Amended in Senate September 3, 2013

Amended in Senate June 25, 2013

Amended in Assembly March 19, 2013

California Legislature—2013–14 Regular Session

Assembly Bill No. 529

Introduced by Assembly Member Lowenthal

February 20, 2013

An act to amend, repeal, and add Sections 7235 and 7236 of the Revenue and Taxation Code, and to amend Section 34622 of, begin delete to repeal Section 34606 of, and end delete to amend, repeal, and add Sections 34501.12, 34505.5, 34505.6, 34515, 34601, 34623, and 40000.22 of, begin insert and to repeal Section 34606 of, end insert the Vehicle Code, relating to vehicles.

LEGISLATIVE COUNSEL’S DIGEST

AB 529, as amended, Lowenthal. Vehicles: motor carriers: inspections and fees.

Existing law establishes the Biennial Inspection of Terminals Program (BIT) to ensure the safe operation of certain vehicles by a motor carrier through the inspection of these vehicles at the motor carrier’s terminal by the Department of the California Highway Patrol. Existing law defines a motor carrier, for this purpose, as the registered owner of, and in some cases the lessee or person exclusively authorizing and directing the operation of, specified vehicles. Existing law requires, within 30 days of establishing a terminal, a motor carrier to schedule an inspection by submitting to the department an application for a terminal inspection accompanied by the payment of a fee the amount of which is based on the number of vehicles in a terminal or the “terminal fleet size.” Existing law requires the department to inspect every terminal at least once every 25 months and defines a terminal as the location or locations designated by the motor carrier where subject vehicles and specific records are available for inspection.

This bill would, commencing January 1, 2016, revise and recast these provisions as the Basic Inspection of Terminals (BIT) Program. The bill would, commencing January 1, 2016, authorize the department to conduct terminal inspections at any time. The bill would require the department, on or before January 1, 2016, to implement a performance-based truck terminal inspection priority system similar to that used by the Federal Motor Carrier Safety Administration that would require the department to place an inspection priority on motor carrier terminals never previously inspected by the department. The bill would require, commencing January 1, 2016, the department to create a database to include specified performance-based data and provide real-time information to the department regarding motor carrier performance, as specified. The bill would, commencing January 1, 2016, provide that the department is not required to inspect a terminal more than once every 6 years, if certain conditions apply, and provides that terminals that receive less than a satisfactory compliance rating would be subject to periodic inspections based on the severity of violations. begin insert The bill would require the Department of the California Highway Patrol, commencing January 30, 2017, and every 5 years thereafter, to report to the Department of Motor Vehicles the amount it expended for truck terminal inspections and roadside safety inspections. The bill would require the Department of Motor Vehicles to compare those expenditures to the amounts collected for carrier inspection fees, as specified, and, commencing July 1, 2017, and every 5 years thereafter, end insert begin insert adjust the carrier inspection fee to ensure that the net revenues from the carrier inspection fee are sufficient to cover the Department of California Highway Patrol’s reasonable costs for those activities. The bill would express the intent of the Legislature in this regard. end insert

Existing law provides that it is a misdemeanor for a motor carrier to operate a vehicle without having submitted an inspection application and the required fees to the department, as specified.

This bill would revise those provisions to, commencing January 1, 2016, make it a misdemeanor for a motor carrier to operate any of specified types of vehicles without identifying to the department all terminals in this state where vehicles may be inspected by the department and where vehicle inspection and maintenance records and driver records will be made available for inspection. The bill would, commencing January 1, 2016, require the lessor of certain vehicles to make vehicles available for inspection upon request of an authorized representative of the department in the course of inspecting the terminal of the lessee. The bill would make a violation of these provisions a misdemeanor. The bill would, commencing January 1, 2016, make it a misdemeanor for a motor carrier to operate or cause to be operated any of specified vehicles unless the motor carrier is knowledgeable of, and in compliance with, all applicable statutes and regulations.

By expanding the provisions of existing law, the violation of which is an offense, this bill would impose a state-mandated local program.

The bill would, commencing January, 2016, require a motor carrier to make vehicles and records available for inspection upon request by the department and to pay a carrier inspection fee, the amount to be based on the size of the motor carrier’s fleet. The bill would, commencing January 1, 2016, impose delinquency fees for failure to pay the fee on time. The bill would make other technical and conforming changes to the BIT Program.

begin insert

This bill would incorporate additional changes to Section 34601 of the Vehicle Code proposed by AB 501 that would become operative if this bill and AB 501 are both enacted and this bill is enacted last.

end insert

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 7235 of the Revenue and Taxation Code
is amended to read:

7235.  

(a) The Safety Fee imposed by this chapter shall be paid
by all motor carriers of property, as defined in Section 34601 of
the Vehicle Code.

(b) This section shall remain in effect only until January 1, 2016,
and as of that date is repealed, unless a later enacted statute, that
is enacted before January 1, 2016, deletes or extends that date.

SEC. 2.  

Section 7235 is added to the Revenue and Taxation
Code, to read:

7235.  

(a) The Safety Fee and Carrier Inspection Fee imposed
by this chapter shall be paid by all motor carriers of property, as
defined in Section 34601 of the Vehicle Code.

(b) This section shall become operative on January 1, 2016.

SEC. 3.  

Section 7236 of the Revenue and Taxation Code is
amended to read:

7236.  

(a) Uniform business license tax fee payments collected
by the Department of Motor Vehicles pursuant to Section 7232
shall be deposited in the State Treasury to the credit of the General
Fund. All other funds collected by the Department of Motor
Vehicles pursuant to Section 7232 shall be deposited in the State
Treasury to the credit of the Motor Vehicle Account in the State
Transportation Fund. The following fees shall be paid to the
department:

(1) For-hire motor carriers of property shall pay, according to
the following schedule, fees indicated as the safety fee and uniform
business license tax fee, based on the size of their motor vehicle
fleet.

(2) Private carriers of property with a fleet size of 10 or less
motor vehicles shall pay a fee of thirty-five dollars ($35). Private
carriers of property with a fleet size of 11 or more motor vehicles
shall pay, according to the following schedule, fees indicated as
the safety fee, based on the size of their motor vehicle fleet. Any
carrier that does not pay a uniform business license tax fee shall
not operate as a for-hire motor carrier.

(3) A seasonal permit may be issued to a motor carrier of
property upon payment of fees indicated as the safety fee and
one-twelfth of the fee indicated as the uniform business license
tax fee, rounded to the next dollar, for each month the permit is
valid. The original seasonal permit shall be valid for a period of
not less than six months, and may be renewed upon payment of a
five-dollar ($5) fee, and one-twelfth of the fee indicated as a
uniform business license tax fee for each additional month of
operation.

begin delete

 

Fleet Size--Commercial Motor Vehicles Fee	Safety Fee		Uniform Business License Tax
1	$60		$60
2-4	$75		$125
5-10	$200		$275
11-20	$240		$470
21-35	$325		$650
36-50	$430		$880
51-100	$535		$1,075
101-200	$635		$1,300
201-500	$730		$1,510
501-1,000	$830		$1,715
1,001-2,000	$930		$1,900
2,001-over	$1,030		$2,000

 

end delete

 

begin insert

begin insert Fleet Size--Commercial Motor Vehicles Fee end insert	begin insert Safety Fee end insert	begin insert   end insert	begin insert Uniform Business License Tax end insert
begin insert  1  end insert	begin insert  $60 end insert	begin insert   end insert	begin insert  $60 end insert
begin insert 2-4 end insert	begin insert  75 end insert	begin insert   end insert	begin insert 125 end insert
begin insert  5-10  end insert	begin insert 200 end insert	begin insert   end insert	begin insert 275 end insert
begin insert  11-20  end insert	begin insert 240 end insert	begin insert   end insert	begin insert 470 end insert
begin insert  21-35  end insert	begin insert 325 end insert	begin insert   end insert	begin insert 650 end insert
begin insert 36-50 end insert	begin insert 430 end insert	begin insert   end insert	begin insert 880 end insert
begin insert  51-100 end insert	begin insert 535 end insert	begin insert   end insert	begin insert 1,075  end insert
begin insert 101-200 end insert	begin insert 635 end insert	begin insert   end insert	begin insert 1,300  end insert
begin insert 201-500  end insert	begin insert 730 end insert	begin insert   end insert	begin insert 1,510  end insert
begin insert  501-1,000 end insert	begin insert 830 end insert	begin insert   end insert	begin insert 1,715  end insert
begin insert 1,001-2,000 end insert	begin insert 930 end insert	begin insert   end insert	begin insert 1,900  end insert
begin insert 2,001-over  end insert	begin insert 1,030  end insert	begin insert   end insert	begin insert 2,000  end insert

end insert

 

Notwithstanding the above fee schedule, motor carriers of
property with 10 or fewer trucks shall not pay fees higher than
they would have paid under the fee structure in place as of January
1, 1996. Notwithstanding Section 34606 of the Vehicle Code, fees
for these carriers shall not be subject to an increase by the
Department of Motor Vehicles.

