Amended in Assembly July 16, 2015

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 Sections 5102, 5317.5, 5352,begin delete 5387, and 5411.5end deletebegin insert 5359, and 5387end insert of, and to add Sections 1046 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. 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.

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.

(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,begin delete defined to include sheriffs, police officers, CHP officers, and airport law enforcement officers,end deletebegin insert as defined,end insert 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 withbegin delete thoseend delete peace officers through educational outreach and establishing lines ofbegin delete communicationsend deletebegin insert communicationend insert 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,begin delete defined to include sheriffs, police officers, and airport law enforcement officers, in addition to CHP officers,end deletebegin insert as defined,end insert to impoundbegin delete any vehicleend deletebegin insert a bus or limousine, as defined,end insert of a charter-party carrier ofbegin delete passengersend deletebegin insert passengers, except as specified,end insert for 30 days in those circumstances. The bill would revise the Vehicle Code to authorize a peace officer, identically defined, to impoundbegin delete any vehicleend deletebegin insert a bus or limousineend insert of a charter-party carrier ofbegin delete passengersend deletebegin insert passengers, except as specified,end insert for 30 days in those circumstances and authorize a peace officer to impound abegin delete vehicleend deletebegin insert bus or limousineend insert belonging to a passenger stage corporation for 30 days if the officer determines (A) the driver was operating thebegin delete vehicleend deletebegin insert bus or limousineend insert 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 thebegin delete vehicleend deletebegin insert bus or limousineend insert 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 thebegin delete vehicleend deletebegin insert bus or limousineend insert without having a current and valid driver’s license of the proper class.

begin delete

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 delete
begin delete

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 delete

(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,begin delete defined to include sheriffs, police officers, and CHP officers,end deletebegin insert as defined,end insert 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 withbegin delete thoseend delete peace officers through educational outreach and establishing lines ofbegin delete communicationsend deletebegin insert communicationend insert 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.

25

SEC. 2.  

Section 1046 is added to the Public Utilities Code, to
26read:

27

1046.  

(a) For purposes of this section,begin delete “peace officer” means
28all of the following:end delete
begin insert the following terms have the following
29meanings:end insert

begin delete

30(1) Any sheriff, undersheriff, or deputy sheriff, employed in
31that capacity, of a county; any chief of police of a city or chief,
32director, or chief executive officer of a consolidated municipal
33public safety agency that performs police functions; and any police
34officer, employed in that capacity and appointed by the chief of
P6    1police or chief, director, or chief executive of a public safety
2agency, of a city.

end delete
begin delete

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

end delete
begin delete

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.

end delete
begin insert

16(1) “Bus” means a vehicle designed, used, or maintained for
17carrying more than 10 persons, including the driver, which is used
18to transport persons for compensation or profit.

end insert
begin insert

19(2) “Limousine” means any sedan or sport utility vehicle, of
20either standard or extended length, with a seating capacity of not
21more than 10 passengers including the driver, used in the
22transportation of passengers for hire on a prearranged basis within
23this state, and includes a modified limousine as defined in Section
241042.1.

end insert
begin insert

25(3) “Peace officer” means a person who is designated as a
26peace officer pursuant to Chapter 4.5 (commencing with Section
27830) of Title 3 of Part 2 of the Penal Code.

end insert

28(b) A peace officer may, with respect to a passenger stage
29corporation, enforce and assist in the enforcement of Sections 2110
30and 2112, resulting from a violation of Section 1031, 1041, or
31 1045, or more than one of those sections. A peace officer may
32additionally enforce and assist in the enforcement of Sections
331034.5 and 2119. In any case in which an arrest authorized by this
34subdivision is made for an offense declared to be a misdemeanor,
35and the person arrested does not demand to be taken before a
36magistrate, the arresting peace officer may, instead of taking such
37person before a magistrate, follow the procedure prescribed by
38Chapter 5C (commencing with Section 853.5) of Title 3 of Part 2
39of the Penal Code. The provisions of that chapter shall thereafter
P7    1apply with reference to any proceeding based upon the issuance
2of a citation pursuant to this authority.

