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

NOTE: There are more recent revisions of this legislation. Read Latest Draft
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  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 Section 4755 of the Vehicle Code,
relating to vehicles.   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.  Commercial motor
vehicles: emissions standards.   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, 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.  
   Existing law requires the Department of Motor Vehicles to refuse
registration, or renewal or transfer of registration, for any
commercial motor vehicle with a declared gross or combined gross
vehicle weight that exceeds 10,000 pounds if the owner or operator of
the motor vehicle at the time of the application has been cited for
a violation of specified air quality standards pertaining to that
vehicle or regulations adopted by the State Air Resources Board
(board), until the violation has been cleared, as determined by that
board.  
   This bill would require the department to refuse registration for
any commercial motor vehicle subject to registration that is of a
1996 or older model year with a gross vehicle weight rating of more
than 26,000 pounds, except for any construction truck that is subject
to an extension pursuant regulations adopted by the board as
determined by the department.  
   The bill would also exempt from this requirement a commercial
motor vehicle registered in California prior to January 1, 2012, if
the commercial motor vehicle is continuously registered, as
specified, or is certified nonoperational after January 1, 2012.

   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  following  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
 following  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. 

   (3) 
    (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 


   Notwithstanding 
    (2)     Notwithstanding  the 
above  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.  
   (b) 
    (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. 
   (c) 
    (f)  It is the intent of the Legislature that the fee
schedule established in subdivision  (a)   (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)  Notwithstanding Section 408, as 
 As  used in this section and  Sections 34505.5 and
  Section  34505.6, "motor carrier" means the
registered owner  , or a lessee, licensee, or bailee,  of
 a   any  vehicle described in subdivision
(a), (b), (e), (f),  or  (g)  , (j), or (k)
 of Section 34500,  except in the following
circumstances:   who operates or directs the operation
of that vehicle.  
   (1) The registered owner leases the vehicle to another person for
a term of more than four months. If the lease is for more than four
months, the lessee is the motor carrier.  
   (2) The registered owner operates the vehicle exclusively under
the authority and direction of another person. If the operation is
exclusively under the authority and direction of another person, that
other person may assume the responsibilities as the motor carrier.
If not so assumed, the registered owner is the motor carrier. A
person who assumes the motor carrier responsibilities of another
pursuant to subdivision (b) shall provide to that other person whose
motor carrier responsibility is so assumed, a completed copy of a
departmental form documenting that assumption, stating the period for
which responsibility is assumed, and signed by an agent of the
assuming person. A legible copy shall be carried in each vehicle or
combination of vehicles operated on the highway during the period for
which responsibility is assumed. That copy shall be presented upon
request by an authorized employee of the department. The original
completed departmental form documenting the assumption shall be
provided to the department within 30 days of the assumption. If the
assumption of responsibility is terminated, the person who had
assumed responsibility shall so notify the department in writing
within 30 days of the termination.  
   (b) (1) A motor carrier may combine two or more terminals that are
not subject to an unsatisfactory compliance rating within the last
36 months for purposes of the inspection required by subdivision (d),
subject to all of the following conditions:  
   (A) The carrier identifies to the department, in writing, each
terminal proposed to be included in the combination of terminals for
purposes of this subdivision prior to an inspection of the designated
terminal pursuant to subdivision (d).  
   (B) The carrier provides the department, prior to the inspection
of the designated terminal pursuant to subdivision (d), a written
listing of all its vehicles of a type subject to subdivision (a),
(b), (e), (f), or (g) of Section 34500 that are based at each of the
terminals combined for purposes of this subdivision. The listing
shall specify the number of vehicles of each type at each terminal.
 
   (C) The carrier provides to the department at the designated
terminal during the inspection all maintenance records and driver
records and a representative sample of vehicles based at each of the
terminals included within the combination of terminals. 

