BILL ANALYSIS AB 957 Page 1 Date of Hearing: April 12, 1999 ASSEMBLY COMMITTEE ON TRANSPORTATION Tom Torlakson, Chair AB 957 (Scott) - As Introduced: February 25, 1999 SUBJECT : Vehicles: motor carriers of property SUMMARY : Requires the Department of Motor Vehicles (DMV) to suspend a motor carrier's permit or the Public Utilities Commission (PUC) to suspend a household goods carrier's permit upon receipt of a request from the California Highway Patrol for a motor carrier's failure to submit fees or complete an application under the Biennial Inspection of Terminals (BIT) Program. EXISTING LAW 1)Requires CHP, under the BIT Program, to inspect every motor carrier terminal at least once every 25 months, and requires the carrier to schedule the inspection with CHP and to submit an application form along with the required fees. The fee is $400 per terminal, or $100 for owner-operators with one to three vehicles. 2)Requires that applications and fees for the BIT Progarm be submitted no later than seven months before the expiration of the motor carrier's current inspection term, and allows CHP to issue a citation with a possible fine of $270 for failing to submit the application or pay the fees. 3)Requires CHP to recommend that DMV or PUC suspend or revoke the permit of a motor carrier if the carrier has failed to maintain the vehicle in safe operating condition; failed to prevent a vehicle from becoming an imminent or consistent danger to public safety; or failed to maintain current driving records of all drivers employed by the carrier. FISCAL EFFECT : Unknown COMMENTS : All fees collected under the BIT program are deposited in the Motor Vehicle Account (MVA). The Legislature appropriates an amount equal to the fees from the MVA to CHP for the purposes of conducting truck terminal inspections and additional roadside safety inspections. The fees currently AB 957 Page 2 collected into the MVA cover approximately 60% of CHP's costs of conducting the program. As of October 13, 1998, 5,147 terminals had overdue BIT fee payments, this equals approximately $1,022,200 in delinquent BIT fees. CHP is the sponsor of the bill. According to the sponsor, since the beginning of the BIT program they have had difficulty collecting inspection fees. Carriers may actively avoid inspection by relocating their terminals and/or failing to submit inspections applications and fees. Because of this, CHP must attempt to collect these fees instead of focusing on the safety issues of the BIT program. In addition, CHP stresses that "those who avoid the program and who are cited on the highways find that the fines typically imposed by the local courts, with some exceptions, are not punitive, and continued non-compliance is more cost effective for those carriers." REGISTERED SUPPORT / OPPOSITION : Support California Highway Patrol (sponsor) Applegate California Teamsters Public Affairs Council California Trucking Association Opposition None received Analysis Prepared by : Jennifer Gibson / TRANS. / (916) 319-2093