(b) Funds derived from safety fees shall remain in the Motor
Vehicle Account in the State Transportation Fund and shall be
available for appropriation by the Legislature to cover costs
incurred by the Department of Motor Vehicles and the Department
of the California Highway Patrol in regulating motor carriers of
property pursuant to Division 14.85 (commencing with Section
34600) of the Vehicle Code.

(c) It is the intent of the Legislature that the fee schedule
established in subdivision (a) shall not discriminate against small
fleet or individual vehicle operators or result in a disproportionate
share of those fees being assigned to small fleet or individual
vehicle operators.

(d) This section shall remain in effect only until January 1, 2016,
and as of that date is repealed, unless a later enacted statute, that
is enacted before January 1, 2016, deletes or extends that date.

SEC. 4.  

Section 7236 is added to the Revenue and Taxation
Code, to read:

7236.  

(a) Uniform business license tax fee payments collected
by the Department of Motor Vehicles pursuant to Section 7232
shall be deposited in the State Treasury to the credit of the General
Fund. All other funds collected by the Department of Motor
Vehicles pursuant to Section 7232 shall be deposited in the State
Treasury to the credit of the Motor Vehicle Account in the State
Transportation Fund. The following fees shall be paid to the
department:

(1) For-hire motor carriers of property shall pay, according to
the schedule in subdivision (c), fees indicated as the safety fee,
Carrier Inspection Fee, and uniform business license tax fee, based
on the size of their motor vehicle fleet.

(2) (A) Private carriers of property with a fleet size of 10 or less
motor vehicles shall pay a safety fee of thirty-five dollars ($35).
Private carriers of property with a fleet size of 11 or more motor
vehicles shall pay, according to the schedule in subdivision (c),
fees indicated as the safety fee, based on the size of their motor
vehicle fleet. Any carrier that does not pay a uniform business
license tax fee shall not operate as a for-hire motor carrier.

(B) Private carriers of property shall pay, according to the
schedule of fees in subdivision (c), fees indicated as the carrier
inspection fee based on the size of the motor vehicle fleet.

(b) “Fleet size” as used in this section, does not include vehicles
described in subdivision (e) of Section 34500.

(c) (1) A seasonal permit may be issued to a motor carrier of
property upon payment of fees indicated as the safety fee and
one-twelfth of the fee indicated as the uniform business license
tax fee, rounded to the next dollar, for each month the permit is
valid. The original seasonal permit shall be valid for a period of
not less than six months, and may be renewed upon payment of a
five-dollar ($5) fee, and one-twelfth of the fee indicated as a
uniform business license tax fee for each additional month of
operation.

 

begin delete

Fleet Size Commercial Vehicles Fee	Safety Fee	Uniform Business License Tax	Carrier Inspection Fee
1	$60	$60	$130
2-4	$75	$125	$152
5-10	$200	$275	$252
11-20	$240	$470	$573
21-35	$325	$650	$743
36-50	$430	$880	$961
51-100	$535	$1,075	$1,112
101-200	$635	$1,300	$1,463
201-500	$730	$1,510	$1,512
501-1,000	$830	$1,715	$1,600
1,001-2,000	$930	$1,900	$1,800
2,001-over	$1,030	$2,000	$2,114

end delete

 

 

begin insert

begin insert Fleet--Size Commercial Vehicles Fee end insert	begin insert Safety Fee end insert	begin insert Uniform Business License Tax end insert	begin insert Carrier Inspection Fee end insert
begin insert 1       end insert
	begin insert   60 end insert	begin insert  $60 end insert	begin insert  $130 end insert
begin insert 2-4       end insert	begin insert   75 end insert	begin insert 125 end insert	begin insert  152 end insert
begin insert     5-10   end insert	begin insert  200 end insert	begin insert 275 end insert	begin insert  252 end insert
begin insert    11-20  end insert	begin insert  240 end insert	begin insert 470 end insert	begin insert  573 end insert
begin insert    21-35  end insert	begin insert  325 end insert	begin insert 650 end insert	begin insert  743 end insert
begin insert    36-50  end insert	begin insert  430 end insert	begin insert 880 end insert	begin insert  961 end insert
begin insert    51-100   end insert	begin insert  535 end insert	begin insert 1,075  end insert	begin insert 1,112  end insert
begin insert   101-200  end insert	begin insert  635 end insert	begin insert 1,300  end insert	begin insert 1,463  end insert
begin insert   201-500  end insert	begin insert  730 end insert	begin insert 1,510  end insert	begin insert 1,512  end insert
begin insert    501-1,000  end insert	begin insert  830 end insert	begin insert 1,715  end insert	begin insert 1,600  end insert
begin insert  1,001-2,000 end insert	begin insert  930 end insert	begin insert 1,900  end insert	begin insert 1,800  end insert
begin insert  2,001-over  end insert	begin insert 1,030 end insert	begin insert 2,000  end insert	begin insert 2,114  end insert

end insert

 

(2) Notwithstanding the fee schedule in paragraph (1), except
for the carrier inspection fee, motor carriers of property with 10
or fewer trucks shall not pay fees higher than they would have
paid under the fee schedule applicable as of January 1, 1996.

(d) Failure to pay fees required by this section, within the
appropriate timeframe, shall result in additional delinquent fees
as follows:

(1) For a delinquency period of more than 30 days and less than
one year, the penalty is 60 percent of the required fee.

(2) For a delinquency period of one to two years, the penalty is
80 percent of the required fee.

(3) For a delinquency period of more than two years, the penalty
is 160 percent of the required fee.

(e) Funds derived from safety fees, including delinquency fees,
shall remain in the Motor Vehicle Account in the State
Transportation Fund and shall be available for appropriation by
the Legislature to cover costs incurred by the Department of Motor
Vehicles and the Department of the California Highway Patrol in
regulating and inspecting motor carriers of property pursuant to
Division 14.8 (commencing with Section 34500) and Division
14.85 (commencing with Section 34600) of the Vehicle Code.

(f) All Carrier Inspection Fees, including delinquency fees,
collected pursuant to this section shall be deposited in the Motor
Vehicle Account in the State Transportation Fund. An amount
equal to the Carrier Inspection Fees collected shall be made
available for appropriation by the Legislature from the Motor
Vehicle Account to the department for the purpose of conducting
truck terminal inspections and roadside safety inspections required
by Section 34514 of the Vehicle Code.

(g) It is the intent of the Legislature that the fee schedule
established in subdivision (c) shall not discriminate against small
fleet or individual vehicle operators or result in a disproportionate
share of those fees being assigned to small fleet or individual
vehicle operators. begin insert It is further the intent of the Legislature that the
amount made available for appropriation pursuant to subdivision
(f) shall fully defray the costs of the department for the purposes
of the truck terminal inspections conducted pursuant to Section
34501.12 of the Vehicle Code and roadside safety inspections
required by Section 34514 of the Vehicle Code. end insert

begin insert

(h) Commencing January 30, 2017, and every five years
thereafter, the Department of the California Highway Patrol shall
report to the Department of Motor Vehicles the amount that the
Department of the California Highway Patrol expended in the
previous fiscal year to conduct the inspections and otherwise
administer the requirements of Section 34501.12 and 34514 of the
Vehicle Code. The Department of Motor Vehicles shall compare
this amount to the revenue it collected, net of its collection costs,
during the same fiscal year from carrier inspection fees received
pursuant to this section. Based on this comparison, the Department
of Motor Vehicles shall, effective July 1, 2017, and every five years
thereafter, adjust the carrier inspection fee specified in subdivision
(c) to ensure that the net revenues from the carrier inspection fee
are sufficient to cover the Department of the California Highway
Patrol’s reasonable costs for the activities described in this
subdivision.

end insert begin delete

(h)

end delete

begin insert (i) end insert  This section shall become operative on January 1, 2016.

SEC. 5.  

Section 34501.12 of the Vehicle Code is amended to
read:

34501.12.  

(a) Notwithstanding Section 408, as used in this
section and Sections 34505.5 and 34505.6, “motor carrier” means
the registered owner of a vehicle described in subdivision (a), (b),
(e), (f), or (g) of Section 34500, except in the following
circumstances:

(1) The registered owner leases the vehicle to another person
for a term of more than four months. If the lease is for more than
four months, the lessee is the motor carrier.

(2) The registered owner operates the vehicle exclusively under
the authority and direction of another person. If the operation is
exclusively under the authority and direction of another person,
that other person may assume the responsibilities as the motor
carrier. If not so assumed, the registered owner is the motor carrier.
A person who assumes the motor carrier responsibilities of another
pursuant to subdivision (b) shall provide to that other person whose
motor carrier responsibility is so assumed, a completed copy of a
departmental form documenting that assumption, stating the period
for which responsibility is assumed, and signed by an agent of the
assuming person. A legible copy shall be carried in each vehicle
or combination of vehicles operated on the highway during the
period for which responsibility is assumed. That copy shall be
presented upon request by an authorized employee of the
department. The original completed departmental form
documenting the assumption shall be provided to the department
within 30 days of the assumption. If the assumption of
responsibility is terminated, the person who had assumed
responsibility shall so notify the department in writing within 30
days of the termination.

