Amended in Assembly September 3, 2015

Amended in Assembly August 31, 2015

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, to add Sections 1046 and 5417.5 to, and to add and repeal Sections 918.1 and 918.2 of, 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 tobegin delete assess its capabilitiesend deletebegin insert hire an independent entity for not more than $250,000 to, in consultation with carrier trade associations for industries under the jurisdiction of the commission, assess the commission’s capabilitiesend insert 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 so 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 so that peace officers can notify the commission 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.

begin insert

(5) This bill would incorporate additional changes in Section 5387 of the Public Utilities Code proposed by SB 697 that would become operative only if SB 697 and this bill are both chaptered and become effective on or before January 1, 2016, and this bill is chaptered last.

end insert

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 918.1 is added to the Public Utilities Code, to
26read:

27

918.1.  

(a) The commission shallbegin delete assess its capabilitiesend deletebegin insert hire an
28independent entity for not more than two hundred fifty thousand
29dollars ($250,000) to, in consultation with carrier trade
30associations for industries under the jurisdiction of the commission,
31assess the commission’s capabilitiesend insert
to carry out the activities
32specified in subdivision (b) of Section 5102 and shall report to the
33Legislature no later than January 1, 2017. The report shall contain
34an analysis of current capabilities and deficiencies, and
35recommendations to overcome any deficiencies identified.

36(b) The report shall be submitted in compliance with Section
379795 of the Government Code.

P6    1(c) Pursuant to Section 10231.5 of the Government Code, this
2section shall remain in effect only until January 1, 2021, and as of
3that date is repealed, unless a later enacted statute, that is enacted
4 before January 1, 2021, deletes or extends that date.

5

SEC. 3.  

Section 918.2 is added to the Public Utilities Code, to
6read:

7

918.2.  

(a) The commission shallbegin delete assess its capabilitiesend deletebegin insert hire an
8independent entity for not more than two hundred fifty thousand
9dollars ($250,000) to, in consultation with carrier trade
10associations for industries under the jurisdiction of the commission,
11assess the commission’s capabilitiesend insert
to carry out the activities
12specified in subdivision (b) of Section 5352 and shall report to the
13Legislature no later than January 1, 2017. The report shall contain
14an analysis of current capabilities and deficiencies, and
15recommendations to overcome any deficiencies identified.

16(b) The report shall be submitted in compliance with Section
179795 of the Government Code.

18(c) Pursuant to Section 10231.5 of the Government Code, this
19section shall remain in effect only until January 1, 2021, and as of
20that date is repealed, unless a later enacted statute, that is enacted
21before January 1, 2021, deletes or extends that date.

22(d) The commission may combine the information required to
23be reported by this section with the report prepared pursuant to
24Section 918.1.

25

SEC. 4.  

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

27

1046.  

(a) For purposes of this section, the following terms
28have the following meanings:

29(1) “Bus” means a vehicle designed, used, or maintained for
30carrying more than 10 persons, including the driver, which is used
31to transport persons for compensation or profit.

32(2) “Limousine” means any sedan or sport utility vehicle, of
33either standard or extended length, with a seating capacity of not
34more than 10 passengers including the driver, used in the
35transportation of passengers for hire on a prearranged basis within
36this state, and includes a modified limousine as defined in Section
371042.1.

38(3) “Peace officer” means a person who is designated as a peace
39officer pursuant to Chapter 4.5 (commencing with Section 830)
40of Title 3 of Part 2 of the Penal Code.

P7    1(b) A peace officer may, with respect to a passenger stage
2corporation, enforce and assist in the enforcement of Sections 2110
3and 2112, resulting from a violation of Section 1031, 1041, or
4 1045, or more than one of those sections. A peace officer may
5additionally enforce and assist in the enforcement of Sections
61034.5 and 2119. In any case in which an arrest authorized by this
7subdivision is made for an offense declared to be a misdemeanor,
8and the person arrested does not demand to be taken before a
9magistrate, the arresting peace officer may, instead of taking such
10person before a magistrate, follow the procedure prescribed by
11Chapter 5C (commencing with Section 853.5) of Title 3 of Part 2
12of the Penal Code. The provisions of that chapter shall thereafter
13apply with reference to any proceeding based upon the issuance
14of a citation pursuant to this authority.