3(c) A peace officer may impound abegin delete vehicleend deletebegin insert bus or limousineend insert
4 operated by a passenger stage corporation pursuant to Section
514602.9 of the Vehicle Code if the peace officer determines that
6any of the following violations occurred while the driver was
7operating the vehicle:

8(1) The driver was operating thebegin delete vehicleend deletebegin insert bus or limousineend insert when
9the passenger stage corporation did not have a certificate of public
10convenience and necessity issued by the commission as required
11pursuant to this article.

12(2) The driver was operating thebegin delete vehicleend deletebegin insert bus or limousineend insert when
13the operating rights or certificate of public convenience and
14necessity of a passenger stage corporation was suspended, canceled,
15or revoked pursuant to Section 1033.5, 1033.7, or 1045.

16(3) The driver was operating thebegin delete vehicleend deletebegin insert bus or limousineend insert
17 without having a current and valid driver’s license of the proper
18class.

19(d) The commission shall coordinate enforcement of this section
20with those peace officersbegin delete described in subdivision (a),end deletebegin insert likely to be
21involved in enforcing this section,end insert
including undertaking both of
22the following:

23(1) Educational outreach to ensure that those peace officers are
24aware of the requirements of Sections 1031, 1034.5, 1041, 1045,
252110, 2112, and 2119.

26(2) Establishing lines of communication to ensure that the
27commission is notified if an action is commenced to enforce the
28requirements of those sections specified in subdivision (b), so that
29the commission may take appropriate action to enforce the fine
30and penalty provisions of Chapter 11 (commencing with Section
312100).

32(e) The Legislature finds and declares that this section is
33intended to facilitate and enhance the commission’s performance
34of its functions pursuant to Section 2101 and not diminish the
35commission’s authority or responsibility pursuant to that section.

begin insert

36(f) This section does not authorize the impoundment of privately
37owned personal vehicles nor the impoundment of vehicles used in
38transportation for compensation by charter-party carriers of
39passengers that are not required to carry individual permits.

end insert
P8    1

SEC. 3.  

Section 5102 of the Public Utilities Code is amended
2to read:

3

5102.  

(a) The use of the public highways for the transportation
4of used household goods and personal effects for compensation is
5a business affected with a public interest. It is the purpose of this
6chapter to preserve for the public the full benefit and use of public
7highways consistent with the needs of commerce without
8unnecessary congestion or wear and tear upon those highways; to
9secure to the people just, reasonable, and nondiscriminatory rates
10for transportation by carriers operating upon the highways; to
11secure full and unrestricted flow of traffic by motor carriers over
12the highways that will adequately meet reasonable public demands
13by providing for the regulation of rates of all carriers so that
14adequate and dependable service by all necessary carriers shall be
15maintained and the full use of the highways preserved to the public;
16and to promote fair dealing and ethical conduct in the rendition of
17services involving or incident to the transportation of household
18goods and personal effects.

19(b) To achieve the purposes of subdivision (a) the commission
20shall do all of the following:

21(1) Prioritize the timely processing of applications and hold
22“application workshops” for potential applicants around the state.

23(2) Enable electronic filing of applications, reports, and fee
24payments.

25(3) Dedicate staff to answering telephone calls, mailings, and
26 electronic inquiries from carriers.

27(4) Prioritize the timely processing of consumer complaints.

28(5) Implement electronic case tracking of complaints and their
29disposition.

30(6) Implement a process for appropriate and timely enforcement
31against illegally operating carriers, including by performing
32staff-driven investigations and performing enforcement through
33sting operations and other forms of presence in the field.

34(7) Maintain relationships with, and implement outreach and
35education programs to, local law enforcement, district attorneys,
36and airports.

37(8) Meet with carrier trade associations at least annually.

38(9) Implement a consolidated case tracking system that integrates
39each of the transportation program core functions and data
P9    1collection, administrative compliance details, complaints, and
2investigations.

3(c) (1) The commission shall assess its capabilities to carry out
4the activities in subdivision (b) and report to the Legislature no
5later than January 1, 2017. The report shall contain an analysis of
6current capabilities and deficiencies, and recommendations to
7overcome any deficiencies identified.

8(2) The report shall be submitted in compliance with Section
99795 of the Government Code.

10(3) Pursuant to Section 10231.5 of the Government Code, this
11subdivision is inoperative on January 1, 2021.

12

SEC. 4.  

