SB 788 Senate Bill

BILL NUMBER: SB 788	AMENDED
	BILL TEXT

	AMENDED IN SENATE  APRIL 18, 2013

INTRODUCED BY   Committee on Transportation and Housing (Senators
DeSaulnier (Chair), Beall, Cannella, Gaines, Galgiani,  Hill,
  Hueso,  Lara, Liu, Pavley, Roth, and Wyland))


                        FEBRUARY 22, 2013

   An act to  amend Section 21080 of the Public Resources Code,
to  amend Section 6480.1 of the Revenue and Taxation Code, 
to amend Sections 368, 374, 386, and 890.4 of, and to add Section
73.2 to, the Streets and Highways Code,  and to amend 
Section   Sections 5022, 5023, 5101.7, 5106, and 
14606 of  , to add Sections 385.2 and 385.3 to, and to repeal
Sections 378 and 379 of,  the Vehicle Code, relating to
transportation.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 788, as amended, Committee on Transportation and Housing.
Transportation. 
   (1) The California Environmental Quality Act (CEQA) requires a
lead agency, as defined, to prepare, or cause to be prepared, and
certify completion of, an environmental impact report on a project
that it proposes to carry out or approve that may have a significant
effect on the environment, or to adopt a negative declaration if it
finds that the project will not have that effect. Existing law
exempts certain activities from CEQA, including a project for the
institution or increase of passenger or commuter services on rail or
highway rights-of-way already in use, including modernization of
existing stations and parking facilities.  
   This bill would define the term "highway" for these purposes.
 
   (1) 
    (2)  Existing law requires that on July 1 of each
succeeding year, the prepayment rate  of the retail sales tax
 per gallon for aircraft jet fuel, rounded to the nearest
$0.005, be established by the State Board of Equalization based upon
80% of the combined state and local sales tax rate  and the
California Constitution  , as specified, on the arithmetic
average selling price, excluding sales and state excise taxes, as
determined by the board. Existing law requires the board to make its
determination of the rate no later than March 1 of the year prior to
the effective date of the new rate.  Existing law requires
the rate of the prepayment required to be collected for aircraft jet
fuel be equal to 80% of the arithmetic average selling price of
aircraft jet fuel as specified by industry publications. 
Existing law requires that immediately upon making its determination
and setting of the rate, the board must each year, no later than May
1, notify every supplier, wholesaler, and retailer of aircraft jet
fuel. Existing law permits the board to readjust the rate in the
event the price of aircraft jet fuel decreases or increases, and the
established rate results in prepayments that consistently exceed or
are significantly lower than the retailers' sales tax liability.
   This bill would revise the provision that requires the board to
make its determination of the rate no later than March 1 of the year
prior to the effective date of the new rate, and instead would
require this determination to be made no later than March 1 of the
same year as the effective date of the new rate. 
   (3) Existing law gives the Department of Transportation full
possession and control of all state highways. Existing law describes
the authorized routes in the state highway system and establishes a
process for adoption of a highway on an authorized route by the
California Transportation Commission. Existing law authorizes the
commission to relinquish certain state highway segments to local
agencies.  
   This bill would authorize the commission to relinquish portions of
State Highway Routes 68, 74, and 86 to local agencies under certain
conditions. This bill would also authorize the commission to
relinquish a portion of State Highway Route 25 in the City of
Hollister to that city prior to relocation of that route to a
proposed new easterly bypass alignment, under certain conditions, and
would thereafter require the commission to adopt the new bypass
alignment into the state highway system, as specified. This bill
would require all of these relinquishments to be done at no cost to
the state, unless the commission makes a finding of need.  
   (4) Existing law defines "bikeway" for certain purposes to mean
all facilities that provide primarily for bicycle travel. Existing
law categorizes bikeways into 3 classes of facilities.  
   This bill would make various modifications to these provisions.
 