15(c) A peace officer may impound a bus or limousine operated
16by a passenger stage corporation pursuant to Section 14602.9 of
17the Vehicle Code if the peace officer determines that any of the
18following violations occurred while the driver was operating the
19vehicle:

20(1) The driver was operating the bus or limousine when the
21passenger stage corporation did not have a certificate of public
22convenience and necessity issued by the commission as required
23pursuant to this article.

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

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) The commission shall coordinate enforcement of this section
31with those peace officers likely to be involved in enforcing this
32section, including undertaking both of the following:

33(1) Educational outreach to promote awareness among those
34peace officers about the requirements of Sections 1031, 1034.5,
351041, 1045, 2110, 2112, and 2119.

36(2) Establishing lines of communication so that the commission
37is notified if an action is commenced to enforce the requirements
38of those sections specified in subdivision (b), so that the
39commission may take appropriate action to enforce the fine and
40penalty provisions of Chapter 11 (commencing with Section 2100).

P8    1(e) The Legislature finds and declares that this section is
2intended to facilitate and enhance the commission’s performance
3of its functions pursuant to Section 2101 and not diminish the
4commission’s authority or responsibility pursuant to that section.

5(f) This section does not authorize the impoundment of privately
6owned personal vehicles that are not common carriers nor the
7impoundment of vehicles used in transportation for compensation
8by charter-party carriers of passengers that are not required to carry
9individual permits.

10

SEC. 5.  

Section 5102 of the Public Utilities Code is amended
11to read:

12

5102.  

(a) The use of the public highways for the transportation
13of used household goods and personal effects for compensation is
14a business affected with a public interest. It is the purpose of this
15chapter to preserve for the public the full benefit and use of public
16highways consistent with the needs of commerce without
17unnecessary congestion or wear and tear upon those highways; to
18secure to the people just, reasonable, and nondiscriminatory rates
19for transportation by carriers operating upon the highways; to
20secure full and unrestricted flow of traffic by motor carriers over
21the highways that will adequately meet reasonable public demands
22by providing for the regulation of rates of all carriers so that
23adequate and dependable service by all necessary carriers shall be
24maintained and the full use of the highways preserved to the public;
25and to promote fair dealing and ethical conduct in the rendition of
26services involving or incident to the transportation of household
27goods and personal effects.

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

30(1) Prioritize the timely processing of applications and hold
31“application workshops” for potential applicants around the state.

32(2) Enable electronic filing of applications, reports, and fee
33payments.

34(3) Dedicate staff to answering telephone calls, mailings, and
35 electronic inquiries from carriers.

36(4) Prioritize the timely processing of consumer complaints.

37(5) Implement electronic case tracking of complaints and their
38disposition.

39(6) Implement a process for appropriate and timely enforcement
40against illegally operating carriers, including by performing
P9    1staff-driven investigations and performing enforcement through
2sting operations and other forms of presence in the field.

3(7) Maintain relationships with, and implement outreach and
4education programs to, local law enforcement, district attorneys,
5and airports, and coordinate with law enforcement agencies
6pursuant to subdivision (d) of Section 1046, subdivision (d) of
7Section 5317.5, and subdivision (d) of Section 5417.5.

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

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

13

SEC. 6.  

Section 5317.5 of the Public Utilities Code is amended
14to read:

15

5317.5.  

(a) The commission shall ensure that this chapter is
16enforced and obeyed, and that violations thereof are promptly
17prosecuted and that penalty moneys due to the state are recovered
18and collected, and to this end it may sue in the name of the people
19of the State of California. Upon the request of the commission,
20the Attorney General or the district attorney of the proper county
21or city and county may aid in any investigation, hearing, or trial
22had under this chapter.

23(b) For purposes of this section, “peace officer” means a person
24designated as a peace officer pursuant to Chapter 4.5 (commencing
25with Section 830) of Title 3 of Part 2 of the Penal Code.

