Bill Text: CA AB529 | 2013-2014 | Regular Session | Chaptered


Bill Title: Vehicles: motor carriers: inspections and fees.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2013-10-03 - Chaptered by Secretary of State - Chapter 500, Statutes of 2013. [AB529 Detail]

Download: California-2013-AB529-Chaptered.html
BILL NUMBER: AB 529	CHAPTERED
	BILL TEXT

	CHAPTER  500
	FILED WITH SECRETARY OF STATE  OCTOBER 3, 2013
	APPROVED BY GOVERNOR  OCTOBER 3, 2013
	PASSED THE SENATE  SEPTEMBER 9, 2013
	PASSED THE ASSEMBLY  SEPTEMBER 10, 2013
	AMENDED IN SENATE  SEPTEMBER 3, 2013
	AMENDED IN SENATE  JUNE 25, 2013
	AMENDED IN ASSEMBLY  MARCH 19, 2013

INTRODUCED BY   Assembly Member Lowenthal

                        FEBRUARY 20, 2013

   An act to amend, repeal, and add Sections 7235 and 7236 of the
Revenue and Taxation Code, and to amend Section 34622 of, to amend,
repeal, and add Sections 34501.12, 34505.5, 34505.6, 34515, 34601,
34623, and 40000.22 of, and to repeal Section 34606 of, the Vehicle
Code, relating to vehicles.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 529, Lowenthal. Vehicles: motor carriers: inspections and fees.

   Existing law establishes the Biennial Inspection of Terminals
Program (BIT) to ensure the safe operation of certain vehicles by a
motor carrier through the inspection of these vehicles at the motor
carrier's terminal by the Department of the California Highway
Patrol. Existing law defines a motor carrier, for this purpose, as
the registered owner of, and in some cases the lessee or person
exclusively authorizing and directing the operation of, specified
vehicles. Existing law requires, within 30 days of establishing a
terminal, a motor carrier to schedule an inspection by submitting to
the department an application for a terminal inspection accompanied
by the payment of a fee the amount of which is based on the number of
vehicles in a terminal or the "terminal fleet size." Existing law
requires the department to inspect every terminal at least once every
25 months and defines a terminal as the location or locations
designated by the motor carrier where subject vehicles and specific
records are available for inspection.
   This bill would, commencing January 1, 2016, revise and recast
these provisions as the Basic Inspection of Terminals (BIT) Program.
The bill would, commencing January 1, 2016, authorize the department
to conduct terminal inspections at any time. The bill would require
the department, on or before January 1, 2016, to implement a
performance-based truck terminal inspection priority system similar
to that used by the Federal Motor Carrier Safety Administration that
would require the department to place an inspection priority on motor
carrier terminals never previously inspected by the department. The
bill would require, commencing January 1, 2016, the department to
create a database to include specified performance-based data and
provide real-time information to the department regarding motor
carrier performance, as specified. The bill would, commencing January
1, 2016, provide that the department is not required to inspect a
terminal more than once every 6 years, if certain conditions apply,
and provides that terminals that receive less than a satisfactory
compliance rating would be subject to periodic inspections based on
the severity of violations. The bill would require the Department of
the California Highway Patrol, commencing January 30, 2017, and every
5 years thereafter, to report to the Department of Motor Vehicles
the amount it expended for truck terminal inspections and roadside
safety inspections. The bill would require the Department of Motor
Vehicles to compare those expenditures to the amounts collected for
carrier inspection fees, as specified, and, commencing July 1, 2017,
and every 5 years thereafter, adjust the carrier inspection fee to
ensure that the net revenues from the carrier inspection fee are
sufficient to cover the Department of the California Highway Patrol's
reasonable costs for those activities. The bill would express the
intent of the Legislature in this regard.
   Existing law provides that it is a misdemeanor for a motor carrier
to operate a vehicle without having submitted an inspection
application and the required fees to the department, as specified.
   This bill would revise those provisions to, commencing January 1,
2016, make it a misdemeanor for a motor carrier to operate any of
specified types of vehicles without identifying to the department all
terminals in this state where vehicles may be inspected by the
department and where vehicle inspection and maintenance records and
driver records will be made available for inspection. The bill would,
commencing January 1, 2016, require the lessor of certain vehicles
to make vehicles available for inspection upon request of an
authorized representative of the department in the course of
inspecting the terminal of the lessee. The bill would make a
violation of these provisions a misdemeanor. The bill would,
commencing January 1, 2016, make it a misdemeanor for a motor carrier
to operate or cause to be operated any of specified vehicles unless
the motor carrier is knowledgeable of, and in compliance with, all
applicable statutes and regulations.
   By expanding the provisions of existing law, the violation of
which is an offense, this bill would impose a state-mandated local
program.
   The bill would, commencing January 1, 2016, require a motor
carrier to make vehicles and records available for inspection upon
request by the department and to pay a carrier inspection fee, the
amount to be based on the size of the motor carrier's fleet. The bill
would, commencing January 1, 2016, impose delinquency fees for
failure to pay the fee on time. The bill would make other technical
and conforming changes to the BIT Program.
   This bill would incorporate additional changes to Section 34601 of
the Vehicle Code proposed by AB 501 that would become operative if
this bill and AB 501 are both enacted and this bill is enacted last.
   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.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 7235 of the Revenue and Taxation Code is
amended to read:
   7235.  (a) The Safety Fee imposed by this chapter shall be paid by
all motor carriers of property, as defined in Section 34601 of the
Vehicle Code.
   (b) This section shall remain in effect only until January 1,
2016, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2016, deletes or extends
that date.
  SEC. 2.  Section 7235 is added to the Revenue and Taxation Code, to
read:
   7235.  (a) The Safety Fee and Carrier Inspection Fee imposed by
this chapter shall be paid by all motor carriers of property, as
defined in Section 34601 of the Vehicle Code.
   (b) This section shall become operative on January 1, 2016.
  SEC. 3.  Section 7236 of the Revenue and Taxation Code is amended
to read:
   7236.  (a) Uniform business license tax fee payments collected by
the Department of Motor Vehicles pursuant to Section 7232 shall be
deposited in the State Treasury to the credit of the General Fund.
All other funds collected by the Department of Motor Vehicles
pursuant to Section 7232 shall be deposited in the State Treasury to
the credit of the Motor Vehicle Account in the State Transportation
Fund. The following fees shall be paid to the department:
   (1) For-hire motor carriers of property shall pay, according to
the following schedule, fees indicated as the safety fee and uniform
business license tax fee, based on the size of their motor vehicle
fleet.
   (2) Private carriers of property with a fleet size of 10 or less
motor vehicles shall pay a fee of thirty-five dollars ($35). Private
carriers of property with a fleet size of 11 or more motor vehicles
shall pay, according to the following schedule, fees indicated as the
safety fee, based on the size of their motor vehicle fleet. Any
carrier that does not pay a uniform business license tax fee shall
not operate as a for-hire motor carrier.
   (3) A seasonal permit may be issued to a motor carrier of property
upon payment of fees indicated as the safety fee and one-twelfth of
the fee indicated as the uniform business license tax fee, rounded to
the next dollar, for each month the permit is valid. The original
seasonal permit shall be valid for a period of not less than six
months, and may be renewed upon payment of a five-dollar ($5) fee,
and one-twelfth of the fee indicated as a uniform business license
tax fee for each additional month of operation.
      Fleet Size-                          Uniform
      -Commercial                          Business
  Motor Vehicles Fee  Safety Fee         License Tax
           1              $60                 $60
          2-4              75                125
         5-10             200                275
         11-20            240                470
         21-35            325                650
         36-50            430                880
         51-100           535               1,075
        101-200           635               1,300
        201-500           730               1,510
       501-1,000          830               1,715
      1,001-2,000         930               1,900
      2,001-over        1,030               2,000


