Amended in Senate June 2, 2015

Amended in Senate May 5, 2015

Amended in Senate April 6, 2015

Senate BillNo. 541


Introduced by Senator Hill

February 26, 2015


An act to amend Sectionsbegin insert 5102,end insert 5317.5,begin insert 5352,end insert 5387, and 5411.5 of, and to add Sectionsbegin delete 309.8, 1046,end deletebegin insert 1046end insert and 5417.5 to, the Public Utilities Code, and to amend Section 14602.9 of the Vehicle Code, relating to transportation.

LEGISLATIVE COUNSEL’S DIGEST

SB 541, as amended, Hill. Public Utilities Commission: for-hire transportation carriers: enforcement.

(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.begin insert The Household Goods Carriers Act and the Passenger Charter-party Carriers’ Act contain statements of the purposes of those acts and the use of the public highways pursuant to those acts.end insert

begin delete

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 February 1, 2017, and by each February 1 thereafter on the commission’s implementation of these requirements.

end delete
begin insert

This bill would specify activities to be undertaken by the commission to achieve these purposes. The bill would require the commission to assess its capabilities to carry out the specified activities and to report to the Legislature no later than January 1, 2017, which report would be required to contain an analysis of current capabilities and deficiencies, and recommendations to overcome any deficiencies identified.

end 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.

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.

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.

(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.

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.

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.

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.

(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.

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.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

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

P5    1

SECTION 1.  

(a) The Transportation Enforcement Branch of
2the Safety and Enforcement Division of the state’s Public Utilities
3Commission has regulatory oversight of various for-hire
4transportation carriers, including limousines, airport shuttles,
5charter buses, and moving companies. The Transportation
6Enforcement Branch administers licensing, enforces state law, and
7manages consumer complaints to ensure the reliable and safe
8transport of passengers and goods within the state.

9(b) The California State Auditor’s Report 2013-130 concluded
10 that the Transportation Enforcement Branch does not adequately
11ensure that passenger carriers operate safely. Among the numerous
12problems cited by the California State Auditor are that the branch
13does not have formal policies for dealing with complaints against
14carriers, it does not resolve complaints in a timely manner, it does
15not have adequate investigatory techniques, and it fails to properly
16account for fees paid by carriers. In addition, the California State
17Auditor concluded that without major improvements to its
18management processes, the branch has little ability to resolve its
19deficiencies.

20(c) While the commission is undertaking an internal process to
21implement the California State Auditor’s recommendations, it is
22in the public interest for the Legislature to further ensure that the
23Transportation Enforcement Branch improves its performance to
24ensure passenger safety.

begin delete
P6    1

SEC. 2.  

Section 309.8 is added to the Public Utilities Code, to
2read:

3

309.8.  

(a) The commission, in consultation with the
4Department of Human Resources, shall develop a comprehensive
5human resources plan for the Transportation Enforcement Branch
6of the Safety and Enforcement Division, which focuses on staff
7development, management practices, and leadership. The plan
8shall include policies to properly and adequately train new
9employees, provide proper and adequate continuous training, and
10retain staff and reduce high rates of staff turnover.

11(b) The commission shall implement a program to monitor the
12performance of the Transportation Enforcement Branch of the
13Safety and Enforcement Division to ensure that applications for
14permits and certificates are processed in a timely manner, ensure
15investigations are completed properly and in a timely manner, and
16ensure that the branch is taking appropriate enforcement actions.
17The program shall include, but shall not be limited to, the following
18performance measurements:

19(1) The average length of time it takes to process an application
20for a permit or certificate.

21(2) The number of complaints received and the average length
22of time it takes to resolve those complaints.

23(3) The number of investigations, stings, and other operations
24undertaken to prohibit the illegal operation of charter-party carriers
25of passengers, passenger stage corporations, and household goods
26carriers.

27(4) The average length of time it takes to complete an
28investigation and the disposition of the investigations completed.

29(5) A method to annually analyze fees assessed on charter-party
30carriers of passengers, passenger stage corporations, and household
31goods carriers to determine if those fees are fair and commensurate
32with services rendered.

33(c) (1) The commission shall develop a comprehensive strategy
34to detect, deter, and take enforcement actions against charter-party
35carriers of passengers, passenger stage corporations, and household
36goods carriers that are operating illegally. This strategy shall
37include steps to increase on-the-street enforcement of illegally
38operating charter-party carriers of passengers, passenger stage
39corporations, and household goods carriers and, to the extent
P7    1possible, the commission shall coordinate with state and local law
2enforcement on enforcement activities.

3(2) As part of the strategy, the commission shall include
4strike-force enforcement actions to be conducted at special events,
5including proms, awards, and sporting events, and a scheduled
6strategic, focused, enforcement timeline.

