AB 612, as amended, Nazarian. Charter-party carriers of passengers: permit requirements: drivers.
Passenger Charter-party Carriers’ Act, with certain exceptions, prohibits a charter-party carrier of passengers from engaging in transportation services subject to regulation by the Public Utilities Commission without obtaining a specified certificate or permit, as appropriate, from the commission, subject to various requirements. The act defines a charter-party carrier of passengers as every person engaged in the transportation of persons by motor vehicle for compensation, whether in common or contract carriage, over any public highway in this state and includes any person, corporation, or other entity engaged in the provision of a hired driver service when a rented motor vehicle is being operated by a hired driver.
This bill would prohibit the commission from issuing or renewing a permit or certificate to a charter-party carrier of passengers unless the applicant, in addition to existing requirements, participates in the Department of Motor Vehicles
begin delete Employer Pull Notice Programend delete and provides for mandatory Department of Justice background checks of every driver who is either employed by or under contract to the begin delete applicant, as specifiedend delete.
The bill would require a driver of a charter-party carrier to submit to the Department of Justice fingerprint images and related information for the purpose of obtaining information as to the existence and content of state convictions and state arrests, as specified. The bill would require the department to charge a fee sufficient to cover the cost of processing the request described in these provisions.
The bill would provide that its provisions apply to all charter-party carriers regardless of class or category created by the commission.
(2) Because a violation of these provisions would be a crime, the bill would impose a state-mandated local program.
(3) 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.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.
The people of the State of California do enact as follows:
It is the intent of the Legislature to give direction
2to the Public Utilities Commission, as it establishes rules and
3regulations for all charter-party carriers, to investigate and
4implement proper identifying decals and trade dress for
5charter-party carriers in order to assist law enforcement in enforcing
P3 1those regulations and the law established under the Passenger
2Charter-party Carriers’ Act.
Section 5374 of the Public Utilities Code is
5amended to read:
(a) (1) Before a permit or certificate is issued or
7renewed, the commission shall require the applicant to establish
8reasonable fitness and financial responsibility to initiate and
9conduct or continue to conduct the proposed or existing
10transportation services. The commission shall not issue or renew
11a permit or certificate pursuant to this chapter unless the applicant
12meets all of the following requirements:
13(A) It is financially and organizationally capable of conducting
14an operation that complies with the rules and regulations of the
15Department of the California Highway Patrol governing highway
17(B) It is committed to observing the hours of service regulations
18of state and, where applicable, federal law, for all persons, whether
19employees or subcarriers, operating vehicles in transportation for
20compensation under the certificate.
21(C) It has a preventive maintenance program in effect for its
22vehicles used in transportation for compensation that conforms to
23regulations of the Department of the California Highway Patrol
24in Title 13 of the California Code of Regulations.
25(D) It participates in the
begin delete Department of Motor Vehicle’s
to regularly check the driving
26Employer Pull Notice Programend delete
28records of all persons, whether employees or subcarriers, operating
29vehicles used in transportation for compensation.
30(E) It has a safety education and training program in effect for
31all employees or subcarriers operating vehicles used in
32transportation for compensation.
33(F) It will maintain its vehicles used in transportation for
34compensation in a safe operating condition and in compliance with
35the Vehicle Code and with regulations contained in Title 13 of the
36California Code of Regulations relative to motor vehicle safety.
37(G) It has filed with the commission the certificate of workers’
38compensation insurance coverage or statement required by Section
P4 1(H) It has provided the commission an address of an office or
2terminal where documents supporting the factual matters specified
3in the showing required by this subdivision may be inspected by
4the commission and the Department of the California Highway
6(I) It provides for a mandatory controlled substance and alcohol
7testing certification program as adopted by the commission
8pursuant to Section 1032.1.
9(J) Subparagraphs (C), (F), and (H) do not apply to a
10charter-party carrier of passengers engaged in the provision of a
11hired driver service when a rented motor vehicle is being operated
12by the hired driver.
13(K) It provides for mandatory Department of
14background checks to check the criminal history of any driver who
15is either under contract to, or employed by, the applicant to operate
16a vehicle used in transportation for compensation pursuant to the
18(i) A driver, as defined in Section 305 of the Vehicle Code, of
19a charter-party carrier, as defined in Section 5360, shall submit to
20the Department of Justice fingerprint images and related
21information required by the department for the purpose of obtaining
22information as to the existence and content of state convictions
23and state arrests and also information as to the existence and
24content of a record of a state arrest for which the department
25establishes that the person is free on bail or on his or her
26recognizance pending trial or appeal.