26(c) A peace officer may enforce and assist in the enforcement
27of Sections 5311 and 5312, resulting from a violation of Section
285132, 5133, 5140, or 5286, or more than one of those sections. A
29peace officer may additionally enforce and assist in the enforcement
30of Sections 5311.3 and 5314.5. In any case in which an arrest
31authorized by this subdivision is made for an offense declared to
32be a misdemeanor, and the person arrested does not demand to be
33taken before a magistrate, the arresting peace officer may, instead
34of taking such person before a magistrate, follow the procedure
35prescribed by Chapter 5C (commencing with Section 853.5) of
36Title 3 of Part 2 of the Penal Code. The provisions of that chapter
37shall thereafter apply with reference to any proceeding based upon
38the issuance of a citation pursuant to this authority.

P10   1(d) The commission shall coordinate enforcement of this section
2with those peace officers likely to be involved in enforcing this
3section, including undertaking both of the following:

4(1) Educational outreach to promote awareness among those
5peace officers about the requirements of Sections 5132, 5133,
65140, 5286, 5311, 5311.3, 5312, and 5314.5.

7(2) Establishing lines of communication so that the commission
8is notified if an action is commenced to enforce the requirements
9of those sections specified in subdivision (c), so that the
10commission may take appropriate action to enforce the fine and
11penalty provisions of this article.

12(e) The Attorney General, a district attorney of the proper county
13or city and county, or a city attorney may institute and prosecute
14actions or proceedings for the violation of any law committed in
15connection with, or arising from, a transaction involving the
16transportation of household goods and personal effects.

17

SEC. 7.  

Section 5352 of the Public Utilities Code is amended
18to read:

19

5352.  

(a) The use of the public highways for the transportation
20of passengers for compensation is a business affected with a public
21interest. It is the purpose of this chapter to preserve for the public
22full benefit and use of public highways consistent with the needs
23of commerce without unnecessary congestion or wear and tear
24upon the highways; to secure to the people adequate and
25dependable transportation by carriers operating upon the highways;
26to secure full and unrestricted flow of traffic by motor carriers
27over the highways which will adequately meet reasonable public
28demands by providing for the regulation of all transportation
29agencies with respect to accident indemnity so that adequate and
30dependable service by all necessary transportation agencies shall
31be maintained and the full use of the highways preserved to the
32public; and to promote carrier and public safety through its safety
33enforcement regulations.

34(b) To achieve the purposes of subdivision (a) the commission
35shall do all of the following:

36(1) Prioritize the timely processing of applications and hold
37“application workshops” for potential applicants around the state.

38(2) Enable electronic filing of applications, reports, and fee
39payments.

P11   1(3) Dedicate staff to answering telephone calls, mailings, and
2electronic inquiries from carriers.

3(4) Prioritize the timely processing of consumer complaints.

4(5) Implement electronic case tracking of complaints and their
5disposition.

6(6) Implement a process for appropriate and timely enforcement
7against illegally operating carriers, including by performing
8staff-driven investigations and performing enforcement through
9sting operations and other forms of presence in the field.

10(7) Maintain relationships with, and implement outreach and
11education programs to, local law enforcement, district attorneys,
12and airports, and coordinate with law enforcement agencies
13pursuant to subdivision (d) of Section 1046, subdivision (d) of
14Section 5317.5, and subdivision (d) of Section 5417.5.

15(8) Meet with carrier trade associations at least annually.

16(9) Implement a consolidated case tracking system that integrates
17each of the transportation program core functions and data
18collection, administrative compliance details, complaints, and
19investigations.

20

SEC. 8.  

Section 5359 of the Public Utilities Code is amended
21to read:

22

5359.  

(a) “Motor vehicle” means a vehicle which is
23self-propelled.

24(b) “Bus” means a vehicle designed, used, or maintained for
25carrying more than 10 persons, including the driver, which is used
26to transport persons for compensation or profit.

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

33

SEC. 9.  

