Amended in Senate April 12, 2016

Amended in Senate March 17, 2016

Amended in Senate February 12, 2016

Senate BillNo. 812


Introduced by Senator Hill

(Principal coauthors: Assembly Members Chiu and Ting)

January 4, 2016


An act to amendbegin delete Section 5373.1end deletebegin insert Sections 1033.7,end insertbegin insert 5373.1, and 5378.5end insert of, and to add Sections 1033.6 and 5374.4 to, the Public Utilities Code, and to amend Sections 612, 34501, 34505, 34505.1, and 34513 of, and to addbegin delete Sectionsend deletebegin insert Sectionend insert 34505.2begin delete and 34505.3end delete to, the Vehicle Code, relating tobegin delete vehicles.end deletebegin insert transportation.end insert

LEGISLATIVE COUNSEL’S DIGEST

SB 812, as amended, Hill. Charter-party carriers of passengers and passenger stage corporations.

(1) Existing law defines a tour bus to include any bus operated by or for a charter-party carrier of passengers or a passenger stage corporation, with a bus in this respect defined to mean any vehicle designed, used, or maintained for carrying more than 10 persons, including the driver. Existing law provides for the Department of the California Highway Patrol to regulate the safe operation of various classes of vehicles, including tour buses. Existing law requires charter-party carriers of passengers, upon initial application and annually thereafter, to pay tour bus terminal inspection fees of $15 per tour bus, up to a maximum of $6,500, to offset the costs of inspections of the Department of the California Highway Patrol, and requires the Public Utilities Commission to collect these fees and to deposit fee revenues in the Motor Vehicle Account. Existing law does not impose similar fees on passenger stage corporations. A violation of various statutes and regulations governing tour buses and operators of tour buses is a crime.

Existing law also requires the Department of the California Highway Patrol, at least once every 13 months, to inspect every maintenance facility or terminal of any person who at any time operates any bus. Existing law requires that if the bus operation includes more than 100 buses, the inspection shall be without prior notice.begin insert Existing law requires the Public Utilities Commission, pending a hearing in the matter, to suspend the operating certificate of a charter-party carrier of passengers or a passenger stage corporation upon receipt of a written recommendation from the department for, among other things, failure to maintain any vehicle used in transportation for compensation in a safe operating condition. Existing law also requires, among other things, upon a determination by the department that a tour bus or modified limousine carrier has failed to maintain any vehicle used in transportation for compensation in a safe operating condition such that the failure presents an imminent danger to public safety, that the department shall recommend to the commission that the carrier’s operating authority be suspended, denied, or revoked, or to the United States Department of Transportation that appropriate administrative action be taken against the carrier’s interstate operating authority, whichever is appropriate.end insert

This bill wouldbegin insert require the department, if a tour bus or modified limousine carrier has received an unsatisfactory compliance rating for a 3 consecutive terminal inspections, as specified, to recommend to the commission that the carrier’s operating authority be suspended, denied, or revoked, or to the United States Department of Transportation that appropriate administrative action be taken against the carrier’s interstate operating authority, whichever is appropriate. The bill would also require the commission to suspend an operating certificate of a charter-party carrier of passengers or a passenger stage corporation in those circumstances. The bill wouldend insert additionally authorize the department to inspect a maintenance facility or terminal that receives 2 or more successive satisfactory ratings once every 26 months. The bill would also require the department to inspect a maintenance facility or terminal that receives an unsatisfactory rating every 6 months until the operator achieves a satisfactory rating, unless the satisfactory rating is the result of a reinspection, as specified.

This bill would require the Department of the California Highway Patrol, by regulation, to develop and adopt bus terminal inspection fees that are scaled and applicable to charter-party carriers of passengers and passenger stage corporations that operate one or more tour buses, to replace existing fees, in an amount sufficient to offset the costs to administer the inspection program for these companies, as specified. The bill would require the fees to be collected by the Public Utilities Commission in the case of charter-party carriers of passengers or as otherwise required by the regulations. The bill would provide that an operating carrier may not be charged more than $6,500 in fees. The bill would make other conforming changes.

This bill would require the Department of the California Highway Patrol, by regulation, to modify its existing tour bus terminal inspection program, beginning no later than January 1, 2018, to ensure that the performance-based program targets companies that are noncompliant, have a history of noncompliance with safety laws or regulations, or have received unsatisfactory ratings and to prioritize those companies for unannounced surprise inspections. The bill would also require no fewer than 10% of the total number of tour bus carrier inspections conducted by the department to be unannounced surprise inspections. The bill would require the department to conduct a followup inspection 30 days after an operator receives an unsatisfactory rating.