27(ii) The department shall provide a state response to the
28charter-party carrier pursuant to paragraph (1) of subdivision (p)
29of Section 11105 of the Penal Code.
30(iii) The charter-party carrier shall request from the Department
31of Justice subsequent notification service, as provided pursuant to
32Section 11105.2 of the Penal Code, for persons described in clause
34(iv) The department shall charge a fee sufficient to cover the
35cost of processing the request described in this subparagraph.
36(v) A driver shall be denied employment or have his or her
37contract voided if he or she is required by any law to register as a
38sex offender or has been convicted of any felony involving
40any type of sexual offense; the manufacture, possession for sale,
P5 1transportation, or distribution of narcotics, controlled substances,
2or addictive or dangerous drugs; force, violence, threat, or
3intimidation against persons; kidnapping; forgery, fraud, larceny,
4extortion, burglary, robbery, or theft; credit card fraud; possession
5of a firearm or dangerous weapon; resisting or obstructing a peace
6officer, public officer, or emergency medical technician; or use of
7another vehicle for hire in the commission of a felony. Equivalent
8out-of-state violations shall be considered.
9(L) Subparagraphs (D), (I), and (K) apply to all charter-party
10carriers regardless of class or category created by the commission.
23 With respect to subparagraphs (B) and (F) of paragraph (1),
24the commission may base a finding on a certification by the
25commission that an applicant has filed, with the commission, a
26sworn declaration of ability to comply and intent to comply.
28 The commission may require, as a precondition to the
29issuance of a permit or certificate, the procurement of a
30performance bond sufficient to facilitate the collection of fines,
31penalties, and restitution related to enforcement actions that can
32be taken against the applicant.
33(b) In addition to the requirements in subdivision (a),
34charter-party carriers shall meet all other state and, where
35applicable, federal regulations as prescribed.
36(c) The commission may delegate to its executive director or
37that executive director’s designee the authority to issue, renew, or
38authorize the transfer of, charter-party carrier permits or certificates
39and to make the findings specified in subdivision (a) that are
40necessary to that delegated authority.
(a) The prospective employer of a driver who drives
3a vehicle specified in subdivision (k) shall obtain a report showing
4the driver’s current public record as recorded by the department.
5For purposes of this subdivision, a report is current if it was issued
6less than 30 days prior to the date the employer employs the driver.
7The report shall be reviewed, signed, and dated by the employer
8and maintained at the employer’s place of business until receipt
9of the pull-notice system report pursuant to subdivisions (b) and
10(c). These reports shall be presented upon request to an authorized
11representative of the Department of the California Highway Patrol
12during regular business hours.
13(b) The employer of a driver who drives a vehicle specified in
14subdivision (k) shall participate in a pull-notice system, which is
15a process for the purpose of providing the employer with a report
16showing the driver’s current public record as recorded by the
17department, and any subsequent convictions, failures to appear,
18accidents, driver’s license suspensions, driver’s license revocations,
19or any other actions taken against the driving privilege or
20certificate, added to the driver’s record while the employer’s
21notification request remains valid and uncanceled. As used in this
22section, participation in the pull-notice system means obtaining a
23requester code and enrolling all employed drivers who drive a
24vehicle specified in subdivision (k) under that requester code.
25(c) The employer of a driver of a vehicle specified in subdivision
26(k) shall, additionally, obtain a periodic report from the department
27at least every 12 months. The employer shall verify that each
28employee’s driver’s license has not been suspended or revoked,
29the employee’s traffic violation point count, and whether the
30employee has been convicted of a violation of Section 23152 or
3123153. The report shall be signed and dated by the employer and
32maintained at the employer’s principal place of business. The
33report shall be presented upon demand to an authorized
34representative of the Department of the California Highway Patrol
35during regular business hours.
36(d) Upon the termination of a driver’s employment, the employer
37shall notify the department to discontinue the driver’s enrollment
38in the pull-notice system.
39(e) For the purposes of the pull-notice system and periodic report
40process required by subdivisions (b) and (c), an owner, other than
P7 1an owner-operator as defined in Section 34624, and an employer
2who drives a vehicle described in subdivision (k) shall be enrolled
3as if he or she were an employee. A family member and a volunteer
4 driver who drives a vehicle described in subdivision (k) shall also
5be enrolled as if he or she were an employee.
