BILL NUMBER: SB 719 AMENDED
BILL TEXT
AMENDED IN SENATE MARCH 24, 2011
INTRODUCED BY Senator Vargas
FEBRUARY 18, 2011
An act to amend Section 34631.5 of the Vehicle Code, relating to
vehicles.
LEGISLATIVE COUNSEL'S DIGEST
SB 719, as amended, Vargas. Vehicles: motor carrier of property:
insurance.
Existing law requires proof of financial responsibility before a
motor carrier permit may be granted to any motor carrier of property
and specifies the acceptable documentation for proof of that
financial responsibility, which is required to be deposited with the
Department of Motor Vehicles and cover each vehicle used or to be
used under the motor carrier permit. Existing law requires every
motor carrier of property, as defined, to provide adequate protection
against liability for the payment of damages in certain amounts,
except as specified. The operator of a for-hire tow truck
who meets this requirement is authorized to perform emergency moves
at the direction of a peace officer irrespective of the load carried
aboard the vehicle being moved.
The bill would make technical, nonsubstantive changes to these
provisions.
This bill would authorize the director of the department to
initiate a rulemaking process, upon making a finding that the minimum
coverage requirements are insufficient, to alter, by regulation, the
required coverage amounts to better reflect market conditions,
costs, and operational risks. The bill would also authorize the
director to alter the minimum coverage requirements for motor
carriers based on the time, place, and manner of their operations,
including a motor carrier's operations while operating off of a
public highway if that operation is being conducted pursuant to its
motor carrier permit.
Vote: majority. Appropriation: no. Fiscal committee: no
yes . State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 34631.5 of the Vehicle Code is amended to read:
34631.5. (a) (1) A motor carrier of property as defined in
Section 34601, except those subject to paragraph (2), (3), or (4),
shall provide and thereafter continue in effect adequate protection
against liability imposed by law upon those carriers for the payment
of damages in the amount of a combined single limit of not less than
seven hundred fifty thousand dollars ($750,000) on account of bodily
injuries to, or death of, one or more persons, or damage to or
destruction of, property other than property being transported by the
carrier for any shipper or consignee whether the property of one or
more than one claimant in any one accident.
(2) A motor carrier of property, as defined in Section 34601, who
operates only vehicles under 10,000 pounds GVWR and who does not
transport any commodity subject to paragraph (3) or (4), shall
provide and thereafter continue in effect adequate protection against
liability imposed by law for the payment of damages caused by bodily
injuries to or the death of any person; or for damage to or
destruction of property of others, other than property being
transported by the carrier, in an amount not less than three hundred
thousand dollars ($300,000).
(3) A intrastate motor carrier of property, as defined in Section
34601, who transports petroleum products in bulk, including waste
petroleum and waste petroleum products, shall provide and thereafter
continue in effect adequate protection against liability imposed by
law upon the carrier for the payment of damages for personal bodily
injuries (including death resulting therefrom) in the amount of not
less than five hundred thousand dollars ($500,000) on account of
bodily injuries to, or death of, one person; and protection against a
total liability of those carriers on account of bodily injuries to,
or death of more than one person as a result of any one accident, but
subject to the same limitation for each person in the amount of not
less than one million dollars ($1,000,000); and protection in an
amount of not less than two hundred thousand dollars ($200,000) for
one accident resulting in damage to or destruction to property other
than property being transported by the carrier for any shipper or
consignee, whether the property of one or more than one claimant; or
a combined single limit in the amount of not less than one million
two hundred thousand dollars ($1,200,000) on account of bodily
injuries to, or death of, one or more persons or damage to or
destruction of property, or both, other than property being
transported by the carrier for any shipper or consignee whether the
property of one or more than one claimant in any one accident.
(4) Except as provided in paragraph (3), a motor carrier of
property, as defined in Section 34601, that transports any hazardous
material, as defined by Section 353, shall provide and thereafter
continue in effect adequate protection against liability imposed by
law on those carriers for the payment of damages for personal injury
or death, and damage to or destruction of property, in amounts of not
less than the minimum levels of financial responsibility specified
for carriers of hazardous materials by the United States Department
of Transportation in Part 387 (commencing with Section 387.1) of
Title 49 of the Code of Federal Regulations. The applicable minimum
levels of financial responsibility required are as follows:
Combined
Single
Limit
Commodity Transported: Coverage
Oil listed in Section 172.101
of Title 49 of the Code of
Federal Regulations; or
hazardous waste, hazardous
materials and hazardous
substances defined in Section
(A) 171.8 of Title 49 of the Code $1,000,000
of Federal Regulations and
listed in Section 172.101 of
Title 49 of the Code of
Federal Regulations, but not
mentioned in subparagraph (C)
or (D).