   (5) Existing law defines the terms "logging dolly" and "logging
vehicle" for purposes of the Vehicle Code.  
   This bill would renumber these provisions and revise the
definition of "logging dolly."  
   (6) Existing law authorizes the Department of Motor Vehicles to
issue various specialized license plates, including license plates
commemorating the Olympics. Existing law also provides for the
issuance of substitute or duplicate Olympic license plates under
certain conditions, and for issuance of Olympic plates as
environmental license plates with a special series of letters or
numbers. Existing law allows an existing holder of Olympic license
plates to renew them or transfer them to another vehicle.  
   This bill would provide that substitute or duplicate Olympic
license plates shall not be available beginning on January 1, 2014.
The bill would provide for the department to issue regular series
plates whenever holders of Olympic plates request substitute or
duplicate plates, and, in that regard, would also authorize holders
of Olympic plates issued as environmental license plates to apply for
other special license plates to be issued with the same combination
of letters or numbers as appear on their Olympic plates. The bill
would make other conforming changes.  
   (7) Existing law provides for certain revenues derived from
Olympic license plates to be deposited in the California Olympic
Training Account in the General Fund. Existing law requires the
Controller to annually transfer the moneys in that account to the
General Fund.  
   This bill would instead provide for deposit of those revenues
directly into the General Fund.  
   (2) 
    (8)  Existing law prohibits a person from employing,
hiring, knowingly permitting, or authorizing any person to drive a
motor vehicle owned by him or her or under his or her control upon
the highways unless that person is licensed for the appropriate class
of vehicle to be driven. Existing law requires that whenever a
person fails to qualify, on reexamination, to operate a commercial
motor vehicle, an employer shall report that failure to the
Department of Motor Vehicles within 10 days. Existing law requires
that, until January 30, 2014, if a driver has no medical
certification status information in the Commercial Driver License
Information System motor vehicle record obtained from the driver's
state licensing agency, the employing motor carrier may accept as
proof of medical certification a medical examiner's certificate
issued to that driver prior to January 30, 2012. Existing law,
operative January 1, 2014, requires an employer to obtain from a
driver required to have a commercial driver's license or commercial
endorsement a copy of the driver's medical certification before
allowing the driver to operate a commercial motor vehicle. Existing
law requires the employer to retain the certification as part of a
driver qualification file.
   This bill would change the provision with an operative date of
January 1, 2014, to  instead become operative on  January
30, 2014.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 21080 of the   Public
Resources Code   is amended to read: 
   21080.  (a) Except as otherwise provided in this division, this
division shall apply to discretionary projects proposed to be carried
out or approved by public agencies, including, but not limited to,
the enactment and amendment of zoning ordinances, the issuance of
zoning variances, the issuance of conditional use permits, and the
approval of tentative subdivision maps unless the project is exempt
from this division.
   (b) This division does not apply to any of the following
activities:
   (1) Ministerial projects proposed to be carried out or approved by
public agencies.
   (2) Emergency repairs to public service facilities necessary to
maintain service.
   (3) Projects undertaken, carried out, or approved by a public
agency to maintain, repair, restore, demolish, or replace property or
facilities damaged or destroyed as a result of a disaster in a
disaster-stricken area in which a state of emergency has been
proclaimed by the Governor pursuant to Chapter 7 (commencing with
Section 8550) of Division 1 of Title 2 of the Government Code.
   (4) Specific actions necessary to prevent or mitigate an
emergency.
   (5) Projects which a public agency rejects or disapproves.
   (6) Actions undertaken by a public agency relating to any thermal
powerplant site or facility, including the expenditure, obligation,
or encumbrance of funds by a public agency for planning, engineering,
or design purposes, or for the conditional sale or purchase of
equipment, fuel, water (except groundwater), steam, or power for a
thermal powerplant, if the powerplant site and related facility will
be the subject of an environmental impact report, negative
declaration, or other document, prepared pursuant to a regulatory
program certified pursuant to Section 21080.5, which will be prepared
by the State Energy Resources Conservation and Development
Commission, by the Public Utilities Commission, or by the city or
county in which the powerplant and related facility would be located
if the environmental impact report, negative declaration, or document
includes the environmental impact, if any, of the action described
in this paragraph.
   (7) Activities or approvals necessary to the bidding for, hosting
or staging of, and funding or carrying out of, an Olympic games under
the authority of the International Olympic Committee, except for the
construction of facilities necessary for the Olympic games.
   (8) The establishment, modification, structuring, restructuring,
or approval of rates, tolls, fares, or other charges by public
agencies which the public agency finds are for the purpose of (A)
meeting operating expenses, including employee wage rates and fringe
benefits, (B) purchasing or leasing supplies, equipment, or
materials, (C) meeting financial reserve needs and requirements, (D)
obtaining funds for capital projects necessary to maintain service
within existing service areas, or (E) obtaining funds necessary to
maintain those intracity transfers as are authorized by city charter.
The public agency shall incorporate written findings in the record
of any proceeding in which an exemption under this paragraph is
claimed setting forth with specificity the basis for the claim of
exemption.
   (9) All classes of projects designated pursuant to Section 21084.
   (10) A project for the institution or increase of passenger or
commuter services on rail or highway rights-of-way already in use,
including modernization of existing stations and parking facilities.
 For purposes of this paragraph, "highway" shall have the same
meaning as defined in Section 360 of the Vehicle Code. 
   (11) A project for the institution or increase of passenger or
commuter service on high-occupancy vehicle lanes already in use,
including the modernization of existing stations and parking
facilities.
   (12) Facility extensions not to exceed four miles in length which
are required for the transfer of passengers from or to exclusive
public mass transit guideway or busway public transit services.
   (13) A project for the development of a regional transportation
improvement program, the state transportation improvement program, or
a congestion management program prepared pursuant to Section 65089
of the Government Code.
   (14) Any project or portion thereof located in another state which
will be subject to environmental impact review pursuant to the
National Environmental Policy Act of 1969 (42 U.S.C. Sec. 4321 et
seq.) or similar state laws of that state. Any emissions or
discharges that would have a significant effect on the environment in
this state are subject to this division.
   (15) Projects undertaken by a local agency to implement a rule or
regulation imposed by a state agency, board, or commission under a
certified regulatory program pursuant to Section 21080.5. Any
site-specific effect of the project which was not analyzed as a
significant effect on the environment in the plan or other written
documentation required by Section 21080.5 is subject to this
division.
   (c) If a lead agency determines that a proposed project, not
otherwise exempt from this division, would not have a significant
effect on the environment, the lead agency shall adopt a negative
declaration to that effect. The negative declaration shall be
prepared for the proposed project in either of the following
circumstances:
   (1) There is no substantial evidence, in light of the whole record
before the lead agency, that the project may have a significant
effect on the environment.
   (2) An initial study identifies potentially significant effects on
the environment, but (A) revisions in the project plans or proposals
made by, or agreed to by, the applicant before the proposed negative
declaration and initial study are released for public review would
avoid the effects or mitigate the effects to a point where clearly no
significant effect on the environment would occur, and (B) there is
no substantial evidence, in light of the whole record before the lead
agency, that the project, as revised, may have a significant effect
on the environment.
   (d) If there is substantial evidence, in light of the whole record
before the lead agency, that the project may have a significant
effect on the environment, an environmental impact report shall be
prepared.
   (e) (1) For the purposes of this section and this division,
substantial evidence includes fact, a reasonable assumption
predicated upon fact, or expert opinion supported by fact.
   (2) Substantial evidence is not argument, speculation,
unsubstantiated opinion or narrative, evidence that is clearly
inaccurate or erroneous, or evidence of social or economic impacts
that do not contribute to, or are not caused by, physical impacts on
the environment.
   (f) As a result of the public review process for a mitigated
negative declaration, including administrative decisions and public
hearings, the lead agency may conclude that certain mitigation
measures identified pursuant to paragraph (2) of subdivision (c) are
infeasible or otherwise undesirable. In those circumstances, the lead
agency, prior to approving the project, may delete those mitigation
measures and substitute for them other mitigation measures that the
lead agency finds, after holding a public hearing on the matter, are
equivalent or more effective in mitigating significant effects on the
environment to a less than significant level and that do not cause
any potentially significant effect on the environment. If those new
mitigation measures are made conditions of project approval or are
otherwise made part of the project approval, the deletion of the
former measures and the substitution of the new mitigation measures
shall not constitute an action or circumstance requiring
recirculation of the mitigated negative declaration.
   (g) Nothing in this section shall preclude a project applicant or
any other person from challenging, in an administrative or judicial
proceeding, the legality of a condition of project approval imposed
by the lead agency. If, however, any condition of project approval
set aside by either an administrative body or court was necessary to
avoid or lessen the likelihood of the occurrence of a significant
effect on the environment, the lead agency's approval of the negative
declaration and project shall be invalid and a new environmental
review process shall be conducted before the project can be
reapproved, unless the lead agency substitutes a new condition that
the lead agency finds, after holding a public hearing on the matter,
is equivalent to, or more effective in, lessening or avoiding
significant effects on the environment and that does not cause any
potentially significant effect on the environment.
   SECTION 1.   SEC. 2.   Section 6480.1 of
the Revenue and Taxation Code is amended to read:
   6480.1.  (a) At any time that motor vehicle fuel tax or diesel
fuel tax is imposed or would be imposed, but for the dyed diesel fuel
exemption in paragraph (1) of subdivision (a) of Section 60100, or
the train operator exemption in paragraph (7) of subdivision (a) of
Section 60100 or paragraph (11) of subdivision (a) of Section 7401,
or, pursuant to subdivision (f) of Section 6480, would be deemed to
be imposed, on any removal, entry, or sale in this state of motor
vehicle fuel, aircraft jet fuel, or diesel fuel, the supplier shall
collect prepayment of retail sales tax from the person to whom the
motor vehicle fuel, aircraft jet fuel, or diesel fuel is sold.
However, if no sale occurs at the time of imposition of motor vehicle
fuel tax or diesel fuel tax, the supplier shall prepay the retail
sales tax on that motor vehicle fuel, aircraft jet fuel, or diesel
fuel. The prepayment required to be collected by the supplier
constitutes a debt owed by the supplier to this state until paid to
the board, until satisfactory proof has been submitted to prove that
the retailer of the fuel has paid the retail sales tax to the board,
or until a supplier or wholesaler who has consumed the fuel has paid
the use tax to the board. Each supplier shall report and pay the
prepayment amounts to the board, in a form as prescribed by the
board, in the period in which the fuel is sold. On each subsequent
sale of that fuel, each seller, other than the retailer, shall
collect from his or her purchaser a prepayment computed using the
rate applicable at the time of sale. Each supplier shall provide his
or her purchaser with an invoice for, or other evidence of, the
collection of the prepayment amounts which shall be separately stated
thereon.
   (b) (1) A wholesaler shall collect prepayment of the retail sales
tax from the person to whom the motor vehicle fuel, aircraft jet
fuel, or diesel fuel is sold. Each wholesaler shall provide his or
her purchaser with an invoice for or other evidence of the collection
of the prepayment amounts, which shall be separately stated thereon.