(b) (1) A motor carrier may combine two or more terminals
that are not subject to an unsatisfactory compliance rating within
the last 36 months for purposes of the inspection required by
subdivision (d), subject to all of the following conditions:

(A) The carrier identifies to the department, in writing, each
terminal proposed to be included in the combination of terminals
for purposes of this subdivision prior to an inspection of the
designated terminal pursuant to subdivision (d).

(B) The carrier provides the department, prior to the inspection
of the designated terminal pursuant to subdivision (d), a written
listing of all its vehicles of a type subject to subdivision (a), (b),
(e), (f), or (g) of Section 34500 that are based at each of the
terminals combined for purposes of this subdivision. The listing
shall specify the number of vehicles of each type at each terminal.

(C) The carrier provides to the department at the designated
terminal during the inspection all maintenance records and driver
records and a representative sample of vehicles based at each of
the terminals included within the combination of terminals.

(2) If the carrier fails to provide the maintenance records, driver
records, and representative sample of vehicles pursuant to
subparagraph (C) of paragraph (1), the department shall assign the
carrier an unsatisfactory terminal rating and require a reinspection
to be conducted pursuant to subdivision (h).

(3) For purposes of this subdivision, the following terms have
the following meanings:

(A) “Driver records” includes pull notice system records, driver
proficiency records, and driver timekeeping records.

(B) “Maintenance records” includes all required maintenance,
lubrication, and repair records and drivers’ daily vehicle condition
reports.

(C) “Representative sample” means the following, applied
separately to the carrier’s fleet of motortrucks and truck tractors
and its fleet of trailers:

 

Fleet Size	Representative Sample
1 or 2	All
3 to 8	3
9 to 15	4
16 to 25	6
26 to 50	9
51 to 90	14
91 or more	20

 

(c) Each motor carrier who, in this state, directs the operation
of, or maintains, a vehicle of a type described in subdivision (a)
shall designate one or more terminals, as defined in Section 34515,
in this state where vehicles can be inspected by the department
pursuant to paragraph (4) of subdivision (a) of Section 34501 and
where vehicle inspection and maintenance records and driver
records will be made available for inspection.

(d) (1) The department shall inspect, at least every 25 months,
every terminal, as defined in Section 34515, of a motor carrier
who, at any time, operates a vehicle described in subdivision (a).

(2) The department shall place an inspection priority on those
terminals operating vehicles listed in subdivision (g) of Section
34500.

(3) As used in this section and in Sections 34505.5 and 34505.6,
subdivision (f) of Section 34500 includes only those combinations
where the gross vehicle weight rating of the towing vehicle exceeds
10,000 pounds, but does not include a pickup truck, and subdivision
(g) of Section 34500 includes only those vehicles transporting
hazardous material for which the display of placards is required
pursuant to Section 27903, a license is required pursuant to Section
32000.5, or for which hazardous waste transporter registration is
required pursuant to Section 25163 of the Health and Safety Code.
Historical vehicles, as described in Section 5004, vehicles that
display special identification plates in accordance with Section
5011, implements of husbandry and farm vehicles, as defined in
Chapter 1 (commencing with Section 36000) of Division 16, and
vehicles owned or operated by an agency of the federal government
are not subject to this section or to Sections 34505.5 and 34505.6.

(e) (1) It is the responsibility of the motor carrier to schedule
with the department the inspection required by subdivision (d).
The motor carrier shall submit an application form supplied by the
department, accompanied by the required fee contained in
paragraph (2), for each terminal the motor carrier operates. This
fee shall be submitted within 30 days of establishing a terminal.
All fees submitted under paragraph (2) are nonrefundable.

(2) (A) The fee for each terminal is set forth in the following
table:

 

begin delete

Terminal fleet size	Required fee per terminal
1	$ 270
2	$ 375
3 to 8	$ 510
9 to 15	$ 615
16 to 25	$ 800
26 to 50	$1,040
51 to 90	$1,165
91 or more	$1,870

end delete

 

 

begin insert

begin insert Terminal fleet size end insert	begin insert Required fee per terminal end insert
begin insert 1  end insert	begin insert $ 270 end insert
begin insert 2  end insert	begin insert  375 end insert
begin insert 3 to 8 end insert	begin insert  510 end insert
begin insert 9 to 15 end insert	begin insert  615 end insert
begin insert 16 to 25 end insert	begin insert  800 end insert
begin insert 26 to 50 end insert	begin insert 1,040 end insert
begin insert 51 to 90 end insert	begin insert 1,165 end insert
begin insert 91 or more end insert	begin insert 1,870 end insert

end insert

 

(B) In addition to the fee specified in subparagraph (A), the
motor carrier shall submit an additional fee of three hundred fifty
dollars ($350) for each of its terminals not previously inspected
under the section.

(3) Except as provided in paragraph (5), the inspection term for
each inspected terminal of a motor carrier shall expire 25 months
from the date the terminal receives a satisfactory compliance rating,
as specified in subdivision (h). Applications and fees for subsequent
inspections shall be submitted not earlier than nine months and
not later than seven months before the expiration of the motor
carrier’s then current inspection term. If the motor carrier has
submitted the inspection application and the required
accompanying fees, but the department is unable to complete the
inspection within the 25-month inspection period, then no
additional fee shall be required for the inspection requested in the
original application.

(4) All fees collected pursuant to this subdivision, including
delinquence fees, shall be deposited in the Motor Vehicle Account
in the State Transportation Fund. An amount equal to the fees
collected shall be available for appropriation by the Legislature
from the Motor Vehicle Account to the department for the purpose
of conducting truck terminal inspections and for the additional
roadside safety inspections required by Section 34514.

(5) To avoid the scheduling of a renewal terminal inspection
pursuant to this section during a carrier’s seasonal peak business
periods, the current inspection term of a terminal that has paid all
required fees and has been rated satisfactory in its last inspection
may be reduced by not more than nine months if a written request
is submitted by the carrier to the department at least four months
prior to the desired inspection month, or at the time of payment of
renewal inspection fees in compliance with paragraph (3),
whichever date is earlier. A motor carrier may request this
adjustment of the inspection term during any inspection cycle. A
request made pursuant to this paragraph shall not result in a fee
proration and does not relieve the carrier from the requirements
of paragraph (3).

(6) Failure to pay a fee required by this section, within the
appropriate timeframe, shall result in additional delinquent fees
as follows:

(A) For a delinquency period of more than 30 days and less than
one year, the penalty is 60 percent of the required fee.

(B) For a delinquency period of one to two years, the penalty
is 80 percent of the required fee.

(C) For a delinquency period of more than two years, the penalty
is 160 percent of the required fee.

(7) Federal, state, and local public entities are exempt from the
fee requirement of this section.

(f) It is unlawful for a motor carrier to operate a vehicle subject
to this section without having submitted an inspection application
and the required fees to the department as required by subdivision
(e) or (h).

(g) (1) It is unlawful for a motor carrier to operate a vehicle
subject to this section after submitting an inspection application
to the department, without the inspection described in subdivision
(d) having been performed and a safety compliance report having
been issued to the motor carrier within the 25-month inspection
period or within 60 days immediately preceding the inspection
period.

(2) It is unlawful for a motor carrier to contract or subcontract
with, or otherwise engage the services of, another motor carrier,
subject to this section, unless the contracted motor carrier has
complied with this section. A motor carrier shall not contract or
subcontract with, or otherwise engage the services of, another
motor carrier until the contracted motor carrier provides
certification of compliance with this section. This certification
shall be completed in writing by the contracted motor carrier. The
certification, or a copy thereof, shall be maintained by each
involved party for the duration of the contract or the period of
service plus two years, and shall be presented for inspection
immediately upon the request of an authorized employee of the
department.

(h) (1) An inspected terminal that receives an unsatisfactory
compliance rating shall be reinspected within 120 days after the
issuance of the unsatisfactory compliance rating.

(2) A terminal’s first required reinspection under this subdivision
shall be without charge unless one or more of the following is
established:

(A) The motor carrier’s operation presented an imminent danger
to public safety.

(B) The motor carrier was not in compliance with the
requirement to enroll all drivers in the pull notice program pursuant
to Section 1808.1.

(C) The motor carrier failed to provide all required records and
vehicles for a consolidated inspection pursuant to subdivision (b).

(3) If the unsatisfactory rating was assigned for any of the
reasons set forth in paragraph (2), the carrier shall submit the
required fee as provided in paragraph (4).

(4) Applications for reinspection pursuant to paragraph (3) or
for second and subsequent consecutive reinspections under this
subdivision shall be accompanied by the fee specified in paragraph
(2) of subdivision (e) and shall be filed within 60 days of issuance
of the unsatisfactory compliance rating. The reinspection fee is
nonrefundable.

