Amended in Senate April 6, 2015

Senate Bill No. 541

Introduced by Senator Hill

February 26, 2015

An act begin insert to amend Sections 5317.5, 5387, and 5411.5 of, and to add Sections 309.8, 1046, and 5417.5 to, the Public Utilities Code, and to amend Section 14602.9 of the Vehicle Code, end insert relating to transportation.

LEGISLATIVE COUNSEL’S DIGEST

SB 541, as amended, Hill. Public Utilities Commission: begin delete transportation companies. end delete begin insert for-hire transportation carriers: enforcement. end insert

begin insert

(1) The California Constitution establishes the Public Utilities Commission, with jurisdiction over the transportation of passengers and property by transportation companies, to the extent not preempted by federal law.

end insert begin insert

This bill would require the commission, in consultation with the Department of Human Resources, to develop a comprehensive human resources plan for the Transportation Enforcement Branch of the Safety and Enforcement Division. The bill would require the commission to implement a program to monitor the performance of the Transportation Enforcement Branch and to develop a comprehensive strategy to detect, deter, and take enforcement actions against charter-party carriers of passengers, passenger stage corporations, and household goods carriers that are operating illegally. The bill would also require the commission to develop and implement a plan to improve technology capabilities to enhance customer service at the Transportation Enforcement Branch and develop a budget plan for the Transportation Enforcement Branch. The bill would require the commission to report to the Legislature by January 1, 2017, and by each January 1 thereafter on the commission’s implementation of these requirements.

end insert begin insert

(2) A passenger stage corporation, as defined, which operates between fixed termini or over a regular route, is a common carrier subject to regulation by the commission pursuant to the Public Utilities Act. The Public Utilities Act, with certain exceptions, requires that a passenger stage corporation obtain a certificate of public convenience and necessity from the commission to operate on any public highway in the state and requires it to display an identifying symbol issued by the commission. The Public Utilities Act makes any public utility that violates the Public Utilities Act, or that fails to comply with any part of any order, decision, rule, direction, demand, or requirement of the commission guilty of a crime and makes it a misdemeanor for a person or corporation to hold out to the public that the person or corporation is in operation as a passenger stage corporation without having a valid certificate issued by the commission. The Public Utilities Act authorizes the commission to impose various fines and penalties for any violation of the act or an order, decision, rule, direction, demand, or requirement of the commission. The Public Utilities Act provides that the Department of the California Highway Patrol (CHP) has the primary responsibility for regulating the safety of operation of passenger stage corporations and requires the commission to cooperate with the CHP to ensure safe operation of these carriers.

end insert begin insert

A charter-party carrier of passengers, as defined, is subject to the jurisdiction and control of the commission under the Passenger Charter-party Carriers’ Act. The Passenger Charter-party Carriers’ Act requires a charter-party carrier of passengers to (A) obtain a certificate of public convenience and necessity or a permit issued by the commission, (B) operate within the state on a prearranged basis, as defined, (C) comply with specified vehicle identification requirements, and (D) comply with accident liability protection requirements. The Passenger Charter-party Carriers’ Act additionally prohibits a charter-party carrier of passengers from advertising its services, or in any manner representing its services, as being a taxicab or taxi service. The Passenger Charter-party Carriers’ Act makes violation of these requirements a crime. The Passenger Charter-party Carriers’ Act authorizes the commission to impose fines and penalties for violations of the act.

end insert begin insert

This bill would authorize peace officers, defined to include sheriffs, police officers, CHP officers, and airport law enforcement officers, to enforce and assist in the enforcement of criminal violations of the Public Utilities Act, with respect to passenger stage corporations, and the Passenger Charter-party Carriers’ Act, with respect to charter-party carriers of passengers. The bill would require the commission to coordinate enforcement of those acts with those peace officers through educational outreach and establishing lines of communications that ensure that the commission is notified if an action is commenced so that the commission may take appropriate action to enforce the fine and penalty provisions of the acts. The bill would require the commission to ensure that the Passenger Charter-party Carriers’ Act is enforced and obeyed and that violations are promptly prosecuted and that penalty moneys due to the state are recovered and collected. The bill would authorize the Attorney General, a district attorney, or a city attorney to institute and prosecute actions or proceedings for the violation of the Passenger Charter-party Carriers’ Act.

end insert begin insert

(3) The Passenger Charter-party Carriers’ Act authorizes a CHP officer to impound a bus of a charter-party carrier of passengers for 30 days if the officer determines that (A) the driver was operating the bus when the carrier did not have a permit or certificate issued by the commission or the carrier’s permit or certificate was suspended, or (B) the driver was operating the bus without having a current and valid driver’s license of the proper class, a passenger vehicle endorsement, or the required certificate. A provision of the Vehicle Code also authorizes a CHP officer to impound a bus of a charter-party carrier of passengers for 30 days if the officer makes any of the determinations described above.

