BILL ANALYSIS
SENATE TRANSPORTATION COMMITTEE Bill No: AB
957
Senator betty KARNETTE, Chair Author: scott
version: 6/22/99
Analysis by: Randall Henry Fiscal:
yes
SUBJECT:
Vehicles: motor carriers of property.
DESCRIPTION:
This bill would authorize the suspension of a motor carrier
for the failure to pay required fees under the Biennial
Inspection of Terminals Program.
ANALYSIS:
1) Existing law requires the California Highway Patrol
(department) to inspect every motor carrier terminal under
the biennial inspection of terminals program at least every
25 months. Existing law requires a motor carrier to
schedule the inspection with the department and to submit
the specified fees. Applications and fees for subsequent
inspections are required to be submitted 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, 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 (b) failed
to enroll all drivers in the required pull-notice system.
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 would recommend suspensions.
2) Existing provisions of the Vehicle Code require the
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department, 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, or (b) failed
to enroll all drivers in a required pull-notice system.
The 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 would make those recommendations.
3) Existing provisions of the Vehicle Code prohibit a
motor carrier from operating a commercial motor vehicle on
any public highway during any period its motor carrier
permit is suspended.
This bill would prohibit a motor carrier 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, from
leasing, or otherwise allowing another motor carrier to
operate the vehicles of the carrier subject to the
suspension.
The bill would also prohibit a motor carrier from knowingly
leasing, operating, dispatching or otherwise utilizing any
vehicle from a motor carrier whose permit is suspended, and
require the department to immediately suspend the permit of
any motor carrier that the department determines to be in
violation of that prohibition.
COMMENTS:
1. Under the Biennial Inspection of Terminals Program, the
department is required to conduct an inspection of every
motor carrier terminal at least every 25 months. It is the
responsibility of the motor carrier to schedule the
required inspection and to complete an application form and
submit specified fees. The fee ranges from $100-400,
depending on the number of vehicles housed at the terminal.
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All fees collected under this program are deposited in the
Motor Vehicle Account. An amount equal to the fees
collected is required to be available for appropriation by
the Legislature from the Motor Vehicle Account to the
department to fund the cost of conducting the truck
terminal inspections and for other roadside safety
inspections required by law. According to the department,
the fee revenues currently cover approximately 60 percent
of the departmental costs to conduct the inspection
program.
Since the establishment of the inspection program, the
department has experienced some difficulty with the timely
collection of inspection fees. The department indicates
that it presently requires considerable effort by
department personnel to effectuate program compliance by
some carriers. Despite these efforts, a significant number
of motor carriers refuse to submit the required fees until
a citation is issued.
According to the department, over 5,000 terminals are
presently delinquent in the payment of their inspection
program fees, which represents $1,022,200 in unrecovered
fee revenues.
2. The delinquency rate of the terminal inspection program
is significant, and this measure would enhance the ability
of the department to better ensure the compliance of motor
carriers to the requirements of the program. Delinquent
motor carriers could face suspension or revocation of the
ability to operate if they fail to pay the required fees,
much like that is presently authorized for safety
violations and other offenses. In addition, the measure
would prohibit a motor carrier whose permit has been
suspended for operating unsafe vehicles from transferring
vehicles to another motor carrier during the term of the
suspension.
3. If this bill is approved by the Committee, it will be
referred to the Senate Energy, Utilities and Communications
Committee for hearing by that committee.
Assembly Votes:
Floor: 79-0
Appr: 21-0
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Trans: 18-0
POSITIONS: (Communicated to the Committee before noon on
Wednesday,
6/23/99)
SUPPORT: California Highway Patrol (sponsor)
California Teamsters Public Affairs Council
California Trucking Association
OPPOSED: None received.
6/24/99