7(3) As part of the strategy, the commission shall establish a
8formal method for acknowledging and investigating consumer
9complaints regarding charter-party carriers of passengers.
10Acknowledgment shall include written acknowledgment of receipt
11of a complaint.

12(4) The strategy shall include steps to take enforcement actions
13against unpermitted, or illegally operating, charter-party carriers
14of passengers, passenger stage corporations, and household goods
15carriers that are advertising their services, either electronically or
16in print.

17(5) The commission shall make best efforts to coordinate with
18associations representing industries regulated by the Transportation
19Enforcement Branch to coordinate enforcement of illegal operators.

20(6) As part of the strategy, the commission shall detail how it
21will coordinate with the Board of Equalization to enforce the
22collection of penalty payments, the Department of Industrial
23Relations to enforce provisions related to workers’ compensation,
24and the Department of Motor Vehicles to enforce provisions related
25to vehicle insurance.

26(d) (1) The commission shall develop and implement a plan to
27improve technology capabilities to enhance customer service at
28the Transportation Enforcement Branch that allow for complete
29online application and renewal, vehicle registration, vehicle
30insurance compliance, and consumer complaints.

31(2) To the extent possible, the commission shall work to
32streamline the way charter-party carriers of passengers, passenger
33stage corporations, and household goods carriers submit
34information, reports, and applications. This shall include annual
35reports to the commission, quarterly revenue reports to the
36commission, and reports to the Department of the California
37Highway Patrol.

38(3) The commission shall ensure that during all normal business
39hours, commission staff at the Transportation Enforcement Branch
40is available by phone so that regulated carriers and those applying
P8    1for authority can easily contact a staff member to ask questions or
2obtain information.

3(e) The commission shall, on an annual basis, meet with industry
4associations regulated by the Transportation Enforcement Branch,
5to ensure that there are coordinated efforts to improve customer
6service and enforcement to halt illegal operators.

7(f) The commission shall develop a budget plan for the
8Transportation Enforcement Branch to ensure that revenues and
9expenditures are appropriately aligned. As part of the budget plan,
10the commission shall categorize revenues and expenditures by
11carrier type and shall also categorize which specific expenditures
12are for enforcement activities. The budget plan shall also include
13guidelines for maintaining a reasonable reserve for economic
14uncertainties.

15(g) (1) The commission shall report to the Legislature on
16implementation of this section no later than February 1, 2017, and
17by each February 1, thereafter.

18(2) A report to be submitted pursuant to this subdivision shall
19be submitted in compliance with Section 9795 of the Government
20Code.

end delete
21

begin deleteSEC. 3.end delete
22begin insertSEC. 2.end insert  

Section 1046 is added to the Public Utilities Code, to
23read:

24

1046.  

(a) For purposes of this section, “peace officer” means
25all of the following:

26(1) Any sheriff, undersheriff, or deputy sheriff, employed in
27that capacity, of a county; any chief of police of a city or chief,
28director, or chief executive officer of a consolidated municipal
29public safety agency that performs police functions; and any police
30officer, employed in that capacity and appointed by the chief of
31police or chief, director, or chief executive of a public safety
32agency, of a city.

33(2) An officer of the Department of the California Highway
34Patrol.

35(3) Any person regularly employed as an airport law
36enforcement officer by a city, county, or district operating the
37airport or by a joint powers agency, created pursuant to Article 1
38(commencing with Section 6500) of Chapter 5 of Division 7 of
39Title 1 of the Government Code, operating the airport, if the
40primary duty of the person is the enforcement of the law in or
P9    1about properties owned, operated, and administered by the
2employing agency or when performing necessary duties with
3respect to patrons, employees, and properties of the employing
4agency, in or about the properties owned, operated, and
5administered by the employing agency.

6(b) A peace officer may, with respect to a passenger stage
7corporation, enforce and assist in the enforcement of Sections 2110
8and 2112, resulting from a violation of Section 1031, 1041, or
9 1045, or more than one of those sections. A peace officer may
10additionally enforce and assist in the enforcement of Sections
111034.5 and 2119. In any case in which an arrest authorized by this
12subdivision is made for an offense declared to be a misdemeanor,
13and the person arrested does not demand to be taken before a
14magistrate, the arresting peace officer may, instead of taking such
15person before a magistrate, follow the procedure prescribed by
16Chapter 5C (commencing with Section 853.5) of Title 3 of Part 2
17of the Penal Code. The provisions of that chapter shall thereafter
18apply with reference to any proceeding based upon the issuance
19of a citation pursuant to this authority.