   (2) Each wholesaler shall report to the board, in a form as
prescribed by the board and for the period in which the motor vehicle
fuel, aircraft jet fuel, or diesel fuel was sold, all of the
following:
   (A) The number of gallons of fuel sold and the amount of sales tax
prepayments collected by the wholesaler.
   (B) The number of tax-paid gallons purchased and the amount of
sales tax prepayments made by the wholesaler.
   (C) In the event that the amount of sales tax prepayments
collected by the wholesaler is greater than the amount of sales tax
prepayments made by the wholesaler, then the excess constitutes a
debt owed by the wholesaler to the state until paid to the board, or
until satisfactory proof has been submitted that the retailer of the
fuel has paid the tax to the board.
   (c) A supplier or wholesaler who pays the prepayment and issues a
resale certificate to the seller, but subsequently consumes the motor
vehicle fuel, aircraft jet fuel, or diesel fuel, shall be entitled
to a credit against his or her sales and use taxes due and payable
for the period in which the prepayment was made, provided that he or
she reports and pays the use tax to the board on the consumption of
that fuel.
   (d) The amount of a prepayment paid by the retailer or a supplier
or wholesaler who has consumed the motor vehicle fuel, aircraft jet
fuel, or diesel fuel to the seller from whom he or she acquired the
fuel shall constitute a credit against his or her sales and use taxes
due and payable for the period in which the sale was made. Failure
of the supplier or wholesaler to report prepayments or the supplier's
or wholesaler's failure to comply with any other duty under this
article shall not constitute grounds for denial of the credit to the
retailer, supplier, or wholesaler, either on a temporary or permanent
basis or otherwise. To be entitled to the credit, the retailer,
supplier, or wholesaler shall retain for inspection by the board any
receipts, invoices, or other documents showing the amount of sales
tax prepaid to his or her supplier, together with the evidence of
payment.
   (e) The rate of the prepayment required to be collected during the
period from July 1, 1986, through March 31, 1987, shall be four
cents ($0.04) per gallon of motor vehicle fuel distributed or
transferred.
   (f) The rate of prepayment required to be collected for motor
vehicle fuel, aircraft jet fuel, and diesel fuel as established by
the board in effect on January 1, 2013, shall remain in effect
through June 30, 2013.
   (g) On July 1 of each succeeding year, the prepayment rate per
gallon for motor vehicle fuel, rounded to the nearest one-half of one
cent ($0.005), of the required prepayment shall be established by
the board based upon 80 percent of the combined state and local sales
tax rate established by Sections 6051, 6051.2, 6051.3, 6051.5, 7202,
and 7203.1, and Section 35 of Article XIII of the California
Constitution on the arithmetic average selling price (excluding sales
tax) as reported by an industry publication of all grades of
gasoline sold through a self-service gasoline station. The board
shall make its determination of the rate no later than March 1 of the
same year as the effective date of the new rate. Immediately upon
making its determination and setting of the rate, the board shall
each year, no later than May 1, notify every supplier, wholesaler,
and retailer of motor vehicle fuel. In the event the price of fuel
decreases or increases or an exemption from sales tax for sales of
fuel is enacted, and the established rate results in or could result
in prepayments which consistently exceed or are significantly lower
than the retailers' sales tax liability, the board may readjust the
rate.
   (h) On July 1 of each succeeding year, the prepayment rate per
gallon for aircraft jet fuel, rounded to the nearest one-half of one
cent ($0.005), shall be established by the board based upon 80
percent of the combined state and local sales tax rate established by
Sections 6051, 6051.2, 6051.3, 6051.5, 7202, and 7203.1, and Section
35 of Article XIII of the California Constitution on the arithmetic
average selling price (excluding sales and state excise taxes) as
determined by the board. The board shall make its determination of
the rate no later than March 1 of the same year as the effective date
of the new rate. The rate of the prepayment required to be collected
for aircraft jet fuel shall be equal to 80 percent of the arithmetic
average selling price of aircraft jet fuel as specified by industry
publications. Immediately upon making its determination and setting
of the rate, the board shall each year, no later than May 1, notify
every supplier, wholesaler, and retailer of aircraft jet fuel. In the
event the price of aircraft jet fuel decreases or increases, and the
established rate results in prepayments that consistently exceed or
are significantly lower than the retailers' sales tax liability, the
board may readjust the rate.
   (i) On July 1 of each succeeding year, the prepayment rate per
gallon for diesel fuel, rounded to the nearest one-half of one cent
($0.005), shall be established by the board based upon 80 percent of
the combined state and local sales tax rate established by Sections
6051, 6051.2, 6051.3, 6051.5, 6051.8, 7202, and 7203.1, and Section
35 of Article XIII of the California Constitution on the arithmetic
average selling price (excluding sales and state excise taxes) as
determined by the board. The board shall make its determination of
the rate no later than March 1 of the same year as the effective date
of the new rate. The rate of the prepayment required to be collected
for diesel fuel shall be equal to 80 percent of the arithmetic
average selling price of diesel fuel as specified by industry
publications. Immediately upon making its determination and setting
of the rate, the board shall each year, no later than May 1, notify
every supplier, wholesaler, and retailer of diesel fuel. In the event
the rate of sales tax imposed on sales of diesel fuel increases or
decreases or the price of diesel fuel decreases or increases, and the
established rate results in or could result in prepayments that
consistently exceed or are significantly lower than the retailers'
sales tax liability, the board may readjust the rate.
   (j) (1) Notwithstanding any other provision of this section, motor
vehicle fuel sold by a supplier or wholesaler to a qualified
purchaser who, pursuant to a contract with the State of California or
its instrumentalities, resells that fuel to the State of California
or its instrumentalities shall be exempt from the prepayment
requirements.
   (2) A qualified purchaser who acquires motor vehicle fuel for
subsequent resale to the State of California or its instrumentalities
pursuant to this subdivision shall furnish to the supplier or
wholesaler from whom the fuel is acquired an exemption certificate,
completed in accordance with any instructions or regulations as the
board may prescribe. The supplier or wholesaler shall retain the
certificate in his or her records in support of the exemption. To
qualify for the prepayment exemption, both of the following
conditions shall apply:
   (A) The qualified purchaser does not take possession of the fuel
at any time.
   (B) The fuel is delivered into storage tanks owned or leased by
the State of California or its instrumentalities via facilities of
the supplier or wholesaler, or by common or contract carriers under
contract with the supplier or wholesaler.