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 vehicles that are not common carriers nor the
17impoundment of vehicles used in transportation for compensation
18by charter-party carriers of passengers that are not required to carry
19individual permits.

20begin insert

begin insertSEC. 9.5.end insert  

end insert

begin insertSection 5387 of the end insertbegin insertPublic Utilities Codeend insertbegin insert is amended
21to read:end insert

22

5387.  

(a) It is unlawful for the owner of a charter-party carrier
23of passengers to permit the operation of a vehicle upon a public
24highway for compensation without (1) having obtained from the
25commission a certificate or permit pursuant to this chapter, (2)
26having complied with the vehicle identification requirements of
27Sectionbegin delete 5385 or 5385.5,end deletebegin insert 5385,end insert and (3) having complied with the
28accident liability protection requirements of Section 5391.

29(b) A person who drives a bus for a charter-party carrier without
30having a current and valid driver’s license of the proper class, a
31passenger vehicle endorsement, or the required certificate shall be
32suspended from driving a bus of any kind, including, but not
33limited to, a bus, schoolbus, school pupil activity bus, or transit
34bus, with passengers for a period of five years pursuant to Section
3513369 of the Vehicle Code.

36(c) (1) A charter-party carrier shall have its authority to operate
37as a charter-party carrier permanently revoked by the commission
38or be permanently barred from receiving a permit or certificate
39from the commission if it commits any of the following acts:

P14   1(A) Operates a bus without having been issued a permit or
2certificate from the commission.

3(B) Operates a bus with a permit that was suspended by the
4commission pursuant to Section 5378.5.

5(C) Commits three or more liability insurance violations within
6a two-year period for which it has been cited.

7(D) Operates a bus with a permit that was suspended by the
8commission during a period that the charter-party carrier’s liability
9insurance lapsed for which it has been cited.

10(E) Knowingly employs a busdriver who does not have a current
11and valid driver’s license of the proper class, a passenger vehicle
12endorsement, or the required certificate to drive a bus.

13(F) Has one or more buses improperly registered with the
14Department of Motor Vehicles.

15(2) The commission shall not issue a new permit or certificate
16to operate as a charter-party carrier if any officer, director, or owner
17of that charter-party carrier was an officer, director, or owner of
18a charter-party carrier that had its authority to operate as a
19charter-party carrier permanently revoked by the commission or
20that was permanently barred from receiving a permit or certificate
21from the commission pursuant to this subdivision.

22(d) begin deleteAn officer of the Department of the California Highway
23Patrol end delete
begin insertA peace officer, as designated pursuant to Chapter 4.5
24(commencing with Section 830) of Title 3 of Part 2 of the Penal
25Code, end insert
may impound a busbegin insert or limousineend insert of a charter-party carrier
26begin insert of passengersend insert for 30 days pursuant to Section 14602.9 of the
27 Vehicle Code if thebegin insert peaceend insert officer determines that any of the
28following violations occurred while thebegin delete busdriverend deletebegin insert driverend insert was
29operating the busbegin insert or limousineend insert ofbegin delete aend deletebegin insert theend insert charter-party carrier:

30(1) The driver was operating the busbegin insert or limousineend insert of a
31charter-party carrierbegin insert of passengersend insert when the charter-party carrier
32begin insert of passengersend insert did not have a permit or certificate issued by the
33commission.

34(2) The driver was operating the busbegin insert or limousineend insert of a
35charter-party carrierbegin insert of passengersend insert when the charter-party carrier
36begin insert of passengersend insert was operatingbegin delete the busend delete with a suspended permit or
37certificate from the commission.

38(3) The driver was operating the busbegin insert or limousineend insert of a
39charter-party carrierbegin insert of passengersend insert without having a current and
P15   1valid driver’s license of the proper class, a passenger vehicle
2endorsement, or the required certificate.

begin insert

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

end insert
8

SEC. 10.  

Section 5417.5 is added to the Public Utilities Code,
9to read:

10

5417.5.  

