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