BILL NUMBER: SB 1403 CHAPTERED 09/30/00 CHAPTER 1035 FILED WITH SECRETARY OF STATE SEPTEMBER 30, 2000 APPROVED BY GOVERNOR SEPTEMBER 30, 2000 PASSED THE SENATE AUGUST 31, 2000 PASSED THE ASSEMBLY AUGUST 31, 2000 AMENDED IN ASSEMBLY AUGUST 29, 2000 AMENDED IN ASSEMBLY AUGUST 24, 2000 AMENDED IN ASSEMBLY AUGUST 18, 2000 AMENDED IN ASSEMBLY JULY 3, 2000 AMENDED IN ASSEMBLY JUNE 20, 2000 AMENDED IN ASSEMBLY JUNE 8, 2000 AMENDED IN SENATE APRIL 11, 2000 AMENDED IN SENATE MARCH 2, 2000 INTRODUCED BY Committee on Transportation (Senators Karnette (Chair), Costa, Dunn, Figueroa, Hayden, Monteith, Murray, Rainey, and Speier) JANUARY 31, 2000 An act to amend Sections 11629.8 and 11629.991 of the Insurance Code, to amend Sections 120222, 120450, and 120451 of the Public Utilities Code, and to amend Sections 505.2, 1655, 1808.1, 4000.37, 4152.5, 4451, 4751, 5600, 5900, 11730, 11738, 12509, 12514, 12810, 12814.6, 16020, 16020.1, 16020.2, 16021, 16054.2, 16056, 22451, and 24604 of, to amend, repeal, and add Section 12804.9 of, to to add and repeal Sections 2408.5 and 16056.1 of, the Vehicle Code, and to amend Section 1 of Chapter 607 of the Statutes of 1999, relating to transportation. LEGISLATIVE COUNSEL'S DIGEST SB 1403, Committee on Transportation. Transportation. (1) Existing law provides for the issuance of a low-cost automobile liability insurance policy in the County of Los Angeles and the City and County of San Francisco, as specified. This bill would make technical, clarifying, and conforming changes to certain of these and related provisions. The bill would, until January 1, 2004, provide that the low-cost insurance provisions meet statutory liability insurance requirements. (2) Existing law creates the San Diego Metropolitan Transit Development Board in San Diego County with specified transportation powers. Under existing law, contracts let by the board for the purchase of supplies, equipment, and materials in excess of $10,000 are required to be awarded to the lowest responsible bidder, as specified. This bill would increase from $10,000 to $50,000 the amount of a contract let by the board that would be required to be awarded to the lowest responsible bidder and make a related change. (3) Under existing law, a violation of an ordinance, rule, or regulation enacted by the San Diego Metropolitan Transit Development Board relating to the nonpayment of a fare or prohibiting unauthorized operation or manipulation of transit facilities owned or controlled by the board is a crime, as specified. This bill would expand those provisions to include nonpayment of a fare on any transit vehicle, and to include transit facilities, or stations used by the board in addition to those owned or controlled by the board, thereby imposing a state-mandated local program by enlarging the scope of a crime. (4) Existing law makes references to a specific division within the Department of Motor Vehicles that engages in investigations and audits, and designates certain personnel within the department as peace officers for specified purposes. This bill would correct obsolete references to the investigation and audit division including the language of a statutory notice in certain conditional sales contracts and would make other technical and clarifying changes. (5) Existing law requires a specified time period in which to register a motor vehicle last registered in a foreign jurisdiction. This bill would reference a statutory exception to that time period. (6) Existing law references federal law in certain vehicle ownership, registration, and titling circumstances. This bill would correct obsolete references to federal law. (7) Existing law requires a driver of any vehicle approaching a railroad crossing to stop at a specified distance from the rail and not proceed until certain conditions exist. Existing law also prohibits a driver from proceeding through, around, or under a closed railroad crossing gate. This bill would apply those provisions to a pedestrian, thereby expanding an existing crime, and imposing a state-mandated local program. (8) Existing law requires the Department of Motor Vehicles to require any applicant for a driver's license to submit to an examination appropriate to the type of motor vehicle or combination of motor vehicles that the applicant desires to drive, in accordance to specified classifications. Under existing law, until January 1, 2001, a class C driver's license authorizes the driving of any 2-axle vehicle with a gross vehicle weight rating of 26,000 pounds or less, if it is operated by a farmer, an employee of a farmer, or an instructor credentialed in agriculture as part of an instructional program in agriculture at the high school, community college, or university level, is used exclusively in the conduct of agricultural operations, and is not used in the capacity of a for-hire carrier or for compensation. Existing law, until January 1, 2001, provides that a class C driver's license authorizes the driving of certain combination vehicles when towing a boat trailer, as specified. Existing law, operative on January 1, 2001, does not contain these provisions for class C driver's licenses. This bill would delete the provisions limiting the authority to drive the above described farm and agricultural-related vehicles until January 1, 2001, thereby continuing indefinitely the authority of a class C driver's licenseholder to drive those vehicles. The bill would also delete the provisions limiting the driving of the above described combination vehicles when towing a boat trailer, subject to further limiting the provision of towing a boat trailer to a singular motor vehicle over 4,000 pounds unladen. The provisions relating to the towing of a boat trailer would be repealed on January 1, 2004. The bill would require the Department of the California Highway Patrol to compile traffic collision data on vehicles towing boat trailers, as specified, and report its findings to the Legislature on or before April 1, 2003. (9) Existing law requires that when the load or a part of the vehicle extends four feet or more beyond the bed or body of the vehicle, specified warning lights or flags shall be attached to the load or projecting part of the vehicle. This bill would specify that the required warning lights or flag be attached if the load or part of the vehicle extends to the rear four feet or more beyond the rear of the vehicle. (10) Existing law provides an exemption for persons engaged in the business of a registration service for persons who provide registration services to permanent fleet registration and international registration plan vehicle owners. This bill would delete that exemption. (11) Existing law requires employers enrolled in the Employer Pull Notice (EPN) program with less than 500 employees to obtain a driving record every 6 months of their employees who drive specified commercial motor vehicles and employers with more than 500 employees are required to do so every 12 months. This bill would allow all employers enrolled in the EPN program to obtain driving records of their drivers every 12 months instead of every 6 months. (12) Existing law requires all drivers to have evidence of financial responsibility with them at all times and defines evidence of financial responsibility. This bill would add an evidence form issued by a charitable risk pool department to the current list of evidence of financial responsibility. (13) Existing law defines financial responsibility for purposes of a driver or owner of a vehicle involved in an accident. This bill would establish that evidence of coverage provided by a charitable risk pool is also acceptable evidence of financial responsibility during an accident. (14) Existing law describes the different methods for establishing proof of financial responsibility. This bill would provide that another acceptable form of evidence of financial responsibility is evidence of a liability policy, issued by a charitable risk pool. This bill would establish the minimum limits of an automobile policy issued by a charitable risk pool. (15) Existing law provides that upon application for or renewal of registration of a motor vehicle, the applicant must submit evidence of financial responsibility. This bill would provide that an evidence form issued by a charitable risk pool to nonprofit organizations is an acceptable form of proof of financial responsibility. (16) Existing law provides for the issuance of a provisional driver's license to persons at least 16 but under 18 years of age. This bill would reorganize these provisions for clarification and consistency. The bill would also revise related provisions concerning sanctions for violating driving restrictions applicable to persons with provisional driver's licenses. By establishing a new crime this bill would impose a state-mandated local program. (17) Existing law declares the Legislature's intent, commencing July 1, 1991, to allocate $10,000,000 annually for 10 years to the Environmental Enhancement and Mitigation Demonstration Program Fund to be used for making grants to local, state, and federal agencies and nonprofit entities that undertake projects to mitigate the adverse environmental effects of existing and future transportation facilities. However, existing law requires the Department of Transportation to extend the completion date to June 30, 2002, for specified environmental enhancement and mitigation projects. This bill would include a specific project of the East Bay Regional Park District within the listing of projects that the completion date has been extended to June 30, 2002. (18) Under existing law, the Department of Transportation has full possession and control of all state highways and all property and rights in property acquired for state highway purposes. This bill would authorize the City of Napa to transfer to the Department of Transportation, at no cost to the department, any property acquired by the city for completion of the Trancas Interchange Project in that city that is no longer required for completion of the project, if the city and the department enter into an agreement providing that (1) after completion of the project, the department shall combine the properties on the east side of State Highway Route 29 with any excess property acquired by the city and the state for the project and shall market and sell the combined package for a fair market price in accordance with established real estate practices; and (2) the department shall segregate all net proceeds from the sale of the combined properties, and the department shall use those proceeds to defray the costs of the project. (19) This bill would incorporate additional changes in Section 4000.37 of the Vehicle Code proposed by SB 1996, to be operative only if this bill and SB 1996 are enacted and become effective on or before January 1, 2001, each bill amends Section 4000.37 of the Vehicle Code, and this bill is enacted last. (20) This bill would incorporate additional changes in Section 12810 of the Vehicle Code proposed by SB 567, to become operative only if both bills are enacted and become effective on or before January 1, 2001, each bill amends Section 12810 of the Vehicle Code, and this bill is enacted last. (21) 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. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 11629.8 of the Insurance Code is amended to read: 11629.8. Notwithstanding the coverage amounts required by Section 16056 of the Vehicle Code, a low-cost automobile policy issued under the pilot program shall satisfy the financial responsibility requirements of Sections 4000.37, 16021, and 16431 of the Vehicle Code. SEC. 2. Section 11629.991 of the Insurance Code is amended to read: 11629.991. Notwithstanding the coverage amounts required by Section 16056 of the Vehicle Code, a low-cost automobile policy issued under the pilot program shall satisfy the financial responsibility requirements of Sections 4000.37, 16021, and 16431 of the Vehicle Code. SEC. 2.2. Section 120222 of the Public Utilities Code is amended to read: 120222. Contracts for the purchase of supplies, equipment, and materials in excess of fifty thousand dollars ($50,000) shall be awarded to the lowest responsible bidder submitting a responsive bid after competitive bidding, except in emergency declared by the vote of two-thirds of the membership of the board. When the expected purchase contract exceeds one thousand dollars ($1,000) and does not exceed fifty thousand dollars ($50,000), the board shall seek a minimum of three quotations, either written or oral, which permit prices and other terms to be compared. SEC. 2.4. Section 120450 of the Public Utilities Code is amended to read: 120450. Violation of any ordinance, rule, or regulation enacted by the board relating to the nonpayment of a fare on any transit vehicle or in any transit station owned, controlled, or used by the board shall be an infraction punishable by a fine not exceeding seventy-five dollars ($75), except that a violation by a person, after the second conviction under this section, shall be a misdemeanor punishable by a fine not exceeding five hundred dollars ($500) or by imprisonment in the county jail not exceeding six months, or by both the fine and imprisonment. SEC. 2.6. Section 120451 of the Public Utilities Code is amended to read: 120451. Violation of any ordinance, rule, or regulation enacted by the board prohibiting unauthorized operation or manipulation of transit facilities owned, controlled, or used by the board, or prohibiting unauthorized tampering or interference with, or loitering in or about, transit facilities owned, controlled, or used by the board, including, but not limited to, transit centers, rail stations, bus shelters, and bus stops on public and private property, is an infraction punishable by a fine not exceeding fifty dollars ($50), except that such a violation by a person, after the first conviction under this section, is a misdemeanor punishable by a fine not exceeding five hundred dollars ($500) or by imprisonment not exceeding six months, or by both that fine and imprisonment. SEC. 3. Section 505.2 of the Vehicle Code is amended to read: 505.2. (a) A "registration service" is a person engaged in the business of soliciting or receiving any application for the registration, renewal of registration, or transfer of registration or ownership, of any vehicle of a type subject to registration under this code, or of transmitting or presenting any of those documents to the department, when any compensation is solicited or received for the service. "Registration service" includes, but is not limited to, a person who, for compensation, processes registration documents, conducts lien sales, or processes vehicle dismantling documents. (b) "Registration service" does not include any of the following: (1) A person performing registration services on a vehicle acquired by that person for his or her own personal use or for use in the regular course of that person's business. (2) A person who solicits applications for or sells, for compensation, nonresident permits for the operation of vehicles within this state. (3) An employee of one or more dealers or dismantlers, or a combination thereof, who performs registration services for vehicles acquired by, consigned to, or sold by the employing dealers or dismantlers. (4) A motor club, as defined in Section 12142 of the Insurance Code. (5) A common carrier acting in the regular course of its business in transmitting applications. SEC. 4. Section 1655 of the Vehicle Code is amended to read: 1655. (a) The director and deputy director of the department, the Deputy Director, Investigations and Audits Division, the Chief, Field Investigations Branch, and the investigators of the department, including rank-and-file, supervisory, and management personnel, shall have the powers of peace officers for the purpose of enforcing those provisions of law committed to the administration of the department or enforcing the law on premises occupied by the department. (b) Any person designated in subdivision (a) may inspect any vehicle of a type required to be registered under this code, or any component part thereof, in any garage, repair shop, parking lot, used car lot, automobile dismantler's lot, steel mill, scrap metal processing facility, or other establishment engaged in the business of selling, repairing, or dismantling vehicles, or reducing vehicles or the integral parts thereof to their component materials for the purpose of investigating the title and registration of the vehicle, inspecting wrecked or dismantled vehicles, or locating stolen vehicles. SEC. 5. Section 1808.1 of the Vehicle Code is amended to read: 1808.1. (a) The prospective employer of a driver who drives any vehicle specified in subdivision (k) shall obtain a report showing the driver's current public record as recorded by the department. For purposes of this subdivision, a report is current if it was issued less than 30 days prior to the date the employer employs the driver. The report shall be reviewed, signed, and dated by the employer and maintained at the employer's place of business until receipt of the pull-notice system report pursuant to subdivisions (b) and (c). These reports shall be presented upon request to any authorized representative of the Department of the California Highway Patrol during regular business hours. (b) The employer of a driver who drives any vehicle specified in subdivision (k) shall participate in a pull-notice system, which is a process for the purpose of providing the employer with a report showing the driver's current public record as recorded by the department, and any subsequent convictions, failures to appear, accidents, driver's license suspensions, driver's license revocations, or any other actions taken against the driving privilege or certificate, added to the driver's record while the employer's notification request remains valid and uncanceled. As used in this section, participation in the pull-notice system means obtaining a requester code and enrolling all employed drivers who drive any vehicle specified in subdivision (k) under that requester code. (c) The employer of a driver of any vehicle specified in subdivision (k) shall, additionally, obtain a periodic report from the department at least every 12 months. The employer shall verify that each employee's driver's license has not been suspended or revoked, the employee's traffic violation point count, and whether the employee has been convicted of a violation of Section 23152 or 23153. The report shall be signed and dated by the employer and maintained at the employer's principal place of business. The reports shall be presented upon demand to any authorized representative of the Department of the California Highway Patrol during regular business hours. (d) Upon the termination of a driver's employment, the employer shall notify the department to discontinue the driver's enrollment in the pull-notice system. (e) For the purposes of the pull-notice system and periodic report process required by subdivisions (b) and (c), owners, other than owner-operators as defined in Section 34624, and employers who drive vehicles described in subdivision (k) shall be enrolled as if they were employees. Family members and volunteer drivers who drive vehicles described in subdivision (k) shall also be enrolled as if they were employees. (f) An employer who, after receiving any driving record pursuant to this section, employs or continues to employ as a driver any person against whom a disqualifying action has been taken regarding his or her driving privilege or required driver's certificate, is guilty of a public offense, and upon conviction thereof, shall be punished by confinement in a county jail for not more than six months, by a fine of not more than one thousand dollars ($1,000), or by both that confinement and fine. (g) As part of its inspection of bus maintenance facilities and terminals required at least once every 13 months pursuant to subdivision (c) of Section 34501, the Department of the California Highway Patrol shall determine whether each transit operator, as defined in Section 99210 of the Public Utilities Code, is then in compliance with this section and Section 12804.6, and shall certify each operator found to be in compliance. No funds shall be allocated under Chapter 4 (commencing with Section 99200) of Part 11 of Division 10 of the Public Utilities Code to a transit operator which the Department of the California Highway Patrol has not certified under this section. (h) A request to participate in the pull-notice system established by this section shall be accompanied by a fee determined by the department to be sufficient to defray the entire actual cost to the department for the notification service. For the receipt of subsequent reports, the employer shall also be charged a fee established by the department pursuant to Section 1811. Any employer who qualifies under Section 1812 shall be exempt from any fee required under this section. Failure to pay the fee shall result in automatic cancellation of the employer's participation in the notification services. (i) The department, as soon as feasible, may establish an automatic procedure to provide the periodic reports to employers by mail or via an electronic delivery method, as required by subdivision (c), on a regular basis without the need for individual requests. (j) (1) The employer of a driver who is employed as a casual driver is not required to enter that driver's name in the pull-notice system, as otherwise required by subdivision (a). However, the employer of a casual driver shall be in possession of a report of the driver's current public record as recorded by the department, prior to allowing a casual driver to drive any vehicle specified in subdivision (k). A report is current if it was issued less than six months prior to the date the employer employs the driver. (2) For the purposes of this subdivision, a driver is employed as a casual driver when the employer has employed the driver less than 30 days during the preceding six months. "Casual driver" does not include any driver who operates a vehicle that requires a passenger transportation endorsement. (k) This section applies to any vehicle for the operation of which the driver is required to have a class 1, class 2, class A, or class B driver's license, a class C license with a hazardous materials endorsement, or a certificate issued pursuant to Section 2512, 12517, 12519, 12520, 12523, or 12523.5, or any passenger vehicle having a seating capacity of not more than 10 persons, including the driver, operated for compensation by a charter-party carrier of passengers or passenger stage corporation pursuant to a certificate of public convenience and necessity or a permit issued by the Public Utilities Commission. (l) This section shall not be construed to change the definition of "employer," "employee," or "independent contractor" for any purpose. (m) A motor carrier who contracts with any person to drive any vehicle described in subdivision (k) which is owned by or leased to that motor carrier, shall be subject to subdivisions (a), (b), (c), (d), (f), (j), (k), and (l) and the employer obligations therein. SEC. 5.5. Section 2408.5 is added to the Vehicle Code, to read: 2408.5. (a) The department shall compile traffic collision data on vehicles that meet the criteria set forth in subparagraph (H) of paragraph (3) of subdivision (b) of Section 12804.9 and report its findings to the Legislature on or before April 1, 2003. (b) This section shall remain in effect only until January 1, 2004, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2004, deletes or extends that date. SEC. 6. Section 4000.37 of the Vehicle Code is amended to read: 4000.37. (a) Upon application for renewal of registration of a motor vehicle, the department shall require that the applicant submit either a form approved by the department, but issued by the insurer, as specified in paragraph (1) or (2), or any of the items specified in paragraph (3), as evidence that the applicant is in compliance with the financial responsibility laws of this state. (1) For vehicles covered by private passenger automobile liability policies and having coverage as described in subdivisions (a) and (b) of Section 660 of the Insurance Code, or policies and coverages for private passenger automobile policies as described in subdivisions (a) and (b) of that section and issued by an automobile assigned risk plan, the form shall include all of the following: (A) The primary name of the insured covered by the policy or the vehicle owner, or both. (B) The year, make, and vehicle identification number of the vehicle. (C) The name, the National Association of Insurance Commissioners (NAIC) number, and the address of the insurance company or surety company providing a policy or bond for the vehicle. (D) The policy or bond number, and the effective date and expiration date of that policy or bond. (E) A statement from the insurance company or surety company that the policy or bond meets the requirements of Section 16056 or 16500.5. For the purposes of this section, policies described in Sections 11629.71 and 11629.91 of the Insurance Code are deemed to meet the requirements of Section 16056. (2) For vehicles covered by commercial or fleet policies, and not private passenger automobile liability policies, as described in paragraph (1), the form shall include all of the following: (A) The name and address of the vehicle owner or fleet operator. (B) The name, the NAIC number, and the address of the insurance company or surety company providing a policy or bond for the vehicle. (C) The policy or bond number, and the effective date and expiration