BILL NUMBER: AB 957	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Scott

                        FEBRUARY 25, 1999

   An act to amend Section 5285.6 of the Public Utilities Code, and
to amend Sections 34505.6 and 34623 of the Vehicle Code, relating to
vehicles, and making an appropriation therefor.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 957, as introduced, Scott.  Vehicles:  motor carriers of
property.
   (1) Existing law requires the Department of the California Highway
Patrol to inspect every motor carrier terminal under the biennial
inspection of terminals program, at least every 25 months, as
specified.  Existing law requires a motor carrier to schedule the
inspection with the department and to submit fees as specified.
Applications and fees for subsequent inspections are required to be
submitted, as specified, before the expiration of the motor carrier's
then current inspection term.
   Existing provisions of the Public Utilities Code require the
Public Utilities Commission, upon recommendation of the Department of
the California Highway Patrol, and after a hearing, to suspend a
household goods carrier's permit if the carrier has either (a) failed
to maintain any vehicle used in transportation for compensation in a
safe operating condition or to comply with the Vehicle Code or with
regulations relative to motor safety, if that failure is either
consistent failure or presents an imminent danger to public safety,
or (b) failed to enroll all drivers in the required pull-notice
system, as defined.
   This bill would add failure to submit any application or to pay
any fee required through the inspection program within the required
timeframes to the list of actions for which the Department of the
California Highway Patrol would recommend suspensions.
   (2) Existing provisions of the Vehicle Code require the Department
of the California Highway Patrol, for motor carrier's of property,
to recommend that the Department of Motor Vehicles suspend or revoke
the permit of a motor carrier of property, or for interstate
operators, to recommend to the federal Highway Administration Office
of Motor Carriers that appropriate administrative action be taken
against a carrier, when the carrier has either (a) failed to maintain
any pertinent vehicle in a safe operating condition or to comply
with regulations relative to motor carrier safety, as specified, or
(b) failed to enroll all drivers in a required pull-notice system, as
defined.
   This bill would add failure to submit any application or pay any
fees required through the inspection program within the required
timeframes to the list of actions for which the Department of the
California Highway Patrol would make those recommendations.  Because
a motor carrier of property whose permit has been suspended or
revoked under these provisions would have to pay a reinstatement fee
that is to be deposited into the Transportation Rate Fund, which is a
continuously appropriated fund, the bill would make an
appropriation.
   Vote:  majority.  Appropriation:  yes.  Fiscal committee:  yes.
State-mandated local program:  no.


