BILL NUMBER: AB 2430 AMENDED
BILL TEXT
AMENDED IN SENATE JUNE 30, 2004
AMENDED IN SENATE JUNE 16, 2004
AMENDED IN ASSEMBLY MAY 17, 2004
AMENDED IN ASSEMBLY APRIL 21, 2004
AMENDED IN ASSEMBLY APRIL 12, 2004
INTRODUCED BY Assembly Member Wiggins
(Principal coauthor: Senator Chesbro)
(Coauthor: Assembly Member Haynes)
(Coauthor: Senator Machado)
FEBRUARY 19, 2004
An act to amend and repeal Sections 5500 and 5501 of,
and to add and repeal Section 5513 to
of , the Public Utilities Code, relating to commercial air
carriers, and declaring the urgency thereof, to take effect
immediately.
LEGISLATIVE COUNSEL'S DIGEST
AB 2430, as amended, Wiggins. Commercial air carriers: hot air
balloons.
(1) Existing law requires the Public Utilities Commission to
require every commercial air operator, as defined, to procure and
continue in effect, adequate protection against liability for
personal bodily injuries and property damage as a result of an
accident, that may be imposed by law upon the operator and upon any
person using, operating, or renting an aircraft, as defined, with the
permission of the operator.
This bill would , until January 1, 2009, exclude from
the definition of commercial air operator a person or other
entity furnishing or providing transportation by hot air
balloon for entertainment or recreational purposes. The bill would
, until January 1, 2009, exclude from the definition of
aircraft a hot air balloon furnished or providing transportation for
entertainment or recreational purposes.
The bill, notwithstanding those provisions, would , until
January 1, 2009, require that any person providing
transportation by hot air balloon for hire, for entertainment or
recreational purposes, maintain in force at least $1,000,000 of
liability insurance for personal injury, wrongful death, and property
damage resulting from the operation of the a
balloon , with additional liability coverage of $100,000
for each passenger for any balloon carrying more than 10 passengers
. The bill would , until January 1, 2009, require
that a notice be provided to every passenger that identifies both the
insurer providing a policy of liability insurance to the person
providing that transportation and the amount of insurance coverage
provided by that policy.
The bill would, until January 1, 2009, require that any person
providing transportation by hot air balloon for hire, for
entertainment or recreational purposes, comply with any requirement
of a city, county, or city and county (local government) that the
person obtain a business license as a condition for operating in the
jurisdiction of the local government and to prominently display the
license at the person's primary place of business frequented by
customers and potential customers. Whenever a local government
requires a business license, any person providing transportation by
hot air balloon for hire, for entertainment or recreational purposes,
would, until January 1, 2009, be required to provide to the local
government a currently effective certificate of insurance evidencing
insurance coverage, at least annually or whenever there is a material
change in insurance coverage. A local government would, until
January 1, 2009, be required to give reasonable notice of this
requirement with any business license renewal notification. Every
business license issued by a local government to any person providing
transportation by hot air balloon for hire, for entertainment or
recreational purposes, and every currently effective certificate of
insurance evidencing insurance coverage, would, until January 1,
2009, be required to be maintained as a public record. A local
government would, until January 1, 2009, be authorized to charge a
reasonable fee for purposes of carrying out these provisions.
The bill would impose a state-mandated local program by making it
a misdemeanor to fail to obtain and maintain a current valid local
business license as required by the bill or to fail to maintain
insurance in force as required by the bill.
(2) The California Constitution requires the state to
reimburse local agencies and school districts for certain costs
mandated by the state. Statutory provisions establish procedures for
making that reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
(3) The bill would declare that it is to take effect
immediately as an urgency statute.
Vote: 2/3. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no yes .
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 5500 of the Public Utilities Code is amended to
read:
5500. (a) As used in this article, "commercial air
operator" means any person owning, controlling, operating, renting,
or managing aircraft for any commercial purpose for compensation.
"Commercial air operator" does not include any person owning,
controlling, operating, renting, managing, furnishing, or otherwise
providing transportation by hot air balloon for entertainment or
recreational purposes.
(b) This section shall remain in effect only until January 1, 2009,
and as of that date is repealed, unless a later enacted statute,
that is enacted before January 1, 2009, deletes or extends that date.
