Bill Text: CA AB636 | 2009-2010 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Charter-party carriers: busdrivers.

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Passed) 2009-10-11 - Chaptered by Secretary of State - Chapter 248, Statutes of 2009. [AB636 Detail]

Download: California-2009-AB636-Amended.html

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BILL NUMBER: AB 636	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JULY 16, 2009
	AMENDED IN SENATE  JUNE 26, 2009
	AMENDED IN SENATE  JUNE 23, 2009
	AMENDED IN ASSEMBLY  APRIL 13, 2009

INTRODUCED BY   Assembly Member Jones

                        FEBRUARY 25, 2009

   An act to amend Section 5387 of, and to add Section 5387.3 to, the
Public Utilities Code, and to amend Section 13369 of, and to add
Section  13369.5   14602.9  to, the Vehicle
Code, relating to charter-party carriers.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 636, as amended, Jones. Charter-party carriers: busdrivers.
   (1) The Passenger Charter-Party Carriers Act, with certain
exceptions, prohibits a charter-party carrier of passengers from
engaging in transportation services subject to regulation by the
Public Utilities Commission without obtaining a specified certificate
or permit, as appropriate, from the commission. The act makes it
unlawful, among other things, for the owner of a charter-party
carrier of passengers to permit the operation of any vehicle upon any
public highway for compensation without having obtained from the
commission a certificate or permit, as specified, pursuant to the
act.
   This bill would require the commission to  permanently revoke
the authority to operate a charter-party carrier or to 
permanently bar from receiving a permit or certificate from the
commission a charter-party carrier that operates a bus without having
been issued a permit from the commission, operates a bus with a
suspended permit from the commission, has one or more buses
improperly registered with the Department of Motor Vehicles, or
knowingly employs a busdriver who has not been issued the required
driver's license  of the proper class  ,  a passenger
vehicle  endorsement, or  the proper  certificate to
drive a bus. The bill also would  permanently prohibit
  suspend for a period of 5 years  a person who
drives a bus for a charter-party carrier without having been issued
the proper driver's license  of the proper class  , 
passenger vehicle  endorsement, or  the required 
certificate from driving a bus of any kind. The bill would require
the Department of Motor Vehicles to refuse to issue or renew, or to
suspend or revoke, that person's  driving privilege 
 passenger vehicle endorsement  and would provide that such
a person would be  permanently  ineligible for
 an   a passenger vehicle  endorsement that
would permit him or her to drive a bus, as defined  , for 5
years  .
   The bill would also authorize a charter-party carrier subject to
the bar described above  ,  that has received a notice of
refusal or revocation of its permit to operate  or a person
who has received a notice of refusal to issue or renew, or a notice
of suspension or revocation of, his or her driver's license,
endorsement, or certificate  pursuant to these provisions,
to submit a written request for a specified hearing within 15 days
after the mailing of the notice.
   The bill would  require   authorize  an
officer of the Department of the California Highway Patrol 
who stops or inspects   to impound  a bus of a
charter-party carrier that is operating a bus without having been
issued a permit  or certificate  from the commission,
operates a bus with a suspended permit  or certificate  from
the commission, or is operating a bus that is being driven by a
driver to whom the appropriate  driver's  license  of
the proper class  ,  a passenger vehicle  endorsement,
or  the required  certificate has not been issued  ,
to impound the bus  . The bill would also prohibit the
commission from issuing a new permit  or certificate  to
operate a charter-party carrier if an officer, director, or owner of
that charter-party carrier was an officer, director, or owner of a
charter-party carrier that  has its authority to operate as a
charter-party carrier permanently revoked by the commission or 
was permanently barred from receiving a permit or certificate from
the commission pursuant to these provisions.
   (2) Under existing law, a violation of the Passenger Charter-Party
Carriers Act, or a violation of an order or direction of the
commission issued pursuant to the act, is a crime.
   Because the provisions of this bill would be a part of the act and
because a violation of those provisions or of an order or decision
of the commission implementing those provisions would be a crime, the
bill would impose a state-mandated local program by creating new
crimes.
   (3) 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.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.


