Bill Text: CA AB1099 | 2011-2012 | Regular Session | Amended


Bill Title: Vehicles: motor carriers: inspection of terminals

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Engrossed - Dead) 2012-06-26 - In committee: Set, final hearing. Hearing canceled at the request of author. [AB1099 Detail]

Download: California-2011-AB1099-Amended.html
BILL NUMBER: AB 1099	AMENDED
	BILL TEXT

	AMENDED IN SENATE  MAY 10, 2012
	AMENDED IN SENATE  APRIL 18, 2012
	AMENDED IN SENATE  JULY 12, 2011
	AMENDED IN ASSEMBLY  APRIL 6, 2011
	AMENDED IN ASSEMBLY  MARCH 21, 2011

INTRODUCED BY   Assembly Member Bonnie Lowenthal

                        FEBRUARY 18, 2011

   An act to amend Sections 7235 and 7236 of the Revenue and Taxation
Code, and to amend Sections 34501.12, 34505.6, 34515, 34601, 34622,
34623, and 40000.22 of, and to repeal Sections 34505.5 and 34606 of,
the Vehicle Code, relating to vehicles.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1099, as amended, Bonnie Lowenthal. Vehicles: motor carriers:
inspection of terminals program.
   Existing law establishes the Biennial Inspection of Terminals
Program (BIT) to ensure the safe operation of certain vehicles by a
motor carrier through the inspection of these vehicles at the motor
carrier's terminal by the Department of the California Highway
Patrol. Existing law defines a motor carrier, for this purpose, as
the registered owner of, and in some cases the lessee or person
exclusively authorizing and directing the operation of, specified
vehicles. Existing law requires, within 30 days of establishing a
terminal, a motor carrier to schedule an inspection by submitting to
the department an application for a terminal inspection accompanied
by the payment of a fee the amount of which is based on the number of
vehicles in a terminal or the "terminal fleet size." Existing law
requires the department to inspect every terminal at least once every
25 months and defines a terminal as the location or locations
designated by the motor carrier where subject vehicles and specific
records are available for inspection.
   This bill would revise and recast these provisions as the Basic
Inspection of Terminals (BIT) program. The bill would define motor
carrier for this purpose as the registered owner, lessee, licensee,
or bailee of specified vehicles. The bill would make it unlawful to
operate a new terminal unless an inspection is conducted within the
first 18 months of operation. The bill would instead authorize the
department to conduct terminal inspections at any time. The bill
would require the department, on or before January 1,  2014
  2015 , to implement a performance-based truck
terminal inspection priority system similar to that used by the
Federal Motor Carrier Safety Administration that would require the
department to place an inspection priority on motor carrier terminals
never previously inspected by the department. Nonpriority terminals
would not be required to be inspected less than 4 years since their
last inspection.
   The bill would require a motor carrier to make vehicles and
records available for inspection upon request by the department and
to pay a carrier inspection fee, the amount to be based on the size
of the motor carrier's fleet. The bill would impose a penalty for
failure to pay the fee. The bill would make other technical and
conforming changes to the BIT program.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 7235 of the Revenue and Taxation Code is
amended to read:
   7235.  The Safety Fee and Carrier Inspection Fee imposed by this
chapter shall be paid by all motor carriers of property, as defined
in Section 34601 of the Vehicle Code.
  SEC. 2.  Section 7236 of the Revenue and Taxation Code is amended
to read:
   7236.  (a) Uniform business license tax fee payments collected by
the Department of Motor Vehicles pursuant to Section 7232 shall be
deposited in the State Treasury to the credit of the General Fund.
All other funds collected by the Department of Motor Vehicles
pursuant to Section 7232 shall be deposited in the State Treasury to
the credit of the Motor Vehicle Account in the State Transportation
Fund. The following fees shall be paid to the department:
   (1) For-hire motor carriers of property shall pay, according to
the schedule in subdivision (c), fees indicated as the safety fee,
carrier inspection fee, and uniform business license tax fee, based
on the size of their motor vehicle fleet.
