Amended in Senate April 27, 2016

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 amend Sections 1033.7, 5373.1, and 5378.5 of, and to add Sectionsbegin delete 1033.6end deletebegin insert 1033.6, 4003,end insert and 5374.4 to, the Public Utilities Code, and to amend Sections 612, 34501, 34505, 34505.1, and 34513 of, and to add Section 34505.2 to, the Vehicle Code, relating to transportation.

LEGISLATIVE COUNSEL’S DIGEST

SB 812, as amended, Hill. Charter-party carriers ofbegin delete passengers andend deletebegin insert passengers:end insert passenger stagebegin delete corporations.end deletebegin insert corporations: private carriers of passengers.end insert

(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. 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.

This bill would 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 would 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 stage corporation that has received an unsatisfactory rating and is currently being inspected every 6 months, 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 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.

end delete

(2) Existing law provides for the regulation ofbegin insert private carriers of passengers,end insert passenger stagebegin delete corporationsend deletebegin insert corporations,end insert 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 tobegin insert buses operated by private carriers of passengers andend insert 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 anybegin insert private carrier of passengers,end insert passenger stagebegin delete corporationend deletebegin insert corporation,end insert or charter-party carrier of passengers affected by the recall to ensure that thebegin insert registrant,end insert certificatebegin delete holderend deletebegin insert holder,end insert 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 governingbegin insert private carriers of passengers,end insert passenger stagebegin delete corporationsend deletebegin insert corporations,end insert 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.

25

SEC. 2.  

Section 1033.7 of the Public Utilities Code is amended
26to read:

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 suspended (1) for failure to
30maintain any vehicle used in transportation for compensation in a
31safe operating condition or to comply with the Vehicle Code or
32with 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,
35(2) for failure to enroll all drivers in the pull notice system as
36required by Section 1808.1 of the Vehicle Code, or (3) for receiving
37an unsatisfactory compliance rating in three consecutive terminal
38 inspections as specified in subdivision (c) of Section 34505.1 of
P6    1the Vehicle Code, the commission shall, pending a hearing in the
2matter pursuant to subdivision (d), suspend the corporation’s
3certificate. The department’s written recommendation shall
4specifically 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.

21begin insert

begin insertSEC. 3.end insert  

end insert

begin insertSection 4003 is added to the end insertbegin insertPublic Utilities Codeend insertbegin insert, to
22read:end insert

begin insert
23

begin insert4003.end insert  

(a) The commission shall monitor the recall notifications
24of the National Highway Traffic Safety Administration (NHTSA)
25relative to buses operated by private carriers of passengers in this
26state and shall subscribe to NHTSA’s electronic mail notification
27system.

28
(b) (1) Upon determining that a bus of a private carrier of
29passengers is the subject of a safety recall by NHTSA that involves
30parts or accessories necessary for the safe operation of the vehicle,
31the commission shall immediately contact any private carrier of
32passengers affected by the recall to ensure that the registrant is
33aware of the recall and has a plan in place to correct the defect.

34
(2) As used in this section, “parts or accessories necessary for
35the safe operation of the vehicle” has the same meaning as
36described in Part 393 of Title 49 of the Code of Federal
37Regulations.

38
(c) The commission may issue an out-of-service order for any
39vehicle affected by the recall if the recall involves parts or
40accessories necessary for the safe operation of the vehicle, which
P8    1order shall remain in effect until the recall repair of the vehicle is
2completed.

end insert
3

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

Section 5373.1 of the Public Utilities Code is amended
5to read:

6

5373.1.  

(a) Each application for a charter-party carrier of
7passengers certificate or permit shall be accompanied by a filing
8fee as follows:

9(1) Class A certificates (new): one thousand five hundred dollars
10($1,500).

11(2) Class A certificates (renewal): one hundred dollars ($100).

12(3) Class B certificates (new): one thousand dollars ($1,000).

13(4) Class B certificates (renewal): one hundred dollars ($100).

14(5) Class C certificates (new): one thousand dollars ($1,000).

15(6) Class C certificates (renewal): one hundred dollars ($100).

16(7) Permits (new): one thousand dollars ($1,000).

