BILL NUMBER: AB 2572 CHAPTERED
BILL TEXT
CHAPTER 472
FILED WITH SECRETARY OF STATE SEPTEMBER 29, 2010
APPROVED BY GOVERNOR SEPTEMBER 29, 2010
PASSED THE SENATE AUGUST 23, 2010
PASSED THE ASSEMBLY AUGUST 24, 2010
AMENDED IN SENATE AUGUST 18, 2010
AMENDED IN SENATE AUGUST 4, 2010
AMENDED IN ASSEMBLY MAY 5, 2010
AMENDED IN ASSEMBLY APRIL 21, 2010
INTRODUCED BY Assembly Member Bradford
FEBRUARY 19, 2010
An act to amend Sections 5360, 5373.1, 5374, 5374.5, 5378, 5378.6,
5385, 5392, and 5411.5 of the Public Utilities Code, relating to
charter-party carriers of passengers.
LEGISLATIVE COUNSEL'S DIGEST
AB 2572, 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 a hired driver service when a rented motor vehicle is
being operated by a hired driver. The bill would, however, make
certain provisions of the act inapplicable to a charter-party carrier
of passengers engaged in the provision of a hired driver service
when a rented motor vehicle is being operated by the hired driver,
and make certain insurance requirements applicable only to the driver
supplied by the charter-party carrier of passengers engaged in the
provision of a hired driver service when the car is separately
rented.
Under existing law, a violation of the Passenger Charter-Party
Carriers' Act or an order or direction of the commission pursuant to
the act is a crime.
This bill, by expanding the definition of a charter-party carrier
of passengers, would impose a state-mandated local program by
expanding the definition of a crime.
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 permitholders for
issuance or renewal 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 revise the fees charged by the commission for a
new or renewed certificate or permit. 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.
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.
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.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. It is the intent of the Legislature to achieve all of
the following:
(a) Ensure that the Public Utilities Commission utilizes access
to information on drivers for licensed charter-party carriers of
passengers through the Department of Motor Vehicle's Employer Pull
Notice Program implementing Section 1808.1 of the Vehicle Code.
(b) Ensure the public safety when utilizing the services of
charter-party carriers of passengers and to increase enforcement of
laws to prevent illegal charter-party operators.
(c) Have the Public Utilities Commission implement procedures to
have an approved drug and alcohol testing provider submit to the
commission timely information on the status of licensed charter-party
carriers of passengers that have contracted with the drug and
alcohol testing provider for compliance with commission rules and
statutes.
(d) Create an online renewal process for charter-party carriers of
passengers and a renewal process that is administratively efficient.
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 a hired
driver service when a rented motor vehicle is being operated by a
hired driver.
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 (new): one thousand five hundred dollars
($1,500).
(2) Class A certificates (renewal): one hundred dollars ($100).
(3) Class B certificates (new): one thousand dollars ($1,000).
(4) Class B certificates (renewal): one hundred dollars ($100).
(5) Class C certificates (new): one thousand dollars ($1,000).
(6) Class C certificates (renewal): one hundred dollars ($100).
(7) Permits (new): one thousand dollars ($1,000).
(8) Permits (renewal): one hundred dollars ($100).
(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 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) Subparagraphs (C), (F), and (H) do not apply to a
charter-party carrier of passengers engaged in the provision of a
hired driver service when a rented motor vehicle is being operated by
the hired driver.
(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 5374.5 of the Public Utilities Code is amended to
read:
5374.5. (a) At the time of each bus terminal inspection conducted
by the Department of the California Highway Patrol pursuant to
subdivision (c) of Section 34501 of the Vehicle Code, every
charter-party carrier of passengers shall furnish both the Department
of the California Highway Patrol and the commission a list, prepared
under oath, of all vehicles used in transportation for compensation
during the period since the last inspection. The commission shall
furnish a copy of the list to the carrier's insurer, if the carrier's
accident liability protection is provided by a policy of insurance.