SEC. 1.5. Section 5500 of the Public Utilities Code is amended to
read:
5500. (a) As used in this article, "commercial air
operator" means any person owning, controlling, operating, renting,
or managing aircraft for any commercial purpose for compensation.
(b) This section shall become operative on January 1, 2009.
SEC. 2. Section 5501 of the Public Utilities Code is amended to
read:
5501. (a) As used in this article, "aircraft" means
any contrivance used for navigation of, or flight in, the air.
"Aircraft" does not include a hot air balloon furnished or providing
transportation for entertainment or recreational purposes.
(b) This section shall remain in effect only until January 1, 2009,
and as of that date is repealed, unless a later enacted statute,
that is enacted before January 1, 2009, deletes or extends that date.
SEC. 2.5. Section 5501 of the Public Utilities Code is amended to
read:
5501. (a) As used in this article, "aircraft" means
any contrivance used for navigation of, or flight in, the air.
(b) This section shall become operative on January 1, 2009.
SEC. 3. Section 5513 is added to the Public Utilities Code, to
read:
5513. (a) Notwithstanding any other provision of this
article, any person owning, controlling, operating, renting,
managing, furnishing, or otherwise providing transportation by hot
air balloon for hire, for entertainment or recreational purposes,
shall maintain in force at least one million dollars
($1,000,000) of liability insurance in a minimum
amount of one million dollars ($1,000,000) for injury to or wrongful
death of passengers or other persons, and for property damage,
resulting from operation of the balloon. A notice shall be
for personal injury, wrongful death, and property damage
resulting from the operation of a balloon carrying up to 10
passengers, with additional liability coverage of one hundred
thousand dollars ($100,000) for each passenger for any balloon
carrying more than 10 passengers. A notice shall be provided
to every passenger that identifies both the insurer providing a
policy of liability insurance to the person providing that
transportation and the amount of insurance coverage provided by that
policy.
SEC. 4.
(b) Any person owning, controlling, operating, renting, managing,
furnishing, or otherwise providing transportation by hot air balloon
for hire, for entertainment or recreational purposes, shall comply
with any requirement of a city, county, or city and county that the
person obtain a business license as a condition for operating in that
city, county, or city and county. Whenever a city, county, or city
and county requires a business license, any person owning,
controlling, operating, renting, managing, furnishing, or otherwise
providing transportation by hot air balloon for hire, for
entertainment or recreational purposes, shall prominently display the
license at the person's primary place of business frequented by
customers and potential customers. Whenever a city, county, or city
and county requires a business license, the person shall provide to
the city, county, or city and county, a currently effective
certificate of insurance evidencing insurance coverage as required in
subdivision (a). A new certificate of insurance shall be provided
to the city, county, or city and county, at least annually or
whenever there is a material change in insurance coverage. A city,
county, or city and county shall give reasonable notice of this
requirement with any business license renewal notification. Every
business license issued by a city, county, or city and county to any
person owning, controlling, operating, renting, managing, furnishing,
or otherwise providing transportation by hot air balloon for hire,
for entertainment or recreational purposes, and every currently
effective certificate of insurance evidencing insurance coverage,
shall be maintained as a public record. The city, county, or city
and county may charge a reasonable fee for purposes of carrying out
the provisions of this subdivision.
(c) Any person who violates subdivision (a) by failing to maintain
insurance in force as required by subdivision (a) is guilty of a
misdemeanor. Any person who violates subdivision (b) by failing to
obtain and maintain a current valid city, county, or city and county
business license issued by the local government jurisdiction where
the person's primary place of business is located, in accordance with
subdivision (b), is guilty of a misdemeanor.
(d) This section shall remain in effect only until January 1, 2009,
and as of that date is repealed, unless a later enacted statute,
that is enacted before January 1, 2009, deletes or extends that date.
SEC. 4. No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.
SEC. 5. This act is an urgency statute necessary for the
immediate preservation of the public peace, health, or safety within
the meaning of Article IV of the Constitution and shall go into
immediate effect. The facts constituting the necessity are:
The Public Utilities Commission currently requires the hot air
balloon industry in this state to obtain liability insurance
equivalent to that required for commercial airlines. Hot air balloon
companies cannot get the required insurance due to spiraling
insurance costs and a dwindling number of insurers. In order to
allow hot air balloon companies to seek more reasonable liability
insurance appropriate to the industry, and thereby making it possible
for those companies to stay in business, it is necessary that this
act take effect immediately.