end insert begin insert

This bill would authorize a peace officer, defined to include sheriffs, police officers, and airport law enforcement officers, in addition to CHP officers, to impound any vehicle of a charter-party carrier of passengers for 30 days in those circumstances. The bill would revise the Vehicle Code to authorize a peace officer, identically defined, to impound any vehicle of a charter-party carrier of passengers for 30 days in those circumstances and authorize a peace officer to impound a vehicle belonging to a passenger stage corporation for 30 days if the officer determines (A) the driver was operating the vehicle when the passenger stage corporation did not have a required certificate of public convenience and necessity issued by the commission, (B) the driver was operating the vehicle when the operating rights or certificate of public convenience and necessity of a passenger stage corporation was suspended, canceled, or revoked, or (C) the driver was operating the vehicle without having a current and valid driver’s license of the proper class.

end insert begin insert

The Passenger Charter-party Carriers’ Act additionally authorizes certain peace officers, when making an arrest for operating a charter-party carrier of passengers without a valid certificate or permit or when making an arrest for operating a charter-party carrier of passengers as a taxicab in violation of an ordinance or resolution of a city, county, or city and county, to impound and retain possession of the vehicle.

end insert begin insert

This bill would limit the authority to impound a vehicle pursuant to this provision to a sheriff, police officer, CHP officer, or airport law enforcement officer.

end insert begin insert

(4) A household goods carrier, as defined, which transports household goods and personal effects over any public highway in the state for compensation, is subject to regulation by the commission pursuant to the Household Goods Carriers Act. The Household Goods Carriers Act requires that a household goods carrier obtain a permit from the commission to transport household goods entirely within the state and obtain a valid operating authority issued by the Federal Motor Carrier Safety Administration to transport household goods and personal effects from this state to another or from another state to this state. The Household Goods Carriers Act additionally requires a household goods carrier to comply with specified vehicle identification requirements and comply with accident liability protection requirements. The Household Goods Carriers Act makes a violation of the requirements of the act a misdemeanor, authorizes the commission to impose fines and penalties for violations of the act, and requires the commission to ensure that the act is enforced and obeyed, that violations are promptly prosecuted and that penalty moneys due to the state are recovered and collected.

end insert begin insert

This bill would authorize peace officers, defined to include sheriffs, police officers, and CHP officers, to enforce and assist in the enforcement of criminal violations of the Household Goods Carriers Act. The bill would require the commission to coordinate enforcement of the Household Goods Carriers Act with those peace officers through educational outreach and establishing lines of communications that ensure that the commission is notified if an action is commenced so that the commission may take appropriate action to enforce the fine and penalty provisions of the Household Goods Carriers Act.

end insert begin delete

The California Constitution establishes the Public Utilities Commission, with jurisdiction over public utilities, and authorizes the commission to fix rates and establish rules for, among other things, the transportation of passengers and property by transportation companies.

end delete begin delete

This bill would express the intent of the Legislature to enact legislation to improve the regulation of transportation companies by the Public Utilities Commission.

end delete

Vote: majority. Appropriation: no. Fiscal committee:  begin delete no end delete begin insert yes end insert . State-mandated local program: no.

The people of the State of California do enact as follows:

begin insert

begin insert SECTION 1. end insert   

end insert begin insert

(a) The Transportation Enforcement Branch of
the Safety and Enforcement Division of the state’s Public Utilities
Commission has regulatory oversight of various for-hire
transportation carriers, including limousines, airport shuttles,
charter buses, and moving companies. The Transportation
Enforcement Branch administers licensing, enforces state law,
and manages consumer complaints to ensure the reliable and safe
transport of passengers and goods within the state.

end insert begin insert

(b) The California State Auditor’s Report 2013-130 concluded
that the Transportation Enforcement Branch does not adequately
ensure that passenger carriers operate safely. Among the numerous
problems cited by the California State Auditor are that the branch
does not have formal policies for dealing with complaints against
carriers, it does not resolve complaints in a timely manner, it does
not have adequate investigatory techniques, and it fails to properly
account for fees paid by carriers. In addition, the California State
Auditor concluded that without major improvements to its
management processes, the branch has little ability to resolve its
deficiencies.

end insert begin insert

(c) While the commission is undertaking an internal process to
implement the California State Auditor’s recommendations, it is
in the public interest for the Legislature to further ensure that the
Transportation Enforcement Branch improves its performance to
ensure passenger safety.

end insert

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert Section 309.8 is added to the end insert begin insert Public Utilities Code end insert begin insert , to
read: end insert

begin insert

begin insert 309.8. end insert   

(a) The commission, in consultation with the
Department of Human Resources, shall develop a comprehensive
human resources plan for the Transportation Enforcement Branch
of the Safety and Enforcement Division, which focuses on staff
development, management practices, and leadership. The plan
shall include policies to properly and adequately train new
employees, provide proper and adequate continuous training, and
retain staff and reduce high rates of staff turnover.

(b) The commission shall implement a program to monitor the
performance of the Transportation Enforcement Branch of the
Safety and Enforcement Division to ensure that applications for
permits and certificates are processed in a timely manner, ensure
investigations are completed properly and in a timely manner, and
ensure that the branch is taking appropriate enforcement actions.
The program shall include, but shall not be limited to, the following
performance measurements:

(1) The average length of time it takes to process an application
for a permit or certificate.

