HomeMy WebLinkAboutAB 1551 LTR to Torres 20120417off.
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OFFICE OF THE CITY COUNCIL
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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