Amended in Assembly August 17, 2015

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, 5359, and 5387 of,begin delete andend delete to add Sections 1046 and 5417.5 to,begin insert and to add and repeal Sections 918.1 and 918.2 of,end insert 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, as defined, 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 peace officers through educational outreach and establishing lines of communication 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, as defined, to impound a bus or limousine, as defined, of a charter-party carrier of passengers, except as specified, for 30 days in those circumstances. The bill would revise the Vehicle Code to authorize a peace officer, identically defined, to impound a bus or limousine of a charter-party carrier of passengers, except as specified, for 30 days in those circumstances and authorize a peace officer to impound a bus or limousine belonging to a passenger stage corporation for 30 days if the officer determines (A) the driver was operating the bus or limousine 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 bus or limousine 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 bus or limousine without having a current and valid driver’s license of the proper class.

(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, as defined, 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 peace officers through educational outreach and establishing lines of communication 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:

P4    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
P5    1ensure that passenger carriers operate safely. Among the numerous
2problems cited by the California State Auditor are that the branch
3does not have formal policies for dealing with complaints against
4carriers, it does not resolve complaints in a timely manner, it does
5not have adequate investigatory techniques, and it fails to properly
6account for fees paid by carriers. In addition, the California State
7Auditor concluded that without major improvements to its
8management processes, the branch has little ability to resolve its
9deficiencies.

10(c) While the commission is undertaking an internal process to
11implement the California State Auditor’s recommendations, it is
12in the public interest for the Legislature to further ensure that the
13Transportation Enforcement Branch improves its performance to
14ensure passenger safety.

15begin insert

begin insertSEC. 2.end insert  

end insert

begin insertSection 918.1 is added to the end insertbegin insertPublic Utilities Codeend insertbegin insert, to
16read:end insert

begin insert
17

begin insert918.1.end insert  

(a) The commission shall assess its capabilities to carry
18out the activities specified in subdivision (b) of Section 5102 and
19shall report to the Legislature no later than January 1, 2017. The
20report shall contain an analysis of current capabilities and
21deficiencies, and recommendations to overcome any deficiencies
22identified.

23(b) The report shall be submitted in compliance with Section
249795 of the Government Code.

25(c) Pursuant to Section 10231.5 of the Government Code, this
26section shall remain in effect only until January 1, 2021, and as
27of that date is repealed, unless a later enacted statute, that is
28enacted before January 1, 2021, deletes or extends that date.

end insert
29begin insert

begin insertSEC. 3.end insert  

end insert

begin insertSection 918.2 is added to the end insertbegin insertPublic Utilities Codeend insertbegin insert, to
30read:end insert

begin insert
31

begin insert918.2.end insert  

(a) The commission shall assess its capabilities to carry
32out the activities specified in subdivision (b) of Section 5352 and
33shall report to the Legislature no later than January 1, 2017. The
34report shall contain an analysis of current capabilities and
35deficiencies, and recommendations to overcome any deficiencies
36identified.

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

39(c) Pursuant to Section 10231.5 of the Government Code, this
40section shall remain in effect only until January 1, 2021, and as
P6    1of that date is repealed, unless a later enacted statute, that is
2enacted before January 1, 2021, deletes or extends that date.

3(d) The commission may combine the information required to
4be reported by this section with the report prepared pursuant to
5Section 918.1.

end insert
6

begin deleteSEC. 2.end delete
7begin insertSEC. 4.end insert  

Section 1046 is added to the Public Utilities Code, to
8read:

9

1046.  

(a) For purposes of this section, the following terms
10have the following meanings:

11(1) “Bus” means a vehicle designed, used, or maintained for
12carrying more than 10 persons, including the driver, which is used
13to transport persons for compensation or profit.

14(2) “Limousine” means any sedan or sport utility vehicle, of
15either standard or extended length, with a seating capacity of not
16more than 10 passengers including the driver, used in the
17transportation of passengers for hire on a prearranged basis within
18this state, and includes a modified limousine as defined in Section
191042.1.

20(3) “Peace officer” means a person who is designated as a peace
21officer pursuant to Chapter 4.5 (commencing with Section 830)
22of Title 3 of Part 2 of the Penal Code.

