BILL NUMBER: AB 2572 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 21, 2010
INTRODUCED BY Assembly Member Bradford
FEBRUARY 19, 2010
An act to amend Sections 5360, 5371.1, 5373.1, 5374,
5378, 5378.6, 5379, 5374, 5378, and 5411.5 of
, and to repeal Section 5376 of, the Public
Utilities Code, relating to charter-party carriers of passengers.
LEGISLATIVE COUNSEL'S DIGEST
AB 2572, as amended, Bradford. Charter-party carriers of
passengers.
The California Constitution establishes the Public Utilities
Commission with jurisdiction over all public utilities, and
authorizes the Legislature, unlimited by the other provisions of the
Constitution, to confer additional authority and jurisdiction upon
the commission, that is cognate and germane to the regulation of
public utilities. Charter-party carriers of passengers, as defined,
are subject to the jurisdiction and control of the commission under
the Passenger Charter-Party Carriers' Act. The act defines a
charter-party carrier of passengers, subject to certain exceptions,
to mean every person that is engaged in the transportation of persons
by motor vehicle for compensation, whether in common or contract
carriage, over any public highway.
This bill would provide that a charter-party carrier of passengers
includes any person, corporation, or other entity engaged in the
provision of either a hired driver service or a
rented motor vehicle that is being operated by a hired driver.
The act requires a charter-party carrier of passengers to obtain
from the commission a certificate of public convenience and
necessity, or for certain carriers, to obtain a permit, sets forth
the requirements to be met before a certificate or permit may be
issued or renewed, establishes fees to be charged by the
commission to different classes of certificate holders and for permit
holders for issuance of a certificate or permit, and
provides that a certificate or permit, or renewal thereof, is
effective for 3 years, unless suspended or revoked by the commission.
This bill would delete the provision that a certificate
or permit, or renewal thereof, is effective for 3 years and would
make conforming changes to delete references in the act to the
renewal of certificates or permits. The bill would
authorize the commission to cancel, revoke, or suspend any operating
certificate or permit upon the failure of a certificate or permit
holder, or of any of its employees, to follow any order, decision,
rule, regulation, direction, demand, ordinance, or other requirements
established by the governing body of an airport. The bill
would raise the fees charged for issuance of class B certificates,
class C certificates, and permits from $500 to $700.
Existing law authorizes a peace officer, as defined, that arrests
a person for operating a charter-party carrier of passengers without
a valid certificate or permit to impound and retain possession of the
vehicle, subject to certain exceptions and provisions for notice and
return of the vehicle. Existing law limits this authority to arrests
made at a public airport or within 2 miles of the international
border with Mexico.
This bill would delete that limitation.
Existing law requires that an impounded vehicle be immediately
returned to the owner, without cost to the owner, if the infraction
or violation is not prosecuted or is dismissed, or used in violation
of a specified law without the knowledge and consent of the owner.
This bill would delete the requirement that the impounded vehicle
be returned without cost to the owner. The bill would require that if
a vehicle is seized due to a violation of a person other than the
owner, the impounded vehicle be returned to the owner after all
impoundment fees are paid.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. It is the intent of the Legislature
that the Public Utilities Commission have access to real-time
information on drivers for licensed charter-party carriers of
passengers by utilizing the Department of Motor Vehicle's Employer
Pull Notice Program implementing Section 1808.1 of the Vehicles Code.
It is the intent of the Legislature that the commission create an
online renewal process for charter-party carriers of passengers and a
renewal process that is administratively efficient.
SECTION 1. SEC. 2. Section 5360 of
the Public Utilities Code is amended to read:
5360. Subject to the exclusions of Section 5353, "charter-party
carrier of passengers" means every person engaged in the
transportation of persons by motor vehicle for compensation, whether
in common or contract carriage, over any public highway in this
state. "Charter-party carrier of passengers" includes any person,
corporation, or other entity engaged in the provision of
either a hired driver service or a rented motor vehicle
when a rented motor vehicle is being operated by a hired driver.
SEC. 2. Section 5371.1 of the Public Utilities
Code is amended to read:
5371.1. (a) No charter-party carrier of passengers issued a class
A certificate subject to this section shall be restricted as to
point of origin or destination in the State of California.
(b) Every application for a certificate or permit shall be
accompanied by the appropriate fee as specified in Section 5373.1.
