight of CPCs and PSCs to ensure consumer safety.

The report concluded that the branch does not adequately ensure that passenger carriers comply with state law. Specifically, the report found that the branch had not established formal policies and procedures for staff to follow when addressing complaints against passenger carriers, and it does not ensure that staff resolve these complaints in a timely or adequate manner. The report also found that when the branch’s investigators have issued citations to passenger carriers, the citations have been for amounts much lower than state law allows. (https://www.bsa.ca.gov/pdfs/reports/2013-130.pdf)

The report’s recommendations included implementation of a formal training program to ensure that all investigators have adequate knowledge and skills related to regulating passenger carriers and a suggestion that the commission should create a system to determine when a carrier merits a penalty and what the magnitude of the penalty should be. In addition, to be an effective deterrent, the amount of such penalties should be more consistent with what state law permits. (Id.)

The report did contain a discussion regarding impoundment of vehicles by CPUC. The report suggested that the commission should require staff to examine and formally report on the feasibility of impounding the vehicles of passenger carriers that refuse to comply with commission orders or that refuse to pay citation penalties. In 2017, Crowe Horwath conducted an independent evaluation of the CPUCs regulation of passenger and property transportation. The report by Crowe Horwath touched on many of the same areas as the Auditor’s report, including a discussion on impound. Neither the Auditor’s or Crowe Horwath’s discussion on vehicle impound took note of the ability of CPUC to pursue impoundment as an enforcement mechanism under current law. Nor did either report examine the constitutional concerns related to impoundment.

1. Existing Law Allows the CPUC to Seek Impoundment of Vehicles When a PSC or CPC Has Violated the Laws Concerning Operation of Their Vehicles: Current law authorizes the CPUC to seek the impoundment of carrier vehicles through the court. Impoundment of carrier vehicles can be pursued any time a carrier has engaged in, or is about to engage in, acts that violate the Public Utilities Act and any regulation issued pursuant to that act. Once a carrier vehicle has been impounded, current law states that it will not be released until the court orders the vehicle released. Current law also provides that the impoundment will be at the carrier’s expense. These provisions apply to vehicles operated by both PSCs and CPCs. (Pub. Util. Code, §§ 1044 and 5415.5.)
   
   This bill would not require the court’s involvement in ordering a vehicle to be impounded. This bill would place the impound authority solely with CPUC. This bill would not require any due process prior to the impoundment. The standard for impoundment under the provisions of this bill would be if the CPUC determines, through its enforcement, consumer protection or legal staff, that a PSC or CPC, or any officer, director, or agent of the PSC or CPC, is engaged in any acts or practices, on more than one occasion, in violation of the Public Utilities Act, or any order, decision, rule, regulation, direction, demand, or requirement issued under the act. This bill would prohibit the CPUC from exercising this authority absent the presence of CHP officer or other law enforcement agency in the city, county, or city and county where the vehicle is located, unless impoundment occurs on airport property. This bill would require that the registered owner, not the legal owner, remain responsible for any towing and storage charges related to the impoundment, any administrative charges authorized pursuant to the provisions in this bill, and any parking fines, penalties, and administrative fees incurred by the registered owner.
   
   This bill would delete the existing statutory authority for CPUC to seek impound of PSC vehicles through the court, when a PSC is operating such vehicles in violation of laws regarding PSCs.
   
   Given that CPUC currently has impound authority that is accompanied by judicial oversight and due process prior to the seizure, there is not necessarily a compelling policy rational for the impound provisions of this bill.
   
2. Vehicle Impoundment and Fourth Amendment Seizure: The Fourth Amendment of the United States Constitution protects the people and their property “against unreasonable searches and seizures.” The manner in which the Fourth Amendment has been interpreted, creates a presumption that in order for the government to seize property from an individual, a warrant is required. This bill would authorize CPUC to impound (seize) property without a warrant. It is questionable whether the provisions of this bill comply with the requirements of the Fourth Amendment.
   
   The Ninth Circuit Court of Appeal Addressed the application of the Fourth Amendment to vehicle impoundment in the case of Brewster v. Beck (9th Cir. 2017) 859 F.3d 1194. In that case, Brewster loaned her vehicle to a driver with a suspended license. The Los Angeles Police Department (LAPD) officers stopped the driver, discovered the suspension, and impounded the vehicle, relying on Vehicle Code section 14602.6. Vehicle Code section 14602.6 authorizes law enforcement to impound a vehicle driven by an individual with driving privileges that have been suspended, for 30 days. Three days later, Brewster appeared at a hearing conducted by LAPD. Brewster had proof that she was the registered owner of the vehicle and her valid California driver’s license. LAPD refused to release the vehicle before the 30-day holding period had lapsed. Brewster filed suit under 42 U.S.C. §1983, arguing the 30-day impound was a warrantless seizure that violated the Fourth Amendment. (Id.)
   
   The Court stated that, “[a] seizure conducted without a warrant is per se unreasonable under the Fourth Amendment—subject only to a few specifically established and well delineated exceptions.”  The Court found that the LAPD could impound (seized) Brewster’s vehicle pursuant to Section 14602.6(a)(1) under the community caretaking exception to the warrant requirement under the Fourth Amendment.  But this exception is available only to “impound vehicles that jeopardize public safety and the efficient movement of vehicular traffic.”  (Id.)  
   
   The Court stated that the exigency that justified the initial seizure of Brewster’s vanished once her vehicle arrived in impound and Brewster showed up with proof of ownership and a valid driver’s license.  The Court stated that the question it must consider was whether the Fourth Amendment required further authorization for the LAPD to hold the vehicle for 30 days. The Court noted that, “[a] seizure is justified under the Fourth Amendment only to the extent that the government’s justification holds force. Thereafter, the government must cease the seizure or secure a new justification.” (Id.)
   
   The lower court had found that "the thirty-day impoundment period—designed to deter unlicensed drivers or drivers with a suspended license from driving—is an administrative penalty, and thus not unconstitutional under the Fourth Amendment." However, the Court in Brewster disagreed with the lower court and found that Fourth Amendment was implicated by a delay in returning the property, whether the property was seized for a criminal investigation, to protect the public, or to punish the individual.
   
   The Court stated that the Fourth Amendment did not become irrelevant once an initial seizure had run its course. The Court found that seizure is justified under the Fourth Amendment only to the extent that the government’s justification holds force. Thereafter, the government must cease the seizure or secure a new justification.” The Court dismissed the argument that its decision “frustrate[d] the state legislature’s intent to impose a penalty on unlicensed drivers.” (Id.)
   
