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