20(c) A peace officer may impound a vehicle operated by a
21passenger stage corporation pursuant to Section 14602.9 of the
22Vehicle Code if the peace officer determines that any of the
23following violations occurred while the driver was operating the
24vehicle:

25(1) The driver was operating the vehicle when the passenger
26stage corporation did not have a certificate of public convenience
27and necessity issued by the commission as required pursuant to
28this article.

29(2) The driver was operating the vehicle when the operating
30rights or certificate of public convenience and necessity of a
31passenger stage corporation was suspended, canceled, or revoked
32pursuant to Section 1033.5, 1033.7, or 1045.

33(3) The driver was operating the vehicle without having a current
34and valid driver’s license of the proper class.

35(d) The commission shall coordinate enforcement of this section
36with those peace officers described in subdivision (a), including
37undertaking both of the following:

38(1) Educational outreach to ensure that those peace officers are
39aware of the requirements of Sections 1031, 1034.5, 1041, 1045,
402110, 2112, and 2119.

P10   1(2) Establishing lines of communication to ensure that the
2commission is notified if an action is commenced to enforce the
3requirements of those sections specified in subdivision (b), so that
4the commission may take appropriate action to enforce the fine
5and penalty provisions of Chapter 11 (commencing with Section
62100).

7(e) The Legislature finds and declares that this section is
8intended to facilitate and enhance the commission’s performance
9of its functions pursuant to Section 2101 and not diminish the
10commission’s authority or responsibility pursuant to that section.

11begin insert

begin insertSEC. 3.end insert  

end insert

begin insertSection 5102 of the end insertbegin insertPublic Utilities Codeend insertbegin insert is amended
12to read:end insert

13

5102.  

begin insert(a)end insertbegin insertend insertThe use of the public highways for the transportation
14of used household goods and personal effects for compensation is
15a business affected with a public interest. It is the purpose of this
16chapter to preserve for the public the full benefit and use of public
17highways consistent with the needs of commerce without
18unnecessary congestion or wear and tear upon those highways; to
19secure to the people just, reasonable, and nondiscriminatory rates
20for transportation by carriers operating upon the highways; to
21secure full and unrestricted flow of traffic by motor carriers over
22the highways that will adequately meet reasonable public demands
23by providing for the regulation of rates of all carriers so that
24adequate and dependable service by all necessary carriers shall be
25maintained and the full use of the highways preserved to the public;
26and to promote fair dealing and ethical conduct in the rendition of
27services involving or incident to the transportation of household
28goods and personal effects.

begin insert

29(b) To achieve the purposes of subdivision (a) the commission
30shall do all of the following:

end insert
begin insert

31(1) Prioritize the timely processing of applications and hold
32“application workshops” for potential applicants around the state.

end insert
begin insert

33(2) Enable electronic filing of applications, reports, and fee
34payments.

end insert
begin insert

35(3) Dedicate staff to answering telephone calls, mailings, and
36 electronic inquiries from carriers.

end insert
begin insert

37(4) Prioritize the timely processing of consumer complaints.

end insert
begin insert

38(5) Implement electronic case tracking of complaints and their
39disposition.

end insert
begin insert

P11   1(6) Implement a process for appropriate and timely enforcement
2against illegally operating carriers, including by performing
3staff-driven investigations and performing enforcement through
4sting operations and other forms of presence in the field.

end insert
begin insert

5(7) Maintain relationships with, and implement outreach and
6education programs to, local law enforcement, district attorneys,
7and airports.

end insert
begin insert

8(8) Meet with carrier trade associations at least annually.

end insert
begin insert

9(9) Implement a consolidated case tracking system that
10integrates each of the transportation program core functions and
11data collection, administrative compliance details, complaints,
12and investigations.

end insert
begin insert

13(c) (1) The commission shall assess its capabilities to carry out
14the activities in subdivision (b) and report to the Legislature no
15later than January 1, 2017. The report shall contain an analysis
16of current capabilities and deficiencies, and recommendations to
17overcome any deficiencies identified.

end insert
begin insert

18(2) The report shall be submitted in compliance with Section
199795 of the Government Code.

end insert
begin insert

20(3) Pursuant to Section 10231.5 of the Government Code, this
21subdivision is inoperative on January 1, 2021.

end insert
22

SEC. 4.  

Section 5317.5 of the Public Utilities Code is amended
23to read:

24

5317.5.  

(a) The commission shall ensure that this chapter is
25enforced and obeyed, and that violations thereof are promptly
26prosecuted and that penalty moneys due to the state are recovered
27and collected, and to this end it may sue in the name of the people
28of the State of California. Upon the request of the commission,
29the Attorney General or the district attorney of the proper county
30or city and county may aid in any investigation, hearing, or trial
31had under this chapter.