   The provisions of this bill are similar to the vehicle code section that was addressed in Brewster. This bill allows CPUC to impound a vehicle of a PSC or CPC when they have engaged on more than one occasion in violations of operating without a permit or certificate issued by the CPUC, a driver was operating the specified vehicles CPC or PSC was operating with a suspended permit or certificate from the CPUC, or the driver was operating the PSC or CPUC without having a current and valid driver’s license of the proper class, a passenger vehicle endorsement, or the required certificate. Arguably, those violations would justify an initial impound under the community caretaking exception to the warrant requirement, but the provisions of this allowing impoundment for up to 30 days does not seem to have any basis that would justify continued seizure of the vehicle under the 4^th amendment.
3. Argument in Support: According to the Greater California Livery Association, “Currently, The California Public Utilities Commission lacks effective enforcement efforts and effective e enforcement tools. Without efforts to safely regulate our industry, legal and illegal operators understand the current rules, operating requirements, and any possible violation fines are meaningless. The lack of enforcement by the CPUC and the lack of effective enforcement tools jeopardizes the safety of the public and diminishes the viability of the charter party industry. The passage of Senate Bill 1474 will go a long way to enhance enforcement of California law and regulation, penalize non-compliance operators and provide incentive to comply with the laws and standards governing our industry..”
   
4. Argument in Opposition: According to the American Civil Liberties Union of California, “Under current law, if the executive director of the CPUC determines that a passenger stage corporation or a charter-party carrier has engaged in, is engaged in, or is about to engage in any acts or practices in violation of Chapter 5 or Chapter 8, respectively, of the Public Utilities Code, the executive director may then make an application to the superior court for an order enjoining those acts or practices, or an order directing compliance. (Public Utilities Code, §§ 1024, 5415.5.) The court may also grant an order allowing for the impoundment of a carrier’s vehicle. (Id.) The court may only order a vehicle to be impounded if the court is convinced that the executive director has made a showing that a person has engaged in or is about to engage in the prohibited acts or practices. (Id.)
   
   “SB 1474 seeks to upset this system of checks and balances without clear justification. While, as the author has stated, a state audit concluded that the CPUC “does not adequately ensure that passenger carriers comply with state law,” the State Auditor attributed this inadequacy to a lack of program leadership, a lack of staff training, a lack of procedures for processing complaints, and failure to complete investigations and issue citations in a timely manner. Given the history of structural deficiency within the CPUC, it appears counterproductive to remove judicial oversight from a process that involves depriving people of their property, particularly property they rely on to make a living.
   
   “The state must be cautious to ensure that any infringements our rights are within the bounds of the Constitution. We fear that SB 1474 may venture outside those bounds. First, we have concerns that the bill may not sufficiently ensure due process for property owners in all cases. Any undertaking by the government to take a person’s property should generally be preceded by the ability of the owner of the property to be heard prior to the actual seizure or taking. While SB 1474 requires the CPUC to adopt the impound procedures outlined in Vehicle Code Section 14602.9(c), those procedures do not sufficiently protect due process, as property owners are only notified and given an opportunity to be heard after the taking has already occurred.”
   
5. Related Legislation:
   1. AB 2876 (Jones-Sawyer), would clarify that the protections against unreasonable seizures provided by the Fourth Amendment of the U.S. Constitution apply even when a vehicle is removed pursuant to an authorizing statute. AB 2876 is awaiting hearing in the Senate Appropriations Committee.
      
   2. AB 2175 (Aguiar-Curry), would allow the impoundment of a vessel believed to be used in the commission of a crime and conforms penalties for reckless use of a vessel or other water craft causing injury to those of reckless driving. AB 2175 is awaiting hearing in the Senate Public Safety Committee.
      
6. Prior Legislation:
   
   1. SB 19 (Hill) Chapter 421, Statutes of 2017, mandated a set of reforms for the CPUC, including transfers of regulatory authority; the creation or adjustment of staff positions; increased internal auditing; and clarification of requirements for contracting legal services.
      
   2. AB 1206 (Bocanegra), Chapter 531, Statutes of 2017, authorized a two-year pilot program in the Cities of Los Angeles, Oakland, and Sacramento to permit law enforcement officers to tow vehicles used in the commission, or attempted commission of specified offenses related to prostitution.
      
   3. SB 541, Hill, Ch. 718, Stats. 2015, Codifies the State Auditor report’s recommendations on strengthening the California Public Utilities Commission’s (CPUC) oversight of transportation-related activities. Allows peace officers to impound buses and limousines of specified companies that carry passengers when they lack the required permits or licensing.
      

REGISTERED SUPPORT / OPPOSITION:

Support

Greater California Livery Association

Opposition

American Civil Liberties Union of California

Analysis Prepared by: David Billingsley / PUB. S. / (916) 319-3744

 THIRD READING  

Bill No: SB 1474

Author:

:

Vote:

SENATE PUBLIC SAFETY COMMITTEE: 6-1, 4/24/18

AYES: Skinner, Bradford, Jackson, Mitchell, Stone, Wiener

NOES: Anderson

SENATE ENERGY, U. & C. COMMITTEE: 10-0, 4/25/18

AYES: Hueso, Bradford, Cannella, Hertzberg, Hill, McGuire, Skinner, Stern, Vidak, Wiener

NO VOTE RECORDED: Morrell

SENATE APPROPRIATIONS COMMITTEE: 6-1, 5/25/18

AYES: Lara, Bates, Beall, Bradford, Hill, Wiener

NOES: Nielsen

SUBJECT:

SOURCE: Author

DIGEST:

This bill allows the Public Utilities Commission (CPUC) to impound a vehicle owned or operated by a passenger stage corporation or a charter-party carrier, as provided.

ANALYSIS:

Existing law:

