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HomeMy WebLinkAboutSB 2298 LTR to Gov. Brown 20120917Ott 0 city of sAn Luis oBi ina)n ISPO OFFICE OF THE CITY COUNCIL 990 Palm Street ■ San Luis Obispo, CA 93401-3249 ■ 805/781-7119 September 17, 2012 VIA FACSIMILE ONLY 916-558-3177 The Honorable Edmund G. Brown, Jr. Governor, State of California State Capitol Building Sacramento, CA 95814 RE: AB 2298 (Solorio) Insurance: public safety employees: accidents. Request for Veto Dear Governor Brown: The City of San Luis Obispo respectfully requests that you veto AB 2298, 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. AB 2298 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 related costs already covered by mileage reimbursement rates. When 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 includes depreciation or lease payments, insurance, registration and license fees and personal property taxes. 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. AB 2298'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. Moreover, what is perhaps most troubling is the complete shift of indemnification and financial responsibility to the employer regardless of a driver's fault. The bill does not provide any exception to liability when the driver may have been driving negligently. It is unreasonable to require public agencies to bear all responsibility in such cases. city of San 1UIS OBISpo Re: SB 2298 September 17, 2012 Page 2 For these reasons, the City of San Luis Obispo requests that you veto this bill. Sincerely, VA11U-1 J Marx Mayor cc: City Council Natasha Karl, League of California Cities, Fax: (916) 658-8240 David Mullinax