23(b) A peace officer may, with respect to a passenger stage
24corporation, enforce and assist in the enforcement of Sections 2110
25and 2112, resulting from a violation of Section 1031, 1041, or
26 1045, or more than one of those sections. A peace officer may
27additionally enforce and assist in the enforcement of Sections
281034.5 and 2119. In any case in which an arrest authorized by this
29subdivision is made for an offense declared to be a misdemeanor,
30and the person arrested does not demand to be taken before a
31magistrate, the arresting peace officer may, instead of taking such
32person before a magistrate, follow the procedure prescribed by
33Chapter 5C (commencing with Section 853.5) of Title 3 of Part 2
34of the Penal Code. The provisions of that chapter shall thereafter
35apply with reference to any proceeding based upon the issuance
36of a citation pursuant to this authority.

37(c) A peace officer may impound a bus or limousine operated
38by a passenger stage corporation pursuant to Section 14602.9 of
39the Vehicle Code if the peace officer determines that any of the
P7    1following violations occurred while the driver was operating the
2vehicle:

3(1) The driver was operating the bus or limousine when the
4passenger stage corporation did not have a certificate of public
5convenience and necessity issued by the commission as required
6pursuant to this article.

7(2) The driver was operating the bus or limousine when the
8operating rights or certificate of public convenience and necessity
9of a passenger stage corporation was suspended, canceled, or
10revoked pursuant to Section 1033.5, 1033.7, or 1045.

11(3) The driver was operating the bus or limousine without having
12a current and valid driver’s license of the proper class.

13(d) The commission shall coordinate enforcement of this section
14with those peace officers likely to be involved in enforcing this
15section, including undertaking both of the following:

16(1) Educational outreach to ensure that those peace officers are
17aware of the requirements of Sections 1031, 1034.5, 1041, 1045,
182110, 2112, and 2119.

19(2) Establishing lines of communication to ensure that the
20commission is notified if an action is commenced to enforce the
21requirements of those sections specified in subdivision (b), so that
22the commission may take appropriate action to enforce the fine
23and penalty provisions of Chapter 11 (commencing with Section
242100).

25(e) The Legislature finds and declares that this section is
26intended to facilitate and enhance the commission’s performance
27of its functions pursuant to Section 2101 and not diminish the
28commission’s authority or responsibility pursuant to that section.

29(f) This section does not authorize the impoundment of privately
30owned personal vehiclesbegin insert that are not common carriersend insert nor the
31impoundment of vehicles used in transportation for compensation
32by charter-party carriers of passengers that are not required to carry
33individual permits.

34

begin deleteSEC. 3.end delete
35begin insertSEC. 5.end insert  

Section 5102 of the Public Utilities Code is amended
36to read:

37

5102.  

(a) The use of the public highways for the transportation
38of used household goods and personal effects for compensation is
39a business affected with a public interest. It is the purpose of this
40chapter to preserve for the public the full benefit and use of public
P8    1highways consistent with the needs of commerce without
2unnecessary congestion or wear and tear upon those highways; to
3secure to the people just, reasonable, and nondiscriminatory rates
4for transportation by carriers operating upon the highways; to
5secure full and unrestricted flow of traffic by motor carriers over
6the highways that will adequately meet reasonable public demands
7by providing for the regulation of rates of all carriers so that
8adequate and dependable service by all necessary carriers shall be
9maintained and the full use of the highways preserved to the public;
10and to promote fair dealing and ethical conduct in the rendition of
11services involving or incident to the transportation of household
12goods and personal effects.

13(b) To achieve the purposes of subdivision (a) the commission
14shall do all of the following:

15(1) Prioritize the timely processing of applications and hold
16“application workshops” for potential applicants around the state.

17(2) Enable electronic filing of applications, reports, and fee
18payments.

19(3) Dedicate staff to answering telephone calls, mailings, and
20 electronic inquiries from carriers.

21(4) Prioritize the timely processing of consumer complaints.

22(5) Implement electronic case tracking of complaints and their
23disposition.

24(6) Implement a process for appropriate and timely enforcement
25against illegally operating carriers, including by performing
26staff-driven investigations and performing enforcement through
27sting operations and other forms of presence in the field.

28(7) Maintain relationships with, and implement outreach and
29education programs to, local law enforcement, district attorneys,
30and airports.

31(8) Meet with carrier trade associations at least annually.