1. Provides the CPUC with regulatory authority over public utilities, including common carriers. (Pub. Util. Code, § 701.)
2. Defines “passenger stage corporation” to include 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 this state between fixed termini or over a regular route except those, 98 percent or more of whose operations as measured by total route mileage operated, which are exclusively within the limits of a single city or city and county, or whose operations consist solely in the transportation of bona fide pupils attending an institution of learning between their homes and that institution. (Pub. Util. Code, § 226.)
3. Defines, subject to specified exclusions, “charter-party carrier of passengers” to mean every person engaged in the transportation of persons by motor vehicle for compensation, whether in common or contract carriage, over any public highway in this state. It 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. (Pub. Util. Code, § 5360.)
4. States that no passenger stage corporation shall operate or cause to be operated any passenger stage over any public highway in this state without first having obtained from the commission a certificate declaring that public convenience and necessity require such operation, with specified exceptions. (Pub. Util. Code, § 1031.)
5. States that no charter-party carrier of passengers excepting transit districts, transit authorities or cities owning and operating local transit systems themselves or through wholly owned nonprofit corporations shall engage in transportation services made subject to this chapter without first having obtained from the commission a certificate that public convenience and necessity require the operation, except as specified. (Pub. Util. Code, § 5371.)
6. Provides that when the executive director of the CPUC determines that any passenger stage corporation, or any officer, director, or agent of any passenger stage corporation, has engaged in, is engaged in, or is about to engage in, any acts or practices in violation of the Public Utilities Act, or any order, decision, rule, regulation, direction, demand, or requirement issued under the Act, the executive director may make application to the superior court for an order enjoining those acts or practices or for an order directing compliance. (Pub. Util. Code, § 1044.)
7. Authorizes the court to grant a permanent or temporary injunction, restraining order, or other order, including, but not limited to, an order allowing vehicles used for subsequent operations subject to the order to be impounded at the carrier’s expense and subject to release only by subsequent court order following a petition to the court by the defendant or owner of the vehicle, upon a showing by the executive director of the CPUC that a person or corporation has engaged in or is about to engage in acts or practices in violation of the Public Utilities Act, or any order, decision, rule, regulation, direction, demand, or requirement issued under the Act. (Id.)
8. States that it is a misdemeanor for every passenger stage corporation which violates any provisions related to requirements on passenger stage corporations, or aids or abets, or without being present advises or encourages any person or corporation in such violation, is guilty of a misdemeanor punishable by a fine not exceeding $1,000 or by imprisonment in a county jail for a term not to exceed six months, or by both such fine and imprisonment, or, if a corporation, shall be punished by a fine not to exceed $1,000. (Pub. Util. Code, §1037.)
9. States that it is a misdemeanor for every charter-party carrier of passengers who violates or who fails to comply with, or who procures, aids, or abets any violation by any charter-party carrier of passengers of any provision related to requirements on charter-party carriers, or who fails to obey, observe, or comply with any order, decision, rule, regulation, direction, demand, or requirement of the commission, or of any operating permit or certificate issued to any charter-party carrier of passengers, or who procures, aids, or abets any charter-party carrier of passengers in its failure to obey, observe, or comply with any such order, decision, rule, regulation, direction, demand, requirement, or operating permit or certificate, punishable by a fine of not less than $1,000 and not more than $5,000 or by imprisonment in a county jail for not more than three months, or by both that fine and imprisonment. (Pub. Util. Code, § 5411.)
10. States that the CPUC may charge a fee or to bar, suspend, or revoke authority when operating a charter-party carrier without the proper authority to do so. (Pub. Util. Code, §§ 5387, 5387.5.)
11. Authorizes a peace officer to impound a bus or limousine of a charter-party carrier for 30 days if the officer determines that specified violations related to a permit or certificate issued by the CPUC or for not having the proper driver’s license or passenger vehicle endorsement occurred while the driver was operating the bus or limousine of the charter-party carrier. (Veh. Code, § 14602.9, subd. (b).)
12. Authorizes a peace officer may impound a bus or limousine belonging to a passenger stage corporation for 30 days if the officer determines that specified violations related to a certificate of public convenience and necessity issued by the CPUC or for not having the proper driver’s license occurred while the driver was operating the bus or limousine. (Veh. Code, § 14602.9, subd. (c).)
13. Requires, within two working days after impoundment, the impounding agency to send notice to the legal owner of the vehicle informing the owner that the vehicle has been impounded and requires the impounding agency to provide information regarding the impoundment of vehicles and the rights of a registered owner to request a hearing. (Veh. Code, § 14602.9, subd. (d).)
14. States that the registered and legal owner of a vehicle that is impounded by law enforcement shall be provided the opportunity for a storage hearing to determine the validity of, or consider any mitigating circumstances attendant to, the storage (or impound). (Veh. Code, § 14602.9, subd. (e) and 22852.)
15. Provides that the impounding agency shall release the vehicle to the registered owner or the legal owner prior to the end of the impoundment period in certain specified circumstances. (Veh. Code, § 14602.9, subds. (f), (h).)

This bill:

1. Authorizes, beginning July 1, 2019, the CPUC, through its enforcement, consumer protection, or legal staff, to impound a vehicle owned or operated by a passenger stage corporation for up to 30 days, if the passenger stage corporation, or any officer, director, or agent of the passenger stage corporation, has, on more than one occasion, engaged in any acts or practices that violates specified requirements applicable to passenger stage corporations.
2. Repeals, as of January 1, 2020, an existing provision that authorizes, among other things, the impoundment of vehicles owned or operated by a passenger state corporation based upon acts in violation of rules and regulations in the Public Utilities Code.
3. Authorizes CPUC, through its enforcement, consumer protection, or legal staff, to impound a vehicle owned or operated by a charter-party carrier for up to 30 days, if the passenger stage corporation, or any officer, director, or agent of the passenger stage corporation, has, on more than one occasion, engaged in any acts or practices that violates specified requirements applicable to charter-party carriers.
4. States that the CPUC shall not exercise its power to impound until it amends its existing general orders, resolutions, or decisions as necessary to provide for a prompt and fair administrative review of the decision to impound a vehicle and shall adopt existing impoundment protections and rules as outlined existing law related to impound of these types of vehicles.
5. States that the CPUC shall not exercise this authority absent the presence of a California Highway Patrol officer or an officer from a law enforcement agency in the city, county, or city and county where the vehicle is located, unless impoundment occurs on airport property.
6. Provides that the registered owner, and not the legal owner, shall remain responsible for any towing and storage charges related to the impoundment, any administrative charges authorized pursuant to the provisions in this bill, and any parking fines, penalties, and administrative fees incurred by the registered owner.

FISCAL EFFECT: Appropriation: Fiscal Com.: Local:

According to the Senate Appropriations Committee:

• One-time costs of approximately $286,000 (Transportation Reimbursement Account) for the CPUC to perform policymaking, capacity building, outreach and other duties necessary to develop an impoundment program within their existing transportation division.
• Ongoing costs of approximately $150,000 annually (Transportation Reimbursement Account) for one additional staff position to manage the appeals process, secure impound services, oversee contract development and maintenance, correspond with vehicle owners, and manage vendors for towing and equipment necessary to implement bill.

SUPPORT: (Verified 5/25/18)

Greater California Livery Association

OPPOSITION: (Verified 5/25/18)

None received

Prepared by:

5/26/18 15:14:44

**** END ****

SENATE COMMITTEE ON APPROPRIATIONS

Senator Ricardo Lara, Chair

2017 - 2018 Regular Session

SB 1474 (Hill) - Passenger stage corporations: charter-party carriers of passengers: impoundment of vehicles

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

Bill Summary:

SB 1474 authorizes the California Public Utilities Commission (CPUC) to impound a vehicle owned or operated by a passenger stage corporation (PSC) or charter passenger carrier (CPC) for violating provisions of the Public Utilities Act.

Fiscal Impact:

• One-time costs of approximately $286,000 (Transportation Reimbursement Account) for the CPUC to perform policymaking, capacity building, outreach and other duties necessary to develop an impoundment program within their existing transportation division.
• Ongoing costs of approximately $150,000 annually (Transportation Reimbursement Account) for one additional staff position to manage the appeals process, secure impound services, oversee contract development and maintenance, correspond with vehicle owners, and manage vendors for towing and equipment necessary to implement bill.

Background:

CPUC’s Transportation Service Enforcement (TEB). The CPUC regulates several types of transportation services, including passenger stage corporations Charter Passenger Carriers. Passenger stage corporations include certain bus services and airport shuttles while CPCs include tour buses, limousines, and transportation network companies like Lyft and Uber. In its regulatory capacity the

Existing law, and licensing requirement, explicitly prohibits a PSC or CPC operating without a license. The TEB, often working with law enforcement, investigates and responds to complaints of unsafe, unlicensed, and uninsured transportation carriers as well as complaints about other misconduct like overcharging, discrimination, and failures to respond to consumer complaints. When conducting enforcement activities the TEB works with law enforcement to carry out its duties.

