Amended in Senate May 31, 2016

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 5378.5begin delete of, and to add Sections 1033.6, 4003, and 5374.4 to,end deletebegin insert ofend insert 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 of passengers: passenger stage corporations: private carriers of passengers.

(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 forbegin delete aend delete 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 additionallybegin delete authorizeend deletebegin insert requireend insert the department to inspect a maintenance facility or terminal that receives 2 or more successive satisfactory ratingsbegin insert at leastend insert once every 26begin delete months.end deletebegin insert months instead of at least once every 13 months.end insert 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

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

end delete
begin delete

This bill would require the commission to monitor the recall notifications of the National Highway Traffic Safety Administration (NHTSA) relative to buses operated by private carriers of passengers and 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 private carrier of passengers, passenger stage corporation, or charter-party carrier of passengers affected by the recall to ensure that the registrant, 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 private carriers of passengers, 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.

end delete
begin delete

(3)

end delete

begin insert (2)end insert 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:

begin delete
P4    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.

P5    1(b) (1) Upon determining that a bus, limousine, or modified
2limousine of a passenger stage corporation is the subject of a safety
3recall by NHTSA that involves parts or accessories necessary for
4the safe operation of the vehicle, the commission shall immediately
5contact any passenger stage corporation affected by the recall to
6ensure that the certificate holder or permittee is aware of the recall
7and has a plan in place to correct the defect.

8(2) As used in this section, “parts or accessories necessary for
9the safe operation of the vehicle” has the same meaning as
10described in Part 393 of Title 49 of the Code of Federal
11Regulations.

12(c) The commission may issue an out-of-service order for any
13vehicle affected by the recall if the recall involves parts or
14accessories necessary for the safe operation of the vehicle, which
15order shall remain in effect until the recall repair of the vehicle is
16completed.

end delete
17

begin deleteSEC. 2.end delete
18
begin insertSECTION 1.end insert  

Section 1033.7 of the Public Utilities Code is
19amended to read:

20

1033.7.  

(a) Upon receipt of a written recommendation from
21the Department of the California Highway Patrol that the certificate
22of a passenger stage corporation be suspended (1) for failure to
23maintain any vehicle used in transportation for compensation in a
24safe operating condition or to comply with the Vehicle Code or
25with regulations contained in Title 13 of the California Code of
26Regulations relative to motor carrier safety, if that failure is either
27a consistent failure or presents an imminent danger to public safety,
28(2) for failure to enroll all drivers in the pull notice system as
29required by Section 1808.1 of the Vehicle Code, or (3) for receiving
30an unsatisfactory compliance rating in three consecutive terminal
31 inspections as specified in subdivision (c) of Section 34505.1 of
32the Vehicle Code, the commission shall, pending a hearing in the
33matter pursuant to subdivision (d), suspend the corporation’s
34certificate. The department’s written recommendation shall
35specifically indicate compliance with subdivision (c).

36(b) A corporation whose certificate is suspended pursuant to
37subdivision (a) may obtain a reinspection of its terminal and
38vehicles by the department, by submitting a written request for
39reinstatement to the commission and paying a reinstatement fee
40of one hundred twenty-five dollars ($125). The commission shall
P6    1deposit all reinstatement fees collected pursuant to this subdivision
2in the Public Utilities Commission Transportation Reimbursement
3Account. The commission shall forward a request for reinspection
4to the department which shall perform a reinspection within a
5reasonable time. The commission shall reinstate a corporation’s
6certificate suspended under subdivision (a) promptly upon receipt
7of a written recommendation from the department that the
8corporation’s safety compliance has improved to the satisfaction
9of the department, unless the certificate is suspended for another
10reason or has been revoked.

11(c) Before transmitting a recommendation pursuant to
12subdivision (a) to the commission, the Department of the California
13Highway Patrol shall notify the passenger stage corporation in
14writing of all of the following:

15(1) That the department has determined that the corporation’s
16safety record is unsatisfactory, furnishing a copy of any
17documentation or summary of any other evidence supporting the
18 determination.

