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). 





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          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  




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            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  




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                 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  




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            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.