(a) The commission shall ensure that this chapter is
11enforced and obeyed, and that violations thereof are promptly
12prosecuted and that penalty moneys due to the state are recovered
13and collected, and to this end it may sue in the name of the people
14of the State of California. Upon the request of the commission,
15the Attorney General or the district attorney of the proper county
16or city and county may aid in any investigation, hearing, or trial
17under this chapter. The Attorney General, a district attorney of the
18proper county or city and county, or a city attorney may institute
19and prosecute actions or proceedings for the violation of any law
20committed in connection with, or arising from, a transaction
21involving a charter-party carrier of passengers.

22(b) For purposes of this section, “peace officer” means a person
23designated as a peace officer pursuant to Chapter 4.5 (commencing
24with Section 830) of Title 3 of Part 2 of the Penal Code.

25(c) A peace officer may enforce and assist in the enforcement
26of Sections 5411 and 5412 resulting from a violation of Section
275371, 5379, 5385, 5385.7, or 5387, or more than one of those
28sections. A peace officer may additionally enforce and assist in
29the enforcement of Sections 5411.3 and 5414.5. In any case in
30which an arrest authorized by this subdivision is made for an
31offense declared to be a misdemeanor, and the person arrested
32does not demand to be taken before a magistrate, the arresting
33peace officer may, instead of taking such person before a
34magistrate, follow the procedure prescribed by Chapter 5C
35(commencing with Section 853.5) of Title 3 of Part 2 of the Penal
36Code. The provisions of that chapter shall thereafter apply with
37reference to any proceeding based upon the issuance of a citation
38pursuant to this authority.

P16   1(d) The commission shall coordinate enforcement of this section
2with those peace officers likely to be involved in enforcing this
3section, including undertaking both of the following:

4(1) Educational outreach to promote awareness among those
5peace officers about the requirements of Sections 5371, 5379,
65385, 5385.7, 5387, 5411, 5411.3, 5412, and 5414.5.

7(2) Establishing lines of communication so that the commission
8is notified if an action is commenced to enforce the requirements
9of those sections specified in subdivision (c), so that the
10commission may take appropriate action to enforce the fine and
11penalty provisions of this article.

12(e) The Attorney General, a district attorney of the proper county
13or city and county, or a city attorney may institute and prosecute
14actions or proceedings for the violation of any law committed in
15connection with, or arising from, a transaction involving the
16transportation of passengers by a charter-party carrier of
17passengers.

18

SEC. 11.  

Section 14602.9 of the Vehicle Code is amended to
19read:

20

14602.9.  

(a) For purposes of this section, “peace officer” means
21a person designated as a peace officer pursuant to Chapter 4.5
22(commencing with Section 830) of Title 3 of Part 2 of the Penal
23Code.

24(b) A peace officer may impound a bus or limousine of a
25charter-party carrier for 30 days if the officer determines that any
26of the following violations occurred while the driver was operating
27the bus or limousine of the charter-party carrier:

28(1) The driver was operating the bus or limousine of a
29charter-party carrier when the charter-party carrier did not have a
30permit or certificate issued by the Public Utilities Commission,
31pursuant to Section 5375 of the Public Utilities Code.

32(2) The driver was operating the bus or limousine of a
33charter-party carrier when the charter-party carrier was operating
34with a suspended permit or certificate from the Public Utilities
35Commission.

36(3) The driver was operating the bus or limousine of a
37charter-party carrier without having a current and valid driver’s
38license of the proper class, a passenger vehicle endorsement, or
39the required certificate.

P17   1(c) A peace officer may impound a bus or limousine belonging
2to a passenger stage corporation for 30 days if the officer
3determines any of the following violations occurred while the
4driver was operating the bus or limousine:

5(1) The driver was operating the bus or limousine when the
6passenger stage corporation did not have a certificate of public
7convenience and necessity issued by the Public Utilities
8Commission as required pursuant to Article 2 (commencing with
9Section 1031) of Chapter 5 of Part 1 of Division 1 of the Public
10Utilities Code.

11(2) The driver was operating the bus or limousine when the
12operating rights or certificate of public convenience and necessity
13of a passenger stage corporation was suspended, canceled, or
14revoked pursuant to Section 1033.5, 1033.7, or 1045 of the Public
15Utilities Code.

