BILL NUMBER: AB 2858	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 15, 2004
	AMENDED IN ASSEMBLY  MAY 13, 2004
	AMENDED IN ASSEMBLY  APRIL 22, 2004

INTRODUCED BY   Assembly Member Ridley-Thomas

                        FEBRUARY 20, 2004

   An act to amend Section 5374 of, and to add Section 5384.7 to, the
Public Utilities Code, relating to charter-party carriers of
passengers.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 2858, as amended, Ridley-Thomas.  Charter-party carriers of
passengers:  drivers and key employees:  background checks.
   The Transportation Security Administration of the United States
Department of Transportation, administered by the  Under
Secretary   Undersecretary  of Transportation for
Security, is responsible for carrying out measures to ensure aviation
security, including hiring, training, and retention of personnel for
the security screening of passengers and baggage and conducting
background checks for individuals with access to secure areas of
airports regularly serving an air carrier holding a certificate
issued by the Secretary of Transportation.  Individuals with
specified criminal backgrounds or other factors as determined by the
 Under Secretary   Undersecretary , are
disqualified from employment with an air carrier or airport operator,
if they will have access to secured areas.  The  Under
Secretary   Undersecretary  is required to adopt
measures to improve secured-area access control, including working
with airport operators to strengthen access control points in secured
areas, including air traffic control operations areas, maintenance
areas, crew lounges, baggage handling areas, concessions, and
catering delivery areas.
   The California Constitution establishes the Public Utilities
Commission, with jurisdiction over all public utilities and
authorizes the Legislature, unlimited by the other provisions of the
Constitution, to confer additional authority and jurisdiction upon
the commission that is cognate and germane to the regulation of
public utilities.  Charter-party carriers of passengers are subject
to the jurisdiction and control of the commission under the Passenger
Charter-Party Carriers' Act.  The act requires a charter-party
carrier of passengers to obtain from the commission a certificate
that public convenience and necessity require the operation, except
that certain specific transportation services may be conducted under
authority of a permit issued by the commission.  The act prohibits
the commission from issuing or renewing a permit unless the applicant
has met specified requirements.
   This bill would require the commission to adopt regulations
establishing standards and procedures to investigate the criminal
background of candidates seeking certificates for employment as
drivers or key employees, as defined, with charter-party carriers of
passengers that provide passenger transportation to  and
  or  from airports  or railroad terminals
serving passenger trains  .  The bill would require the
commission to restrict a charter-party carrier of passengers to
employment of individuals approved for that employment by the
commission, based on successful completion of the criminal background
investigation.  The bill would impose civil penalties for a
violation of that employment restriction.  The bill would require the
commission to issue an identification credential to each applicant
that successfully completes that criminal background investigation
process and would require that all drivers employed by a
charter-party carrier of passengers carry the identification
credential at all times on airport property.  The bill would impose
civil penalties for a failure to produce the credential at the
request of airport law enforcement officers.  Repeated violations
would be grounds for revocation of the carrier's permit.  The bill
would require the commission to provide for a fee to be charged of
the charter-party carrier of passengers and collected by the
commission, sufficient to cover certain related costs.
   The bill would prohibit the commission from issuing or renewing a
permit for a charter-party carrier applicant providing transportation
to  and   or  from airports  or
railroad terminals serving passenger trains  unless it certifies
its drivers have successfully completed a criminal history
background check and have been issued an identification credential.
   The bill would prohibit employees and agents of a charter-party
carrier from communicating to any other person any information
related to the disqualification of a driver or key employee, and
would authorize a person disqualified from employment pursuant to the
provisions of the bill to request a hearing by the commission to
 challenge the accuracy of the criminal background
investigation   present evidence of rehabilitation and
in support of employment  .  
   The bill would provide that persons endorsed or certified as
drivers of school pupil activity buses are deemed to meet the bill's
requirements for entry into an airport or railroad terminal.  The
bill would require the Department of Motor Vehicles to notify the
commission whenever the department determines that the holder of such
an endorsement has a violation or conviction warranting suspension
or revocation of the endorsement or certificate. 
   A violation of the act or of an order or other requirement of the
commission in enforcing that act is a crime.
   Because the provisions of this bill would be a part of the act and
a violation of the bill's provisions or of an order or other
requirement of the commission implementing those provisions would be
a crime, the bill would impose a state-mandated local program by
creating new crimes.
  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 bill would become operative on July 1, 2005. 
   Vote:  majority.  Appropriation:  no.  Fiscal committee:  yes.
State-mandated local program:  yes.