date of the policy or bond. (D) A statement from the insurance company or surety company that the policy or bond meets the requirements of Section 16056 or 16500.5 and is a commercial or fleet policy. For vehicles registered pursuant to Article 9.5 (commencing with Section 5300) or Article 4 (commencing with Section 8050) of Chapter 4, one form may be submitted per fleet as specified by the department. (3) In lieu of evidence of insurance as described in paragraphs (1) and (2), one of the following documents as evidence of coverage under an alternative form of financial responsibility may be provided by the applicant: (A) An evidence form, as specified by the department, that indicates either a certificate of self-insurance or an assignment of deposit letter has been issued by the department pursuant to Section 16053 or 16054.2. (B) An insurance covering note or binder pursuant to Section 382 or 382.5 of the Insurance Code. (C) An evidence form that indicates coverage is provided by a charitable risk pool operating under Section 5005.1 of the Corporations Code, if the registered owner of the vehicle is a nonprofit organization that is exempt from taxation under paragraph (3) of subsection (c) of Section 501 of the United States Internal Revenue Code. The evidence form shall include: (1) The name and address of the vehicle owner or fleet operator. (2) The name and address of the charitable risk pool providing the policy for the vehicle. (3) The policy number, and the effective date and expiration date of the policy. (4) A statement from the charitable risk pool that the policy meets the requirements of subdivision (b) of Section 16054.2. (b) This section does not apply to any of the following: (1) A vehicle for which a certification has been filed pursuant to Section 4604, until the vehicle is registered for operation upon the highway. (2) A vehicle that is owned or leased by, or under the direction of, the United States or any public entity that is included in Section 811.2 of the Government Code. (3) A vehicle registration renewal application where there is a change of registered owner. (4) A vehicle for which evidence of liability insurance information has been electronically filed with the department. SEC. 6.5. Section 4000.37 of the Vehicle Code is amended to read: 4000.37. (a) Upon application for renewal of registration of a motor vehicle, the department shall require that the applicant submit either a form approved by the department, but issued by the insurer, as specified in paragraph (1), (2), or (3), or any of the items specified in paragraph (4), as evidence that the applicant is in compliance with the financial responsibility laws of this state. (1) For vehicles covered by private passenger automobile liability policies and having coverage as described in subdivisions (a) and (b) of Section 660 of the Insurance Code, or policies and coverages for private passenger automobile policies as described in subdivisions (a) and (b) of that section and issued by an automobile assigned risk plan, the form shall include all of the following: (A) The primary name of the insured covered by the policy or the vehicle owner, or both. (B) The year, make, and vehicle identification number of the vehicle. (C) The name, the National Association of Insurance Commissioners (NAIC) number, and the address of the insurance company or surety company providing a policy or bond for the vehicle. (D) The policy or bond number, and the effective date and expiration date of that policy or bond. (E) A statement from the insurance company or surety company that the policy or bond meets the requirements of Section 16056 or 16500.5. For the purposes of this section, policies described in Sections 11629.71 and 11629.91 of the Insurance Code are deemed to meet the requirements of Section 16056. (2) For vehicles covered by commercial or fleet policies, and not private passenger automobile liability policies, as described in paragraph (1), the form shall include all of the following: (A) The name and address of the vehicle owner or fleet operator. (B) The name, the NAIC number, and the address of the insurance company or surety company providing a policy or bond for the vehicle. (C) The policy or bond number, and the effective date and expiration date of the policy or bond. (D) A statement from the insurance company or surety company that the policy or bond meets the requirements of Section 16056 or 16500.5 and is a commercial or fleet policy. For vehicles registered pursuant to Article 9.5 (commencing with Section 5300) or Article 4 (commencing with Section 8050) of Chapter 4, one form may be submitted per fleet as specified by the department. (3) (A) The director may authorize an insurer to issue a form that does not conform to paragraph (1) or (2) if the director does all of the following: (i) Determines that the entity issuing the alternate form is or will begin reporting the insurance information required under paragraph (1) or (2) to the department through electronic transmission. (ii) Determines that use of the alternate form furthers the interests of the state by enhancing the enforcement of the state's financial responsibility laws. (iii) Approves the contents of the alternate form as providing an adequate means for persons to prove compliance with the financial responsibility laws. (B) The director may authorize the use of the alternate form in lieu of the forms otherwise required under paragraph (1) or (2) for a period of four years or less and may renew that authority for additional periods of four years or less. (4) In lieu of evidence of insurance as described in paragraphs (1), (2), and (3) one of the following documents as evidence of coverage under an alternative form of financial responsibility may be provided by the applicant: (A) An evidence form, as specified by the department, that indicates either a certificate of self-insurance or an assignment of deposit letter has been issued by the department pursuant to Sections 16053 or 16054.2. (B) An insurance covering note or binder pursuant to Section 382 or 382.5 of the Insurance Code. (C) An evidence form that indicates coverage is provided by a charitable risk pool operating under Section 5005.1 of the Corporations Code, if the registered owner of the vehicle is a nonprofit organization that is exempt from taxation under paragraph (3) of subsection (c) of Section 501 of the United States Internal Revenue Code. The evidence form shall include: (1) The name and address of the vehicle owner or fleet operator. (2) The name and address of the charitable risk pool providing the policy for the vehicle. (3) The policy number, and the effective date and expiration date of the policy. (4) A statement from the charitable risk pool that the policy meets the requirements of subdivision (b) of Section 16054.2. (b) This section does not apply to any of the following: (1) A vehicle for which a certification has been filed pursuant to Section 4604, until the vehicle is registered for operation upon the highway. (2) A vehicle that is owned or leased by, or under the direction of, the United States or any public entity that is included in Section 811.2 of the Government Code. (3) A vehicle registration renewal application where there is a change of registered owner. (4) A vehicle for which evidence of liability insurance information has been electronically filed with the department. SEC. 7. Section 4152.5 of the Vehicle Code is amended to read: 4152.5. Except as provided for in subdivision (c) of Section 9553, when California registration is required of a vehicle last registered in a foreign jurisdiction, an application for registration shall be made to the department within 20 days following the date registration became due. The application shall be deemed an original application. SEC. 8. Section 4451 of the Vehicle Code is amended to read: 4451. The certificate of ownership shall contain all of the following: (a) Not less than the information required upon the face of the registration card. (b) Provision for notice to the department of a transfer of the title or interest of the owner or legal owner. (c) Provision for application for transfer of registration by the transferee. (d) Provision for an odometer disclosure statement pursuant to subsection (a) of Section 32705 of Title 49 of the United States Code. SEC. 9. Section 4751 of the Vehicle Code is amended to read: 4751. The department may refuse registration or the renewal or transfer of registration of a vehicle in any of the following events: (a) If the department is not satisfied that the applicant is entitled thereto under this code. (b) If the applicant has failed to furnish the department with information required in the application or reasonable additional information required by the department. (c) If the department determines that the applicant has made or permitted unlawful use of any registration certificate, certificate of ownership, or license plates. (d) If the vehicle is mechanically unfit or unsafe to be operated or moved on the highways. (e) If the department determines that a manufacturer or dealer has failed during the current or previous year to comply with the provisions of this code relating to the giving of notice to the department of the transfer of a vehicle during the current or previous year. (f) If the department determines that a lien exists, pursuant to Section 9800, against one or more other vehicles in which the applicant has an ownership interest. (g) If the applicant has failed to furnish the department with an odometer disclosure statement pursuant to subsection (a) of Section 32705 of Title 49 of the United States Code. SEC. 10. Section 5600 of the Vehicle Code is amended to read: 5600. (a) No transfer of the title or any interest in or to a vehicle registered under this code shall pass, and any attempted transfer shall not be effective, until the parties thereto have fulfilled either of the following requirements: (1) The transferor has made proper endorsement and delivery of the certificate of ownership to the transferee as provided in this code and the transferee has delivered to the department or has placed the certificate in the United States mail addressed to the department when and as required under this code with the proper transfer fee, together with the amount required to be paid under Part 1 (commencing with Section 6001), Division 2 of the Revenue and Taxation Code with respect to the use by the transferee of the vehicle, and thereby makes application for a transfer of registration except as otherwise provided in Sections 5905, 5906, 5907, and 5908. (2) The transferor has delivered to the department or has placed in the United States mail addressed to the department the appropriate documents for the registration or transfer of registration of the vehicle pursuant to the sale or transfer except as provided in Section 5602. (b) Whenever a person transfers ownership of a vehicle and is required to disclose the mileage of the vehicle, the department may prescribe a secured form to be used for purposes of the odometer mileage disclosure requirements pursuant to subsection (a) of Section 32705 of Title 49 of the United States Code. SEC. 11. Section 5900 of the Vehicle Code is amended to read: 5900. (a) Whenever the owner of a vehicle registered under this code sells or transfers his or her title or interest in, and delivers the possession of, the vehicle to another, the owner shall, within five calendar days, notify the department of the sale or transfer giving the date thereof, the name and address of the owner and of the transferee, and the description of the vehicle that is required in the appropriate form provided for that purpose by the department. (b) Except as otherwise provided in subdivision (c), pursuant to subsection (a) of Section 32705 of Title 49 of the United States Code, the owner shall also notify the department of the actual mileage of the vehicle as indicated by the vehicle's odometer at the time of sale or transfer. However, if the vehicle owner has knowledge that the mileage displayed on the odometer is incorrect, the owner shall indicate on the appropriate form the true mileage, if known, of the vehicle at the time of sale or transfer. Providing false or inaccurate mileage is not a violation of this subdivision unless it is done with the intent to defraud. (c) If the registered owner is not in possession of the vehicle that is sold or transferred, the person in physical possession of that vehicle shall give the notice required by subdivisions (a) and (b). If the registered owner sells or transfers the vehicle through a dealer conducting a wholesale motor vehicle auction, the owner shall furnish the information required by subdivisions (a) and (b) to that dealer. SEC. 12. Section 11730 of the Vehicle Code is amended to read: 11730. The consignment agreement required by Section 11729 