SEC. 3. Section 5373.1 of the Public Utilities
Code is amended to read:
5373.1. (a) Each application for a charter-party carrier of
passengers certificate or permit shall be accompanied by a filing fee
as follows:
(1) Class A certificates: one thousand five hundred dollars
($1,500).
(2) Class B certificates: seven hundred dollars ($700).
(3) Class C certificates: seven hundred dollars ($700).
(4) Permits: seven hundred dollars ($700).
(b) The commission shall also require each application to be
accompanied by a fee to offset the cost of the charter-party carrier
bus terminal inspections conducted by the Department of the
California Highway Patrol. The fee shall be fifteen dollars ($15) per
tour bus, as defined in Section 612 of the Vehicle Code, or a
maximum of six thousand five hundred dollars ($6,500) for each
operating carrier.
(c) The commission shall require each charter-party carrier that
operates tour buses, as defined in Section 612 of the Vehicle Code,
to undergo an annual bus terminal inspection conducted by the
Department of the California Highway Patrol and to pay an annual fee
of fifteen dollars ($15) per tour bus, or a maximum of six thousand
five hundred dollars ($6,500), to offset the cost of the inspections.
(d) The commission shall deposit the fees collected pursuant to
subdivisions (b) and (c) in the Motor Vehicle Account in the State
Transportation Fund.
SEC. 4. Section 5374 of the Public Utilities
Code is amended to read:
5374. (a) (1) Before a permit or certificate is issued, the
commission shall require the applicant to establish reasonable
fitness and financial responsibility to initiate and conduct the
proposed transportation services. The commission shall not issue a
permit or certificate pursuant to this chapter unless the applicant
meets all of the following requirements:
(A) It is financially and organizationally capable of conducting
an operation that complies with the rules and regulations of the
Department of the California Highway Patrol governing highway safety.
(B) It is committed to observing the hours of service regulations
of state and, where applicable, federal law, for all persons, whether
employees or subcarriers, operating vehicles in transportation for
compensation under the certificate.
(C) It has a preventive maintenance program in effect for its
vehicles used in transportation for compensation that conforms to
regulations of the Department of the California Highway Patrol in
Title 13 of the California Code of Regulations.
(D) It participates in a program to regularly check the driving
records of all persons, whether employees or subcarriers, operating
vehicles used in transportation for compensation.
(E) It has a safety education and training program in effect for
all employees or subcarriers operating vehicles used in
transportation for compensation.
(F) It will maintain its vehicles used in transportation for
compensation in a safe operating condition and in compliance with the
Vehicle Code and with regulations contained in Title 13 of the
California Code of Regulations relative to motor vehicle safety.
(G) It has filed with the commission the certificate of workers'
compensation insurance coverage or statement required by Section
5378.1.
(H) It has provided the commission an address of an office or
terminal where documents supporting the factual matters specified in
the showing required by this subdivision may be inspected by the
commission and the Department of the California Highway Patrol.
(I) It provides for a mandatory controlled substance and alcohol
testing certification program as adopted by the commission pursuant
to Section 1032.1.
(2) With respect to subparagraphs (B) and (F) of paragraph (1),
the commission may base a finding on a certification by the
commission that an applicant has filed, with the commission, a sworn
declaration of ability to comply and intent to comply.
(3) The commission may require, as a precondition to the issuance
of a permit or certificate, the procurement of a performance bond
sufficient to facilitate the collection of fines, penalties, and
restitution related to enforcement actions that can be taken against
the applicant.
(b) In addition to the requirements in subdivision (a),
charter-party carriers shall meet all other state and, where
applicable, federal regulations as prescribed.
(c) The commission may delegate to its executive director or that
executive director's designee the authority to issue, renew, or
authorize the transfer of, charter-party carrier permits or
certificates and to make the findings specified in subdivision (a)
that are necessary to that delegated authority.
SEC. 5. Section 5376 of the Public Utilities
Code is repealed.
SEC. 3. Section 5374 of the Public
Utilities Code is amended to read:
5374. (a) (1) Before a permit or certificate is issued or
renewed, the commission shall require the applicant to establish
reasonable fitness and financial responsibility to initiate and
conduct or continue to conduct the proposed or existing
transportation services. The commission shall not issue or renew a
permit or certificate pursuant to this chapter unless the applicant
meets all of the following requirements:
(A) It is financially and organizationally capable of conducting
an operation that complies with the rules and regulations of the
Department of the California Highway Patrol governing highway safety.