19(2) That the determination may result in a suspension or
20revocation of the corporation’s certificate by the commission.

21(3) That the corporation may request a review of the
22determination by the department within five days of its receipt of
23the notice required under this subdivision. If a review pursuant to
24this paragraph is requested by the corporation, the department shall
25conduct and evaluate that review prior to transmitting any
26notification to the commission pursuant to subdivision (a).

27(d) Whenever the commission suspends the certificate of any
28passenger stage corporation pursuant to subdivision (a), the
29commission shall furnish the corporation written notice of the
30suspension and shall hold a hearing within a reasonable time, not
31to exceed 21 days, after a written request therefor is filed with the
32commission, with a copy thereof furnished to the Department of
33the California Highway Patrol. At the hearing, the corporation
34shall show cause why the suspension should not be continued. At
35the conclusion of the hearing, the commission may, in addition to
36any other applicable penalty provided in this part, terminate the
37suspension, continue the suspension in effect, or revoke the
38certificate. The commission may revoke the certificate of any
39passenger stage corporation suspended pursuant to subdivision (a)
40at any time 90 days or more after its suspension if the commission
P7    1has not received a written recommendation for reinstatement from
2the department and the corporation has not filed a written request
3for a hearing with the commission.

4(e) If the commission, after a hearing, finds that a passenger
5stage corporation has continued to operate as such after its
6certificate has been suspended pursuant to subdivision (a), the
7commission shall do one of the following:

8(1) Revoke the certificate of the corporation.

9(2) Impose upon the holder of the certificate a civil penalty of
10not less than one thousand dollars ($1,000) nor more than five
11thousand dollars ($5,000) for each day of unlawful operations.

begin delete
12

SEC. 3.  

Section 4003 is added to the Public Utilities Code, to
13read:

14

4003.  

(a) The commission shall monitor the recall notifications
15of the National Highway Traffic Safety Administration (NHTSA)
16relative to buses operated by private carriers of passengers in this
17state and shall subscribe to NHTSA’s electronic mail notification
18system.

19(b) (1) Upon determining that a bus of a private carrier of
20passengers is the subject of a safety recall by NHTSA that involves
21parts or accessories necessary for the safe operation of the vehicle,
22the commission shall immediately contact any private carrier of
23passengers affected by the recall to ensure that the registrant is
24aware of the recall and has a plan in place to correct the defect.

25(2) As used in this section, “parts or accessories necessary for
26the safe operation of the vehicle” has the same meaning as
27described in Part 393 of Title 49 of the Code of Federal
28Regulations.

29(c) The commission may issue an out-of-service order for any
30vehicle affected by the recall if the recall involves parts or
31accessories necessary for the safe operation of the vehicle, which
32order shall remain in effect until the recall repair of the vehicle is
33completed.

end delete
34

begin deleteSEC. 4.end delete
35
begin insertSEC. 2.end insert  

Section 5373.1 of the Public Utilities Code is amended
36to read:

37

5373.1.  

(a) Each application for a charter-party carrier of
38passengers certificate or permit shall be accompanied by a filing
39fee as follows:

P8    1(1) Class A certificates (new): one thousand five hundred dollars
2($1,500).

3(2) Class A certificates (renewal): one hundred dollars ($100).

4(3) Class B certificates (new): one thousand dollars ($1,000).

5(4) Class B certificates (renewal): one hundred dollars ($100).

6(5) Class C certificates (new): one thousand dollars ($1,000).

7(6) Class C certificates (renewal): one hundred dollars ($100).

8(7) Permits (new): one thousand dollars ($1,000).

9(8) Permits (renewal): one hundred dollars ($100).

10(b) The commission shall also require each application to be
11accompanied by a fee to offset the cost of the charter-party carrier
12bus terminal inspections conducted by the Department of the
13California Highway Patrol. The fee shall be fifteen dollars ($15)
14per tour bus, as defined in Section 612 of the Vehicle Code, or a
15maximum of six thousand five hundred dollars ($6,500) for each
16operating carrier, until the effective date of the new fee structure
17established by the Department of the California Highway Patrol
18pursuant to subdivision (b) of Section 34513 of the Vehicle Code.