16(3) The driver was operating the bus or limousine without having
17a current and valid driver’s license of the proper class.

18(d) Within two working days after impoundment, the
19impounding agency shall send a notice by certified mail, return
20receipt requested, to the legal owner of the vehicle, at the address
21obtained from the department, informing the owner that the vehicle
22has been impounded. Failure to notify the legal owner within two
23working days shall prohibit the impounding agency from charging
24for more than 15 day’s impoundment when the legal owner
25redeems the impounded vehicle. The impounding agency shall
26maintain a published telephone number that provides information
2724 hours a day regarding the impoundment of vehicles and the
28rights of a registered owner to request a hearing.

29(e) The registered and legal owner of a vehicle that is removed
30and seized under subdivision (b) or (c) or his or her agent shall be
31provided the opportunity for a storage hearing to determine the
32validity of, or consider any mitigating circumstances attendant to,
33the storage, in accordance with Section 22852.

34(f) (1) The impounding agency shall release the vehicle to the
35registered owner or his or her agent prior to the end of the
36impoundment period under any of the following circumstances:

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

38(B) When the vehicle is subject to bailment and is driven by an
39unlicensed employee of a business establishment, including a
40parking service or repair garage.

P18   1(C) When, for a charter-party carrier of passengers, the driver
2of the vehicle is not the sole registered owner of the vehicle and
3the vehicle is being released to another registered owner of the
4vehicle who agrees not to allow the driver to use the vehicle until
5after the end of the impoundment period and the charter-party
6carrier has been issued a valid permit from the Public Utilities
7Commission, pursuant to Section 5375 of the Public Utilities Code.

8(D) When, for a passenger stage corporation, the driver of the
9vehicle is not the sole registered owner of the vehicle and the
10vehicle is being released to another registered owner of the vehicle
11who agrees not to allow the driver to use the vehicle until after the
12end of the impoundment period and the passenger stage corporation
13has been issued a valid certificate of public convenience and
14necessity by the Public Utilities Commission, pursuant to Article
152 (commencing with Section 1031) of Chapter 5 of Part 1 of
16Division 1 of the Public Utilities Code.

17(2) A vehicle shall not be released pursuant to this subdivision
18without presentation of the registered owner’s or agent’s currently
19valid driver’s license to operate the vehicle and proof of current
20vehicle registration, or upon order of a court.

21(g) The registered owner or his or her agent is responsible for
22all towing and storage charges related to the impoundment, and
23any administrative charges authorized under Section 22850.5.

24(h) A vehicle removed and seized under subdivision (b) or (c)
25shall be released to the legal owner of the vehicle or the legal
26owner’s agent prior to the end of the impoundment period if all of
27the following conditions are met:

28(1) The legal owner is a motor vehicle dealer, bank, credit union,
29acceptance corporation, or other licensed financial institution
30legally operating in this state, or is another person who is not the
31registered owner and holds a security interest in the vehicle.

32(2) The legal owner or the legal owner’s agent pays all towing
33and storage fees related to the seizure of the vehicle. A lien sale
34processing fee shall not be charged to the legal owner who redeems
35the vehicle prior to the 10th day of impoundment. The impounding
36authority or any person having possession of the vehicle shall not
37collect from the legal owner of the type specified in paragraph (1),
38or the legal owner’s agent, any administrative charges imposed
39pursuant to Section 22850.5 unless the legal owner voluntarily
40requested a poststorage hearing.

P19   1(3) (A) The legal owner or the legal owner’s agent presents
2either lawful foreclosure documents or an affidavit of repossession
3for the vehicle, and a security agreement or title showing proof of
4legal ownership for the vehicle. All presented documents may be
5originals, photocopies, or facsimile copies, or may be transmitted
6electronically. The impounding agency shall not require a
7document to be notarized. The impounding agency may require
8the agent of the legal owner to produce a photocopy or facsimile
9copy of its repossession agency license or registration issued
10pursuant to Chapter 11 (commencing with Section 7500) of
11Division 3 of the Business and Professions Code, or to demonstrate,
12to the satisfaction of the impounding agency, that the agent is
13exempt from licensure pursuant to Section 7500.2 or 7500.3 of the
14Business and Professions Code.