32(9) Implement a consolidated case tracking system that integrates
33each of the transportation program core functions and data
34collection, administrative compliance details, complaints, and
35investigations.

begin delete

36(c) (1) The commission shall assess its capabilities to carry out
37the activities in subdivision (b) and report to the Legislature no
38later than January 1, 2017. The report shall contain an analysis of
39current capabilities and deficiencies, and recommendations to
40overcome any deficiencies identified.

P9    1(2) The report shall be submitted in compliance with Section
29795 of the Government Code.

3(3) Pursuant to Section 10231.5 of the Government Code, this
4subdivision is inoperative on January 1, 2021.

end delete
5

begin deleteSEC. 4.end delete
6begin insertSEC. 6.end insert  

Section 5317.5 of the Public Utilities Code is amended
7to read:

8

5317.5.  

(a) The commission shall ensure that this chapter is
9enforced and obeyed, and that violations thereof are promptly
10prosecuted and that penalty moneys due to the state are recovered
11and collected, and to this end it may sue in the name of the people
12of the State of California. Upon the request of the commission,
13the Attorney General or the district attorney of the proper county
14or city and county may aid in any investigation, hearing, or trial
15had under this chapter.

16(b) For purposes of this section, “peace officer” means a person
17designated as a peace officer pursuant to Chapter 4.5 (commencing
18with Section 830) of Title 3 of Part 2 of the Penal Code.

19(c) A peace officer may enforce and assist in the enforcement
20of Sections 5311 and 5312, resulting from a violation of Section
215132, 5133, 5140, or 5286, or more than one of those sections. A
22peace officer may additionally enforce and assist in the enforcement
23of Sections 5311.3 and 5314.5. In any case in which an arrest
24authorized by this subdivision is made for an offense declared to
25be a misdemeanor, and the person arrested does not demand to be
26taken before a magistrate, the arresting peace officer may, instead
27of taking such person before a magistrate, follow the procedure
28prescribed by Chapter 5C (commencing with Section 853.5) of
29Title 3 of Part 2 of the Penal Code. The provisions of that chapter
30shall thereafter apply with reference to any proceeding based upon
31the issuance of a citation pursuant to this authority.

32(d) The commission shall coordinate enforcement of this section
33with those peace officers likely to be involved in enforcing this
34section, including undertaking both of the following:

35(1) Educational outreach to ensure that those peace officers are
36aware of the requirements of Sections 5132, 5133, 5140, 5286,
375311, 5311.3, 5312, and 5314.5.

38(2) Establishing lines of communication to ensure that the
39commission is notified if an action is commenced to enforce the
40requirements of those sections specified in subdivision (c), so that
P10   1the commission may take appropriate action to enforce the fine
2and penalty provisions of this article.

3(e) The Attorney General, a district attorney of the proper county
4or city and county, or a city attorney may institute and prosecute
5actions or proceedings for the violation of any law committed in
6connection with, or arising from, a transaction involving the
7transportation of household goods and personal effects.

8

begin deleteSEC. 5.end delete
9begin insertSEC. 7.end insert  

Section 5352 of the Public Utilities Code is amended
10to read:

11

5352.  

(a) The use of the public highways for the transportation
12of passengers for compensation is a business affected with a public
13interest. It is the purpose of this chapter to preserve for the public
14full benefit and use of public highways consistent with the needs
15of commerce without unnecessary congestion or wear and tear
16upon the highways; to secure to the people adequate and
17dependable transportation by carriers operating upon the highways;
18to secure full and unrestricted flow of traffic by motor carriers
19over the highways which will adequately meet reasonable public
20demands by providing for the regulation of all transportation
21agencies with respect to accident indemnity so that adequate and
22dependable service by all necessary transportation agencies shall
23be maintained and the full use of the highways preserved to the
24public; and to promote carrier and public safety through its safety
25enforcement regulations.

26(b) To achieve the purposes of subdivision (a) the commission
27shall do all of the following:

28(1) Prioritize the timely processing of applications and hold
29“application workshops” for potential applicants around the state.

30(2) Enable electronic filing of applications, reports, and fee
31payments.

32(3) Dedicate staff to answering telephone calls, mailings, and
33electronic inquiries from carriers.

34(4) Prioritize the timely processing of consumer complaints.

35(5) Implement electronic case tracking of complaints and their
36disposition.