19(c) The commission shall require each charter-party carrier that
20operates tour buses, as defined in Section 612 of the Vehicle Code,
21to undergo an annual bus terminal inspection conducted by the
22Department of the California Highway Patrol and to pay an annual
23fee of fifteen dollars ($15) per tour bus, or a maximum of six
24thousand five hundred dollars ($6,500), to offset the cost of the
25inspections, until the effective date of the new fee structure
26established by the Department of the California Highway Patrol
27pursuant to subdivision (b) of Section 34513 of the Vehicle Code.

28(d) The commission shall deposit the fees collected pursuant to
29subdivisions (b) and (c) in the Motor Vehicle Account in the State
30 Transportation Fund to cover the costs of the inspections conducted
31by the department as specified in subdivisions (b) and (c). The
32revenues from the fees shall not be used to supplant other sources
33of funding for, or otherwise support, any other inspection program
34conducted by the department.

begin delete
35

SEC. 5.  

Section 5374.4 is added to the Public Utilities Code,
36to read:

37

5374.4.  

(a) The commission shall monitor the recall
38notifications of the National Highway Traffic Safety
39Administration (NHTSA) relative to buses, limousines, and
40modified limousines operated by charter-party carriers of
P9    1passengers in this state and shall subscribe to NHTSA’s electronic
2mail notification system.

3(b) (1) Upon determining that a bus, limousine, or modified
4limousine of a charter-party carrier of passengers is the subject of
5a safety recall by NHTSA that involves parts or accessories
6necessary for the safe operation of the vehicle, the commission
7shall immediately contact any charter-party carrier of passengers
8affected by the recall to ensure that the certificate holder or
9permittee is aware of the recall and has a plan in place to correct
10the defect.

11(2) As used in this section, “parts or accessories necessary for
12the safe operation of the vehicle” has the same meaning as
13described in Part 393 of Title 49 of the Code of Federal
14Regulations.

15(c) The commission may issue an out-of-service order for any
16vehicle affected by the recall if the recall, involves parts or
17accessories necessary for the safe operation of the vehicle, which
18order shall remain in effect until the recall repair of the vehicle is
19completed.

end delete
20

begin deleteSEC. 6.end delete
21
begin insertSEC. 3.end insert  

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

23

5378.5.  

(a) Upon receipt of a written recommendation from
24the Department of the California Highway Patrol that the certificate
25or permit of a charter-party carrier be suspended (1) for failure to
26maintain any vehicle used in transportation for compensation in a
27safe operating condition or to comply with the Vehicle Code or
28with regulations contained in Title 13 of the California Code of
29Regulations relative to motor carrier safety if that failure is either
30a consistent failure or presents an imminent danger to public safety,
31(2) for failure to enroll all drivers in the pull notice system as
32required by Section 1808.1 of the Vehicle Code, or (3) for receiving
33an unsatisfactory compliance rating in three consecutive terminal
34inspections as specified in subdivision (c) of Section 34505.1 of
35the Vehicle Code, the commission shall, pending a hearing in the
36matter pursuant to subdivision (d), suspend the carrier’s certificate
37or permit. The written recommendation shall specifically indicate
38compliance with subdivision (c).

39(b) A carrier whose certificate or permit is suspended pursuant
40to subdivision (a) may obtain a reinspection of its terminal and
P10   1vehicles by the department, by submitting a written request for
2reinstatement to the commission and paying a reinstatement fee
3of one thousand dollars ($1,000). The commission shall deposit
4all reinstatement fees collected pursuant to this subdivision in the
5Public Utilities Commission Transportation Reimbursement
6Account. The commission shall then forward a request for
7reinspection to the department which shall then perform a
8reinspection within a reasonable time. The commission shall
9reinstate a carrier’s certificate or permit suspended under
10subdivision (a) promptly upon receipt of a written recommendation
11from the department that the carrier’s safety compliance has
12improved to the satisfaction of the department, unless the certificate
13or permit is suspended for another reason, or has been revoked.