This subdivision does not apply to a charter-party carrier of
passengers engaged in the provision of a hired driver service when a
rented motor vehicle is being operated by the hired driver.
(b) If the charter-party carrier's insurer informs the commission
that the carrier has failed to obtain insurance coverage for any
vehicle reported on the list, the commission may, in addition to any
other penalty provided in this chapter, for a first occurrence,
suspend the carrier's certificate or permit or impose a fine, or
both, and for a second or subsequent occurrence may suspend or revoke
the certificate or impose a fine, or both.
SEC. 6. 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. This paragraph does not apply to a
charter-party carrier of passengers engaged in the provision of a
hired driver service when a rented motor vehicle is being operated by
the hired driver.
(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) The commission shall deny a new or renewal
application for a charter-party carrier certificate or permit upon
receipt of a written recommendation from the Department of the
California Highway Patrol that specifically indicates compliance with
subdivision (b), and indicates that the applicant has failed to do
either of the following:
(1) Maintain any vehicle used in transportation for compensation
in a safe operating condition or to comply with the Vehicle Code or
the regulations contained in Title 13 of the California Code of
Regulations relative to motor carrier safety. This paragraph does not
apply to a charter-party carrier of passengers engaged in the
provision of a hired driver service when a rented motor vehicle is
being operated by the hired driver.
(2) Enroll all drivers in the Department of Motor Vehicles'
Employer Pull Notice Program implementing Section 1808.1 of the
Vehicle Code.
(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) Whenever the commission denies an application for renewal
pursuant to subdivision (a), the commission shall furnish the
charter-party carrier written notice of the denial and shall hold a
hearing within a reasonable time, not to exceed 21 days, after a
written request is filed with the commission, with a copy thereof
furnished to the Department of the California Highway Patrol. At the
hearing, the carrier shall show cause why the denial was improper or
unwarranted. At the conclusion of the hearing, the commission may, in
addition to any other remedy provided in this part, reverse the
denial, or sustain the denial.
(d) Any applicant for a charter-party carrier certificate or
permit denied pursuant to subdivision (a), whose denial has not been
reversed as a result of the hearing provided for in subdivision (c),
that wishes to obtain a certificate or permit shall reapply for the
desired authority.
SEC. 8. Section 5385 of the Public Utilities Code is amended to
read:
5385. A charter-party carrier of passengers, except those engaged
in the provision of a hired driver service when a rented motor
vehicle is being operated by the hired driver, shall not operate any
motor vehicle on any public highway unless there is displayed on the
vehicle a distinctive identifying symbol in the form prescribed by
the commission, showing the classification to which the carrier
belongs. Such an identifying symbol shall not be displayed on any
vehicle until a permit or certificate of public convenience and
necessity under this chapter has been issued to the carrier. The
identifying symbol displayed by charter-party carriers subject to the
Interstate Commerce Commission shall serve in lieu of the display
requirements of this section.
SEC. 9. Section 5392 of the Public Utilities Code is amended to
read:
5392. (a) The protection required under Sections 5391 and 5391.2
shall be evidenced by the deposit of any of the following with the
commission covering each vehicle used or to be used under the
certificate or permit applied for:
(1) A policy of insurance, issued by a company licensed to write
insurance in this state, or by nonadmitted insurers subject to
Section 1763 of the Insurance Code, if the policies meet the rules
promulgated therefor by the commission.
(2) A bond of a surety company licensed to write surety bonds in
the state.
(3) Evidence of the qualification of the charter-party carrier of
passengers as a self-insurer as may be authorized by the commission.
(b) This section applies only to the driver supplied by a
charter-party carrier of passengers engaged in the provision of a
hired driver service when a rented motor vehicle is being operated by
the hired driver. The requirements of this section do not apply to
the separately rented vehicle.
SEC. 10. 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 or a rented motor vehicle that is being operated
by a hired driver of a charter-party carrier of passengers that is
providing hired driver service.
SEC. 11. 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.