Section 5317.5 of the Public Utilities Code is amended
13to read:

14

5317.5.  

(a) The commission shall ensure that this chapter is
15enforced and obeyed, and that violations thereof are promptly
16prosecuted and that penalty moneys due to the state are recovered
17and collected, and to this end it may sue in the name of the people
18of the State of California. Upon the request of the commission,
19the Attorney General or the district attorney of the proper county
20or city and county may aid in any investigation, hearing, or trial
21had under this chapter.

22(b) For purposes of this section, “peace officer” meansbegin delete all of
23the following:end delete
begin insert a person designated as a peace officer pursuant to
24Chapter 4.5 (commencing with Section 830) of Title 3 of Part 2 of
25the Penal Code.end insert

begin delete

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.

end delete

35(c) A peace officer may enforce and assist in the enforcement
36of Sections 5311 and 5312, resulting from a violation of Section
375132, 5133, 5140, or 5286, or more than one of those sections. A
38peace officer may additionally enforce and assist in the enforcement
39of Sections 5311.3 and 5314.5. In any case in which an arrest
40authorized by this subdivision is made for an offense declared to
P10   1be a misdemeanor, and the person arrested does not demand to be
2taken before a magistrate, the arresting peace officer may, instead
3of taking such person before a magistrate, follow the procedure
4prescribed by Chapter 5C (commencing with Section 853.5) of
5Title 3 of Part 2 of the Penal Code. The provisions of that chapter
6shall thereafter apply with reference to any proceeding based upon
7the issuance of a citation pursuant to this authority.

8(d) The commission shall coordinate enforcement of this section
9with those peace officersbegin delete described in subdivision (a),end deletebegin insert likely to be
10involved in enforcing this section,end insert
including undertaking both of
11the following:

12(1) Educational outreach to ensure that those peace officers are
13aware of the requirements of Sections 5132, 5133, 5140, 5286,
145311, 5311.3, 5312, and 5314.5.

15(2) Establishing lines of communication to ensure that the
16commission is notified if an action is commenced to enforce the
17requirements of those sections specified in subdivision (c), so that
18the commission may take appropriate action to enforce the fine
19and penalty provisions of this article.

20(e) The Attorney General, a district attorney of the proper county
21or city and county, or a city attorney may institute and prosecute
22actions or proceedings for the violation of any law committed in
23connection with, or arising from, a transaction involving the
24transportation of household goods and personal effects.

25

SEC. 5.  

Section 5352 of the Public Utilities Code is amended
26to read:

27

5352.  

(a) The use of the public highways for the transportation
28of passengers for compensation is a business affected with a public
29interest. It is the purpose of this chapter to preserve for the public
30full benefit and use of public highways consistent with the needs
31of commerce without unnecessary congestion or wear and tear
32upon the highways; to secure to the people adequate and
33dependable transportation by carriers operating upon the highways;
34to secure full and unrestricted flow of traffic by motor carriers
35over the highways which will adequately meet reasonable public
36demands by providing for the regulation of all transportation
37agencies with respect to accident indemnity so that adequate and
38dependable service by all necessary transportation agencies shall
39be maintained and the full use of the highways preserved to the
P11   1public; and to promote carrier and public safety through its safety
2enforcement regulations.

3(b) To achieve the purposes of subdivision (a) the commission
4shall do all of the following:

5(1) Prioritize the timely processing of applications and hold
6“application workshops” for potential applicants around the state.

7(2) Enable electronic filing of applications, reports, and fee
8payments.

9(3) Dedicate staff to answering telephone calls, mailings, and
10electronic inquiries from carriers.

11(4) Prioritize the timely processing of consumer complaints.

12(5) Implement electronic case tracking of complaints and their
13disposition.

14(6) Implement a process for appropriate and timely enforcement
15against illegally operating carriers, including by performing
16staff-driven investigations and performing enforcement through
17sting operations and other forms of presence in the field.

18(7) Maintain relationships with, and implement outreach and
19education programs to, local law enforcement, district attorneys,
20and airports.

21(8) Meet with carrier trade associations at least annually.

22(9) Implement a consolidated case tracking system that integrates
23each of the transportation program core functions and data
24collection, administrative compliance details, complaints, and
25investigations.