(2) The number of complaints received and the average length
of time it takes to resolve those complaints.

(3) The number of investigations, stings, and other operations
undertaken to prohibit the illegal operation of charter-party
carriers of passengers, passenger stage corporations, and
household goods carriers.

(4) The average length of time it takes to complete an
investigation and the disposition of the investigations completed.

(5) A method to annually analyze fees assessed on charter-party
carriers of passengers, passenger stage corporations, and
household goods carriers to determine if those fees are fair and
commensurate with services rendered.

(c) (1) The commission shall develop a comprehensive strategy
to detect, deter, and take enforcement actions against charter-party
carriers of passengers, passenger stage corporations, and
household goods carriers that are operating illegally. This strategy
shall include steps to increase on-the-street enforcement of illegally
operating charter-party carriers of passengers, passenger stage
corporations, and household goods carriers and, to the extent
possible, the commission shall coordinate with state and local law
enforcement on enforcement activities.

(2) As part of the strategy, the commission shall include
strike-force enforcement actions to be conducted at special events,
including proms, awards, and sporting events, and a scheduled
strategic, focused, enforcement timeline.

(3) As part of the strategy, the commission shall establish a
formal method for acknowledging and investigating consumer
complaints regarding charter-party carriers of passengers.
Acknowledgment shall include written acknowledgment of receipt
of a complaint.

(4) The strategy shall include steps to take enforcement actions
against unpermitted, or illegally operating, charter-party carriers
of passengers, passenger stage corporations, and household goods
carriers that are advertising their services, either electronically
or in print.

(5) The commission shall make best efforts to coordinate with
associations representing industries regulated by the
Transportation Enforcement Branch to coordinate enforcement
of illegal operators.

(6) As part of the strategy, the commission shall detail how it
will coordinate with the Board of Equalization to enforce the
collection of penalty payments, the Department of Industrial
Relations to enforce provisions related to workers’ compensation,
and the Department of Motor Vehicles to enforce provisions related
to vehicle insurance.

(d) (1) The commission shall develop and implement a plan to
improve technology capabilities to enhance customer service at
the Transportation Enforcement Branch that allow for complete
online application and renewal, vehicle registration, vehicle
insurance compliance, and consumer complaints.

(2) To the extent possible, the commission shall work to
streamline the way charter-party carriers of passengers, passenger
stage corporations, and household goods carriers submit
information, reports, and applications. This shall include annual
reports to the commission, quarterly revenue reports to the
commission, and reports to the Department of the California
Highway Patrol.

(3) The commission shall ensure that during all normal business
hours, commission staff at the Transportation Enforcement Branch
is available by phone so that regulated carriers and those applying
for authority can easily contact a staff member to ask questions
or obtain information.

(e) The commission shall, on an annual basis, meet with industry
associations regulated by the Transportation Enforcement Branch,
to ensure that there are coordinated efforts to improve customer
service and enforcement to halt illegal operators.

(f) The commission shall develop a budget plan for the
Transportation Enforcement Branch to ensure that revenues and
expenditures are appropriately aligned. As part of the budget plan,
the commission shall categorize revenues and expenditures by
carrier type and shall also categorize which specific expenditures
are for enforcement activities. The budget plan shall also include
guidelines for maintaining a reasonable reserve for economic
uncertainties.

(g) (1) The commission shall report to the Legislature on
implementation of this section no later than January 1, 2017, and
by each January 1, thereafter.

(2) A report to be submitted pursuant to this subdivision shall
be submitted in compliance with Section 9795 of the Government
Code.

end insert

begin insert

begin insert SEC. 3. end insert   

end insert

begin insert Section 1046 is added to the end insert begin insert Public Utilities Code end insert begin insert , to
read: end insert

begin insert

begin insert 1046. end insert   

(a) For purposes of this section, “peace officer” means
all of the following:

(1) Any sheriff, undersheriff, or deputy sheriff, employed in that
capacity, of a county; any chief of police of a city or chief, director,
or chief executive officer of a consolidated municipal public safety
agency that performs police functions; and any police officer,
employed in that capacity and appointed by the chief of police or
chief, director, or chief executive of a public safety agency, of a
city.

(2) An officer of the Department of the California Highway
Patrol.

(3) Any person regularly employed as an airport law
enforcement officer by a city, county, or district operating the
airport or by a joint powers agency, created pursuant to Article
1 (commencing with Section 6500) of Chapter 5 of Division 7 of
Title 1 of the Government Code, operating the airport, if the
primary duty of the person is the enforcement of the law in or about
properties owned, operated, and administered by the employing
agency or when performing necessary duties with respect to
patrons, employees, and properties of the employing agency, in
or about the properties owned, operated, and administered by the
employing agency.