   (2) (A) Private carriers of property with a fleet size of 10 or
less motor vehicles shall pay a safety fee of thirty-five dollars
($35). Private carriers of property with a fleet size of 11 or more
motor vehicles shall pay, according to the schedule in subdivision
(c), fees indicated as the safety fee, based on the size of their
motor vehicle fleet. Any carrier that does not pay a uniform business
license tax fee shall not operate as a for-hire motor carrier.
   (B) Private carriers of property shall pay, according to the
schedule of fees in subdivision (c), fees indicated as the carrier
inspection fee based on the size of the motor vehicle fleet.
   (b) "Fleet size" as used in this section, does not include
vehicles described in subdivision (e) of Section 34500.
   (c) (1) A seasonal permit may be issued to a motor carrier of
property upon payment of fees indicated as the safety fee and
one-twelfth of the fee indicated as the uniform business license tax
fee, rounded to the next dollar, for each month the permit is valid.
The original seasonal permit shall be valid for a period of not less
than six months, and may be renewed upon payment of a five-dollar
($5) fee, and one-twelfth of the fee indicated as a uniform business
license tax fee for each additional month of operation.
                                             Carrier 
   Fleet Size-
   -Commercial                 Uniform              
 Inspection
      Motor       Safety      Business
  Vehicles Fee     Fee       License Tax         
 Fee 
        1           $60          $60              
 $130 
       2-4          75           125             
 152 
      5-10          200          275             
 252 
      11-20         240          470             
 573 
      21-35         325          650             
 743 
      36-50         430          880             
 961 
      51-100        535         1,075             
 1,112 
     101-200        635         1,300             
 1,463 
     201-500        730         1,510             
 1,512 
    501-1,000       830         1,715             
 1,600 
   1,001-2,000      930         1,900             
 1,800 
   2,001-over     1,030         2,000             
 2,114 


   (2) Notwithstanding the fee schedule in paragraph (1), except for
the carrier inspection fee, motor carriers of property with 10 or
fewer trucks shall not pay fees higher than they would have paid
under the fee structure in place as of January 1, 1996.
Notwithstanding Section 34606 of the Vehicle Code, fees for these
carriers shall not be subject to an increase by the Department of
Motor Vehicles.
   (d) Failure to pay a fee required by this section, within the
appropriate timeframe, shall result in additional delinquent fees as
follows:
   (1) For a delinquency period of more than 30 days, the penalty is
60 percent of the required fee.
   (2) For a delinquency period of one to two years, the penalty is
80 percent of the required fee.
   (3) For a delinquency period of more than two years, the penalty
is 160 percent of the required fee.
   (e) Funds derived from safety fees shall remain in the Motor
Vehicle Account in the State Transportation Fund and shall be
available for appropriation by the Legislature to cover costs
incurred by the Department of Motor Vehicles and the Department of
the California Highway Patrol in regulating and inspecting motor
carriers of property pursuant to Division 14.8 (commencing with
Section 34500) and Division 14.85 (commencing with Section 34600) of
the Vehicle Code.
   (f) It is the intent of the Legislature that the fee schedule
established in subdivision (c) shall not discriminate against small
fleet or individual vehicle operators or result in a disproportionate
share of those fees being assigned to small fleet or individual
vehicle operators.
  SEC. 3.  Section 34501.12 of the Vehicle Code is amended to read:
   34501.12.  (a) As used in this section and Section 34505.6, "motor
carrier" means the registered owner, or a lessee, licensee, or
bailee, of any vehicle described in subdivision (a), (b), (e), (f),
(g), (j), or (k) of Section 34500, who operates or directs the
operation of that vehicle.
    (b) It is unlawful for a motor carrier to operate any vehicle of
a type described in subdivision (a) without identifying to the
department all terminals, as defined in Section 34515, in this state
where vehicles may be inspected by the department pursuant to
paragraph (4) of subdivision (a) of Section 34501 and where vehicle
inspection and maintenance records and driver records will be made
available for inspection. Motor carriers shall make vehicles and
records available for inspection upon request by an authorized
representative of the department. If a motor carrier fails to provide
vehicles and records, an unsatisfactory terminal rating shall be
issued by the department.