26(c) (1) The commission shall assess its capabilities to carry out
27the activities in subdivision (b) and report to the Legislature no
28later than January 1, 2017. The report shall contain an analysis of
29current capabilities and deficiencies, and recommendations to
30overcome any deficiencies identified.

31(2) The report shall be submitted in compliance with Section
329795 of the Government Code.

33(3) Pursuant to Section 10231.5 of the Government Code, this
34subdivision is inoperative on January 1, 2021.

35begin insert

begin insertSEC. 6.end insert  

end insert

begin insertSection 5359 of the end insertbegin insertPublic Utilities Codeend insertbegin insert is amended
36to read:end insert

37

5359.  

begin insert(a)end insertbegin insertend insert “Motor vehicle” means a vehicle which is
38self-propelled.

begin insert

P12   1(b) “Bus” means a vehicle designed, used, or maintained for
2carrying more than 10 persons, including the driver, which is used
3to transport persons for compensation or profit.

end insert
begin insert

4(c) “Limousine” means any sedan or sport utility vehicle, of
5either standard or extended length, with a seating capacity of not
6more than 10 passengers including the driver, used in the
7transportation of passengers for hire on a prearranged basis within
8this state, and includes a modified limousine as defined in Section
91042.1.

end insert
10

begin deleteSEC. 6.end delete
11begin insertSEC. 7.end insert  

Section 5387 of the Public Utilities Code is amended
12to read:

13

5387.  

(a) It is unlawful for the owner of a charter-party carrier
14of passengers to permit the operation of a vehicle upon a public
15highway for compensation without (1) having obtained from the
16commission a certificate or permit pursuant to this chapter, (2)
17having complied with the vehicle identification requirements of
18Section 5385 or 5385.5, and (3) having complied with the accident
19liability protection requirements of Section 5391.

20(b) A person who drives a bus for a charter-party carrier without
21having a current and valid driver’s license of the proper class, a
22passenger vehicle endorsement, or the required certificate shall be
23suspended from driving a bus of any kind, including, but not
24limited to, a bus, schoolbus, school pupil activity bus, or transit
25bus, with passengers for a period of five years pursuant to Section
2613369 of the Vehicle Code.

27(c) (1) A charter-party carrier shall have its authority to operate
28as a charter-party carrier permanently revoked by the commission
29or be permanently barred from receiving a permit or certificate
30from the commission if it commits any of the following acts:

31(A) Operates a bus without having been issued a permit or
32certificate from the commission.

33(B) Operates a bus with a permit that was suspended by the
34commission pursuant to Section 5378.5.

35(C) Commits three or more liability insurance violations within
36a two-year period for which it has been cited.

37(D) Operates a bus with a permit that was suspended by the
38commission during a period that the charter-party carrier’s liability
39insurance lapsed for which it has been cited.

P13   1(E) Knowingly employs a busdriver who does not have a current
2and valid driver’s license of the proper class, a passenger vehicle
3endorsement, or the required certificate to drive a bus.

4(F) Has one or more buses improperly registered with the
5Department of Motor Vehicles.

6(2) The commission shall not issue a new permit or certificate
7to operate as a charter-party carrier if any officer, director, or owner
8of that charter-party carrier was an officer, director, or owner of
9a charter-party carrier that had its authority to operate as a
10charter-party carrier permanently revoked by the commission or
11that was permanently barred from receiving a permit or certificate
12from the commission pursuant to this subdivision.

13(d) A peace officer, asbegin delete defined in Section 5417.5,end deletebegin insert designated
14pursuant to Chapter 4.5 (commencing with Section 830) of Title
153 of Part 2 of the Penal Code,end insert
may impound abegin delete vehicleend deletebegin insert bus or
16limousineend insert
of a charter-party carrier of passengers for 30 days
17pursuant to Section 14602.9 of the Vehicle Code if the peace officer
18determines that any of the following violations occurred while the
19driver was operating thebegin delete vehicleend deletebegin insert bus or limousineend insert ofbegin delete aend deletebegin insert theend insert
20 charter-party carrier:

21(1) The driver was operating thebegin delete vehicleend deletebegin insert bus or limousineend insert of a
22charter-party carrier of passengers when the charter-party carrier
23of passengers did not have a permit or certificate issued by the
24commission.