Audit recommendations. In June 2014, the Bureau of State Audits completed an audit of TEB activities based on a request from the Joint Legislative Audit Committee. The State Auditor found that the CPUC did not adequately ensure that passenger carriers comply with state law. The audit found that staff turnover and leadership issues were the primary contributors to performance issues; however it also identified specific opportunities to enhance the CPUC’s authority to enforce requirements for passenger carriers. The report notes that the TEB’s investigators are authorized to perform some peace officer activities; however peace officers’ authority to impound vehicles under state law does not extend to the branch’s investigators. The State Auditor recommended exploring legislation to give the CPUC the authority to impound vehicles. The report noted that this authority could be an effective too to encourage compliance with passenger carrier requirements and fine collection. Subsequent legislation, SB 541 (Hill, Chapter 718, Statutes of 2015) codified many of the recommendations from the State Auditor report. Following the report, the CPUC also made efforts to improve TEB activities.

Proposed Law:

This bill:

1. As of July 1, 2019, authorizes the CPUC to impound a vehicle owned or operated by a CPC or a passenger stage corporation, if the CPUC determines that the corporation, or any officer, director, or agent, is engaged in acts or practices that violate the Public Utilities Act, or any CPUC order, decision, rule, regulation, direction, demand, or requirement made under the act.
2. Prohibits the CPUC from impounding vehicles until it amends its existing general orders, resolutions, or decisions as necessary to ensure prompt and fair administrative review of impoundment decisions. The CPUC must consider adopting existing impoundment protections and rules contained in the Vehicle Code.
3. Prohibits the CPUC from impounding vehicles without the presence of a California Highway Patrol (CHP) officer or an officer from a law enforcement agency in the city, county, or city and county where the vehicle is located, unless impoundment occurs on airport property.
4. Requires the registered owner of the vehicle to remain responsible for towing and storage charges related to impoundment, any administrative charges authorized pursuant to the provisions in this bill, and any parking fines, penalties, and administrative fees incurred by the registered owner.
5. Establishes a July 1, 2019, sunset date for existing provisions of law authorizing the CPUC executive director to apply for court orders to impound passenger stage corporation vehicles.

Staff Comments:

The CPUC does not currently have any program that impounds vehicles. Staff will have to develop rules and procedures for when a vehicle will be impounded as well as outline an appeals process, which will be adopted by the commission through a new proceeding that will be opened for this purpose. This proceeding along with initial outreach efforts and workload associated with contracting with companies throughout the state with towing and storage capacity for the oversized vehicles under the CPUC’s purview represent year 1 costs ($286,000). Ongoing costs would be necessary for managing contracts with vendors (tow companies) and communicating with vehicle owners, and conducting appeals when requested. There could be additional costs for an administrative law judge to manage the appeals process.

What workload is associated with a proceeding? orders, resolutions, or decisions to provide for a prompt and fair administrative review of the decision to impound a vehicle and resolve any issues that parties may have regarding due process. The proceeding would require the Commission to evaluate Comments and Reply Comments from parties, conduct evidentiary hearings, if necessary, hold workshops, analyze comments and review briefs from parties, and issue a proposed decision that would trigger a final round of comments before a final decision is voted out. Once a final decision is voted out by the Commission, parties have the right to appeal, which would result in further work in order to protect parties’ due process rights.

-- END --

SENATE COMMITTEE ON ENERGY, UTILITIES AND COMMUNICATIONS

Senator Ben Hueso, Chair

2017 - 2018 Regular

Bill No: Hearing Date: 4/25/2018

SUBJECT:

DIGEST: This bill authorizes the CPUC to impound a vehicle owned or operated by a passenger stage corporation or CPC for violating provisions of the Public Utilities Act.

ANALYSIS:

Existing law:

1. Authorizes the California Public Utilities Commission (CPUC) to supervise and regulate every charter-party carrier (CPC) of passengers. (Public Utilities Code §5381)
2. Authorizes the CPUC to regulate common carriers, including passenger stage corporations. (Public Utilities Code §701)
3. Defines a passenger stage corporation as a corporation or person owning, operating, controlling or managing a passenger stage as a common carrier, for compensation, over any public highway in this state between fixed termini or over a regular route, except certain school bus operators. (Public Utilities Code §226)
4. Defines a CPC of passengers as every person engaged in the transportation of persons by motor vehicle for compensation over any public highway in this state. A CPC of passengers 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. (Public Utilities Code §5360)
   
5. Prohibits CPC and passenger stage corporations from operating without obtaining a license from the CPUC. (Public Utilities Code §§1031 and 5371)
6. Makes it a misdemeanor for passenger stage corporations and CPCs to violate requirements for passenger stage corporations and CPCs and authorizes penalties for violations, including fines. (Public Utilities Code §§1037 and 5411)
7. Authorizes the CPUC’s executive director to apply for court orders when the executive director determines that a passenger stage corporation violates or intends to violate requirements for corporations. The court may grant various orders, including an order allowing vehicles to be impounded at the carrier’s expense. (Public Utilities Code §1044)
8. Establishes requirements for vehicle impoundments, including authorizing peace officers to impound passenger stage corporation buses or limousines for 30 days if officers determine that CPUC licensure and driver’s license violations have occurred. (Vehicle Code §14602.9)

This bill:

1. As of July 1, 2019, authorizes the CPUC to impound a vehicle owned or operated by a CPC or a passenger stage corporation, if the CPUC determines that the corporation, or any officer, director, or agent, is engaged in acts or practices that violate the Public Utilities Act, or any CPUC order, decision, rule, regulation, direction, demand, or requirement made under the act.
2. Prohibits the CPUC from impounding vehicles until it amends its existing general orders, resolutions, or decisions as necessary to ensure prompt and fair administrative review of impoundment decisions. The CPUC must consider adopting existing impoundment protections and rules contained in the Vehicle Code.
3. Prohibits the CPUC from impounding vehicles without the presence of a California Highway Patrol (CHP) officer or an officer from a law enforcement agency in the city, county, or city and county where the vehicle is located, unless impoundment occurs on airport property.
4. Requires the registered owner of the vehicle to remain responsible for towing and storage charges related to impoundment, any administrative charges authorized pursuant to the provisions in this bill, and any parking fines, penalties, and administrative fees incurred by the registered owner.
5. Establishes a July 1, 2019, sunset date for existing provisions of law authorizing the CPUC executive director to apply for court orders to impound passenger stage corporation vehicles.

Background

CPUC Transportation Service Enforcement (TEB). The CPUC is responsible for regulating several types of transportation services, including passenger stage corporations and CPCs. Passenger stage corporations include certain bus services and airport shuttles while CPCs include tour buses, limousines, and transportation network companies like Lyft and Uber. The CPUC’s TEB is tasked with licensing and enforcement activities for transportation services.