   (2) If the carrier fails to provide the maintenance records,
driver records, and representative sample of vehicles pursuant to
subparagraph (C) of paragraph (1), the department shall assign the
carrier an unsatisfactory terminal rating and require a reinspection
to be conducted pursuant to subdivision (h).  
   (3) For purposes of this subdivision, the following terms have the
following meanings:  
   (A) "Driver records" includes pull notice system records, driver
proficiency records, and driver timekeeping records. 

   (B) "Maintenance records" includes all required maintenance,
lubrication, and repair records and drivers' daily vehicle condition
reports.  
   (C) "Representative sample" means the following, applied
separately to the carrier's fleet of motortrucks and truck tractors
and its fleet of trailers: 
                Representative 
 Fleet Size        Sample 
   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 


   (c) Each motor carrier who, in this state, directs the operation
of, or maintains, a 
    (b)     It is unlawful for a motor car
  rier to operate any    vehicle of a type
described in subdivision (a)  shall designate one or more
  without identifying to the department all 
terminals, as defined in Section 34515, in this state where vehicles
 can   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.  
   (d) 
    (c)  (1) The department  shall  
may  inspect  , at least every 25 months, every
  any  terminal, as defined in Section 34515, of a
motor carrier who, at any time, operates  a  
any  vehicle described in subdivision (a).
   (2)  On or before January 1, 2014, 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.  Non 
 priority terminals are not required to be inspected less than
four years since last inspected. 
   (3) As used in this section and  in Sections 34505.5 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.  Historical vehicles, as
described in Section 5004   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  to Sections
34505.5 and   Section  34505.6. 
   (e) (1) It is the responsibility of the motor carrier to schedule
with the department the inspection required by subdivision (d). The
motor carrier shall submit an application form supplied by the
department, accompanied by the required fee contained in paragraph
(2), for each terminal the motor carrier operates. This fee shall be
submitted within 30 days of establishing a terminal. All fees
submitted under paragraph (2) are nonrefundable.  
   (2) (A) The fee for each terminal is set forth in the following
table: 
 Terminal      Required fee per terminal 
 fleet size 
 1                       $ 270
 2                       $ 375 
 3 to 8                  $ 510 
 9 to 15                 $ 615 
 16     to 25            $ 800 
 26 to 50                $1,040 
 51 to 90                $1,165 
 91 or more              $1,870 


   (B) In addition to the fee specified in subparagraph (A), the
motor carrier shall submit an additional fee of three hundred fifty
dollars ($350) for each of its terminals not previously inspected
under the section.  
   (3) Except as provided in paragraph (5), the inspection term for
each inspected terminal of a motor carrier shall expire 25 months
from the date the terminal receives a satisfactory compliance rating,
as specified in subdivision (h). Applications and fees for
subsequent inspections shall be submitted not earlier than nine
months and not later than seven months before the expiration of the
motor carrier's then current inspection term. If the motor carrier
has submitted the inspection application and the required
accompanying fees, but the department is unable to complete the
inspection within the 25-month inspection period, then no additional
fee shall be required for the inspection requested in the original
application.  
   (4) All fees collected pursuant to this subdivision shall be
deposited in the Motor Vehicle Account in the State Transportation
Fund. An amount equal to the fees collected shall be available for
appropriation by the Legislature from the Motor Vehicle Account to
the department for the purpose of conducting truck terminal
inspections and for the additional roadside safety inspections
required by Section 34514.  
   (5) To avoid the scheduling of a renewal terminal inspection
pursuant to this section during a carrier's seasonal peak business
periods, the current inspection term of a terminal that has paid all
required fees and has been rated satisfactory in its last inspection
may be reduced by not more than nine months if a written request is
submitted by the carrier to the department at least four months prior
to the desired inspection month, or at the time of payment of
renewal inspection fees in compliance with paragraph (3), whichever
date is earlier. A motor carrier may request this adjustment of the
inspection term during any inspection cycle. A request made pursuant
to this paragraph shall not result in a fee proration and does not
relieve the carrier from the requirements of paragraph (3). 