   (3) For purposes of this subdivision, "qualified purchaser" means
a wholesaler who does not have or maintain a storage facility or
facilities for the purpose of selling motor vehicle fuel.
   SEC. 3.    Section 73.2 is added to the  
Streets and Highways Code   , to read:  
   73.2.  (a) Upon a determination by the commission that it is in
the best interest of the state to do so, the commission may, upon
terms and conditions approved by it, relinquish to the City of
Hollister the portion of Route 25 that is located between Sunnyslope
Road and San Felipe Road within the city limits of that city prior to
the relocation of that portion of Route 25 through adoption of the
proposed new easterly bypass alignment of Route 25, if the city
agrees to accept the relinquishment.
   (b) The terms and conditions imposed pursuant to subdivision (a)
shall include a requirement for the City of Hollister to maintain
within its jurisdiction signs directing motorists to the continuation
of Route 25 until such time as the new easterly bypass alignment is
adopted and opens to traffic.
   (c) A relinquishment under this section shall become effective
immediately following the recording by the county recorder of the
relinquishment resolution containing the commission's approval of the
terms and conditions of the relinquishment.
   (d) On and after the effective date of the relinquishment, both of
the following shall apply:
   (1) The relinquished portion of Route 25 shall cease to be a state
highway.
   (2) The relinquished portion of Route 25 may not be considered for
future adoption under Section 81.
   (e) The relinquishment shall be done at no cost to the state
except upon a finding of need by the commission.
   (f) Upon a determination by the commission that it is in the best
interest of the state to do so, the commission shall, upon terms and
conditions approved by it, adopt into the state highway system the
proposed easterly bypass alignment for Route 25 that is located
between Sunnyside Road and San Felipe Road in the City of Hollister.
The adoption may occur at any time after the effective date of the
relinquishment pursuant to subdivision (c). 
   SEC. 4.    Section 368 of the   Streets and
Highways Code   is amended to read: 
   368.   (a)    Route 68 is from: 
   (a) 
    (1)  Asilomar State Beach to Route 1. 
   (b) 
    (2)  Monterey to Route 101 in Salinas. 
   (b) (1) Upon a determination by the commission that it is in the
best interests of the state to do so, the commission may, upon terms
and conditions approved by it, relinquish to the City of Pacific
Grove or the County of Monterey the portion of Route 68 described in
paragraph (1) of subdivision (a) located within the jurisdiction of
the city or the unincorporated area of the county, respectively, if
the city or county agrees to accept it.  
   (2) A relinquishment under this subdivision shall become effective
immediately following the county recorder's recordation of the
relinquishment resolution concerning the commission's approval of the
terms and conditions of the relinquishment.  
   (3) On and after the effective date of the relinquishment, both of
the following shall occur:  
   (A) The portion of Route 68 relinquished under this subdivision
shall cease to be a state highway.  
   (B) The portion of Route 68 relinquished under this subdivision
shall be ineligible for future adoption under Section 81.  
   (4) The city or county shall ensure the continuity of traffic flow
on the relinquished former portion of Route 68 within its
jurisdiction, including, but not limited to, any traffic signal
progression.  
   (5) The city or county shall maintain signs on the relinquished
former portion of Route 68 within its jurisdiction directing
motorists to the continuation of Route 68.  
   (6) The relinquishment shall be done at no cost to the state
except upon a finding of need by the commission. 
   SEC. 5.    Section 374 of the   Streets and
Highways Code  is amended to read: 
   374.  (a) Route 74 is from:
   (1) Route 5 near San Juan Capistrano to Route 15 near Lake
Elsinore.
   (2) Route 15 near Lake Elsinore to Route 215 near Perris.
   (3) Route 215 near Perris to the southern city limit of Palm
Desert.
   (4) Highway 111 in Palm Desert to Route 10 near Thousand Palms.
   (b) The relinquished former portions of Route 74 within the Cities
of Palm Desert and Perris are not state highways and are not
eligible for adoption under Section 81. For the  relinquished
 former portions of Route 74  relinquished under this
subdivision  , the Cities of Palm Desert and Perris shall
maintain within their respective jurisdictions signs directing
motorists to the continuation of Route 74 and shall ensure the
continuity of traffic flow on the relinquished portions of Route 74,
including any traffic signal progression.
   (c) (1) The commission may relinquish to the City of Lake Elsinore
the portion of Route 74 located within the city limits of that city,
upon terms and conditions the commission finds to be in the best
interests of the state.
   (2) Any relinquishment agreement shall require that the City of
Lake Elsinore administer the operation and maintenance of the highway
in a manner consistent with professional traffic engineering
standards.
   (3) Any relinquishment agreement shall require the City of Lake
Elsinore to ensure that appropriate traffic studies or analyses will
be performed to substantiate any decisions affecting the highway.
   (4) Any relinquishment agreement shall also require the City of
Lake Elsinore to provide for public notice and the consideration of
public input on the proximate effects of any proposed decision on
traffic flow, residences, or businesses, other than a decision on
routine maintenance.
   (5) Notwithstanding any of its other terms, any relinquishment
agreement shall require the City of Lake Elsinore to indemnify and
hold the department harmless from any liability for any claims made
or damages suffered by any person, including a public entity, as a
result of any decision made or action taken by the City of Lake
Elsinore, its officers, employees, contractors, or agents, with
respect to the design, maintenance, construction, or operation of
that portion of Route 74 that is to be relinquished to the city.
   (6) A relinquishment under this subdivision shall become effective
immediately after the county recorder records the relinquishment
resolution that contains the commission's approval of the terms and
conditions of the relinquishment.
   (7) On and after the effective date of the relinquishment, both of
the following shall occur:
   (A) The portion of Route 74 relinquished  under this
subdivision  shall cease to be a state highway.
   (B) The portion of Route 74 relinquished  under this
subdivision  may not be considered for future adoption under
Section 81.
   (8) The City of Lake Elsinore shall ensure the continuity of
traffic flow on the  relinquished  portion of Route
74  relinquished under this subdivision  , including any
traffic signal progression.
   (9) For  relinquished  portions of Route 74 
relinquished under this subdivision  , the City of Lake Elsinore
shall maintain signs directing motorists to the continuation of
Route 74. 
   (d) (1) Notwithstanding subdivision (a), the commission may
relinquish to the City of Hemet the portion of State Highway Route 74
that is located within the city limits or the sphere of influence of
the City of Hemet, upon terms and conditions the commission finds to
be in the best interests of the state.  