(b) A peace officer may, with respect to a passenger stage
corporation, enforce and assist in the enforcement of Sections
2110 and 2112, resulting from a violation of Section 1031, 1041,
or 1045, or more than one of those sections. A peace officer may
additionally enforce and assist in the enforcement of Sections
1034.5 and 2119. In any case in which an arrest authorized by
this subdivision is made for an offense declared to be a
misdemeanor, and the person arrested does not demand to be taken
before a magistrate, the arresting peace officer may, instead of
taking such person before a magistrate, follow the procedure
prescribed by Chapter 5C (commencing with Section 853.5) of
Title 3 of Part 2 of the Penal Code. The provisions of that chapter
shall thereafter apply with reference to any proceeding based upon
the issuance of a citation pursuant to this authority.

(c) A peace officer may impound a vehicle operated by a
passenger stage corporation pursuant to Section 14602.9 of the
Vehicle Code if the peace officer determines that any of the
following violations occurred while the driver was operating the
vehicle:

(1) The driver was operating the vehicle when the passenger
stage corporation did not have a certificate of public convenience
and necessity issued by the commission as required pursuant to
this article.

(2) The driver was operating the vehicle when the operating
rights or certificate of public convenience and necessity of a
passenger stage corporation was suspended, canceled, or revoked
pursuant to Section 1033.5, 1033.7, or 1045.

(3) The driver was operating the vehicle without having a
current and valid driver’s license of the proper class.

(d) The commission shall coordinate enforcement of this section
with those peace officers described in subdivision (a), including
undertaking both of the following:

(1) Educational outreach to ensure that those peace officers
are aware of the requirements of Sections 1031, 1034.5, 1041,
1045, 2110, 2112, and 2119.

(2) Establishing lines of communication to ensure that the
commission is notified if an action is commenced to enforce the
requirements of those sections specified in subdivision (b), so that
the commission may take appropriate action to enforce the fine
and penalty provisions of Chapter 11 (commencing with Section
2100).

(e) The Legislature finds and declares that this section is
intended to facilitate and enhance the commission’s performance
of its functions pursuant to Section 2101 and not diminish the
commission’s authority or responsibility pursuant to that section.

end insert

begin insert

begin insert SEC. 4. end insert   

end insert

begin insert Section 5317.5 of the end insert begin insert Public Utilities Code end insert begin insert is amended
to read: end insert

5317.5.  

begin insert (a) end insert begin insert   end insert The commission shall ensure that this chapter is
enforced and obeyed, and that violations thereof are promptly
prosecuted and begin delete penalties end delete begin insert that penalty moneys end insert due begin insert to end insert the state
begin delete therefor end delete begin insert are end insert recovered and collected, and to this end it may sue in
the name of the people of the State of California. Upon the request
of the commission, the Attorney General or the district attorney
of the proper county or city and county may aid in any
investigation, hearing, or trial had under this chapter. begin delete The end delete

begin insert

(b) For purposes of this section, “peace officer” means all of
the following:

end insert begin insert

(1) Any sheriff, undersheriff, or deputy sheriff, employed in that
capacity, of a county; any chief of police of a city or chief, director,
or chief executive officer of a consolidated municipal public safety
agency that performs police functions; and any police officer,
employed in that capacity and appointed by the chief of police or
chief, director, or chief executive of a public safety agency, of a
city.

end insert begin insert

(2) An officer of the Department of the California Highway
Patrol.

end insert begin insert

(c) A peace officer may enforce and assist in the enforcement
of Sections 5311 and 5312, resulting from a violation of Section
5132, 5133, 5140, or 5286, or more than one of those sections. A
peace officer may additionally enforce and assist in the
enforcement of Sections 5311.3 and 5314.5. In any case in which
an arrest authorized by this subdivision is made for an offense
declared to be a misdemeanor, and the person arrested does not
demand to be taken before a magistrate, the arresting peace officer
may, instead of taking such person before a magistrate, follow the
procedure prescribed by Chapter 5C (commencing with Section
853.5) of Title 3 of Part 2 of the Penal Code. The provisions of
that chapter shall thereafter apply with reference to any proceeding
based upon the issuance of a citation pursuant to this authority.

end insert begin insert

(d) The commission shall coordinate enforcement of this section
with those peace officers described in subdivision (a), including
undertaking both of the following:

end insert begin insert

(1) Educational outreach to ensure that those peace officers
are aware of the requirements of Sections 5132, 5133, 5140, 5286,
5311, 5311.3, 5312, and 5314.5.

end insert begin insert

(2) Establishing lines of communication to ensure that the
commission is notified if an action is commenced to enforce the
requirements of those sections specified in subdivision (c), so that
the commission may take appropriate action to enforce the fine
and penalty provisions of this article.

end insert

begin insert (e) end insert begin insert   end insert begin insert The end insert Attorney General, a district attorney of the proper county
or city and county, or a city attorney may institute and prosecute
actions or proceedings for the violation of any law committed in
connection with, or arising from, a transaction involving the
transportation of household goods and personal effects.

begin insert

begin insert SEC. 5. end insert   

end insert

begin insert Section 5387 of the end insert begin insert Public Utilities Code end insert begin insert is amended
to read: end insert

5387.  