This bill would require a charter-party carrier of passengers or a passenger stagebegin delete corporation,end deletebegin insert corporation that has received an unsatisfactory rating and is currently being inspected every 6 months,end insert prior to operating a newly acquired tour bus that is more than 2 years old, to first schedule an inspection of the tour bus with, and obtain a satisfactory rating for the tour bus from, the department. The bill would also require the Department of the California Highway Patrol, upon determining that the condition of a tour bus is such that it has multiple safety violations of a nature that operation of the tour bus could constitute an imminent danger to public safety, to immediately order the tour bus out of service, and would prohibit operation of the tour bus until all of the safety violations have been corrected and the department has verified the correction of the safety violations upon a subsequent inspection of the tour bus. By changing the definition of existing crimes and creating new crimes, the bill would impose a state-mandated local program.

begin delete

This bill would require, beginning January 1, 2018, a charter-party carrier of passengers or a passenger stage corporation operating tour buses that applies for renewal of the registration of its vehicles to provide proof of its most recent bus terminal inspection with a satisfactory rating by the department.

end delete

This bill would also require the Department of the California Highway Patrol to conduct a comprehensive review of the statutes and regulations governing tour buses, as well as buses generally, with the objective of identifying opportunities for simplification, consolidation, avoidance of duplication, and consistent use of terminology, as specified. The bill would require a report containing the department’s recommendations for proposed statutory changes to be submitted to the policy committees of both houses of the Legislature with responsibility for transportation matters by January 1, 2018.

(2) Existing law provides for the regulation of passenger stage corporations and charter-party carriers of passengers by the Public Utilities Commission.

This bill would require the commission to monitor the recall notifications of the National Highway Traffic Safety Administration (NHTSA) relative to buses, limousines, and modified limousines operated by passenger stage corporations and charter-party carriers of passengers. The bill would require the commission, upon determining that a bus, limousine, or modified limousine is the subject of a safety recall by NHTSA that involves parts or accessories necessary for the safe operation of the vehicle, as defined, to contact any passenger stage corporation or charter-party carrier of passengers affected by the recall to ensure that the certificate holder or permittee is aware of it and has a plan in place to correct the defect. The bill would authorize the commission to issue an out-of-service order for any vehicle affected by the recall until the recall repair is completed. Because a violation of provisions governing passenger stage corporations and charter-party carriers of passengers is a crime, this bill would impose a state-mandated local program by creating new crimes.

(3) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

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

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

P5    1

SECTION 1.  

Section 1033.6 is added to the Public Utilities
2Code
, to read:

3

1033.6.  

(a) The commission shall monitor the recall
4notifications of the National Highway Traffic Safety
5Administration (NHTSA) relative to buses, limousines, and
6modified limousines operated by passenger stage corporations in
7this state and shall subscribe to NHTSA’s electronic mail
8notification system.

9(b) (1) Upon determining that a bus, limousine, or modified
10limousine of a passenger stage corporation is the subject of a safety
11recall by NHTSA that involves parts or accessories necessary for
12the safe operation of the vehicle, the commission shall immediately
13contact any passenger stage corporation affected by the recall to
14ensure that the certificate holder or permittee is aware of the recall
15and has a plan in place to correct the defect.

16(2) As used in this section, “parts or accessories necessary for
17the safe operation of the vehicle” has the same meaning as
18described in Part 393 of Title 49 of the Code of Federal
19Regulations.

20(c) The commission may issue an out-of-service order for any
21vehicle affected by the recall if the recall involves parts or
22accessories necessary for the safe operation of the vehicle, which
23order shall remain in effect until the recall repair of the vehicle is
24completed.

25begin insert

begin insertSEC. end insertbegin insert2end insertbegin insert.end insert  

end insert

begin insertSection 1033.7 of the end insertbegin insertPublic Utilities Codeend insertbegin insert is amended
26to read:end insert

27

1033.7.  