17(8) Permits (renewal): one hundred dollars ($100).

18(b) The commission shall also require each application to be
19accompanied by a fee to offset the cost of the charter-party carrier
20bus terminal inspections conducted by the Department of the
21California Highway Patrol. The fee shall be fifteen dollars ($15)
22per tour bus, as defined in Section 612 of the Vehicle Code, or a
23maximum of six thousand five hundred dollars ($6,500) for each
24operating carrier, until the effective date of the new fee structure
25established by the Department of the California Highway Patrol
26pursuant to subdivision (b) of Section 34513 of the Vehicle Code.

27(c) The commission shall require each charter-party carrier that
28operates tour buses, as defined in Section 612 of the Vehicle Code,
29to undergo an annual bus terminal inspection conducted by the
30Department of the California Highway Patrol and to pay an annual
31fee of fifteen dollars ($15) per tour bus, or a maximum of six
32thousand five hundred dollars ($6,500), to offset the cost of the
33inspections, until the effective date of the new fee structure
34established by the Department of the California Highway Patrol
35pursuant to subdivision (b) of Section 34513 of the Vehicle Code.

36(d) The commission shall deposit the fees collected pursuant to
37subdivisions (b) and (c) in the Motor Vehicle Account in the State
38 Transportation Fund to cover the costs of the inspections conducted
39by the department as specified in subdivisions (b) and (c). The
40revenues from the fees shall not be used to supplant other sources
P9    1of funding for, or otherwise support, any other inspection program
2conducted by the department.

3

begin deleteSEC. 4.end delete
4
begin insertSEC. 5.end insert  

Section 5374.4 is added to the Public Utilities Code,
5to read:

6

5374.4.  

(a) The commission shall monitor the recall
7notifications of the National Highway Traffic Safety
8Administration (NHTSA) relative to buses, limousines, and
9modified limousines operated by charter-party carriers of
10passengers in this state and shall subscribe to NHTSA’s electronic
11mail notification system.

12(b) (1) Upon determining that a bus, limousine, or modified
13limousine of a charter-party carrier of passengers is the subject of
14a safety recall by NHTSA that involves parts or accessories
15necessary for the safe operation of the vehicle, the commission
16shall immediately contact any charter-party carrier of passengers
17affected by the recall to ensure that the certificate holder or
18permittee is aware of the recall and has a plan in place to correct
19the defect.

20(2) As used in this section, “parts or accessories necessary for
21the safe operation of the vehicle” has the same meaning as
22described in Part 393 of Title 49 of the Code of Federal
23Regulations.

24(c) The commission may issue an out-of-service order for any
25vehicle affected by the recall if the recall, involves parts or
26accessories necessary for the safe operation of the vehicle, which
27order shall remain in effect until the recall repair of the vehicle is
28completed.

29

begin deleteSEC. 5.end delete
30
begin insertSEC. 6.end insert  

Section 5378.5 of the Public Utilities Code is amended
31 to read:

32

5378.5.  

(a) Upon receipt of a written recommendation from
33the Department of the California Highway Patrol that the certificate
34or permit of a charter-party carrier be suspended (1) for failure to
35maintain any vehicle used in transportation for compensation in a
36safe operating condition or to comply with the Vehicle Code or
37with regulations contained in Title 13 of the California Code of
38Regulations relative to motor carrier safety if that failure is either
39a consistent failure or presents an imminent danger to public safety,
40(2) for failure to enroll all drivers in the pull notice system as
P10   1required by Section 1808.1 of the Vehicle Code, or (3) for receiving
2an unsatisfactory compliance rating in three consecutive terminal
3inspections as specified in subdivision (c) of Section 34505.1 of
4the Vehicle Code, the commission shall, pending a hearing in the
5matter pursuant to subdivision (d), suspend the carrier’s certificate
6or permit. The written recommendation shall specifically indicate
7compliance with subdivision (c).