25(2) The driver was operating thebegin delete vehicleend deletebegin insert bus or limousineend insert of a
26charter-party carrier of passengers when the charter-party carrier
27of passengers was operating with a suspended permit or certificate
28from the commission.

29(3) The driver was operating thebegin delete vehicleend deletebegin insert bus or limousineend insert of a
30charter-party carrier of passengers without having a current and
31valid driver’s license of the proper class, a passenger vehicle
32endorsement, or the required certificate.

begin insert

33(e) This section does not authorize the impoundment of privately
34owned personal vehicles nor the impoundment of vehicles used in
35transportation for compensation by charter-party carriers of
36passengers that are not required to carry individual permits.

end insert
begin delete
37

SEC. 7.  

Section 5411.5 of the Public Utilities Code is amended
38to read:

39

5411.5.  

(a) Whenever a peace officer, as defined in Section
405417.5, arrests a person for operation of a vehicle of a charter-party
P14   1carrier of passengers without a valid certificate or permit, the peace
2officer may impound and retain possession of the vehicle.

3(b) Whenever a peace officer, as defined in Section 5417.5,
4arrests a person for operating a vehicle of a charter-party carrier
5of passengers as a taxicab in violation of an ordinance or resolution
6of a city, county, or city and county, the peace officer may impound
7and retain possession of the vehicle.

8(c) If the vehicle is seized from a person who is not the owner
9of the vehicle, the impounding authority shall immediately give
10notice to the owner by first-class mail.

11(d) The vehicle shall immediately be returned to the owner if
12the infraction or violation is not prosecuted or is dismissed, the
13owner is found not guilty of the offense, or it is determined that
14the vehicle was used in violation of Section 5411 without the
15knowledge and consent of the owner. The vehicle shall be returned
16to the owner upon payment of any fine ordered by the court. If the
17vehicle is seized due to a violation of a person other than the owner
18of the vehicle, the vehicle shall be returned to the owner after all
19impoundment fees are paid. After the expiration of six weeks from
20the final disposition of the criminal case, unless the owner is in
21the process of making payments to the court, the impounding
22authority may deal with the vehicle as lost or abandoned property
23under Section 1411 of the Penal Code.

24(e) At any time, a person may make a motion in superior court
25for the immediate return of the vehicle on the ground that there
26was no probable cause to seize it or that there is some other good
27cause, as determined by the court, for the return of the vehicle. A
28proceeding under this section is a limited civil case.

29(f) No peace officer, however, may impound any vehicle owned
30or operated by a nonprofit organization exempt from taxation
31pursuant to Section 501(c)(3) of the Internal Revenue Code which
32serves youth or senior citizens and provides transportation
33incidental to its programs or services or a rented motor vehicle
34that is being operated by a hired driver of a charter-party carrier
35of passengers that is providing hired driver service.

end delete
36

SEC. 8.  

Section 5417.5 is added to the Public Utilities Code,
37to read:

38

5417.5.  

(a) The commission shall ensure that this chapter is
39enforced and obeyed, and that violations thereof are promptly
40prosecuted and that penalty moneys due to the state are recovered
P15   1and collected, and to this end it may sue in the name of the people
2of the State of California. Upon the request of the commission,
3the Attorney General or the district attorney of the proper county
4or city and county may aid in any investigation, hearing, or trial
5under this chapter. The Attorney General, a district attorney of the
6proper county or city and county, or a city attorney may institute
7and prosecute actions or proceedings for the violation of any law
8committed in connection with, or arising from, a transaction
9involving a charter-party carrier of passengers.

10(b) For purposes of this section, “peace officer” meansbegin delete all of
11the following:end delete
begin insert a person designated as a peace officer pursuant to
12Chapter 4.5 (commencing with Section 830) of Title 3 of Part 2 of
13the Penal Code.end insert

begin delete

14(1) 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(2) An officer of the Department of the California Highway
22Patrol.