   (6) Failure to pay a fee required by this section, within the
appropriate timeframe, shall result in additional delinquent fees as
follows:  
   (A) For a delinquency period of more than 30 days, the penalty is
60 percent of the required fee.  
   (B) For a delinquency period of one to two years, the penalty is
80 percent of the required fee.  
   (C) For a delinquency period of more than two years, the penalty
is 160 percent of the required fee.  
   (7) Federal, state, and local public entities are exempt from the
fee requirement of this section.  
   (f) It is unlawful for a motor carrier to operate a vehicle
subject to this section without having submitted an inspection
application and the required fees to the department as required by
subdivision (e) or (h).  
   (g) 
    (d)  (1) It is unlawful for a motor carrier to operate a
vehicle  from a new terminal, which is  subject to this
section  after submitting an inspection application to the
department, without the   , unless an  inspection
 described in subdivision (d) having been   is
 performed  on the terminal,  and a safety compliance
report  having been   is  issued to the
motor carrier  within the 25-month inspection period or
within 60 days immediately preceding the inspection period 
 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  this section   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
 this section   paragraph (1)  . This
certification shall be completed in writing by the contracted motor
carrier. The certification, or a copy  thereof  
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. 
   (h) 
    (e)  (1) An inspected terminal that receives an
unsatisfactory compliance rating shall be reinspected  by the
departmen   t  within 120 days after the issuance of
the unsatisfactory compliance rating. 
   (2) A terminal's first required reinspection under this
subdivision shall be without charge unless one or more of the
following is established:  
   (A) The motor carrier's operation presented an imminent danger to
public safety.  
   (B) The motor carrier was not in compliance with the requirement
to enroll all drivers in the pull notice program pursuant to Section
1808.1.  
   (C) The motor carrier failed to provide all required records and
vehicles for a consolidated inspection pursuant to subdivision (b).
 
   (3) If the unsatisfactory rating was assigned for any of the
reasons set forth in paragraph (2), the carrier shall submit the
required fee as provided in paragraph (4).  
   (4) Applications for reinspection pursuant to paragraph (3) or for
second and subsequent consecutive reinspections under this
subdivision shall be accompanied by the fee specified in paragraph
(2) of subdivision (e) and shall be filed within 60 days of issuance
of the unsatisfactory compliance rating. The reinspection fee is
nonrefundable.  
   (5) 
    (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. 

   (i) It is the intent of the Legislature that the department make
its best efforts to inspect terminals within the resources provided.
In the interest of the state, the Commissioner of the California
Highway Patrol may extend for a period, not to exceed six months, the
inspection terms beginning prior to July 1, 1990.  