Under existing law, passenger stage corporations and CPCs are required to obtain licensure from the CPUC before operating. These transportation service providers are specifically prohibited from operating without a license. Prohibiting unlicensed transportation service providers from operating supports compliance with requirements necessary for licensure, including public safety requirements. The TEB investigates and responds to complaints of unsafe, unlicensed, and uninsured transportation carriers as well as complaints about other misconduct like overcharging, discrimination, and failures to respond to consumer complaints. When conducting enforcement activities the TEB works with law enforcement to carry out its duties.

Audit recommendations. In June 2014, the Bureau of State Audits completed an audit of TEB activities based on a request from the Joint Legislative Audit Committee. The State Auditor found that the CPUC did not adequately ensure that passenger carriers comply with state law. The audit found that staff turnover and leadership issues were the primary contributors to performance issues; however it also identified specific opportunities to enhance the CPUC’s authority to enforce requirements for passenger carriers. The report notes that the TEB’s investigators are authorized to perform some peace officer activities; however peace officers’ authority to impound vehicles under state law does not extend to the branch’s investigators. The State Auditor recommended exploring legislation to give the CPUC the authority to impound vehicles. The report noted that this authority could be an effective too to encourage compliance with passenger carrier requirements and fine collection. Subsequent legislation, SB 541 (Hill, Chapter 718, Statutes of 2015) codified many of the recommendations from the State Auditor report. Following the report, the CPUC also made efforts to improve TEB activities.

In addition to codifying recommendations from the State Auditor report, SB 541 also required the CPUC to hire an independent entity to assess the TEB’s ability to carry out its duties. The bill required the CPUC to report findings from this assessment to the Legislature. In compliance with this requirement, the CPUC hired Crowe Horwath LLP to audit the TEB’s efforts. In February 2017, the CPUC submitted the audit findings to the Legislature. The report identified a number of opportunities to improve oversight of transportation services. The report specifically identified the TEB’s lack of authority to impound vehicles and follow up on fines as an enforcement barrier and recommended that the Legislature provide the CPUC with the authority to impound vehicles. Legislation (SB 19, Hill, Chapter 421, Statutes of 2017) codified a number of the Crowe Horwath audit recommendations; however, it did not provide the CPUC with the ability to impound vehicles.

Law enforcement coordination. This bill would authorize the CPUC to impound vehicles of CPCs and passenger stage corporations violating existing law. This bill prevents the CPUC from impounding vehicles in the absence of a CHP officer. Requiring the presence of a CHP officer may not increase the likelihood that the CPUC is able to exercise impoundment authority since impoundment would be subject to prioritization of the CHP. However, increasing the CPUC’s authority to directly instigate impoundments is consistent with the spirit of the audit recommendations.

Need for amendments. This bill’s author committed to amendments in the Senate Committee on Public Safety clarifying the process for impoundment. The author and committee may wish to consider adopting these amendments in this committee to ensure that these amendments are included in a timely manner.

Prior/Related Legislation

SB 19 (Hill, Chapter 421, Statutes of 2017) enacted a number of reforms regarding the CPUC, including the transfer of a number of CPUC transportation oversight duties to other agencies.

SB 541 (Hill, Chapter 718, Statutes of 2015) codified recommendations from a State Auditor Report regarding the performance of the CPUC’s TEB, including the recommendation that peace officers should be authorized to impound vehicles engaging in transportation services under CPUC jurisdiction. The bill also required the CPUC to hire an independent consultant to assess the TEB’s ability to carry out its duties and to submit a report to the Legislature.

FISCAL EFFECT: Appropriation: Fiscal Com.: Local:

SUPPORT:

Greater California Livery Association

OPPOSITION:

None received

ARGUMENTS IN SUPPORT: According to the Greater California Livery Association:

“Currently, the California Public Utilities Commission lacks effective enforcement efforts and effective enforcement tools. Without efforts to safely regulate our industry, legal and illegal operators understand that current rules, operating requirements, and any possible violate fines are meaningless. The lack of enforcement by the CPUC and the lack of effective enforcement tools jeopardizes the safety of the public and diminishes the viability of the charter party industry. The passage of Senate Bill 1474 will go a long way to enhance enforcement of California law and regulation, penalize non-compliance operators and provide incentive to comply with the laws and standards governing our industry.”

-- END --

SENATE COMMITTEE ON PUBLIC SAFETY

Senator Nancy Skinner, Chair

2017 - 2018 Regular

Bill No: SB 1474 Hearing Date: April 24, 2018

Subject: Passenger Stage Corporations: Charter-Party Carriers of Passengers: Impoundment of Vehicles

HISTORY

Source: Author

Prior Legislation: SB 19 (Hill) Ch. 421, Stats. 2017

AB 1206 (Bocanegra), Ch. 531, Stats. 2017

SB 541, Hill, Ch. 718, Stats. 2015

Support: Greater California Livery Association

Opposition: None known

PURPOSE

The purpose of this bill is to allow the Public Utilities Commission (CPUC) to impound a vehicle owned or operated by a passenger stage corporation or a charter-party carrier for any violation of the Public Utilities Act’s requirements, or of any order, decision, rule, regulation, direction, demand, or requirement issued pursuant to those requirements.

Existing law provides the CPUC with regulatory authority over public utilities, including common carriers. (Cal. Pub. Util. Code, § 701.)

Existing law defines “passenger stage corporation” to include 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 this state between fixed termini or over a regular route except those, 98 percent or more of whose operations as measured by total route mileage operated, which are exclusively within the limits of a single city or city and county, or whose operations consist solely in the transportation of bona fide pupils attending an institution of learning between their homes and that institution. (Pub. Util. Code, § 226.)

Existing law defines “charter-party carrier of passengers” to mean every person engaged in the transportation of persons by motor vehicle for compensation, whether in common or contract carriage, over any public highway in this 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. (Pub. Util. Code, § 5360.)

Existing law states that no passenger stage corporation shall operate or cause to be operated any passenger stage over any public highway in this state without first having obtained from the commission a certificate declaring that public convenience and necessity require such operation, with specified exceptions. (Pub. Util. Code, § 1031.)

Existing law states that no charter-party carrier of passengers excepting transit districts, transit authorities or cities owning and operating local transit systems themselves or through wholly owned nonprofit corporations shall engage in transportation services made subject to this chapter without first having obtained from the commission a certificate that public convenience and necessity require the operation, except as specified. (Pub. Util. Code, § 5371.)

Existing law provides that when the executive director of the CPUC determines that any passenger stage corporation, or any officer, director, or agent of any passenger stage corporation, has engaged in, is engaged in, or is about to engage in, any acts or practices in violation of the Public Utilities Act, or any order, decision, rule, regulation, direction, demand, or requirement issued under the act, the executive director may make application to the superior court for an order enjoining those acts or practices or for an order directing compliance. (Pub. Util. Code, § 1044.)