6(f) An employer who, after receiving a driving record pursuant
7to this section, employs or continues to employ as a driver a person
8against whom a disqualifying action has been taken regarding his
9or her driving privilege or required driver’s certificate, is guilty of
10a public offense, and upon conviction thereof, shall be punished
11by confinement in a county jail for not more than six months, by
12a fine of not more than one thousand dollars ($1,000), or by both
13that confinement and fine.
14(g) As part of its inspection of bus maintenance facilities and
15terminals required at least once every 13 months pursuant to
16subdivision (c) of Section 34501, the Department of the California
17Highway Patrol shall determine whether each transit operator, as
18defined in Section 99210 of the Public Utilities Code, is then in
19compliance with this section and Section 12804.6, and shall certify
20each operator found to be in compliance. Funds shall not be
21allocated pursuant to Chapter 4 (commencing with Section 99200)
22of Part 11 of Division 10 of the Public Utilities Code to a transit
23operator that the Department of the California Highway Patrol has
24not certified pursuant to this section.
25(h) (1) A request to participate in the pull-notice system
26established by this section shall be accompanied by a fee
27determined by the department to be sufficient to defray the entire
28actual cost to the department for the notification service. For the
29receipt of subsequent reports, the employer shall also be charged
30a fee established by the department pursuant to Section 1811. An
31employer who qualifies pursuant to Section 1812 shall be exempt
32from any fee required pursuant to this section. Failure to pay the
33fee shall result in automatic cancellation of the employer’s
34participation in the notification services.
35(2) A regularly organized fire department, having official
36recognition of the city, county, city and county, or district in which
37the department is located, shall participate in the pull-notice
38program and shall not be subject to the fee established pursuant
39to this subdivision.
P8 1(3) The Board of Pilot Commissioners for Monterey Bay and
2the Bays of San Francisco, San Pablo, and Suisun, and its port
3agent shall participate in the pull-notice system established by this
4section, subject to Section 1178.5 of the Harbors and Navigation
5Code, and shall not be subject to the fees established pursuant to
7(i) The department, as soon as feasible, may establish an
8automatic procedure to provide the periodic reports to an employer
9by mail or via an electronic delivery method, as required by
10subdivision (c), on a regular basis without the need for individual
12(j) (1) The employer of a driver who is employed as a casual
13driver is not required to enter that driver’s name in the pull-notice
14system, as otherwise required by subdivision (a). However, the
15employer of a casual driver shall be in possession of a report of
16the driver’s current public record as recorded by the department,
17prior to allowing a casual driver to drive a vehicle specified in
18subdivision (k). A report is current if it was issued less than six
19months prior to the date the employer employs the driver.
20(2) For the purposes of this subdivision, a driver is employed
21as a casual driver when the employer has employed the driver less
22than 30 days during the preceding six months. “Casual driver”
23does not include a driver who operates a vehicle that requires a
24passenger transportation endorsement.
25(k) This section applies to a vehicle for the operation of which
26the driver is required to have a class A or class B driver’s license,
27a class C license with a hazardous materials endorsement, a class
28C license issued pursuant to Section 12814.7, or a certificate issued
29pursuant to Section 12517, 12519, 12520, 12523, 12523.5, or
begin delete orend delete
a passenger vehicle having a seating capacity of not
31more than 10 persons, including the driver, operated for
32compensation by a
begin delete charter-party carrier of passengers orend delete passenger
33stage corporation pursuant to a certificate of public convenience
34and necessity or a permit issued by the Public Utilities
begin deleteThis end delete
4 section shall not be construed to change the definition
5of “employer,” “employee,” or “independent contractor” for any
7(m) A motor carrier who contracts with a person to drive a
8vehicle described in subdivision (k) that is owned by, or leased to,
9that motor carrier, shall be subject to subdivisions (a), (b), (c), (d),
10(f), (j), (k), and (l) and the employer obligations in those
12(n) Reports issued pursuant to this section, but only those for a
13driver of a taxicab engaged in transportation services as described
14in subdivision (a) of Section 53075.5 of the Government Code,
15shall be presented upon request, during regular business hours, to
16an authorized representative of the administrative agency
17responsible for issuing permits to taxicab transportation services
18pursuant to Section 53075.5 of the Government Code.
No reimbursement is required by this act pursuant to
20Section 6 of Article XIII B of the California Constitution because
21the only costs that may be incurred by a local agency or school
22district will be incurred because this act creates a new crime or
23infraction, eliminates a crime or infraction, or changes the penalty
24for a crime or infraction, within the meaning of Section 17556 of
25the Government Code, or changes the definition of a crime within
26the meaning of Section 6 of Article XIII B of the California