37(6) Implement a process for appropriate and timely enforcement
38against illegally operating carriers, including by performing
39staff-driven investigations and performing enforcement through
40sting operations and other forms of presence in the field.

P11   1(7) Maintain relationships with, and implement outreach and
2education programs to, local law enforcement, district attorneys,
3and airports.

4(8) Meet with carrier trade associations at least annually.

5(9) Implement a consolidated case tracking system that integrates
6each of the transportation program core functions and data
7collection, administrative compliance details, complaints, and
8investigations.

begin delete

9(c) (1) The commission shall assess its capabilities to carry out
10the activities in subdivision (b) and report to the Legislature no
11later than January 1, 2017. The report shall contain an analysis of
12current capabilities and deficiencies, and recommendations to
13overcome any deficiencies identified.

14(2) The report shall be submitted in compliance with Section
159795 of the Government Code.

16(3) Pursuant to Section 10231.5 of the Government Code, this
17subdivision is inoperative on January 1, 2021.

end delete
18

begin deleteSEC. 6.end delete
19begin insertSEC. 8.end insert  

Section 5359 of the Public Utilities Code is amended
20to read:

21

5359.  

(a) “Motor vehicle” means a vehicle which is
22self-propelled.

23(b) “Bus” means a vehicle designed, used, or maintained for
24carrying more than 10 persons, including the driver, which is used
25to transport persons for compensation or profit.

26(c) “Limousine” means any sedan or sport utility vehicle, of
27either standard or extended length, with a seating capacity of not
28more than 10 passengers including the driver, used in the
29transportation of passengers for hire on a prearranged basis within
30this state, and includes a modified limousine as defined in
31begin insert subdivision (d) ofend insert Sectionbegin delete 1042.1.end deletebegin insert 1042.end insert

32

begin deleteSEC. 7.end delete
33begin insertSEC. 9.end insert  

Section 5387 of the Public Utilities Code is amended
34to read:

35

5387.  

(a) It is unlawful for the owner of a charter-party carrier
36of passengers to permit the operation of a vehicle upon a public
37highway for compensation without (1) having obtained from the
38commission a certificate or permit pursuant to this chapter, (2)
39having complied with the vehicle identification requirements of
P12   1Section 5385 or 5385.5, and (3) having complied with the accident
2liability protection requirements of Section 5391.

3(b) A person who drives a bus for a charter-party carrier without
4having a current and valid driver’s license of the proper class, a
5passenger vehicle endorsement, or the required certificate shall be
6suspended from driving a bus of any kind, including, but not
7limited to, a bus, schoolbus, school pupil activity bus, or transit
8bus, with passengers for a period of five years pursuant to Section
913369 of the Vehicle Code.

10(c) (1) A charter-party carrier shall have its authority to operate
11as a charter-party carrier permanently revoked by the commission
12or be permanently barred from receiving a permit or certificate
13from the commission if it commits any of the following acts:

14(A) Operates a bus without having been issued a permit or
15certificate from the commission.

16(B) Operates a bus with a permit that was suspended by the
17commission pursuant to Section 5378.5.

18(C) Commits three or more liability insurance violations within
19a two-year period for which it has been cited.

20(D) Operates a bus with a permit that was suspended by the
21commission during a period that the charter-party carrier’s liability
22insurance lapsed for which it has been cited.

23(E) Knowingly employs a busdriver who does not have a current
24and valid driver’s license of the proper class, a passenger vehicle
25endorsement, or the required certificate to drive a bus.

26(F) Has one or more buses improperly registered with the
27Department of Motor Vehicles.

28(2) The commission shall not issue a new permit or certificate
29to operate as a charter-party carrier if any officer, director, or owner
30of that charter-party carrier was an officer, director, or owner of
31a charter-party carrier that had its authority to operate as a
32charter-party carrier permanently revoked by the commission or
33that was permanently barred from receiving a permit or certificate
34from the commission pursuant to this subdivision.

35(d) A peace officer, as designated pursuant to Chapter 4.5
36(commencing with Section 830) of Title 3 of Part 2 of the Penal
37Code, may impound a bus or limousine of a charter-party carrier
38of passengers for 30 days pursuant to Section 14602.9 of the
39Vehicle Code if the peace officer determines that any of the
P13   1following violations occurred while the driver was operating the
2bus or limousine of the charter-party carrier:

3(1) The driver was operating the bus or limousine of a
4charter-party carrier of passengers when the charter-party carrier
5of passengers did not have a permit or certificate issued by the
6commission.

