Amended in Assembly April 7, 2016

California Legislature—2015–16 Regular Session

Assembly Bill No. 1574

Introduced by Assembly Member Chiu

(Principal coauthor: Assembly Member Ting)

(Principal coauthor: Senator Hill)

January 4, 2016

An act to begin insert amend Sections 1042 and 5374.5 of, and to end insert add Sections 1042.2 and 5374.4 begin delete to end delete begin insert to, end insert the Public Utilities Code, and to add Section 1686 to the Vehicle Code, relating to vehicles.

LEGISLATIVE COUNSEL’S DIGEST

AB 1574, as amended, Chiu. Vehicles of charter-party carriers of passengers and passenger stage corporations.

Existing law provides for the Department of Motor Vehicles to register vehicles used on the public streets and highways and to verify insurance coverage. Existing law provides for the Public Utilities Commission to regulate certain classes of passenger carriers, including charter-party carriers of passengers and passenger stage corporations, and to issue certificates or permits in that regard. Existing law requires the Department of the California Highway Patrol to regulate the safe operation of certain classes of vehicles, including buses and modified limousines. Existing law requires charter-party carriers of passengers and passenger stage corporations to report the vehicles they use in their operations to the commission. A violation of provisions governing charter-party carriers of passengers and passenger stage corporations is a crime.

This bill begin insert would require the Department of Motor Vehicles, in issuing or renewing a commercial vehicle registration, to require the owner of a bus, limousine, or modified limousine used by a charter-party carrier of passengers or a passenger stage corporation to disclose the name of the carrier or corporation that will be using the vehicle in its operations. The bill would require the Public Utilities Commission, in collaboration with the Department of Motor Vehicles, to annually verify that the buses, limousines, and modified limousines used by a carrier or corporation have been reported to the commission by the carrier or corporation, would require the carriers and corporations to provide the commission with vehicle registration information for each vehicle, and would prohibit the commission from issuing or renewing a noncompliant carrier’s or corporation’s permit, certificate, or authority. The bill end insert would require the Department of Motor Vehicles to notify the Public Utilities Commission when a charter-party carrier of passengers or a passenger stage corporation first registers a bus, limousine, or modified limousine with the department, and to provide information to the commission that will allow the commission to identify the vehicle. The bill would require the commission, with respect to those newly registered buses, limousines, or modified limousines, to ensure that the vehicles meet all statutory and regulatory requirements for safe operation. The bill, upon the commission becoming aware of a bus, limousine, or modified limousine of a charter-party carrier of passengers or a passenger stage corporation that has not been reported to the commission by the carrier or corporation, would require the commission to immediately take steps to require the carrier or corporation to update its reporting of vehicles to the commission and to request the Department of the California Highway Patrol to conduct a safety inspection of the vehicle. The bill would prohibit use of such a bus, limousine, or modified limousine to transport passengers in the absence of securing a satisfactory rating from the Department of the California Highway Patrol, and would authorize a law enforcement agency to impound a bus, limousine, or modified limousine operated in violation of this provision. Because a violation of certain provisions of the bill would be a crime, this bill would impose a state-mandated local program.

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:

begin insert

begin insert SECTION 1. end insert   

end insert

begin insert Section 1042 of the end insert begin insert Public Utilities Code end insert begin insert is
amended to read: end insert

1042.  

(a) Every passenger stage corporation shall furnish the
commission annually with a list, prepared under oath, of all
vehicles used in transportation for compensation during the
preceding begin delete year. end delete begin insert year, including the vehicle registration information
for each vehicle. end insert This list shall include and identify each modified
limousine and the terminal location of each modified limousine.
The commission shall furnish a copy of this list identifying each
modified limousine and its terminal location to the Department of
the California Highway Patrol. The commission shall also furnish
a copy of this list to the corporation’s insurer, if the corporation’s
accident liability protection is provided by a policy or policies of
insurance.

(b) The commission shall not issue or continue in effect any
permit, certificate, or authority of a passenger stage corporation
that has not submitted begin insert the list required by subdivision (a) or the end insert
fees required for inspection pursuant to Section 34500.4 of the
Vehicle Code and any associated penalties, if applicable.

(c) If the passenger stage corporation’s insurer informs the
commission that the corporation has failed to obtain insurance
coverage for any vehicle reported on the list, the commission may,
in addition to any other applicable penalty provided in this part,
for a first occurrence, suspend the corporation’s certificate or
impose a fine, or both, and for a second or subsequent occurrence
may suspend or revoke the certificate or impose a fine, or both.

(d) As used in this section and Section 1042.1, “modified
limousine” means any vehicle that has been modified, altered, or
extended in a manner that increases the overall wheelbase of the
vehicle, exceeding the original equipment manufacturer’s published
wheelbase dimension for the base model and year of the vehicle,
in any amount sufficient to accommodate additional passengers
with a seating capacity of not more than 10 passengers including
the driver, and is used in the transportation of passengers for hire.
For purposes of this subdivision, “wheelbase” means the
longitudinal distance between the vertical centerlines of the front
and rear wheels.

begin delete SECTION 1. end delete

begin insert SEC. 2. end insert   

Section 1042.2 is added to the Public Utilities Code,
to read:

1042.2.  