(a) Upon receipt of a written recommendation from
28the Department of the California Highway Patrol that the certificate
29of a passenger stage corporation be suspendedbegin delete eitherend delete (1) for failure
30to maintain any vehicle used in transportation for compensation
31in a safe operating condition or to comply with the Vehicle Code
32or with regulations contained in Title 13 of the California Code of
33Regulations relative to motor carrier safety, if that failure is either
34a consistent failure or presents an imminent danger to public safety,
35begin delete orend delete (2) for failure to enroll all drivers in the pull notice system as
36required by Section 1808.1 of the Vehicle Code,begin insert or (3) for
37receiving an unsatisfactory compliance rating in three consecutive
38terminal inspections as specified in subdivision (c) of Section
P6    134505.1 of the Vehicle Code,end insert
the commission shall, pending a
2hearing in the matter pursuant to subdivision (d), suspend the
3corporation’s certificate. The department’s written recommendation
4shall specifically indicate compliance with subdivision (c).

5(b) A corporation whose certificate is suspended pursuant to
6subdivision (a) may obtain a reinspection of its terminal and
7vehicles by the department, by submitting a written request for
8reinstatement to the commission and paying a reinstatement fee
9of one hundred twenty-five dollars ($125). The commission shall
10deposit all reinstatement fees collected pursuant to this subdivision
11in the Public Utilities Commission Transportation Reimbursement
12Account. The commission shall forward a request for reinspection
13to the department which shall perform a reinspection within a
14reasonable time. The commission shall reinstate a corporation’s
15certificate suspended under subdivision (a) promptly upon receipt
16of a written recommendation from the department that the
17corporation’s safety compliance has improved to the satisfaction
18of the department, unless the certificate is suspended for another
19reason or has been revoked.

20(c) Before transmitting a recommendation pursuant to
21subdivision (a) to the commission, the Department of the California
22Highway Patrol shall notify the passenger stage corporation in
23writing of all of the following:

24(1) That the department has determined that the corporation’s
25safety record is unsatisfactory, furnishing a copy of any
26documentation or summary of any other evidence supporting the
27 determination.

28(2) That the determination may result in a suspension or
29revocation of the corporation’s certificate by the commission.

30(3) That the corporation may request a review of the
31determination by the department within five days of its receipt of
32the notice required under this subdivision. If a review pursuant to
33this paragraph is requested by the corporation, the department shall
34conduct and evaluate that review prior to transmitting any
35notification to the commission pursuant to subdivision (a).

36(d) Whenever the commission suspends the certificate of any
37passenger stage corporation pursuant to subdivision (a), the
38commission shall furnish the corporation written notice of the
39suspension and shall hold a hearing within a reasonable time, not
40to exceed 21 days, after a written request therefor is filed with the
P7    1commission, with a copy thereof furnished to the Department of
2the California Highway Patrol. At the hearing, the corporation
3shall show cause why the suspension should not be continued. At
4the conclusion of the hearing, the commission may, in addition to
5any other applicable penalty provided in this part, terminate the
6suspension, continue the suspension in effect, or revoke the
7certificate. The commission may revoke the certificate of any
8passenger stage corporation suspended pursuant to subdivision (a)
9at any time 90 days or more after its suspension if the commission
10has not received a written recommendation for reinstatement from
11the department and the corporation has not filed a written request
12for a hearing with the commission.

13(e) If the commission, after a hearing, finds that a passenger
14stage corporation has continued to operate as such after its
15certificate has been suspended pursuant to subdivision (a), the
16commission shall do one of the following:

17(1) Revoke the certificate of the corporation.

18(2) Impose upon the holder of the certificate a civil penalty of
19not less than one thousand dollars ($1,000) nor more than five
20thousand dollars ($5,000) for each day of unlawful operations.

21

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

Section 5373.1 of the Public Utilities Code is amended
23to read:

24

5373.1.  

(a) Each application for a charter-party carrier of
25passengers certificate or permit shall be accompanied by a filing
26fee as follows:

27(1) Class A certificates (new): one thousand five hundred dollars
28($1,500).

29(2) Class A certificates (renewal): one hundred dollars ($100).

30(3) Class B certificates (new): one thousand dollars ($1,000).

31(4) Class B certificates (renewal): one hundred dollars ($100).

32(5) Class C certificates (new): one thousand dollars ($1,000).

33(6) Class C certificates (renewal): one hundred dollars ($100).

34(7) Permits (new): one thousand dollars ($1,000).

35(8) Permits (renewal): one hundred dollars ($100).

36(b) The commission shall also require each application to be
37accompanied by a fee to offset the cost of the charter-party carrier
38bus terminal inspections conducted by the Department of the
39California Highway Patrol. The fee shall be fifteen dollars ($15)
40per tour bus, as defined in Section 612 of the Vehicle Code, or a
P8    1maximum of six thousand five hundred dollars ($6,500) for each
2operating carrier, until the effective date of the new fee structure
3established by the Department of the California Highway Patrol
4pursuant to subdivision (b) of Section 34513 of the Vehicle Code.