(B) It is committed to observing the hours of service regulations
of state and, where applicable, federal law, for all persons, whether
employees or subcarriers, operating vehicles in transportation for
compensation under the certificate.
(C) It has a preventive maintenance program in effect for its
vehicles used in transportation for compensation that conforms to
regulations of the Department of the California Highway Patrol in
Title 13 of the California Code of Regulations.
(D) It participates in a program to regularly check the driving
records of all persons, whether employees or subcarriers, operating
vehicles used in transportation for compensation.
(E) It has a safety education and training program in effect for
all employees or subcarriers operating vehicles used in
transportation for compensation.
(F) It will maintain its vehicles used in transportation for
compensation in a safe operating condition and in compliance with the
Vehicle Code and with regulations contained in Title 13 of the
California Code of Regulations relative to motor vehicle safety.
(G) It has filed with the commission the certificate of workers'
compensation insurance coverage or statement required by Section
5378.1.
(H) It has provided the commission an address of an office or
terminal where documents supporting the factual matters specified in
the showing required by this subdivision may be inspected by the
commission and the Department of the California Highway Patrol.
(I) It provides for a mandatory controlled substance and alcohol
testing certification program as adopted by the commission pursuant
to Section 1032.1.
(J) If the hired driver is utilizing a rented vehicle to provide
chauffeured transportation, the vehicle owner shall provide insurance
coverage and verify that the hired driver possess a valid and
appropriate license to operate a motor vehicle in the State of
California.
(2) With respect to subparagraphs (B) and (F) of paragraph (1),
the commission may base a finding on a certification by the
commission that an applicant has filed, with the commission, a sworn
declaration of ability to comply and intent to comply.
(3) The commission may require, as a precondition to the issuance
of a permit or certificate, the procurement of a performance bond
sufficient to facilitate the collection of fines, penalties, and
restitution related to enforcement actions that can be taken against
the applicant.
(b) In addition to the requirements in subdivision (a),
charter-party carriers shall meet all other state and, where
applicable, federal regulations as prescribed.
(c) The commission may delegate to its executive director or that
executive director's designee the authority to issue, renew, or
authorize the transfer of, charter-party carrier permits or
certificates and to make the findings specified in subdivision (a)
that are necessary to that delegated authority.
SEC. 6. SEC. 4. Section 5378 of the
Public Utilities Code is amended to read:
5378. (a) The commission may cancel, revoke, or suspend any
operating permit or certificate issued pursuant to this chapter upon
any of the following grounds:
(1) The violation of any of the provisions of this chapter, or of
any operating permit or certificate issued thereunder.
(2) The violation of any order, decision, rule, regulation,
direction, demand, or requirement established by the commission
pursuant to this chapter.
(3) The conviction of the charter-party carrier of passengers of
any misdemeanor under this chapter while holding operating authority
issued by the commission or the conviction of the carrier or its
officers of a felony while holding operating authority issued by the
commission, limited to robbery, burglary, larceny, fraud, or
intentional dishonesty for personal gain.
(4) The rendition of a judgment against the charter-party carrier
of passengers for any penalty imposed under this chapter.
(5) The failure of a charter-party carrier of passengers to pay
any fee imposed upon the carrier within the time required by law.
(6) On request of the holder of the permit or certificate.
(7) Failure of a permit or certificate holder to operate and
perform reasonable service. That failure may include repeated
violations of the Vehicle Code or of regulations contained in Title
13 of the California Code of Regulations relative to motor vehicle
safety, by employees of the permitholder or certificate holder, that
support an inference of unsafe operation or willful neglect of the
public safety by the permitholder or certificate holder.
(8) Consistent failure of the charter-party carrier of passengers
to maintain its vehicles in a safe operating condition and in
compliance with the Vehicle Code and with regulations contained in
Title 13 of the California Code of Regulations relative to motor
vehicle safety, as shown by the records of the commission, the
Department of Motor Vehicles, the Department of the California
Highway Patrol, or the carrier.
(9) The knowing and willful filing of a false report that
understates revenues and fees.
(10) Failure of a permit or certificate holder, or of any of its
employees, to follow any order, decision, rule, regulation,
direction, demand, ordinance, or other requirement established by the
governing body of an airport, including solicitation practices.