        (2) A relinquishment under this subdivision shall become
effective immediately following the recordation by the county
recorder of the relinquishment resolution containing the commission's
approval of the terms and conditions of the relinquishment. 

   (3) On and after the effective date of the relinquishment, both of
the following shall occur: 
   (A) The portion of State Highway Route 74 relinquished under this
subdivision shall cease to be a state highway.  
   (B) The portion of State Highway Route 74 relinquished under this
subdivision may not be considered for future adoption under Section
81.  
   (4) The City of Hemet shall ensure the continuity of traffic flow
on the portion of State Highway Route 74 relinquished under this
subdivision, including any traffic signal progression.  
   (5) For portions of State Highway Route 74 relinquished under this
subdivision, the City of Hemet shall maintain signs directing
motorists to the continuation of State Highway Route 74.  
   (6) The relinquishment shall be done at no cost to the state
except upon a finding of need by the commission. 
   SEC. 6.    Section 386 of the   Streets and
Highways Code   is amended to read: 
   386.   (a)    Route 86 is from: 
   (a) 
    (1)  Route 111 to Route 8 near El Centro. 
   (b) 
    (2)  Route 8 near El Centro to Route 10 in Indio via the
vicinity of Brawley. 
   (b) Upon a determination by the commission that it is in the best
interests of the state to do so, the commission may, upon terms and
conditions approved by it, relinquish the following portions of Route
86, if the department and the applicable local agency enter into an
agreement providing for that relinquishment, as follows:  
   (1) To the County of Imperial, the portion of Route 86 from the
beginning of the route at the junction of Route 111 to Duff Road.
 