8(b) A carrier whose certificate or permit is suspended pursuant
9to subdivision (a) may obtain a reinspection of its terminal and
10vehicles by the department, by submitting a written request for
11reinstatement to the commission and paying a reinstatement fee
12of one thousand dollars ($1,000). The commission shall deposit
13all reinstatement fees collected pursuant to this subdivision in the
14Public Utilities Commission Transportation Reimbursement
15Account. The commission shall then forward a request for
16reinspection to the department which shall then perform a
17reinspection within a reasonable time. The commission shall
18reinstate a carrier’s certificate or permit suspended under
19subdivision (a) promptly upon receipt of a written recommendation
20from the department that the carrier’s safety compliance has
21improved to the satisfaction of the department, unless the certificate
22or permit is suspended for another reason, or has been revoked.

23(c) Before transmitting a recommendation pursuant to
24subdivision (a) to the commission, the Department of the California
25Highway Patrol shall notify the charter-party carrier in writing of
26all 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 suspension or
31revocation of the carrier’s certificate or permit by the commission.

32(3) That the carrier may request a review of the determination
33by the department within five days of its receipt of the notice
34required under this subdivision. If a review pursuant to this
35paragraph is requested by the carrier, the department shall conduct
36and evaluate that review prior to transmitting any notification to
37the commission pursuant to subdivision (a).

38(d) Whenever the commission suspends the certificate or permit
39of any charter-party carrier pursuant to subdivision (a), the
40commission shall furnish the carrier written notice of the
P11   1suspension and shall hold a hearing within a reasonable time, not
2to exceed 21 days, after a written request therefor is filed with the
3commission, with a copy thereof furnished to the Department of
4the California Highway Patrol. At the hearing, the carrier shall
5show cause why the suspension should not be continued. At the
6conclusion of the hearing, the commission may, in addition to any
7other penalty provided in this chapter, terminate the suspension,
8continue the suspension in effect, or revoke the certificate or
9permit. The commission may revoke the certificate or permit of
10any carrier suspended pursuant to subdivision (a) at any time 90
11days or more after its suspension if the commission has not
12received a written recommendation for reinstatement from the
13department and the carrier has not filed a written request for a
14hearing with the commission.

15(e) If the commission, after a hearing, finds that a charter-party
16carrier has continued to operate as such a carrier after its certificate
17or permit has been suspended pursuant to subdivision (a), the
18commission shall do one of the following:

19(1) Revoke the operating certificate or permit of the carrier.

20(2) Impose upon the holder of the certificate or permit a civil
21penalty of not less than one thousand five hundred dollars ($1,500)
22nor more than seven thousand five hundred dollars ($7,500) for
23each day of unlawful operations.

24

begin deleteSEC. 6.end delete
25
begin insertSEC. 7.end insert  

Section 612 of the Vehicle Code is amended to read:

26

612.  

“Tour bus” means a vehicle designed, used, or maintained
27for carrying more than 10 persons, including the driver, which is
28operated by or for a charter-party carrier of passengers, as defined
29in Section 5360 of the Public Utilities Code, or a passenger stage
30corporation, as defined in Section 226 of the Public Utilities Code.

31

begin deleteSEC. 7.end delete
32
begin insertSEC. 8.end insert  

Section 34501 of the Vehicle Code is amended to read:

33

34501.  

(a) (1) The department shall adopt reasonable rules
34and regulations that, in the judgment of the department, are
35designed to promote the safe operation of vehicles described in
36Section 34500, regarding, but not limited to, controlled substances
37and alcohol testing of drivers by motor carriers, hours of service
38of drivers, equipment, fuel containers, fueling operations,
39inspection, maintenance, recordkeeping, accident reports, and
40drawbridges. The rules and regulations shall not, however, be
P12   1applicable to schoolbuses, which shall be subject to rules and
2regulations adopted pursuant to Section 34501.5.

3The rules and regulations shall exempt local law enforcement
4agencies, within a single county, engaged in the transportation of
5 inmates or prisoners when those agencies maintain other motor
6vehicle operations records which furnish hours of service
7information on drivers which are in substantial compliance with
8the rules and regulations. This exemption does not apply to any
9local law enforcement agency engaged in the transportation of
10inmates or prisoners outside the county in which the agency is
11located, if that agency would otherwise be required, by existing
12law, to maintain driving logs.