(5) When a motor carrier’s Motor Carrier of Property Permit or
Public Utilities Commission operating authority is suspended as
a result of an unsatisfactory compliance rating, the department
shall not conduct a reinspection for permit or authority
reinstatement until requested to do so by the Department of Motor
Vehicles or the Public Utilities Commission, as appropriate.

(i) It is the intent of the Legislature that the department make
its best efforts to inspect terminals within the resources provided.
In the interest of the state, the Commissioner of the California
Highway Patrol may extend for a period, not to exceed six months,
the inspection terms beginning prior to July 1, 1990.

(j) Except as provided in paragraph (5), to encourage motor
carriers to attain continuous satisfactory compliance ratings, the
department may establish and implement an incentive program
consisting of the following:

(1) After the second consecutive satisfactory compliance rating
assigned to a motor carrier terminal as a result of an inspection
conducted pursuant to subdivision (d), and after each consecutive
satisfactory compliance rating thereafter, an appropriate certificate,
denoting the number of consecutive satisfactory ratings, shall be
awarded to the terminal, unless the terminal has received an
unsatisfactory compliance rating as a result of an inspection
conducted in the interim between the consecutive inspections
conducted under subdivision (d), or the motor carrier is rated
unsatisfactory by the department following a controlled substances
and alcohol testing program inspection. The certificate authorized
under this paragraph shall not be awarded for performance in the
administrative review authorized under paragraph (2). However,
the certificate shall include a reference to any administrative
reviews conducted during the period of consecutive satisfactory
compliance ratings.

(2) Unless the department’s evaluation of the motor carrier’s
safety record indicates a declining level of compliance, a terminal
that has attained two consecutive satisfactory compliance ratings
assigned following inspections conducted pursuant to subdivision
(d) is eligible for an administrative review in lieu of the next
required inspection, unless the terminal has received an
unsatisfactory compliance rating as a result of an inspection
conducted in the interim between the consecutive inspections
conducted under subdivision (d). An administrative review shall
consist of all of the following:

(A) A signed request by a terminal management representative
requesting the administrative review in lieu of the required
inspection containing a promise to continue to maintain a
satisfactory level of compliance for the next 25-month inspection
term.

(B) A review with a terminal management representative of the
carrier’s record as contained in the department’s files. If a terminal
has been authorized a second consecutive administrative review,
the review required under this subparagraph is optional, and may
be omitted at the carrier’s request.

(C) Absent any cogent reasons to the contrary, upon completion
of the requirements of subparagraphs (A) and (B), the safety
compliance rating assigned during the last required inspection shall
be extended for 25 months.

(3) Not more than two administrative reviews may be conducted
consecutively. At the completion of the 25-month inspection term
following a second administrative review, a terminal inspection
shall be conducted pursuant to subdivision (d). If this inspection
results in a satisfactory compliance rating, the terminal shall again
be eligible for an administrative review in lieu of the next required
inspection. If the succession of satisfactory ratings is interrupted
by a rating of other than satisfactory, irrespective of the reason for
the inspection, the terminal shall again attain two consecutive
satisfactory ratings to become eligible for an administrative review.

(4) As a condition for receiving the administrative reviews
authorized under this subdivision in lieu of inspections, and in
order to ensure that compliance levels remain satisfactory, the
motor carrier shall agree to accept random, unannounced
inspections by the department.

(5) Notwithstanding paragraphs (1) to (4), inclusive, a motor
carrier of hazardous materials shall not be granted administrative
review pursuant to this subdivision in lieu of a terminal inspection
pursuant to subdivision (d) at any terminal from which hazardous
materials carrying vehicles identified by paragraph (3) of
subdivision (d) are operated.

(k) This section shall be known and may be cited as the Biennial
Inspection of Terminals Program or BIT.

(l) The department shall, on or before January 1, 2016, adopt
regulations establishing a performance-based truck terminal
inspection priority selection system.

(m) This section shall remain in effect only until January 1,
2016, and as of that date is repealed, unless a later enacted statute,
that is enacted before January 1, 2016, deletes or extends that date.

SEC. 6.  

Section 34501.12 is added to the Vehicle Code, to
read:

34501.12.  

(a) Vehicles and the operation thereof, subject to
this section, are those described in subdivision (a), (b), (e), (f), (g),
(j), or (k) of Section 34500.

(b) It is unlawful for a motor carrier to operate any vehicle of
a type described in subdivision (a) without identifying to the
department all terminals, as defined in Section 34515, in this state
where vehicles may be inspected by the department pursuant to
paragraph (4) of subdivision (a) of Section 34501 and where
vehicle inspection and maintenance records and driver records will
be made available for inspection. Motor carriers shall make
vehicles and records available for inspection upon request by an
authorized representative of the department. If a motor carrier fails
to provide vehicles and records, an unsatisfactory terminal rating
shall be issued by the department.

(1) The number of vehicles that will be selected for inspection
by the department at a terminal shall be based on terminal fleet
size and applied separately to a terminal fleet of power units and
trailers, according to the following schedule:

 

Fleet Size	Representative Sample
1 or 2	All
3 to 8	3
9 to 15	4
16 to 25	6
26 to 50	9
51 to 90	14
91 or more	20

 

(2) The lessor of any vehicle described in subdivision (a) shall
make vehicles available for inspection upon request of an
authorized representative of the department in the course of
inspecting the terminal of the lessee. This section does not affect
whether the lessor or driver provided by the lessor is an employee
of the authorized carrier lessee, and compliance with this section
and its attendant administrative requirements does not imply an
employee-employer relationship.

(c) (1) The department may inspect any terminal, as defined in
Section 34515, of a motor carrier who, at any time, operates any
vehicle described in subdivision (a).

(2) The department shall adopt rules and regulations establishing
a performance-based truck terminal inspection selection priority
system. In adopting the system’s rules and regulations, the
department shall incorporate methodologies consistent with those
used by the Federal Motor Carrier Safety Administration, including
those related to the quantitative analysis of safety-related motor
carrier performance data, collected during the course of inspection
or enforcement contact by authorized representatives of the
department or any authorized federal, state, or local safety official,
in categories, including, but not limited to, driver fatigue, driver
fitness, vehicle maintenance, and controlled substances and alcohol
use. The department shall also incorporate other safety-related
motor carrier performance data in this system, including citations
and accident information. The department shall create a database
to include all performance-based data specified in this section that
shall be updated in a manner to provide real-time information to
the department on motor carrier performance. The department
shall prioritize for selection those motor carrier terminals never
previously inspected by the department, those identified by the
inspection priority selection system, and those terminals operating
vehicles listed in subdivision (g) of Section 34500. The department
is not required to inspect a terminal subject to inspection pursuant
to this section more often than once every six years, if a terminal
receives a satisfactory compliance rating as the result of a terminal
inspection conducted by the department pursuant to this section
or Section 34501, or if the department has not received notification
by the system of a motor carrier operating while exceeding the
threshold of the inspection selection priority system. Any motor
carrier that is inspected and receives less than a satisfactory
compliance rating, or that falls below the threshold of the selection
priority system, shall be subject to periodic inquiries and
inspections as outlined in subdivision (f), and these inquiries and
inspections shall be based on the severity of the violations.

(3) As used in this section and Section 34505.6, subdivision (f)
of Section 34500 includes only those combinations where the gross
vehicle weight rating of the towing vehicle exceeds 10,000 pounds,
but does not include a pickup truck or any combination never
operated in commercial use, and subdivision (g) of Section 34500
includes only those vehicles transporting hazardous material for
which the display of placards is required pursuant to Section 27903,
a license is required pursuant to Section 32000.5, or for which
hazardous waste transporter registration is required pursuant to
Section 25163 of the Health and Safety Code. Notwithstanding
Section 5014.1, vehicles that display special identification plates
in accordance with Section 5011, historical vehicles, as described
in Section 5004, implements of husbandry and farm vehicles, as
defined in Chapter 1 (commencing with Section 36000) of Division
16, and vehicles owned or operated by an agency of the federal
government are not subject to this section or Section 34505.6.

(d) It is unlawful for a motor carrier to operate, or cause to be
operated, any vehicle which is subject to this section, Section
34520, or Division 14.85 (commencing with Section 34600), unless
the motor carrier is knowledgeable of, and in compliance with, all
applicable statutes and regulations.

(e) It is unlawful for a motor carrier to contract or subcontract
with, or otherwise engage the services of, another motor carrier,
subject to this section, unless the contracted motor carrier has
complied with subdivision (d). A motor carrier shall not contract
or subcontract with, or otherwise engage the services of, another
motor carrier until the contracted motor carrier provides
certification of compliance with subdivision (d). This certification
shall be completed in writing by the contracted motor carrier in a
manner prescribed by the department. The certification, or a copy
of the certification, shall be maintained by each involved party for
the duration of the contract or the period of service plus two years,
and shall be presented for inspection immediately upon the request
of an authorized employee of the department. The certifications
required by this subdivision and subdivision (b) of 34620 may be
combined.