(a) It is unlawful for the owner of a charter-party carrier
of passengers to permit the operation of a vehicle upon a public
highway for compensation without (1) having obtained from the
commission a certificate or permit pursuant to this chapter, (2)
having complied with the vehicle identification requirements of
Section 5385 or 5385.5, and (3) having complied with the accident
liability protection requirements of Section 5391.

(b) A person who drives a bus for a charter-party carrier without
having a current and valid driver’s license of the proper class, a
passenger vehicle endorsement, or the required certificate shall be
suspended from driving a bus of any kind, including, but not
limited to, a bus, schoolbus, school pupil activity bus, or transit
bus, with passengers for a period of five years pursuant to Section
13369 of the Vehicle Code.

(c) (1) A charter-party carrier shall have its authority to operate
as a charter-party carrier permanently revoked by the commission
or be permanently barred from receiving a permit or certificate
from the commission if it commits any of the following acts:

(A) Operates a bus without having been issued a permit or
certificate from the commission.

(B) Operates a bus with a permit that was suspended by the
commission pursuant to Section 5378.5.

(C) Commits three or more liability insurance violations within
a two-year period for which it has been cited.

(D) Operates a bus with a permit that was suspended by the
commission during a period that the charter-party carrier’s liability
insurance lapsed for which it has been cited.

(E) Knowingly employs a busdriver who does not have a current
and valid driver’s license of the proper class, a passenger vehicle
endorsement, or the required certificate to drive a bus.

(F) Has one or more buses improperly registered with the
Department of Motor Vehicles.

(2) The commission shall not issue a new permit or certificate
to operate as a charter-party carrier if any officer, director, or owner
of that charter-party carrier was an officer, director, or owner of
a charter-party carrier that had its authority to operate as a
charter-party carrier permanently revoked by the commission or
that was permanently barred from receiving a permit or certificate
from the commission pursuant to this subdivision.

(d)  begin delete An officer of the Department of the California Highway
Patrol end delete begin insert A peace officer, as defined in Section 5417.5, end insert may impound
a begin delete bus end delete begin insert vehicle end insert of a charter-party carrier begin insert of passengers end insert for 30 days
pursuant to Section 14602.9 of the Vehicle Code if the begin insert peace end insert
officer determines that any of the following violations occurred
while the begin delete busdriver end delete begin insert driver end insert was operating the begin delete bus end delete begin insert vehicle end insert of a
charter-party carrier:

(1) The driver was operating the begin delete bus end delete begin insert vehicle end insert of a charter-party
carrier begin insert of passengers end insert when the charter-party carrier begin insert of passengers end insert
did not have a permit or certificate issued by the commission.

(2) The driver was operating the begin delete bus end delete begin insert vehicle end insert of a charter-party
carrier begin insert of passengers end insert when the charter-party carrier begin insert of passengers end insert
was operating begin delete the bus end delete with a suspended permit or certificate from
the commission.

(3) The driver was operating the begin delete bus end delete begin insert vehicle end insert of a charter-party
carrier begin insert of passengers end insert without having a current and valid driver’s
license of the proper class, a passenger vehicle endorsement, or
the required certificate.

begin insert

begin insert SEC. 6. end insert   

end insert

begin insert Section 5411.5 of the end insert begin insert Public Utilities Code end insert begin insert is amended
to read: end insert

5411.5.  

(a) Whenever a peace officer, as defined in begin delete Chapter
4.5 (commencing with Section 830) of Title 3 of Part 2 of the Penal
Code, end delete begin insert Section 5417.5, end insert arrests a person for operation of a begin insert vehicle
of a end insert charter-party carrier of passengers without a valid certificate
or permit, the peace officer may impound and retain possession
of the vehicle.

(b) Whenever a peace officer, as defined in begin delete Chapter 4.5
(commencing with Section 830) of Title 3 of Part 2 of the Penal
Code, end delete begin insert Section 5417.5, end insert arrests a person for operating a begin insert vehicle of
a end insert charter-party carrier of passengers as a taxicab in violation of an
ordinance or resolution of a city, county, or city and county, the
peace officer may impound and retain possession of the vehicle.

(c) If the vehicle is seized from a person who is not the owner
of the vehicle, the impounding authority shall immediately give
notice to the owner by first-class mail.

(d) The vehicle shall immediately be returned to the owner if
the infraction or violation is not prosecuted or is dismissed, the
owner is found not guilty of the offense, or it is determined that
the vehicle was used in violation of Section 5411 without the
knowledge and consent of the owner. The vehicle shall be returned
to the owner upon payment of any fine ordered by the court. If the
vehicle is seized due to a violation of a person other than the owner
of the vehicle, the vehicle shall be returned to the owner after all
impoundment fees are paid. After the expiration of six weeks from
the final disposition of the criminal case, unless the owner is in
the process of making payments to the court, the impounding
authority may deal with the vehicle as lost or abandoned property
under Section 1411 of the Penal Code.