32(b) For purposes of this section, “peace officer” means all of
33the following:

34(1) Any sheriff, undersheriff, or deputy sheriff, employed in
35that capacity, of a county; any chief of police of a city or chief,
36director, or chief executive officer of a consolidated municipal
37public safety agency that performs police functions; and any police
38officer, employed in that capacity and appointed by the chief of
39police or chief, director, or chief executive of a public safety
40agency, of a city.

P12   1(2) An officer of the Department of the California Highway
2Patrol.

3(c) A peace officer may enforce and assist in the enforcement
4of Sections 5311 and 5312, resulting from a violation of Section
55132, 5133, 5140, or 5286, or more than one of those sections. A
6peace officer may additionally enforce and assist in the enforcement
7of Sections 5311.3 and 5314.5. In any case in which an arrest
8authorized by this subdivision is made for an offense declared to
9be a misdemeanor, and the person arrested does not demand to be
10taken before a magistrate, the arresting peace officer may, instead
11of taking such person before a magistrate, follow the procedure
12prescribed by Chapter 5C (commencing with Section 853.5) of
13Title 3 of Part 2 of the Penal Code. The provisions of that chapter
14shall thereafter apply with reference to any proceeding based upon
15the issuance of a citation pursuant to this authority.

16(d) The commission shall coordinate enforcement of this section
17with those peace officers described in subdivision (a), including
18undertaking both of the following:

19(1) Educational outreach to ensure that those peace officers are
20aware of the requirements of Sections 5132, 5133, 5140, 5286,
215311, 5311.3, 5312, and 5314.5.

22(2) Establishing lines of communication to ensure that the
23commission is notified if an action is commenced to enforce the
24requirements of those sections specified in subdivision (c), so that
25the commission may take appropriate action to enforce the fine
26and penalty provisions of this article.

27(e) The Attorney General, a district attorney of the proper county
28or city and county, or a city attorney may institute and prosecute
29actions or proceedings for the violation of any law committed in
30connection with, or arising from, a transaction involving the
31transportation of household goods and personal effects.

32begin insert

begin insertSEC. 5.end insert  

end insert

begin insertSection 5352 of the end insertbegin insertPublic Utilities Codeend insertbegin insert is amended
33to read:end insert

34

5352.  

begin insert(a)end insertbegin insertend insertThe use of the public highways for the transportation
35of passengers for compensation is a business affected with a public
36interest. It is the purpose of this chapter to preserve for the public
37full benefit and use of public highways consistent with the needs
38of commerce without unnecessary congestion or wear and tear
39upon the highways; to secure to the people adequate and
40dependable transportation by carriers operating upon the highways;
P13   1to secure full and unrestricted flow of traffic by motor carriers
2over the highways which will adequately meet reasonable public
3demands by providing for the regulation of all transportation
4agencies with respect to accident indemnity so that adequate and
5dependable service by all necessary transportation agencies shall
6be maintained and the full use of the highways preserved to the
7public; and to promote carrier and public safety through its safety
8enforcement regulations.

begin insert

9(b) To achieve the purposes of subdivision (a) the commission
10shall do all of the following:

end insert
begin insert

11(1) Prioritize the timely processing of applications and hold
12“application workshops” for potential applicants around the state.

end insert
begin insert

13(2) Enable electronic filing of applications, reports, and fee
14payments.

end insert
begin insert

15(3) Dedicate staff to answering telephone calls, mailings, and
16electronic inquiries from carriers.

end insert
begin insert

17(4) Prioritize the timely processing of consumer complaints.

end insert
begin insert

18(5) Implement electronic case tracking of complaints and their
19disposition.

end insert
begin insert

20(6) Implement a process for appropriate and timely enforcement
21against illegally operating carriers, including by performing
22staff-driven investigations and performing enforcement through
23sting operations and other forms of presence in the field.

end insert
begin insert

24(7) Maintain relationships with, and implement outreach and
25education programs to, local law enforcement, district attorneys,
26and airports.

end insert
begin insert

27(8) Meet with carrier trade associations at least annually.

end insert
begin insert

28(9) Implement a consolidated case tracking system that
29integrates each of the transportation program core functions and
30data collection, administrative compliance details, complaints,
31and investigations.

end insert
begin insert

32(c) (1) The commission shall assess its capabilities to carry out
33the activities in subdivision (b) and report to the Legislature no
34later than January 1, 2017. The report shall contain an analysis
35of current capabilities and deficiencies, and recommendations to
36overcome any deficiencies identified.

end insert
begin insert

37(2) The report shall be submitted in compliance with Section
389795 of the Government Code.

end insert
begin insert

39(3) Pursuant to Section 10231.5 of the Government Code, this
40subdivision is inoperative on January 1, 2021.

end insert
P14   1

begin deleteSEC. 5.end delete
2begin insertSEC. 6.end insert  

Section 5387 of the Public Utilities Code is amended
3to read:

4

5387.  