   Notwithstanding the above fee schedule, motor carriers of property
with 10 or fewer trucks shall not pay fees higher than they would
have paid under the fee structure in place as of January 1, 1996.
Notwithstanding Section 34606 of the Vehicle Code, fees for these
carriers shall not be subject to an increase by the Department of
Motor Vehicles.
   (b) Funds derived from safety fees shall remain in the Motor
Vehicle Account in the State Transportation Fund and shall be
available for appropriation by the Legislature to cover costs
incurred by the Department of Motor Vehicles and the Department of
the California Highway Patrol in regulating motor carriers of
property pursuant to Division 14.85 (commencing with Section 34600)
of the Vehicle Code.
   (c) It is the intent of the Legislature that the fee schedule
established in subdivision (a) shall not discriminate against small
fleet or individual vehicle operators or result in a disproportionate
share of those fees being assigned to small fleet or individual
vehicle operators.
   (d) This section shall remain in effect only until January 1,
2016, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2016, deletes or extends
that date.
  SEC. 4.  Section 7236 is added to the Revenue and Taxation Code, to
read:
   7236.  (a) Uniform business license tax fee payments collected by
the Department of Motor Vehicles pursuant to Section 7232 shall be
deposited in the State Treasury to the credit of the General Fund.
All other funds collected by the Department of Motor Vehicles
pursuant to Section 7232 shall be deposited in the State Treasury to
the credit of the Motor Vehicle Account in the State Transportation
Fund. The following fees shall be paid to the department:
   (1) For-hire motor carriers of property shall pay, according to
the schedule in subdivision (c), fees indicated as the safety fee,
Carrier Inspection Fee, and uniform business license tax fee, based
on the size of their motor vehicle fleet.
   (2) (A) Private carriers of property with a fleet size of 10 or
less motor vehicles shall pay a safety fee of thirty-five dollars
($35). Private carriers of property with a fleet size of 11 or more
motor vehicles shall pay, according to the schedule in subdivision
(c), fees indicated as the safety fee, based on the size of their
motor vehicle fleet. Any carrier that does not pay a uniform business
license tax fee shall not operate as a for-hire motor carrier.
   (B) Private carriers of property shall pay, according to the
schedule of fees in subdivision (c), fees indicated as the carrier
inspection fee based on the size of the motor vehicle fleet.
   (b) "Fleet size" as used in this section, does not include
vehicles described in subdivision (e) of Section 34500.
   (c) (1) A seasonal permit may be issued to a motor carrier of
property upon payment of fees indicated as the safety fee and
one-twelfth of the fee indicated as the uniform business license tax
fee, rounded to the next dollar, for each month the permit is valid.
The original seasonal permit shall be valid for a period of not less
than six months, and may be renewed upon payment of a five-dollar
($5) fee, and one-twelfth of the fee indicated as a uniform business
license tax fee for each additional month of operation.
Fleet-
-Size
Commercial
Vehicles Fee                Uniform   Carrier
                 Safety     Business   Inspection
                   Fee     License Tax Fee
    1
                    $60        $60      $130
   2-4              75         125      152
     5-10          200         275      252
    11-20          240         470      573
    21-35          325         650      743
    36-50          430         880      961
    51-100         535       1,075     1,112
   101-200         635       1,300     1,463
   201-500         730       1,510     1,512
  501-1,000        830       1,715     1,600
1,001-2,000       930       1,900     1,800
2,001-over       1,030      2,000     2,114


   (2) Notwithstanding the fee schedule in paragraph (1), except for
the carrier inspection fee, motor carriers of property with 10 or
fewer trucks shall not pay fees higher than they would have paid
under the fee schedule applicable as of January 1, 1996.
   (d) Failure to pay fees required by this section, within the
appropriate timeframe, shall result in additional delinquent fees as
follows:
   (1) For a delinquency period of more than 30 days and less than
one year, the penalty is 60 percent of the required fee.
   (2) For a delinquency period of one to two years, the penalty is
80 percent of the required fee.
   (3) For a delinquency period of more than two years, the penalty
is 160 percent of the required fee.
   (e) Funds derived from safety fees, including delinquency fees,
shall remain in the Motor Vehicle Account in the State Transportation
Fund and shall be available for appropriation by the Legislature to
cover costs incurred by the Department of Motor Vehicles and the
Department of the California Highway Patrol in regulating and
inspecting motor carriers of property pursuant to Division 14.8
(commencing with Section 34500) and Division 14.85 (commencing with
Section 34600) of the Vehicle Code.
   (f) All Carrier Inspection Fees, including delinquency fees,
collected pursuant to this section shall be deposited in the Motor
Vehicle Account in the State Transportation Fund. An amount equal to
the Carrier Inspection Fees collected shall be made available for
appropriation by the Legislature from the Motor Vehicle Account to
the department for the purpose of conducting truck terminal
inspections and roadside safety inspections required by Section 34514
of the Vehicle Code.
   (g) It is the intent of the Legislature that the fee schedule
established in subdivision (c) shall not discriminate against small
fleet or individual vehicle operators or result in a disproportionate
share of those fees being assigned to small fleet or individual
vehicle operators. It is further the intent of the Legislature that
the amount made available for appropriation pursuant to subdivision
(f) shall fully defray the costs of the department for the purposes
of the truck terminal inspections conducted pursuant to Section
34501.12 of the Vehicle Code and roadside safety inspections required
by Section 34514 of the Vehicle Code.
   (h) Commencing January 30, 2017, and every five years thereafter,
the Department of the California Highway Patrol shall report to the
Department of Motor Vehicles the amount that the Department of the
California Highway Patrol expended in the previous fiscal year to
conduct the inspections and otherwise administer the requirements of
Section 34501.12 and 34514 of the Vehicle Code. The Department of
Motor Vehicles shall compare this amount to the revenue it collected,
net of its collection costs, during the same fiscal year from
carrier inspection fees received pursuant to this section. Based on
this comparison, the Department of Motor Vehicles shall, effective
July 1, 2017, and every five years thereafter, adjust the carrier
inspection fee specified in subdivision (c) to ensure that the net
revenues from the carrier inspection fee are sufficient to cover the
Department of the California Highway Patrol's reasonable costs for
the activities described in this subdivision.
   (i) This section shall become operative on January 1, 2016.
  SEC. 5.  Section 34501.12 of the Vehicle Code is amended to read:
   34501.12.  (a) Notwithstanding Section 408, as used in this
section and Sections 34505.5 and 34505.6, "motor carrier" means the
registered owner of a vehicle described in subdivision (a), (b), (e),
(f), or (g) of Section 34500, except in the following circumstances:

   (1) The registered owner leases the vehicle to another person for
a term of more than four months. If the lease is for more than four
months, the lessee is the motor carrier.
   (2) The registered owner operates the vehicle exclusively under
the authority and direction of another person. If the operation is
exclusively under the authority and direction of another person, that
other person may assume the responsibilities as the motor carrier.
If not so assumed, the registered owner is the motor carrier. A
person who assumes the motor carrier responsibilities of another
pursuant to subdivision (b) shall provide to that other person whose
motor carrier responsibility is so assumed, a completed copy of a
departmental form documenting that assumption, stating the period for
which responsibility is assumed, and signed by an agent of the
assuming person. A legible copy shall be carried in each vehicle or
combination of vehicles operated on the highway during the period for
which responsibility is assumed. That copy shall be presented upon
request by an authorized employee of the department. The original
completed departmental form documenting the assumption shall be
provided to the department within 30 days of the assumption. If the
assumption of responsibility is terminated, the person who had
assumed responsibility shall so notify the department in writing
within 30 days of the termination.
   (b) (1) A motor carrier may combine two or more terminals that are
not subject to an unsatisfactory compliance rating within the last
36 months for purposes of the inspection required by subdivision (d),
subject to all of the following conditions:
   (A) The carrier identifies to the department, in writing, each
terminal proposed to be included in the combination of terminals for
purposes of this subdivision prior to an inspection of the designated
terminal pursuant to subdivision (d).
   (B) The carrier provides the department, prior to the inspection
of the designated terminal pursuant to subdivision (d), a written
listing of all its vehicles of a type subject to subdivision (a),
(b), (e), (f), or (g) of Section 34500 that are based at each of the
terminals combined for purposes of this subdivision. The listing
shall specify the number of vehicles of each type at each terminal.
   (C) The carrier provides to the department at the designated
terminal during the inspection all maintenance records and driver
records and a representative sample of vehicles based at each of the
terminals included within the combination of terminals.
   (2) If the carrier fails to provide the maintenance records,
driver records, and representative sample of vehicles pursuant to
subparagraph (C) of paragraph (1), the department shall assign the
carrier an unsatisfactory terminal rating and require a reinspection
to be conducted pursuant to subdivision (h).
   (3) For purposes of this subdivision, the following terms have the
following meanings:
   (A) "Driver records" includes pull notice system records, driver
proficiency records, and driver timekeeping records.
   (B) "Maintenance records" includes all required maintenance,
lubrication, and repair records and drivers' daily vehicle condition
reports.
   (C) "Representative sample" means the following, applied
separately to the carrier's fleet of motortrucks and truck tractors
and its fleet of trailers:
               Representative
Fleet Size        Sample
  1 or 2             All
  3 to 8               3
  9 to 15              4
16 to 25              6
26 to 50              9
51 to 90             14
91 or more           20


   (c) Each motor carrier who, in this state, directs the operation
of, or maintains, a vehicle of a type described in subdivision (a)
shall designate one or more terminals, as defined in Section 34515,
in this state where vehicles can be inspected by the department
pursuant to paragraph (4) of subdivision (a) of Section 34501 and
where vehicle inspection and maintenance records and driver records
will be made available for inspection.
   (d) (1) The department shall inspect, at least every 25 months,
every terminal, as defined in Section 34515, of a motor carrier who,
at any time, operates a vehicle described in subdivision (a).
   (2) The department shall place an inspection priority on those
terminals operating vehicles listed in subdivision (g) of Section
34500.
   (3) As used in this section and in Sections 34505.5 and 34505.6,
subdivision (f) of Section 34500 includes only those combinations
where the gross vehicle weight rating of the towing vehicle exceeds
10,000 pounds, but does not include a pickup truck, and subdivision
(g) of Section 34500 includes only those vehicles transporting
hazardous material for which the display of placards is required
pursuant to Section 27903, a license is required pursuant to Section
32000.5, or for which hazardous waste transporter registration is
required pursuant to Section 25163 of the Health and Safety Code.
Historical vehicles, as described in Section 5004, vehicles that
display special identification plates in accordance with Section
5011, implements of husbandry and farm vehicles, as defined in
Chapter 1 (commencing with Section 36000) of Division 16, and
vehicles owned or operated by an agency of the federal government are
not subject to this section or to Sections 34505.5 and 34505.6.
   (e) (1) It is the responsibility of the motor carrier to schedule
with the department the inspection required by subdivision (d). The
motor carrier shall submit an application form supplied by the
department, accompanied by the required fee contained in paragraph
(2), for each terminal the motor carrier operates. This fee shall be
submitted within 30 days of establishing a terminal. All fees
submitted under paragraph (2) are nonrefundable.
   (2) (A) The fee for each terminal is set forth in the following
table:
Terminal      Required fee per terminal
fleet size
       1                 $ 270
       2                   375
    3 to 8                 510
    9 to 15                615
   16 to 25                800
   26 to 50              1,040
   51 to 90              1,165
  91 or more             1,870