(f) (1) An inspected terminal that receives an unsatisfactory
compliance rating shall be reinspected by the department within
120 days after the issuance of the unsatisfactory compliance rating.

(2) When a motor carrier’s Motor Carrier of Property Permit or
Public Utilities Commission operating authority is suspended as
a result of an unsatisfactory compliance rating, the department
shall not conduct a reinspection for permit or authority
reinstatement until requested to do so by the Department of Motor
Vehicles or the Public Utilities Commission, as appropriate.

(g) A motor carrier issued an unsatisfactory terminal rating may
request a review of the rating within five business days of receipt
of the notification of the rating. The department shall conduct and
evaluate the review within 10 business days of the request.

(h) The department shall publish performance-based inspection
completion data and make the data available for public review.

(i) This section shall be known, and may be cited, as the Basic
Inspection of Terminals program or BIT program.

(j) This section shall become operative on January 1, 2016.

SEC. 7.  

Section 34505.5 of the Vehicle Code is amended to
read:

34505.5.  

(a) Every motor carrier operating any vehicle
described in subdivision (a), (b), (e), (f), or (g) of Section 34500,
except those vehicles exempted under Section 34501.12, shall, as
a part of the systematic inspection, maintenance, and lubrication
services required of all motor carriers, require the vehicle or
vehicles for which it is responsible pursuant to Section 34501.12
to be inspected at least every 90 days, or more often if necessary
to ensure safe operation. Vehicles which are out of service for
periods greater than 90 calendar days are not required to be
inspected at 90-day intervals if they are inspected before operation
on the highway. This inspection shall include, but not be limited
to, all of the following:

(1) Brake adjustment.

(2) Brake system components and leaks.

(3) Steering and suspension systems.

(4) Tires and wheels.

(5) Vehicle connecting devices.

(b) No vehicle subject to this section shall be operated on the
highway other than to a place of repair until all defects listed during
the inspection conducted pursuant to subdivision (a) have been
corrected and attested to by the signature of the motor carrier’s
authorized representative.

(c) Records of inspections conducted pursuant to subdivision
(a) shall be kept at the motor carrier’s terminals, as designated in
accordance with Section 34501.12. The records shall be retained
by the motor carrier for two years, and shall be made available for
inspection upon request by any authorized employee of the
department. Each record shall include, but not be limited to, all of
the following:

(1) Identification of the vehicle, including make, model, license
number, company vehicle number, or other means of positive
identification.

(2) Date and nature of each inspection and any repair performed.

(3) Signature of the motor carrier’s authorized representative
attesting to the inspection and to the completion of all required
repairs.

(d) Printouts of inspection and maintenance records maintained
in computer systems shall be accepted in lieu of signed inspection
or repair records if the printouts include the information required
in paragraphs (1) and (2) of subdivision (c).

(e) Notwithstanding subdivisions (a) to (d), inclusive, records
of 90-day inspections need not be retained in California for
interstate vehicles which are not physically based in California.
However, when these vehicles are present in California, they are
subject to inspection by the department. If the inspection results
indicate maintenance program deficiencies, the department may
require the motor carrier to produce the maintenance records or
copies of those records for inspection within 10 working days.

(f) This section shall remain in effect only until January 1, 2016,
and as of that date is repealed, unless a later enacted statute, that
is enacted before January 1, 2016, deletes or extends that date.

SEC. 8.  

Section 34505.5 is added to the Vehicle Code, to read:

34505.5.  

(a) Every motor carrier operating any vehicle
described in subdivision (a), (b), (e), (f), (g), (j), or (k) of Section
34500, except those vehicles exempted under Section 34501.12,
shall, as a part of the systematic inspection, maintenance, and
lubrication services required of all motor carriers, require the
vehicle or vehicles for which it is responsible pursuant to Section
34501.12 to be inspected at least every 90 days, or more often if
necessary to ensure safe operation. Vehicles which are out of
service for periods greater than 90 calendar days are not required
to be inspected at 90-day intervals if they are inspected before
operation on the highway. This inspection shall include, but not
be limited to, all of the following:

(1) Brake adjustment.

(2) Brake system components and leaks.

(3) Steering and suspension systems.

(4) Tires and wheels.

(5) Vehicle connecting devices.

(b) No vehicle subject to this section shall be operated on the
highway other than to a place of repair until all defects listed during
the inspection conducted pursuant to subdivision (a) have been
corrected and attested to by the signature of the motor carrier’s
authorized representative.

(c) Records of inspections conducted pursuant to subdivision
(a) shall be kept at the motor carrier’s terminals, as designated in
accordance with Section 34501.12. The records shall be retained
by the motor carrier for two years, and shall be made available for
inspection upon request by any authorized employee of the
department. Each record shall include, but not be limited to, all of
the following:

(1) Identification of the vehicle, including make, model, license
number, company vehicle number, or other means of positive
identification.

(2) Date and nature of each inspection and any repair performed.

(3) Signature of the motor carrier’s authorized representative
attesting to the inspection and to the completion of all required
repairs.

(d) Printouts of inspection and maintenance records maintained
in computer systems shall be accepted in lieu of signed inspection
or repair records if the printouts include the information required
in paragraphs (1) and (2) of subdivision (c).

(e) Notwithstanding subdivisions (a) to (d), inclusive, records
of 90-day inspections need not be retained in California for
interstate vehicles which are not physically based in California.
However, when these vehicles are present in California, they are
subject to inspection by the department. If the inspection results
indicate maintenance program deficiencies, the department may
require the motor carrier to produce the maintenance records or
copies of those records for inspection within 10 working days.

(f) This section shall become operative on January 1, 2016.

SEC. 9.  

Section 34505.6 of the Vehicle Code is amended to
read:

34505.6.  

(a) Upon determining that a motor carrier of property
who is operating any vehicle described in subdivision (a), (b), (e),
(f), (g), or (k) of Section 34500, or any motortruck of two or more
axles that is more than 10,000 pounds gross vehicle weight rating,
on a public highway, has done any of the following, the department
shall recommend that the Department of Motor Vehicles suspend
or revoke the carrier’s motor carrier permit, or for interstate
operators, the department shall recommend to the Federal Motor
Carrier Safety Administration that appropriate administrative action
be taken against the carrier:

(1) Failed to maintain any vehicle of a type described above in
a safe operating condition or to comply with the Vehicle Code or
with applicable regulations contained in Title 13 of the California
Code of Regulations, and, in the department’s opinion, that failure
presents an imminent danger to public safety or constitutes a
consistent failure so as to justify a suspension or revocation of the
motor carrier’s motor carrier permit.

(2) Failed to enroll all drivers in the pull-notice system as
required by Section 1808.1.

(3) Failed to submit any application or pay any fee required by
subdivision (e) or (h) of Section 34501.12 within the timeframes
set forth in that section.

(b) Upon determining that a household goods carrier, or a
household goods carrier transporting used office, store, or
institution furniture and fixtures under its household goods carrier
permit issued under Section 5137 of the Public Utilities Code,
operating any vehicle described in subdivision (a), (b), (e), (f), (g),
or (k) of Section 34500 on a public highway has done any of the
following, the department shall recommend that the Public Utilities
Commission deny, suspend, or revoke the carrier’s operating
authority, or for interstate operators, the department shall
recommend to the Federal Motor Carrier Safety Administration
that appropriate administrative action be taken against the carrier:

(1) Failed to maintain any vehicle used in transportation for
compensation in a safe operating condition or to comply with the
Vehicle Code or with applicable regulations contained in Title 13
of the California Code of Regulations, and, in the department’s
opinion, that failure presents an imminent danger to public safety
or constitutes a consistent failure so as to justify a suspension,
revocation, or denial of the motor carrier’s operating authority.

(2) Failed to enroll all drivers in the pull-notice system as
required by Section 1808.1.

(3) Failed to submit any application or pay any fee required by
subdivision (e) or (h) of Section 34501.12 within the timeframes
set forth in that section.

(c) For purposes of this section, two consecutive unsatisfactory
compliance ratings for an inspected terminal assigned because the
motor carrier failed to comply with the periodic report requirements
of Section 1808.1 or the cancellation of the carrier’s enrollment
by the Department of Motor Vehicles for the nonpayment of
required fees is a consistent failure. The department shall retain a
record, by operator, of every recommendation made pursuant to
this section.

(d) Before transmitting a recommendation pursuant to
subdivision (a), the department shall notify the carrier in writing
of all of the following:

(1) That the department has determined that the carrier’s safety
record or compliance with Section 1808.1 or subdivision (e) or (h)
of Section 34501.12 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 suspension,
revocation, or denial of the carrier’s motor carrier permit by the
Department of Motor Vehicles, suspension, revocation, of the
motor carrier’s operating authority by the California Public Utilities
Commission, or administrative action by the Federal Motor Carrier
Safety Administration.

(3) That the carrier may request a review of the determination
by the department within five days of its receipt of the notice
required under this subdivision. If a review pursuant to this
paragraph is requested by the carrier, the department shall conduct
and evaluate that review prior to transmitting any notification
pursuant to subdivision (a) or (b).