5(c) The commission shall require each charter-party carrier that
6operates tour buses, as defined in Section 612 of the Vehicle Code,
7to undergo an annual bus terminal inspection conducted by the
8Department of the California Highway Patrol and to pay an annual
9fee of fifteen dollars ($15) per tour bus, or a maximum of six
10thousand five hundred dollars ($6,500), to offset the cost of the
11inspections, until the effective date of the new fee structure
12established by the Department of the California Highway Patrol
13pursuant to subdivision (b) of Section 34513 of the Vehicle Code.

14(d) The commission shall deposit the fees collected pursuant to
15subdivisions (b) and (c) in the Motor Vehicle Account in the State
16Transportation Fund to cover the costs of the inspections conducted
17by the department as specified in subdivisions (b) and (c). The
18revenues from the fees shall not be used to supplant other sources
19of funding for, or otherwise support, any other inspection program
20conducted by the department.

21

begin deleteSEC. 3.end delete
22
begin insertSEC. 4.end insert  

Section 5374.4 is added to the Public Utilities Code,
23to read:

24

5374.4.  

(a) The commission shall monitor the recall
25notifications of the National Highway Traffic Safety
26Administration (NHTSA) relative to buses, limousines, and
27modified limousines operated by charter-party carriers of
28passengers in this state and shall subscribe to NHTSA’s electronic
29mail notification system.

30(b) (1) Upon determining that a bus, limousine, or modified
31limousine of a charter-party carrier of passengers is the subject of
32a safety recall by NHTSA that involves parts or accessories
33necessary for the safe operation of the vehicle, the commission
34shall immediately contact any charter-party carrier of passengers
35affected by the recall to ensure that the certificate holder or
36permittee is aware of the recall and has a plan in place to correct
37the defect.

38(2) As used in this section, “parts or accessories necessary for
39the safe operation of the vehicle” has the same meaning as
P9    1described in Part 393 of Title 49 of the Code of Federal
2Regulations.

3(c) The commission may issue an out-of-service order for any
4vehicle affected by the recall if the recall, involves parts or
5accessories necessary for the safe operation of the vehicle, which
6order shall remain in effect until the recall repair of the vehicle is
7completed.

8begin insert

begin insertSEC. end insertbegin insert5end insertbegin insert.end insert  

end insert

begin insertSection 5378.5 of the end insertbegin insertPublic Utilities Codeend insertbegin insert is amended
9 to read:end insert

10

5378.5.  

(a) Upon receipt of a written recommendation from
11the Department of the California Highway Patrol that the certificate
12or permit of a charter-party carrier be suspendedbegin delete eitherend delete (1) for
13failure to maintain any vehicle used in transportation for
14compensation in a safe operating condition or to comply with the
15Vehicle Code or with regulations contained in Title 13 of the
16California Code of Regulations relative to motor carrier safety if
17that failure is either a consistent failure or presents an imminent
18danger to public safety,begin delete orend delete (2) for failure to enroll all drivers in the
19pull notice system as required by Section 1808.1 of the Vehicle
20Code,begin insert or (3) for receiving an unsatisfactory compliance rating in
21three consecutive terminal inspections as specified in subdivision
22(c) of Section 34505.1 of the Vehicle Code,end insert
the commission shall,
23pending a hearing in the matter pursuant to subdivision (d), suspend
24the carrier’s certificate or permit. The written recommendation
25shall specifically indicate compliance with subdivision (c).

26(b) A carrier whose certificate or permit is suspended pursuant
27to subdivision (a) may obtain a reinspection of its terminal and
28vehicles by the department, by submitting a written request for
29reinstatement to the commission and paying a reinstatement fee
30of one thousand dollars ($1,000). The commission shall deposit
31all reinstatement fees collected pursuant to this subdivision in the
32Public Utilities Commission Transportation Reimbursement
33Account. The commission shall then forward a request for
34reinspection to the department which shall then perform a
35reinspection within a reasonable time. The commission shall
36reinstate a carrier’s certificate or permit suspended under
37subdivision (a) promptly upon receipt of a written recommendation
38from the department that the carrier’s safety compliance has
39improved to the satisfaction of the department, unless the certificate
40or permit is suspended for another reason, or has been revoked.

P10   1(c) Before transmitting a recommendation pursuant to
2subdivision (a) to the commission, the Department of the California
3Highway Patrol shall notify the charter-party carrier in writing of
4all of the following:

5(1) That the department has determined that the carrier’s safety
6record is unsatisfactory, furnishing a copy of any documentation
7or summary of any other evidence supporting the determination.