13(2) The department may adopt rules and regulations relating to
14commercial vehicle safety inspection and out-of-service criteria.
15In adopting the rules and regulations, the commissioner may
16consider the commercial vehicle safety inspection and
17out-of-service criteria adopted by organizations such as the
18Commercial Vehicle Safety Alliance, other intergovernmental
19safety group, or the United States Department of Transportation.
20The commissioner may provide departmental representatives to
21 that alliance or other organization for the purpose of promoting
22the continued improvement and refinement of compatible
23nationwide commercial vehicle safety inspection and out-of-service
24criteria.

25(3) The commissioner shall appoint a committee of 15 members,
26consisting of representatives of industry subject to the regulations
27to be adopted pursuant to this section, to act in an advisory capacity
28to the department, and the department shall cooperate and confer
29with the advisory committee so appointed. The commissioner shall
30appoint a separate committee to advise the department on rules
31and regulations concerning wheelchair lifts for installation and use
32on buses, consisting of persons who use the wheelchair lifts,
33representatives of transit districts, representatives of designers or
34manufacturers of wheelchairs and wheelchair lifts, and
35representatives of the Department of Transportation.

36(4) The department may inspect any vehicles in maintenance
37facilities or terminals, as well as any records relating to the dispatch
38of vehicles or drivers, and the pay of drivers, to ensure compliance
39with this code and regulations adopted pursuant to this section.

P13   1(b) The department, using the definitions adopted pursuant to
2Section 2402.7, shall adopt regulations for the transportation of
3hazardous materials in this state, except the transportation of
4materials which are subject to other provisions of this code, that
5the department determines are reasonably necessary to ensure the
6safety of persons and property using the highways. The regulations
7may include provisions governing the filling, marking, packing,
8labeling, and assembly of, and containers that may be used for,
9hazardous materials shipments, and the manner by which the
10shipper attests that the shipments are correctly identified and in
11proper condition for transport.

12(c) (1) Except as provided in paragraphs (2) and (3), at least
13once every 13 months, the department shall inspect every
14maintenance facility or terminal of any person who at any time
15operates any bus. If the bus operation includes more than 100
16buses, the inspection shall be without prior notice.

17(2) A maintenance facility or terminal that receives two or more
18successive satisfactory ratings may be inspected once every 26
19months unless the satisfactory rating is the result of a reinspection
20required pursuant to paragraph (2) of subdivision (c) of Section
2134513.

22(3) A maintenance facility or terminal that receives an
23unsatisfactory rating shall be inspected every six months until the
24operator achieves a satisfactory rating.

25(d) The commissioner shall adopt and enforce regulations which
26will make the public or private users of any bus aware of the
27operator’s last safety rating.

28(e) It is unlawful and constitutes a misdemeanor for any person
29to operate any bus without the inspection specified in subdivision
30(c) having been conducted.

31(f) The department may adopt regulations restricting or
32prohibiting the movement of any vehicle from a maintenance
33facility or terminal if the vehicle is found in violation of this code
34or regulations adopted pursuant to this section.

35

begin deleteSEC. 8.end delete
36
begin insertSEC. 9.end insert  

Section 34505 of the Vehicle Code is amended to read:

37

34505.  

(a) Tour bus operators shall, in addition to the
38systematic inspection, maintenance, and lubrication services
39required of all motor carriers, require each tour bus to be inspected
40at least every 45 days, or more often if necessary to ensure safe
P14   1operation. This inspection shall include, but not be limited to, all
2of the following:

3(1) Brake adjustment.

4(2) Brake system components and leaks.

5(3) Steering and suspension systems.

6(4) Tires and wheels.

7(b) A tour bus shall not be used to transport passengers until all
8defects listed during the inspection conducted pursuant to
9subdivision (a) have been corrected and attested to by the signature
10of the operator’s authorized representative.

11(c) Records of inspections conducted pursuant to subdivision
12(a) shall be kept at the operator’s maintenance facility or terminal
13where the tour bus is regularly garaged. The records shall be
14retained by the operator for one year, and shall be made available
15for inspection upon request by any authorized employee of the
16department. Each record shall include, but not be limited to, all of
17the following:

18(1) Identification of the vehicle, including make, model, license
19number, or other means of positive identification.