   (B) In addition to the fee specified in subparagraph (A), the
motor carrier shall submit an additional fee of three hundred fifty
dollars ($350) for each of its terminals not previously inspected
under the section.
   (3) Except as provided in paragraph (5), the inspection term for
each inspected terminal of a motor carrier shall expire 25 months
from the date the terminal receives a satisfactory compliance rating,
as specified in subdivision (h). Applications and fees for
subsequent inspections shall be submitted not earlier than nine
months and not later than seven months before the expiration of the
motor carrier's then current inspection term. If the motor carrier
has submitted the inspection application and the required
accompanying fees, but the department is unable to complete the
inspection within the 25-month inspection period, then no additional
fee shall be required for the inspection requested in the original
application.
   (4) All fees collected pursuant to this subdivision, including
delinquence fees, shall be deposited in the Motor Vehicle Account in
the State Transportation Fund. An amount equal to the fees collected
shall be available for appropriation by the Legislature from the
Motor Vehicle Account to the department for the purpose of conducting
truck terminal inspections and for the additional roadside safety
inspections required by Section 34514.
   (5) To avoid the scheduling of a renewal terminal inspection
pursuant to this section during a carrier's seasonal peak business
periods, the current inspection term of a terminal that has paid all
required fees and has been rated satisfactory in its last inspection
may be reduced by not more than nine months if a written request is
submitted by the carrier to the department at least four months prior
to the desired inspection month, or at the time of payment of
renewal inspection fees in compliance with paragraph (3), whichever
date is earlier. A motor carrier may request this adjustment of the
inspection term during any inspection cycle. A request made pursuant
to this paragraph shall not result in a fee proration and does not
relieve the carrier from the requirements of paragraph (3).
   (6) Failure to pay a fee required by this section, within the
appropriate timeframe, shall result in additional delinquent fees as
follows:
   (A) For a delinquency period of more than 30 days and less than
one year, the penalty is 60 percent of the required fee.
   (B) For a delinquency period of one to two years, the penalty is
80 percent of the required fee.
   (C) For a delinquency period of more than two years, the penalty
is 160 percent of the required fee.
   (7) Federal, state, and local public entities are exempt from the
fee requirement of this section.
   (f) It is unlawful for a motor carrier to operate a vehicle
subject to this section without having submitted an inspection
application and the required fees to the department as required by
subdivision (e) or (h).
   (g) (1) It is unlawful for a motor carrier to operate a vehicle
subject to this section after submitting an inspection application to
the department, without the inspection described in subdivision (d)
having been performed and a safety compliance report having been
issued to the motor carrier within the 25-month inspection period or
within 60 days immediately preceding the inspection period.
   (2) It is unlawful for a motor carrier to contract or subcontract
with, or otherwise engage the services of, another motor carrier,
subject to this section, unless the contracted motor carrier has
complied with this section. A motor carrier shall not contract or
subcontract with, or otherwise engage the services of, another motor
carrier until the contracted motor carrier provides certification of
compliance with this section. This certification shall be completed
in writing by the contracted motor carrier. The certification, or a
copy thereof, shall be maintained by each involved party for the
duration of the contract or the period of service plus two years, and
shall be presented for inspection immediately upon the request of an
authorized employee of the department.
   (h) (1) An inspected terminal that receives an unsatisfactory
compliance rating shall be reinspected within 120 days after the
issuance of the unsatisfactory compliance rating.
   (2) A terminal's first required reinspection under this
subdivision shall be without charge unless one or more of the
following is established:
   (A) The motor carrier's operation presented an imminent danger to
public safety.
   (B) The motor carrier was not in compliance with the requirement
to enroll all drivers in the pull notice program pursuant to Section
1808.1.
   (C) The motor carrier failed to provide all required records and
vehicles for a consolidated inspection pursuant to subdivision (b).
   (3) If the unsatisfactory rating was assigned for any of the
reasons set forth in paragraph (2), the carrier shall submit the
required fee as provided in paragraph (4).
   (4) Applications for reinspection pursuant to paragraph (3) or for
second and subsequent consecutive reinspections under this
subdivision shall be accompanied by the fee specified in paragraph
(2) of subdivision (e) and shall be filed within 60 days of issuance
of the unsatisfactory compliance rating. The reinspection fee is
nonrefundable.
   (5) When a motor carrier's Motor Carrier of Property Permit or
Public Utilities Commission operating authority is suspended as a
result of an unsatisfactory compliance rating, the department shall
not conduct a reinspection for permit or authority reinstatement
until requested to do so by the Department of Motor Vehicles or the
Public Utilities Commission, as appropriate.
   (i) It is the intent of the Legislature that the department make
its best efforts to inspect terminals within the resources provided.
In the interest of the state, the Commissioner of the California
Highway Patrol may extend for a period, not to exceed six months, the
inspection terms beginning prior to July 1, 1990.
   (j) Except as provided in paragraph (5), to encourage motor
carriers to attain continuous satisfactory compliance ratings, the
department may establish and implement an incentive program
consisting of the following:
   (1) After the second consecutive satisfactory compliance rating
assigned to a motor carrier terminal as a result of an inspection
conducted pursuant to subdivision (d), and after each consecutive
satisfactory compliance rating thereafter, an appropriate
certificate, denoting the number of consecutive satisfactory ratings,
shall be awarded to the terminal, unless the terminal has received
an unsatisfactory compliance rating as a result of an inspection
conducted in the interim between the consecutive inspections
conducted under subdivision (d), or the motor carrier is rated
unsatisfactory by the department following a controlled substances
and alcohol testing program inspection. The certificate authorized
under this paragraph shall not be awarded for performance in the
administrative review authorized under paragraph (2). However, the
certificate shall include a reference to any administrative reviews
conducted during the period of consecutive satisfactory compliance
ratings.
   (2) Unless the department's evaluation of the motor carrier's
safety record indicates a declining level of compliance, a terminal
that has attained two consecutive satisfactory compliance ratings
assigned following inspections conducted pursuant to subdivision (d)
is eligible for an administrative review in lieu of the next required
inspection, unless the terminal has received an unsatisfactory
compliance rating as a result of an inspection conducted in the
interim between the consecutive inspections conducted under
subdivision (d). An administrative review shall consist of all of the
following:
   (A) A signed request by a terminal management representative
requesting the administrative review in lieu of the required
inspection containing a promise to continue to maintain a
satisfactory level of compliance for the next 25-month inspection
term.
   (B) A review with a terminal management representative of the
carrier's record as contained in the department's files. If a
terminal has been authorized a second consecutive administrative
review, the review required under this subparagraph is optional, and
may be omitted at the carrier's request.
   (C) Absent any cogent reasons to the contrary, upon completion of
the requirements of subparagraphs (A) and (B), the safety compliance
rating assigned during the last required inspection shall be extended
for 25 months.
   (3) Not more than two administrative reviews may be conducted
consecutively. At the completion of the 25-month inspection term
following a second administrative review, a terminal inspection shall
be conducted pursuant to subdivision (d). If this inspection results
in a satisfactory compliance rating, the terminal shall again be
eligible for an administrative review in lieu of the next required
inspection. If the succession of satisfactory ratings is interrupted
by a rating of other than satisfactory, irrespective of the reason
for the inspection, the terminal shall again attain two consecutive
satisfactory ratings to become eligible for an administrative review.

