BILL NUMBER: AB 957	AMENDED
	BILL TEXT

	AMENDED IN SENATE   JULY 7, 1999
	AMENDED IN SENATE   JUNE 22, 1999

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 amended, 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   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.
   (3) Existing provisions of the Vehicle Code prohibit a motor
carrier of property from operating a commercial motor vehicle on any
public highway in this state during any period its motor carrier of
property permit is suspended pursuant to specified existing law.
   This bill would prohibit a motor carrier of property whose motor
carrier permit is suspended pursuant to specified existing law, which
suspension is based wholly or in part on the failure of the motor
carrier to maintain any vehicle in safe operating condition, from
leasing, or otherwise allowing another motor carrier to operate the
vehicles of the carrier subject to the suspension, during the period
of the suspension.  The bill would also prohibit a motor carrier of
property from knowingly leasing, operating, dispatching or otherwise
utilizing any vehicle from a motor carrier of property whose motor
carrier permit is suspended in the manner described above, and would
 require   authorize  the department to
immediately suspend the motor carrier permit of any motor carrier
that the department determines to be in violation of that
prohibition.  Because a violation of the Vehicle Code under existing
law is a crime, this bill would create new crimes, thereby imposing a
state-mandated local program.
  (4) 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:  yes.  Fiscal committee:  yes.
State-mandated local program:  yes.


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 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, if that failure is either a
consistent failure or presents an imminent danger to public safety.
   (B) Failure to enroll all drivers in the pull notice system as
required by Section 1808.1 of the Vehicle Code.
   (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 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).

   (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 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 of the California Highway Patrol that the
carrier's safety compliance has improved to the satisfaction of 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 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 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 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 for a hearing is filed with the commission, with a
copy 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, 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 of the California Highway Patrol
and the 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 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, 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.
   (2) Failed to enroll all drivers in the pull notice system as
required by Section 1808.1.
   (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 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, 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.
   (2) Failed to enroll all drivers in the pull notice system as
required by Section 1808.1.
   (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  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.
   (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).
   (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  (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 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, if that
failure is either a consistent failure or presents an imminent danger
to public safety.
   (2) Enroll all drivers in the pull notice system as required by
Section 1808.1.
   (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, pending a hearing in the matter pursuant to
subdivision (e), may suspend a carrier's permit.
   (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.
   (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.
   (e) Whenever the department suspends the permit of any carrier
pursuant to subdivision (b) or paragraph (3) of subdivision (h), 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 (d).
   (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.
   (g)  A motor carrier of property may not 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.
   (h) (1) A motor carrier of property whose motor carrier permit is
suspended pursuant to this section or Section 34505.6, which
suspension is based wholly or in part on the failure of the motor
carrier to maintain any vehicle in safe operating condition, may not
lease, or otherwise allow, another motor carrier to operate the
vehicles of the carrier subject to the suspension, during the period
of the suspension.
   (2) A motor carrier of property may not knowingly lease, operate,
dispatch, or otherwise utilize any vehicle from a motor carrier of
property whose motor carrier permit is suspended, which suspension is
based wholly or in part on the failure of the motor carrier to
maintain any vehicle in safe operating condition.
   (3) The department  shall   may 
immediately suspend the motor carrier permit of any motor carrier
that the department determines to be in violation of paragraph (2).

  SEC. 4.  No reimbursement is required by this act pursuant to
Section 6 of Article XIIIB 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 XIIIB of the California Constitution.