14(c) Before transmitting a recommendation pursuant to
15subdivision (a) to the commission, the Department of the California
16Highway Patrol shall notify the charter-party carrier in writing of
17all of the following:

18(1) That the department has determined that the carrier’s safety
19record is unsatisfactory, furnishing a copy of any documentation
20or summary of any other evidence supporting the determination.

21(2) That the determination may result in suspension or
22revocation of the carrier’s certificate or permit by the commission.

23(3) That the carrier may request a review of the determination
24by the department within five days of its receipt of the notice
25required under this subdivision. If a review pursuant to this
26paragraph is requested by the carrier, the department shall conduct
27and evaluate that review prior to transmitting any notification to
28the commission pursuant to subdivision (a).

29(d) Whenever the commission suspends the certificate or permit
30of any charter-party carrier pursuant to subdivision (a), the
31commission shall furnish the carrier written notice of the
32suspension and shall hold a hearing within a reasonable time, not
33to exceed 21 days, after a written request therefor is filed with the
34commission, with a copy thereof furnished to the Department of
35the California Highway Patrol. At the hearing, the carrier shall
36show cause why the suspension should not be continued. At the
37conclusion of the hearing, the commission may, in addition to any
38other penalty provided in this chapter, terminate the suspension,
39continue the suspension in effect, or revoke the certificate or
40permit. The commission may revoke the certificate or permit of
P11   1any carrier suspended pursuant to subdivision (a) at any time 90
2days or more after its suspension if the commission has not
3received a written recommendation for reinstatement from the
4department and the carrier has not filed a written request for a
5hearing with the commission.

6(e) If the commission, after a hearing, finds that a charter-party
7carrier has continued to operate as such a carrier after its certificate
8or permit has been suspended pursuant to subdivision (a), the
9commission shall do one of the following:

10(1) Revoke the operating certificate or permit of the carrier.

11(2) Impose upon the holder of the certificate or permit a civil
12penalty of not less than one thousand five hundred dollars ($1,500)
13nor more than seven thousand five hundred dollars ($7,500) for
14each day of unlawful operations.

15

begin deleteSEC. 7.end delete
16
begin insertSEC. 4.end insert  

Section 612 of the Vehicle Code is amended to read:

17

612.  

“Tour bus” means a vehicle designed, used, or maintained
18for carrying more than 10 persons, including the driver, which is
19operated by or for a charter-party carrier of passengers, as defined
20in Section 5360 of the Public Utilities Code, or a passenger stage
21corporation, as defined in Section 226 of the Public Utilities Code.

22

begin deleteSEC. 8.end delete
23
begin insertSEC. 5.end insert  

Section 34501 of the Vehicle Code is amended to read:

24

34501.  

(a) (1) The department shall adopt reasonable rules
25and regulations that, in the judgment of the department, are
26designed to promote the safe operation of vehicles described in
27Section 34500, regarding, but not limited to, controlled substances
28and alcohol testing of drivers by motor carriers, hours of service
29of drivers, equipment, fuel containers, fueling operations,
30inspection, maintenance, recordkeeping, accident reports, and
31drawbridges. The rules and regulations shall not, however, be
32applicable to schoolbuses, which shall be subject to rules and
33regulations adopted pursuant to Section 34501.5.

34The rules and regulations shall exempt local law enforcement
35agencies, within a single county, engaged in the transportation of
36 inmates or prisoners when those agencies maintain other motor
37vehicle operations records which furnish hours of service
38information on drivers which are in substantial compliance with
39the rules and regulations. This exemption does not apply to any
40local law enforcement agency engaged in the transportation of
P12   1inmates or prisoners outside the county in which the agency is
2located, if that agency would otherwise be required, by existing
3law, to maintain driving logs.

