BILL ANALYSIS AB 2762 Page 1 Date of Hearing: April 24, 2000 ASSEMBLY COMMITTEE ON UTILITIES AND COMMERCE Roderick Wright, Chair AB 2762 (Assembly Utilities and Commerce Committee) - As Introduced: April 24, 2000 SUBJECT : Common carriers: annual fee. SUMMARY : Permits California Public Utilities Commission (CPUC) to establish alternate fee structures to finance the regulation of specified classes of common carriers. Specifically, this bill : Allows CPUC to assess fees on passenger vehicle operators on a basis other then revenue, including on a per vehicle basis, in order to cover costs associated with conducting licensing, enforcement, and investigation activities for that class of carrier. EXISTING LAW: 1)Requires CPUC to impose a fee on common carriers and related businesses to finance the regulation of those entities by CPUC. 2)Requires CPUC to allocate the amount of CPUC's budget to be financed by the fee based on the ratio that each member's gross intrastate revenue bears to the total gross intrastate revenues of the class. 3)Requires CPUC to establish uniform fees for every carrier and related business having annual gross intrastate revenues of $100,000 or less. FISCAL EFFECT : Unknown. COMMENTS : 1)Vehicle common carriers regulated by CPUC include two primary classes of carriers: passenger stage corporations and charter-party carriers. A passenger stage corporation (PSC) provides transportation to the general public and typically operates a scheduled, fixed-route service or an on-call airport shuttle service. PSCs also are required to file their AB 2762 Page 2 terms of service with CPUC, which they must observe on a nondiscriminatory basis. There are approximately 200 licensed passenger state corporations in the state. 2)Charter party carriers generally contract to provide a vehicle for the exclusive use of an individual or group. Charter party carriers are not required to file tariffs with CPUC, nor is the level of their charges to customers subject to regulation. There are approximately 2,700 carriers that hold charter party operating authority from CPUC. 3)Under current law, both of these carriers are required to pay an annual fee determined by CPUC that goes towards paying CPUC's costs for regulating the carriers. Currently the fee is set at of 1% of carrier gross operating revenue. 4)This bill authorizes CPUC to modify the current fee structure for passenger vehicle common carriers. The sponsor asserts that this bill will bring fees more in line with the actual costs incurred by CPUC in the course of its regulatory activities with regards to these carriers. 5)Figures provided by CPUC for 1998-99 fiscal year indicate that of the 162 administrative citation fines imposed against passenger carriers, three (about 2%) were assessed against operators of full-size charter buses. CPUC indicates that the majority of the citations were issued to operators of limousine or sedan services. Further, CPUC indicates that only two to three percent of staff resources went to enforcement activities related to full-size charter bus issues. This bill allows CPUC to assess fees to passenger vehicle operators commensurate to the costs of regulating those carriers rather than on a revenue basis, which is not at all related to the actual costs, incurred by CPUC. This bill does not result in any net loss to CPUC, as CPUC can adjust its fees to place greater financial resources toward those activities utilizing greater portions of staff time. REGISTERED SUPPORT / OPPOSITION : Support California Bus Association (sponsor) Opposition AB 2762 Page 3 None on file. Analysis Prepared by : Jonathan Buttle / U. & C. / (916) 319-2083