(b) The commission may levy a civil penalty of up to seven
thousand five hundred dollars ($7,500) upon the holder of an
operating permit or certificate issued pursuant to this chapter, for
any of the grounds specified in subdivision (a), as an alternative to
canceling, revoking, or suspending the permit or certificate. The
commission may also levy interest upon the civil penalty, which shall
be calculated as of the date on which the civil penalty is unpaid
and delinquent. The commission shall deposit at least monthly all
civil penalties and interest collected pursuant to this section into
the General Fund.
SEC. 7. Section 5378.6 of the Public Utilities
Code is amended to read:
5378.6. (a) Upon receipt of a written recommendation from the
Department of the California Highway Patrol that an application for a
charter-party carrier certificate or permit be denied either (1) for
failure to maintain any vehicle used in transportation for
compensation in a safe operating condition or to comply with the
Vehicle Code or with regulations contained in Title 13 of the
California Code of Regulations relative to motor carrier safety or
(2) for failure to enroll all drivers in the pull notice system as
required by Section 1808.1 of the Vehicle Code, the commission shall
deny the application. The department's written recommendation shall
specifically indicate compliance with subdivision (b).
(b) Before transmitting a recommendation pursuant to subdivision
(a) to the commission, the Department of the California Highway
Patrol shall notify the applicant for the charter-party carrier
certificate or permit of all of the following in writing:
(1) That the department has determined that the applicant's safety
record is unsatisfactory, furnishing a copy of any documentation or
summary of any other evidence supporting the determination.
(2) That the determination may result in a denial of the applicant'
s certificate or permit by the commission.
(3) That the applicant may request a review of the determination
by the department within five days of its receipt of the notice
required under this subdivision. The department shall, upon request,
conduct and evaluate that review prior to transmitting any
notification to the commission pursuant to subdivision (a).
(c) Any applicant for a charter-party carrier certificate or
permit denied pursuant to subdivision (a) that wishes to obtain a
certificate or permit shall reapply for the desired authority.
SEC. 8. Section 5379 of the Public Utilities
Code is amended to read:
5379. After the cancellation or revocation of a permit or
certificate, or during the period of its suspension, it is unlawful
for a charter-party carrier of passengers to conduct any operations
as a carrier. The commission may either grant or deny an application
for a new permit or certificate whenever it appears that a prior
permit or certificate of the applicant has been canceled or revoked
pursuant to Section 5378 or whenever it appears, after hearing, that
as a prior permit or certificate holder, the applicant engaged in any
of the unlawful activities set forth in Section 5378 for which his
or her permit or certificate might have been canceled or revoked.
SEC. 9. SEC. 5. Section 5411.5 of
the Public Utilities Code is amended to read:
5411.5. (a) Whenever a peace officer, as defined in Chapter 4.5
(commencing with Section 830) of Title 3 of Part 2 of the Penal Code,
arrests a person for operation of a charter-party carrier of
passengers without a valid certificate or permit, the peace officer
may impound and retain possession of the vehicle.
(b) Whenever a peace officer, as defined in Chapter 4.5
(commencing with Section 830) of Title 3 of Part 2 of the Penal Code,
arrests a person for operating a charter-party carrier of passengers
as a taxicab in violation of an ordinance or resolution of a city,
county, or city and county, the peace officer may impound and retain
possession of the vehicle.
(c) If the vehicle is seized from a person who is not the owner of
the vehicle, the impounding authority shall immediately give notice
to the owner by first-class mail.
(d) The vehicle shall immediately be returned to the owner if the
infraction or violation is not prosecuted or is dismissed, the owner
is found not guilty of the offense, or it is determined that the
vehicle was used in violation of Section 5411 without the knowledge
and consent of the owner. The vehicle shall be returned to the owner
upon payment of any fine ordered by the court. If the vehicle is
seized due to a violation of a person other than the owner of the
vehicle, the vehicle shall be returned to the owner after all
impoundment fees are paid. After the expiration of six weeks from the
final disposition of the criminal case, unless the owner is in the
process of making payments to the court, the impounding authority may
deal with the vehicle as lost or abandoned property under Section
1411 of the Penal Code.
(e) At any time, a person may make a motion in superior court for
the immediate return of the vehicle on the ground that there was no
probable cause to seize it or that there is some other good cause, as
determined by the court, for the return of the vehicle. A proceeding
under this section is a limited civil case.
(f) No peace officer, however, may impound any vehicle owned or
operated by a nonprofit organization exempt from taxation pursuant to
Section 501(c)(3) of the Internal Revenue Code which serves youth or
senior citizens and provides transportation incidental to its
programs or services.