   (1) The number of vehicles that will be selected for inspection by
the department at a terminal shall be based on terminal fleet size
and applied separately to a terminal fleet of power units and
trailers, according to the following schedule:
Fleet Size       Vehicles
  1 or 2            All
  3 to 8              3
  9 to 15             4
16 to 25             6
26 to 50             9
51 to 90            14
91 or more          20


   (2) The lessor of any vehicle described in subdivision (a) shall
make vehicles available for inspection upon request of an authorized
representative of the department in the course of inspecting the
terminal of the lessee. This section does not affect whether the
lessor or driver provided by the lessor is an employee of the
authorized carrier lessee and compliance with this section and its
attendant administrative requirements does not imply an
employee-employer relationship.
   (c) (1) The department may inspect any terminal, as defined in
Section 34515, of a motor carrier who, at any time, operates any
vehicle described in subdivision (a).
   (2) On or before January 1,  2014   2015
 , the department shall adopt regulations establishing a
performance-based truck terminal inspection priority system. This may
include systems or methodologies used by the Federal Motor Carrier
Safety Administration, and the department may also incorporate other
safety-related data in this system. The department shall place an
inspection priority on motor carrier terminals never previously
inspected by the department and those terminals operating vehicles
listed in subdivision (g) of Section 34500. Nonpriority terminals are
not required to be inspected less than four years since last
inspected.
   (3) As used in this section and Section 34505.6, subdivision (f)
of Section 34500 includes only those combinations where the gross
vehicle weight rating (GVWR) of the towing vehicle exceeds 10,000
pounds, but does not include a pickup truck or any combination never
operated in commercial use, and subdivision (g) of Section 34500
includes only those vehicles transporting hazardous material for
which the display of placards is required pursuant to Section 27903,
a license is required pursuant to Section 32000.5, or for which
hazardous waste transporter registration is required pursuant to
Section 25163 of the Health and Safety Code. Notwithstanding Section
5014.1, vehicles that display special identification plates in
accordance with Section 5011, historical vehicles, as described in
Section 5004, implements of husbandry and farm vehicles, as defined
in Chapter 1 (commencing with Section 36000) of Division 16, and
vehicles owned or operated by an agency of the federal government are
not subject to this section or Section 34505.6.
   (d) (1) It is unlawful for a motor carrier to operate a vehicle
from a new terminal, which is subject to this section, unless an
inspection is performed on the terminal, and a safety compliance
report is issued to the motor carrier regarding the terminal, within
the first 18 months of operating a vehicle subject to this section
from the new terminal. It is the responsibility of the motor carrier
to schedule with the department the inspection of any new terminal
within 90 days of operating vehicles from that new terminal.
   (2) It is unlawful for a motor carrier to contract or subcontract
with, or otherwise engage the services of, another motor carrier,
subject to this section, unless the contracted motor carrier has
complied with paragraph (1). A motor carrier shall not contract or
subcontract with, or otherwise engage the services of, another motor
carrier until the contracted motor carrier provides certification of
compliance with paragraph (1). This certification shall be completed
in writing by the contracted motor carrier. The certification, or a
copy of the certification, shall be maintained by each involved party
for the duration of the contract or the period of service plus two
years, and shall be presented for inspection immediately upon the
request of an authorized employee of the department.
   (e) (1) An inspected terminal that receives an unsatisfactory
compliance rating shall be reinspected by the department within 120
days after the issuance of the unsatisfactory compliance rating.
   (2) When a motor carrier's Motor Carrier of Property Permit or
Public Utilities Commission operating authority is suspended as a
result of an unsatisfactory compliance rating, the department shall
not conduct a reinspection for permit or authority reinstatement
until requested to do so by the Department of Motor Vehicles or the
Public Utilities Commission, as appropriate.
   (f) A motor carrier issued an unsatisfactory terminal rating may
request a review of the rating within five business days of receipt
of the notification of the rating. The department shall conduct and
evaluate the review within 10 business days of the request.
   (g) This section shall be known and may be cited as the Basic
Inspection of Terminals program or BIT program.
  SEC. 4.  Section 34505.5 of the Vehicle Code is repealed.