   (4) As a condition for receiving the administrative reviews
authorized under this subdivision in lieu of inspections, and in
order to ensure that compliance levels remain satisfactory, the motor
carrier shall agree to accept random, unannounced inspections by the
department.
                                          (5) Notwithstanding
paragraphs (1) to (4), inclusive, a motor carrier of hazardous
materials shall not be granted administrative review pursuant to this
subdivision in lieu of a terminal inspection pursuant to subdivision
(d) at any terminal from which hazardous materials carrying vehicles
identified by paragraph (3) of subdivision (d) are operated.
   (k) This section shall be known and may be cited as the Biennial
Inspection of Terminals Program or BIT.
   (l) The department shall, on or before January 1, 2016, adopt
regulations establishing a performance-based truck terminal
inspection priority selection system.
   (m) This section shall remain in effect only until January 1,
2016, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2016, deletes or extends
that date.
  SEC. 6.  Section 34501.12 is added to the Vehicle Code, to read:
   34501.12.  (a) Vehicles and the operation thereof, subject to this
section, are those described in subdivision (a), (b), (e), (f), (g),
(j), or (k) of Section 34500.
   (b) It is unlawful for a motor carrier to operate any vehicle of a
type described in subdivision (a) without identifying to the
department all terminals, as defined in Section 34515, in this state
where vehicles may be inspected by the department pursuant to
paragraph (4) of subdivision (a) of Section 34501 and where vehicle
inspection and maintenance records and driver records will be made
available for inspection. Motor carriers shall make vehicles and
records available for inspection upon request by an authorized
representative of the department. If a motor carrier fails to provide
vehicles and records, an unsatisfactory terminal rating shall be
issued by the department.
   (1) The number of vehicles that will be selected for inspection by
the department at a terminal shall be based on terminal fleet size
and applied separately to a terminal fleet of power units and
trailers, according to the following schedule:
               Representative
Fleet Size        Sample
  1 or 2             All
  3 to 8               3
  9 to 15              4
16 to 25              6
26 to 50              9
51 to 90             14
91 or more           20