4(2) The department may adopt rules and regulations relating to
5commercial vehicle safety inspection and out-of-service criteria.
6In adopting the rules and regulations, the commissioner may
7consider the commercial vehicle safety inspection and
8out-of-service criteria adopted by organizations such as the
9Commercial Vehicle Safety Alliance, other intergovernmental
10safety group, or the United States Department of Transportation.
11The commissioner may provide departmental representatives to
12 that alliance or other organization for the purpose of promoting
13the continued improvement and refinement of compatible
14nationwide commercial vehicle safety inspection and out-of-service
15criteria.

16(3) The commissioner shall appoint a committee of 15 members,
17consisting of representatives of industry subject to the regulations
18to be adopted pursuant to this section, to act in an advisory capacity
19to the department, and the department shall cooperate and confer
20with the advisory committee so appointed. The commissioner shall
21appoint a separate committee to advise the department on rules
22and regulations concerning wheelchair lifts for installation and use
23on buses, consisting of persons who use the wheelchair lifts,
24representatives of transit districts, representatives of designers or
25manufacturers of wheelchairs and wheelchair lifts, and
26representatives of the Department of Transportation.

27(4) The department may inspect any vehicles in maintenance
28facilities or terminals, as well as any records relating to the dispatch
29of vehicles or drivers, and the pay of drivers, to ensure compliance
30with this code and regulations adopted pursuant to this section.

31(b) The department, using the definitions adopted pursuant to
32Section 2402.7, shall adopt regulations for the transportation of
33hazardous materials in this state, except the transportation of
34materials which are subject to other provisions of this code, that
35the department determines are reasonably necessary to ensure the
36safety of persons and property using the highways. The regulations
37may include provisions governing the filling, marking, packing,
38labeling, and assembly of, and containers that may be used for,
39hazardous materials shipments, and the manner by which the
P13   1shipper attests that the shipments are correctly identified and in
2proper condition for transport.

3(c) (1) Except as provided in paragraphs (2) and (3), at least
4once every 13 months, the department shall inspect every
5maintenance facility or terminal of any person who at any time
6operates any bus. If the bus operation includes more than 100
7buses, the inspection shall be without prior notice.

8(2) A maintenance facility or terminal that receives two or more
9successive satisfactory ratingsbegin delete mayend deletebegin insert shallend insert be inspectedbegin insert at leastend insert once
10every 26 months unless the satisfactory rating is the result of a
11reinspection required pursuant to paragraph (2) of subdivision (c)
12of Section 34513.

13(3) A maintenance facility or terminal that receives an
14unsatisfactory rating shall be inspected every six months until the
15operator achieves a satisfactory rating.

16(d) The commissioner shall adopt and enforce regulations which
17will make the public or private users of any bus aware of the
18operator’s last safety rating.

19(e) It is unlawful and constitutes a misdemeanor for any person
20to operate any bus without the inspection specified in subdivision
21(c) having been conducted.

22(f) The department may adopt regulations restricting or
23prohibiting the movement of any vehicle from a maintenance
24facility or terminal if the vehicle is found in violation of this code
25or regulations adopted pursuant to this section.

26

begin deleteSEC. 9.end delete
27
begin insertSEC. 6.end insert  

Section 34505 of the Vehicle Code is amended to read:

28

34505.  

(a) Tour bus operators shall, in addition to the
29systematic inspection, maintenance, and lubrication services
30required of all motor carriers, require each tour bus to be inspected
31at least every 45 days, or more often if necessary to ensure safe
32operation. This inspection shall include, but not be limited to, all
33of the following:

34(1) Brake adjustment.

35(2) Brake system components and leaks.

36(3) Steering and suspension systems.

37(4) Tires and wheels.

38(b) A tour bus shall not be used to transport passengers until all
39defects listed during the inspection conducted pursuant to
P14   1subdivision (a) have been corrected and attested to by the signature
2of the operator’s authorized representative.

3(c) Records of inspections conducted pursuant to subdivision
4(a) shall be kept at the operator’s maintenance facility or terminal
5where the tour bus is regularly garaged. The records shall be
6retained by the operator for one year, and shall be made available
7for inspection upon request by any authorized employee of the
8department. Each record shall include, but not be limited to, all of
9the following:

10(1) Identification of the vehicle, including make, model, license
11number, or other means of positive identification.