  SEC. 5.  Section 34505.6 of the Vehicle Code is amended to read:
   34505.6.  (a) Upon determining that a motor carrier of property
who is operating any vehicle described in subdivision (a), (b), (e),
(f), (g), or (k) of Section 34500, or any motortruck of two or more
axles that is more than 10,000 pounds gross vehicle weight rating, on
a public highway, has done either of the following, the department
shall recommend that the Department of Motor Vehicles suspend or
revoke the carrier's motor carrier permit, or, for interstate
operators, the department shall recommend to the Federal Motor
Carrier Safety Administration that appropriate administrative action
be taken against the carrier:
   (1) Failed to maintain any vehicle of a type described above in a
safe operating condition or to comply with the Vehicle Code or with
applicable regulations contained in Title 13 of the California Code
of Regulations, and, in the department's opinion, that failure
presents an imminent danger to public safety or constitutes a
consistent failure so as to justify a suspension or revocation of the
motor carrier's motor carrier permit.
   (2) Failed to enroll all drivers in the pull-notice system as
required by Section 1808.1.
   (b) Upon determining that a household goods carrier, or a
household goods carrier transporting used office, store, or
institution furniture and fixtures under its household goods carrier
permit issued under Section 5137 of the Public Utilities Code,
operating any vehicle described in subdivision (a), (b), (e), (f),
(g), or (k) of Section 34500 on a public highway, has done either of
the following, the department shall recommend that the Public
Utilities Commission deny, suspend, or revoke the carrier's operating
authority, or for interstate operators, the department shall
recommend to the Federal Motor Carrier Safety Administration that
appropriate administrative action be taken against the carrier:
   (1) Failed to maintain any vehicle used in transportation for
compensation in a safe operating condition or to comply with the
Vehicle Code or with applicable regulations contained in Title 13 of
the California Code of Regulations, and, in the department's opinion,
that failure presents an imminent danger to public safety or
constitutes a consistent failure so as to justify a suspension,
revocation, or denial of the motor carrier's operating authority.
   (2) Failed to enroll all drivers in the pull-notice system as
required by Section 1808.1.
   (c) For purposes of this section, two consecutive unsatisfactory
compliance ratings for an inspected terminal assigned because the
motor carrier failed to comply with the periodic report requirements
of Section 1808.1 or the cancellation of the carrier's enrollment by
the Department of Motor Vehicles for the nonpayment of required fees
is a consistent failure. The department shall retain a record, by
operator, of every recommendation made pursuant to this section.
   (d) Before transmitting a recommendation pursuant to subdivision
(a), the department shall notify the carrier in writing of all of the
following:
   (1) That the department has determined that the carrier's safety
record or compliance with Section 1808.1 is unsatisfactory,
furnishing a copy of any documentation or summary of any other
evidence supporting the determination.
   (2) That the determination may result in a suspension, revocation,
or denial of the carrier's motor carrier permit by the Department of
Motor Vehicles, suspension, revocation, of the motor carrier's
operating authority by the California Public Utilities Commission, or
administrative action by the Federal Motor Carrier Safety
Administration.
   (3) That the carrier may request a review of the determination by
the department within five days of its receipt of the notice required
under this subdivision. If a review pursuant to this paragraph is
requested by the carrier, the department shall conduct and evaluate
that review prior to transmitting any notification pursuant to
subdivision (a) or (b).
   (e) Upon receipt of a written recommendation from the department
that a motor carrier permit or operating authority be suspended,
revoked, or denied, the Department of Motor Vehicles or Public
Utilities Commission, as appropriate, shall, pending a hearing in the
matter pursuant to Section 34623 or appropriate Public Utilities
Commission authority, suspend the motor carrier permit or operating
authority. The written recommendation shall specifically indicate
compliance with subdivision (d).
  SEC. 6.  Section 34515 of the Vehicle Code is amended to read:
   34515.  (a) As used in this division and in regulations adopted
pursuant to this division, "maintenance facility or terminal" means
any place or places where a vehicle of a type listed in Section 34500
is regularly garaged or maintained, or from which it is operated or
dispatched. "Maintenance facility or terminal" may include a private
business or residence.
   (b) For the purpose of the inspections conducted pursuant to
Section 34501.12, "terminal" means the location or locations in this
state that are designated by a motor carrier, where subject vehicles
may be inspected by the department and where vehicle maintenance and
inspection records and drivers' records will be made available for
inspection.
