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 AB 957 (Scott) Page 2 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. AB 957 (Scott) Page 3 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 AB 957 (Scott) Page 4 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