Amended in Assembly June 16, 2016

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 5378.5 of 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 inspectionbegin delete fees of $15 per tour bus, up to a maximum of $6,500,end deletebegin insert feesend insert to offset the costs of inspections of the Department of the California Highwaybegin delete 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.end deletebegin insert Patrol.end insert 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 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 require the department to inspect a maintenance facility or terminal that receives 2 or more successive satisfactory ratings at least once every 26 months instead of at least once every 13 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 satisfactorybegin delete rating, unless the satisfactory rating is the result of a reinspection, as specified.end deletebegin insert rating during a regular terminal inspection. If the satisfactory rating is the result of a reinspection, the bill would require the next regular terminal inspection to be conducted within 6 months.end insert

begin delete

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.

end delete

This bill would requirebegin delete the Department of the California Highway Patrol, by regulation, to modifyend deletebegin insert that the fees collected to affect the costs of inspections not be used to supplement other sources of funding or support for any other inspection program conducted by the Department of the California Highway Patrol and would require the department to modify, by regulation,end insert 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.

(2) 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:

P4    1

SECTION 1.  

Section 1033.7 of the Public Utilities Code is
2amended to read:

3

1033.7.  

(a) Upon receipt of a written recommendation from
4the Department of the California Highway Patrol that the certificate
5of a passenger stage corporation be suspended (1) for failure to
6maintain any vehicle used in transportation for compensation in a
7safe operating condition or to comply with the Vehicle Code or
8with regulations contained in Title 13 of the California Code of
9Regulations relative to motor carrier safety, if that failure is either
10a consistent failure or presents an imminent danger to public safety,
11(2) for failure to enroll all drivers in the pull notice system as
12required by Section 1808.1 of the Vehicle Code, or (3) for receiving
13an unsatisfactory compliance rating in three consecutive terminal
14 inspections as specified in subdivision (c) of Section 34505.1 of
15the Vehicle Code, the commission shall, pending a hearing in the
16matter pursuant to subdivision (d), suspend the corporation’s
17certificate. The department’s written recommendation shall
18specifically indicate compliance with subdivision (c).

19(b) A corporation whose certificate is suspended pursuant to
20subdivision (a) may obtain a reinspection of its terminal and
21vehicles by the department, by submitting a written request for
P5    1reinstatement to the commission and paying a reinstatement fee
2of one hundred twenty-five dollars ($125). The commission shall
3deposit all reinstatement fees collected pursuant to this subdivision
4in the Public Utilities Commission Transportation Reimbursement
5Account. The commission shall forward a request for reinspection
6to the department which shall perform a reinspection within a
7reasonable time. The commission shall reinstate a corporation’s
8certificate suspended under subdivision (a) promptly upon receipt
9of a written recommendation from the department that the
10corporation’s safety compliance has improved to the satisfaction
11of the department, unless the certificate is suspended for another
12reason or has been revoked.

13(c) Before transmitting a recommendation pursuant to
14subdivision (a) to the commission, the Department of the California
15Highway Patrol shall notify the passenger stage corporation in
16writing of all of the following:

17(1) That the department has determined that the corporation’s
18safety record is unsatisfactory, furnishing a copy of any
19documentation or summary of any other evidence supporting the
20 determination.

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

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

29(d) Whenever the commission suspends the certificate of any
30passenger stage corporation pursuant to subdivision (a), the
31commission shall furnish the corporation 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 corporation
36shall show cause why the suspension should not be continued. At
37the conclusion of the hearing, the commission may, in addition to
38any other applicable penalty provided in this part, terminate the
39suspension, continue the suspension in effect, or revoke the
40certificate. The commission may revoke the certificate of any
P6    1passenger stage corporation suspended pursuant to subdivision (a)
2at any time 90 days or more after its suspension if the commission
3has not received a written recommendation for reinstatement from
4the department and the corporation has not filed a written request
5for a hearing with the commission.