(e) At any time, a person may make a motion in superior court
for the immediate return of the vehicle on the ground that there
was no probable cause to seize it or that there is some other good
cause, as determined by the court, for the return of the vehicle. A
proceeding under this section is a limited civil case.

(f) No peace officer, however, may impound any vehicle owned
or operated by a nonprofit organization exempt from taxation
pursuant to Section 501(c)(3) of the Internal Revenue Code which
serves youth or senior citizens and provides transportation
incidental to its programs or services or a rented motor vehicle
that is being operated by a hired driver of a charter-party carrier
of passengers that is providing hired driver service.

begin insert

begin insert SEC. 7. end insert   

end insert

begin insert Section 5417.5 is added to the end insert begin insert Public Utilities Code end insert begin insert ,
to read: end insert

begin insert

begin insert 5417.5. end insert   

(a) The commission shall ensure that this chapter is
enforced and obeyed, and that violations thereof are promptly
prosecuted and that penalty moneys due to the state are recovered
and collected, and to this end it may sue in the name of the people
of the State of California. Upon the request of the commission, the
Attorney General or the district attorney of the proper county or
city and county may aid in any investigation, hearing, or trial
under this chapter. The Attorney General, a district attorney of
the proper county or city and county, or a city attorney may
institute and prosecute actions or proceedings for the violation of
any law committed in connection with, or arising from, a
transaction involving a charter-party carrier of passengers.

(b) For purposes of this section, “peace officer” means all of
the following:

(1) Any sheriff, undersheriff, or deputy sheriff, employed in that
capacity, of a county; any chief of police of a city or chief, director,
or chief executive officer of a consolidated municipal public safety
agency that performs police functions; and any police officer,
employed in that capacity and appointed by the chief of police or
chief, director, or chief executive of a public safety agency, of a
city.

(2) An officer of the Department of the California Highway
Patrol.

(3) Any person regularly employed as an airport law
enforcement officer by a city, county, or district operating the
airport or by a joint powers agency, created pursuant to Article
1 (commencing with Section 6500) of Chapter 5 of Division 7 of
Title 1 of the Government Code, operating the airport, if the
primary duty of the person is the enforcement of the law in or about
properties owned, operated, and administered by the employing
agency or when performing necessary duties with respect to
patrons, employees, and properties of the employing agency, in
or about the properties owned, operated, and administered by the
employing agency.

(c) A peace officer may enforce and assist in the enforcement
of Sections 5411 and 5412 resulting from a violation of Section
5371, 5379, 5385, 5385.7, or 5387, or more than one of those
sections. A peace officer may additionally enforce and assist in
the enforcement of Sections 5411.3 and 5414.5. In any case in
which an arrest authorized by this subdivision is made for an
offense declared to be a misdemeanor, and the person arrested
does not demand to be taken before a magistrate, the arresting
peace officer may, instead of taking such person before a
magistrate, follow the procedure prescribed by Chapter 5C
(commencing with Section 853.5) of Title 3 of Part 2 of the Penal
Code. The provisions of that chapter shall thereafter apply with
reference to any proceeding based upon the issuance of a citation
pursuant to this authority.

(d) The commission shall coordinate enforcement of this section
with those peace officers described in subdivision (b), including
undertaking both of the following:

(1) Educational outreach to ensure that those peace officers
are aware of the requirements of Sections 5371, 5379, 5385,
5385.7, 5387, 5411, 5411.3, 5412, and 5414.5.

(2) Establishing lines of communication to ensure that the
commission is notified if an action is commenced to enforce the
requirements of those sections specified in subdivision (c), so that
the commission may take appropriate action to enforce the fine
and penalty provisions of this article.

(e) The Attorney General, a district attorney of the proper county
or city and county, or a city attorney may institute and prosecute
actions or proceedings for the violation of any law committed in
connection with, or arising from, a transaction involving the
transportation of passengers by a charter-party carrier of
passengers.

end insert

begin insert

begin insert SEC. 8. end insert   

end insert

begin insert Section 14602.9 of the end insert begin insert Vehicle Code end insert begin insert is amended to
read: end insert

14602.9.  

(a)  begin delete An officer of the Department of the California
Highway Patrol end delete begin insert For purposes of this section, “peace officer”
means all of the following: end insert

begin insert

(1) An officer of the Department of the California Highway
Patrol.

end insert begin insert

(2) Any sheriff, undersheriff, or deputy sheriff, employed in that
capacity, of a county; any chief of police of a city or chief, director,
or chief executive officer of a consolidated municipal public safety
agency that performs police functions; and any police officer,
employed in that capacity and appointed by the chief of police or
chief, director, or chief executive of a public safety agency, of a
city.

end insert begin insert

(3) Any person regularly employed as an airport law
enforcement officer by a city, county, or district operating the
airport or by a joint powers agency, created pursuant to Article
1 (commencing with Section 6500) of Chapter 5 of Division 7 of
Title 1 of the Government Code, operating the airport, if the
primary duty of the person is the enforcement of the law in or about
properties owned, operated, and administered by the employing
agency or when performing necessary duties with respect to
patrons, employees, and properties of the employing agency, in
or about the properties owned, operated, and administered by the
employing agency.

