BILL ANALYSIS
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THIRD READING
Bill No: AB 2762
Author: Assembly Utilities and Commerce Committee
Amended: 8/7/00 in Senate
Vote: 21
SENATE ENERGY, U.&C. COMMITTEE : 8-0, 6/13/00
AYES: Bowen, Alarcon, Brulte, Kelley, Mountjoy, Murray,
Peace, Solis
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
ASSEMBLY FLOOR : 74-0, 5/11/00 - See last page for vote
SUBJECT : Common carriers: passenger vehicle
SOURCE : California Bus Association
DIGEST : This bill authorizes the Public Utilities
Commission to establish a uniform fee for the passenger
vehicle operators class on a basis other than revenue.
ANALYSIS : Current law establishes a program run by the
California Public Utilities Commission (PUC) to ensure the
safe operation of passenger carriers (i.e., SuperShuttle,
limousines, charter busses). This program is paid for by
fees on the carriers which are based on a uniform
percentage of their individual gross revenues.
This bill permits the PUC to move away from a revenue-based
assessment system and to use a system that's based on a
per-vehicle assessment.
CONTINUED
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The bill declares that it is declarative of existing law
and nothing in its provisions restrict the PUC from
establishing other carrier classes, as specified.
Background
The CPUC regulates passenger carriers to ensure their
drivers are properly licensed, the vehicles are properly
maintained, and the companies are properly insured.
Certain passenger carriers are also subject to rate
regulation. These activities are funded by a fee of
one-half of one percent of the carrier's gross revenue - a
fee that raises about $3 million per year.
Under the current system, the CPUC determines how much
money it needs in order to operate its inspection program,
then calculates the fee necessary to provide that level of
funding. This bill doesn't change that process, but it
gives the PUC the option of calculating the fee on a
per-vehicle basis instead of a gross revenue basis.
Comments
1. Cover the Costs . The California Bus Association, the
sponsor of this bill, believes allowing the PUC to fund
its program on a "per vehicle" basis is a fairer way of
operating the program. While the entire program is only
supposed to be funded at a level that covers its costs,
doing it on a per company revenue basis means some
companies are over-paying for the cost of regulating
their vehicles while other companies are under paying.
2. The Pie Stays the Same - It's How You Cut the Pieces .
The PUC's collection of fees to cover the costs of this
program is a zero sum game. The PUC incurs a given level
of expenses to do its work, and those expenses are
covered by a fee assessed on the revenues of the carriers
who are being regulated and inspected.
Presumably, the sponsor of this bill believes that if the
PUC exercises the authority provided to it in this bill,
it will reduce the fees paid by bus companies to fund
this program. If that does indeed occur, the revenue
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loss will be made up by other passenger carriers.
3. Fairness is in the Eye of the Beholder . Setting fees on
a per-vehicle basis rather than a percentage of revenue
basis has the advantage of administrative simplicity and
eliminates the need for carriers to report their gross
operating revenues. Presumably, the cost of regulating
passenger carriers is driven by the vehicles inspected,
not by the gross revenue of the individual company.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
SUPPORT : (Verified 8/8/00)
California Bus Association (source)
ASSEMBLY FLOOR
AYES: Aanestad, Ackerman, Alquist, Aroner, Ashburn,
Baldwin, Bates, Bock, Brewer, Briggs, Calderon, Campbell,
Cardenas, Cardoza, Cedillo, Corbett, Correa, Cox,
Cunneen, Davis, Dickerson, Ducheny, Dutra, Firebaugh,
Floyd, Gallegos, Granlund, Havice, Honda, House, Jackson,
Kaloogian, Keeley, Knox, Kuehl, Leach, Lempert, Leonard,
Longville, Lowenthal, Machado, Maddox, Maldonado,
Margett, Mazzoni, McClintock, Migden, Nakano, Olberg,
Oller, Robert Pacheco, Rod Pacheco, Papan, Pescetti,
Reyes, Romero, Runner, Scott, Shelley, Steinberg,
Strickland, Strom-Martin, Thompson, Thomson, Torlakson,
Villaraigosa, Vincent, Washington, Wayne, Wesson,
Wiggins, Wildman, Zettel, Hertzberg
NC:kb 8/9/00 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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