BILL ANALYSIS �
SENATE TRANSPORTATION & HOUSING COMMITTEE BILL NO: ab 306
SENATOR MARK DESAULNIER, CHAIRMAN AUTHOR: lowenthal
VERSION: 5/29/13
Analysis by: Carrie Cornwell FISCAL: yes
Hearing date: June 11, 2013
SUBJECT:
Motor carriers
DESCRIPTION:
This bill requires that before a tow truck operator tows a
vehicle to or from another's tower's impound yard the impound
yard operator must ensure the tow truck operator has a valid
motor carrier permit.
ANALYSIS:
Motor carriers of property are businesses that transport
property, other than household goods, for hire. They include
many types of trucking companies, including tow truck providers.
The Department of Motor Vehicles (DMV) and the California
Highway Patrol (CHP) regulate motor carriers that operate within
California, and existing law requires that a motor carrier have
a valid motor carrier of property permit to operate in this
state.
DMV issues motor carrier permits subject to the motor carrier
paying the required fee, providing proof of financial
responsibility (e.g., liability insurance), certifying that it
has workers' compensation coverage for its employees, securing a
CHP inspection (when required), and obtaining a carrier
identification number from CHP. A motor carrier must renew this
permit every year.
A person, including another motor carrier, may not engage the
services of a motor carrier of property, unless that motor
carrier holds a valid permit. In instances in which a motor
carrier enlists the service of another motor carrier, the
contracted motor carrier must certify in the manner prescribed
by CHP that it possesses a permit to operate and must
immediately notify the contracting motor carrier to whom it is
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contracted if DMV suspends or revokes the permit.
This bill :
1.Requires that when a tow truck operator retrieves a vehicle
from another motor carrier's impound yard (or other premises),
the retrieving motor carrier must provide a copy of its motor
carrier permit to the releasing motor carrier.
2.Prohibits a motor carrier from allowing a tow truck to pick up
a vehicle from its impound yard (or other property), unless
that tow truck operator provides a copy of its motor carrier
permit. The motor carrier releasing the vehicle must keep
that copy on file for two years and present it when requested
by the CHP.
3.Exempts tow trucks operators that are licensed to repossess
vehicles from its provisions.
COMMENTS:
1.Purpose . The author introduced this bill at the request of
the California Tow Truck Association, which reports that some
tow truck operators are operating without a valid motor
carrier permit and are able to do so because state law
includes no explicit requirement that they show proof of
having a valid permit before towing vehicles. As a result,
some unscrupulous tow operators operate without a permit and
without adequate insurance, placing motorists at risk and
undercutting their competition.
Typically, tow services are provided under contract with an
auto club, the California Highway Patrol, a local parking
control agency, or some other authority. Those contracting
for these services ensure that the company operating the tow
trucks has a valid motor carrier permit. Once a vehicle is
in an impound lot, an insurance company or the registered
owner may want the vehicle moved. In these cases, the storage
yard may hire a low-cost tow operator to retrieve the vehicle
in an effort to save money. Sometimes these "cut rate" tow
operators work cheaply because they are not operating with a
valid motor carrier permit.
The proponents believe that requiring tow operators to show
proof of a valid motor carrier permit when moving a vehicle to
or from an impound yard will result in improved compliance
with the motor carrier permit program and thus increase safety
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on California's roadways.
2.Previous legislation . AB 1683 (Katz), Chapter 1042, Statutes
of 1996, created the Motor Carrier Safety Improvement Act to
ensure that commercial motor carriers meet all of the
statutory requirements to safely operate on California's
highways. This law prohibits a motor carrier from
subcontracting with or engaging the services of another motor
carrier unless the contracted motor carrier provides
certification of compliance with existing law and regulations,
including the requirement to hold a valid motor carrier
permit. Additionally, a contracted motor carrier is required
to provide notification to the person with whom they are under
contract if DMV suspends or revokes its motor carrier permit.
AB 145 (De Leon) Chapter 429, Statutes of 2010, among other
things, addressed a loophole in the law that allowed motor
carriers to engage the services of other motor carriers who
may not have valid motor carrier permits. AB 145 closed this
loophole by clarifying that construction trucking brokers (who
in some cases may not themselves be motor carriers) are also
required to ensure that any trucking companies they contract
with possess valid motor carrier permits. AB 145, however,
did not explicitly address tow operators that deliver and
retrieve vehicles.
Assembly Votes:
Floor: 76-0
Appr: 17-0
Trans: 16-0
POSITIONS: (Communicated to the committee before noon on
Wednesday, June 5,
2013.)
SUPPORT: California Tow Truck Association (sponsor)
Official Police Garages of Los Angeles
Personal Insurance Federation
OPPOSED: None received.
AB 306 (LOWENTHAL) Page 4