BILL NUMBER: AB 2430 ENROLLED
BILL TEXT
PASSED THE ASSEMBLY AUGUST 24, 2004
PASSED THE SENATE AUGUST 19, 2004
AMENDED IN SENATE AUGUST 9, 2004
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 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, 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 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 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. This bill would impose a
state-mandated local program by requiring local governments, until
January 1, 2009, to give reasonable notice of this requirement with
any business license renewal notification and to maintain as a public
record every business license issued by the 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 the insurance coverage required
by the bill. 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 also 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 specified reasons.
(3) The bill would declare that it is to take effect immediately
as an urgency statute.
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 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.
(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 for
certain costs that may be incurred by a local agency or school
district because in that regard a local agency or school district has
the authority to levy service charges, fees, or assessments
sufficient to pay for the program or level of service mandated by
this act, within the meaning of Section 17556 of the Government Code.
Moreover, reimbursement is required by this act pursuant to Section
6 of Article XIII B of the California Constitution for certain costs
that may be incurred by a local agency or school district because in
that regard 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.