BILL NUMBER: SB 1092 AMENDED
BILL TEXT
AMENDED IN SENATE APRIL 9, 2012
INTRODUCED BY Senator De León
FEBRUARY 15, 2012
An act to amend Section 34510.5 of the Vehicle Code, relating to
vehicles.
LEGISLATIVE COUNSEL'S DIGEST
SB 1092, as amended, De León. Vehicles: brokers of construction
trucking services: surety bonds.
(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.
Existing law prohibits a broker of construction trucking services,
as defined, from furnishing construction transportation services to
a construction project unless it has secured a surety bond of not
less than $15,000 executed by an admitted surety insurer.
This bill would require a broker of construction trucking services
to annually provide a copy of the
written evidence of the broker's valid surety bond
when requested by a person who is reasonably likely to contract with
the broker for construction transportation services and to annually
provide a copy of the surety bond to a 3rd-party nonprofit
organization that is related to the industry and regularly maintains
a published database of bonded brokers or to post a current copy of
the surety bond on the broker's Internet Web site.
The bill would prohibit a person from hiring, or otherwise
engaging the services of, a broker of construction trucking services
unless the person obtains a copy of the broker's surety bond before
services commence and would require a person who hires or otherwise
engages the services of a broker of construction trucking services to
maintain a copy of the bond for the duration of the contract or
period of service plus one year.
The bill also would prohibit a broker of construction trucking
services from hiring , or otherwise engaging the services
of, a motor carrier of property to furnish construction
transportation services unless the broker provides a copy of
the , prior to the commencement of work each calendar
year, written evidence of the broker's valid surety bond to
any person that hires, or otherwise engages the services of, the
broker to furnish construction transportation services and also to
the hired motor carrier of property before
the services commence .
Because a violation of these provisions would be a misdemeanor,
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 34510.5 of the Vehicle Code is amended to read:
34510.5. (a) (1) A broker of construction trucking services, as
defined in Section 3322 of the Civil Code, shall not furnish
construction transportation services to any construction project
unless it has secured a surety bond of not less than fifteen thousand
dollars ($15,000) executed by an admitted surety insurer. The surety
bond shall ensure the payment of the claims of a contracted motor
carrier of property in dump truck equipment if the broker fails to
pay the contracted motor carrier within the time period specified in
paragraph (1) of subdivision (a) of Section 3322 of the Civil Code.
(2) A broker of construction trucking services shall provide a
copy of the surety bond when requested by a person who is reasonably
likely to contract with the broker for construction transportation
services.
(3)
(2) A broker of construction trucking services annually
shall provide a copy of the surety bond
written evidence of the broker's valid surety bond to a
third-party nonprofit organization that is related to the industry
and regularly maintains a published database of bonded brokers or
post a current copy of the surety bond on the broker's Internet Web
site. When a copy of the surety bond is provided to a
third-party nonprofit organization, the broker shall notify the
third-party nonprofit organization if at any time the surety bond is
cancelled or expired. A third-party nonprofit organization
shall not be liable for any damages caused by the publication of any
provided information that is erroneous or outdated. When a copy of
the surety bond is posted on the broker's Internet Web site, the
broker shall remove the surety bond from his or her Web site if at
any time the surety bond is cancelled or expired.
(b) A person shall not hire, or otherwise engage the services of,
a broker of construction trucking services to furnish construction
transportation services unless the person obtains a copy of the
broker's surety bond prior to the commencement of work. A person who
hires or otherwise engages the services of a broker of construction
trucking services shall maintain a copy of the bond at least one year
beyond either the duration of the contract if the services are
provided pursuant to a written contract or period of service if the
services are not provided pursuant to a written contract.
(c)
(b) A broker of construction trucking services shall
not hire, or otherwise engage the services of, a motor carrier of
property to furnish construction transportation services unless the
broker provides a copy of the surety bond ,
prior to the commencement of work each calendar year, written
evidence of the broker's valid surety bond to any person that hires,
or otherwise engages the services of, the broker to furnish
construction transportation services and also to the hired
motor carrier of property before the services
commence .
(d)
(c) A broker of construction trucking services who
furnishes construction transportation services in violation of this
section is guilty of a misdemeanor and subject to a fine of up to
five thousand dollars ($5,000).
(e)
(d) In any civil action brought against a broker of
construction trucking services by a motor carrier of property in dump
truck equipment with whom the broker contracted during any period of
time in which the broker did not have a surety bond in violation of
this section, the failure to have the bond shall create a rebuttable
presumption that the broker failed to pay to the motor carrier the
amount due and owing.
(f)
(e) For purposes of this section, "a broker of
construction trucking services" does not include a facility that
meets all the following requirements:
(1) Arranges for transportation services of its product.
(2) Primarily handles raw materials to produce a new product.
(3) Is a rock product operation (such as an "aggregate"
operation), a hot mixing asphalt plant, or a concrete, concrete
product, or Portland cement product manufacturing facility.
(4) Does not accept a fee for the arrangement.
(f) For the purposes of this section, "written evidence of the
broker's valid surety bond" includes a copy of the surety bond, a
certificate of insurance, a continuation certificate, or other
similar documentation originally issued from the surety that includes
the surety's and broker's name, the bond number, and the effective
and expiration dates of the bond.
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.