end insert

begin insert (b) end insert begin insert   end insert begin insert A peace officer end insert may impound a begin delete bus end delete begin insert vehicle end insert of a charter-party
carrier for 30 days if the officer determines that any of the
following violations occurred while the begin delete bus end delete driver was operating
the begin delete bus of a end delete begin insert vehicle of the end insert charter-party carrier:

(1) The driver was operating the begin delete bus end delete begin insert vehicle end insert of a charter-party
carrier when the charter-party carrier did not have a permit or
certificate issued by the Public Utilities Commission, pursuant to
Section 5375 of the Public Utilities Code.

(2) The driver was operating the begin delete bus end delete begin insert vehicle end insert of a charter-party
carrier when the charter-party carrier was operating begin delete the bus end delete with
a suspended permit or certificate from the Public Utilities
Commission.

(3) The driver was operating the begin delete bus end delete begin insert vehicle end insert of a charter-party
carrier without having a current and valid driver’s license of the
proper class, a passenger vehicle endorsement, or the required
certificate.

begin delete

(b)

end delete begin insert

(c) A peace officer may impound a vehicle belonging to a
passenger stage corporation for 30 days if the officer determines
any of the following violations occurred while the driver was
operating the vehicle:

end insert begin insert

(1) The driver was operating the vehicle when the passenger
stage corporation did not have a certificate of public convenience
and necessity issued by the Public Utilities Commission as required
pursuant to Article 2 (commencing with Section 1031) of Chapter
5 of Part 1 of Division 1 of the Public Utilities Code.

end insert begin insert

(2) The driver was operating the vehicle when the operating
rights or certificate of public convenience and necessity of a
passenger stage corporation was suspended, canceled, or revoked
pursuant to Section 1033.5, 1033.7, or 1045 of the Public Utilities
Code.

end insert begin insert

(3) The driver was operating the vehicle without having a
current and valid driver’s license of the proper class.

end insert

begin insert (d) end insert  Within two working days after impoundment, the
impounding agency shall send a notice by certified mail, return
receipt requested, to the legal owner of the vehicle, at the address
obtained from the department, informing the owner that the vehicle
has been impounded. Failure to notify the legal owner within two
working days shall prohibit the impounding agency from charging
for more than 15 day’s impoundment when the legal owner
redeems the impounded vehicle. The impounding agency shall
maintain a published telephone number that provides information
24 hours a day regarding the impoundment of vehicles and the
rights of a registered owner to request a hearing.

begin delete

(c)

end delete

begin insert (e) end insert  The registered and legal owner of a vehicle that is removed
and seized under subdivision begin delete (a) end delete begin insert (b) or (c) end insert or his or her agent shall
be provided the opportunity for a storage hearing to determine the
validity of, or consider any mitigating circumstances attendant to,
the storage, in accordance with Section 22852.

begin delete

(d)

end delete

begin insert (f) end insert  (1) The impounding agency shall release the vehicle to the
registered owner or his or her agent prior to the end of the
impoundment period under any of the following circumstances:

(A) When the vehicle is a stolen vehicle.

(B) When the vehicle is subject to bailment and is driven by an
unlicensed employee of a business establishment, including a
parking service or repair garage.

(C) When begin insert , for a charter-party carrier of passengers, end insert the driver
of the vehicle is not the sole registered owner of the vehicle and
the vehicle is being released to another registered owner of the
vehicle who agrees not to allow the driver to use the vehicle until
after the end of the impoundment period and the charter-party
carrier has been issued a valid permit from the Public Utilities
Commission, pursuant to Section 5375 of the Public Utilities Code.

begin insert

(D) When, for a passenger stage corporation, the driver of the
vehicle is not the sole registered owner of the vehicle and the
vehicle is being released to another registered owner of the vehicle
who agrees not to allow the driver to use the vehicle until after
the end of the impoundment period and the passenger stage
corporation has been issued a valid certificate of public
convenience and necessity by the Public Utilities Commission,
pursuant to Article 2 (commencing with Section 1031) of Chapter
5 of Part 1 of Division 1 of the Public Utilities Code.

end insert

(2) A vehicle shall not be released pursuant to this subdivision
without presentation of the registered owner’s or agent’s currently
valid driver’s license to operate the vehicle and proof of current
vehicle registration, or upon order of a court.

begin delete

(e)

end delete

begin insert (g) end insert  The registered owner or his or her agent is responsible for
all towing and storage charges related to the impoundment, and
any administrative charges authorized under Section 22850.5.

begin delete

(f)

end delete

begin insert (h) end insert  A vehicle removed and seized under subdivision begin delete (a) end delete begin insert (b) or
(c) end insert shall be released to the legal owner of the vehicle or the legal
owner’s agent prior to the end of the impoundment period if all of
the following conditions are met:

(1) The legal owner is a motor vehicle dealer, bank, credit union,
acceptance corporation, or other licensed financial institution
legally operating in this state, or is another person who is not the
registered owner and holds a security interest in the vehicle.