  SEC. 7.  Section 34601 of the Vehicle Code is amended to read:
   34601.  (a) As used in this division, "motor carrier of property"
means any person who operates any commercial motor vehicle as defined
in subdivision (c). "Motor carrier of property" does not include a
household goods carrier, as defined in Section 5109 of the Public
Utilities Code, a household goods carrier transporting used office,
store, and institution furniture and fixtures under its household
goods carrier permit pursuant to Section 5137 of the Public Utilities
Code, persons providing only transportation of passengers, or a
passenger stage corporation transporting baggage and express upon a
passenger vehicle incidental to the transportation of passengers.
   (b) As used in this division, "for-hire motor carrier of property"
means a motor carrier of property as defined in subdivision (a) who
transports property for compensation.
   (c) (1) As used in this division, except as provided in paragraph
(2), a "commercial motor vehicle" means any self-propelled vehicle
listed in subdivisions (a), (b), (f), (g), and (k) of Section 34500,
any motortruck of two or more axles that is more than 10,000 pounds
gross vehicle weight rating, and any other motor vehicle used to
transport property for compensation.
   (2) As used in this division, "commercial motor vehicle" does not
include any of the following:
   (A) Vehicles identified in subdivision (f) of Section 34500, if
the gross vehicle weight rating of the towing vehicle is 10,000
pounds or less.
   (B) Vehicles identified in subdivision (g) of Section 34500, if
the hazardous material transportation does not require the display of
placards under Section 27903, a license under Section 32000.5, or a
hazardous waste transporter registration under Section 25163 of the
Health and Safety Code, and the vehicle is not operated in commercial
use.
   (C) Vehicles operated by a household goods carrier, as defined in
Section 5109 of the Public Utilities Code, under the household goods
carrier permit pursuant to Section 5137 of that code.
   (D) Vehicles operated by a household goods carrier to transport
used office, store, and institution furniture and fixtures under its
household goods carrier permit pursuant to Section 5137 of the Public
Utilities Code.
   (E) Pickup trucks as defined in Section 471, if the conditions in
subparagraphs (A) and (B) are also met.
   (F) Two-axle daily rental trucks with a gross vehicle weight
rating of less than 26,001 pounds, when operated in noncommercial
use.
   (G) Motortrucks or two-axle truck tractors, with a gross vehicle
weight rating of less than 26,001 pounds, operated singly, or, when
used to tow a camp trailer, trailer coach, fifth-wheel travel
trailer, trailer designed to transport watercraft, or utility
trailer, never operated in commercial use. Vehicle combinations
described in this subparagraph are not subject to Section 27900,
34501.12, or 34507.5.
   (d) For purposes of this chapter, "private carrier" means a motor
carrier of property, who transports only his or her own property,
including, but not limited to, the delivery of goods sold by that
carrier.
  SEC. 8.  Section 34606 of the Vehicle Code is repealed.
  SEC. 9.  Section 34622 of the Vehicle Code is amended to read:
   34622.  This chapter does not apply to any of the following:
   (a) Vehicles described in Section 5004 or 5011, and those that are
exempt from vehicle registration fees.
   (b) A household goods carrier transporting used office, store, and
institution furniture and fixtures under its household goods carrier
permit pursuant to Section 5137 of the Public Utilities Code.
  SEC. 10.  Section 34623 of the Vehicle Code is amended to read:
   34623.  (a) The Department of the California Highway Patrol has
exclusive jurisdiction for the regulation of safety of operation of
motor carriers of property.
   (b) The motor carrier permit of a motor carrier of property may be
suspended for failure to do either of the following:
   (1) Maintain any vehicle of the carrier in a safe operating
condition or to comply with this code or with applicable regulations
contained in Title 13 of the California Code of Regulations, if that
failure is either a consistent failure or presents an imminent danger
to public safety.
   (2) Enroll all drivers in the pull-notice system as required by
Section 1808.1.
   (c) The motor carrier permit of a motor carrier of property shall
be suspended for failure to either (1) comply with the requirements
of federal law described in subdivision (a) of Section 34520 of the
Vehicle Code, or (2) make copies of results and other records
available as required by subdivision (b) of that section. The
suspension shall be as follows:
   (1) For a serious violation, which is a willful failure to perform
substance abuse testing in accordance with state or federal law:
   (A) For a first offense, a mandatory five-day suspension.