   (j) Except as provided in paragraph (5), to encourage motor
carriers to attain continuous satisfactory compliance ratings, the
department may establish and implement an incentive program
consisting of the following:  
   (1) After the second consecutive satisfactory compliance rating
assigned to a motor carrier terminal as a result of an inspection
conducted pursuant to subdivision (d), and after each consecutive
satisfactory compliance rating thereafter, an appropriate
certificate, denoting the number of consecutive satisfactory ratings,
shall be awarded to the terminal, unless the terminal has received
an unsatisfactory compliance rating as a result of an inspection
conducted in the interim between the consecutive inspections
conducted under subdivision (d), or the motor carrier is rated
unsatisfactory by the department following a controlled substances
and alcohol testing program inspection. The certificate authorized
under this paragraph shall not be awarded for performance in the
administrative review authorized under paragraph (2). However, the
certificate shall include a reference to any administrative reviews
conducted during the period of consecutive satisfactory compliance
ratings.  
   (2) Unless the department's evaluation of the motor carrier's
safety record indicates a declining level of compliance, a terminal
that has attained two consecutive satisfactory compliance ratings
assigned following inspections conducted pursuant to subdivision (d)
is eligible for an administrative review in lieu of the next required
inspection, unless the terminal has received an unsatisfactory
compliance rating as a result of an inspection conducted in the
interim between the consecutive inspections conducted under
subdivision (d). An administrative review shall consist of all of the
following:  
   (A) A signed request by a terminal management representative
requesting the administrative review in lieu of the required
inspection containing a promise to continue to maintain a
satisfactory level of compliance for the next 25-month inspection
term.  
   (B) A review with a terminal management representative of the
carrier's record as contained in the department's files. If a
terminal has been authorized a second consecutive administrative
review, the review required under this subparagraph is optional, and
may be omitted at the carrier's request.  
   (C) Absent any cogent reasons to the contrary, upon completion of
the requirements of subparagraphs (A) and (B), the safety compliance
rating assigned during the last required inspection shall be extended
for 25 months.  
   (3) Not more than two administrative reviews may be conducted
consecutively. At the completion of the 25-month inspection term
following a second administrative review, a terminal inspection shall
be conducted pursuant to subdivision (d). If this inspection results
in a satisfactory compliance rating, the terminal shall again be
eligible for an administrative review in lieu of the next required
inspection. If the succession of satisfactory ratings is interrupted
by a rating of other than satisfactory, irrespective of the reason
for the inspection, the terminal shall again attain two consecutive
satisfactory ratings to become eligible for an administrative review.
 
   (4) As a condition for receiving the administrative reviews
authorized under this subdivision in lieu of inspections, and in
order to ensure that compliance levels remain satisfactory, the motor
carrier shall agree to accept random, unannounced inspections by the
department.  
   (5) Notwithstanding paragraphs (1) to (4), inclusive, a motor
carrier of hazardous materials shall not be granted administrative
review pursuant to this subdivision in lieu of a terminal inspection
pursuant to subdivision (d) at any terminal from which hazardous
materials carrying vehicles identified by paragraph (3) of
subdivision (d) are
operated.  
   (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. 