7(2) The driver was operating the bus or limousine of a
8charter-party carrier of passengers when the charter-party carrier
9of passengers was operating with a suspended permit or certificate
10from the commission.

11(3) The driver was operating the bus or limousine of a
12charter-party carrier of passengers without having a current and
13valid driver’s license of the proper class, a passenger vehicle
14endorsement, or the required certificate.

15(e) This section does not authorize the impoundment of privately
16owned personal vehiclesbegin insert that are not common carriersend insert nor the
17impoundment of vehicles used in transportation for compensation
18by charter-party carriers of passengers that are not required to carry
19individual permits.

20

begin deleteSEC. 8.end delete
21begin insertSEC. 10.end insert  

Section 5417.5 is added to the Public Utilities Code,
22to read:

23

5417.5.  

(a) The commission shall ensure that this chapter is
24enforced and obeyed, and that violations thereof are promptly
25prosecuted and that penalty moneys due to the state are recovered
26and collected, and to this end it may sue in the name of the people
27of the State of California. Upon the request of the commission,
28the Attorney General or the district attorney of the proper county
29or city and county may aid in any investigation, hearing, or trial
30under this chapter. The Attorney General, a district attorney of the
31proper county or city and county, or a city attorney may institute
32and prosecute actions or proceedings for the violation of any law
33committed in connection with, or arising from, a transaction
34involving a charter-party carrier of passengers.

35(b) For purposes of this section, “peace officer” means a person
36designated as a peace officer pursuant to Chapter 4.5 (commencing
37with Section 830) of Title 3 of Part 2 of the Penal Code.

38(c) A peace officer may enforce and assist in the enforcement
39of Sections 5411 and 5412 resulting from a violation of Section
405371, 5379, 5385, 5385.7, or 5387, or more than one of those
P14   1sections. A peace officer may additionally enforce and assist in
2the enforcement of Sections 5411.3 and 5414.5. In any case in
3which an arrest authorized by this subdivision is made for an
4offense declared to be a misdemeanor, and the person arrested
5does not demand to be taken before a magistrate, the arresting
6peace officer may, instead of taking such person before a
7magistrate, follow the procedure prescribed by Chapter 5C
8(commencing with Section 853.5) of Title 3 of Part 2 of the Penal
9Code. The provisions of that chapter shall thereafter apply with
10reference to any proceeding based upon the issuance of a citation
11pursuant to this authority.

12(d) The commission shall coordinate enforcement of this section
13with those peace officers likely to be involved in enforcing this
14section, including undertaking both of the following:

15(1) Educational outreach to ensure that those peace officers are
16 aware of the requirements of Sections 5371, 5379, 5385, 5385.7,
175387, 5411, 5411.3, 5412, and 5414.5.

18(2) Establishing lines of communication to ensure that the
19commission is notified if an action is commenced to enforce the
20requirements of those sections specified in subdivision (c), so that
21the commission may take appropriate action to enforce the fine
22and penalty provisions of this article.

23(e) The Attorney General, a district attorney of the proper county
24or city and county, or a city attorney may institute and prosecute
25actions or proceedings for the violation of any law committed in
26connection with, or arising from, a transaction involving the
27transportation of passengers by a charter-party carrier of
28passengers.

29

begin deleteSEC. 9.end delete
30begin insertSEC. 11.end insert  

Section 14602.9 of the Vehicle Code is amended to
31read:

32

14602.9.  

(a) For purposes of this section, “peace officer” means
33a person designated as a peace officer pursuant to Chapter 4.5
34(commencing with Section 830) of Title 3 of Part 2 of the Penal
35Code.

36(b) A peace officer may impound a bus or limousine of a
37charter-party carrier for 30 days if the officer determines that any
38of the following violations occurred while the driver was operating
39the bus or limousine of the charter-party carrier:

P15   1(1) The driver was operating the bus or limousine of a
2charter-party carrier when the charter-party carrier did not have a
3permit or certificate issued by the Public Utilities Commission,
4pursuant to Section 5375 of the Public Utilities Code.

5(2) The driver was operating the bus or limousine of a
6charter-party carrier when the charter-party carrier was operating
7with a suspended permit or certificate from the Public Utilities
8Commission.