6(e) If the commission, after a hearing, finds that a passenger
7stage corporation has continued to operate as such after its
8certificate has been suspended pursuant to subdivision (a), the
9commission shall do one of the following:

10(1) Revoke the certificate of the corporation.

11(2) Impose upon the holder of the certificate a civil penalty of
12not less than one thousand dollars ($1,000) nor more than five
13thousand dollars ($5,000) for each day of unlawful operations.

14

SEC. 2.  

Section 5373.1 of the Public Utilities Code is amended
15to read:

16

5373.1.  

(a) Each application for a charter-party carrier of
17passengers certificate or permit shall be accompanied by a filing
18fee as follows:

19(1) Class A certificates (new): one thousand five hundred dollars
20($1,500).

21(2) Class A certificates (renewal): one hundred dollars ($100).

22(3) Class B certificates (new): one thousand dollars ($1,000).

23(4) Class B certificates (renewal): one hundred dollars ($100).

24(5) Class C certificates (new): one thousand dollars ($1,000).

25(6) Class C certificates (renewal): one hundred dollars ($100).

26(7) Permits (new): one thousand dollars ($1,000).

27(8) Permits (renewal): one hundred dollars ($100).

28(b) The commission shall also require each application to be
29accompanied by a fee to offset the cost of the charter-party carrier
30bus terminal inspections conducted by the Department of the
31California Highway Patrol. The fee shall be fifteen dollars ($15)
32per tour bus, as defined in Section 612 of the Vehicle Code, or a
33maximum of six thousand five hundred dollars ($6,500) for each
34operating begin delete carrier, until the effective date of the new fee structure
35established by the Department of the California Highway Patrol
36pursuant to subdivision (b) of Section 34513 of the Vehicle Code.end delete

37
begin insert carrier.end insert

38(c) The commission shall require each charter-party carrier that
39operates tour buses, as defined in Section 612 of the Vehicle Code,
40to undergo an annual bus terminal inspection conducted by the
P7    1Department of the California Highway Patrol and to pay an annual
2fee of fifteen dollars ($15) per tour bus, or a maximum of six
3thousand five hundred dollars ($6,500), to offset the cost of the
4
begin delete inspections, until the effective date of the new fee structure
5established by the Department of the California Highway Patrol
6pursuant to subdivision (b) of Section 34513 of the Vehicle Code.end delete

7
begin insert inspections.end insert

8(d) The commission shall deposit the fees collected pursuant to
9subdivisions (b) and (c) in the Motor Vehicle Account in the State
10 Transportation Fund to cover the costs of the inspections conducted
11by the department as specified in subdivisions (b) and (c). The
12revenues from the fees shall not be used to supplant other sources
13of funding for, or otherwise support, any other inspection program
14conducted by the department.

15

SEC. 3.  

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

17

5378.5.  

(a) Upon receipt of a written recommendation from
18the Department of the California Highway Patrol that the certificate
19or permit of a charter-party carrier be suspended (1) for failure to
20maintain any vehicle used in transportation for compensation in a
21safe operating condition or to comply with the Vehicle Code or
22with regulations contained in Title 13 of the California Code of
23Regulations relative to motor carrier safety if that failure is either
24a consistent failure or presents an imminent danger to public safety,
25(2) for failure to enroll all drivers in the pull notice system as
26required by Section 1808.1 of the Vehicle Code, or (3) for receiving
27an unsatisfactory compliance rating in three consecutive terminal
28inspections as specified in subdivision (c) of Section 34505.1 of
29the Vehicle Code, the commission shall, pending a hearing in the
30matter pursuant to subdivision (d), suspend the carrier’s certificate
31or permit. The written recommendation shall specifically indicate
32compliance with subdivision (c).