8(2) That the determination may result in suspension or
9revocation of the carrier’s certificate or permit by the commission.

10(3) That the carrier may request a review of the determination
11by the department within five days of its receipt of the notice
12required under this subdivision. If a review pursuant to this
13paragraph is requested by the carrier, the department shall conduct
14and evaluate that review prior to transmitting any notification to
15the commission pursuant to subdivision (a).

16(d) Whenever the commission suspends the certificate or permit
17of any charter-party carrier pursuant to subdivision (a), the
18commission shall furnish the carrier written notice of the
19suspension and shall hold a hearing within a reasonable time, not
20to exceed 21 days, after a written request therefor is filed with the
21commission, with a copy thereof furnished to the Department of
22the California Highway Patrol. At the hearing, the carrier shall
23show cause why the suspension should not be continued. At the
24conclusion of the hearing, the commission may, in addition to any
25other penalty provided in this chapter, terminate the suspension,
26continue the suspension in effect, or revoke the certificate or
27permit. The commission may revoke the certificate or permit of
28any carrier suspended pursuant to subdivision (a) at any time 90
29days or more after its suspension if the commission has not
30received a written recommendation for reinstatement from the
31department and the carrier has not filed a written request for a
32hearing with the commission.

33(e) If the commission, after a hearing, finds that a charter-party
34carrier has continued to operate as such a carrier after its certificate
35or permit has been suspended pursuant to subdivision (a), the
36commission shall do one of the following:

37(1) Revoke the operating certificate or permit of the carrier.

38(2) Impose upon the holder of the certificate or permit a civil
39penalty of not less than one thousand five hundred dollars ($1,500)
P11   1nor more than seven thousand five hundred dollars ($7,500) for
2each day of unlawful operations.

3

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

Section 612 of the Vehicle Code is amended to read:

5

612.  

“Tour bus” means a vehicle designed, used, or maintained
6for carrying more than 10 persons, including the driver, which is
7operated by or for a charter-party carrier of passengers, as defined
8in Section 5360 of the Public Utilities Code, or a passenger stage
9corporation, as defined in Section 226 of the Public Utilities Code.

10

begin deleteSEC. 5.end delete
11
begin insertSEC. 7.end insert  

Section 34501 of the Vehicle Code is amended to read:

12

34501.  

(a) (1) The department shall adopt reasonable rules
13and regulations that, in the judgment of the department, are
14designed to promote the safe operation of vehicles described in
15Section 34500, regarding, but not limited to, controlled substances
16and alcohol testing of drivers by motor carriers, hours of service
17of drivers, equipment, fuel containers, fueling operations,
18inspection, maintenance, recordkeeping, accident reports, and
19drawbridges. The rules and regulations shall not, however, be
20applicable to schoolbuses, which shall be subject to rules and
21regulations adopted pursuant to Section 34501.5.

22The rules and regulations shall exempt local law enforcement
23agencies, within a single county, engaged in the transportation of
24 inmates or prisoners when those agencies maintain other motor
25vehicle operations records which furnish hours of service
26information on drivers which are in substantial compliance with
27the rules and regulations. This exemption does not apply to any
28local law enforcement agency engaged in the transportation of
29inmates or prisoners outside the county in which the agency is
30located, if that agency would otherwise be required, by existing
31law, to maintain driving logs.

32(2) The department may adopt rules and regulations relating to
33commercial vehicle safety inspection and out-of-service criteria.
34In adopting the rules and regulations, the commissioner may
35consider the commercial vehicle safety inspection and
36out-of-service criteria adopted by organizations such as the
37Commercial Vehicle Safety Alliance, other intergovernmental
38safety group, or the United States Department of Transportation.
39The commissioner may provide departmental representatives to
40 that alliance or other organization for the purpose of promoting
P12   1the continued improvement and refinement of compatible
2nationwide commercial vehicle safety inspection and out-of-service
3criteria.

4(3) The commissioner shall appoint a committee of 15 members,
5consisting of representatives of industry subject to the regulations
6to be adopted pursuant to this section, to act in an advisory capacity
7to the department, and the department shall cooperate and confer
8with the advisory committee so appointed. The commissioner shall
9appoint a separate committee to advise the department on rules
10and regulations concerning wheelchair lifts for installation and use
11on buses, consisting of persons who use the wheelchair lifts,
12representatives of transit districts, representatives of designers or
13manufacturers of wheelchairs and wheelchair lifts, and
14representatives of the Department of Transportation.

