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HomeMy WebLinkAboutAB 1551 LTR to Torres 20120417off. 0 Q * cat o sin is oBi OFFICE OF THE CITY COUNCIL SPO �l 4 / g O� 990 Palm Street ■ San Luis Obispo, CA 93401-3249 ■ 805/781-7119 April 17, 2012 VIA FACSIMILE ONLY 916-319-2161 The Honorable Norma Torres California State Assembly State Capitol, Room 4167 Sacramento, CA 95814 RE: AB 1551 Insurance: public safety employees: accidents NOTICE OF OPPOSITION Dear Assembly Member Torres: The City of San Luis Obispo regrets to inform you of our opposition to AB 15.51. AB 1551 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. This shift of liability for accidents involving personal vehicles from individuals to public employers, like the City of San Luis Obispo, is inappropriate and unnecessary. If enacted, cities that employ public safety personnel will face increased liability for employees who drive their personal vehicles for work purposes which will increase employers' insurance costs. It is inappropriate to' shift the costs of accidents to employers when mileage reimbursement rates already cover the cost of insurance. 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. The IRS defines "fixed costs" to include depreciation or lease payments, insurance, registration and license fees and personal property taxes. Variable costs include gasoline, oil, tires, and routine maintenance and repair. 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 Luis oBispo The Honorable Norma Torres April 17, 2012 Page 2 This range of approaches suggests that statewide, one -size -fits -all solutions are 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 opposes AB 1551. Sincerely, 4V0.4.X an Marx Mayor cc: Paul Riches, Principal Consultant, Assembly Insurance, fax 916 319-2186 Kevin Hanley, Consultant, Republican Caucus, fax 916 319-3902 Natasha Karl, League of California Cities, fax 916 658-8240 Assembly Member Sam Blakeslee, 916-445-8081 Senator Abel Maldonado, fax 916-319-2033 David Mullinax, League of California Cities, fax 805-456-0123