23(3) Any person regularly employed as an airport law
24enforcement officer by a city, county, or district operating the
25airport or by a joint powers agency, created pursuant to Article 1
26(commencing with Section 6500) of Chapter 5 of Division 7 of
27Title 1 of the Government Code, operating the airport, if the
28primary duty of the person is the enforcement of the law in or
29about properties owned, operated, and administered by the
30employing agency or when performing necessary duties with
31respect to patrons, employees, and properties of the employing
32agency, in or about the properties owned, operated, and
33administered by the employing agency.

end delete

34(c) A peace officer may enforce and assist in the enforcement
35of Sections 5411 and 5412 resulting from a violation of Section
365371, 5379, 5385, 5385.7, or 5387, or more than one of those
37sections. A peace officer may additionally enforce and assist in
38the enforcement of Sections 5411.3 and 5414.5. In any case in
39which an arrest authorized by this subdivision is made for an
40offense declared to be a misdemeanor, and the person arrested
P16   1does not demand to be taken before a magistrate, the arresting
2peace officer may, instead of taking such person before a
3magistrate, follow the procedure prescribed by Chapter 5C
4(commencing with Section 853.5) of Title 3 of Part 2 of the Penal
5Code. The provisions of that chapter shall thereafter apply with
6reference to any proceeding based upon the issuance of a citation
7pursuant to this authority.

8(d) The commission shall coordinate enforcement of this section
9with those peace officersbegin delete described in subdivision (b),end deletebegin insert likely to be
10involved in enforcing this section,end insert
including undertaking both of
11the following:

12(1) Educational outreach to ensure that those peace officers are
13 aware of the requirements of Sections 5371, 5379, 5385, 5385.7,
145387, 5411, 5411.3, 5412, and 5414.5.

15(2) Establishing lines of communication to ensure that the
16commission is notified if an action is commenced to enforce the
17requirements of those sections specified in subdivision (c), so that
18the commission may take appropriate action to enforce the fine
19and penalty provisions of this article.

20(e) The Attorney General, a district attorney of the proper county
21or city and county, or a city attorney may institute and prosecute
22actions or proceedings for the violation of any law committed in
23connection with, or arising from, a transaction involving the
24transportation of passengers by a charter-party carrier of
25passengers.

26

SEC. 9.  

Section 14602.9 of the Vehicle Code is amended to
27read:

28

14602.9.  

(a) For purposes of this section, “peace officer” means
29begin delete all of the following:end deletebegin insert a person designated as a peace officer
30pursuant to Chapter 4.5 (commencing with Section 830) of Title
313 of Part 2 of the Penal Code.end insert

begin delete

32(1) An officer of the Department of the California Highway
33Patrol.

end delete
begin delete

34(2) 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.

end delete
begin delete

P17   1(3) Any person regularly employed as an airport law
2enforcement officer by a city, county, or district operating the
3airport or by a joint powers agency, created pursuant to Article 1
4(commencing with Section 6500) of Chapter 5 of Division 7 of
5Title 1 of the Government Code, operating the airport, if the
6primary duty of the person is the enforcement of the law in or
7about properties owned, operated, and administered by the
8employing agency or when performing necessary duties with
9respect to patrons, employees, and properties of the employing
10agency, in or about the properties owned, operated, and
11administered by the employing agency.

end delete

12(b) A peace officer may impound abegin delete vehicleend deletebegin insert bus or limousineend insert of
13a charter-party carrier for 30 days if the officer determines that
14any of the following violations occurred while the driver was
15operating thebegin delete vehicleend deletebegin insert bus or limousineend insert of the charter-party carrier:

16(1) The driver was operating thebegin delete vehicleend deletebegin insert bus or limousineend insert of a
17charter-party carrier when the charter-party carrier did not have a
18permit or certificate issued by the Public Utilities Commission,
19pursuant to Section 5375 of the Public Utilities Code.

20(2) The driver was operating thebegin delete vehicleend deletebegin insert bus or limousineend insert of a
21charter-party carrier when the charter-party carrier was operating
22with a suspended permit or certificate from the Public Utilities
23Commission.

24(3) The driver was operating thebegin delete vehicleend deletebegin insert bus or limousineend insert of a
25charter-party carrier without having a current and valid driver’s
26license of the proper class, a passenger vehicle endorsement, or
27the required certificate.