15(4) The department may inspect any vehicles in maintenance
16facilities or terminals, as well as any records relating to the dispatch
17of vehicles or drivers, and the pay of drivers, tobegin delete assureend deletebegin insert ensureend insert
18 compliance with this code and regulations adopted pursuant to this
19section.

20(b) The department, using the definitions adopted pursuant to
21Section 2402.7, shall adopt regulations for the transportation of
22hazardous materials in this state, except the transportation of
23materials which are subject to other provisions of this code, that
24the department determines are reasonably necessary to ensure the
25safety of persons and property using the highways. The regulations
26may include provisions governing the filling, marking, packing,
27labeling, and assembly of, and containers that may be used for,
28hazardous materials shipments, and the manner by which the
29shipper attests that the shipments are correctly identified and in
30proper condition for transport.

31(c) (1) Except as provided in paragraphs (2) and (3), at least
32once every 13 months, the department shall inspect every
33maintenance facility or terminal of any person who at any time
34operates any bus. If the bus operation includes more than 100
35buses, the inspection shall be without prior notice.

36(2) A maintenance facility or terminal that receives two or more
37successive satisfactory ratings may be inspected once every 26
38months unless the satisfactory rating is the result of a reinspection
39required pursuant to paragraph (2) of subdivision (c) of Section
4034513.

P13   1(3) A maintenance facility or terminal that receives an
2unsatisfactory rating shall be inspected every six months until the
3operator achieves a satisfactory rating.

4(d) The commissioner shall adopt and enforce regulations which
5will make the public or private users of any bus aware of the
6operator’s last safety rating.

7(e) It is unlawful and constitutes a misdemeanor for any person
8to operate any bus without the inspection specified in subdivision
9(c) having been conducted.

10(f) The department may adopt regulations restricting or
11prohibiting the movement of any vehicle from a maintenance
12facility or terminal if the vehicle is found in violation of this code
13or regulations adopted pursuant to this section.

14

begin deleteSEC. 6.end delete
15
begin insertSEC. 8.end insert  

Section 34505 of the Vehicle Code is amended to read:

16

34505.  

(a) Tour bus operators shall, in addition to the
17systematic inspection, maintenance, and lubrication services
18required of all motor carriers, require each tour bus to be inspected
19at least every 45 days, or more often if necessary to ensure safe
20operation. This inspection shall include, but not be limited to, all
21of the following:

22(1) Brake adjustment.

23(2) Brake system components and leaks.

24(3) Steering and suspension systems.

25(4) Tires and wheels.

26(b) A tour bus shall not be used to transport passengers until all
27defects listed during the inspection conducted pursuant to
28subdivision (a) have been corrected and attested to by the signature
29of the operator’s authorized representative.

30(c) Records of inspections conducted pursuant to subdivision
31(a) shall be kept at the operator’s maintenance facility or terminal
32where the tour bus is regularly garaged. The records shall be
33retained by the operator for one year, and shall be made available
34for inspection upon request by any authorized employee of the
35department. Each record shall include, but not be limited to, all of
36the following:

37(1) Identification of the vehicle, including make, model, license
38number, or other means of positive identification.

39(2) Date and nature of each inspection and any repair performed.

P14   1(3) Signature of operator’s authorized representative attesting
2to the inspection and to the completion of all required repairs.

3(4) Company vehicle number.

4(d) Prior to operating a newly acquired tour bus that is more
5than two years old, a charter-party carrier of passengers or a
6passenger stage corporationbegin insert that has received an unsatisfactory
7rating and is being inspected every six months pursuant to
8paragraph (3) of subdivision (c) of Section 34501,end insert
shall first
9schedule an inspection of the tour bus with, and obtain a
10satisfactory rating for the tour bus from, the department.begin insert This
11requirement shall not apply to a charter-party carrier of
12passengers or a passenger stage corporation that has received
13two or more successive satisfactory ratings and is being inspected
14pursuant to the inspection schedule authorized end insert
begin insertunder paragraph
15(2) of subdivision (c) of Section 34501.end insert

16

begin deleteSEC. 7.end delete
17
begin insertSEC. 9.end insert  

Section 34505.1 of the Vehicle Code is amended to
18read:

19

34505.1.  