33(b) A carrier whose certificate or permit is suspended pursuant
34to subdivision (a) may obtain a reinspection of its terminal and
35vehicles by the department, by submitting a written request for
36reinstatement to the commission and paying a reinstatement fee
37of one thousand dollars ($1,000). The commission shall deposit
38all reinstatement fees collected pursuant to this subdivision in the
39Public Utilities Commission Transportation Reimbursement
40Account. The commission shall then forward a request for
P8    1reinspection to the department which shall then perform a
2reinspection within a reasonable time. The commission shall
3reinstate a carrier’s certificate or permit suspended under
4subdivision (a) promptly upon receipt of a written recommendation
5from the department that the carrier’s safety compliance has
6improved to the satisfaction of the department, unless the certificate
7or permit is suspended for another reason, or has been revoked.

8(c) Before transmitting a recommendation pursuant to
9subdivision (a) to the commission, the Department of the California
10Highway Patrol shall notify the charter-party carrier in writing of
11all of the following:

12(1) That the department has determined that the carrier’s safety
13record is unsatisfactory, furnishing a copy of any documentation
14or summary of any other evidence supporting the determination.

15(2) That the determination may result in suspension or
16revocation of the carrier’s certificate or permit by the commission.

17(3) That the carrier may request a review of the determination
18by the department within five days of its receipt of the notice
19required under this subdivision. If a review pursuant to this
20paragraph is requested by the carrier, the department shall conduct
21and evaluate that review prior to transmitting any notification to
22the commission pursuant to subdivision (a).

23(d) Whenever the commission suspends the certificate or permit
24of any charter-party carrier pursuant to subdivision (a), the
25commission shall furnish the carrier written notice of the
26suspension and shall hold a hearing within a reasonable time, not
27to exceed 21 days, after a written request therefor is filed with the
28commission, with a copy thereof furnished to the Department of
29the California Highway Patrol. At the hearing, the carrier shall
30show cause why the suspension should not be continued. At the
31conclusion of the hearing, the commission may, in addition to any
32other penalty provided in this chapter, terminate the suspension,
33continue the suspension in effect, or revoke the certificate or
34permit. The commission may revoke the certificate or permit of
35any carrier suspended pursuant to subdivision (a) at any time 90
36days or more after its suspension if the commission has not
37received a written recommendation for reinstatement from the
38department and the carrier has not filed a written request for a
39hearing with the commission.

P9    1(e) If the commission, after a hearing, finds that a charter-party
2carrier has continued to operate as such a carrier after its certificate
3or permit has been suspended pursuant to subdivision (a), the
4commission shall do one of the following:

5(1) Revoke the operating certificate or permit of the carrier.

6(2) Impose upon the holder of the certificate or permit a civil
7penalty of not less than one thousand five hundred dollars ($1,500)
8nor more than seven thousand five hundred dollars ($7,500) for
9each day of unlawful operations.

10

SEC. 4.  

Section 612 of the Vehicle Code is amended to read:

11

612.  

“Tour bus” means a vehicle designed, used, or maintained
12for carrying more than 10 persons, including the driver, which is
13operated by or for a charter-party carrier of passengers, as defined
14in Section 5360 of the Public Utilities Code, or a passenger stage
15corporation, as defined in Section 226 of the Public Utilities Code.

16

SEC. 5.  

Section 34501 of the Vehicle Code is amended to read:

17

34501.  

(a) (1) The department shall adopt reasonable rules
18and regulations that, in the judgment of the department, are
19designed to promote the safe operation of vehicles described in
20Section 34500, regarding, but not limited to, controlled substances
21and alcohol testing of drivers by motor carriers, hours of service
22of drivers, equipment, fuel containers, fueling operations,
23inspection, maintenance, recordkeeping, accident reports, and
24drawbridges. The rules and regulations shall not, however, be
25applicable to schoolbuses, which shall be subject to rules and
26regulations adopted pursuant to Section 34501.5.

27The rules and regulations shall exempt local law enforcement
28agencies, within a single county, engaged in the transportation of
29 inmates or prisoners when those agencies maintain other motor
30vehicle operations records which furnish hours of service
31information on drivers which are in substantial compliance with
32the rules and regulations. This exemption does not apply to any
33local law enforcement agency engaged in the transportation of
34inmates or prisoners outside the county in which the agency is
35located, if that agency would otherwise be required, by existing
36law, to maintain driving logs.