Existing law authorizes the court to grant a permanent or temporary injunction, restraining order, or other order, including, but not limited to, an order allowing vehicles used for subsequent operations subject to the order to be impounded at the carrier’s expense and subject to release only by subsequent court order following a petition to the court by the defendant or owner of the vehicle, upon a showing by the executive director of the CPUC that a person or corporation has engaged in or is about to engage in acts or practices in violation of the Public Utilities Act, or any order, decision, rule, regulation, direction, demand, or requirement issued under the act. (Id.)

Existing law defines, subject to specified exclusions, “charter-party carrier of passengers” to mean every person engaged in the transportation of persons by motor vehicle for compensation, whether in common or contract carriage, over any public highway in this state. It 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. (Pub. Util. Code, § 5360.)

Existing law states that it is a misdemeanor for every passenger stage corporation which violates any provisions related to requirements on passenger stage corporations, or aids or abets, or without being present advises or encourages any person or corporation in such violation, is guilty of a misdemeanor punishable by a fine not exceeding $1,000 or by imprisonment in a county jail for a term not to exceed six months, or by both such fine and imprisonment, or, if a corporation, shall be punished by a fine not to exceed $1,000. (Pub. Util. Code, §1037.)

Existing law states that it is a misdemeanor for every charter-party carrier of passengers who violates or who fails to comply with, or who procures, aids, or abets any violation by any charter-party carrier of passengers of any provision related to requirements on charter-party carriers, or who fails to obey, observe, or comply with any order, decision, rule, regulation, direction, demand, or requirement of the commission, or of any operating permit or certificate issued to any charter-party carrier of passengers, or who procures, aids, or abets any charter-party carrier of passengers in its failure to obey, observe, or comply with any such order, decision, rule, regulation, direction, demand, requirement, or operating permit or certificate, punishable by a fine of not less than $1,000 and not more than $5,000 or by imprisonment in a county jail for not more than three months, or by both that fine and imprisonment. (Pub. Util. Code, § 5411.)

Existing law states that CPUC may charge a fee or to bar, suspend, or revoke authority when operating a charter-party carrier without the proper authority to do so. (Pub. Util. Code, §§ 5387, 5387.5.)

Existing law authorizes a peace officer to impound a bus or limousine of a charter-party carrier for 30 days if the officer determines that specified violations related to a permit or certificate issued by the CPUC or for not having the proper driver’s license or passenger vehicle endorsement occurred while the driver was operating the bus or limousine of the charter-party carrier. (Veh. Code, § 14602.9, subd. (b).)

Existing law authorizes a peace officer may impound a bus or limousine belonging to a passenger stage corporation for 30 days if the officer determines that specified violations related to a certificate of public convenience and necessity issued by the CPUC or for not having the proper driver’s license occurred while the driver was operating the bus or limousine. (Veh. Code, § 14602.9, subd. (c).)

Existing law requires, within two working days after impoundment, the impounding agency to send notice to the legal owner of the vehicle informing the owner that the vehicle has been impounded and requires the impounding agency to provide information regarding the impoundment of vehicles and the rights of a registered owner to request a hearing. (Veh. Code, § 14602.9, subd. (d).)

Existing law states that the registered and legal owner of a vehicle that is impounded by law enforcement shall be provided the opportunity for a storage hearing to determine the validity of, or consider any mitigating circumstances attendant to, the storage (or impound). (Veh. Code, § 14602.9, subd. (e) and 22852.)

Existing law provides that the impounding agency shall release the vehicle to the registered owner or the legal owner prior to the end of the impoundment period in certain specified circumstances. (Veh. Code, § 14602.9, subds. (f), (h).)

This bill authorizes the CPUC to impound a vehicle owned or operated by a charter-party carrier, and starting July 1, 2019 a vehicle owned or operated by a passenger stage corporation, if the CPUC determines that the passenger stage corporation, or or any officer, director, or agent, is engaged in acts or practices in violation of the Public Utilities Act, or any order, decision, rule, regulation, direction, demand, or requirement issued under the act.

This bill states that the CPUC shall not exercise its power to impound until it amends its existing general orders, resolutions, or decisions as necessary to provide for a prompt and fair administrative review of the decision to impound a vehicle and shall consider adopting existing impoundment protections and rules as outlined in Vehicle Code section 14602.9.

This bill states that the CPUC shall not exercise this authority absent the presence of a California Highway Patrol (CHP) officer or an officer from a law enforcement agency in the city, county, or city and county where the vehicle is located, unless impoundment occurs on airport property.

This bill provides that the registered owner, and not the legal owner, shall remain responsible for any towing and storage charges related to the impoundment, any administrative charges authorized pursuant to the provisions in this bill, and any parking fines, penalties, and administrative fees incurred by the registered owner.

COMMENTS

1. Need for this Bill

According to the author of this bill:

In response to a request by the Joint Legislative Budget Committee, the State Auditor developed and released a report in June 2014 concerning the CPUC’s [Transportation Enforcement Branch] TEB’s efforts to regulate passenger carriers, as well as its use of the fees it collects from these carriers. The report concluded that the “branch does not adequately ensure that passenger carriers comply with state law.” The Auditor’s report cited 17 areas within TEB’s efforts that are lacking and merit improvement, including lack of staff training, a lack of procedures for processing complaints, failure to complete investigations and issue citations in a timely manner, and many others. The Auditor’s report also provided a series of recommendations to address the many failures and shortcomings and to improve the TEB’s efforts to ensure carrier and public safety. SB 541 (Hill, Chapter 718, Statutes of 2015) codified many of the recommendations from that Auditor Report, and included a provision granting peace officers impoundment authority for transportation services under CPUC jurisdiction.

. . . .

The lack of PUC impoundment authority was noted in a 2017 Crowe Horwath audit; an audit called for under SB 541.4 [Audit attached to email.] On pg. 3-8 of the audit it notes: “Unlicensed ‘rogue’ carriers, who usually are a greater threat to public safety than licensed carriers, are not enforced against as effectively given the lack of targeted tools and the longer investigation time per case. TEB does not have impound authority or the ability to follow up on fines issued to unlicensed carriers. Carriers cited for operating without a license can easily close the business and re-open under another name, unbeknownst to TEB Enforcement or Licensing staff. The current tracking systems do not have the ability to identify repeat violators. A survey respondent stated that “when it comes to unlicensed carriers, we do not have much power.” Enforcement staff do occasionally participate in sting operations at airports with other agencies, but do not regularly conduct stings at other events (such as major award programs or sporting events) that attract unlicensed carriers.”

The audit then recommends TEB gain impound authority in order to significantly improve its ability to regulate carriers. Last year, SB 19 (Hill, Chapter 421, Statutes of 2017) adopted many of the reforms mentioned in the Crowe Horwath audit, principally the transfer of a number of CPUC transportation oversight duties to other agencies. An early version of SB 195 included a provision permitting the CPUC to impound vehicles; however that provision was removed from the final bill.

1. Background on Passenger Stage Corporations and Charter-Party Carriers

A passenger stage corporation generally charges individual fares and provides scheduled service, over fixed routes, between fixed points, although the definition does not include regularly scheduled bus service operated by a publicly owned transit system. Another type of passenger stage corporation provides on-call service, for example, door-to-door airport shuttle service where all transportation begins or ends at a single terminus, such as an airport.