20(2) Date and nature of each inspection and any repair performed.

21(3) Signature of operator’s authorized representative attesting
22to the inspection and to the completion of all required repairs.

23(4) Company vehicle number.

24(d) Prior to operating a newly acquired tour bus that is more
25than two years old, a charter-party carrier of passengers or a
26passenger stage corporation that has received an unsatisfactory
27rating and is being inspected every six months pursuant to
28paragraph (3) of subdivision (c) of Section 34501, shall first
29schedule an inspection of the tour bus with, and obtain a
30satisfactory rating for the tour bus from, the department. This
31requirement shall not apply to a charter-party carrier of passengers
32or a passenger stage corporation that has received two or more
33successive satisfactory ratings and is being inspected pursuant to
34the inspection schedule authorized under paragraph (2) of
35subdivision (c) of Section 34501.

36

begin deleteSEC. 9.end delete
37
begin insertSEC. 10.end insert  

Section 34505.1 of the Vehicle Code is amended to
38read:

39

34505.1.  

(a) Upon determining that a tour bus carrier or
40modified limousine carrier has either (1) failed to maintain any
P15   1vehicle used in transportation for compensation in a safe operating
2condition or to comply with the Vehicle Code or with regulations
3contained in Title 13 of the California Code of Regulations relative
4to motor carrier safety, and, in the department’s opinion, that failure
5presents an imminent danger to public safety or constitutes such
6a consistent failure as to justify a recommendation to the Public
7Utilities Commission or the United States Department of
8Transportation or (2) failed to enroll all drivers in the pull notice
9system as required by Section 1808.1, the department shall
10recommend to the Public Utilities Commission that the carrier’s
11operating authority be suspended, denied, or revoked, or to the
12United States Department of Transportation that appropriate
13administrative action be taken against the carrier’s interstate
14operating authority, whichever is appropriate.

15(b) For purposes of this section, two consecutive unsatisfactory
16compliance ratings for an inspected terminal assigned because the
17tour bus carrier or modified limousine carrier failed to comply
18with the periodic report requirements of Section 1808.1 or the
19cancellation of the carrier’s enrollment by the Department of Motor
20Vehicles for nonpayment of required fees may be determined by
21the department to be a consistent failure. However, when
22recommending denial of an application for new or renewal
23authority, the department need not conclude that the carrier’s failure
24presents an imminent danger to public safety or that it constitutes
25a consistent failure. The department need only conclude that the
26carrier’s compliance with the safety-related matters described in
27paragraph (1) of subdivision (a) is sufficiently unsatisfactory to
28justify a recommendation for denial.

29(c) If a tour bus or modified limousine carrier has either (1)
30received an unsatisfactory compliance rating for a regular terminal
31inspection and the next two consecutive follow-up terminal
32inspections or (2) received an unsatisfactory compliance rating for
33three consecutive regular terminal inspections irrespective of
34receiving satisfactory ratings on the follow-up inspections
35associated with the first two terminal inspections, the department
36shall recommend to the Public Utilities Commission that the
37carrier’s operating authority be suspended, denied, or revoked, or
38 to the United States Department of Transportation that appropriate
39administrative action be taken against the carrier’s interstate
40operating authority, whichever is appropriate.

P16   1(d) Before transmitting a recommendation pursuant to this
2section, the department shall notify the carrier in writing of all of
3the following:

4(1) That the department has determined that the carrier’s safety
5record is unsatisfactory, furnishing a copy of any documentation
6or summary of any other evidence supporting the determination.

7(2) That the determination may result in a suspension,
8revocation, or denial of the carrier’s operating authority by the
9Public Utilities Commission or the United States Department of
10Transportation, as appropriate.

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

16(e) Notwithstanding anything to the contrary in subdivision (a),
17(b), or (c), upon determining during a terminal inspection or at any
18other time that the condition of a tour bus is such that it has
19multiple safety violations of a nature that operation of the tour bus
20could constitute an imminent danger to public safety, the
21department shall immediately order the tour bus out of service.
22The tour bus shall not be subsequently operated with passengers
23until all of the safety violations have been corrected and the
24department has verified the correction of the safety violations upon
25a subsequent inspection by the department of the tour bus, which
26shall occur within five business days of the submission of a
27reinspection request from the tour bus carrier to the department.