(a) It is unlawful for the owner of a charter-party carrier
5of passengers to permit the operation of a vehicle upon a public
6highway for compensation without (1) having obtained from the
7commission a certificate or permit pursuant to this chapter, (2)
8having complied with the vehicle identification requirements of
9Section 5385 or 5385.5, and (3) having complied with the accident
10liability protection requirements of Section 5391.

11(b) A person who drives a bus for a charter-party carrier without
12having a current and valid driver’s license of the proper class, a
13passenger vehicle endorsement, or the required certificate shall be
14suspended from driving a bus of any kind, including, but not
15limited to, a bus, schoolbus, school pupil activity bus, or transit
16bus, with passengers for a period of five years pursuant to Section
1713369 of the Vehicle Code.

18(c) (1) A charter-party carrier shall have its authority to operate
19as a charter-party carrier permanently revoked by the commission
20or be permanently barred from receiving a permit or certificate
21from the commission if it commits any of the following acts:

22(A) Operates a bus without having been issued a permit or
23certificate from the commission.

24(B) Operates a bus with a permit that was suspended by the
25commission pursuant to Section 5378.5.

26(C) Commits three or more liability insurance violations within
27a two-year period for which it has been cited.

28(D) Operates a bus with a permit that was suspended by the
29commission during a period that the charter-party carrier’s liability
30insurance lapsed for which it has been cited.

31(E) Knowingly employs a busdriver who does not have a current
32and valid driver’s license of the proper class, a passenger vehicle
33endorsement, or the required certificate to drive a bus.

34(F) Has one or more buses improperly registered with the
35Department of Motor Vehicles.

36(2) The commission shall not issue a new permit or certificate
37to operate as a charter-party carrier if any officer, director, or owner
38of that charter-party carrier was an officer, director, or owner of
39a charter-party carrier that had its authority to operate as a
40charter-party carrier permanently revoked by the commission or
P15   1that was permanently barred from receiving a permit or certificate
2from the commission pursuant to this subdivision.

3(d) A peace officer, as defined in Section 5417.5, may impound
4a vehicle of a charter-party carrier of passengers for 30 days
5pursuant to Section 14602.9 of the Vehicle Code if the peace officer
6determines that any of the following violations occurred while the
7driver was operating the vehicle of a charter-party carrier:

8(1) The driver was operating the vehicle of a charter-party carrier
9of passengers when the charter-party carrier of passengers did not
10have a permit or certificate issued by the commission.

11(2) The driver was operating the vehicle of a charter-party carrier
12of passengers when the charter-party carrier of passengers was
13operating with a suspended permit or certificate from the
14commission.

15(3) The driver was operating the vehicle of a charter-party carrier
16of passengers without having a current and valid driver’s license
17of the proper class, a passenger vehicle endorsement, or the
18required certificate.

19

begin deleteSEC. 6.end delete
20begin insertSEC. 7.end insert  

Section 5411.5 of the Public Utilities Code is amended
21to read:

22

5411.5.  

(a) Whenever a peace officer, as defined in Section
235417.5, arrests a person for operation of a vehicle of a charter-party
24carrier of passengers without a valid certificate or permit, the peace
25officer may impound and retain possession of the vehicle.

26(b) Whenever a peace officer, as defined in Section 5417.5,
27arrests a person for operating a vehicle of a charter-party carrier
28of passengers as a taxicab in violation of an ordinance or resolution
29of a city, county, or city and county, the peace officer may impound
30and retain possession of the vehicle.

31(c) If the vehicle is seized from a person who is not the owner
32of the vehicle, the impounding authority shall immediately give
33notice to the owner by first-class mail.

34(d) The vehicle shall immediately be returned to the owner if
35the infraction or violation is not prosecuted or is dismissed, the
36owner is found not guilty of the offense, or it is determined that
37the vehicle was used in violation of Section 5411 without the
38knowledge and consent of the owner. The vehicle shall be returned
39to the owner upon payment of any fine ordered by the court. If the
40vehicle is seized due to a violation of a person other than the owner
P16   1of the vehicle, the vehicle shall be returned to the owner after all
2impoundment fees are paid. After the expiration of six weeks from
3the final disposition of the criminal case, unless the owner is in
4the process of making payments to the court, the impounding
5authority may deal with the vehicle as lost or abandoned property
6under Section 1411 of the Penal Code.