   (2) The lessor of any vehicle described in subdivision (a) shall
make vehicles available for inspection upon request of an authorized
representative of the department in the course of inspecting the
terminal of the lessee. This section does not affect whether the
lessor or driver provided by the lessor is an employee of the
authorized carrier lessee, and compliance with this section and its
attendant administrative requirements does not imply an
employee-employer relationship.
   (c) (1) The department may inspect any terminal, as defined in
Section 34515, of a motor carrier who, at any time, operates any
vehicle described in subdivision (a).
   (2) The department shall adopt rules and regulations establishing
a performance-based truck terminal inspection selection priority
system. In adopting the system's rules and regulations, the
department shall incorporate methodologies consistent with those used
by the Federal Motor Carrier Safety Administration, including those
related to the quantitative analysis of safety-related motor carrier
performance data, collected during the course of inspection or
enforcement contact by authorized representatives of the department
or any authorized federal, state, or local safety official, in
categories, including, but not limited to, driver fatigue, driver
fitness, vehicle maintenance, and controlled substances and alcohol
use. The department shall also incorporate other safety-related motor
carrier performance data in this system, including citations and
accident information. The department shall create a database to
include all performance-based data specified in this section that
shall be updated in a manner to provide real-time information to the
department on motor carrier performance. The department shall
prioritize for selection those motor carrier terminals never
previously inspected by the department, those identified by the
inspection priority selection system, and those terminals operating
vehicles listed in subdivision (g) of Section 34500. The department
is not required to inspect a terminal subject to inspection pursuant
to this section more often than once every six years, if a terminal
receives a satisfactory compliance rating as the result of a terminal
inspection conducted by the department pursuant to this section or
Section 34501, or if the department has not received notification by
the system of a motor carrier operating while exceeding the threshold
of the inspection selection priority system. Any motor carrier that
is inspected and receives less than a satisfactory compliance rating,
or that falls below the threshold of the selection priority system,
shall be subject to periodic inquiries and inspections as outlined in
subdivision (f), and these inquiries and inspections shall be based
on the severity of the violations.
   (3) As used in this section and Section 34505.6, subdivision (f)
of Section 34500 includes only those combinations where the gross
vehicle weight rating of the towing vehicle exceeds 10,000 pounds,
but does not include a pickup truck or any combination never operated
in commercial use, and subdivision (g) of Section 34500 includes
only those vehicles transporting hazardous material for which the
display of placards is required pursuant to Section 27903, a license
is required pursuant to Section 32000.5, or for which hazardous waste
transporter registration is required pursuant to Section 25163 of
the Health and Safety Code. Notwithstanding Section 5014.1, vehicles
that display special identification plates in accordance with Section
5011, historical vehicles, as described in Section 5004, implements
of husbandry and farm vehicles, as defined in Chapter 1 (commencing
with Section 36000) of Division 16, and vehicles owned or operated by
an agency of the federal government are not subject to this section
or Section 34505.6.
   (d) It is unlawful for a motor carrier to operate, or cause to be
operated, any vehicle which is subject to this section, Section
34520, or Division 14.85 (commencing with Section 34600), unless the
motor carrier is knowledgeable of, and in compliance with, all
applicable statutes and regulations.
   (e) It is unlawful for a motor carrier to contract or subcontract
with, or otherwise engage the services of, another motor carrier,
subject to this section, unless the contracted motor carrier has
complied with subdivision (d). A motor carrier shall not contract or
subcontract with, or otherwise engage the services of, another motor
carrier until the contracted motor carrier provides certification of
compliance with subdivision (d). This certification shall be
completed in writing by the contracted motor carrier in a manner
prescribed by the department. The certification, or a copy of the
certification, shall be maintained by each involved party for the
duration of the contract or the period of service plus two years, and
shall be presented for inspection immediately upon the request of an
authorized employee of the department. The certifications required
by this subdivision and subdivision (b) of 34620 may be combined.
   (f) (1) An inspected terminal that receives an unsatisfactory
compliance rating shall be reinspected by the department within 120
days after the issuance of the unsatisfactory compliance rating.
   (2) When a motor carrier's Motor Carrier of Property Permit or
Public Utilities Commission operating authority is suspended as a
result of an unsatisfactory compliance rating, the department shall
not conduct a reinspection for permit or authority reinstatement
until requested to do so by the Department of Motor Vehicles or the
Public Utilities Commission, as appropriate.
   (g) A motor carrier issued an unsatisfactory terminal rating may
request a review of the rating within five business days of receipt
of the notification of the rating. The department shall conduct and
evaluate the review within 10 business days of the request.
   (h) The department shall publish performance-based inspection
completion data and make the data available for public review.
   (i) This section shall be known, and may be cited, as the Basic
Inspection of Terminals program or BIT program.
   (j) This section shall become operative on January 1, 2016.
  SEC. 7.  Section 34505.5 of the Vehicle Code is amended to read:
   34505.5.  (a) Every motor carrier operating any vehicle described
in subdivision (a), (b), (e), (f), or (g) of Section 34500, except
those vehicles exempted under Section 34501.12, shall, as a part of
the systematic inspection, maintenance, and lubrication services
required of all motor carriers, require the vehicle or vehicles for
which it is responsible pursuant to Section 34501.12 to be inspected
at least every 90 days, or more often if necessary to ensure safe
operation. Vehicles which are out of service for periods greater than
90 calendar days are not required to be inspected at 90-day
intervals if they are inspected before operation on the highway. This
inspection shall include, but not be limited to, all of the
following:
   (1) Brake adjustment.
   (2) Brake system components and leaks.
   (3) Steering and suspension systems.
   (4) Tires and wheels.
   (5) Vehicle connecting devices.
   (b) No vehicle subject to this section shall be operated on the
highway other than to a place of repair until all defects listed
during the inspection conducted pursuant to subdivision (a) have been
corrected and attested to by the signature of the motor carrier's
authorized representative.
   (c) Records of inspections conducted pursuant to subdivision (a)
shall be kept at the motor carrier's terminals, as designated in
accordance with Section 34501.12. The records shall be retained by
the motor carrier for two years, and shall be made available for
inspection upon request by any authorized employee of the department.
Each record shall include, but not be limited to, all of the
following:
   (1) Identification of the vehicle, including make, model, license
number, company vehicle number, or other means of positive
identification.
   (2) Date and nature of each inspection and any repair performed.
   (3) Signature of the motor carrier's authorized representative
attesting to the inspection and to the completion of all required
repairs.
   (d) Printouts of inspection and maintenance records maintained in
computer systems shall be accepted in lieu of signed inspection or
repair records if the printouts include the information required in
paragraphs (1) and (2) of subdivision (c).
   (e) Notwithstanding subdivisions (a) to (d), inclusive, records of
90-day inspections need not be retained in California for interstate
vehicles which are not physically based in California. However, when
these vehicles are present in California, they are subject to
inspection by the department. If the inspection results indicate
maintenance program deficiencies, the department may require the
motor carrier to produce the maintenance records or copies of those
records for inspection within 10 working days.
   (f) This section shall remain in effect only until January 1,
2016, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2016, deletes or extends
that date.
  SEC. 8.  Section 34505.5 is added to the Vehicle Code, to read:
   34505.5.  (a) Every motor carrier operating any vehicle described
in subdivision (a), (b), (e), (f), (g), (j), or (k) of Section 34500,
except those vehicles exempted under Section 34501.12, shall, as a
part of the systematic inspection, maintenance, and lubrication
services required of all motor carriers, require the vehicle or
vehicles for which it is responsible pursuant to Section 34501.12 to
be inspected at least every 90 days, or more often if necessary to
ensure safe operation. Vehicles which are out of service for periods
greater than 90 calendar days are not required to be inspected at
90-day intervals if they are inspected before operation on the
highway. This inspection shall include, but not be limited to, all of
the following:
   (1) Brake adjustment.
   (2) Brake system components and leaks.
   (3) Steering and suspension systems.
   (4) Tires and wheels.
   (5) Vehicle connecting devices.
   (b) No vehicle subject to this section shall be operated on the
highway other than to a place of repair until all defects listed
during the inspection conducted pursuant to subdivision (a) have been
corrected and attested to by the signature of the motor carrier's
authorized representative.
   (c) Records of inspections conducted pursuant to subdivision (a)
shall be kept at the motor carrier's terminals, as designated in
accordance with Section 34501.12. The records shall be retained by
the motor carrier for two years, and shall be made available for
inspection upon request by any authorized employee of the department.
Each record shall include, but not be limited to, all of the
following:
   (1) Identification of the vehicle, including make, model, license
number, company vehicle number, or other means of positive
identification.
   (2) Date and nature of each inspection and any repair performed.
   (3) Signature of the motor carrier's authorized representative
attesting to the inspection and to the completion of all required
repairs.
   (d) Printouts of inspection and maintenance records maintained in
computer systems shall be accepted in lieu of signed inspection or
repair records if the printouts include the information required in
paragraphs (1) and (2) of subdivision (c).
   (e) Notwithstanding subdivisions (a) to (d), inclusive, records of
90-day inspections need not be retained in California for interstate
vehicles which are not physically based in California. However, when
these vehicles are present in California, they are subject to
inspection by the department. If the inspection results indicate
maintenance program deficiencies, the department may require the
motor carrier to produce the maintenance records or copies of those
records for inspection within 10 working days.
   (f) This section shall become operative on January 1, 2016.
  SEC. 9.  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 Motor
Carrier Safety Administration 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, or a
household goods carrier transporting used office, store, or
institution furniture and fixtures under its household goods carrier
permit issued under Section 5137 of the Public Utilities Code,
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 Motor Carrier Safety Administration 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 Motor Carrier Safety
Administration.
   (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).
   (f) This section shall remain in effect only until January 1,
2016, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2016, deletes or extends
that date.
  SEC. 10.  Section 34505.6 is added to the Vehicle Code, 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), (j), 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 either 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
Motor Carrier Safety Administration 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.
   (b) Upon determining that a household goods carrier, or a
household goods carrier transporting used office, store, or
institution furniture and fixtures under its household goods carrier
permit issued under Section 5137 of the Public Utilities Code,
operating any vehicle described in subdivision (a), (b), (e), (f),
(g), (j), or (k) of Section 34500 on a public highway, has done
either 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 Motor Carrier Safety Administration
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.
   (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 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 Motor Carrier Safety
Administration.
   (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).
   (f) This section shall become operative on January 1, 2016.
  SEC. 11.  Section 34515 of the Vehicle Code is amended to read:
   34515.  (a) As used in this division and in regulations adopted
pursuant to this division, "maintenance facility or terminal" means
any place or places where a vehicle of a type listed in Section 34500
is regularly garaged or maintained, or from which it is operated or
dispatched. "Maintenance facility or terminal" may include a private
business or residence.
   (b) For the purpose of the inspections required by Section
34501.12, "terminal" means the location or locations in this state
that are designated by a motor carrier, where subject vehicles may be
inspected by the department pursuant to paragraph (4) of subdivision
(a) of Section 34501, and where vehicle maintenance and inspection
records and drivers' records will be made available for inspection.
   (c) This section shall remain in effect only until January 1,
2016, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2016, deletes or extends
that date.
  SEC. 12.  Section 34515 is added to the Vehicle Code, to read:
   34515.  (a) As used in this division and in regulations adopted
pursuant to this division, "maintenance facility or terminal" means
any place or places where a vehicle of a type listed in Section 34500
is regularly garaged or maintained, or from which it is operated or
dispatched. "Maintenance facility or terminal" includes a private
business or residence.
   (b) For the purpose of the inspections conducted pursuant to
Section 34501.12, "terminal" means the location or locations in this
state that are designated by a motor carrier, where subject vehicles
may be inspected by the department and where vehicle maintenance and
inspection records and drivers' records will be made available for
inspection.
   (c) This section shall become operative on January 1, 2016.
  SEC. 13.  Section 34601 of the Vehicle Code is amended to read:
   34601.  (a) As used in this division, "motor carrier of property"
means any person who operates any commercial motor vehicle as defined
in subdivision (c). "Motor carrier of property" does not include a
household goods carrier, as defined in Section 5109 of the Public
Utilities Code, a household goods carrier transporting used office,
store, and institution furniture and fixtures under its household
goods carrier permit pursuant to Section 5137 of the Public Utilities
Code, persons providing only transportation of passengers, or a
passenger stage corporation transporting baggage and express upon a
passenger vehicle incidental to the transportation of passengers.
   (b) As used in this division, "for-hire motor carrier of property"
means a motor carrier of property as defined in subdivision (a) who
transports property for compensation.