(2) The legal owner or the legal owner’s agent pays all towing
and storage fees related to the seizure of the vehicle. A lien sale
processing fee shall not be charged to the legal owner who redeems
the vehicle prior to the 10th day of impoundment. The impounding
authority or any person having possession of the vehicle shall not
collect from the legal owner of the type specified in paragraph (1),
or the legal owner’s agent, any administrative charges imposed
pursuant to Section 22850.5 unless the legal owner voluntarily
requested a poststorage hearing.

(3) (A) The legal owner or the legal owner’s agent presents
either lawful foreclosure documents or an affidavit of repossession
for the vehicle, and a security agreement or title showing proof of
legal ownership for the vehicle. All presented documents may be
originals, photocopies, or facsimile copies, or may be transmitted
electronically. The impounding agency shall not require a
document to be notarized. The impounding agency may require
the agent of the legal owner to produce a photocopy or facsimile
copy of its repossession agency license or registration issued
pursuant to Chapter 11 (commencing with Section 7500) of
Division 3 of the Business and Professions Code, or to demonstrate,
to the satisfaction of the impounding agency, that the agent is
exempt from licensure pursuant to Section 7500.2 or 7500.3 of the
Business and Professions Code.

(B) Administrative costs authorized under subdivision (a) of
Section 22850.5 shall not be charged to the legal owner of the type
specified in paragraph (1), who redeems the vehicle unless the
legal owner voluntarily requests a poststorage hearing. A city,
county, or state agency shall not require a legal owner or a legal
owner’s agent to request a poststorage hearing as a requirement
for release of the vehicle to the legal owner or the legal owner’s
agent. The impounding agency shall not require any documents
other than those specified in this paragraph. The impounding
agency shall not require any documents to be notarized.

(C) As used in this paragraph, “foreclosure documents” means
an “assignment” as that term is defined in subdivision (o) of
Section 7500.1 of the Business and Professions Code.

begin delete

(g)

end delete

begin insert (i) end insert  (1) A legal owner or the legal owner’s agent who obtains
release of the vehicle pursuant to subdivision begin delete (f) end delete begin insert (h) end insert may not release
the vehicle to the registered owner of the vehicle or any agents of
the registered owner, unless the registered owner is a rental car
agency, until after the termination of the impoundment period.

(2) The legal owner or the legal owner’s agent shall not
relinquish the vehicle to the registered owner until the registered
owner or that owner’s agent presents his or her valid driver’s
license or valid temporary driver’s license to the legal owner or
the legal owner’s agent. The legal owner or the legal owner’s agent
shall make every reasonable effort to ensure that the license
presented is valid.

(3) Prior to relinquishing the vehicle, the legal owner may
require the registered owner to pay all towing and storage charges
related to the impoundment and any administrative charges
authorized under Section 22850.5 that were incurred by the legal
owner in connection with obtaining custody of the vehicle.

begin delete

(h)

end delete

begin insert (j) end insert  (1) A vehicle removed and seized under subdivision begin delete (a) end delete begin insert (b)
or (c) end insert shall be released to a rental agency prior to the end of the
impoundment period if the agency is either the legal owner or
registered owner of the vehicle and the agency pays all towing and
storage fees related to the seizure of the vehicle.

(2) The owner of a rental vehicle that was seized under this
section may continue to rent the vehicle upon recovery of the
vehicle. However, the rental agency shall not rent another vehicle
to the driver of the vehicle that was seized until the impoundment
period has expired.

(3) The rental agency may require the person to whom the
vehicle was rented to pay all towing and storage charges related
to the impoundment and any administrative charges authorized
under Section 22850.5 that were incurred by the rental agency in
connection with obtaining custody of the vehicle.

begin delete

(i)

end delete

begin insert (k) end insert  Notwithstanding any other provision of this section, the
registered owner, and not the legal owner, shall remain responsible
for any towing and storage charges related to the impoundment,
any administrative charges authorized under Section 22850.5, and
any parking fines, penalties, and administrative fees incurred by
the registered owner.

begin delete

(j)

end delete

begin insert (l) end insert  The impounding agency is not liable to the registered owner
for the improper release of the vehicle to the legal owner or the
legal owner’s agent provided the release complies with this section.

begin delete

(k) For the purposes of this section, a “bus” means a bus as
defined by Section 233 or a tour bus as defined by Section 612.

end delete begin delete

(l)

end delete

begin insert (m) end insert  For the purposes of this section, a “charter-party carrier”
means a charter-party carrier begin insert of passengers end insert as defined by Section
5360 of the Public Utilities Code.

begin insert

(n) For purposes of this section, a “passenger stage
corporation” means a passenger stage corporation as defined by
Section 226 of the Public Utilities Code.

end insert

begin delete

SECTION 1.  

It is the intent of the Legislature to enact
legislation to improve the regulation of transportation companies
by the Public Utilities Commission.

end delete