7(e) At any time, a person may make a motion in superior court
8for the immediate return of the vehicle on the ground that there
9was no probable cause to seize it or that there is some other good
10cause, as determined by the court, for the return of the vehicle. A
11proceeding under this section is a limited civil case.

12(f) No peace officer, however, may impound any vehicle owned
13or operated by a nonprofit organization exempt from taxation
14pursuant to Section 501(c)(3) of the Internal Revenue Code which
15serves youth or senior citizens and provides transportation
16incidental to its programs or services or a rented motor vehicle
17that is being operated by a hired driver of a charter-party carrier
18of passengers that is providing hired driver service.

19

begin deleteSEC. 7.end delete
20begin insertSEC. 8.end insert  

Section 5417.5 is added to the Public Utilities Code,
21to read:

22

5417.5.  

(a) The commission shall ensure that this chapter is
23enforced and obeyed, and that violations thereof are promptly
24prosecuted and that penalty moneys due to the state are recovered
25and collected, and to this end it may sue in the name of the people
26of the State of California. Upon the request of the commission,
27the Attorney General or the district attorney of the proper county
28or city and county may aid in any investigation, hearing, or trial
29under this chapter. The Attorney General, a district attorney of the
30proper county or city and county, or a city attorney may institute
31and prosecute actions or proceedings for the violation of any law
32committed in connection with, or arising from, a transaction
33involving a charter-party carrier of passengers.

34(b) For purposes of this section, “peace officer” means all of
35the following:

36(1) Any sheriff, undersheriff, or deputy sheriff, employed in
37that capacity, of a county; any chief of police of a city or chief,
38director, or chief executive officer of a consolidated municipal
39public safety agency that performs police functions; and any police
40officer, employed in that capacity and appointed by the chief of
P17   1police or chief, director, or chief executive of a public safety
2agency, of a city.

3(2) An officer of the Department of the California Highway
4Patrol.

5(3) Any person regularly employed as an airport law
6enforcement officer by a city, county, or district operating the
7airport or by a joint powers agency, created pursuant to Article 1
8(commencing with Section 6500) of Chapter 5 of Division 7 of
9Title 1 of the Government Code, operating the airport, if the
10primary duty of the person is the enforcement of the law in or
11about properties owned, operated, and administered by the
12employing agency or when performing necessary duties with
13respect to patrons, employees, and properties of the employing
14agency, in or about the properties owned, operated, and
15administered by the employing agency.

16(c) A peace officer may enforce and assist in the enforcement
17of Sections 5411 and 5412 resulting from a violation of Section
185371, 5379, 5385, 5385.7, or 5387, or more than one of those
19sections. A peace officer may additionally enforce and assist in
20the enforcement of Sections 5411.3 and 5414.5. In any case in
21which an arrest authorized by this subdivision is made for an
22offense declared to be a misdemeanor, and the person arrested
23does not demand to be taken before a magistrate, the arresting
24peace officer may, instead of taking such person before a
25magistrate, follow the procedure prescribed by Chapter 5C
26(commencing with Section 853.5) of Title 3 of Part 2 of the Penal
27Code. The provisions of that chapter shall thereafter apply with
28reference to any proceeding based upon the issuance of a citation
29pursuant to this authority.

30(d) The commission shall coordinate enforcement of this section
31with those peace officers described in subdivision (b), including
32undertaking both of the following:

33(1) Educational outreach to ensure that those peace officers are
34 aware of the requirements of Sections 5371, 5379, 5385, 5385.7,
355387, 5411, 5411.3, 5412, and 5414.5.

36(2) Establishing lines of communication to ensure that the
37commission is notified if an action is commenced to enforce the
38requirements of those sections specified in subdivision (c), so that
39the commission may take appropriate action to enforce the fine
40and penalty provisions of this article.

P18   1(e) The Attorney General, a district attorney of the proper county
2or city and county, or a city attorney may institute and prosecute
3actions or proceedings for the violation of any law committed in
4connection with, or arising from, a transaction involving the
5transportation of passengers by a charter-party carrier of
6passengers.

7

begin deleteSEC. 8.end delete
8begin insertSEC. 9.end insert  

Section 14602.9 of the Vehicle Code is amended to
9read:

10

14602.9.  

(a) For purposes of this section, “peace officer” means
11all of the following:

12(1) An officer of the Department of the California Highway
13Patrol.

14(2) Any sheriff, undersheriff, or deputy sheriff, employed in
15that capacity, of a county; any chief of police of a city or chief,
16director, or chief executive officer of a consolidated municipal
17public safety agency that performs police functions; and any police
18officer, employed in that capacity and appointed by the chief of
19police or chief, director, or chief executive of a public safety
20agency, of a city.