12(2) Date and nature of each inspection and any repair performed.

13(3) Signature of operator’s authorized representative attesting
14to the inspection and to the completion of all required repairs.

15(4) Company vehicle number.

16(d) Prior to operating a newly acquired tour bus that is more
17than two years old, a charter-party carrier of passengers or a
18passenger stage corporation that has received an unsatisfactory
19rating and is being inspected every six months pursuant to
20paragraph (3) of subdivision (c) of Section 34501, shall first
21schedule an inspection of the tour bus with, and obtain a
22satisfactory rating for the tour bus from, the department. This
23requirement shall not apply to a charter-party carrier of passengers
24or a passenger stage corporation that has received two or more
25successive satisfactory ratings and is being inspected pursuant to
26the inspection schedule authorized under paragraph (2) of
27subdivision (c) of Section 34501.

28

begin deleteSEC. 10.end delete
29
begin insertSEC. 7.end insert  

Section 34505.1 of the Vehicle Code is amended to
30read:

31

34505.1.  

(a) Upon determining that a tour bus carrier or
32modified limousine carrier has either (1) failed to maintain any
33vehicle used in transportation for compensation in a safe operating
34condition or to comply with the Vehicle Code or with regulations
35contained in Title 13 of the California Code of Regulations relative
36to motor carrier safety, and, in the department’s opinion, that failure
37presents an imminent danger to public safety or constitutes such
38a consistent failure as to justify a recommendation to the Public
39Utilities Commission or the United States Department of
40Transportation or (2) failed to enroll all drivers in the pull notice
P15   1system as required by Section 1808.1, the department shall
2recommend to the Public Utilities Commission that the carrier’s
3operating authority be suspended, denied, or revoked, or to the
4United States Department of Transportation that appropriate
5administrative action be taken against the carrier’s interstate
6operating authority, whichever is appropriate.

7(b) For purposes of this section, two consecutive unsatisfactory
8compliance ratings for an inspected terminal assigned because the
9tour bus carrier or modified limousine carrier failed to comply
10with the periodic report requirements of Section 1808.1 or the
11cancellation of the carrier’s enrollment by the Department of Motor
12Vehicles for nonpayment of required fees may be determined by
13the department to be a consistent failure. However, when
14recommending denial of an application for new or renewal
15authority, the department need not conclude that the carrier’s failure
16presents an imminent danger to public safety or that it constitutes
17a consistent failure. The department need only conclude that the
18carrier’s compliance with the safety-related matters described in
19paragraph (1) of subdivision (a) is sufficiently unsatisfactory to
20justify a recommendation for denial.

21(c) If a tour bus or modified limousine carrier has either (1)
22received an unsatisfactory compliance rating for a regular terminal
23inspection and the next two consecutive follow-up terminal
24inspections or (2) received an unsatisfactory compliance rating for
25three consecutive regular terminal inspections irrespective of
26receiving satisfactory ratings on the follow-up inspections
27associated with the first two terminal inspections, the department
28shall recommend to the Public Utilities Commission that the
29carrier’s operating authority be suspended, denied, or revoked, or
30 to the United States Department of Transportation that appropriate
31administrative action be taken against the carrier’s interstate
32operating authority, whichever is appropriate.

33(d) Before transmitting a recommendation pursuant to this
34section, the department shall notify the carrier in writing of all of
35the following:

36(1) That the department has determined that the carrier’s safety
37record is unsatisfactory, furnishing a copy of any documentation
38or summary of any other evidence supporting the determination.

39(2) That the determination may result in a suspension,
40revocation, or denial of the carrier’s operating authority by the
P16   1Public Utilities Commission or the United States Department of
2Transportation, as appropriate.

3(3) That the carrier may request a review of the determination
4by the department within five days of its receipt of the notice
5required under this subdivision. If a review is requested by the
6carrier, the department shall conduct and evaluate that review prior
7to transmitting any notification pursuant to this section.