28(c) A peace officer may impound abegin delete vehicleend deletebegin insert bus or limousineend insert
29 belonging to a passenger stage corporation for 30 days if the officer
30determines any of the following violations occurred while the
31driver was operating thebegin delete vehicle:end deletebegin insert bus or limousineend insert

32(1) The driver was operating thebegin delete vehicleend deletebegin insert bus or limousineend insert when
33the passenger stage corporation did not have a certificate of public
34convenience and necessity issued by the Public Utilities
35Commission as required pursuant to Article 2 (commencing with
36Section 1031) of Chapter 5 of Part 1 of Division 1 of the Public
37Utilities Code.

38(2) The driver was operating thebegin delete vehicleend deletebegin insert bus or limousineend insert when
39the operating rights or certificate of public convenience and
40necessity of a passenger stage corporation was suspended, canceled,
P18   1or revoked pursuant to Section 1033.5, 1033.7, or 1045 of the
2Public Utilities Code.

3(3) The driver was operating thebegin delete vehicleend deletebegin insert bus or limousineend insert
4 without having a current and valid driver’s license of the proper
5class.

6(d) Within two working days after impoundment, the
7impounding agency shall send a notice by certified mail, return
8receipt requested, to the legal owner of the vehicle, at the address
9obtained from the department, informing the owner that the vehicle
10has been impounded. Failure to notify the legal owner within two
11working days shall prohibit the impounding agency from charging
12for more than 15 day’s impoundment when the legal owner
13redeems the impounded vehicle. The impounding agency shall
14maintain a published telephone number that provides information
1524 hours a day regarding the impoundment of vehicles and the
16rights of a registered owner to request a hearing.

17(e) The registered and legal owner of a vehicle that is removed
18and seized under subdivision (b) or (c) or his or her agent shall be
19provided the opportunity for a storage hearing to determine the
20validity of, or consider any mitigating circumstances attendant to,
21the storage, in accordance with Section 22852.

22(f) (1) The impounding agency shall release the vehicle to the
23registered owner or his or her agent prior to the end of the
24impoundment period under any of the following circumstances:

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

26(B) When the vehicle is subject to bailment and is driven by an
27unlicensed employee of a business establishment, including a
28parking service or repair garage.

29(C) When, for a charter-party carrier of passengers, the driver
30of the vehicle is not the sole registered owner of the vehicle and
31the vehicle is being released to another registered owner of the
32vehicle who agrees not to allow the driver to use the vehicle until
33after the end of the impoundment period and the charter-party
34carrier has been issued a valid permit from the Public Utilities
35Commission, pursuant to Section 5375 of the Public Utilities Code.

36(D) When, for a passenger stage corporation, the driver of the
37vehicle is not the sole registered owner of the vehicle and the
38vehicle is being released to another registered owner of the vehicle
39who agrees not to allow the driver to use the vehicle until after the
40end of the impoundment period and the passenger stage corporation
P19   1has been issued a valid certificate of public convenience and
2necessity by the Public Utilities Commission, pursuant to Article
32 (commencing with Section 1031) of Chapter 5 of Part 1 of
4Division 1 of the Public Utilities Code.

5(2) A vehicle shall not be released pursuant to this subdivision
6without presentation of the registered owner’s or agent’s currently
7valid driver’s license to operate the vehicle and proof of current
8vehicle registration, or upon order of a court.

9(g) The registered owner or his or her agent is responsible for
10all towing and storage charges related to the impoundment, and
11any administrative charges authorized under Section 22850.5.

12(h) A vehicle removed and seized under subdivision (b) or (c)
13shall be released to the legal owner of the vehicle or the legal
14owner’s agent prior to the end of the impoundment period if all of
15the following conditions are met:

16(1) The legal owner is a motor vehicle dealer, bank, credit union,
17acceptance corporation, or other licensed financial institution
18legally operating in this state, or is another person who is not the
19registered owner and holds a security interest in the vehicle.

20(2) The legal owner or the legal owner’s agent pays all towing
21and storage fees related to the seizure of the vehicle. A lien sale
22processing fee shall not be charged to the legal owner who redeems
23the vehicle prior to the 10th day of impoundment. The impounding
24authority or any person having possession of the vehicle shall not
25collect from the legal owner of the type specified in paragraph (1),
26or the legal owner’s agent, any administrative charges imposed
27pursuant to Section 22850.5 unless the legal owner voluntarily
28requested a poststorage hearing.