shall contain all the following terms, phrases, conditions, and disclosures: (a) The date the agreement is executed. (b) All of the following statements: (1) "I (We), the undersigned consigner(s), hereby consign and deliver possession of my(our) vehicle, which is a (Year) ____ (Make) ____ (ID#) ____ (License) ____ (State) ____ (Mileage) ____, to (Consignee) _____ (Dealer #) ____ for the sole purpose of selling the vehicle and paying, to the consignor or his or her designee from the proceeds of the sale of the vehicle, the amount agreed upon under terms of this agreement. This agreement is effective and valid only for a period of ____ days from this date." (2) "At the termination of this agreement, the consignee shall return the vehicle to the consignor, or, at the option of both the consignor and consignee, enter into a new agreement." (3) "If the vehicle is sold by the consignee during the term of this agreement, the money due the consignor shall be disbursed within 20 days after the date of sale in accordance with the terms of this agreement. As used in this agreement, a "sale" occurs when the consignee either (A) receives the purchase price or its equivalent or executes a conditional sales contract for the vehicle, or (B) when the purchaser takes delivery of the vehicle, whichever occurs first." (4) "The following information shall be completed prior to the signing of this agreement: Current market value: $____ Source: ____. Outstanding liens: $____ Lienholder: ____. (Any difference between the outstanding amount shown and the actual payoff to the lienholder will be credited to the consignor.) Repairs to be made: $____ Work Order #____. Moneys to the consignor: ____ percent of sale price, flat fee of $____ or the following specific formula: ____." (5) "Within 20 days after sale, the consignee shall make an accounting to the consignor of all of the following: date of sale, repairs authorized by consignor (supported by work records), exact amount of any liens payable to lienholders, evidence of payment of any liens, and the total sales price." (6) "The consigned vehicle is delivered to the consignee in trust for the exact terms set forth in this agreement. The consignee agrees to receive this vehicle in trust and not to permit its use for any other purpose other than contained in this agreement without the express written consent of the consignor." (7) "Upon payment of the moneys due the consignor, the consignor agrees to furnish the consignee those documents necessary to transfer the ownership of the vehicle to the purchaser. Signatures: ________________________________________________________________ Consignor Date ________________________________________________________________ Address ________________________________________________________________ Consignee Date ________________________________________________________________ Address " (8) "NOTICE TO CONSIGNOR: Failure of the consignee to comply with the terms of this agreement may be a violation of statute which could result in criminal or administrative sanctions, or both. If you feel the consignee has not complied with the terms of this agreement, please contact an investigator of the Department of Motor Vehicles." SEC. 13. Section 11738 of the Vehicle Code is amended to read: 11738. The brokering agreement required by Section 11736 shall be printed in no smaller than 10-point type and shall contain not less than the following terms, conditions, requirements, and disclosures: (a) The name, address, license number, and telephone number of the autobroker. (b) A complete description, including line-make, model, year model, and color, of the vehicle and the desired options. (c) The following statement: "The following information shall be completed prior to the signing of this brokering agreement: Dollar Purchase Price of Vehicle: ______. Date this agreement will expire if a purchase agreement from a selling dealer is not presented for your signature: __________. Fee that you will be obligated to pay us, if any: __________." (d) One of the following notices, as appropriate, printed in at least 10-point bold type and placed immediately below the statement required by subdivision (c): (1) "We do not receive a fee from the selling dealer." (2) "We receive a fee from the selling dealer." (e) The following notice on the face of the brokering agreement with a heading in at least 14-point bold type and the text in at least 10-point bold type, circumscribed by a line, that reads as follows: ______________________________________________________________________ ______ ' ' ' NOTICE ' ' ' ' This is an agreement to provide services; it is not an ' ' agreement for the purchase of a vehicle. California law gives you ' ' the following rights and protection: ' ' Once you have signed this agreement, you have the right to cancel it ' ' and receive a full refund of any money paid, including any brokerage ' ' fee you may have paid, under any of the following circumstances: ' ' (1) The final price of the vehicle exceeds the purchase price ' ' listed above. ' ' (2) The vehicle is not as described above upon delivery. ' ' (3) This agreement expires prior to your being presented ' ' with a selling dealer's purchase agreement. ' ' If you have paid a purchase deposit, you have the right to receive a ' ' refund of that deposit at any time prior to your signing a vehicle ' ' purchase agreement with a selling dealer. Purchase deposits are ' ' limited by law to no more than 2.5 percent of the purchase price of a ' ' vehicle and must be deposited by an autobroker or auto buying service ' ' in a federally insured trust account. If you are unable to resolve a ' ' dispute with your autobroker or auto buying service, please contact ' ' an investigator of the Department of Motor Vehicles ' ' ' ______________________________________________________________________ ____ (f) The date the agreement is executed. (g) The signature of the autobroker and consumer. SEC. 14. Section 12509 of the Vehicle Code is amended to read: 12509. (a) Except as otherwise provided in subdivision (f) of Section 12514, the department, for good cause, may issue an instruction permit to any physically and mentally qualified person who meets one of the following requirements and who applies to the department for an instruction permit: (1) Is age 15 years and 6 months or over and has successfully completed approved courses in automobile driver education and driver training as provided in paragraph (3) of subdivision (a) of Section 12814.6. (2) Is age 15 years and 6 months or over and has successfully completed an approved course in automobile driver education and is taking driver training as provided in paragraph (3) of subdivision (a) of Section 12814.6. (3) Is age 15 years or over and is enrolled in an approved driver education course and is at the same time or during the same semester enrolled in an approved driver training course. (4) Is over the age of 17 years and 6 months. (b) An instruction permit issued pursuant to subdivision (a) shall entitle the applicant to operate a vehicle, subject to the limitations imposed by this section and any other provisions of law, upon the highways for a period not exceeding 12 months. (c) Any person, while having in his or her immediate possession a valid permit issued pursuant to subdivision (a), may operate a motor vehicle, other than a motorcycle or a motorized bicycle, when either taking the driver training instruction of a kind referred to in paragraph (3) of subdivision (a) of Section 12814.6, or when practicing that instruction, and when accompanied by, and under the immediate supervision of, a California licensed driver with a valid license of the appropriate class, 25 years of age or over whose driving privilege is not on probation. The age requirement of this subdivision does not apply if the licensed driver is the parent, spouse, or guardian of the permitholder or is a licensed or certified driving instructor. Except as provided in subdivision (d), an accompanying licensed driver at all times shall occupy a position within the driver's compartment that would enable the accompanying licensed driver to assist the person in controlling the vehicle as may be necessary to avoid a collision and to provide immediate guidance in the safe operation of the vehicle. (d) Any person while having in his or her immediate possession a valid permit issued pursuant to subdivision (a), who is age 15 years and 6 months or over and who has successfully completed approved courses in automobile education and driver training as provided in paragraph (3) of subdivision (a) of Section 12814.6, and any person while having in his or her immediate possession a valid permit issued pursuant to subdivision (a) who is age 17 years and 6 months or over, may, in addition to operating a motor vehicle pursuant to subdivision (c), also operate a motorcycle or a motorized bicycle, except that the person shall not operate a motorcycle or a motorized bicycle during hours of darkness, shall stay off any freeways that have full control of access and no crossings at grade and shall not carry any passenger except an instructor licensed under Chapter 1 (commencing with Section 11100) of Division 5 of this code or a qualified instructor as defined in Section 18252.2 of the Education Code. (e) No student shall take driver training instruction unless he or she is at the same time taking driver education instruction or has successfully completed driver education. (f) The department may also issue an instruction permit to a person who has been issued a valid driver's license to authorize the person to obtain driver training instruction and to practice that instruction in order to obtain another class of driver's license or an endorsement. (g) The department may further restrict permits issued under subdivision (a) as it may determine to be appropriate to assure the safe operation of a motor vehicle by the permittee. SEC. 15. Section 12514 of the Vehicle Code is amended to read: 12514. (a) Junior permits issued pursuant to Section 12513 shall not be valid for a period exceeding that established on the original request as the approximate date the minor's operation of a vehicle will no longer be necessary. In any event, no permit shall be valid on or after the 18th birthday of the applicant. (b) The department may revoke any permit when to do so is necessary for the welfare of the minor or in the interests of safety. (c) If conditions or location of residence, which required the minor's operation of a vehicle, change prior to expiration of the permit, the department may cancel the permit. (d) Upon a determination that the permittee has operated a vehicle in violation of restrictions, the department shall revoke the permit. (e) A junior permit is a form of driver's license that shall include all information required by subdivision (a) of Section 12811 except for an engraved picture or photograph of the permittee, and is subject to all provisions of this code applying to driver's licenses, except as otherwise provided in this section and Section 12513. (f) An instruction permit valid for a period of not more than six months may be issued after eligibility has been established under Section 12513. (g) The department shall cancel any permit six months from the date of issuance unless the permittee has complied with one of the conditions prescribed by paragraph (3) of subdivision (a) of Section 12814.6. SEC. 16. Section 12804.9 of the Vehicle Code, as amended by Section 3 of Chapter 722 of the Statutes of 1999, is amended to read: 12804.9. (a) (1) The examination shall include all of the following: (A) A test of the applicant's knowledge and understanding of the provisions of this code governing the operation of vehicles upon the highways. (B) A test of the applicant's ability to read and understand simple English used in highway traffic and directional signs. (C) A test of the applicant's understanding of traffic signs and signals, including the bikeway signs, markers, and traffic control devices established by the Department of Transportation. (D) An actual demonstration of the applicant's ability to exercise ordinary and reasonable control in operating a motor vehicle by driving it under the supervision of an examining officer. The applicant shall submit to an examination appropriate to the type of motor vehicle or combination of vehicles he or she desires a license to drive, except that the department may waive the driving test part of the examination for any applicant who submits a license issued by another state, territory, or possession of the United States, the District of Columbia, or the Commonwealth of Puerto Rico if the department verifies through any acknowledged national driver record data source that there are no stops, holds, or other impediments to its issuance. The examining officer may request to see evidence of