(a) Upon determining that a tour bus carrier or
20modified limousine carrier has either (1) failed to maintain any
21vehicle used in transportation for compensation in a safe operating
22condition or to comply with the Vehicle Code or with regulations
23contained in Title 13 of the California Code of Regulations relative
24to motor carrier safety, and, in the department’s opinion, that failure
25presents an imminent danger to public safety or constitutes such
26a consistent failure as to justify a recommendation to the Public
27Utilities Commission or the United States Department of
28Transportation or (2) failed to enroll all drivers in the pull notice
29system as required by Section 1808.1, the department shall
30recommend to the Public Utilities Commission that the carrier’s
31operating authority be suspended, denied, or revoked, or to the
32United States Department of Transportation that appropriate
33administrative action be taken against the carrier’s interstate
34operating authority, whichever is appropriate.begin delete Forend delete

35begin insert(b)end insertbegin insertend insertbegin insertForend insert purposes of thisbegin delete subdivision,end deletebegin insert section,end insert two consecutive
36unsatisfactory compliance ratings for an inspected terminal
37assigned because the tour bus carrier or modified limousine carrier
38failed to comply with the periodic report requirements of Section
391808.1 or the cancellation of the carrier’s enrollment by the
40Department of Motor Vehicles for nonpayment of required fees
P15   1may be determined by the department to be a consistent failure.
2However, when recommending denial of an application for new
3or renewal authority, the department need not conclude that the
4carrier’s failure presents an imminent danger to public safety or
5that it constitutes a consistent failure. The department need only
6conclude that the carrier’s compliance with the safety-related
7matters described in paragraph (1) of subdivision (a) is sufficiently
8unsatisfactory to justify a recommendation for denial.begin delete The
9department shall retain a record, by carrier, of every
10recommendation made pursuant to this section.end delete

begin insert

11
(c) If a tour bus or modified limousine carrier has either (1)
12received an unsatisfactory compliance rating for a regular terminal
13inspection and the next two consecutive follow-up terminal
14inspections or (2) received an unsatisfactory compliance rating
15for three consecutive regular terminal inspections irrespective of
16receiving satisfactory ratings on the follow-up inspections
17associated with the first two terminal inspections, the department
18shall recommend to the Public Utilities Commission that the
19carrier’s operating authority be suspended, denied, or revoked,
20or to the United States Department of Transportation that
21appropriate administrative action be taken against the carrier’s
22interstate operating authority, whichever is appropriate.

end insert
begin delete

23(b) 

end delete

24begin insert(end insertbegin insertd)end insert Before transmitting a recommendation pursuant to
25begin delete subdivision (a),end deletebegin insert this section,end insert the department shall notify the carrier
26in writing of all of the following:

27(1) That the department has determined that the carrier’s safety
28record is unsatisfactory, furnishing a copy of any documentation
29or summary of any other evidence supporting the determination.

30(2) That the determination may result in a suspension,
31revocation, or denial of the carrier’s operating authority by the
32Public Utilities Commission or the United States Department of
33Transportation, as appropriate.

34(3) That the carrier may request a review of the determination
35by the department within five days of its receipt of the notice
36required under this subdivision. If a review is requested by the
37carrier, the department shall conduct and evaluate that review prior
38to transmitting any notification pursuant tobegin delete subdivision (a).end deletebegin insert this
39section.end insert

begin delete

40(c)

end delete

P16   1begin insert(end insertbegin inserte)end insert Notwithstanding anything to the contrary in subdivisionbegin delete (a)end delete
2begin insert (a), (b),end insert orbegin delete (b),end deletebegin insert (c),end insert upon determining during a terminal inspection
3or at any other time that the condition of a tour bus is such that it
4has multiple safety violations of a nature that operation of the tour
5bus could constitute an imminent danger to public safety, the
6department shall immediately order the tour bus out of service.
7The tour bus shall not be subsequently operated with passengers
8until all of the safety violations have been corrected and the
9department has verified the correction of the safety violations upon
10a subsequent inspection by the department of the tour bus, which
11shall occur within five business days of the submission of a
12reinspection request from the tour bus carrier to the department.

begin insert

13
(f) The department shall retain a record, by carrier, of every
14recommendation made pursuant to this section.

end insert
15

begin deleteSEC. 8.end delete
16
begin insertSEC. 10.end insert  

Section 34505.2 is added to the Vehicle Code, to
17read:

18

34505.2.  

(a) (1) The department shall conduct unannounced
19surprise inspections of charter-party carriers of passengers and
20passenger stage corporations operating one or more tour buses in
21addition to regularly scheduled inspections.