(c) (1) As used in this division, except as provided in paragraph
(2), a "commercial motor vehicle" means any self-propelled vehicle
listed in subdivisions (a), (b), (f), (g), and (k) of Section 34500,
any motor truck of two or more axles that is more than 10,000 pounds
gross vehicle weight rating, and any other motor vehicle used to
transport property for compensation.
   (2) As used in this division, "commercial motor vehicle" does not
include any of the following:
   (A) Vehicles identified in subdivision (f) of Section 34500, if
the gross vehicle weight rating of the towing vehicle is 10,000
pounds or less.
   (B) Vehicles identified in subdivision (g) of Section 34500, if
the hazardous material transportation does not require the display of
placards under Section 27903, a license under Section 32000.5, or a
hazardous waste transporter registration under Section 25163 of the
Health and Safety Code, and the vehicle is not operated in commercial
use.
   (C) Vehicles operated by a household goods carrier, as defined in
Section 5109 of the Public Utilities Code, under the household goods
carrier permit pursuant to Section 5137 of that code.
   (D) Vehicles operated by a household goods carrier to transport
used office, store, and institution furniture and fixtures under its
household goods carrier permit pursuant to Section 5137 of the Public
Utilities Code.
   (E) Pickup trucks as defined in Section 471, if the conditions in
subparagraphs (A) and (B) are also met.
   (F) Two-axle daily rental trucks with a gross vehicle weight
rating of less than 26,001 pounds, when operated in noncommercial
use.
   (G) Motor trucks or two-axle truck tractors, with a gross vehicle
weight rating of less than 26,001 pounds, when used solely to tow a
camp trailer, trailer coach, fifth-wheel travel trailer, or utility
trailer. Vehicle combinations described in this subparagraph are not
subject to Section 27900, 34501.12, or 34507.5.
   (d) For purposes of this chapter, "private carrier" means a motor
carrier of property, who transports only his or her own property,
including, but not limited to, the delivery of goods sold by that
carrier.
   (e) This section shall remain in effect only until January 1,
2016, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2016, deletes or extends
that date.
  SEC. 13.5.  Section 34601 of the Vehicle Code is amended to read:
   34601.  (a) As used in this division, "motor carrier of property"
means any person who operates any commercial motor vehicle as defined
in subdivision (c). "Motor carrier of property" does not include a
household goods carrier, as defined in Section 5109 of the Public
Utilities Code, a household goods carrier transporting used office,
store, and institution furniture and fixtures under its household
goods carrier permit pursuant to Section 5137 of the Public Utilities
Code, persons providing only transportation of passengers, or a
passenger stage corporation transporting baggage and express upon a
passenger vehicle incidental to the transportation of passengers.
   (b) As used in this division, "for-hire motor carrier of property"
means a motor carrier of property as defined in subdivision (a) who
transports property for compensation.
   (c) (1) As used in this division, except as provided in paragraph
(2), a "commercial motor vehicle" means any self-propelled vehicle
listed in subdivisions (a), (b), (f), (g), and (k) of Section 34500,
any motortruck of two or more axles that is more than 10,000 pounds
gross vehicle weight rating, and any other motor vehicle used to
transport property for compensation.
   (2) As used in this division, "commercial motor vehicle" does not
include any of the following:
   (A) Vehicles identified in subdivision (f) of Section 34500, if
the gross vehicle weight rating of the towing vehicle is 10,000
pounds or less.
   (B) Vehicles identified in subdivision (g) of Section 34500, if
the hazardous material transportation does not require the display of
placards under Section 27903, a license under Section 32000.5, or a
hazardous waste transporter registration under Section 25163 of the
Health and Safety Code, and the vehicle is not operated in commercial
use.
   (C) Vehicles operated by a household goods carrier, as defined in
Section 5109 of the Public Utilities Code, under the household goods
carrier permit pursuant to Section 5137 of that code.
   (D) Vehicles operated by a household goods carrier to transport
used office, store, and institution furniture and fixtures under its
household goods carrier permit pursuant to Section 5137 of the Public
Utilities Code.
   (E) Pickup trucks as defined in Section 471, if the conditions in
subparagraphs (A) and (B) are also met.
   (F) Two-axle daily rental trucks with a gross vehicle weight
rating of less than 26,001 pounds, when operated in noncommercial
use.
   (G) Motortrucks or two-axle truck tractors, with a gross vehicle
weight rating of less than 26,001 pounds, operated solely to tow a
camp trailer, trailer coach, fifth-wheel travel trailer, trailer
designed to transport watercraft, or utility trailer. Vehicle
combinations described in this subparagraph are not subject to
Section 27900, 34501.12, or 34507.5.
   (H) Motortrucks or two-axle truck tractors, with a gross vehicle
weight rating of less than 16,001 pounds, operated singly in
noncommercial use.
   (d) For purposes of this chapter, "private carrier" means a motor
carrier of property, who transports only his or her own property,
including, but not limited to, the delivery of goods sold by that
carrier.
   (e) This section shall remain in effect only until January 1,
2016, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2016, deletes or extends
that date.
  SEC. 14.  Section 34601 is added to the Vehicle Code, to read:
   34601.  (a) As used in this division, "motor carrier of property"
means any person who operates any commercial motor vehicle as defined
in subdivision (c). "Motor carrier of property" does not include a
household goods carrier, as defined in Section 5109 of the Public
Utilities Code, a household goods carrier transporting used office,
store, and institution furniture and fixtures under its household
goods carrier permit pursuant to Section 5137 of the Public Utilities
Code, persons providing only transportation of passengers, or a
passenger stage corporation transporting baggage and express upon a
passenger vehicle incidental to the transportation of passengers.
   (b) As used in this division, "for-hire motor carrier of property"
means a motor carrier of property as defined in subdivision (a) who
transports property for compensation.
   (c) (1) As used in this division, except as provided in paragraph
(2), a "commercial motor vehicle" means any self-propelled vehicle
listed in subdivisions (a), (b), (f), (g), and (k) of Section 34500,
any motortruck of two or more axles that is more than 10,000 pounds
gross vehicle weight rating, and any other motor vehicle used to
transport property for compensation.
   (2) As used in this division, "commercial motor vehicle" does not
include any of the following:
   (A) Vehicles identified in subdivision (f) of Section 34500, if
the gross vehicle weight rating of the towing vehicle is 10,000
pounds or less.
   (B) Vehicles identified in subdivision (g) of Section 34500, if
the hazardous material transportation does not require the display of
placards under Section 27903, a license under Section 32000.5, or a
hazardous waste transporter registration under Section 25163 of the
Health and Safety Code, and the vehicle is not operated in commercial
use.
   (C) Vehicles operated by a household goods carrier, as defined in
Section 5109 of the Public Utilities Code, under the household goods
carrier permit pursuant to Section 5137 of that code.
   (D) Vehicles operated by a household goods carrier to transport
used office, store, and institution furniture and fixtures under its
household goods carrier permit pursuant to Section 5137 of the Public
Utilities Code.
   (E) Pickup trucks as defined in Section 471, if the conditions in
subparagraphs (A) and (B) are also met.
   (F) Two-axle daily rental trucks with a gross vehicle weight
rating of less than 26,001 pounds, when operated in noncommercial
