BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2762
                                                                  Page  1

          Date of Hearing:   May 3, 2000

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS 
                              Carole Migden, Chairwoman

           AB 2762 (Utilities and Commerce Committee) - As Amended:  April  
                                      24, 2000 

          Policy Committee:                              Utilities and  
          Commerce     Vote:                            8-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:               

           SUMMARY  

          This bill allows the Public Utilities Commission (PUC) to assess  
          regulatory fees on passenger carriers on a basis other than the  
          operating revenues of each carrier.

           FISCAL EFFECT  

          Minor absorbable special fund costs to the PUC if it elects to  
          change the fee structure.

           COMMENTS  

           1)Background  .  Vehicle common carriers regulated by PUC include  
            two primary classes of carriers: passenger stage corporations  
            and charter-party carriers.  Passenger stage corporations  
            provide transportation to the general public and typically  
            operate a scheduled, fixed-route service or an on-call airport  
            shuttle service.  Charter party carriers generally contract to  
            provide a vehicle for the exclusive use of an individual or  
            group.  Both classes of carriers are required to pay an annual  
            fee as established by the PUC to cover its regulatory costs.  

           2)Purpose  .  According to the sponsor, the California Bus  
            Association, this bill is intended to bring the fees more in  
            line with the variable costs incurred by the PUC to regulate  
            different types of businesses within these classes of  
            carriers.  The PUC indicates that only three of the 162  
            administrative citation fines imposed against passenger  
            carriers in 1998-99 were assessed against operators of  
            full-size charter buses.  The majority of the citations were  








                                                                  AB 2762
                                                                  Page  2

            issued to operators of limousine or sedan services.  The PUC  
            further indicates that only about three percent of staff  
            resources went to enforcement activities related to full-size  
            charter bus issues.

           Analysis Prepared by  :    Chuck Nicol / APPR. / (916)319-2081