Hazardous waste as defined in
Section 25117 of the Health
and Safety Code and in
Article 1 (commencing with
(B) Section 66261.1) of Chapter $1,000,000
11 of Division 4.5 of Title
22 of the California Code of
Regulations, but not
mentioned in subparagraph (C)
or (D).
Hazardous substances, as
defined in Section 171.8 of
Title 49 of the Code of
Federal Regulations, or
(C) liquefied compressed gas or $5,000,000
compressed gas, transported
in cargo tanks, portable
tanks, or hopper-type vehicle
with capacities in excess of
3,500 water gallons.
Any quantity of division 1.1,
1.2, or 1.3 explosives; any
quantity of poison gas
(Poison A); or highway route
(D) controlled quantity $5,000,000
radioactive materials as
defined in Section 173.403 of
Title 49 of the Code of
Federal Regulations.
(5) (A) The director, upon making a finding that the minimum
coverage requirements pursuant to this subdivision are insufficient,
may initiate a rulemaking process to alter, by regulation, the
coverage amounts to better reflect market conditions, costs, and
operational risks.
(B) The director may alter the minimum coverage requirements for
motor carriers based on the time, place, and manner of their
operations, including a motor carrier's operations while operating
off of a public highway if that operation is being conducted pursuant
to its motor carrier permit.
(b) (1) The protection required under subdivision (a) shall be
evidenced by the deposit with the department, covering each vehicle
used or to be used in conducting the service performed by each motor
carrier of property, an authorized certificate of public liability
and property damage insurance, issued by a company licensed to write
the insurance in the State of California, or by a nonadmitted insurer
subject to Section 1763 of the Insurance Code.
(2) The protection required under subdivision (a) by a motor
carrier of property engaged in interstate or foreign transportation
of property in or through California, shall be evidenced by the
filing and acceptance of a department authorized certificate of
insurance, or qualification as a self-insurer as may be authorized by
law.
(3) A certificate of insurance, evidencing the protection, shall
not be cancelable on less than 30 days' written notice to the
department, the notice to commence to run from the date notice is
actually received at the office of the department in Sacramento.
(4) A certificate of insurance or equivalent protection to the
public shall contain a provision that the certificate or equivalent
protection shall remain in full force and effect until canceled in
the manner provided by paragraph (3).
(5) Upon cancellation of an insurance certificate or the
cancellation of equivalent protection authorized by the Department of
Motor Vehicles, the motor carrier permit of any motor carrier of
property, shall stand suspended immediately upon the effective date
of the cancellations.
(6) A motor carrier shall not engage in any operation on any
public highway of this state during the suspension of its permit.
(7) A motor carrier of property, whose permit has been suspended
under paragraph (5) shall not resume operations unless and until the
carrier has filed an insurance certificate or equivalent protection
in effect at the time and that meets the standards set forth in this
section. The operative rights of the complying carriers shall be
reinstated from suspension upon the filing of an insurance
certificate or equivalent protection.
(8) In order to expedite the processing of insurance filings by
the department, each insurance filing made should contain the insured'
s California carrier number, if known, in the upper right corner of
the certificate.
(c) (1) Notwithstanding any other provision of law, the operator
of a for-hire tow truck who is in compliance with subdivision (a) may
perform emergency moves, irrespective of the load carried aboard the
vehicle being moved.
(2) For the purposes of paragraph (1), an "emergency move" is
limited to one or more of the following activities:
(A) Removal of a disabled or damaged vehicle or combination of
vehicles from a highway.
(B) Removal of a vehicle or combination of vehicles from public or
private property following a traffic collision.
(C) Removal of a vehicle or combination of vehicles from public or
private property to protect public health, safety, or property.
(D) Removal of a vehicle or combination of vehicles from any
location for impound or storage, at the direction of a peace officer.
(3) The authority granted under paragraph (1) applies only to the
first one-way carriage of property from the scene of the emergency to
the nearest safe location. Any subsequent move of that property
shall be subject to subdivision (a), including, but not limited to, a
requirement that the for-hire tow truck operator have a level of
liability protection that is adequate for the commodity being
transported by the towed vehicle or combination of vehicles.
(4) Any transportation of property by an operator of an operator
of a for-hire tow truck that is not an emergency move, as authorized
under paragraph (1), shall be subject to subdivision (a), including,
but not limited to, a requirement that the for-hire tow truck
operator have a level of liability protection that is adequate for
the commodity being transported by the towed vehicle or combination
of vehicles.