use.
   (G) Vehicles never operated in commercial use, including
motortrucks or two-axle truck tractors, with a gross vehicle weight
rating of less than 26,001 pounds, when operated singly, or, when
used to tow a camp trailer, trailer coach, fifth-wheel travel
trailer, trailer designed to transport watercraft, or a utility
trailer, never operated in commercial use. Vehicle combinations
described in this subparagraph are not subject to Section 27900,
34501.12, or 34507.5.
   (d) For purposes of this chapter, "private carrier" means a motor
carrier of property, who transports only his or her own property,
including, but not limited to, the delivery of goods sold by that
carrier.
   (e) This section shall become operative on January 1, 2016.
  SEC. 15.  Section 34606 of the Vehicle Code is repealed.
  SEC. 16.  Section 34622 of the Vehicle Code is amended to read:
   34622.  This chapter does not apply to any of the following:
   (a) Vehicles described in Section 5004 or 5011, and those that are
exempt from vehicle registration fees.
   (b) A household goods carrier transporting used office, store, and
institution furniture and fixtures under its household goods carrier
permit pursuant to Section 5137 of the Public Utilities Code.
  SEC. 17.  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 motor carrier permit of a motor carrier of property shall
be suspended for failure to either (1) comply with the requirements
of federal law described in subdivision (a) of Section 34520 of the
Vehicle Code, or (2) make copies of results and other records
available as required by subdivision (b) of that section. The
suspension shall be as follows:
   (1) For a serious violation, which is a willful failure to perform
substance abuse testing in accordance with state or federal law:
   (A) For a first offense, a mandatory five-day suspension.
   (B) For a second offense within three years of a first offense, a
mandatory three-month suspension.
   (C) For a third offense within three years of a first offense, a
mandatory one-year suspension.
   (2) For a nonserious violation, the time recommended to the
department by the Department of the California Highway Patrol.
   (3) For the purposes of this subdivision, "willful failure" means
any of the following:
   (A) An intentional and uncorrected failure to have a controlled
substances and alcohol testing program in place.
   (B) An intentional and uncorrected failure to enroll an employed
driver into the controlled substances and alcohol testing program.
   (C) A knowing use of a medically disqualified driver, including
the failure to remove the driver from safety-sensitive duties upon
notification of the medical disqualification.
   (D) An attempt to conceal legal deficiencies in the motor carrier'
s controlled substances and alcohol testing program.
   (d) The department, pending a hearing in the matter pursuant to
subdivision (f), may suspend a carrier's permit.
   (e) (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 that
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.
   (f) Whenever the department suspends the permit of any carrier
pursuant to subdivision (b), (c), or paragraph (3) of subdivision
(i), 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 (e).
   (g) 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.
   (h) 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.
   (i) (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 may immediately suspend the motor carrier
permit of any motor carrier that the department determines to be in
violation of paragraph (2).
   (j) This section shall remain in effect only until January 1,
2016, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2016, deletes or extends
that date.
  SEC. 18.  Section 34623 is added to the Vehicle Code, 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 either 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.
   (c) The motor carrier permit of a motor carrier of property shall
be suspended for failure to either (1) comply with the requirements
of federal law described in subdivision (a) of Section 34520 of the
Vehicle Code, or (2) make copies of results and other records
available as required by subdivision (b) of that section. The
suspension shall be as follows:
   (1) For a serious violation, which is a willful failure to perform
substance abuse testing in accordance with state or federal law:
   (A) For a first offense, a mandatory five-day suspension.
   (B) For a second offense within three years of a first offense, a
mandatory three-month suspension.
   (C) For a third offense within three years of a first offense, a
mandatory one-year suspension.
   (2) For a nonserious violation, the time recommended to the
department by the Department of the California Highway Patrol.
   (3) For the purposes of this subdivision, "willful failure" means
any of the following:
   (A) An intentional and uncorrected failure to have a controlled
substances and alcohol testing program in place.
   (B) An intentional and uncorrected failure to enroll an employed
driver into the controlled substances and alcohol testing program.
   (C) A knowing use of a medically disqualified driver, including
the failure to remove the driver from safety-sensitive duties upon
notification of the medical disqualification.
   (D) An attempt to conceal legal deficiencies in the motor carrier'
s controlled substances and alcohol testing program.
   (d) The department, pending a hearing in the matter pursuant to
subdivision (f), may suspend a carrier's permit.
   (e) (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) 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,
unless the permit is suspended for another reason or has been
revoked.
   (f) Whenever the department suspends the permit of any carrier
pursuant to subdivision (b), (c), or paragraph (3) of subdivision
(i), 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 (e).
   (g) Notwithstanding any other provision of this code, a hearing
shall not be provided if 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.
   (h) 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.
   (i) (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 may immediately suspend the motor carrier
permit of any motor carrier that the department determines to be in
violation of paragraph (2).
   (j) This section shall become operative on January 1, 2016.
  SEC. 19.  Section 40000.22 of the Vehicle Code is amended to read:
   40000.22.  (a) A violation of subdivision (e) of Section 34501,
subdivision (f) of Section 34501.12, or subdivision (c) of Section
34501.14, relating to applications for inspections, is a misdemeanor
and not an infraction.
   (b) A violation of Division 14.85 (commencing with Section 34600),
relating to motor carriers of property, is a misdemeanor and not an
infraction.
   (c) This section shall remain in effect only until January 1,
2016, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2016, deletes or extends
that date.
  SEC. 20.  Section 40000.22 is added to the Vehicle Code, to read:
   40000.22.  (a) A violation of subdivision (e) of Section 34501,
subdivision (b) or (d) of Section 34501.12, or subdivision (c) of
Section 34501.14, relating to applications for inspections, is a
misdemeanor and not an infraction.
   (b) A violation of Division 14.85 (commencing with Section 34600),
relating to motor carriers of property, is a misdemeanor and not an
infraction.
   (c) This section shall become operative on January 1, 2016.
  SEC. 21.  Section 13.5 of this bill incorporates amendments to
Section 34601 of the Vehicle Code proposed by both this bill and
Assembly Bill 501. It shall only become operative if (1) both bills
are enacted and become effective on or before January 1, 2014, (2)
each bill amends Section 34601 of the Vehicle Code, and (3) this bill
is enacted after Assembly Bill 501, in which case Section 13 of this
bill shall not become operative.
  SEC. 22.  No reimbursement is required by this act pursuant to
Section 6 of Article XIII B 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 XIII B of the California
Constitution.              
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