Charter-party carriers are generally chartered by a person or group called the “chartering party”. Usually, the chartering party is also taking the transportation, but the chartering party may also arrange the transportation on behalf of another person or group, such as an employee or client, or parents chartering a limousine for a minor son or daughter’s prom night. Usually, the chartering party has control over the transportation, specifically, when and where the trip originates and ends, and the itinerary in between. The transportation provided by a charter-party carrier must be arranged beforehand. Unlike passenger stage corporations, charter-party carriers may not charge individual fares. Instead, charter-party carriers must charge fares based on vehicle mileage, or time of use, or a combination of the two. Charter-party carriers do not include taxis which are licensed and regulated by cities and counties.

Neither of these types of transportation providers need to be a corporation; an individual or other type of company or partnership can apply for passenger stage corporation or charter-party carrier authority. (CPUC, Basic Information for Passenger Carriers and Applicants (Nov. 2014) <http://www.cpuc.ca.gov/uploadedFiles/CPUC_Public_Website/Content/Utilities_and_Industries/Passenger_Carriers_and_Movers/BasicInformationforPassengerCarriersandApplicants_Nov2014_11172014lct.pdf> [as of Apr. 16, 2018].)

1. Legislative History

SB 19 (Hill), Chapter 421, Statutes of 2017 made various changes to the Public Utilities Act. When the bill was being considered, the bill contained language authorizing the CPUC to impound a vehicle owned or operated by a charter-party carrier or passenger stage corporation. This language was amended out of the bill before the bill was signed into law. The committee has been informed that the impound language was removed due to concerns about feasibility of the impound.

This bill contains similar language to the impound language that was amended out of SB 19, but this bill adds the following components: (1) the CPUC shall not exercise this authority absent the presence of a CHP officer or other appropriate law enforcement officer unless occurring at an airport; (2) the CPUC shall consider adopting existing impoundment protections and rules as outlined in Vehicle Code section 14602.9; and (3) specifies that the registered owner, not the legal owner, shall remain responsible for any towing and storage charges related to the impoundment, any administrative charges authorized pursuant to the provisions in this bill, and any parking fines, penalties, and administrative fees incurred by the registered owner.

1. State Auditor Report

In 2014, the California State Auditor conducted an audit of the CPUC’s transportation enforcement branch’s efforts to regulate passenger carriers:

Through the efforts of the [transportation enforcement] branch the commission is responsible for ensuring that passenger carriers—for‑hire limousines, for example—comply with requirements to have branch‑issued permits, which include regular inspections by the California Highway Patrol, applicable insurance, and participation in driver safety programs. . . .

This report concludes that the branch does not adequately ensure that passenger carriers comply with state law. Specifically, we found that the branch has not established formal policies and procedures for staff to follow when addressing complaints against passenger carriers, and it does not ensure that staff resolve these complaints in a timely or adequate manner. Without formal guidance, investigators have not always ensured that passenger carriers comply with critical safety requirements. In addition, when the branch’s investigators have issued citations to passenger carriers, the citations have been for amounts much lower than state law allows.

(California Bureau of State Audits, California Public Utilities Commission: It Fails to Adequately Ensure Consumers’ Transportation Safety and Does Not Appropriately Collect and Spend Fees From Passenger Carriers, Report 2013-130 (Jun. 2014) p. 47.) In regards to impoundment of vehicles, the report noted:

State law allows peace officers to impound vehicles when making arrests of passenger carriers operating illegally. However, this authority to impound vehicles does not clearly extend to the branch’s investigators, who can—under state law—perform some peace officer activities. We believe the commission should explore revisions of state law to allow its investigators to impound vehicles when illegal carriers refuse to comply with commission orders or refuse to pay penalties for operating illegally.

Impounding vehicles and intercepting state payments to carriers could be effective tools to encourage passenger carriers to comply with state law and pay their outstanding fines. When we discussed this possibility with a branch supervisor, he agreed that these actions could be useful tools but said there are practical barriers to implementing these ideas. Specifically, the branch does not have Social Security numbers for all carriers (footnote omitted) and does not have space to store impounded vehicles. These concerns need to be addressed as the commission examines the feasibility of using these approaches to increase carrier compliance.

(Id. at p. 27-28.) The audit recommended that the CPUC examine and formally report on the feasibility of impounding the vehicles of passenger carriers that refuse to comply with commission orders or that refuse to pay citation penalties. (Id. at p. 47)

In 2017, pursuant to a mandate in SB 541 (Hill), Chapter 718, Statutes of 2015, Crowe Horwath L.L.P. conducted an independent study evaluating the CPUC’s regulation of passenger and property transportation. Of relevance to this bill, the report stated that impound authority would significantly improve the transportation enforcement branch of the CPUC’s ability to regulate carriers and suggested adding “Investigators of the [Consumer Protection and Enforcement Division] CPED” to the Public Utilities Code sections 5411.5 and 1045, and to Vehicle code section 14602.9. (Transportation Enforcement Branch Management and Operations Review – Report and Recommendations, Crowe Horwath (Jan. 2017) <http://www.cpuc.ca.gov/uploadedFiles/CPUC_Public_Website/Content/About_Us/Organization/Divisions/Consumer_Services_and_Information_Division/02-08-17CPUCTEBreport-revisedcoverletter.pdf> [as of Apr. 17, 2018].)

Instead of adding CPED investigators to Vehicle code section 14602.9, or Public Utilities Code section 5411.5 (authorizes peace officers to impound illegally operated charter-party carrier) or section 1045 (authorizes CPUC to grant or deny an application for a new certificate to operate as a passenger stage corporation whenever it appears that a prior certificate of the applicant has been canceled or revoked for specified activities), this bill provides broad authority for the CPUC to impound vehicles and states that the CPUC shall consider adopting the protections and procedures required under Vehicle Code section 14602.9.

1. Impoundment: Constitutional Considerations

Under existing law, the executive director of the CPUC may seek to impound a vehicle owned or operated by a passenger stage corporation when the executive director determines that the passenger stage corporation, or any officer, director, or agent of the passenger stage corporation, has engaged in, is engaged in, or is about to engage in, any acts or practices in violation of the applicable requirements on passenger stage corporations, or any order, decision, rule, regulation, direction, demand, or requirement issued.

This bill removes the court’s involvement in ordering a vehicle to be impounded and instead places this authority with the CPUC. The standard for impoundment would be if the CPUC determines, through its enforcement, consumer protection or legal staff, that a passenger stage corporation, or any officer, director, or agent of the passenger stage corporation, is engaged in any acts or practices in violation of the Public Utilities Act, or any order, decision, rule, regulation, direction, demand, or requirement issued under the act. The bill adds similar authority for CPUC to impound a vehicle owned or operated by a charter-party carrier. This bill specifies that the CPUC shall consider adding in the procedures and protections provided in existing law that authorizes a peace officer to impound a vehicle owned or operated by a passenger stage corporation or a charter-party carrier for failing to have a proper permit or certificate issued by the CPUC. This bill prohibits the CPUC from exercising this authority absent the presence of CHP officer or other law enforcement agency in the city, county, or city and county where the vehicle is located, unless impoundment occurs on airport property. (Note: According to the author, TEB already partners with airports, primarily LAX, to impound rouge vehicles.)