22(2) The department shall prioritize unannounced surprise
23inspections of companies that are noncompliant, have a history of
24noncompliance with safety laws or regulations, or that have
25received unsatisfactory ratings.

26(b) Each fiscal year, no fewer than 10 percent of the total number
27of tour bus carrier inspections conducted by the department shall
28be unannounced surprise inspections.

begin delete29

SEC. 9.  

Section 34505.3 is added to the Vehicle Code, to read:

30

34505.3.  

(a) Beginning January 1, 2018, a charter-party carrier
31of passengers or a passenger stage corporation operating tour buses
32that applies for renewal of the registration of its vehicles shall
33provide proof of its most recent bus terminal inspection with a
34satisfactory rating by the department.

35(b) The Department of Motor Vehicles shall not approve a
36registration renewal under subdivision (a) if proof of inspection
37with a satisfactory rating is not provided by the charter-party carrier
38of passengers or the passenger stage corporation.

end delete
P17   1

begin deleteSEC. 10.end delete
2
begin insertSEC. 11.end insert  

Section 34513 of the Vehicle Code is amended to
3read:

4

34513.  

(a) The department shall adopt rules and regulations
5relating to the equipment, maintenance, and operation of tour buses.

6(b) (1) The department shall, by regulation, develop and adopt
7a fee structure for bus terminal inspections of charter-party carriers
8of passengers and passenger stage corporations, to be paid by
9charter-party carriers of passengers and passenger stage
10corporations that operate one or more tour buses. The fees shall
11be scaled and based upon the number of buses operated by or for
12a company and shall be collected upon initial application and
13annually thereafter by the Public Utilities Commission pursuant
14to Section 5373.1 for carriers subject to that section, or as otherwise
15provided in regulations. The fees shall be in an amount sufficient
16to offset the costs to administer the inspection program as it
17pertains to charter-party carriers of passengers and passenger stage
18corporations, and revenues from the fees shall be deposited in the
19Motor Vehicle Account in the State Transportation Fund.

20(2) The revenues from the fees shall not be used to supplant
21other sources of funding for, or otherwise support, any other
22inspection program conducted by the department.

23(3) When developing the regulations, the department shall
24consider measures that increase efficiencies to limit the financial
25impact to charter-party carriers of passengers and passenger stage
26corporations subject to the fees.

27(4) The department shall adopt the regulations in consultation
28with appropriate interested parties.

29(5) In no instance shall an operating carrier be charged more
30thanbegin delete $6,500.end deletebegin insert six thousand five hundred dollars ($6,500).end insert

31(c) (1) No later than January 1, 2018, the department shall, by
32regulation, modify its existing tour bus terminal inspection program
33to ensure that the performance-based program targets companies
34that are noncompliant, have a history of noncompliance with safety
35laws or regulations, or that have received unsatisfactory ratings.

36(2) If a carrier receives an unsatisfactory rating, the department
37shall conduct a followup inspection no later than 30 days after the
38initial inspection during which an unsatisfactory rating was deemed
39appropriate.

P18   1(3) It is the intent of the Legislature that, to the greatest extent
2possible, the bus inspection program shall strive to inspect as many
3tour buses operated by or for charter-party carriers of passengers
4and passenger stage corporations as possible.

5

begin deleteSEC. 11.end delete
6
begin insertSEC. 12.end insert  

The Department of the California Highway Patrol
7shall conduct a comprehensive review of the statutes and
8regulations governing tour buses, as well as buses generally, with
9the objective of identifying opportunities for simplification,
10consolidation, avoidance of duplication, and consistent use of
11terminology. The review shall be conducted in consultation with
12the Public Utilities Commission, the Office of Legislative Counsel,
13and interested parties. On or before January 1, 2018, the department
14shall submit a report containing its recommendations for proposed
15statutory changes to the policy committees of both houses of the
16Legislature with responsibility for transportation matters, for
17potential inclusion, if appropriate in whole or in part, in a future
18omnibus transportation bill. The report shall be submitted pursuant
19to Section 9795 of the Government Code.

20

begin deleteSEC. 12.end delete
21
begin insertSEC. 13.end insert  

No reimbursement is required by this act pursuant to
22Section 6 of Article XIII B of the California Constitution because
23the only costs that may be incurred by a local agency or school
24district will be incurred because this act creates a new crime or
25infraction, eliminates a crime or infraction, or changes the penalty
26for a crime or infraction, within the meaning of Section 17556 of
27the Government Code, or changes the definition of a crime within
28the meaning of Section 6 of Article XIII B of the California
29Constitution.



O

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