37(2) The department may adopt rules and regulations relating to
38commercial vehicle safety inspection and out-of-service criteria.
39In adopting the rules and regulations, the commissioner may
40consider the commercial vehicle safety inspection and
P10   1out-of-service criteria adopted by organizations such as the
2Commercial Vehicle Safety Alliance, other intergovernmental
3safety group, or the United States Department of Transportation.
4The commissioner may provide departmental representatives to
5 that alliance or other organization for the purpose of promoting
6the continued improvement and refinement of compatible
7nationwide commercial vehicle safety inspection and out-of-service
8criteria.

9(3) The commissioner shall appoint a committee of 15 members,
10consisting of representatives of industry subject to the regulations
11to be adopted pursuant to this section, to act in an advisory capacity
12to the department, and the department shall cooperate and confer
13with the advisory committee so appointed. The commissioner shall
14appoint a separate committee to advise the department on rules
15and regulations concerning wheelchair lifts for installation and use
16on buses, consisting of persons who use the wheelchair lifts,
17representatives of transit districts, representatives of designers or
18manufacturers of wheelchairs and wheelchair lifts, and
19representatives of the Department of Transportation.

20(4) The department may inspect any vehicles in maintenance
21facilities or terminals, as well as any records relating to the dispatch
22of vehicles or drivers, and the pay of drivers, to ensure compliance
23with this code and regulations adopted pursuant to this section.

24(b) The department, using the definitions adopted pursuant to
25Section 2402.7, shall adopt regulations for the transportation of
26hazardous materials in this state, except the transportation of
27materials which are subject to other provisions of this code, that
28the department determines are reasonably necessary to ensure the
29safety of persons and property using the highways. The regulations
30may include provisions governing the filling, marking, packing,
31labeling, and assembly of, and containers that may be used for,
32hazardous materials shipments, and the manner by which the
33shipper attests that the shipments are correctly identified and in
34proper condition for transport.

35(c) (1) Except as provided in paragraphs (2) and (3), at least
36once every 13 months, the department shall inspect every
37maintenance facility or terminal of any person who at any time
38operates any bus. If the bus operation includes more than 100
39buses, the inspection shall be without prior notice.

P11   1(2) A maintenance facility or terminal that receives two or more
2begin delete successiveend deletebegin insert consecutiveend insert satisfactory ratings shall be inspected at
3least once every 26 months unless the satisfactory rating is the
4result of a reinspection required pursuant to paragraph (2) of
5subdivision (c) of Section 34513.

6(3) A maintenance facility or terminal that receives an
7unsatisfactory rating shall be inspected every six months until the
8operator achieves a satisfactorybegin delete rating.end deletebegin insert rating during a regular
9terminal inspection. Following the assignment of a satisfactory
10rating as the result of a reinspection pursuant to paragraph (2) of
11subdivision (c) of Section 34513, the next regular terminal
12inspection shall be conducted within six months.end insert

13(d) The commissioner shall adopt and enforce regulations which
14will make the public or private users of any bus aware of the
15operator’s last safety rating.

16(e) It is unlawful and constitutes a misdemeanor for any person
17to operate any bus without thebegin delete inspectionend deletebegin insert inspectionsend insert specified in
18subdivision (c) having been conducted.

19(f) The department may adopt regulations restricting or
20prohibiting the movement of any vehicle from a maintenance
21facility or terminal if the vehicle is found in violation of this code
22or regulations adopted pursuant to this section.

23

SEC. 6.  

Section 34505 of the Vehicle Code is amended to read:

24

34505.  

(a) Tour bus operators shall, in addition to the
25systematic inspection, maintenance, and lubrication services
26required of all motor carriers, require each tour bus to be inspected
27at least every 45 days, or more often if necessary to ensure safe
28operation. This inspection shall include, but not be limited to, all
29of the following:

30(1) Brake adjustment.

31(2) Brake system components and leaks.

32(3) Steering and suspension systems.

