PUC Slaps Moratorium on Charter Bus Permits

The California Public Utilities Commission Wednesday imposed a moratorium on all license applications for new charter bus companies pending the outcome of an extensive review of safety regulations.

The unanimous action by the five commissioners followed a May 30 accident of a Starline sightseeing tour bus that killed 21 elderly Santa Monica and Los Angeles residents and raised questions about charter bus safety.

The PUC, whose regulation of charter buses has been widely criticized since the crash, said it will not issue new permits at least through Oct. 1 and called for a series of meetings next month in San Francisco and Los Angeles to develop new bus safety standards and fully examine the issues. The California Highway Patrol, the Department of Motor Vehicles and representatives of the tour bus industry will be asked to participate.

The moratorium comes amid growing concern by legislators and even some industry leaders, who blame safety problems on deregulation, the insurance crisis and the bureaucratic fragmentation of responsibility for public safety.

Plunged Into River

“We must reexamine the PUC’s relationships with the DMV and the CHP,” said Commissioner Stanley W. Hulett, who made the motion for the moratorium. There have been complaints about a lack of coordination among the three agencies since the Starline bus plunged into the Walker River south of Reno.

The DMV and the CHP regulate charter bus drivers and the mechanical safety of the buses, while the PUC licenses bus operators after determining that they have the required insurance coverage and safe equipment.

Hulett said participants in the workshops will hopefully establish better working relationships and propose legislative solutions to tightening safety regulations. He also called for an investigation of reports that some charter bus drivers carry more than one driver’s license in an effort to conceal porr driving records.

Commission Executive Director Victor Weisser pointed out that because the bus was returning from a trip to Nevada, the crash fell under the regulatory authority of the Interstate Commerce Commission.

Driver Qualifications

However, the ICC does not concern itself with either bus safety or driver qualifications, its officials have said. Weisser was critical of the ICC, contending that the federal agency does little to regulate charter buses in California or cooperate with the PUC.

During the workshops, the commissioners will also explore the possibility of tightening financial requirements for new tour bus companies.

Since the PUC ordered the industry deregulated in the mid-1970s, the number of charter bus companies has increased from 400 to nearly 3,000, PUC officials report.