28(f) The department shall retain a record, by carrier, of every
29recommendation made pursuant to this section.

30

begin deleteSEC. 10.end delete
31
begin insertSEC. 11.end insert  

Section 34505.2 is added to the Vehicle Code, to
32read:

33

34505.2.  

(a) (1) The department shall conduct unannounced
34surprise inspections of charter-party carriers of passengers and
35passenger stage corporations operating one or more tour buses in
36addition to regularly scheduled inspections.

37(2) The department shall prioritize unannounced surprise
38inspections of companies that are noncompliant, have a history of
39noncompliance with safety laws or regulations, or that have
40received unsatisfactory ratings.

P17   1(b) Each fiscal year, no fewer than 10 percent of the total number
2of tour bus carrier inspections conducted by the department shall
3be unannounced surprise inspections.

4

begin deleteSEC. 11.end delete
5
begin insertSEC. 12.end insert  

Section 34513 of the Vehicle Code is amended to
6read:

7

34513.  

(a) The department shall adopt rules and regulations
8relating to the equipment, maintenance, and operation of tour buses.

9(b) (1) The department shall, by regulation, develop and adopt
10a fee structure for bus terminal inspections of charter-party carriers
11of passengers and passenger stage corporations, to be paid by
12charter-party carriers of passengers and passenger stage
13corporations that operate one or more tour buses. The fees shall
14be scaled and based upon the number of buses operated by or for
15a company and shall be collected upon initial application and
16annually thereafter by the Public Utilities Commission pursuant
17to Section 5373.1 for carriers subject to that section, or as otherwise
18provided in regulations. The fees shall be in an amount sufficient
19to offset the costs to administer the inspection program as it
20pertains to charter-party carriers of passengers and passenger stage
21corporations, and revenues from the fees shall be deposited in the
22Motor Vehicle Account in the State Transportation Fund.

23(2) The revenues from the fees shall not be used to supplant
24other sources of funding for, or otherwise support, any other
25inspection program conducted by the department.

26(3) When developing the regulations, the department shall
27consider measures that increase efficiencies to limit the financial
28impact to charter-party carriers of passengers and passenger stage
29corporations subject to the fees.

30(4) The department shall adopt the regulations in consultation
31with appropriate interested parties.

32(5) In no instance shall an operating carrier be charged more
33than six thousand five hundred dollars ($6,500).

34(c) (1) No later than January 1, 2018, the department shall, by
35regulation, modify its existing tour bus terminal inspection program
36to ensure that the performance-based program targets companies
37that are noncompliant, have a history of noncompliance with safety
38laws or regulations, or that have received unsatisfactory ratings.

39(2) If a carrier receives an unsatisfactory rating, the department
40shall conduct a followup inspection no later than 30 days after the
P18   1initial inspection during which an unsatisfactory rating was deemed
2appropriate.

3(3) It is the intent of the Legislature that, to the greatest extent
4possible, the bus inspection program shall strive to inspect as many
5tour buses operated by or for charter-party carriers of passengers
6and passenger stage corporations as possible.

begin delete
7

SEC. 12.  

The Department of the California Highway Patrol
8shall conduct a comprehensive review of the statutes and
9regulations governing tour buses, as well as buses generally, with
10the objective of identifying opportunities for simplification,
11consolidation, avoidance of duplication, and consistent use of
12terminology. The review shall be conducted in consultation with
13the Public Utilities Commission, the Office of Legislative Counsel,
14and interested parties. On or before January 1, 2018, the department
15shall submit a report containing its recommendations for proposed
16statutory changes to the policy committees of both houses of the
17Legislature with responsibility for transportation matters, for
18potential inclusion, if appropriate in whole or in part, in a future
19omnibus transportation bill. The report shall be submitted pursuant
20to Section 9795 of the Government Code.

end delete
21

SEC. 13.  

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.



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