   (B) For a second offense within three years of a first offense, a
mandatory three-month suspension.
   (C) For a third offense within three years of a first offense, a
mandatory one year suspension.
   (2) For a nonserious violation, the time recommended to the
department by the Department of the California Highway Patrol.
   (3) For the purposes of this subdivision, "willful failure" means
any of the following:
   (A) An intentional and uncorrected failure to have a controlled
substances and alcohol testing program in place.
   (B) An intentional and uncorrected failure to enroll an employed
driver into the controlled substances and alcohol testing program.
   (C) A knowing use of a medically disqualified driver, including
the failure to remove the driver from safety-sensitive duties upon
notification of the medical disqualification.
   (D) An attempt to conceal legal deficiencies in the motor carrier'
s controlled substances and alcohol testing program.
   (d) The department, pending a hearing in the matter pursuant to
subdivision (f), may suspend a carrier's permit.
   (e) (1) A motor carrier whose motor carrier permit is suspended
pursuant to subdivision (b) may obtain a reinspection of its terminal
and vehicles by the Department of the California Highway Patrol by
submitting a written request for reinstatement to the department and
paying a reinstatement fee as required by Section 34623.5.
   (2) The department shall deposit all reinstatement fees collected
from motor carriers of property pursuant to this section in the fund.
Upon receipt of the fee, the department shall forward a request to
the Department of the California Highway Patrol, which shall perform
a reinspection within a reasonable time, or shall verify receipt of
the application or fee or both the application and fee. Following the
term of a suspension imposed under Section 34670, the department
shall reinstate a carrier's motor carrier permit suspended under
subdivision (b) upon notification by the Department of the California
Highway Patrol that the carrier's safety compliance has improved to
the satisfaction of the Department of the California Highway Patrol,
unless the permit is suspended for another reason or has been
revoked.
   (f) Whenever the department suspends the permit of any carrier
pursuant to subdivision (b), (c), or paragraph (3) of subdivision
(i), the department shall furnish the carrier with written notice of
the suspension and shall provide for a hearing within a reasonable
time, not to exceed 21 days, after a written request is filed with
the department. At the hearing, the carrier shall show cause why the
suspension should not be continued. Following the hearing, the
department may terminate the suspension, continue the suspension in
effect, or revoke the permit. The department may revoke the permit of
any carrier suspended pursuant to subdivision (b) at any time that
is 90 days or more after its suspension if the carrier has not filed
a written request for a hearing with the department or has failed to
submit a request for reinstatement pursuant to subdivision (e).
   (g) Notwithstanding any other provision of this code, a hearing
shall not be provided if the suspension of the motor carrier permit
is based solely upon the failure of the motor carrier to maintain
satisfactory proof of financial responsibility as required by this
code.
   (h) A motor carrier of property may not operate a commercial motor
vehicle on any public highway in this state during any period its
motor carrier of property permit is suspended pursuant to this
division.
   (i) (1) A motor carrier of property whose motor carrier permit is
suspended pursuant to this section or Section 34505.6, which
suspension is based wholly or in part on the failure of the motor
carrier to maintain any vehicle in safe operating condition, may not
lease, or otherwise allow, another motor carrier to operate the
vehicles of the carrier subject to the suspension, during the period
of the suspension.
   (2) A motor carrier of property may not knowingly lease, operate,
dispatch, or otherwise utilize any vehicle from a motor carrier of
property whose motor carrier permit is suspended, which suspension is
based wholly or in part on the failure of the motor carrier to
maintain any vehicle in safe operating condition.
   (3) The department may immediately suspend the motor carrier
permit of any motor carrier that the department determines to be in
violation of paragraph (2).
  SEC. 11.  Section 40000.22 of the Vehicle Code is amended to read:
   40000.22.  (a) A violation of subdivision (e) of Section 34501,
subdivision (b) or (d) of Section 34501.12, or subdivision (c) of
Section 34501.14, relating to applications for inspections, is a
misdemeanor and not an infraction.
   (b) A violation of Division 14.85 (commencing with Section 34600),
relating to motor carriers of property, is a misdemeanor and not an
infraction.                             
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