(e) Upon receipt of a written recommendation from the
department that a motor carrier permit or operating authority be
suspended, revoked, or denied, the Department of Motor Vehicles
or Public Utilities Commission, as appropriate, shall, pending a
hearing in the matter pursuant to Section 34623 or appropriate
Public Utilities Commission authority, suspend the motor carrier
permit or operating authority. The written recommendation shall
specifically indicate compliance with subdivision (d).

(f) This section shall remain in effect only until January 1, 2016,
and as of that date is repealed, unless a later enacted statute, that
is enacted before January 1, 2016, deletes or extends that date.

SEC. 10.  

Section 34505.6 is added to the Vehicle Code, to
read:

34505.6.  

(a) Upon determining that a motor carrier of property
who is operating any vehicle described in subdivision (a), (b), (e),
(f), (g), (j), or (k) of Section 34500, or any motortruck of two or
more axles that is more than 10,000 pounds gross vehicle weight
rating, on a public highway, has done either of the following, the
department shall recommend that the Department of Motor
Vehicles suspend or revoke the carrier’s motor carrier permit, or,
for interstate operators, the department shall recommend to the
Federal Motor Carrier Safety Administration that appropriate
administrative action be taken against the carrier:

(1) Failed to maintain any vehicle of a type described above in
a safe operating condition or to comply with the Vehicle Code or
with applicable regulations contained in Title 13 of the California
Code of Regulations, and, in the department’s opinion, that failure
presents an imminent danger to public safety or constitutes a
consistent failure so as to justify a suspension or revocation of the
motor carrier’s motor carrier permit.

(2) Failed to enroll all drivers in the pull-notice system as
required by Section 1808.1.

(b) Upon determining that a household goods carrier, or a
household goods carrier transporting used office, store, or
institution furniture and fixtures under its household goods carrier
permit issued under Section 5137 of the Public Utilities Code,
operating any vehicle described in subdivision (a), (b), (e), (f), (g),
(j), or (k) of Section 34500 on a public highway, has done either
of the following, the department shall recommend that the Public
Utilities Commission deny, suspend, or revoke the carrier’s
operating authority, or, for interstate operators, the department
shall recommend to the Federal Motor Carrier Safety
Administration that appropriate administrative action be taken
against the carrier:

(1) Failed to maintain any vehicle used in transportation for
compensation in a safe operating condition or to comply with the
Vehicle Code or with applicable regulations contained in Title 13
of the California Code of Regulations, and, in the department’s
opinion, that failure presents an imminent danger to public safety
or constitutes a consistent failure so as to justify a suspension,
revocation, or denial of the motor carrier’s operating authority.

(2) Failed to enroll all drivers in the pull-notice system as
required by Section 1808.1.

(c) For purposes of this section, two consecutive unsatisfactory
compliance ratings for an inspected terminal assigned because the
motor carrier failed to comply with the periodic report requirements
of Section 1808.1 or the cancellation of the carrier’s enrollment
by the Department of Motor Vehicles for the nonpayment of
required fees is a consistent failure. The department shall retain a
record, by operator, of every recommendation made pursuant to
this section.

(d) Before transmitting a recommendation pursuant to
subdivision (a), the department shall notify the carrier in writing
of all of the following:

(1) That the department has determined that the carrier’s safety
record or compliance with Section 1808.1 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 suspension,
revocation, or denial of the carrier’s motor carrier permit by the
Department of Motor Vehicles, suspension, revocation, of the
motor carrier’s operating authority by the California Public Utilities
Commission, or administrative action by the Federal Motor Carrier
Safety Administration.

(3) That the carrier may request a review of the determination
by the department within five days of its receipt of the notice
required under this subdivision. If a review pursuant to this
paragraph is requested by the carrier, the department shall conduct
and evaluate that review prior to transmitting any notification
pursuant to subdivision (a) or (b).

(e) Upon receipt of a written recommendation from the
department that a motor carrier permit or operating authority be
suspended, revoked, or denied, the Department of Motor Vehicles
or Public Utilities Commission, as appropriate, shall, pending a
hearing in the matter pursuant to Section 34623 or appropriate
Public Utilities Commission authority, suspend the motor carrier
permit or operating authority. The written recommendation shall
specifically indicate compliance with subdivision (d).

(f) This section shall become operative on January 1, 2016.

SEC. 11.  

Section 34515 of the Vehicle Code is amended to
read:

34515.  

(a) As used in this division and in regulations adopted
pursuant to this division, “maintenance facility or terminal” means
any place or places where a vehicle of a type listed in Section
34500 is regularly garaged or maintained, or from which it is
operated or dispatched. “Maintenance facility or terminal” may
include a private business or residence.

(b) For the purpose of the inspections required by Section
34501.12, “terminal” means the location or locations in this state
that are designated by a motor carrier, where subject vehicles may
be inspected by the department pursuant to paragraph (4) of
subdivision (a) of Section 34501, and where vehicle maintenance
and inspection records and drivers’ records will be made available
for inspection.

(c) This section shall remain in effect only until January 1, 2016,
and as of that date is repealed, unless a later enacted statute, that
is enacted before January 1, 2016, deletes or extends that date.

SEC. 12.  

Section 34515 is added to the Vehicle Code, to read:

34515.  

(a) As used in this division and in regulations adopted
pursuant to this division, “maintenance facility or terminal” means
any place or places where a vehicle of a type listed in Section
34500 is regularly garaged or maintained, or from which it is
operated or dispatched. “Maintenance facility or terminal” includes
a private business or residence.

(b) For the purpose of the inspections conducted pursuant to
Section 34501.12, “terminal” means the location or locations in
this state that are designated by a motor carrier, where subject
vehicles may be inspected by the department and where vehicle
maintenance and inspection records and drivers’ records will be
made available for inspection.

(c) This section shall become operative on January 1, 2016.

SEC. 13.  

Section 34601 of the Vehicle Code is amended to
read:

34601.  

(a) As used in this division, “motor carrier of property”
means any person who operates any commercial motor vehicle as
defined in subdivision (c). “Motor carrier of property” does not
include a household goods carrier, as defined in Section 5109 of
the Public Utilities Code, a household goods carrier transporting
used office, store, and institution furniture and fixtures under its
household goods carrier permit pursuant to Section 5137 of the
Public Utilities Code, persons providing only transportation of
passengers, or a passenger stage corporation transporting baggage
and express upon a passenger vehicle incidental to the
transportation of passengers.

(b) As used in this division, “for-hire motor carrier of property”
means a motor carrier of property as defined in subdivision (a)
who transports property for compensation.

(c) (1) As used in this division, except as provided in paragraph
(2), a “commercial motor vehicle” means any self-propelled vehicle
listed in subdivisions (a), (b), (f), (g), and (k) of Section 34500,
any motor truck of two or more axles that is more than 10,000
pounds gross vehicle weight rating, and any other motor vehicle
used to transport property for compensation.

(2) As used in this division, “commercial motor vehicle” does
not include any of the following:

(A) Vehicles identified in subdivision (f) of Section 34500, if
the gross vehicle weight rating of the towing vehicle is 10,000
pounds or less.

(B) Vehicles identified in subdivision (g) of Section 34500, if
the hazardous material transportation does not require the display
of placards under Section 27903, a license under Section 32000.5,
or a hazardous waste transporter registration under Section 25163
of the Health and Safety Code, and the vehicle is not operated in
commercial use.

(C) Vehicles operated by a household goods carrier, as defined
in Section 5109 of the Public Utilities Code, under the household
goods carrier permit pursuant to Section 5137 of that code.

(D) Vehicles operated by a household goods carrier to transport
used office, store, and institution furniture and fixtures under its
household goods carrier permit pursuant to Section 5137 of the
Public Utilities Code.

(E) Pickup trucks as defined in Section 471, if the conditions
in subparagraphs (A) and (B) are also met.

(F) Two-axle daily rental trucks with a gross vehicle weight
rating of less than 26,001 pounds, when operated in noncommercial
use.

(G) Motor trucks or two-axle truck tractors, with a gross vehicle
weight rating of less than 26,001 pounds, when used solely to tow
a camp trailer, trailer coach, fifth-wheel travel trailer, or utility
trailer. Vehicle combinations described in this subparagraph are
not subject to Section 27900, 34501.12, or 34507.5.

(d) For purposes of this chapter, “private carrier” means a motor
carrier of property, who transports only his or her own property,
including, but not limited to, the delivery of goods sold by that
carrier.

(e) This section shall remain in effect only until January 1, 2016,
and as of that date is repealed, unless a later enacted statute, that
is enacted before January 1, 2016, deletes or extends that date.

begin insert

begin insert SEC. 13.5. end insert   

end insert

begin insert Section 34601 of the end insert begin insert Vehicle Code end insert begin insert is amended to
read: end insert

34601.  

