BILL ANALYSIS SENATE TRANSPORTATION & HOUSING COMMITTEE BILL NO: ab 3011 SENATOR ALAN LOWENTHAL, CHAIRMAN AUTHOR: benoit VERSION: 6/19/06 Analysis by: Carrie Cornwell FISCAL: yes Hearing date: June 27, 2006 SUBJECT: Commercial motor carriers DESCRIPTION: This bill conforms state regulation of intrastate and interstate commercial trucks and buses (motor carriers) to the requirements of the Federal Motor Carrier Safety Administration and designates the California Highway Patrol (CHP) to enforce these provisions in California. ANALYSIS: The federal government established the Federal Motor Carrier Safety Administration (FMCSA) as a separate entity within the U.S. Department of Transportation on January 1, 2000 and has, as its primary mission, the reduction of crashes, injuries, and fatalities involving large trucks and buses. The FMCSA administers several programs to achieve its mission, including the Motor Carrier Safety Assistance Program (MCSAP), a federal grant program that provides states with financial assistance to enforce federal motor carrier safety regulations. In 2002, FMCSA adopted new regulations, Title 49 of the Code of Federal Regulations (Title 49), and gave states three years to conform to those regulations or risk loss of federal funds. Because California has yet to conform to regulations that FMCSA adopted in 2002, certain federal requirements for interstate motor carriers are unenforceable in California. These requirements include requiring financial responsibility and operating authority for commercial vehicles entering California from foreign jurisdictions, including from other states and from Mexico under the North American Free Trade Agreement (NAFTA). AB 3011 (BENOIT) Page 2 In addition, FSMCA mandated in its regulations that all states adopt federal load securement criteria for motor carriers engaged in interstate commerce. If California fails to comply, this could potentially result in the loss of MCSAP funds, which directly support CHP's commercial vehicle enforcement program. In addition to federal regulations, state law provides additional regulation of motor carriers. Specifically, the California Vehicle Code: 1) Makes it unlawful to fail to comply with a lawful out-of-service order issued by a peace officer when the officer is in uniform and performing his or her duties. 2) Prohibits a foreign motor carrier or foreign private motor carrier from operating without a certificate of registration in the vehicle, operating beyond the limitations of the certificate, or refusing to show the certificate upon request by a peace officer. 3) Authorizes the Department of Motor Vehicles (DMV) to suspend, cancel, or revoke the registration of a vehicle or certificate of ownership, registration card, license plate, or permit under specified circumstances. 4) Requires a driver and owner of a motor vehicle to be able to establish financial responsibility. 5) Authorizes a peace officer to impound a vehicle and its cargo under specified circumstances. 6) Requires CHP to regulate the safe operation of vehicles. 7) Requires certain vehicles to prominently display a distinctive identifying symbol. This bill conforms California law to the provisions of Title 49 of the Code of Federal Regulations (Title 49). Specifically, the bill: 1)Makes it unlawful to fail or refuse to comply with an out-of-service order issued by a an authorized CHP employee or commercial vehicle inspector, of any state, any province of Canada, or the federal government of the United States, Canada, or Mexico, when that peace officer or commercial AB 3011 (BENOIT) Page 3 vehicle inspector is in uniform and performing duties in compliance with state or federal law. 2)Strikes all obsolete references to the Interstate Commerce Commission (ICC) and replaces it with the United States Department of Transportation (USDOT). 3)Prohibits a motor carrier, required to be registered with USDOT pursuant to federal regulations, from providing point-to-point transportation services for goods other than international cargo; operating in this state without the required registration or beyond the limitations or restrictions specified in its registration; and from operating without the required operating authority. Violation of these provisions is subject to a $1,000 fine, and CHP may impound the vehicle and its cargo until the fine is paid or the citation is otherwise cleared. 4)Allows CHP to store or impound a vehicle and its cargo if the registrant or driver of the vehicle has failed to pay registration, regulatory, fuel permit, or other fees, or has an outstanding warrant in a county in the state. Once the owner of the vehicle pays impoundment charges, the vehicle shall be released. The bill permits the driver or owner of the vehicle to request a hearing to determine the validity of the seizure. 5)Requires a motor carrier granted permanent operating authority under Title 49 to be inspected every three months and to display a decal attesting to successful completion of the inspections for the first three years after receiving permanent operating authority. 6)Allows Department of Motor Vehicles (DMV) to suspend the registration of all vehicles in the name of a person, under any of the following circumstances: a) When the Secretary of the USDOT, or his or her designee issues a lawful out-of-service order pursuant to Title 49; b) When DMV suspends or revokes a motor carrier of property permit; or c) When the Public Utilities Commission (PUC) suspends or revokes operating authority or private AB 3011 (BENOIT) Page 4 registration. The registration of a vehicle shall remain suspended until DMV verifies a person's federal registration or operating authority, California private registration or operating authority, or motor carrier, or property permit is reissued. 7)Deletes use of the identifying number issued by the ICC as proof of evidence of financial responsibility. 8)Prohibits entry of a vehicle into the state that is from another country and does not have evidence of financial responsibility as required by Title 49. 9)Adds farm labor vehicles to the list of vehicles that CHP must regulate for safe operation. 10) States that DMV and USDOT, in addition to PUC, have authority over all motor carriers not specified in statute for matters relating to hours of service and logbooks of drivers. 11) Requires CHP to adopt rules and regulations to promote the safe operation of vehicles, including standards for safely securing cargo that are consistent with Title 49. The bill deletes CHP authority to adopt such cargo rules under existing law, but: a) Exempts and specifies loading requirements for a public utility company or a local public agency that provides electrical or telephone service, or to the Department of Transportation, when transporting poles; and b) Exempts farmers transporting his or her own hay upon a highway if the load is secured in a safe manner and it is incidental to his or her farming operation. 12) Requires vehicles engaged in intrastate commerce, rather than just interstate commerce, to display an identification number, as specified. COMMENTS: 1)Purpose . CHP is sponsoring this bill to bring California into substantial compliance with FMCSA requirements that pertain to AB 3011 (BENOIT) Page 5 securing cargo, out-of-service orders issued to trucking violators, registration, and financial responsibility. States are required to conform to these federal requirements or risk losing federal MCSAP funds. California's MCSAP allocation is $22 million. 2)Amendments . On page 8, line 1, of the bill delete "A driver and an owner" and restore existing law, which reads "Every driver and every owner." This provision of law requires all owners and all drivers of motor vehicles to be able to at all times have insurance. While the wording changes are minor and were inserted by Legislative Counsel as clean up, the staff to the Senate Insurance Committee expresses concern that they may have unintended consequences. For this reason, the author or committee may wish to restore existing law. The author has technical amendments to Section 2 of the bill to clarify that the prohibition on a motor carrier providing point-to-point transportation services for goods other than international cargo does not apply to a motor carrier granted authority to operate solely within a border commercial zone. Assembly Votes: Floor: 76 - 0 Appr: 17 - 0 Trans: 12 - 0 POSITIONS: (Communicated to the Committee before noon on Wednesday, June 21, 2006) SUPPORT: California Highway Patrol (sponsor) California Farm Bureau Federation City of Moreno Valley Teamsters OPPOSED: None received.