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


  SECTION 1.  It is the intent of the Legislature to reaffirm its
commitment to homeland security as it relates to charter-party
carriers of passengers and their employees who drive passengers to
and from airports.  The purpose of this act is to ensure that
procedures and regulations are in place consistent with the airport
security programs operated by airports in this state, to assure the
traveling public that drivers or key employees of privately engaged
carriers have been through security clearances, and to provide
uniformity in credentialing among charter-party carriers of
passengers.
  SEC. 2.  Section 5374 of the Public Utilities Code is amended to
read:
   5374.  (a) Before a permit is issued or renewed, the commission
shall require the applicant to establish reasonable fitness and
financial responsibility to initiate and conduct or continue to
conduct the proposed or existing transportation services.  The
commission shall not issue or renew a permit pursuant to this
chapter, unless the applicant meets all of the following
requirements:
   (1) It certifies on a form acceptable to the commission that the
applicant will maintain its vehicles in a safe operating condition
and in compliance with the Vehicle Code and with regulations
contained in Title 13 of the California Code of Regulations relative
to motor vehicle safety.
   (2) It provides for a mandatory controlled substance and alcohol
testing certification program as adopted by the commission pursuant
to Section 1032.1.
   (3) A charter-party carrier applicant providing transportation to
 and from airports   or from airports, or to or
from any railroad terminal serving passenger trains  , certifies
its drivers and key employees have successfully completed a criminal
history background check and have been issued an identification
credential in accordance with Section 5384.7.  For purposes of this
section, "key employees" mean the owner or partner of the
charter-party carrier or, if the carrier is a corporation, the
officers and directors of the corporation.
   (b) (1) Before a certificate is issued or renewed, the commission
shall require the applicant to establish reasonable fitness and
financial responsibility to initiate and conduct or continue to
conduct the proposed or existing transportation services.  The
commission shall not issue or renew a certificate pursuant to this
chapter, unless the applicant meets all of the following
requirements:
   (A) It is financially and organizationally capable of conducting
an operation that complies with the rules and regulations of the
Department of the California Highway Patrol governing highway safety.