• 1. Due Process

The Due Process clause contained in article I, section 7, subdivision (a) of the California Constitution provides:  “A person may not be deprived of life, liberty, or property without due process of law.” The federal Due Process clause, which is contained in section 1 of the Fourteenth Amendment to the United States Constitution, provides: “[N]or shall any State deprive any person of life, liberty, or property, without due process of law.”

Due process generally requires that a person receive notice of and an opportunity for a hearing before his property is seized. (Mathews v. Eldridge (1976) 424 U.S. 319, 333.) Due process does not necessarily require a judicial hearing; an administrative hearing may be sufficient depending on the circumstances. (Alviso v. Sonoma County Sheriff’s Dept. (2010) 186 Cal.App.4th 198, 211.)

In Alviso, defendant challenged the constitutionality of Vehicle Code section 14602.6 which authorizes a peace officer to impound a vehicle for 30 days when a driver has been found to be driving on a suspended license. The court analyzed defendant’s due process challenge by considering the following: First, the private interest that will be affected by the official action; second, the risk of an erroneous deprivation of such interest through the procedures used, and the probable value, if any, of additional or substitute procedural safeguards; and finally, the Government's interest, including the function involved and the fiscal and administrative burdens that the additional or substitute procedural requirement would entail. (Ibid; citing Matthews v. Elridge, supra, 424 U.S. at pp. 334-335.) The court, after weighing all of the factors found that the hearing procedure required in Vehicle Code section 22852 “adequately reconciles the competing interests of the parties: the private interest in avoiding the cost and disruption entailed by impoundment of one's automobile; the relatively low risk of erroneous deprivation given the straightforward nature of most of the determinant factors; and the governmental interest in efficiently and effectively keeping the most dangerous drivers off the road.” (Id. at p. 214.) Thus the court concluded that the impound scheme did not violate due process.

This bill authorizes the CPUC to impound vehicles owned or operated by a passenger stage corporation or a charter-party carrier upon a determination that there has been a violation of the Public Utilities Act’s requirements, or of any order, decision, rule, regulation, direction, demand, or requirement issued pursuant to those requirements. The bill requires the CPUC to amends its existing general orders, resolutions, or decisions as necessary to provide for a prompt and fair administrative review of its decision to impound a vehicle. The bill states that the CPUC shall consider adopting existing impoundment protections and rules as outlined in Vehicle Code section 14602.9, which among other things requires a hearing pursuant to Vehicle Code section 22852 and the opportunity for legal owners and have their vehicles returned to them prior to the end of the 30 day impound.

Vehicle Code section 14609.2 provides clear violations that would authorize a law enforcement officer to impound a vehicle owned or operated by a passenger stage corporation or a charter-party carrier. This bill provides broader authority to the CPUC to impound a vehicle based on a violation of any of the Public Utilities Act’s requirements, or of any order, decision, rule, regulation, direction, demand, or requirement issued pursuant to those requirements. While this bill does direct the CPUC to provide for a prompt and fair administrative review of the decision to impound, it is unclear whether, on balance of all of the factors, this is enough to provide adequate due process.

• 1. Fourth Amendment Seizure

The Fourth Amendment to the United States Constitution protects the people and their effects “against unreasonable searches and seizures.” Article I, section 13 of the California Constitution also protects the right of the people to be secure against unreasonable searches and seizures.

Recently, in Brewster v. Beck (9th Cir. 2017) 859 F.3d 1194, the Court of Appeals considered a Fourth Amendment challenge to Vehicle Code section 14602.6, the same section that was at issue in Alviso. Brewster loaned her vehicle to a driver with a suspended license. Los Angeles Police Department (LAPD) officers stopped the driver, discovered the suspension, and impounded the vehicle, relying on Vehicle Code section 14602.6. Three days later, Brewster appeared at a hearing before the LAPD with proof that she was the registered owner of the vehicle and her valid California driver’s license. Brewster offered to pay all towing and storage fees that had accrued, but the LAPD refused to release the vehicle before the 30-day holding period had lapsed. Brewster filed suit under 42 U.S.C. §1983, arguing the 30-day impound was a warrantless seizure that violated the Fourth Amendment.

The parties agreed that the initial seizure was authorized under community caretaking exception to the Fourth Amendment, which authorizes impound of vehicles that jeopardize public safety and the efficient movement of vehicular traffic. (Brewster v. Beck, supra, 859 F.3d at p. 1196, citing United States v. Cervantes (9th Cir. 2012) 703 F.3d 1135, 1141.) However, that the seizure of the vehicle was lawful at the outset was not determinative. A seizure is justified under the Fourth Amendment only to the extent that the government’s justification holds force. Thereafter, the government must cease the seizure or secure a new justification. Here, although the initial seizure had a legitimate public safety purpose, that justification vanished when Brewster showed up with proof of ownership and a valid driver’s license. Because the city failed to provide any justification for the continued retention of her car, the district court erred in granting its motion to dismiss. (Id. at p. 1197.)

This bill authorizes a vehicle owned or operated by a passenger stage coach or charter-party carrier to be impounded upon a determination that the entity has violated any of the Public Utilities Act’s requirements, or of any order, decision, rule, regulation, direction, demand, or requirement issued pursuant to those requirements. The purpose of this bill is presumably to enforce its laws and rules against common carriers who pose a safety threat by not having the proper certificates or adequately maintaining their vehicles, and to provide an incentive to those entities that have been fined for certain violations and fail to pay those fines. That purpose may be justified under the caretaker exception to the Fourth Amendment because arguably some of those violations pose a threat to public safety, however, any prolonged impoundment would require further justification. This bill is silent on how long a vehicle may be impounded and what circumstances would authorize an owner to retrieve the vehicle. The bill states that the CPUC shall consider adopting the procedures in Vehicle code section 14609.2 which authorizes a 30 day impound, with specified circumstances that would allow an owner to retrieve the vehicle earlier than the 30 days. Since CPUC is not required to adopt those procedures, the authority to impound provided by this bill may violate the Fourth Amendment.

1. Argument in Support

The Greater California Livery Association writes in support of this bill:

Currently, the California Public Utilities Commission lacks effective enforcement efforts and effective enforcement tools. Without efforts to safely regulate our industry, legal and illegal operators understand that current rules, operating requirements, and any possible violate fines are meaningless. The lack of enforcement by the CPUC and the lack of effective enforcement tools jeopardizes the safety of the public and diminishes the viability of the charter party industry. The passage of Senate Bill 1474 will go a long way to enhance enforcement of California law and regulation, penalize non-compliance operators and provide incentive to comply with the laws and standards governing our industry.

-- END –