21(3) Any person regularly employed as an airport law
22enforcement officer by a city, county, or district operating the
23airport or by a joint powers agency, created pursuant to Article 1
24(commencing with Section 6500) of Chapter 5 of Division 7 of
25Title 1 of the Government Code, operating the airport, if the
26primary duty of the person is the enforcement of the law in or
27about properties owned, operated, and administered by the
28employing agency or when performing necessary duties with
29respect to patrons, employees, and properties of the employing
30agency, in or about the properties owned, operated, and
31administered by the employing agency.

32(b) A peace officer may impound a vehicle of a charter-party
33carrier for 30 days if the officer determines that any of the
34following violations occurred while the driver was operating the
35vehicle of the charter-party carrier:

36(1) The driver was operating the vehicle of a charter-party carrier
37when the charter-party carrier did not have a permit or certificate
38issued by the Public Utilities Commission, pursuant to Section
395375 of the Public Utilities Code.

P19   1(2) The driver was operating the vehicle of a charter-party carrier
2when the charter-party carrier was operating with a suspended
3permit or certificate from the Public Utilities Commission.

4(3) The driver was operating the vehicle of a charter-party carrier
5without having a current and valid driver’s license of the proper
6class, a passenger vehicle endorsement, or the required certificate.

7(c) A peace officer may impound a vehicle belonging to a
8passenger stage corporation for 30 days if the officer determines
9any of the following violations occurred while the driver was
10operating the vehicle:

11(1) The driver was operating the vehicle when the passenger
12stage corporation did not have a certificate of public convenience
13and necessity issued by the Public Utilities Commission as required
14pursuant to Article 2 (commencing with Section 1031) of Chapter
155 of Part 1 of Division 1 of the Public Utilities Code.

16(2) The driver was operating the vehicle when the operating
17rights or certificate of public convenience and necessity of a
18passenger stage corporation was suspended, canceled, or revoked
19pursuant to Section 1033.5, 1033.7, or 1045 of the Public Utilities
20Code.

21(3) The driver was operating the vehicle without having a current
22and valid driver’s license of the proper class.

23(d) Within two working days after impoundment, the
24impounding agency shall send a notice by certified mail, return
25receipt requested, to the legal owner of the vehicle, at the address
26obtained from the department, informing the owner that the vehicle
27has been impounded. Failure to notify the legal owner within two
28working days shall prohibit the impounding agency from charging
29for more than 15 day’s impoundment when the legal owner
30redeems the impounded vehicle. The impounding agency shall
31maintain a published telephone number that provides information
3224 hours a day regarding the impoundment of vehicles and the
33rights of a registered owner to request a hearing.

34(e) The registered and legal owner of a vehicle that is removed
35and seized under subdivision (b) or (c) or his or her agent shall be
36provided the opportunity for a storage hearing to determine the
37validity of, or consider any mitigating circumstances attendant to,
38the storage, in accordance with Section 22852.

P20   1(f) (1) The impounding agency shall release the vehicle to the
2registered owner or his or her agent prior to the end of the
3impoundment period under any of the following circumstances:

4(A) When the vehicle is a stolen vehicle.

5(B) When the vehicle is subject to bailment and is driven by an
6unlicensed employee of a business establishment, including a
7parking service or repair garage.

8(C) When, for a charter-party carrier of passengers, the driver
9of the vehicle is not the sole registered owner of the vehicle and
10the vehicle is being released to another registered owner of the
11vehicle who agrees not to allow the driver to use the vehicle until
12after the end of the impoundment period and the charter-party
13carrier has been issued a valid permit from the Public Utilities
14Commission, pursuant to Section 5375 of the Public Utilities Code.

15(D) When, for a passenger stage corporation, the driver of the
16vehicle is not the sole registered owner of the vehicle and the
17vehicle is being released to another registered owner of the vehicle
18who agrees not to allow the driver to use the vehicle until after the
19end of the impoundment period and the passenger stage corporation
20has been issued a valid certificate of public convenience and
21necessity by the Public Utilities Commission, pursuant to Article
222 (commencing with Section 1031) of Chapter 5 of Part 1 of
23Division 1 of the Public Utilities Code.

24(2) A vehicle shall not be released pursuant to this subdivision
25without presentation of the registered owner’s or agent’s currently
26valid driver’s license to operate the vehicle and proof of current
27vehicle registration, or upon order of a court.

28(g) The registered owner or his or her agent is responsible for
29all towing and storage charges related to the impoundment, and
30any administrative charges authorized under Section 22850.5.