   (B) It is committed to observing the hours of service regulations
of state and, where applicable, federal law, for all persons, whether
employees or subcarriers, operating vehicles in transportation for
compensation under the certificate.
   (C) It has a preventive maintenance program in effect for its
vehicles used in transportation for compensation that conforms to
regulations of the Department of the California Highway Patrol in
Title 13 of the California Code of Regulations.
   (D) It participates in a program to regularly check the driving
records of all persons, whether employees or subcarriers, operating
vehicles used in transportation for compensation requiring a class B
driver's license under the certificate.
   (E) It has a safety education and training program in effect for
all employees or subcarriers operating vehicles used in
transportation for compensation.
   (F) It will maintain its vehicles used in transportation for
compensation in a safe operating condition and in compliance with the
Vehicle Code and with regulations contained in Title 13 of the
California Code of Regulations relative to motor vehicle safety.
   (G) It has filed with the commission the certificate of workers'
compensation insurance coverage or statement required by Section
5378.1.
   (H) It has provided the commission an address of an office or
terminal where documents supporting the factual matters specified in
the showing required by this subdivision may be inspected by the
commission and the Department of the California Highway Patrol.
   (I) It provides for a mandatory controlled substance and alcohol
testing certification program as adopted by the commission pursuant
to Section 1032.1.
   (2) With respect to subparagraphs (B) and (F) of paragraph (1),
the commission may base a finding on a certification by the
commission that an applicant has filed, with the commission, a sworn
declaration of ability to comply and intent to comply.
   (c) In addition to the requirements in subdivision (b), class A
and class B charter-party carriers shall meet all other state and,
where applicable, federal regulations as prescribed.
   (d) The commission may delegate to its executive director or his
or her designee the authority to renew, or authorize the transfer of,
charter-party carrier permits or certificates and to make the
findings specified in subdivision (b) that are necessary to that
delegated authority.
  SEC. 3.  Section 5384.7 is added to the Public Utilities Code, to
read:
   5384.7.  (a) The commission shall adopt regulations, in accordance
with this section and Chapter 3.5 (commencing with Section 11340) of
Part 1 of Division 3 of Title 2 of the Government Code, to establish
standards and procedures to investigate the background of candidates
seeking certificates for employment as drivers or key employees with
charter-party carriers of passengers that provide passenger
transportation to  and from airports   or from
airports, or to or from any railroad terminal serving passenger
trains  .  These regulations shall direct the Carriers Branch of
the commission, which licenses charter-party carriers of passengers,
to use criminal history information to determine whether applicants
for employment as drivers or key employees have a conviction for a
qualifying felony crime that would disqualify them from being hired
as drivers or key employees because they would be a threat to the
safety of the public if employed as drivers or key employees of the
charter-party carrier.
   (b) The commission shall provide, by regulation, that a
fingerprint-based criminal background investigation be used to
determine past convictions for the following specified criminal acts
that disqualify the applicant for employment in this capacity:
   (1) Unlawful transportation of a hazardous material (49 U.S.C.
Sec.  46312).
   (2) Carrying a weapon or explosive aboard an aircraft (49 U.S.C.
Sec.  46505).
   (3) Unlawful entry into an aircraft or airport area that serves
air carriers or foreign air carriers contrary to established security
requirements (49 U.S.C. Sec. 46314).
   (4) Destruction of an aircraft or aircraft facility (18 U.S.C.
Sec. 32).
   (5) Violence at international airports (18 U.S.C. Sec. 37).
   (6) Unlawful possession, use, sale, distribution, or manufacture
of an explosive, incendiary device, or assault weapon.
   (7) Felony arson.
   (8) Hate crime, as described in paragraph (2) of subdivision (b)
of Section 628.1 of the Penal Code, including, but not limited to,
offenses in Title 11.6 (commencing with Section 422.6) of Part 1 of
the Penal Code.
   (9) Conspiracy or attempt to commit any of the criminal acts
listed in paragraphs (1) to (8), inclusive.  
   (c) The commission shall also require, by regulation, that the
criminal background investigation be used to determine the existence
of any outstanding felony warrants for the arrest of the applicant
for employment.  If the criminal background investigation reveals one
or more felony warrants, the commission shall notify the appropriate
law enforcement agency of the application.
   (d)  
   (c)  The commission shall ensure, by regulation, compliance
with Section 50.12 of Title 28 of the Code of Federal Regulations as
it exists on January 1, 2003, with regard to records of the Federal
Bureau of Investigation, and provide similar requirements with regard
to state records.  
   (e)  
   (d)  The commission shall require, by regulation, that a
charter-party carrier of passengers may only employ an individual as
a driver of passengers to or from airports , or to or from any
railroad terminal serving passenger trains  or as a key employee
if that individual has been approved for that employment by the
commission, based on successful completion of the criminal background
investigation.  This requirement shall apply retroactively to
drivers and key employees employed on or after January 1, 2003, and
to all future applicants.  Employment of individuals not approved as
drivers or key employees by a charter-party carrier of passengers
shall constitute a violation of the regulations and subject the
carrier to civil penalties not to exceed two thousand dollars
($2,000) per incident.  Repeated violations of this nature shall be
grounds for revocation of the carrier's permit.
   While a criminal background investigation is pending, a driver or
key employee may be employed by the carrier.  This section does not
prohibit a charter-party carrier from employing a driver who is
disqualified pursuant to this article from being employed by the
carrier in a capacity that does not involve driving passengers to
 and   or  from the airport.  A
charter-party carrier subject to this article shall inform an
applicant for employment as a driver or key employee, both on the
employment application and through oral communication, of the
requirements of this chapter and the consequences that may occur if
the driver or key employee is disqualified from employment.  If the
charter-party carrier is a subcarrier that does not employ any
drivers other than the holder of the permit to operate as a
charter-party carrier, the subcarrier shall be treated as an employee
of the parent carrier for the purposes of complying with the
criminal background check requirements of this section and Section
5374.  
   (f)  
   (e)  The commission shall require, by regulation, that
charter-party carriers of passengers require applicants who are
offered employment as a driver of a motor vehicle providing passenger
transportation to  and from airports   or from
airports, or to or from any railroad terminal serving passenger
trains,  or as a key employee, to submit fingerprints and other
pertinent information, as required by the regulations, to the
commission for the purpose of obtaining criminal background
information.  
   (g) The commission shall transmit the fingerprints to the
Department of Justice.  The Department of Justice shall conduct the
check, and forward the request for federal level criminal offender
record information to the Federal Bureau of Investigation.  The
Department of Justice shall provide the following information to the
commission:
   (1) Every conviction rendered against the applicant.
   (2) Every arrest for an offense for which the Department of
Justice has determined that the applicant is presently awaiting
trial, or whether the applicant is incarcerated or has been released
on bail or on his or her own recognizance pending trial.
   (3) Every warrant for the arrest of the applicant.  
   (f) The commission shall require an applicant who is described in
subdivision (e) to have his or her fingerprint images captured and
related information provided for submission to the Department of
Justice for the purpose of obtaining information as to the existence
and nature of any record of state or federal convictions and state or
federal arrests for which the Department of Justice establishes that
the applicant was released on bail or on his or her own recognizance
pending trial.  Requests for federal level criminal offender record
information received by the Department of Justice pursuant to this
section shall be forwarded to the Federal Bureau of Investigation by
the Department of Justice.
   (1) The Department of Justice shall respond to the commission with
information pursuant to subdivision (p) of Section 11105 of the
Penal Code.
   (2) The Department of Justice shall assess a fee sufficient to
cover all of its processing costs generated from or associated with
the implementation of this section.
   (3) The commission shall request, from the Department of Justice,
subsequent arrest notification as provided by Section 11105.2 of the
Penal Code, for all applicants described in subdivision (e). 