9(3) The driver was operating the bus or limousine of a
10charter-party carrier without having a current and valid driver’s
11license of the proper class, a passenger vehicle endorsement, or
12the required certificate.

13(c) A peace officer may impound a bus or limousine belonging
14to a passenger stage corporation for 30 days if the officer
15determines any of the following violations occurred while the
16driver was operating the bus orbegin delete limousineend deletebegin insert limousine:end insert

17(1) The driver was operating the bus or limousine when the
18passenger stage corporation did not have a certificate of public
19convenience and necessity issued by the Public Utilities
20Commission as required pursuant to Article 2 (commencing with
21Section 1031) of Chapter 5 of Part 1 of Division 1 of the Public
22Utilities Code.

23(2) The driver was operating the bus or limousine when the
24operating rights or certificate of public convenience and necessity
25of a passenger stage corporation was suspended, canceled, or
26revoked pursuant to Section 1033.5, 1033.7, or 1045 of the Public
27Utilities Code.

28(3) The driver was operating the bus or limousine without having
29a current and valid driver’s license of the proper class.

30(d) Within two working days after impoundment, the
31impounding agency shall send a notice by certified mail, return
32receipt requested, to the legal owner of the vehicle, at the address
33obtained from the department, informing the owner that the vehicle
34has been impounded. Failure to notify the legal owner within two
35working days shall prohibit the impounding agency from charging
36for more than 15 day’s impoundment when the legal owner
37redeems the impounded vehicle. The impounding agency shall
38maintain a published telephone number that provides information
3924 hours a day regarding the impoundment of vehicles and the
40rights of a registered owner to request a hearing.

P16   1(e) The registered and legal owner of a vehicle that is removed
2and seized under subdivision (b) or (c) or his or her agent shall be
3provided the opportunity for a storage hearing to determine the
4validity of, or consider any mitigating circumstances attendant to,
5the storage, in accordance with Section 22852.

6(f) (1) The impounding agency shall release the vehicle to the
7registered owner or his or her agent prior to the end of the
8impoundment period under any of the following circumstances:

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

10(B) When the vehicle is subject to bailment and is driven by an
11unlicensed employee of a business establishment, including a
12parking service or repair garage.

13(C) When, for a charter-party carrier of passengers, the driver
14of the vehicle is not the sole registered owner of the vehicle and
15the vehicle is being released to another registered owner of the
16vehicle who agrees not to allow the driver to use the vehicle until
17after the end of the impoundment period and the charter-party
18carrier has been issued a valid permit from the Public Utilities
19Commission, pursuant to Section 5375 of the Public Utilities Code.

20(D) When, for a passenger stage corporation, the driver of the
21vehicle is not the sole registered owner of the vehicle and the
22vehicle is being released to another registered owner of the vehicle
23who agrees not to allow the driver to use the vehicle until after the
24end of the impoundment period and the passenger stage corporation
25has been issued a valid certificate of public convenience and
26necessity by the Public Utilities Commission, pursuant to Article
272 (commencing with Section 1031) of Chapter 5 of Part 1 of
28Division 1 of the Public Utilities Code.

29(2) A vehicle shall not be released pursuant to this subdivision
30without presentation of the registered owner’s or agent’s currently
31valid driver’s license to operate the vehicle and proof of current
32vehicle registration, or upon order of a court.

33(g) The registered owner or his or her agent is responsible for
34all towing and storage charges related to the impoundment, and
35any administrative charges authorized under Section 22850.5.

36(h) A vehicle removed and seized under subdivision (b) or (c)
37shall be released to the legal owner of the vehicle or the legal
38owner’s agent prior to the end of the impoundment period if all of
39the following conditions are met:

P17   1(1) The legal owner is a motor vehicle dealer, bank, credit union,
2acceptance corporation, or other licensed financial institution
3legally operating in this state, or is another person who is not the
4registered owner and holds a security interest in the vehicle.

5(2) The legal owner or the legal owner’s agent pays all towing
6and storage fees related to the seizure of the vehicle. A lien sale
7processing fee shall not be charged to the legal owner who redeems
8the vehicle prior to the 10th day of impoundment. The impounding
9authority or any person having possession of the vehicle shall not
10collect from the legal owner of the type specified in paragraph (1),
11or the legal owner’s agent, any administrative charges imposed
12pursuant to Section 22850.5 unless the legal owner voluntarily
13requested a poststorage hearing.