31(h) A vehicle removed and seized under subdivision (b) or (c)
32shall be released to the legal owner of the vehicle or the legal
33owner’s agent prior to the end of the impoundment period if all of
34the following conditions are met:

35(1) The legal owner is a motor vehicle dealer, bank, credit union,
36acceptance corporation, or other licensed financial institution
37legally operating in this state, or is another person who is not the
38registered owner and holds a security interest in the vehicle.

39(2) The legal owner or the legal owner’s agent pays all towing
40and storage fees related to the seizure of the vehicle. A lien sale
P21   1processing fee shall not be charged to the legal owner who redeems
2the vehicle prior to the 10th day of impoundment. The impounding
3authority or any person having possession of the vehicle shall not
4collect from the legal owner of the type specified in paragraph (1),
5or the legal owner’s agent, any administrative charges imposed
6pursuant to Section 22850.5 unless the legal owner voluntarily
7requested a poststorage hearing.

8(3) (A) The legal owner or the legal owner’s agent presents
9either lawful foreclosure documents or an affidavit of repossession
10for the vehicle, and a security agreement or title showing proof of
11legal ownership for the vehicle. All presented documents may be
12originals, photocopies, or facsimile copies, or may be transmitted
13electronically. The impounding agency shall not require a
14document to be notarized. The impounding agency may require
15the agent of the legal owner to produce a photocopy or facsimile
16copy of its repossession agency license or registration issued
17pursuant to Chapter 11 (commencing with Section 7500) of
18Division 3 of the Business and Professions Code, or to demonstrate,
19to the satisfaction of the impounding agency, that the agent is
20exempt from licensure pursuant to Section 7500.2 or 7500.3 of the
21Business and Professions Code.

22(B) Administrative costs authorized under subdivision (a) of
23Section 22850.5 shall not be charged to the legal owner of the type
24 specified in paragraph (1), who redeems the vehicle unless the
25legal owner voluntarily requests a poststorage hearing. A city,
26county, or state agency shall not require a legal owner or a legal
27owner’s agent to request a poststorage hearing as a requirement
28for release of the vehicle to the legal owner or the legal owner’s
29agent. The impounding agency shall not require any documents
30other than those specified in this paragraph. The impounding
31agency shall not require any documents to be notarized.

32(C) As used in this paragraph, “foreclosure documents” means
33an “assignment” as that term is defined in subdivision (o) of
34Section 7500.1 of the Business and Professions Code.

35(i) (1) A legal owner or the legal owner’s agent who obtains
36release of the vehicle pursuant to subdivision (h) may not release
37the vehicle to the registered owner of the vehicle or any agents of
38the registered owner, unless the registered owner is a rental car
39agency, until after the termination of the impoundment period.

P22   1(2) The legal owner or the legal owner’s agent shall not
2relinquish the vehicle to the registered owner until the registered
3owner or that owner’s agent presents his or her valid driver’s
4license or valid temporary driver’s license to the legal owner or
5the legal owner’s agent. The legal owner or the legal owner’s agent
6shall make every reasonable effort to ensure that the license
7presented is valid.

8(3) Prior to relinquishing the vehicle, the legal owner may
9require the registered owner to pay all towing and storage charges
10related to the impoundment and any administrative charges
11authorized under Section 22850.5 that were incurred by the legal
12owner in connection with obtaining custody of the vehicle.

13(j) (1) A vehicle removed and seized under subdivision (b) or
14(c) shall be released to a rental agency prior to the end of the
15impoundment period if the agency is either the legal owner or
16registered owner of the vehicle and the agency pays all towing and
17storage fees related to the seizure of the vehicle.

18(2) The owner of a rental vehicle that was seized under this
19section may continue to rent the vehicle upon recovery of the
20vehicle. However, the rental agency shall not rent another vehicle
21to the driver of the vehicle that was seized until the impoundment
22period has expired.

23(3) The rental agency may require the person to whom the
24vehicle was rented to pay all towing and storage charges related
25to the impoundment and any administrative charges authorized
26under Section 22850.5 that were incurred by the rental agency in
27connection with obtaining custody of the vehicle.

28(k) Notwithstanding any other provision of this section, the
29registered owner, and not the legal owner, shall remain responsible
30for any towing and storage charges related to the impoundment,
31any administrative charges authorized under Section 22850.5, and
32any parking fines, penalties, and administrative fees incurred by
33the registered owner.

34(l) The impounding agency is not liable to the registered owner
35for the improper release of the vehicle to the legal owner or the
36legal owner’s agent provided the release complies with this section.

37(m) For the purposes of this section, a “charter-party carrier”
38means a charter-party carrier of passengers as defined by Section
395360 of the Public Utilities Code.

P23   1(n) For purposes of this section, a “passenger stage corporation”
2means a passenger stage corporation as defined by Section 226 of
3the Public Utilities Code.



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