BILL NUMBER: AB 145	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MARCH 31, 2009

INTRODUCED BY   Assembly Member De Leon

                        JANUARY 22, 2009

   An act to  add Section 34510.5 to   amend
Section 34620 of  the Vehicle Code, relating to vehicles.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 145, as amended, De Leon. Motor carriers: construction
transportation brokers.
   (1) Existing law requires the Department of Motor Vehicles to
regulate the safe operation of specified vehicles, including
commercial motor vehicles and trailer and semitrailer commercial
vehicle combinations owned and operated by motor carriers. Existing
law also requires every motor carrier of property to comply with
specified safety, permit, and liability insurance regulations 
and to pay the fees required by these provisions  .  A
violationof these provisions is a crime.  
   Existing law also prohibits a motor carrier of property from
contracting or subcontracting with, or otherwise engaging the
services of, another motor carrier of property, until the contracted
motor carrier of property provides certification in the manner
prescribed by the above provisions, of compliance with safety
inspection, certificate, permit, and financial responsibility
requirements. A violation of those provisions is a misdemeanor. 

   This bill would apply this prohibition to a broker of construction
trucking services, as defined.  
   By expanding the scope of an existing crime, the bill would impose
a state-mandated local program.  
   This bill would require a construction transportation broker, as
defined, who agrees to transport or haul intrastate construction
materials for another person or entity and who dispatches, hires,
employs, or engages the services of a subhauler, as defined, to
perform all or part of the agreement to furnish the construction
transportation or hauling services, to enter into a specified written
agreement with the subhauler and comply with specified safety,
recordkeeping, and insurance requirements.  
   The bill would also make a violation of these provisions a
misdemeanor and would subject the violator to a fine. By creating new
crimes, the bill would impose a state-mandated local program.

   (2) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 34620 of the   Vehicle
Code   is amended to read: 
   34620.  (a) Except as provided in subdivision (b) and Section
34622,  no   a  motor carrier of property
shall  not  operate a commercial motor vehicle on any public
highway in this state, unless it has complied with Section 34507.5
and has registered with the department its carrier identification
number authorized or assigned thereunder, and holds a valid motor
carrier permit issued to that motor carrier by the department. The
department shall issue a motor carrier permit upon the carrier's
written request, compliance with Sections 34507.5, 34630,  and
 34640, and subdivisions (e) and (h) of Section 34501.12
 ,  for motor carriers listed in that section, and
the payment of the fee required by this chapter.
   (b)  No   A  person shall  not 
contract with, or otherwise engage the services of, a motor carrier
of property, unless that motor carrier holds a valid motor carrier of
property permit issued by the department.  No  
A   motor carrier of property  or broker of
construction trucking services, as defined in Section 3322 of the
Civil Code,  shall  not  contract or subcontract with,
or otherwise engage the services of,  another  
a  motor carrier of property, until the contracted motor carrier
of property provides certification in the manner prescribed by this
section, of compliance with subdivision (a). This certification shall
be completed by the contracted motor carrier of property and shall
include a provision requiring the contracted motor carrier of
property to immediately notify the person to whom they are contracted
if the contracted motor carrier of property's permit is suspended or
revoked. A copy of the contracted motor carrier of property's permit
shall accompany the required certificate. The Department of the
California Highway Patrol shall, by regulation, prescribe the format
for the certificate and may make available an optional specific form
for that purpose. The certificate, or a copy thereof, shall be
maintained by each involved party for the duration of the contract or
period of service plus two years, and shall be presented for
inspection at the location designated by each carrier under Section
34501.10, immediately upon the request of an authorized employee of
the Department of the California Highway Patrol. 
  SECTION 1.    Section 34510.5 is added to the
Vehicle Code, to read:
   34510.5.  (a) The Legislature finds and declares that construction
transportation brokers are in a unique position to protect the
motoring public by ensuring that the safety provisions of this code,
which impose safety regulations on motor carriers, including, but not
limited to, BIT safety inspections pursuant to Section 34501.12,
drug and alcohol testing pursuant to Section 34520, the necessity of
a motor carrier permit under Section 34620, and liability protection
under Section 34631.5, are complied with prior to the commencement of
any construction work.
   (b) "Construction transportation broker," as used in this section,
means a person or entity that agrees to transport or haul intrastate
construction materials for another person or entity and as part of
the performance of that transportation or hauling agreement,
dispatches, hires, employs, or engages the services of a motor
carrier to perform all or part of that agreement. The term
"construction transportation broker" also includes any motor carrier
who dispatches, hires, employs, or engages another motor carrier to
perform all or part of the construction transportation or hauling
services that the motor carrier has agreed to render for a
construction transportation broker.
   (c) "Subhauler," as used in this section, means a motor carrier
that is dispatched, hired, employed, or engaged by a construction
transportation broker to perform all or part of the construction
transportation or hauling services that the construction
transportation broker has agreed to render.
   (d) "Construction transportation or hauling services," as used in
this section, means the for-hire hauling, transporting, or moving of
rock, sand, dirt, asphalt, and gravel, or any other aggregate
material, as defined in subdivision (d) of Section 23114, to, from,
or on the site of the construction project by a motor carrier.
   (e) A construction transportation broker that dispatches, hires,
employs, or engages a subhauler shall not furnish construction
transportation or hauling services unless he or she enters into a
written agreement with the subhauler that contains all of the
following:
   (1) The name, address, and phone number of the broker and the
subhauler.
   (2) All contract terms of the agreement including, but not limited
to, the agreed upon price, term of engagement, and site location.
   (3) Written documentation, attached to the agreement, that shows
that the subhauler is in compliance with all of the following:
   (A) Has a valid motor carrier permit pursuant to Section 34620.
   (B) Is currently enrolled in a drug and alcohol testing program as
required pursuant to Section 34520.
   (C) The Biennial Inspection of Terminals Program (BIT) required
pursuant to Section 34501.12.
   (D) Adequate protection against liability as required pursuant to
Section 34631.5.
   (f) A construction transportation broker shall maintain the
records of each written agreement required under subdivision (e) for
a minimum of two years.
   (g) A construction transportation broker subject to this section
shall maintain nonowned and hired commercial auto insurance coverage
in the same amounts as the coverage required of motor carriers
against liability pursuant to Section 34631.5.
   (h) (1) A construction transportation broker who furnishes
construction transportation services in violation of subdivision (e)
or (g) is guilty of a misdemeanor and subject to a fine in the amount
of two thousand dollars ($2,000) in addition to any other penalties
established by federal or state law. Each agreement with a subhauler
that fails to comply with subdivision (e) shall constitute a separate
violation.
   (2) A construction transportation broker who fails to maintain
records required pursuant to subdivision (f) is guilty of a
misdemeanor and subject to a fine in the amount of one thousand
dollars ($1,000) in addition to any other penalties established by
federal or state law. 
  SEC. 2.  No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.