   (k) 
    (g)  This section shall be known and may be cited as the
 Biennial   Basic  Inspection of Terminals
 Program   program  or BIT  program
 .
   SEC. 4.    Section 34505.5 of the   Vehicle
Code   is repealed.  
   34505.5.  (a) Every motor carrier operating any vehicle described
in subdivision (a), (b), (e), (f), or (g) of Section 34500, except
those vehicles exempted under Section 34501.12, shall, as a part of
the systematic inspection, maintenance, and lubrication services
required of all motor carriers, require the vehicle or vehicles for
which it is responsible pursuant to Section 34501.12 to be inspected
at least every 90 days, or more often if necessary to ensure safe
operation. Vehicles which are out of service for periods greater than
90 calendar days are not required to be inspected at 90-day
intervals if they are inspected before operation on the highway. This
inspection shall include, but not be limited to, all of the
following:
   (1) Brake adjustment.
   (2) Brake system components and leaks.
   (3) Steering and suspension systems.
   (4) Tires and wheels.
   (5) Vehicle connecting devices.
   (b) No vehicle subject to this section shall be operated on the
highway other than to a place of repair until all defects listed
during the inspection conducted pursuant to subdivision (a) have been
corrected and attested to by the signature of the motor carrier's
authorized representative.
   (c) Records of inspections conducted pursuant to subdivision (a)
shall be kept at the motor carrier's terminals, as designated in
accordance with Section 34501.12. The records shall be retained by
the motor carrier for two years, and shall be made available for
inspection upon request by any authorized employee of the department.
Each record shall include, but not be limited to, all of the
following:
   (1) Identification of the vehicle, including make, model, license
number, company vehicle number, or other means of positive
identification.
   (2) Date and nature of each inspection and any repair performed.
   (3) Signature of the motor carrier's authorized representative
attesting to the inspection and to the completion of all required
repairs.
   (d) Printouts of inspection and maintenance records maintained in
computer systems shall be accepted in lieu of signed inspection or
repair records if the printouts include the information required in
paragraphs (1) and (2) of subdivision (c).
   (e) Notwithstanding subdivisions (a) to (d), inclusive, records of
90-day inspections need not be retained in California for interstate
vehicles which are not physically based in California. However, when
these vehicles are present in California, they are subject to
inspection by the department. If the inspection results indicate
maintenance program deficiencies, the department may require the
motor carrier to produce the maintenance records or copies of those
records for inspection within 10 working days. 
   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  any   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. 
   (3) Failed to submit any application or pay any fee required by
subdivision (e) or (h) of Section 34501.12 within the timeframes set
forth in that section. 
   (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 
any   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. 
   (3) Failed to submit any application or pay any fee required by
subdivision (e) or (h) of Section 34501.12 within the timeframes set
forth in that section. 
   (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  or subdivision (e)
or (h) of Section 34501.12  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  required by
  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  pursuant to paragraph (4) of subdivision (a) of
Section 34501,  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 motor truck 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) Motor trucks or two-axle truck tractors, with a gross vehicle
weight rating of less than 26,001 pounds,  operated singly, or
 when used  solely  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.  
   34606.  The fee schedule set forth in Section 7236 of the Revenue
and Taxation Code shall be reviewed by the Department of Motor
Vehicles and may be lowered should revenue exceed the costs of the
Department of Motor Vehicles and the California Highway Patrol to
administer and enforce the provisions of this division. The
department shall also adjust the uniform business license tax fee by
the amounts as are necessary to produce an annual revenue that shall
not exceed the amount collected under Section 4304 of the Public
Utilities Code as it existed on June 30, 1996, for the period
beginning on July 1, 1995, and ending on June 30, 1996. 
   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  any   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  
pull-notice  system as required by Section 1808.1. 
   (3) Submit any application or pay any fee required by subdivision
(e) or (h) of Section 34501.12 within the timeframes set forth in
that section. 
   (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) A motor carrier whose motor carrier permit is suspended for
failure to submit any application or to pay any fee required by
Section 34501.12 shall present proof of having submitted that
application or have paid that fee to the Department of the California
Highway Patrol before applying for reinstatement of its motor
carrier permit.  
   (3) 
    (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,  or that the required application or fees
have been received by 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,  no
  a  hearing shall  not  be provided
 when   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  , or failure of the motor carrier to
submit an application or to pay fees required by Section 34501.12
 .
   (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  (f)   (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. 
  SECTION 1.    Section 4755 of the Vehicle Code is
amended to read:
   4755.  (a) The department shall refuse registration, or renewal or
transfer of registration, for any commercial motor vehicle subject
to Section 4000.6, if the owner or operator of the motor vehicle at
the time of the application has been cited for a violation,
pertaining to that vehicle, of Division 26 (commencing with Section
39000) of the Health and Safety Code or regulations of the State Air
Resources Board adopted pursuant to that division, until the
violation has been cleared, as determined by the State Air Resources
Board.
   (b) (1) The department shall refuse registration for any
commercial motor vehicle subject to Section 4000.6 that is of a 1996
or older model year with a gross vehicle weight rating of more than
26,000 pounds.
   (2) Paragraph (1) does not apply to any construction truck for
which the State Air Resources Board has issued an extension pursuant
to its regulation to Reduce Emissions of Diesel Particulate Matter,
Oxides of Nitrogen and Other Criteria Pollutants, from In-Use
Heavy-Duty Diesel-Fueled Vehicles (Section 2025 of Title 13 of the
California Code of Regulations) and for which the owner presents
sufficient evidence, as determined by the department, of this
extension.
   (3) Paragraph (1) does not apply to a commercial motor vehicle
registered in California prior to January 1, 2012, if the commercial
motor vehicle is continuously registered pursuant to Section 9400.1
or 9407 on and after January 1, 2012, or is certified nonoperational
pursuant to Section 4604 after January 1, 2012. 
                         
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