29(3) (A) The legal owner or the legal owner’s agent presents
30either lawful foreclosure documents or an affidavit of repossession
31for the vehicle, and a security agreement or title showing proof of
32legal ownership for the vehicle. All presented documents may be
33originals, photocopies, or facsimile copies, or may be transmitted
34electronically. The impounding agency shall not require a
35document to be notarized. The impounding agency may require
36the agent of the legal owner to produce a photocopy or facsimile
37copy of its repossession agency license or registration issued
38pursuant to Chapter 11 (commencing with Section 7500) of
39Division 3 of the Business and Professions Code, or to demonstrate,
40to the satisfaction of the impounding agency, that the agent is
P20   1exempt from licensure pursuant to Section 7500.2 or 7500.3 of the
2Business and Professions Code.

3(B) Administrative costs authorized under subdivision (a) of
4Section 22850.5 shall not be charged to the legal owner of the type
5 specified in paragraph (1), who redeems the vehicle unless the
6legal owner voluntarily requests a poststorage hearing. A city,
7county, or state agency shall not require a legal owner or a legal
8owner’s agent to request a poststorage hearing as a requirement
9for release of the vehicle to the legal owner or the legal owner’s
10agent. The impounding agency shall not require any documents
11other than those specified in this paragraph. The impounding
12agency shall not require any documents to be notarized.

13(C) As used in this paragraph, “foreclosure documents” means
14an “assignment” as that term is defined in subdivision (o) of
15Section 7500.1 of the Business and Professions Code.

16(i) (1) A legal owner or the legal owner’s agent who obtains
17release of the vehicle pursuant to subdivision (h) may not release
18the vehicle to the registered owner of the vehicle or any agents of
19the registered owner, unless the registered owner is a rental car
20agency, until after the termination of the impoundment period.

21(2) The legal owner or the legal owner’s agent shall not
22relinquish the vehicle to the registered owner until the registered
23owner or that owner’s agent presents his or her valid driver’s
24license or valid temporary driver’s license to the legal owner or
25the legal owner’s agent. The legal owner or the legal owner’s agent
26shall make every reasonable effort to ensure that the license
27presented is valid.

28(3) Prior to relinquishing the vehicle, the legal owner may
29require the registered owner to pay all towing and storage charges
30related to the impoundment and any administrative charges
31authorized under Section 22850.5 that were incurred by the legal
32owner in connection with obtaining custody of the vehicle.

33(j) (1) A vehicle removed and seized under subdivision (b) or
34(c) shall be released to a rental agency prior to the end of the
35impoundment period if the agency is either the legal owner or
36registered owner of the vehicle and the agency pays all towing and
37storage fees related to the seizure of the vehicle.

38(2) The owner of a rental vehicle that was seized under this
39section may continue to rent the vehicle upon recovery of the
40vehicle. However, the rental agency shall not rent another vehicle
P21   1to the driver of the vehicle that was seized until the impoundment
2period has expired.

3(3) The rental agency may require the person to whom the
4vehicle was rented to pay all towing and storage charges related
5to the impoundment and any administrative charges authorized
6under Section 22850.5 that were incurred by the rental agency in
7connection with obtaining custody of the vehicle.

8(k) Notwithstanding any other provision of this section, the
9registered owner, and not the legal owner, shall remain responsible
10for any towing and storage charges related to the impoundment,
11any administrative charges authorized under Section 22850.5, and
12any parking fines, penalties, and administrative fees incurred by
13the registered owner.

14(l) The impounding agency is not liable to the registered owner
15for the improper release of the vehicle to the legal owner or the
16legal owner’s agent provided the release complies with this section.

begin insert

17(m) This section does not authorize the impoundment of privately
18owned personal vehicles nor the impoundment of vehicles used in
19transportation for compensation by charter-party carriers that
20are not required to carry individual permits.

end insert
begin delete

21(m)

end delete

22begin insert(n)end insert For the purposes of this section, a “charter-party carrier”
23means a charter-party carrier of passengers as defined by Section
245360 of the Public Utilities Code.

begin delete

25(n)

end delete

26begin insert(o)end insert For purposes of this section, a “passenger stage corporation”
27means a passenger stage corporation as defined by Section 226 of
28the Public Utilities Code.



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