BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 529
                                                                  Page  1

          Date of Hearing:   May 15, 2013

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                  AB 529 (Lowenthal) - As Amended:  March 19, 2013 

          Policy Committee:                               
          TransportationVote:15-0

          Urgency:     No                   State Mandated Local Program:  
          Yes    Reimbursable:              No

           SUMMARY  

          This bill reforms the state's Biennial Inspection of Terminals  
          (BIT) Program (to be renamed the Basic Inspection of Terminals  
          Program), effective January 1, 2016, based on a recently  
          established federal program for motor carrier safety.  
          Specifically, this bill:

          1)Transfers responsibility to collect carrier inspection fees  
            from CHP to the DMV.  

          2)Restructures current BIT carrier inspection fees, which are  
            currently levied based on the number of terminals operated by  
            a motor carrier, to instead be based upon the size of the  
            commercial motor vehicle fleet, and aligns fee collection with  
            the DMV's Motor Carrier Permit (MCP) fee collection process.

          3)Imposes a new penalty on motor carriers for failure to pay  
            safety and carrier inspection fees, with specified escalation  
            of the penalty based on lateness of the payment.  

          4)Requires CHP, by January 1, 2016, to promulgate regulations  
            implementing a performance-based truck terminal inspection  
            priority system similar to that used by the Federal Motor  
            Carrier Safety Administration (FMCSA).  

          5)Requires CHP to place an inspection priority on motor carrier  
            terminals that have never been previously inspected, as well  
            as vehicles transporting hazardous materials.  Provides that  
            non-priority terminals would not be required to be inspected  
            less than six years since their last inspection.









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          6)Requires motor carriers operating vehicles as specified in  
            this bill to carry out inspections every 90 days to ensure  
            safe operation, to maintain records of inspections for two  
            years, and to make records available for inspection upon  
            request by the CHP.  

           FISCAL EFFECT  

          1)DMV indicates one-time implementation costs of $125,000 to  
            transition the fee collection from CHP and incorporate into  
            the MCP process. All other costs are minor and absorbable.  
            [Motor Vehicle Account]

          2)CHP will incur minor absorbable costs to prepare information  
            bulletins and revisions to its operational manuals. CHP  
            indicates that adopting a performance-based approach will  
            permit the department to more efficiently focus its resources  
            on new carriers, those who have a declining or unsafe level of  
            compliance, and those who are repeatedly out of compliance. 

           COMMENTS  

           1)Background  . The BIT Program was established in 1988 to ensure  
            the safe operation of commercial vehicles by a motor carrier  
            through the inspection of those vehicles at motor carrier  
            terminals. Under the program, "terminal" is defined as any  
            place where a specified trucks and trailers are regularly  
            garaged, maintained, operated or dispatched. Essentially,  
            terminal means the locations designated by a motor carrier  
            where vehicles subject to the BIT Program may be inspected by  
            the CHP and where vehicle maintenance records and drivers'  
            records will be made available for inspection. The law  
            requires that the CHP perform safety inspections every 25  
            months on every commercial motor carrier terminal operating  
            within the state, and allows for administrative approval for  
            additional 25 month periods for those terminals with ongoing  
            satisfactory safety inspections.

            In December 2010, the FMCSA established a new program designed  
            to improve the safety of large commercial vehicles with  
            respect to reduced crashes, injuries, and fatalities. The  
            program uses a performance-based model and parameters to  
            evaluate and target on-site inspections of interstate motor  
            carriers. This approach allows FMCSA and those states choosing  
            to use the model to channel enforcement and compliance efforts  








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            to carriers that are profiled with potential safety problems.

           2)Purpose  . AB 529 implements a performance-based inspection  
            program patterned after the FMCSA model. By using  
            performance-based prioritization, CHP will focus staff  
            inspection resources where most needed: targeting new motor  
            carriers and ones that that are non-compliant.  Additionally,  
            this bill seeks to improve the efficiency of the program by  
            having DMV assume the inspection fee collection using the  
            existing Motor Carrier Permit fee collection process. 

           Analysis Prepared by  :    Chuck Nicol / APPR. / (916) 319-2081