BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 145
                                                                  Page  1

          Date of Hearing:   April 22, 2009

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Kevin De Leon, Chair

                   AB 145 (De Leon) - As Amended:  March 31, 2009 

          Policy Committee:                               
          TransportationVote:14-0

          Urgency:     No                   State Mandated Local Program:  
          Yes    Reimbursable:              No

           SUMMARY  

          This bill 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.   

           FISCAL EFFECT

           1)Minor local mandated costs from the expansion of an existing  
            crime-related statute, not state reimbursable.

          2)Administrative costs to the Department of Motor Vehicles are  
            minor and absorbable. 

           COMMENTS

          1)Background.  Under existing law, every motor carrier of  
            property must 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.  A motor carrier is prohibited from subcontracting  
            with or engaging the services of another motor carrier unless  
            the contracted motor carrier provides certification of  
            compliance with existing law and regulations. A construction  
            transportation broker that subcontracts with another motor  
            carrier, however, is not subject to the verification  
            requirements that apply to motor carriers.

           2)Rationale.  This bill is intended to address the gap in current  
            law by requiring that construction truck brokers also verify  
            that subcontractors comply with existing laws. The author  








                                                                  AB 145
                                                                  Page  2

            indicates that a growing number of construction truck brokers  
            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 this trend undermines the intent of existing statutes  
            ensuring safety and proper licensure.  

           Analysis Prepared by  :    Brad Williams / APPR. / (916) 319-2081