   (2) To the City of El Centro, the portion of Route 86 from Duff
Road to Treshill Road.  
   (3) To the City of Imperial, the portion of Route 86 from Treshill
Road to Ralph Road.  
   (4) To the County of Imperial, the portion of Route 86 from Ralph
Road to 0.3 mile south of Legion Road.  
   (5) To the City of Brawley, the portion of Route 86 from 0.3 miles
south of Legion Road to 0.5 mile south of Fredericks Road. 

   (c) The following conditions shall apply upon relinquishment:
 
   (1) The relinquishment shall become effective on the date
following the county recorder's recordation of the relinquishment
resolution containing the commission's approval of the terms and
conditions of the relinquishment.  
   (2) On and after the effective date of the relinquishment, the
relinquished portions of Route 86 shall cease to be a state highway.
 
   (3) The portions of Route 86 relinquished under this subdivision
shall be ineligible for future adoption under Section 81.  
   (4) The Cities of Brawley, El Centro, and Imperial and the County
of Imperial shall ensure the continuity of traffic flow on the
relinquished portions of Route 86, including any traffic signal
progression. 
   (5) For the portions of Route 86 that are relinquished under this
subdivision, the Cities of Brawley, El Centro, and Imperial, and the
County of Imperial shall install and maintain, within their
respective jurisdictions, the city or county signs directing
motorists to the continuation of Route 86 to the extent deemed
necessary by the department.  
   (d) Following the relinquishments authorized in subdivision (b),
the portion of Route 86 from 0.5 mile south of Fredricks Road to the
north junction of Route 78 shall be redesignated as a part of Route
78.  
   (e) The relinquishments authorized in subdivision (b) shall be
done at no cost to the state except upon a finding of need by the
commission. 
   SEC. 7.    Section 890.4 of the   Streets
and Highways Code   is amended to read: 
   890.4.  As used in this article, "bikeway" means all facilities
that provide primarily for bicycle travel. For purposes of this
article, bikeways shall be categorized as follows:
   (a) Class I bikeways,  such   also known
 as  a  "bike  path,"  
paths" or "shared-use paths,"  which provide a completely
separated right-of-way designated for the exclusive use of bicycles
and pedestrians with crossflows by motorists minimized.
   (b) Class II bikeways,  such   also known
 as  a  "bike  lane,"  
lanes,   "  which provide a restricted right-of-way
designated for the exclusive or semiexclusive use of bicycles with
through travel by motor vehicles or pedestrians prohibited, but with
vehicle parking and crossflows by pedestrians and motorists
permitted.
   (c) Class III bikeways,  such   also known
 as  an  onstreet or offstreet "bike 
route,"   routes,   "  which provide a
right-of-way designated by signs or permanent markings and shared
with pedestrians  or   and  motorists.
   SEC. 8.    Section 378 of the   Vehicle Code
 is repealed.  
   378.  A "logging dolly" is a vehicle designed for carrying logs,
having one or more axles which axles, if there be more than one, are
not more than 54 inches apart, and used in connection with a motor
truck solely for the purpose of transporting logs and securely
connected with the towing vehicle both by a reach and by the load.