15(B) Administrative costs authorized under subdivision (a) of
16Section 22850.5 shall not be charged to the legal owner of the type
17 specified in paragraph (1), who redeems the vehicle unless the
18legal owner voluntarily requests a poststorage hearing. A city,
19county, or state agency shall not require a legal owner or a legal
20owner’s agent to request a poststorage hearing as a requirement
21for release of the vehicle to the legal owner or the legal owner’s
22agent. The impounding agency shall not require any documents
23other than those specified in this paragraph. The impounding
24agency shall not require any documents to be notarized.

25(C) As used in this paragraph, “foreclosure documents” means
26an “assignment” as that term is defined in subdivision (b) of
27Section 7500.1 of the Business and Professions Code.

28(i) (1) A legal owner or the legal owner’s agent who obtains
29release of the vehicle pursuant to subdivision (h) may not release
30the vehicle to the registered owner of the vehicle or any agents of
31the registered owner, unless the registered owner is a rental car
32agency, until after the termination of the impoundment period.

33(2) The legal owner or the legal owner’s agent shall not
34relinquish the vehicle to the registered owner until the registered
35owner or that owner’s agent presents his or her valid driver’s
36license or valid temporary driver’s license to the legal owner or
37the legal owner’s agent. The legal owner or the legal owner’s agent
38shall make every reasonable effort to ensure that the license
39presented is valid.

P20   1(3) Prior to relinquishing the vehicle, the legal owner may
2require the registered owner to pay all towing and storage charges
3related to the impoundment and any administrative charges
4authorized under Section 22850.5 that were incurred by the legal
5owner in connection with obtaining custody of the vehicle.

6(j) (1) A vehicle removed and seized under subdivision (b) or
7(c) shall be released to a rental agency prior to the end of the
8impoundment period if the agency is either the legal owner or
9registered owner of the vehicle and the agency pays all towing and
10storage fees related to the seizure of the vehicle.

11(2) The owner of a rental vehicle that was seized under this
12section may continue to rent the vehicle upon recovery of the
13vehicle. However, the rental agency shall not rent another vehicle
14to the driver of the vehicle that was seized until the impoundment
15period has expired.

16(3) The rental agency may require the person to whom the
17vehicle was rented to pay all towing and storage charges related
18to the impoundment and any administrative charges authorized
19under Section 22850.5 that were incurred by the rental agency in
20connection with obtaining custody of the vehicle.

21(k) Notwithstanding any other provision of this section, the
22registered owner, and not the legal owner, shall remain responsible
23for any towing and storage charges related to the impoundment,
24any administrative charges authorized under Section 22850.5, and
25any parking fines, penalties, and administrative fees incurred by
26the registered owner.

27(l) The impounding agency is not liable to the registered owner
28for the improper release of the vehicle to the legal owner or the
29legal owner’s agent provided the release complies with this section.

30(m) This section does not authorize the impoundment of
31privately owned personal vehicles that are not common carriers
32nor the impoundment of vehicles used in transportation for
33compensation by charter-party carriers that are not required to
34carry individual permits.

35(n) For the purposes of this section, a “charter-party carrier”
36means a charter-party carrier of passengers as defined by Section
375360 of the Public Utilities Code.

38(o) For purposes of this section, a “passenger stage corporation”
39means a passenger stage corporation as defined by Section 226 of
40the Public Utilities Code.

P21   1begin insert

begin insertSEC. 12.end insert  

end insert
begin insert

Section 9.5 of this bill incorporates amendments to
2Section 5387 of the Public Utilities Code proposed by both this
3bill and Senate Bill 697. It shall only become operative if (1) both
4bills are enacted and become effective on or before January 1,
52016, (2) each bill amends Section 5387 of the Public Utilities
6Code, and (3) this bill is enacted after Senate Bill 697, in which
7case Section 9 of this bill shall not become operative.

end insert


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