33(4) Tires and wheels.

34(b) A tour bus shall not be used to transport passengers until all
35defects listed during the inspection conducted pursuant to
36subdivision (a) have been corrected and attested to by the signature
37of the operator’s authorized representative.

38(c) Records of inspections conducted pursuant to subdivision
39(a) shall be kept at the operator’s maintenance facility or terminal
40where the tour bus is regularly garaged. The records shall be
P12   1retained by the operator for one year, and shall be made available
2for inspection upon request by any authorized employee of the
3department. Each record shall include, but not be limited to, all of
4the following:

5(1) Identification of the vehicle, including make, model, license
6number, or other means of positive identification.

7(2) Date and nature of each inspection and any repair performed.

8(3) Signature of operator’s authorized representative attesting
9to the inspection and to the completion of all required repairs.

10(4) Company vehicle number.

11(d) Prior to operating a newly acquired tour bus that is more
12than two years old, a charter-party carrier of passengers or a
13passenger stage corporation that has received an unsatisfactory
14rating and is being inspected every six months pursuant to
15paragraph (3) of subdivision (c) of Section 34501, shall first
16schedule an inspection of the tour bus with, and obtain a
17satisfactory rating for the tour bus from, the department. This
18requirement shall not apply to a charter-party carrier of passengers
19or a passenger stage corporation that has received two or more
20begin delete successiveend deletebegin insert consecutiveend insert satisfactory ratings and is being inspected
21pursuant to the inspection schedule authorized under paragraph
22(2) of subdivision (c) of Section 34501.

23

SEC. 7.  

Section 34505.1 of the Vehicle Code is amended to
24read:

25

34505.1.  

(a) Upon determining that a tour bus carrier or
26modified limousine carrier has either (1) failed to maintain any
27vehicle used in transportation for compensation in a safe operating
28condition or to comply with the Vehicle Code or with regulations
29contained in Title 13 of the California Code of Regulations relative
30to motor carrier safety, and, in the department’s opinion, that failure
31presents an imminent danger to public safety or constitutes such
32a consistent failure as to justify a recommendation to the Public
33Utilities Commission or the United States Department of
34Transportation or (2) failed to enroll all drivers in the pull notice
35system as required by Section 1808.1, the department shall
36recommend to the Public Utilities Commission that the carrier’s
37operating authority be suspended, denied, or revoked, or to the
38United States Department of Transportation that appropriate
39administrative action be taken against the carrier’s interstate
40operating authority, whichever is appropriate.

P13   1(b) For purposes of this section, two consecutive unsatisfactory
2compliance ratings for an inspected terminal assigned because the
3tour bus carrier or modified limousine carrier failed to comply
4with the periodic report requirements of Section 1808.1 or the
5cancellation of the carrier’s enrollment by the Department of Motor
6Vehicles for nonpayment of required fees may be determined by
7the department to be a consistent failure. However, when
8recommending denial of an application for new or renewal
9authority, the department need not conclude that the carrier’s failure
10presents an imminent danger to public safety or that it constitutes
11a consistent failure. The department need only conclude that the
12carrier’s compliance with the safety-related matters described in
13paragraph (1) of subdivision (a) is sufficiently unsatisfactory to
14justify a recommendation for denial.

15(c) If a tour bus or modified limousine carrier has either (1)
16received an unsatisfactory compliance rating for a regular terminal
17inspection and the next two consecutive follow-up terminal
18inspections or (2) received an unsatisfactory compliance rating for
19three consecutive regular terminal inspections irrespective of
20receiving satisfactory ratings on the follow-up inspections
21associated with the first two terminal inspections, the department
22shall recommend to the Public Utilities Commission that the
23carrier’s operating authority be suspended, denied, or revoked, or
24 to the United States Department of Transportation that appropriate
25administrative action be taken against the carrier’s interstate
26operating authority, whichever is appropriate.