   SEC. 9.    Section 379 of the   Vehicle Code
  is repealed.  
   379.  A "logging vehicle" is a vehicle used exclusively in the
conduct of logging operations and not designed for the transportation
of persons or property on a highway. 
   SEC. 10.    Section 385.2 is added to the  
Vehicle Code   , to read:  
   385.2.  A "logging dolly" is a vehicle designed for carrying logs,
having one or more axles that, if there are more than one, are not
more than 54 inches apart, and used in connection with a motor truck
solely for the purpose of transporting logs and securely connected
with the towing vehicle both by a reach and by the load. 
   SEC. 11.    Section 385.3 is added to the  
Vehicle Code   , to read:  
   385.3.  A "logging vehicle" is a vehicle used exclusively in the
conduct of logging operations and not designed for the transportation
of persons or property on a highway. 
   SEC. 12.    Section 5022 of the   Vehicle
Code   is amended to read: 
   5022.  (a) Until December 31, 1984,  any   a
 person described in Section 5101 may also apply for a set of
commemorative 1984 Olympic reflectorized license plates and the
department shall issue those special license plates in lieu of the
regular license plates. No commemorative 1984 Olympic reflectorized
license plates shall be issued pursuant to an application therefor
which is submitted on or after January 1, 1985, but the holder of
those plates may thereafter renew or retain them,  obtain
duplicate replacements for them, or transfer them to another
vehicle, subject to this section.
   (b) The commemorative 1984 Olympic reflectorized license plates
shall be of a distinctive design and shall be available in a special
series of letters or numbers, or both, as determined by the
department after consultation with the Los Angeles Olympic Organizing
Committee.
   (c) In addition to the regular fees for an original registration
or renewal of registration,  the following   a
 special  fees   fee of twelve dollars
($12)  shall be  paid:   paid for the
transfer of the special plates to another vehicle.  
   (1) One hundred dollars ($100) for the initial issuance of the
special plates.  
   (2) Twelve dollars ($12) for the transfer of the special plates to
another vehicle.  
   (3) Thirty dollars ($30) for duplicate, replacement commemorative
1984 Olympic reflectorized license plates of the same number in the
series. 
   (d) When payment of renewal fees is not required as specified in
Section 4000, or when the person determines to retain the plates upon
sale, trade, or other release of the vehicle upon which the special
plates have been displayed, the person shall notify the department
and the person may retain the special plates.
   (e) Until December 31, 1989, duplicate, replacement plates shall
be identical commemorative 1984 Olympic reflectorized license plates
of the same letter, number, and design as originally issued. However,
duplicate, replacement plates of the commemorative 1984 Olympic
reflectorized license plate series shall not be available on or after
January 1, 1990. Thereafter, unless otherwise provided by 
law   this code  , regular series plates shall be
issued for the  regular  fee provided in Section
9265 whenever  duplicates   substitute or
duplicate plates  are  permitted under this code
  requested  .
   (f) All revenue derived from the additional special fees provided
in this section shall be deposited in the California Environmental
License Plate Fund pursuant to Section 21191 of the Public Resources
Code.
   SEC. 13.    Section 5023 of the   Vehicle
Code   is amended to read: 
   5023.  (a)  A   (1)   
Until December 31, 2013, a  person described in Section 5101 may
also apply for a set of commemorative Olympic reflectorized license
plates and the department shall issue those special license plates in
lieu of regular license plates. The commemorative Olympic
reflectorized license plates shall be of a distinctive design and
shall be available in a special series of letters or numbers, or
both, as determined by the department after consultation with the
United States Olympic Committee. The department may issue the
commemorative Olympic reflectorized license plates as environmental
license plates, as defined in Section 5103, in a combination of
numbers or letters, or both, as requested by the owner or lessee of
the vehicle. 
   (2) On or after January 1, 2014, original, substitute, or
duplicate Olympic license plates, including those issued as
environmental license plates, shall not be available. However, the
holder of Olympic license plates may thereafter renew or retain those
plates, or transfer them to another vehicle, subject to this
section. Unless otherwise provided by this code, regular series
plates shall be issued for the fee provided in Section 9265 whenever
substitute or duplicate plates are requested.  
   (3) On or after January 1, 2014, the holder of Olympic license
plates issued as environmental license plates, as defined in Section
5103, may apply for other special license plates using the exact
combination of numbers or letters, or both, if authorized by this
code, whenever the holder requests substitute or duplicate plates.