(a) As used in this division, “motor carrier of property”
means any person who operates any commercial motor vehicle as
defined in subdivision (c). “Motor carrier of property” does not
include a household goods carrier, as defined in Section 5109 of
the Public Utilities Code, a household goods carrier transporting
used office, store, and institution furniture and fixtures under its
household goods carrier permit pursuant to Section 5137 of the
Public Utilities Code, persons providing only transportation of
passengers, or a passenger stage corporation transporting baggage
and express upon a passenger vehicle incidental to the
transportation of passengers.

(b) As used in this division, “for-hire motor carrier of property”
means a motor carrier of property as defined in subdivision (a)
who transports property for compensation.

(c) (1) As used in this division, except as provided in paragraph
(2), a “commercial motor vehicle” means any self-propelled vehicle
listed in subdivisions (a), (b), (f), (g), and (k) of Section 34500,
any begin delete motor truck end delete begin insert motortruck end insert of two or more axles that is more than
10,000 pounds gross vehicle weight rating, and any other motor
vehicle used to transport property for compensation.

(2) As used in this division, “commercial motor vehicle” does
not include any of the following:

(A) Vehicles identified in subdivision (f) of Section 34500, if
the gross vehicle weight rating of the towing vehicle is 10,000
pounds or less.

(B) Vehicles identified in subdivision (g) of Section 34500, if
the hazardous material transportation does not require the display
of placards under Section 27903, a license under Section 32000.5,
or a hazardous waste transporter registration under Section 25163
of the Health and Safety Code, and the vehicle is not operated in
commercial use.

(C) Vehicles operated by a household goods carrier, as defined
in Section 5109 of the Public Utilities Code, under the household
goods carrier permit pursuant to Section 5137 of that code.

(D) Vehicles operated by a household goods carrier to transport
used office, store, and institution furniture and fixtures under its
household goods carrier permit pursuant to Section 5137 of the
Public Utilities Code.

(E) Pickup trucks as defined in Section 471, if the conditions
in subparagraphs (A) and (B) are also met.

(F) Two-axle daily rental trucks with a gross vehicle weight
rating of less than 26,001 pounds, when operated in noncommercial
use.

(G)  begin delete Motor trucks end delete begin insert Motortrucks end insert or two-axle truck tractors, with
a gross vehicle weight rating of less than 26,001 pounds, begin delete when
used end delete begin insert operated end insert solely to tow a camp trailer, trailer coach, fifth-wheel
travel trailer, begin insert trailer designed to transport watercraft, end insert or utility
trailer. Vehicle combinations described in this subparagraph are
not subject to Section 27900, 34501.12, or 34507.5.

begin insert

(H) Motortrucks or two-axle truck tractors, with a gross vehicle
weight rating of less than 16,001 pounds, operated singly in
noncommercial use.

end insert

(d) For purposes of this chapter, “private carrier” means a motor
carrier of property, who transports only his or her own property,
including, but not limited to, the delivery of goods sold by that
carrier.

begin insert

(e) This section shall remain in effect only until January 1, 2016,
and as of that date is repealed, unless a later enacted statute, that
is enacted before January 1, 2016, deletes or extends that date.

end insert

SEC. 14.  

Section 34601 is added to the Vehicle Code, to read:

34601.  

(a) As used in this division, “motor carrier of property”
means any person who operates any commercial motor vehicle as
defined in subdivision (c). “Motor carrier of property” does not
include a household goods carrier, as defined in Section 5109 of
the Public Utilities Code, a household goods carrier transporting
used office, store, and institution furniture and fixtures under its
household goods carrier permit pursuant to Section 5137 of the
Public Utilities Code, persons providing only transportation of
passengers, or a passenger stage corporation transporting baggage
and express upon a passenger vehicle incidental to the
transportation of passengers.

(b) As used in this division, “for-hire motor carrier of property”
means a motor carrier of property as defined in subdivision (a)
who transports property for compensation.

(c) (1) As used in this division, except as provided in paragraph
(2), a “commercial motor vehicle” means any self-propelled vehicle
listed in subdivisions (a), (b), (f), (g), and (k) of Section 34500,
any motortruck of two or more axles that is more than 10,000
pounds gross vehicle weight rating, and any other motor vehicle
used to transport property for compensation.

(2) As used in this division, “commercial motor vehicle” does
not include any of the following:

(A) Vehicles identified in subdivision (f) of Section 34500, if
the gross vehicle weight rating of the towing vehicle is 10,000
pounds or less.

(B) Vehicles identified in subdivision (g) of Section 34500, if
the hazardous material transportation does not require the display
of placards under Section 27903, a license under Section 32000.5,
or a hazardous waste transporter registration under Section 25163
of the Health and Safety Code, and the vehicle is not operated in
commercial use.

(C) Vehicles operated by a household goods carrier, as defined
in Section 5109 of the Public Utilities Code, under the household
goods carrier permit pursuant to Section 5137 of that code.

(D) Vehicles operated by a household goods carrier to transport
used office, store, and institution furniture and fixtures under its
household goods carrier permit pursuant to Section 5137 of the
Public Utilities Code.

(E) Pickup trucks as defined in Section 471, if the conditions
in subparagraphs (A) and (B) are also met.

(F) Two-axle daily rental trucks with a gross vehicle weight
rating of less than 26,001 pounds, when begin delete not end delete operated in
noncommercial use.

(G) Vehicles never operated in commercial use, including
motortrucks or two-axle truck tractors, with a gross vehicle weight
rating of less than 26,001 pounds, when operated singly, or, when
used to tow a camp trailer, trailer coach, fifth-wheel travel trailer,
trailer designed to transport watercraft, or a utility trailer, never
operated in commercial use. Vehicle combinations described in
this subparagraph are not subject to Section 27900, 34501.12, or
34507.5.

(d) For purposes of this chapter, “private carrier” means a motor
carrier of property, who transports only his or her own property,
including, but not limited to, the delivery of goods sold by that
carrier.

(e) This section shall become operative on January 1, 2016.

SEC. 15.  

Section 34606 of the Vehicle Code is repealed.

SEC. 16.  

Section 34622 of the Vehicle Code is amended to
read:

34622.  

This chapter does not apply to any of the following:

(a) Vehicles described in Section 5004 or 5011, and those that
are exempt from vehicle registration fees.

(b) A household goods carrier transporting used office, store,
and institution furniture and fixtures under its household goods
carrier permit pursuant to Section 5137 of the Public Utilities Code.

SEC. 17.  

Section 34623 of the Vehicle Code is amended to
read:

34623.  

(a) The Department of the California Highway Patrol
has exclusive jurisdiction for the regulation of safety of operation
of motor carriers of property.

(b) The motor carrier permit of a motor carrier of property may
be suspended for failure to do any of the following:

(1) Maintain any vehicle of the carrier in a safe operating
condition or to comply with this code or with applicable regulations
contained in Title 13 of the California Code of Regulations, if that
failure is either a consistent failure or presents an imminent danger
to public safety.

(2) Enroll all drivers in the pull notice system as required by
Section 1808.1.

(3) Submit any application or pay any fee required by
subdivision (e) or (h) of Section 34501.12 within the timeframes
set forth in that section.

(c) The motor carrier permit of a motor carrier of property shall
be suspended for failure to either (1) comply with the requirements
of federal law described in subdivision (a) of Section 34520 of the
Vehicle Code, or (2) make copies of results and other records
available as required by subdivision (b) of that section. The
suspension shall be as follows:

(1) For a serious violation, which is a willful failure to perform
substance abuse testing in accordance with state or federal law:

(A) For a first offense, a mandatory five-day suspension.

(B) For a second offense within three years of a first offense, a
mandatory three-month suspension.

(C) For a third offense within three years of a first offense, a
mandatory one-year suspension.

(2) For a nonserious violation, the time recommended to the
department by the Department of the California Highway Patrol.

(3) For the purposes of this subdivision, “willful failure” means
any of the following:

(A) An intentional and uncorrected failure to have a controlled
substances and alcohol testing program in place.

(B) An intentional and uncorrected failure to enroll an employed
driver into the controlled substances and alcohol testing program.

(C) A knowing use of a medically disqualified driver, including
the failure to remove the driver from safety-sensitive duties upon
notification of the medical disqualification.

(D) An attempt to conceal legal deficiencies in the motor
carrier’s controlled substances and alcohol testing program.

(d) The department, pending a hearing in the matter pursuant
to subdivision (f), may suspend a carrier’s permit.

(e) (1) A motor carrier whose motor carrier permit is suspended
pursuant to subdivision (b) may obtain a reinspection of its terminal
and vehicles by the Department of the California Highway Patrol
by submitting a written request for reinstatement to the department
and paying a reinstatement fee as required by Section 34623.5.

(2) A motor carrier whose motor carrier permit is suspended
for failure to submit any application or to pay any fee required by
Section 34501.12 shall present proof of having submitted that
application or have paid that fee to the Department of the California
Highway Patrol before applying for reinstatement of its motor
carrier permit.

