BILL NUMBER: SB 1092 CHAPTERED
BILL TEXT
CHAPTER 490
FILED WITH SECRETARY OF STATE SEPTEMBER 23, 2012
APPROVED BY GOVERNOR SEPTEMBER 23, 2012
PASSED THE SENATE AUGUST 21, 2012
PASSED THE ASSEMBLY AUGUST 16, 2012
AMENDED IN ASSEMBLY JUNE 13, 2012
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, 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 written evidence of the broker's valid 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 also prohibit a 3rd-party nonprofit
organization from charging a broker for posting evidence of a valid
surety bond or from limiting the posting of the bond only to the
organization's members.
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, 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.
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.
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) A broker of construction trucking services annually shall
provide 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.
(B) When a copy of a 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. 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.
(C) A third-party nonprofit organization shall not charge a broker
for posting evidence of a valid surety bond or limit the posting of
the bond only to the organization's members.
(D) A third-party nonprofit organization shall not be liable for
any damages caused by the publication of any information provided
pursuant to this paragraph that is erroneous or outdated.
(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, 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.
(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).
(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.
(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.