8(e) Notwithstanding anything to the contrary in subdivision (a),
9(b), or (c), upon determining during a terminal inspection or at any
10other time that the condition of a tour bus is such that it has
11multiple safety violations of a nature that operation of the tour bus
12could constitute an imminent danger to public safety, the
13department shall immediately order the tour bus out of service.
14The tour bus shall not be subsequently operated with passengers
15until all of the safety violations have been corrected and the
16department has verified the correction of the safety violations upon
17a subsequent inspection by the department of the tour bus, which
18shall occur within five business days of the submission of a
19reinspection request from the tour bus carrier to the department.

20(f) The department shall retain a record, by carrier, of every
21recommendation made pursuant to this section.

22

begin deleteSEC. 11.end delete
23
begin insertSEC. 8.end insert  

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

24

34505.2.  

(a) (1) The department shall conduct unannounced
25surprise inspections of charter-party carriers of passengers and
26passenger stage corporations operating one or more tour buses in
27addition to regularly scheduled inspections.

28(2) The department shall prioritize unannounced surprise
29inspections of companies that are noncompliant, have a history of
30noncompliance with safety laws or regulations, or that have
31received unsatisfactory ratings.

32(b) Each fiscal year, no fewer than 10 percent of the total number
33of tour bus carrier inspections conducted by the department shall
34be unannounced surprise inspections.

35

begin deleteSEC. 12.end delete
36
begin insertSEC. 9.end insert  

Section 34513 of the Vehicle Code is amended to read:

37

34513.  

(a) The department shall adopt rules and regulations
38relating to the equipment, maintenance, and operation of tour buses.

39(b) (1) The department shall, by regulation, develop and adopt
40a fee structure for bus terminal inspections of charter-party carriers
P17   1of passengers and passenger stage corporations, to be paid by
2charter-party carriers of passengers and passenger stage
3corporations that operate one or more tour buses. The fees shall
4be scaled and based upon the number of buses operated by or for
5a company and shall be collected upon initial application and
6annually thereafter by the Public Utilities Commission pursuant
7to Section 5373.1 for carriers subject to that section, or as otherwise
8provided in regulations. The fees shall be in an amount sufficient
9to offset the costs to administer the inspection program as it
10pertains to charter-party carriers of passengers and passenger stage
11corporations, and revenues from the fees shall be deposited in the
12Motor Vehicle Account in the State Transportation Fund.

13(2) The revenues from the fees shall not be used to supplant
14other sources of funding for, or otherwise support, any other
15inspection program conducted by the department.

16(3) When developing the regulations, the department shall
17consider measures that increase efficiencies to limit the financial
18impact to charter-party carriers of passengers and passenger stage
19corporations subject to the fees.

20(4) The department shall adopt the regulations in consultation
21with appropriate interested parties.

22(5) In no instance shall an operating carrier be charged more
23than six thousand five hundred dollars ($6,500).

24(c) (1) No later than January 1, 2018, the department shall, by
25regulation, modify its existing tour bus terminal inspection program
26to ensure that the performance-based program targets companies
27that are noncompliant, have a history of noncompliance with safety
28laws or regulations, or that have received unsatisfactory ratings.

29(2) If a carrier receives an unsatisfactory rating, the department
30shall conduct a followup inspection no later than 30 days after the
31initial inspection during which an unsatisfactory rating was deemed
32appropriate.

33(3) It is the intent of the Legislature that, to the greatest extent
34possible, the bus inspection program shall strive to inspect as many
35tour buses operated by or for charter-party carriers of passengers
36and passenger stage corporations as possible.

37

begin deleteSEC. 13.end delete
38
begin insertSEC. 10.end insert  

No reimbursement is required by this act pursuant to
39Section 6 of Article XIII B of the California Constitution because
40the only costs that may be incurred by a local agency or school
P18   1district will be incurred because this act creates a new crime or
2infraction, eliminates a crime or infraction, or changes the penalty
3for a crime or infraction, within the meaning of Section 17556 of
4the Government Code, or changes the definition of a crime within
5the meaning of Section 6 of Article XIII B of the California
6Constitution.



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