27(d) Before transmitting a recommendation pursuant to this
28section, the department shall notify the carrier in writing of all of
29the following:

30(1) That the department has determined that the carrier’s safety
31record is unsatisfactory, furnishing a copy of any documentation
32or summary of any other evidence supporting the determination.

33(2) That the determination may result in a suspension,
34revocation, or denial of the carrier’s operating authority by the
35Public Utilities Commission or the United States Department of
36Transportation, as appropriate.

37(3) That the carrier may request a review of the determination
38by the department within five days of its receipt of the notice
39required under this subdivision. If a review is requested by the
P14   1carrier, the department shall conduct and evaluate that review prior
2to transmitting any notification pursuant to this section.

3(e) Notwithstanding anything to the contrary in subdivision (a),
4(b), or (c), upon determining during a terminal inspection or at any
5other time that the condition of a tour bus is such that it has
6multiple safety violations of a nature that operation of the tour bus
7could constitute an imminent danger to public safety, the
8department shall immediately order the tour bus out of service.
9The tour bus shall not be subsequently operated with passengers
10until all of the safety violations have been corrected and the
11department has verified the correction of the safety violations upon
12a subsequent inspection by the department of the tour bus, which
13shall occur within five business days of the submission of a
14reinspection request from the tour bus carrier to the department.

15(f) The department shall retain a record, by carrier, of every
16recommendation made pursuant to this section.

17

SEC. 8.  

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

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.

29

SEC. 9.  

Section 34513 of the Vehicle Code is amended to read:

30

34513.  

(a) The department shall adopt rules and regulations
31relating to the equipment, maintenance, and operation of tour buses.

begin delete

32(b) (1) The department shall, by regulation, develop and adopt
33a fee structure for bus terminal inspections of charter-party carriers
34of passengers and passenger stage corporations, to be paid by
35charter-party carriers of passengers and passenger stage
36corporations that operate one or more tour buses. The fees shall
37be scaled and based upon the number of buses operated by or for
38a company and shall be collected upon initial application and
39annually thereafter by the Public Utilities Commission pursuant
40to Section 5373.1 for carriers subject to that section, or as otherwise
P15   1provided in regulations. The fees shall be in an amount sufficient
2to offset the costs to administer the inspection program as it
3pertains to charter-party carriers of passengers and passenger stage
4corporations, and revenues from the fees shall be deposited in the
5Motor Vehicle Account in the State Transportation Fund.

6(2) The revenues from the fees shall not be used to supplant
7other sources of funding for, or otherwise support, any other
8inspection program conducted by the department.

9(3) When developing the regulations, the department shall
10consider measures that increase efficiencies to limit the financial
11impact to charter-party carriers of passengers and passenger stage
12corporations subject to the fees.

13(4) The department shall adopt the regulations in consultation
14with appropriate interested parties.

15(5) In no instance shall an operating carrier be charged more
16than six thousand five hundred dollars ($6,500).

17(c)

end delete

18begin insert(b)end insert (1) No later than January 1, 2018, the department shall, by
19regulation, modify its existing tour bus terminal inspection program
20to ensure that the performance-based program targets companies
21that are noncompliant, have a history of noncompliance with safety
22laws or regulations, or that have received unsatisfactory ratings.

23(2) If a carrier receives an unsatisfactory rating, the department
24shall conduct a followup inspection no later than 30 days after the
25initial inspection during which an unsatisfactory rating was deemed
26appropriate.

27(3) It is the intent of the Legislature that, to the greatest extent
28possible, the bus inspection program shall strive to inspect as many
29tour buses operated by or for charter-party carriers of passengers
30and passenger stage corporations as possible.

31

SEC. 10.  

No reimbursement is required by this act pursuant to
32Section 6 of Article XIII B of the California Constitution because
33the only costs that may be incurred by a local agency or school
34district will be incurred because this act creates a new crime or
35infraction, eliminates a crime or infraction, or changes the penalty
36for a crime or infraction, within the meaning of Section 17556 of
37the Government Code, or changes the definition of a crime within
P16   1the meaning of Section 6 of Article XIII B of the California
2Constitution.



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