14(3) (A) The legal owner or the legal owner’s agent presents
15either lawful foreclosure documents or an affidavit of repossession
16for the vehicle, and a security agreement or title showing proof of
17legal ownership for the vehicle. All presented documents may be
18originals, photocopies, or facsimile copies, or may be transmitted
19electronically. The impounding agency shall not require a
20document to be notarized. The impounding agency may require
21the agent of the legal owner to produce a photocopy or facsimile
22copy of its repossession agency license or registration issued
23pursuant to Chapter 11 (commencing with Section 7500) of
24Division 3 of the Business and Professions Code, or to demonstrate,
25to the satisfaction of the impounding agency, that the agent is
26exempt from licensure pursuant to Section 7500.2 or 7500.3 of the
27Business and Professions Code.

28(B) Administrative costs authorized under subdivision (a) of
29Section 22850.5 shall not be charged to the legal owner of the type
30 specified in paragraph (1), who redeems the vehicle unless the
31legal owner voluntarily requests a poststorage hearing. A city,
32county, or state agency shall not require a legal owner or a legal
33owner’s agent to request a poststorage hearing as a requirement
34for release of the vehicle to the legal owner or the legal owner’s
35agent. The impounding agency shall not require any documents
36other than those specified in this paragraph. The impounding
37agency shall not require any documents to be notarized.

38(C) As used in this paragraph, “foreclosure documents” means
39an “assignment” as that term is defined in subdivisionbegin delete (o)end deletebegin insert (b)end insert of
40Section 7500.1 of the Business and Professions Code.

P18   1(i) (1) A legal owner or the legal owner’s agent who obtains
2release of the vehicle pursuant to subdivision (h) may not release
3the vehicle to the registered owner of the vehicle or any agents of
4the registered owner, unless the registered owner is a rental car
5agency, until after the termination of the impoundment period.

6(2) The legal owner or the legal owner’s agent shall not
7relinquish the vehicle to the registered owner until the registered
8owner or that owner’s agent presents his or her valid driver’s
9license or valid temporary driver’s license to the legal owner or
10the legal owner’s agent. The legal owner or the legal owner’s agent
11shall make every reasonable effort to ensure that the license
12presented is valid.

13(3) Prior to relinquishing the vehicle, the legal owner may
14require the registered owner to pay all towing and storage charges
15related to the impoundment and any administrative charges
16authorized under Section 22850.5 that were incurred by the legal
17owner in connection with obtaining custody of the vehicle.

18(j) (1) A vehicle removed and seized under subdivision (b) or
19(c) shall be released to a rental agency prior to the end of the
20impoundment period if the agency is either the legal owner or
21registered owner of the vehicle and the agency pays all towing and
22storage fees related to the seizure of the vehicle.

23(2) The owner of a rental vehicle that was seized under this
24section may continue to rent the vehicle upon recovery of the
25vehicle. However, the rental agency shall not rent another vehicle
26to the driver of the vehicle that was seized until the impoundment
27period has expired.

28(3) The rental agency may require the person to whom the
29vehicle was rented to pay all towing and storage charges related
30to the impoundment and any administrative charges authorized
31under Section 22850.5 that were incurred by the rental agency in
32connection with obtaining custody of the vehicle.

33(k) Notwithstanding any other provision of this section, the
34registered owner, and not the legal owner, shall remain responsible
35for any towing and storage charges related to the impoundment,
36any administrative charges authorized under Section 22850.5, and
37any parking fines, penalties, and administrative fees incurred by
38the registered owner.

P19   1(l) The impounding agency is not liable to the registered owner
2for the improper release of the vehicle to the legal owner or the
3legal owner’s agent provided the release complies with this section.

4(m) This section does not authorize the impoundment of
5privately owned personal vehiclesbegin insert that are not common carriersend insert
6 nor the impoundment of vehicles used in transportation for
7compensation by charter-party carriers that are not required to
8carry individual permits.

9(n) For the purposes of this section, a “charter-party carrier”
10means a charter-party carrier of passengers as defined by Section
115360 of the Public Utilities Code.

12(o) For purposes of this section, a “passenger stage corporation”
13means a passenger stage corporation as defined by Section 226 of
14the Public Utilities Code.



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