   (h)  
   (g)  The commission shall review all information received
from the charter-party carrier of passengers and the Department of
Justice pursuant to the regulations.  All information received by the
commission shall be held as confidential, except that if employment
is to be denied based on criminal history information, the commission
shall notify the charter-party carrier of passengers of the
applicant's disqualification, and provide a copy of the history and
an explanation of the denial to the applicant.  Employees and agents
of a charter-party carrier of passengers are prohibited from
communicating to any other person any information related to the
disqualification of a driver or key employee.  A person who is
disqualified pursuant to this section may request a hearing by the
commission to  challenge the accuracy of the criminal
background investigation and to present   present 
evidence that, notwithstanding the grounds for disqualification, he
or she is fully rehabilitated and should be permitted employment.
The commission may grant any relief it deems appropriate, including
restoration of the right of employment.  
   (i)  
   (h)  The commission shall provide, by regulation, that an
identification credential be issued to each applicant that
successfully completes that criminal background investigation
process.  
   (j)  
   (i)  The commission shall provide, by regulation, that all
drivers and key employees employed by a charter-party carrier of
passengers shall carry the identification credential at all times on
airport property, and shall produce the credential for inspection
upon request of airport law enforcement officers.  Failure to produce
the credential at the request of airport law enforcement officers
shall constitute a violation of the regulations and subject the
driver and the carrier to civil penalties not to exceed five hundred
dollars ($500) per incident.  Repeated violations of this nature
shall be grounds for revocation of the carrier's permit.  
   (k)  
   (j)  The commission shall provide, by regulation, for a fee
to be charged of the charter-party carrier of passengers, to be
collected by the commission, sufficient to cover the costs of the
commission  and Department of Justice  for
processing fingerprint records, reviewing documents, and issuing
identification credentials pursuant to this section.   The fee
shall include any fee assessed by the Department of Justice pursuant
to this section.   An employee or applicant for employment may
not be charged a fee for the performance of the criminal background
check required by this section  , other than a fee charged for
the capture of the fingerprint image and obtaining the related
information  .  
   (l)  
   (k) Any person with an endorsement or certificate authorizing
operation of a school pupil activity bus pursuant to Section 13369 of
the Vehicle Code shall be deemed to have met the requirements of
this section for entry into an airport or railroad terminal.  The
Department of Motor Vehicles shall notify the commission whenever it
determines that a disqualifying violation or conviction exists under
Section 13370 of the Vehicle Code to suspend or revoke an endorsement
or certificate for operation of a school pupil activity bus. The
notice shall identify the individual and the cause for suspension or
revocation.
   (l)  For the purposes of this section, "key employees" mean
the owner or partner of the charter-party carrier or, if the carrier
is a corporation, the officers and directors of the corporation.
  SEC. 4.  No reimbursement is required by this act pursuant to
Section 6 of Article XIII B 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 XIII B of the California
Constitution.   
  SEC. 5.  This act shall become operative on July 1, 2005.