financial responsibility for the vehicle prior to supervising the demonstration of the applicant's ability to operate the vehicle. The examining officer may refuse to examine an applicant who is unable to provide proof of financial responsibility for the vehicle, unless proof of financial responsibility is not required by this code. (E) A test of the hearing and eyesight of the applicant, and of other matters that may be necessary to determine the applicant's mental and physical fitness to operate a motor vehicle upon the highways, and whether any grounds exist for refusal of a license under this code. (2) The examination for a class A or class B license under subdivision (b) shall also include a report of a medical examination of the applicant given not more than two years prior to the date of the application by a health care professional. As used in this subdivision, "health care professional" means a person who is licensed, certified, or registered in accordance with applicable state laws and regulations to practice medicine and perform physical examinations in the United States of America. Health care professionals are doctors of medicine, doctors of osteopathy, physician assistants, and advanced practice nurses, or doctors of chiropractic who are clinically competent to perform the medical examination presently required of motor carrier drivers by the Federal Highway Administration. The report shall be on a form approved by the department, the Federal Highway Administration, or the Federal Aviation Administration. In establishing the requirements, consideration may be given to the standards presently required of motor carrier drivers by the Federal Highway Administration. (3) Any physical defect of the applicant, which, in the opinion of the department, is compensated for to ensure safe driving ability, shall not prevent the issuance of a license to the applicant. (b) Beginning on January 1, 1989, in accordance with the following classifications, any applicant for a driver's license shall be required to submit to an examination appropriate to the type of motor vehicle or combination of vehicles the applicant desires a license to drive: (1) Class A includes the following: (A) Any combination of vehicles, if any vehicle being towed has a gross vehicle weight rating of more than 10,000 pounds. (B) Any vehicle towing more than one vehicle. (C) Any trailer bus. (D) The operation of all vehicles under class B and class C. (2) Class B includes the following: (A) Any single vehicle with a gross vehicle weight rating of more than 26,000 pounds. (B) Any single vehicle with three or more axles, except any three-axle vehicle weighing less than 6,000 pounds. (C) Any bus except a trailer bus. (D) Any farm labor vehicle. (E) Any single vehicle with three or more axles or a gross vehicle weight rating of more than 26,000 pounds towing another vehicle with a gross vehicle weight rating of 10,000 pounds or less. (F) The operation of all vehicles covered under class C. (3) Class C includes the following: (A) Any two-axle vehicle with a gross vehicle weight rating of 26,000 pounds or less, including when the vehicle is towing a trailer or semitrailer with a gross vehicle weight rating of 10,000 pounds or less. (B) Notwithstanding subparagraph (A), any two-axle vehicle weighing 4,000 pounds or more unladen when towing a trailer coach not exceeding 9,000 pounds gross. (C) Any housecar. (D) Any three-axle vehicle weighing 6,000 pounds or less gross. (E) Any housecar or vehicle towing another vehicle with a gross vehicle weight rating of 10,000 pounds or less, including when a tow dolly is used. No vehicle shall tow another vehicle in violation of Section 21715. (F) (i) Any two-axle vehicle weighing 4,000 pounds or more unladen when towing either a trailer coach or a fifth-wheel travel trailer not exceeding 10,000 pounds gross vehicle weight rating, when the towing of the trailer is not for compensation. (ii) Any two-axle vehicle weighing 4,000 pounds or more unladen when towing a fifth-wheel travel trailer exceeding 10,000 pounds, but not exceeding 15,000 pounds, gross vehicle weight rating, when the towing of the trailer is not for compensation, and if the person has passed a specialized written examination provided by the department relating to the knowledge of this code and other safety aspects governing the towing of recreational vehicles upon the highway. The authority to operate combinations of vehicles under this subparagraph shall be granted by endorsement on a class C license upon completion of that written examination. (G) Any vehicle or combination of vehicles with a gross combination weight rating or a gross vehicle weight rating, as those terms are defined in subdivisions (g) and (h), respectively, of Section 15210, of 26,000 pounds or less, if all of the following conditions are met: (i) Is operated by a farmer, an employee of a farmer, or an instructor credentialed in agriculture as part of an instructional program in agriculture at the high school, community college, or university level. (ii) Is used exclusively in the conduct of agricultural operations. (iii) Is not used in the capacity of a for-hire carrier or for compensation. (H) Any motor vehicle over 4,000 pounds unladen when towing a boat trailer with a gross combination weight rating, as defined in subdivision (g) of Section 15210, of 26,000 pounds or less under the following conditions: (i) The combination of vehicles is used to transport a boat for recreational purposes or to and from a place of repair. (ii) The combination of vehicles is not used in the operations of a common or contract carrier or in the course of any business endeavor. (iii) The towing of the trailer is not for compensation. (iv) The combination of vehicles and its load are not of a size that requires a permit pursuant to Section 35780. (I) Class C does not include any two-wheel motorcycle or any two-wheel motor-driven cycle. (4) Class M1. Any two-wheel motorcycle or motor-driven cycle. Authority to operate vehicles included in a class M1 license may be granted by endorsement on a class A, B, or C license upon completion of an appropriate examination. (5) Class M2. Any motorized bicycle or moped, or any bicycle with an attached motor, except a motorized bicycle described in subdivision (b) of Section 406 and a motorized scooter described in Section 407.5. Authority to operate vehicles included in class M2 may be granted by endorsement on a class A, B, or C license upon completion of an appropriate examination. Persons holding a class M1 license or endorsement may operate vehicles included in class M2 without further examination. (c) No driver's license or driver certificate shall be valid for operating any commercial motor vehicle, as defined in subdivision (b) of Section 15210, any other motor vehicle defined in paragraph (1) or (2) of subdivision (b), or any other vehicle requiring a driver to hold any driver certificate or any driver's license endorsement under Section 15275, unless a medical certificate approved by the department, the Federal Highway Administration, or the Federal Aviation Administration, that has been issued within two years of the date of the operation of that vehicle, is within the licensee's immediate possession, and a copy of the medical examination report from which the certificate was issued is on file with the department. Otherwise, the license shall be valid only for operating class C vehicles that are not commercial vehicles, as defined in subdivision (b) of Section 15210, and for operating class M1 or M2 vehicles, if so endorsed, that are not commercial vehicles, as defined in subdivision (b) of Section 15210. (d) A license or driver certificate issued prior to the enactment of Chapter 7 (commencing with Section 15200) shall be valid to operate the class or type of vehicles specified under the law in existence prior to that enactment until the license or certificate expires or is otherwise suspended, revoked, or canceled. (e) The department may accept a certificate of driving skill that is issued by an employer, authorized by the department to issue a certificate under Section 15250, of the applicant, in lieu of a driving test, on class A or B applications, if the applicant has first qualified for a class C license and has met the other examination requirements for the license for which he or she is applying. The certificate may be submitted as evidence of the applicant's skill in the operation of the types of equipment covered by the license for which he or she is applying. (f) The department may accept a certificate of competence in lieu of a driving test on class M1 or M2 applications, when the certificate is issued by a law enforcement agency for its officers who operate class M1 or M2 vehicles in their duties, if the applicant has met the other examination requirements for the license for which he or she is applying. (g) The department may accept a certificate of satisfactory completion of a novice motorcyclist training program approved by the commissioner pursuant to Section 2932 in lieu of a driving test on class M1 or M2 applications, if the applicant has met the other examination requirements for the license for which he or she is applying. The department shall review and approve the written and driving test used by a program to determine whether the program may issue a certificate of completion. (h) Notwithstanding subdivision (b), any person holding a valid California driver's license of any class may operate a short-term rental motorized bicycle without taking any special examination for the operation of a motorized bicycle, and without having a class M2 endorsement on that license. As used in this paragraph, "short-term" means 48 hours or less. (i) No person under the age of 21 years shall be issued a class M1 or M2 license or endorsement unless he or she provides evidence satisfactory to the department of completion of a motorcycle safety training program that is operated pursuant to Article 2 (commencing with Section 2930) of Chapter 5 of Division 2. (j) Drivers of vanpool vehicles may operate with class C licenses but shall possess evidence of a medical examination required for a class B license when operating vanpool vehicles. In order to be eligible to drive the vanpool vehicle, the driver shall keep in the vanpool vehicle a statement, signed under penalty of perjury, that he or she has not been convicted of reckless driving, drunk driving, or a hit-and-run offense in the last five years. (k) A class M license issued between January 1, 1989, and December 31, 1992, shall permit the holder to operate any motorcycle, motor-driven cycle, or motorized bicycle until the expiration of the license. (l) This section shall remain in effect only until January 1, 2004, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2004, deletes or extends that date. SEC. 16.5. Section 12804.9 is added to the Vehicle Code, to read: 12804.9. (a) (1) The examination shall include all of the following: (A) A test of the applicant's knowledge and understanding of the provisions of this code governing the operation of vehicles upon the highways. (B) A test of the applicant's ability to read and understand simple English used in highway traffic and directional signs. (C) A test of the applicant's understanding of traffic signs and signals, including the bikeway signs, markers, and traffic control devices established by the Department of Transportation. (D) An actual demonstration of the applicant's ability to exercise ordinary and reasonable control in operating a motor vehicle by driving it under the supervision of an examining officer. The applicant shall submit to an examination appropriate to the type of motor vehicle or combination of vehicles he or she desires a license to drive, except that the department may waive the driving test part of the examination for any applicant who submits a license issued by another state, territory, or possession of the United States, the District of Columbia, or the Commonwealth of Puerto Rico if the department verifies through any acknowledged national driver record data source that there are no stops, holds, or other impediments to its issuance. The examining officer may request to see evidence of financial responsibility for the vehicle prior to supervising the demonstration of the applicant's ability to operate the vehicle. The examining officer may refuse to examine an applicant who is unable to provide proof of financial responsibility for the vehicle, unless proof of financial responsibility is not required by this code. (E) A test of the hearing and eyesight of the applicant, and of other matters that may be necessary to determine the applicant's mental and physical fitness to operate a motor vehicle upon the highways, and whether any grounds exist for refusal of a license under this code. (2) The examination for a class A