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

  SECTION 1.  Section 5387 of the Public Utilities Code is amended to
read:
   5387.  (a) It is unlawful for the owner of a charter-party carrier
of passengers to permit the operation of a vehicle upon a public
highway for compensation without (1) having obtained from the
commission a certificate or permit pursuant to this chapter, (2)
having complied with the vehicle identification requirements of
Section 5385, 5385.5, or 5385.6, and (3) having complied with the
accident liability protection requirements of Section 5391.
   (b) A person who drives a bus for a charter-party carrier without
 having been issued the proper driver's license, endorsement,
or   having a current and valid driver's license of the
proper class, a passenger vehicle endorsement, or the required 
certificate shall be  permanently prohibited  
suspended  from driving a bus of any kind, including, but not
limited to, a bus, schoolbus, school pupil activity bus, or transit
bus,  and from receiving a license or endorsement that would
permit the driving of any bus.   with passengers for a
period of five years pursuant to Section 13369 of the Vehicle Code.

   (c) (1) A charter-party carrier that (A) operates a bus without
having been issued a permit  or certificate  from the
commission, (B) operates a bus with a suspended permit from the
commission, (C) knowingly employs a busdriver who  has not
been issued the required license, endorsement, or certificate
  does not have a current and valid driver's license of
the proper class, a passenger vehicle endorsement, or the required
certificate  to drive a bus, or (D) has one or more buses
improperly registered with the Department of Motor Vehicles, shall
 have its authority to operate as a charter-party carrier
permanently revoked by the commission or  be permanently barred
from receiving a permit or certificate from the commission.
   (2) The commission shall not issue a new permit  or
certificate  to operate as a charter-party carrier if any
officer, director, or owner of that charter-party carrier was an
officer, director, or owner of a charter-party carrier  that had
its authority to operate as a charter-party carrier permanently
revoked by the commission or  that was permanently barred from
receiving a permit or certificate from the commission pursuant to
this subdivision. 
   (d) When an officer of the Department of the California Highway
Patrol stops or inspects a bus of a charter-party carrier that (1) is
operating a bus without having been issued a permit from the
commission, (2) operates a bus with a suspended permit from the
commission, or (3) is operating a bus is being driven by a driver to
whom the appropriate license, endorsement, or certificate has not
been issued, the bus shall be impounded for 30 days pursuant to the
provisions and procedures for the impoundment and release of vehicles
under Section 14602.6 of the Vehicle Code. The charter-party carrier
shall have a right to a hearing by the impounding agency. 

   (d) An officer of the Department of the California Highway Patrol
may impound a bus of a charter-party carrier for 30 days pursuant to
Section 14602.9 of the Vehicle Code if the officer determines that
any of the following violations occurred while the bus driver was
operating the bus of a charter-party carrier:  
   (1) The driver was operating the bus of a charter-party carrier
when the charter-party carrier did not have a permit or certificate
issued by the commission.  
   (2) The driver was operating the bus of a charter-party carrier
when the charter-party carrier was operating the bus with a suspended
permit or certificate from the commission.  
   (3) The driver was operating the bus of a charter-party carrier
without having a current and valid driver's license of the proper
class, a passenger vehicle endorsement, or the required certificate.