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


  SECTION 1.  Section 5285.6 of the Public Utilities Code is amended
to read:
   5285.6.  (a)  (1)  Upon receipt of a written
recommendation from the Department of the California Highway Patrol
that the permit of a household goods carrier be suspended 
either (1) for failure   for any of the following, the
commission, pending a hearing in the matter pursuant to subdivision
(d), shall suspend the carrier's permit:  
   (A) Failure  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  relative to
motor carrier safety  , if that failure is either a
consistent failure or presents an imminent danger to public safety
 , or (2) for failure   .
   (B) Failure  to enroll all drivers in the pull notice system
as required by Section 1808.1 of the Vehicle Code  , the
commission shall, pending a hearing in the matter pursuant to
subdivision (d), suspend the carrier's permit.  The written
recommendation shall specifically indicate compliance with
subdivision (c)  . 
   (C) Failure to submit any application or pay any fee required by
subdivision (e) or (h) of Section 34501.12 of the Vehicle Code within
the timeframes set forth in that section.
   (2) The written recommendation shall specifically indicate
compliance with subdivision (c). 
   (b)  (1)  A carrier whose permit is suspended pursuant to
subdivision (a) may obtain a reinspection of its terminal and
vehicles by the  department   Department of the
California Highway Patrol  , by submitting a written request for
reinstatement to the commission and paying a reinstatement fee of
one hundred twenty-five dollars ($125).   The  
   (2) A carrier whose permit is suspended for failure to submit any
application or to pay any fee required by Section 34501.12 of the
Vehicle Code shall present proof of having submitted that application
or having paid that fee to the Department of the California Highway
Patrol before applying for reinstatement of that permit.  
   (3) The  commission shall deposit all reinstatement fees
collected pursuant to this subdivision in the Transportation Rate
Fund.  The commission shall then forward a request for reinspection
to the  department   Department of the
California Highway Patrol  which shall then perform a
reinspection within a reasonable time  or verify receipt of the
application or fee, or both the application and fee  .  The
commission shall reinstate a carrier's permit  that is 
suspended under subdivision (a) promptly upon receipt of a written
recommendation from the  department   Department
of the California Highway Patrol  that the carrier's safety
compliance has improved to the satisfaction of  the 
 that  department,  or that the required application or
fees have been received,  unless the permit is suspended for
another reason or has been revoked.
   (c) Before transmitting a recommendation pursuant to subdivision
(a) to the commission, the Department of the California Highway
Patrol shall notify the household goods carrier in writing of all of
the following:
   (1) That the  department   Department of the
California Highway Patrol  has determined that the carrier's
safety record  , or compliance with Section 1808.1 of, or
subdivision (e) or (h) of Section 34501.12 of, the Vehicle Code,
 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 or
revocation of the carrier's permit by the commission.
   (3) That the carrier may request a review of the determination by
the  department   Department of the California
Highway Patrol  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
  Department of the California Highway Patrol 
shall conduct and evaluate that review prior to transmitting any
notification to the commission pursuant to subdivision (a).
   (d) Whenever the commission suspends the permit of any household
goods carrier pursuant to subdivision (a), the commission shall
furnish the carrier written notice of the suspension and shall hold a
hearing within a reasonable time, not to exceed 21 days, after a
written request  therefor   for a hearing 
is filed with the commission, with a copy  thereof 
 of that written request  furnished to the Department of the
California Highway Patrol.  At the hearing, the carrier shall show
cause why the suspension should not be continued.  At the conclusion
of the hearing, the commission  may  , in addition
to any other penalty provided in this chapter,  may 
terminate the suspension, continue the suspension in effect, or
revoke the permit.  The commission may revoke the permit of any
household goods carrier suspended pursuant to subdivision (a) at any
time 90 days or more after its suspension if the commission has not
received a written recommendation for reinstatement from the 
department   Department of the California Highway
Patrol  and the  corporation   carrier
 has not filed a written request for a hearing with the
commission.
   (e) Notwithstanding subdivision (d), no hearing shall be
provided when the suspension of the permit is based solely upon the
failure of the household goods carrier to submit an application or to
pay fees required by Section 34501.12 of the Vehicle Code.
   (f)  If the commission, after a hearing, finds that a
household goods carrier has continued to operate as such a carrier
after its permit or permits have been suspended pursuant to
subdivision (a), the commission shall do one of the following:
   (1) Revoke the operating permit or permits of the carrier.
   (2) Impose upon the holder of the permit or permits a civil
penalty of not less than one thousand dollars ($1,000) nor more than
five thousand dollars ($5,000) for each day of unlawful operations.

  SEC. 2.  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  either of the following:  (1)
failed   any 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 Highway Administration
Office of Motor Carriers 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  relative to motor carrier
safety  , 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  or (2) failed
  .
   (2) Failed  to enroll all drivers in the pull notice system
as required by Section 1808.1  , the department shall
recommend that the Department of Motor Vehicles suspend or revoke the
carrier's motor carrier permit.  For interstate operators, the
department shall recommend to the federal Highway Administration
Office of Motor Carriers that appropriate administrative action be
taken against the carrier.  For purposes of this subdivision, 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
nonpayment of required fees is a consistent failure.  The department
shall retain a record, by operator, of every recommendation made
pursuant to this section  . 
   (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 operating any
vehicle described in subdivision (a), (b), (e), (f), (g), or (k) of
Section 34500 on a public highway has done  either of the
following:  (1) failed   any 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
Highway Administration Office of Motor Carriers 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  relative to
motor carrier safety  , 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
 or (2) failed   .
   (2) Failed  to enroll all drivers in the pull notice system
as required by Section 1808.1  , the department shall
recommend that the Public Utilities Commission deny, suspend, or
revoke the carrier's operating authority.  For interstate operators,
the department shall recommend to the Federal Highway Administration
Office of Motor Carriers that appropriate administrative action be
taken against the carrier.  For   .
   (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  subdivision  
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.  
   (c)  
   (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 Highway Administration Office
of Motor Carriers.
   (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).  
   (d)  
   (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  (c)  (d)
 .
  SEC. 3.  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  either (1) maintain  
do any 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  relative to motor carrier safety  , if
that failure is either a consistent failure or presents an imminent
danger to public safety  , or (2) enroll   .
   (2) Enroll  all drivers in the pull notice system as required
by Section 1808.1.   The  
   (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  department  may  , pending a
hearing in the matter pursuant to subdivision  (d) 
 (e)  ,  may  suspend a carrier's permit.  

   (c)  
   (d) (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 such
application or have paid that fee to the Department of the California
Highway Patrol before applying for reinstatement of its motor
carrier permit.   The  
   (3) 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.  
   (d)  
   (e)  Whenever the department suspends the permit of any
carrier pursuant to subdivision (b), 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  (c)   (d)
 .  
   (e)  
   (f)  Notwithstanding any other provision of this code, no
hearing shall be provided when 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  .

   (f)  
   (g)  No motor carrier of property shall 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.