or class B license under subdivision (b) shall also include a report of a medical examination of the applicant given not more than two years prior to the date of the application by a health care professional. As used in this subdivision, "health care professional" means a person who is licensed, certified, or registered in accordance with applicable state laws and regulations to practice medicine and perform physical examinations in the United States of America. Health care professionals are doctors of medicine, doctors of osteopathy, physician assistants, and advanced practice nurses, or doctors of chiropractic who are clinically competent to perform the medical examination presently required of motor carrier drivers by the Federal Highway Administration. The report shall be on a form approved by the department, the Federal Highway Administration, or the Federal Aviation Administration. In establishing the requirements, consideration may be given to the standards presently required of motor carrier drivers by the Federal Highway Administration. (3) Any physical defect of the applicant, which, in the opinion of the department, is compensated for to ensure safe driving ability, shall not prevent the issuance of a license to the applicant. (b) In accordance with the following classifications, any applicant for a driver's license shall be required to submit to an examination appropriate to the type of motor vehicle or combination of vehicles the applicant desires a license to drive: (1) Class A includes the following: (A) Any combination of vehicles, if any vehicle being towed has a gross vehicle weight rating of more than 10,000 pounds. (B) Any vehicle towing more than one vehicle. (C) Any trailer bus. (D) The operation of all vehicles under class B and class C. (2) Class B includes the following: (A) Any single vehicle with a gross vehicle weight rating of more than 26,000 pounds. (B) Any single vehicle with three or more axles, except any three-axle vehicle weighing less than 6,000 pounds. (C) Any bus except a trailer bus. (D) Any farm labor vehicle. (E) Any single vehicle with three or more axles or a gross vehicle weight rating of more than 26,000 pounds towing another vehicle with a gross vehicle weight rating of 10,000 pounds or less. (F) The operation of all vehicles covered under class C. (3) Class C includes the following: (A) Any two-axle vehicle with a gross vehicle weight rating of 26,000 pounds or less, including when the vehicle is towing a trailer or semitrailer with a gross vehicle weight rating of 10,000 pounds or less. (B) Notwithstanding subparagraph (A), any two-axle vehicle weighing 4,000 pounds or more unladen when towing a trailer coach not exceeding 9,000 pounds gross. (C) Any house car. (D) Any three-axle vehicle weighing 6,000 pounds or less gross. (E) Any house car or vehicle towing another vehicle with a gross vehicle weight rating of 10,000 pounds or less, including when a tow dolly is used. No vehicle shall tow another vehicle in violation of Section 21715. (F) (i) Any two-axle vehicle weighing 4,000 pounds or more unladen when towing either a trailer coach or a fifth-wheel travel trailer not exceeding 10,000 pounds gross vehicle weight rating, when the towing of the trailer is not for compensation. (ii) Any two-axle vehicle weighing 4,000 pounds or more unladen when towing a fifth-wheel travel trailer exceeding 10,000 pounds, but not exceeding 15,000 pounds, gross vehicle weight rating, when the towing of the trailer is not for compensation, and if the person has passed a specialized written examination provided by the department relating to the knowledge of this code and other safety aspects governing the towing of recreational vehicles upon the highway. The authority to operate combinations of vehicles under this subparagraph shall be granted by endorsement on a class C license upon completion of that written examination. (G) Any vehicle or combination of vehicles with a gross combination weight rating or a gross vehicle weight rating, as those terms are defined in subdivisions (g) and (h), respectively, of Section 15210, of 26,000 pounds or less, if all of the following conditions are met: (i) Is operated by a farmer, an employee of a farmer, or an instructor credentialed in agriculture as part of an instructional program in agriculture at the high school, community college, or university level. (ii) Is used exclusively in the conduct of agricultural operations. (iii) Is not used in the capacity of a for-hire carrier or for compensation. (H) Class C does not include any two-wheel motorcycle or any two-wheel motor-driven cycle. (4) Class M1. Any two-wheel motorcycle or motor-driven cycle. Authority to operate vehicles included in a class M1 license may be granted by endorsement on a class A, B, or C license upon completion of an appropriate examination. (5) Class M2. Any motorized bicycle or moped, or any bicycle with an attached motor, except a motorized bicycle described in subdivision (b) of Section 406 and a motorized scooter described in Section 407.5. Authority to operate vehicles included in class M2 may be granted by endorsement on a class A, B, or C license upon completion of an appropriate examination. Persons holding a class M1 license or endorsement may operate vehicles included in class M2 without further examination. (c) No driver's license or driver certificate shall be valid for operating any commercial motor vehicle, as defined in subdivision (b) of Section 15210, any other motor vehicle defined in paragraph (1) or (2) of subdivision (b), or any other vehicle requiring a driver to hold any driver certificate or any driver's license endorsement under Section 15275, unless a medical certificate approved by the department, the Federal Highway Administration, or the Federal Aviation Administration, that has been issued within two years of the date of the operation of that vehicle, is within the licensee's immediate possession, and a copy of the medical examination report from which the certificate was issued is on file with the department. Otherwise, the license shall be valid only for operating class C vehicles that are not commercial vehicles, as defined in subdivision (b) of Section 15210, and for operating class M1 or M2 vehicles, if so endorsed, that are not commercial vehicles, as defined in subdivision (b) of Section 15210. (d) A license or driver certificate issued prior to the enactment of Chapter 7 (commencing with Section 15200) shall be valid to operate the class or type of vehicles specified under the law in existence prior to that enactment until the license or certificate expires or is otherwise suspended, revoked, or canceled. (e) The department may accept a certificate of driving skill that is issued by an employer, authorized by the department to issue a certificate under Section 15250, of the applicant, in lieu of a driving test, on class A or B applications, if the applicant has first qualified for a class C license and has met the other examination requirements for the license for which he or she is applying. The certificate may be submitted as evidence of the applicant's skill in the operation of the types of equipment covered by the license for which he or she is applying. (f) The department may accept a certificate of competence in lieu of a driving test on class M1 or M2 applications, when the certificate is issued by a law enforcement agency for its officers who operate class M1 or M2 vehicles in their duties, if the applicant has met the other examination requirements for the license for which he or she is applying. (g) The department may accept a certificate of satisfactory completion of a novice motorcyclist training program approved by the commissioner pursuant to Section 2932 in lieu of a driving test on class M1 or M2 applications, if the applicant has met the other examination requirements for the license for which he or she is applying. The department shall review and approve the written and driving test used by a program to determine whether the program may issue a certificate of completion. (h) Notwithstanding subdivision (b), any person holding a valid California driver's license of any class may operate a short-term rental motorized bicycle without taking any special examination for the operation of a motorized bicycle, and without having a class M2 endorsement on that license. As used in this paragraph, "short-term" means 48 hours or less. (i) No person under the age of 21 years shall be issued a class M1 or M2 license or endorsement unless he or she provides evidence satisfactory to the department of completion of a motorcycle safety training program that is operated pursuant to Article 2 (commencing with Section 2930) of Chapter 5 of Division 2. (j) Drivers of vanpool vehicles may operate with class C licenses but shall possess evidence of a medical examination required for a class B license when operating vanpool vehicles. In order to be eligible to drive the vanpool vehicle, the driver shall keep in the vanpool vehicle a statement, signed under penalty of perjury, that he or she has not been convicted of reckless driving, drunk driving, or a hit-and-run offense in the last five years. (k) A class M license issued between January 1, 1989, and December 31, 1992, shall permit the holder to operate any motorcycle, motor-driven cycle, or motorized bicycle until the expiration of the license. (l) This section shall become operative on January 1, 2004. SEC. 17. Section 12804.9 of the Vehicle Code, as amended by Section 4 of Chapter 722 of the Statutes of 1999, is repealed. SEC. 18. Section 12810 of the Vehicle Code is amended to read: 12810. In determining the violation point count, the following shall apply: (a) Any conviction of failure to stop in the event of an accident in violation of Section 20001 or 20002 shall be given a value of two points. (b) Any conviction of a violation of Section 23152 or 23153 shall be given a value of two points. (c) Any conviction of reckless driving shall be given a value of two points. (d) (1) Any conviction of a violation of subdivision (c) of Section 192 of the Penal Code, or of Section 2800.2 or 2800.3, subdivision (b) of Section 21651, subdivision (b) of Section 22348, subdivision (a) of Section 23109, subdivision (c) of Section 23109, or Section 31602 of this code, shall be given a value of two points. (2) Any conviction of a violation of subdivision (a) or (b) of Section 23140 shall be given a value of two points. (e) Except as provided in subdivision (g), any other traffic conviction involving the safe operation of a motor vehicle upon the highway shall be given a value of one point. (f) Any accident in which the operator is deemed by the department to be responsible shall be given a value of one point. (g) (1) A violation of paragraph (1), (2), (3), or (5) of subdivision (b) of Section 40001 shall not result in a violation point count being given to the driver if the driver is not the owner of the vehicle. (2) Any conviction of a violation of paragraph (1) or (2) of subdivision (a) of Section 12814.6, subdivision (a) of Section 21116, Section 21207.5, 21708, 21710, 21716, 23120, 24800, or 26707 shall not be given a violation point count. (3) A violation of Section 23136 shall not result in a violation point count. (h) A conviction for only one violation arising from one occasion of arrest or citation shall be counted in determining the violation point count for the purposes of this section. (i) Any conviction of a violation of Section 14601, 14601.1, 14601.2, 14601.3, or 14601.5 shall be given a value of two points. (j) Any conviction of a violation of Section 27360 within a 37-month period shall be given a value of one point. SEC. 18.1. Section 12810 of the Vehicle Code is amended to read: 12810. In determining the violation point count, the following shall apply: (a) Any conviction of failure to stop in the event of an accident in violation of Section 20001 or 20002 shall be given a value of two points. (b) Any conviction of a violation of Section 23152 or 23153 shall be given a value of two points. (c) Any conviction of reckless driving shall be given a value of two points. (d) (1) Any conviction of a violation of subdivision (c) of Section 192 of the Penal Code, or of Section 2800.2 or 2800.3, subdivision (b) of Section 21651, subdivision (b) of Section 22348, subdivision (a) of Section 23109, subdivision (c) of Section 23109, or Section 31602 of this code, shall be given a value of two points. (2) Any conviction of a violation of subdivision (a) or (b) of Section 23140 shall be given a value of two points. (e) Except as provided in subdivision (g), any other traffic conviction involving the safe operation of a motor vehicle upon the highway shall be given a value of one point. (f) Any traffic accident in which the operator is deemed by the department to be responsible shall be given a value