   (b) In addition to the regular fees for an original registration
or renewal of registration, the following special fees shall be paid:

   (1) Fifty dollars ($50), inclusive of any administrative fees, for
the initial issuance of the special plates.  
   (2) 
    (1)  Fifteen dollars ($15) for the transfer of the
special plates to another vehicle. 
   (3) Thirty-five dollars ($35) for duplicate, replacement
commemorative Olympic reflectorized license plates of the same number
in the series.  
   (4) 
    (2)  Thirty dollars ($30) for the annual renewal of the
special plates.
   (c) When payment of renewal fees is not required as specified in
Section 4000, or when the person determines to retain the plates upon
sale, trade, or other release of the vehicle upon which the special
plates have been displayed, the person shall notify the department
and the person may retain the special plates.
   (d) All revenue derived from the additional special fees provided
in this section, less costs incurred by the department pursuant to
this section, shall be deposited in the  California Olympic
Training Account in the  General Fund  established
pursuant to Section 7592 of the Government Code  .
   SEC. 14.    Section 5101.7 of the   Vehicle
Code   is amended to read: 
   5101.7.  (a) Until December 31, 1984, any person described in
Section 5101 may also apply for a set of commemorative 1984 Olympic
reflectorized license plates and the department shall issue those
special license plates in lieu of the regular license plates. No
commemorative 1984 Olympic reflectorized license plates shall be
issued pursuant to an application therefor which is submitted on or
after January 1, 1985, but the holder of those plates may thereafter
renew or retain them,  obtain duplicate replacements for
them,  or transfer them to another vehicle, subject to this
article.
   (b) Except as provided in this section, the issue, renewal,
cancellation, retention, and transfer of the commemorative 1984
Olympic reflectorized license plates shall be subject to the
provisions of this article as if they were environmental license
plates. Until December 31, 1989, duplicate, replacement plates shall
be identical commemorative 1984 Olympic reflectorized license plates
of the same letter, number, and design as originally issued. On and
after January 1, 1990, duplicate or replacement plates shall be
provided pursuant to this article. 
   (c) Notwithstanding subdivision (a) of Section 5106, in addition
to the regular registration fee, the applicant shall be charged a fee
of one hundred dollars ($100) for a set of commemorative 1984
Olympic reflectorized license plates described in subdivision (d).
 
   (d) 
    (c)  Notwithstanding the color, design, and number of
digit requirements of Section 5102, the department shall design the
commemorative 1984 Olympic reflectorized license plates, which shall
be reflectorized license plates issued pursuant to Section 4850. The
commemorative 1984 Olympic reflectorized license plates shall be of a
distinctive design, as determined by the department after
consultation with the Los Angeles Olympic Organizing 
Committee, and shall be available, upon request in the application,
in an indicated combination of letters or numbers, or both, and as
requested as a registration number   Committee  .
   SEC. 15.    Section 5106 of the   Vehicle
Code   is amended to read: 
   5106.  (a)  Except as provided in Section 5101.7, in
  In  addition to the regular registration fee or a
permanent trailer identification fee, the applicant shall be charged
a fee of forty-eight dollars ($48) for issuance of environmental
license plates.
   (b) In addition to the regular renewal fee or a permanent trailer
identification fee for the vehicle to which the plates are assigned,
the applicant for a renewal of environmental license plates shall be
charged an additional fee of thirty-eight dollars ($38). An applicant
with a permanent trailer identification plate shall be charged an
annual fee of thirty-eight dollars ($38) for renewal of environmental
license plates. However, applicants for renewal of prisoner-of-war
special license plates issued under Section 5101.5 shall not be
charged the additional renewal fee under this subdivision.
   (c) When payment of renewal fees is not required as specified in
Section 4000, the holder of any environmental license plate may
retain the plate upon payment of an annual fee of thirty-eight
dollars ($38). The fee shall be due at the expiration of the
registration year of the vehicle to which the environmental license
plate was last assigned. However, applicants for retention of
prisoner-of-war special license plates issued under Section 5101.5
shall not be charged the additional retention fee under this
subdivision.
   (d) Notwithstanding Section 9265, the applicant for a duplicate
environmental license plate  or a duplicate, replacement
commemorative 1984 Olympic reflectorized license plate 
shall be charged a fee of thirty-eight dollars ($38).
   SEC. 2.   SEC. 16.   Section 14606 of
the Vehicle Code, as added by Section 7 of Chapter 670 of the
Statutes of 2012, is amended to read:
   14606.  (a) A person shall not employ, hire, knowingly permit, or
authorize any person to drive a motor vehicle owned by him or her or
under his or her control upon the highways unless that person is
licensed for the appropriate class of vehicle to be driven.
   (b) Whenever a person fails to qualify, on reexamination, to
operate a commercial motor vehicle, an employer shall report that
failure to the department within 10 days.
   (c) An employer shall obtain from a driver required to have a
commercial driver's license or commercial endorsement a copy of the
driver's medical certification before allowing the driver to operate
a commercial motor vehicle. The employer shall retain the
certification as part of a driver qualification file.
   (d) This section shall become operative on January 30, 2014.