(3) The department shall deposit all reinstatement fees collected
from motor carriers of property pursuant to this section in the fund.
Upon receipt of the fee, the department shall forward a request to
the Department of the California Highway Patrol, which shall
perform a reinspection within a reasonable time, or shall verify
receipt of the application or fee or both the application and fee.
Following the term of a suspension imposed under Section 34670,
the department shall reinstate a carrier’s motor carrier permit
suspended under subdivision (b) upon notification by the
Department of the California Highway Patrol that the carrier’s
safety compliance has improved to the satisfaction of the
Department of the California Highway Patrol, or that the required
application or fees have been received by the Department of the
California Highway Patrol, unless the permit is suspended for
another reason or has been revoked.

(f) Whenever the department suspends the permit of any carrier
pursuant to subdivision (b), (c), or paragraph (3) of subdivision
(i), the department shall furnish the carrier with written notice of
the suspension and shall provide for a hearing within a reasonable
time, not to exceed 21 days, after a written request is filed with
the department. At the hearing, the carrier shall show cause why
the suspension should not be continued. Following the hearing,
the department may terminate the suspension, continue the
suspension in effect, or revoke the permit. The department may
revoke the permit of any carrier suspended pursuant to subdivision
(b) at any time that is 90 days or more after its suspension if the
carrier has not filed a written request for a hearing with the
department or has failed to submit a request for reinstatement
pursuant to subdivision (e).

(g) Notwithstanding any other provision of this code, no hearing
shall be provided when the suspension of the motor carrier permit
is based solely upon the failure of the motor carrier to maintain
satisfactory proof of financial responsibility as required by this
code, or failure of the motor carrier to submit an application or to
pay fees required by Section 34501.12.

(h) A motor carrier of property may not operate a commercial
motor vehicle on any public highway in this state during any period
its motor carrier of property permit is suspended pursuant to this
division.

(i) (1) A motor carrier of property whose motor carrier permit
is suspended pursuant to this section or Section 34505.6, which
suspension is based wholly or in part on the failure of the motor
carrier to maintain any vehicle in safe operating condition, may
not lease, or otherwise allow, another motor carrier to operate the
vehicles of the carrier subject to the suspension, during the period
of the suspension.

(2) A motor carrier of property may not knowingly lease,
operate, dispatch, or otherwise utilize any vehicle from a motor
carrier of property whose motor carrier permit is suspended, which
suspension is based wholly or in part on the failure of the motor
carrier to maintain any vehicle in safe operating condition.

(3) The department may immediately suspend the motor carrier
permit of any motor carrier that the department determines to be
in violation of paragraph (2).

(j) This section shall remain in effect only until January 1, 2016,
and as of that date is repealed, unless a later enacted statute, that
is enacted before January 1, 2016, deletes or extends that date.

SEC. 18.  

Section 34623 is added to the Vehicle Code, to read:

34623.  

(a) The Department of the California Highway Patrol
has exclusive jurisdiction for the regulation of safety of operation
of motor carriers of property.

(b) The motor carrier permit of a motor carrier of property may
be suspended for failure to do either of the following:

(1) Maintain any vehicle of the carrier in a safe operating
condition or to comply with this code or with applicable regulations
contained in Title 13 of the California Code of Regulations, if that
failure is either a consistent failure or presents an imminent danger
to public safety.

(2) Enroll all drivers in the pull-notice system as required by
Section 1808.1.

(c) The motor carrier permit of a motor carrier of property shall
be suspended for failure to either (1) comply with the requirements
of federal law described in subdivision (a) of Section 34520 of the
Vehicle Code, or (2) make copies of results and other records
available as required by subdivision (b) of that section. The
suspension shall be as follows:

(1) For a serious violation, which is a willful failure to perform
substance abuse testing in accordance with state or federal law:

(A) For a first offense, a mandatory five-day suspension.

(B) For a second offense within three years of a first offense, a
mandatory three-month suspension.

(C) For a third offense within three years of a first offense, a
mandatory one-year suspension.

(2) For a nonserious violation, the time recommended to the
department by the Department of the California Highway Patrol.

(3) For the purposes of this subdivision, “willful failure” means
any of the following:

(A) An intentional and uncorrected failure to have a controlled
substances and alcohol testing program in place.

(B) An intentional and uncorrected failure to enroll an employed
driver into the controlled substances and alcohol testing program.

(C) A knowing use of a medically disqualified driver, including
the failure to remove the driver from safety-sensitive duties upon
notification of the medical disqualification.

(D) An attempt to conceal legal deficiencies in the motor
carrier’s controlled substances and alcohol testing program.

(d) The department, pending a hearing in the matter pursuant
to subdivision (f), may suspend a carrier’s permit.

(e) (1) A motor carrier whose motor carrier permit is suspended
pursuant to subdivision (b) may obtain a reinspection of its terminal
and vehicles by the Department of the California Highway Patrol
by submitting a written request for reinstatement to the department
and paying a reinstatement fee as required by Section 34623.5.

(2) The department shall deposit all reinstatement fees collected
from motor carriers of property pursuant to this section in the fund.
Upon receipt of the fee, the department shall forward a request to
the Department of the California Highway Patrol, which shall
perform a reinspection within a reasonable time, or shall verify
receipt of the application or fee or both the application and fee.
Following the term of a suspension imposed under Section 34670,
the department shall reinstate a carrier’s motor carrier permit
suspended under subdivision (b) upon notification by the
Department of the California Highway Patrol that the carrier’s
safety compliance has improved to the satisfaction of the
Department of the California Highway Patrol, unless the permit
is suspended for another reason or has been revoked.

(f) Whenever the department suspends the permit of any carrier
pursuant to subdivision (b), (c), or paragraph (3) of subdivision
(i), the department shall furnish the carrier with written notice of
the suspension and shall provide for a hearing within a reasonable
time, not to exceed 21 days, after a written request is filed with
the department. At the hearing, the carrier shall show cause why
the suspension should not be continued. Following the hearing,
the department may terminate the suspension, continue the
suspension in effect, or revoke the permit. The department may
revoke the permit of any carrier suspended pursuant to subdivision
(b) at any time that is 90 days or more after its suspension if the
carrier has not filed a written request for a hearing with the
department or has failed to submit a request for reinstatement
pursuant to subdivision (e).

(g) Notwithstanding any other provision of this code, a hearing
shall not be provided if the suspension of the motor carrier permit
is based solely upon the failure of the motor carrier to maintain
satisfactory proof of financial responsibility as required by this
code.

(h) A motor carrier of property may not operate a commercial
motor vehicle on any public highway in this state during any period
its motor carrier of property permit is suspended pursuant to this
division.

(i) (1) A motor carrier of property whose motor carrier permit
is suspended pursuant to this section or Section 34505.6, which
suspension is based wholly or in part on the failure of the motor
carrier to maintain any vehicle in safe operating condition, may
not lease, or otherwise allow, another motor carrier to operate the
vehicles of the carrier subject to the suspension, during the period
of the suspension.

(2) A motor carrier of property may not knowingly lease,
operate, dispatch, or otherwise utilize any vehicle from a motor
carrier of property whose motor carrier permit is suspended, which
suspension is based wholly or in part on the failure of the motor
carrier to maintain any vehicle in safe operating condition.

(3) The department may immediately suspend the motor carrier
permit of any motor carrier that the department determines to be
in violation of paragraph (2).

(j) This section shall become operative on January 1, 2016.

SEC. 19.  

Section 40000.22 of the Vehicle Code is amended to
read:

40000.22.  

(a) A violation of subdivision (e) of Section 34501,
subdivision (f) of Section 34501.12, or subdivision (c) of Section
34501.14, relating to applications for inspections, is a misdemeanor
and not an infraction.

(b) A violation of Division 14.85 (commencing with Section
34600), relating to motor carriers of property, is a misdemeanor
and not an infraction.

(c) This section shall remain in effect only until January 1, 2016,
and as of that date is repealed, unless a later enacted statute, that
is enacted before January 1, 2016, deletes or extends that date.

SEC. 20.  

Section 40000.22 is added to the Vehicle Code, to
read:

40000.22.  

(a) A violation of subdivision (e) of Section 34501,
subdivision (b) or (d) of Section 34501.12, or subdivision (c) of
Section 34501.14, relating to applications for inspections, is a
misdemeanor and not an infraction.

(b) A violation of Division 14.85 (commencing with Section
34600), relating to motor carriers of property, is a misdemeanor
and not an infraction.

(c) This section shall become operative on January 1, 2016.

begin insert

begin insert SEC. 21. end insert   

end insert begin insert

Section 13.5 of this bill incorporates amendments to
Section 34601 of the Vehicle Code proposed by both this bill and
Assembly Bill 501. It shall only become operative if (1) both bills
are enacted and become effective on or before January 1, 2014,
(2) each bill amends Section 34601 of the Vehicle Code, and (3)
this bill is enacted after Assembly Bill 501, in which case Section
13 of this bill shall not become operative.

end insert

begin delete SEC. 21. end delete
begin insert SEC. 22. end insert   

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.