of one point. (g) (1) A violation of paragraph (1), (2), (3), or (5) of subdivision (b) of Section 40001 shall not result in a violation point count being given to the driver if the driver is not the owner of the vehicle. (2) Any conviction of a violation of paragraph (1) or (2) of subdivision (a) of Section 12814.6, subdivision (a) of Section 21116, Section 21207.5, 21708, 21710, 21716, 23120, 24800, or 26707 shall not be given a violation point count. (3) A violation of Section 23136 shall not result in a violation point count. (h) A conviction for only one violation arising from one occasion of arrest or citation shall be counted in determining the violation point count for the purposes of this section. (i) Any conviction of a violation of Section 14601, 14601.1, 14601.2, 14601.3, or 14601.5 shall be given a value of two points. (j) Any conviction of a violation of Section 27360 or 27360.5 shall be given a value of one point. SEC. 19. Section 12814.6 of the Vehicle Code is amended to read: 12814.6. (a) Notwithstanding any other provision of law, any driver's license issued to a person at least 16 years of age but under 18 years of age shall be issued pursuant to the provisional licensing program contained in this section. The program shall consist of all of the following components: (1) Upon application for an original license, the applicant shall be issued an instruction permit pursuant to Section 12509. A person who has in his or her immediate possession a valid permit issued pursuant to Section 12509 may operate a motor vehicle, other than a motorcycle or motorized bicycle, subject to Section 12509 only if that person is accompanied by, and under the immediate supervision of, a driver who is 25 years of age or older, who holds a driver's license issued under this code, and whose driving privilege is not on probation. The age requirement of this paragraph does not apply if the licensed driver is the parent, spouse, or guardian of the permitholder or is a licensed or certified driving instructor. (2) The person shall hold an instruction permit for not less than six months prior to applying for a provisional driver's license. (3) The person shall have complied with one of the following: (A) Satisfactory completion of approved courses in automobile driver education and driver training maintained pursuant to provisions of the Education Code in any secondary school of California, or equivalent instruction in a secondary school of another state. (B) Satisfactory completion of six hours or more of behind-the-wheel instruction by a driving school or an independent driving instructor licensed under Chapter 1 (commencing with Section 11100) of Division 5 and either an accredited course in automobile driver education in any secondary school of California pursuant to provisions of the Education Code or satisfactory completion of equivalent professional instruction acceptable to the department. To be acceptable to the department, the professional instruction shall meet minimum standards to be prescribed by the department, which standards shall be at least equal to the requirements for driver education and driver training contained in the rules and regulations adopted by the State Board of Education pursuant to the Education Code. A person who has complied with this subdivision shall not be required by the governing board of a school district to comply with subparagraph (A) in order to graduate from high school. (4) The person shall complete 50 hours of supervised driving practice prior to the issuance of a provisional license, which is in addition to any other driver training instruction required by law. Not less than 10 of the required practice hours shall include driving during darkness, as defined in Section 280. Upon application for a provisional license, the person shall submit to the department the certification of a parent, spouse, guardian, or licensed or certified driving instructor that the applicant has completed the required amount of driving practice and is prepared to take the department's driving test. A person without a parent, spouse, guardian, or who is an emancipated minor, may have a licensed driver 25 years of age or older or a licensed or certified driving instructor complete the certification. This requirement does not apply to motorcycle practice. (5) The person shall successfully complete an examination required by the department. Before retaking a test, the person shall wait for not less than one week after failure of the written test and for not less than two weeks after failure of the driving test. (b) Commencing July 1, 1998, the provisional driver's license shall be subject to all of the following restrictions: (1) Except as specified in paragraph (3), during the first six months after issuance of a provisional license the licensee shall not do any of the following unless accompanied and supervised by a licensed driver who is the licensee's parent or guardian, a licensed driver who is 25 years of age or older, or a licensed or certified driving instructor: (A) Drive between the hours of 12:00 a.m. and 5:00 a.m. (B) Transport passengers who are under 20 years of age. (2) During the second six months after issuance of a provisional license the licensee may transport passengers under the age of 20 years between the hours of 5:00 a.m. and 12:00 a.m. without supervision. This driving time restriction shall not modify or alter any local ordinance that restricts or prohibits cruising during specified proscribed hours. However, the restriction imposed under subparagraph (A) of paragraph (1) shall continue to apply during this period. (3) A licensee may drive between the hours of 12:00 a.m. and 5:00 a.m. or transport an immediate family member without being accompanied and supervised by a licensed driver who is the licensee's parent or guardian, a licensed driver who is 25 years of age or older, or a licensed or certified driving instructor, in the following circumstances: (A) Medical necessity of the licensee when reasonable transportation facilities are inadequate and operation of a vehicle by a minor is necessary. The licensee shall keep in his or her possession a signed statement from a physician familiar with the condition, containing a diagnosis and probable date when sufficient recovery will have been made to terminate the necessity. (B) Schooling or school-authorized activities of the licensee when reasonable transportation facilities are inadequate and operation of a vehicle by a minor is necessary. The licensee shall keep in his or her possession a signed statement from the school principal, dean, or school staff member designated by the principal or dean, containing a probable date that the schooling or school-authorized activity will have been completed. (C) Employment necessity of the licensee when reasonable transportation facilities are inadequate and operation of a vehicle by a minor is necessary. The licensee shall keep in his or her possession a signed statement from the employer, verifying employment and containing a probable date that the employment will have been completed. (D) Necessity of the licensee or the licensee's immediate family member when reasonable transportation facilities are inadequate and operation of a vehicle by a minor is necessary to transport the licensee or the licensee's immediate family member. The licensee shall keep in his or her possession a signed statement from a parent or legal guardian verifying the reason and containing a probable date that the necessity will have ceased. (E) The licensee is an emancipated minor. (c) A law enforcement officer shall not stop a vehicle for the sole purpose of determining whether the driver is in violation of the restrictions imposed under subdivision (b). (d) (1) Upon a finding that any licensee has violated paragraph (1) or (2) of subdivision (b), the court shall impose one of the following: (A) Not less than eight hours nor more than 16 hours of community service for a first offense and not less than 16 hours nor more than 24 hours of community service for a second or subsequent offense. (B) A fine of not more than thirty-five dollars ($35) for a first offense and a fine of not more than fifty dollars ($50) for a second or subsequent offense. (2) If the court orders community service, the court shall retain jurisdiction until the hours of community service have been completed. (3) If the hours of community service have not been completed within 90 days, the court shall impose a fine of not more than thirty-five dollars ($35) for a first offense and not more than fifty dollars ($50) for a second or subsequent offense. (e) No conviction of paragraph (1) or (2) of subdivision (b), when reported to the department, shall be disclosed as otherwise specified in Section 1808 or constitute a violation point count value pursuant to Section 12810. (f) Any term of restriction or suspension of the driving privilege imposed on a person pursuant to this subdivision shall remain in effect until the end of the term even though the person becomes 18 years of age before the term ends. (1) The driving privilege shall be suspended when the record of the person shows one or more notifications issued pursuant to Section 40509 or 40509.5. The suspension shall continue until any notification issued pursuant to Section 40509 or 40509.5 has been cleared. (2) A 30-day restriction shall be imposed when a driver's record shows a violation point count of two or more points in 12 months, as determined in accordance with Section 12810. The restriction shall require the licensee to be accompanied by a licensed parent, spouse, guardian, or other licensed driver 25 years of age or older, except when operating a class M vehicle, or so licensed, with no passengers aboard. (3) A six-month suspension of the driving privilege and a one-year term of probation shall be imposed whenever a licensee's record shows a violation point count of three or more points in 12 months, as determined in accordance with Section 12810. The terms and conditions of probation shall include, but not be limited to, both of the following: (A) The person shall violate no law which, if resulting in conviction, is reportable to the department under Section 1803. (B) The person shall remain free from accident responsibility. (g) Whenever action by the department under subdivision (f) arises as a result of a motor vehicle accident, the person may, in writing and within 10 days, demand a hearing to present evidence that he or she was not responsible for the accident upon which the action is based. Whenever action by the department is based upon a conviction reportable to the department under Section 1803, the person has no right to a hearing pursuant to Article 3 (commencing with Section 14100) of Chapter 3. (h) The department shall require any person whose driving privilege is suspended or revoked pursuant to subdivision (f) to submit proof of financial responsibility as defined in Section 16430. The proof of financial responsibility shall be filed on or before the date of reinstatement following the suspension or revocation. The proof of financial responsibility shall be maintained with the department for three years following the date of reinstatement. (i) Notwithstanding any other provision of this code, the department may issue a distinctive driver's license, which displays a distinctive color or a distinctively colored stripe or other distinguishing characteristic, to persons at least 16 years of age and older but under 18 years of age, and to persons 18 years of age and older but under 21 years of age, so that the distinctive license feature is immediately recognizable. The features shall clearly differentiate between drivers' licenses issued to persons at least 16 years of age or older but under 18 years of age and to persons 18 years of age or older but under 21 years of age. If changes in the format or appearance of drivers' licenses are adopted pursuant to this subdivision, those changes may be implemented under any new contract for the production of driver's licenses entered into after the adoption of those changes. (j) The department shall include, on the face of the provisional driver's license, the original issuance date of the provisional driver's license in addition to any other issuance date. (k) This section shall be known and may be cited as the Brady-Jared Teen Driver Safety Act of 1997. SEC. 20. Section 16020 of the Vehicle Code is amended to read: 16020. (a) Every driver and every owner of a motor vehicle shall at all times be able to establish financial responsibility pursuant to Section 16021, and shall at all times carry in the vehicle evidence of the form of financial responsibility in effect for the vehicle. (b) "Evidence of financial responsibility" means any of the following: (1) A form issued by an insurance company or charitable risk pool, as specified by the