HomeMy WebLinkAboutAB 1551 LTR to Blakeslee 20120823V9
GV t Y off.
O44 * cityof sAnluis oBispo
0
JQ�
� OFFICE OF THE CITY COUNCIL
/ g O 990 Palm Street ■ San Luis Obispo, CA 93401-3249 ■ 805/781-7119
August 23, 2012
VIA FACSIMILE ONLY 916-651-4015
The Honorable Sam Blakeslee
California State Senate
State Capitol, Room 4066
Sacramento, CA 95814
RE: AB 1551 Insurance: public safety employees: accidents
NOTICE OF OPPOSITION
Dear Senator Blakeslee:
The City of San Luis Obispo urges your NO vote on AB 1551, authored by Assembly
Member Torres, which proposes to exempt certain public safety officers from a requirement to
report accidents that occur in a personal vehicle to a personal insurance provider and instead
report those accidents to the employer.
It shifts liability for accidents involving personal vehicles from individuals to public
employers (cities, counties, and the state). If enacted, employers of public safety personnel will
face increased liability for employees who drive their personal vehicles for work purposes which
will increase employers' insurance costs and already covered by mileage reimbursement rates.
When city employees use their personal vehicles for work purposes they are typically
reimbursed at the Internal Revenue Service (IRS) established mileage rates or, in some cases,
mileage rates that are negotiated with their employer. According to IRS guidelines, the standard
mileage rate for business is based on an annual study of the "fixed and variable costs" of
operating an automobile, which include depreciation or lease payments, insurance, registration
and license fees and personal property taxes.
It is unnecessary to make this change because local jurisdictions have adopted policies
and memoranda of understanding to address liability for accidents involving personal vehicles.
These policies best reflect local priorities and circumstances. Some municipal employers have
specifically negotiated this issue in their contracts with employees, others have adopted
employment policies that state if a personal vehicle is used then personal insurance is primary
with the employer's coverage as the excess provider.
city of san tins oBispo
The Honorable Sam Blakeslee
August 23, 2012
Page 2
AB 1551's one -size -fits -all solution is unnecessary. If represented employees believe
there is a problem, the local bargaining table is the appropriate place to address it. For these
reasons, the City of San Luis Obispo urges you to oppose AB 1551.
Sincerely,
Jan Marx
,Mayor
cc: City Council
Katie Lichtig
Natasha Karl, League of California Cities, fax 916 658-8240
David Mullinax, League of California Cities,