(a) The begin delete commission end delete begin insert commission, in collaboration
with the Department of Motor Vehicles, end insert shall, on begin delete a continuous end delete begin insert an
annual end insert basis, verify begin delete with the Department of Motor Vehicles end delete that
the buses, limousines, and modified limousines used by a passenger
stage corporation have been reported to the commission by the

begin delete carrier. end delete begin insert corporation. end insert

(b) The commission, with respect to newly registered buses,
limousines, or modified limousines of passenger stage corporations
reported by the Department of Motor Vehicles to the commission
pursuant to Section 1686 of the Vehicle Code, shall ensure that
the newly registered buses, limousines, or modified limousines
meet all statutory and regulatory requirements for safe operation.

(c) (1) If the commission becomes aware, pursuant to Section
1686, of a newly registered bus, limousine, or modified limousine
of the passenger stage corporation that has not been reported to
the commission by the corporation, the commission shall
immediately take steps to require the corporation to update its
reporting of buses, limousines, and modified limousines to the
commission and to request the Department of the California
Highway Patrol to conduct a safety inspection of the bus,
limousine, or modified limousine.

(2) A passenger stage corporation may not transport passengers
on a bus, limousine, or modified limousine described in paragraph
(1) in the absence of securing a satisfactory rating from the
Department of the California Highway Patrol for the bus,
limousine, or modified limousine. A bus, limousine, or modified
limousine operated in violation of this section may be impounded
by a law enforcement agency.

(3) The commission may impose a penalty against the affected
corporation for a violation of paragraph (2) and may suspend or
revoke the corporation’s operating certificate, as provided in this
article.

begin delete SEC. 2. end delete

begin insert SEC. 3. end insert   

Section 5374.4 is added to the Public Utilities Code,
to read:

5374.4.  

(a) The begin delete commission end delete begin insert commission, in collaboration
with the Department of Motor Vehicles, end insert shall, on begin delete a continuous end delete begin insert an
annual end insert basis, verify begin delete with the Department of Motor Vehicles end delete begin insert that end insert
the buses, limousines, and modified limousines used by a
charter-party carrier of passengers begin delete and end delete begin insert have been end insert reported to the
commission by the carrier.

(b) The commission, with respect to newly registered buses,
limousines, or modified limousines of charter-party carriers of
passengers reported by the Department of Motor Vehicles to the
commission pursuant to Section 1686 of the Vehicle Code, shall
ensure that the newly registered buses, limousines, or modified
limousines meet all statutory and regulatory requirements for safe
operation.

(c) (1) If the commission becomes aware, pursuant to Section
1686, of a newly registered bus, limousine, or modified limousine
of the charter-party carrier of passengers that has not been reported
to the commission by the carrier, the commission shall immediately
take steps to require the carrier to update its reporting of buses,
limousines, and modified limousines to the commission and to
request the Department of the California Highway Patrol to conduct
a safety inspection of the bus, limousine, or modified limousine.

(2) A charter-party carrier of passengers may not transport
passengers on a bus, limousine, or modified limousine subject to
a safety inspection pursuant to paragraph (1) in the absence of
securing a satisfactory rating from the Department of the California
Highway Patrol for the bus, limousine, or modified limousine. A
bus, limousine, or modified limousine operated in violation of this
section may be impounded by a law enforcement agency.

(3) The commission may impose a penalty against the affected
carrier for a violation of paragraph (2) and may suspend or revoke
the carrier’s operating certificate or permit, as provided in this
chapter.

begin insert

begin insert SEC. 4. end insert   

end insert

begin insert Section 5374.5 of the end insert begin insert Public Utilities Code end insert begin insert is amended
to read: end insert

5374.5.  

(a)  begin delete At the time of each bus terminal inspection
conducted by the Department of the California Highway Patrol
pursuant to subdivision (c) of Section 34501 of the Vehicle Code,
every end delete begin insert Each end insert charter-party carrier of passengers shall furnish both
the Department of the California Highway Patrol and the
commission begin insert annually end insert a list, prepared under oath, of all begin delete vehicles end delete
begin insert buses, limousines, and modified limousines end insert used in transportation
for begin delete compensation during the period since the last inspection. end delete
begin insert compensation, including the vehicle registration information for
each vehicle. end insert The commission shall furnish a copy of the list to
the carrier’s insurer, if the carrier’s accident liability protection is
provided by a policy of insurance. This subdivision does not apply
to a charter-party carrier of passengers engaged in the provision
of a hired driver service when a rented motor vehicle is being
operated by the hired driver.

(b) If the charter-party carrier’s insurer informs the commission
that the carrier has failed to obtain insurance coverage for any
vehicle reported on the list, the commission may, in addition to
any other penalty provided in this chapter, for a first occurrence,
suspend the carrier’s certificate or permit or impose a fine, or both,
and for a second or subsequent occurrence may suspend or revoke
the certificate or impose a fine, or both.

begin insert

(c) The commission shall not issue or continue in effect any
permit or certificate of a charter-party carrier of passengers that
has not submitted the list required by subdivision (a).

end insert

begin delete SEC. 3. end delete

begin insert SEC. 5. end insert   

Section 1686 is added to the Vehicle Code, to read:

1686.  

The begin insert department, in issuing or renewing a commercial
vehicle registration, shall require the owner of a bus, limousine,
or modified limousine used by a charter-party carrier of passengers
or a passenger stage corporation to disclose the name of the
carrier or corporation that will be using the vehicle in its
operations. The end insert department shall notify the Public Utilities
Commission when a charter-party carrier of passengers or a
passenger stage corporation first registers a bus, limousine, or
modified limousine with the department, and shall provide
information to the commission that will allow the commission to
identify the vehicle.

begin delete SEC. 4. end delete

begin insert SEC. 6. 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.