department pursuant to Section 4000.37. (2) If the owner is a self-insurer, as provided in Section 16052 or a depositor, as provided in Section 16054.2, the certificate of self-insurance or the assignment of deposit letter issued by the department. (3) An insurance covering note or binder pursuant to Section 382 or 382.5 of the Insurance Code. (4) A showing that the vehicle is owned or leased by, or under the direction of, the United States or any public entity, as defined in Section 811.2 of the Government Code. (c) For purposes of this section, "evidence of financial responsibility" also may be obtained by a law enforcement officer from the electronic reporting system established by the department. (d) For purposes of this section, "evidence of financial responsibility" also includes any of the following: (1) The number of an insurance policy or surety bond that was in effect at the time of the accident or at the time that evidence of financial responsibility is required to be provided pursuant to Section 16028, if that information is contained in the vehicle registration records of the department. (2) The identifying motor carrier of property permit number issued by the Department of the California Highway Patrol to the motor carrier of property as defined in Section 34601, and displayed on the motor vehicle in the manner specified by the Department of the California Highway Patrol. (3) The identifying number issued to the household goods carrier, passenger stage carrier, or transportation charter party carrier by the Public Utilities Commission and displayed on the motor vehicle in the manner specified by the commission. (4) The identifying number issued by the Interstate Commerce Commission or its successor federal agency, if proof of financial responsibility must be presented to the issuing agency as part of the identification number issuance process, and displayed on the motor vehicle in the manner specified by the issuing agency. (e) Evidence of financial responsibility does not include any of the identification numbers in paragraph (1), (2), (3), or (4) of subdivision (d) if the carrier is currently suspended by the issuing agency for lack or lapse of insurance or other form of financial responsibility. SEC. 21. Section 16020.1 of the Vehicle Code is amended to read: 16020.1. (a) On and after January 1, 2004, Section 4000.37 does not apply to vehicle owners with a residence address in the County of Los Angeles at the time of registration renewal. (b) On and after January 1, 2004, subdivisions (a) and (b) of Section 16028 do not apply to a person who drives a motor vehicle upon a highway in the County of Los Angeles. SEC. 22. Section 16020.2 of the Vehicle Code is amended to read: 16020.2. (a) On and after January 1, 2004, Section 4000.37 does not apply to vehicle owners with a residence address in the City and County of San Francisco at the time of registration renewal. (b) On and after January 1, 2004, subdivisions subdivisions (a) and (b) of Section 16028 do not apply to a person who drives a motor vehicle upon a highway in the City and County of San Francisco. SEC. 23. Section 16021 of the Vehicle Code is amended to read: 16021. Financial responsibility of the driver or owner is established if the driver or owner of the vehicle involved in an accident described in Section 16000 is: (a) A self-insurer under the provisions of this division. (b) An insured or obligee under a form of insurance or bond which complies with the requirements of this division and which covers the driver for the vehicle involved in the accident. (c) The United States of America, this state, any municipality or subdivision thereof, or the lawful agent thereof. (d) A depositor in compliance with subdivision (a) of Section 16054.2. (e) A obligee under a policy issued by a charitable risk pool which complies with subdivision (b) of Section 16054.2. (f) In compliance with the requirements authorized by the department by any other manner which effectuates the purposes of this chapter. SEC. 24. Section 16054.2 of the Vehicle Code is amended to read: 16054.2. Proof may also be established by any of the following: (a) By depositing with the department cash in the amount specified in Section 16056. (b) By providing evidence of a liability policy covering the operation of the vehicle that (A) is issued by a charitable risk pool operating under Section 5005.1 of the Corporations Code, if the registered owner of the vehicle is a nonprofit organization that is exempt from taxation under paragraph (3) of subsection (c) of Section 501 of the United States Internal Revenue Code and (B) the policy is subject, if the accident has resulted in bodily injury or death, to a limit, exclusive of interest and costs, of not less than fifteen thousand dollars ($15,000) because of bodily injury to or death of one person in any one accident and, subject to such limit for one person, to a limit of not less than thirty thousand dollars ($30,000) because of bodily injury to or death of two or more persons in any one accident, and, if the accident has resulted in injury to, or destruction of property, to a limit of not less than five thousand dollars ($5,000) because of injury to or destruction of property of others in any one accident. (c) By any other manner authorized by the department which effectuates the purposes of this chapter. SEC. 25. Section 16056 of the Vehicle Code is amended to read: 16056. (a) No policy or bond shall be effective under Section 16054 unless issued by an insurance company or surety company admitted to do business in this state by the Insurance Commissioner, except as provided in subdivision (b) of this section, nor unless the policy or bond is subject, if the accident has resulted in bodily injury or death, to a limit, exclusive of interest and costs, of not less than fifteen thousand dollars ($15,000) because of bodily injury to or death of one person in any one accident and, subject to that limit for one person, to a limit of not less than thirty thousand dollars ($30,000) because of bodily injury to or death of two or more persons in any one accident, and, if the accident has resulted in injury to, or destruction of property, to a limit of not less than five thousand dollars ($5,000) because of injury to or destruction of property of others in any one accident. (b) No policy or bond shall be effective under Section 16054 with respect to any vehicle which was not registered in this state or was a vehicle which was registered elsewhere than in this state at the effective date of the policy or bond or the most recent renewal thereof, unless the insurance company or surety company issuing the policy or bond is admitted to do business in this state, or if the company is not admitted to do business in this state, unless it executes a power of attorney authorizing the department to accept service on its behalf of notice or process in any action upon the policy or bond arising out of an accident mentioned in subdivision (a). (c) Any nonresident driver whose driving privilege has been suspended or revoked based upon an action that requires proof of financial responsibility may, in lieu of providing a certificate of insurance from a company admitted to do business in California, provide a written certificate of proof of financial responsibility that is satisfactory to the department, covers the operation of a vehicle in this state, meets the liability requirements of this section, and is from a company that is admitted to do business in that person's state of residence. SEC. 26. Section 16056.1 is added to the Vehicle Code, to read: 16056.1. (a) Notwithstanding the coverage limits specified in Section 16056, an automobile insurance policy described in Sections 11629.71 and 11629.91 of the Insurance Code shall be effective under Section 16054 when issued by an insurance company admitted to do business in this state by the Insurance Commissioner and the policy is subject, if the accident has resulted in bodily injury or death, to a limit, exclusive of interest and costs, of not less than ten thousand dollars ($10,000) because of bodily injury to or death of one person in any one accident and, subject to that limit for one person, to a limit of not less than twenty thousand dollars ($20,000) because of bodily injury to or death of two or more persons in any one accident, and if the accident has resulted in injury to, or destruction of property, to a limit of not less than three thousand dollars ($3,000) because of injury to or destruction of property of others in any one accident. (b) This section shall remain in effect only until January 1, 2004, and as of that date is repealed, unless a later enacted statute, which is enacted on or before January 1, 2004, deletes or extends that date. SEC. 27. Section 22451 of the Vehicle Code is amended to read: 22451. (a) The driver of any vehicle or pedestrian approaching a railroad or rail transit grade crossing shall stop not less than 15 feet from the nearest rail and shall not proceed until he or she can do so safely, whenever the following conditions exist: (1) A clearly visible electric or mechanical signal device or a flagman gives warning of the approach or passage of a train or car. (2) An approaching train or car is plainly visible or is emitting an audible signal and, by reason of its speed or nearness, is an immediate hazard. (b) No driver or pedestrian shall proceed through, around, or under any railroad or rail transit crossing gate while the gate is closed. (c) Whenever a railroad or rail transit crossing is equipped with an automated enforcement system, a notice of a violation of this section is subject to the procedures provided in Section 40518. SEC. 28. Section 24604 of the Vehicle Code is amended to read: 24604. Whenever the load upon any vehicle extends, or whenever any integral part of any vehicle projects, to the rear four feet or more beyond the rear of the vehicle, as measured from the taillamps, there shall be displayed at the extreme end of the load or projecting part of the vehicle during darkness, in addition to the required taillamp, two red lights with a bulb rated not in excess of six candlepower plainly visible from a distance of at least 500 feet to the sides and rear. At any other time there shall be displayed at the extreme end of the load or projecting part of the vehicle a solid red or fluorescent orange flag or cloth not less than 12 inches square. SEC. 29. Section 1 of Chapter 607 of the Statutes of 1999 is amended to read: Section 1. The Department of Transportation shall extend the completion date to June 30, 2002, for the Environmental Enhancement and Mitigation (EEM) Projects for all of the following entities: (a) Fallbrook Land Conservancy (Project No. 96-135; Agreement No. 11-96-54). (b) City of Diamond Bar (Project No. 96-39; Agreement No. 07-96-37). (c) Redwood Action Agency (Agreement No. 1-96-22). (d) Cambria Community Services District (Project No. 96-28). (e) County of San Luis Obispo, General Services Department/Parks Department (Project No. 96-92). (f) Midpeninsula Regional Open Space District (Project No. 94-99; Agreement Nos. 04-94-15 and 04-95-09). (g) East Bay Regional Park District (Project No. 98-25; Agreement No. 04-98-08. SEC. 30. The City of Napa may transfer to the Department of Transportation, at no cost to the department, any property acquired by the city for completion of the Trancas Interchange Project in that city that is no longer required for completion of the project, if the city and the department enter into an agreement that contains all of the following conditions: (a) After completion of the project, the department shall combine the property with any excess properties on the east side of State Highway Route 29 acquired by the city and the state for the project and shall market and sell the combined package for a fair market price in accordance with established real estate practices. (b) The department shall segregate all net proceeds from the sale of the combined properties, and the department shall use those proceeds to defray the costs of the project. SEC. 31. Section 6.5 of this bill incorporates amendments to Section 4000.37 of the Vehicle Code proposed by both this bill and SB 1996. It shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2001, (2) each bill amends Section 4000.37 of the Vehicle Code, and (3) this bill is enacted after SB 1996, in which case Section 6 of this bill shall not become operative. SEC. 32. Section 18.1 of this bill incorporates amendments to Section 12810 of the Vehicle Code proposed by both this bill and SB 567. It shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2001, (2) each bill amends Section 12810 of the Vehicle Code, and (3) this bill is enacted after SB 567, in which case Section 18 of this bill shall not become operative. SEC. 33. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.