BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

In the matter of the Order Instituting Investigation on the Commission's Own Motion Into the Operations and Practices of Wine & Roses Limousine Service, a California Corporation, doing business as AA Limousine, AAA Limousine, Expresso Limousine, Expresso Transportation, AAA Corporate Limousines, Total Transportation Network (TTN), and LaGrande Affaire (PSG-12361-P-B), and its President, Steve Bonner, to determine whether they have violated the laws, rules, and regulations governing the manner in which charter-party carriers conduct operations and whether they are fit to continue to conduct passenger transportation service. Respondents.

FILED PUBLIC UTILITIES COMMISSION JUNE 30, 2005 SAN FRANCISCO OFFICE I.05-06-042

ORDER INSTITUTING INVESTIGATION

The California Public Utilities Commission (Commission) regulates intrastate passenger carrier transportation operations on the public highways pursuant to the California Constitution (Article XII), the Passenger Charter-Party Carriers' Act (Public Utilities Code sections 5351 et seq.) and General Orders [G.O.'s] 115-F, 157-C, and others. These laws require passenger carriers to maintain proof of adequate public liability and property damage insurance, to maintain accurate records, to establish reasonable fitness to conduct their passenger transportation service, and to operate safely. In addition, they impose specific requirements on charter-party carriers to promote carrier and public safety.

They require that charter-party carriers comply with the California Vehicle Code (CVC) and participate in the Pull Notice Program of the Department of Motor Vehicles (DMV). Charter Party Carriers also are required to establish reasonable fitness and financial responsibility to conduct their passenger transportation services. These regulations are intended to ensure that only properly qualified, licensed drivers operate carrier vehicles and that carriers comply fully with regulations contained in Title 13 of the California Code of Regulations (13 CCR). Consumer Protection and Safety Division's (CPSD) initial investigation into the operations of Wine & Roses Limousine Service (Wine & Roses) disclosed the possibility of numerous violations of the Passenger Charter-Party Carriers' Act and of the Commission's rules and regulations.

I. HISTORY

On October 19, 1999, Wine & Roses was issued a Class P Charter-Party permit. Passenger charter-party authority may be renewed on a triennial basis upon submission and approval of a renewal application. The carrier filed a renewal application on November 18, 2002, and the permit was renewed on December 2, 2002. Records on file in the Commission's License Section show various suspensions of the operating authority of Wine & Roses, including a suspension and subsequent revocation from October 6, 2003, to January 26, 2004, for failure to maintain evidence of workers' compensation insurance coverage on file with the Commission. On October 6, 2004, an Order of Suspension was mailed via first class mail to the carrier's address of record. On January 4, 2004, a certificate of workers' compensation insurance was filed by the State Compensation Insurance Fund and recorded by the Commission. Wine & Roses' permit was reinstated from revocation, effective January 26, 2004.¹

On December 14, 2004, CPSD served Steve Bonner, president of Wine & Roses, with Citation Forfeiture F-5128, which imposed a penalty of $7,500, citing violations of the Public Utilities Code and G.O. 157-C. Mr. Bonner denied the Citation on December 16, 2004, stating that he had corrected all the named violations and therefore should not be penalized.

On January 26, 2005, CPSD conducted a follow-up investigation and found that Wine & Roses had failed to correct some of the violations cited in Citation Forfeiture F-5128. Furthermore, the CPSD's investigation disclosed continued violations of the Public Utilities Code and General Order 157-C requirements, including: operations during a period of permit suspension, failing to enroll all drivers in the Department of Motor Vehicles Pull Notice Program, employing drivers who lacked the proper driver's license to operate its vehicles, failing to conduct pre-employment drug and alcohol testing of all drivers, operating vehicles with a seating capacity of more than 15 passengers without the required charter-party carrier certificate, and operating a vehicle with a seating capacity of 16 passengers or more without the required $5,000,000 public liability insurance coverage as required by General Order 115-F.

Accordingly, on June 7, 2005 CPSD issued and served a second citation, Citation Forfeiture No. F-5152, upon Mr. Bonner. The citation imposed an additional fine of $ 7,500, citing the above violations of the Public Utilities Code, along with General Orders 115-F and 157-C, and directing him to respond by June 22, 2005. On June 22, 2005, the Commission received a response from Mr. Bonner denying this citation.