BILL ANALYSIS
AB 145
Page 1
Date of Hearing: April 13, 2009
ASSEMBLY COMMITTEE ON TRANSPORTATION
Mike Eng, Chair
AB 145 (DeLeon) - As Amended: March 31, 2009
SUBJECT : Motor carriers: construction transportation brokers
SUMMARY : Prohibits a construction transportation broker from
contracting or engaging the services of a motor carrier of
property that is out of compliance with existing law.
EXISTING LAW:
1)Prohibits a motor carrier from operating on the highway unless
it complies with systematic inspection and maintenance at
least every 90 days.
2)Requires a motor carrier to register its carrier
identification number with the Department of Motor Vehicles
(DMV).
3)Prohibits a motor carrier permit from being granted to any
motor carrier of property until proof of insurance, workers
compensation coverage, and payment of required fees is
provided.
4)Prohibits a motor carrier of property from subcontracting with
or engaging the services of a motor carrier unless that motor
carrier holds a valid permit issued by DMV.
5)Requires a contracted motor carrier to provide notification to
the person with whom they are under contract, if its permit
has been suspended or revoked.
FISCAL EFFECT : Unknown
COMMENTS : Under existing law, a motor carrier is prohibited
from subcontracting with or engaging the services of another
motor carrier until the contracted motor carrier provides
certification of compliance with existing law and regulations.
A contracted motor carrier is required to provide notification
to the person with whom they are under contract, if its permit
has been suspended or revoked.
AB 145
Page 2
Every motor carrier of property must also obtain a carrier
identification number and hold a valid motor carrier permit from
DMV. Adequate liability insurance, workers compensation
coverage, and completion of controlled substance and alcohol
testing program are also required.
Currently, a construction transportation broker can subcontract
or engage the services of a motor carrier without having to
verify that the subcontractor complies with all the requirements
of existing law, as is required of a motor carrier when they
subcontract work. This bill seeks to address that gap in
current law by requiring that construction truck brokers also
verify that a subcontractor complies with existing law, as is
required of a motor carrier.
The author of this bill points out that an increasing trend is
taking place in the motor carrier industry that may be
jeopardizing road safety. A growing number of construction
truck brokers that do not have a motor carrier permit or may not
be acting as a motor carrier when they are brokering, are
subcontracting work without verifying that a subcontractor has
complied with existing law requirements.
The sponsor of this bill, the California Dump Truck Owners
Association, adds that the "emerging growth of construction
truck brokers subcontracting work without having to legally
abide by existing law, clearly undermines the intent of statute
in ensuring safety and proper licensure."
REGISTERED SUPPORT / OPPOSITION :
Support
California Dump Truck Owners Association (sponsor)
Opposition
None on file
Analysis Prepared by : Alejandro Esparza / TRANS. / (916)
319-2093