  SEC. 2.  Section 5387.3 is added to the Public Utilities Code, to
read:
   5387.3.  (a) A charter-party carrier described in subdivision (c)
of Section 5387, that has received a notice of refusal or revocation
of its permit to operate, may submit to the commission, within 15
days after the mailing of the notice, a written request for a
hearing. The charter-party carrier shall furnish a copy of the
request to the Department of the California Highway Patrol at the
same time that it makes its request for a hearing to the commission.
Failure to request a hearing, in writing, within the 15-day period is
a waiver of the right to a hearing.
   (b) Upon receipt by the commission of the hearing request, the
commission shall hold a hearing within a reasonable time, not to
exceed 21 days, and may appoint a hearing officer to conduct the
hearing. At the hearing, the burden of proof is on the charter-party
carrier to prove that it  is not a charter-party carrier
described in   was not in violation of  subdivision
(c) of Section 5387.
   (c) The refusal to, or revocation of, the permit to operate, may
only be rescinded by the hearing officer if the charter-party carrier
proves that it was not in violation of subdivision (c) of Section
5387, and that the basis of the refusal or revocation resulted from a
factual error.
  SEC. 3.  Section 13369 of the Vehicle Code is amended to read:
   13369.  (a) This section applies to the following endorsements and
certificates:
   (1) Passenger transportation vehicle.
   (2) Hazardous materials.
   (3) Schoolbus.
   (4) School pupil activity bus.
   (5) Youth bus.
   (6) General public paratransit vehicle.
   (7) Farm labor vehicle.
   (8) Vehicle used for the transportation of developmentally
disabled persons.
   (b) The department shall refuse to issue or renew, or shall
revoke, the certificate or endorsement of any person who meets the
following conditions:
   (1) Within three years, has committed any violation that results
in a conviction assigned a violation point count of two or more, as
defined in Sections 12810 and 12810.5. The department may not refuse
to issue or renew, nor may it revoke, a person's hazardous materials
or passenger transportation vehicle endorsement if the violation
leading to the conviction occurred in the person's private vehicle
and not in a commercial motor vehicle, as defined in Section 15210.
   (2) Within three years, has had his or her driving privilege
suspended, revoked, or on probation for any reason involving unsafe
operation of a motor vehicle. The department may not refuse to issue
or renew, nor may it revoke, a person's passenger transportation
vehicle endorsement if the person's driving privilege has, within
three years, been placed on probation only for any reason involving
unsafe operation of a motor vehicle.
   (3) Notwithstanding paragraphs (1) and (2), does not meet the
qualifications for issuance of a hazardous materials endorsement set
forth in Parts 383, 384, and 1572 of Title 49 of the Code of Federal
Regulations.
   (c) The department may refuse to issue or renew, or may suspend or
revoke, the certificate or endorsement of any person who meets any
of the following conditions:
   (1) Within 12 months, has been involved as a driver in three
accidents in which the driver caused or contributed to the causes of
the accidents.
   (2) Within 24 months, as a driver, caused or contributed to the
cause of an accident resulting in a fatality or serious injury or
serious property damage in excess of seven hundred fifty dollars
($750).
   (3) Has violated any provision of this code, or any rule or
regulation pertaining to the safe operation of a vehicle for which
the certificate or endorsement was issued.
   (4) Has violated any restriction of the certificate, endorsement,
or commercial driver's license.
   (5) Has knowingly made a false statement or failed to disclose a
material fact on an application for a certificate or endorsement.
   (6) Has been determined by the department to be a negligent or
incompetent operator.
   (7) Has demonstrated irrational behavior to the extent that a
reasonable and prudent person would have reasonable cause to believe
that the applicant's ability to perform the duties of a driver may be
impaired.
   (8) Excessively or habitually uses, or is addicted to, alcoholic
beverages, narcotics, or dangerous drugs.
   (9) Does not meet the minimum medical standards established or
approved by the department.
   (d) The department may cancel the certificate or endorsement of
any driver who meets any of the following conditions:
   (1) Does not have a valid driver's license of the appropriate
class.
   (2) Has requested cancellation of the certificate or endorsement.
   (3) Has failed to meet any of the requirements for issuance or
retention of the certificate or endorsement, including, but not
limited to, payment of the proper fee, submission of an acceptable
medical report and fingerprint cards, and compliance with prescribed
training requirements.
   (4) Has had his or her driving privilege suspended or revoked for
a cause involving other than the safe operation of a motor vehicle.
   (e) (1) The department shall refuse to issue or renew, or shall
suspend or revoke, the  driver's license, endorsement, or
certificate   passenger vehicle endorsement  of a
person who violates subdivision (b) of Section 5387 of the Public
Utilities Code.
   (2) A person found to be in violation of subdivision (b) of
Section 5387 of the Public Utilities Code shall be 
permanently  ineligible for  an   a
passenger vehicle  endorsement that would permit him or her to
drive a bus of any kind, including, but not limited to, a bus,
schoolbus, youth bus, school pupil activity bus, trailer bus, or a
transit bus  , with passengers, for a period of five years 
.
   (f) (1) Reapplication following refusal or revocation under
subdivision (b) or (c) may be made after a period of not less than
one year from the effective date of denial or revocation, except in
cases where a longer period of suspension or revocation is required
by law.
   (2) Reapplication following cancellation under subdivision (d) may
be made at any time without prejudice. 
  SEC. 4.    Section 13369.5 is added to the Vehicle
Code, to read:
   13369.5.  (a) A person who has received a notice of refusal to
issue or renew, or a notice of suspension or revocation of, his or
her driver's license, endorsement, or certificate pursuant to
paragraph (1) of subdivision (e) of Section 13369 may submit to the
department, within 15 days after the mailing of the notice, a written
request for a hearing. Failure to request a hearing, in writing,
within 15 days is a waiver of the right to a hearing.
   (b) Upon receipt by the department of the hearing request, the
department may stay the action until a hearing is conducted and the
final decision is made by the hearing officer. The department shall
not stay the action when there is reasonable cause to believe that
the stay would pose a threat to a member of the motoring public who
may require the services of a charter-party carrier.
   (c) A person whose driver's license, endorsement, or certificate
has been refused or revoked pursuant to paragraph (1) of subdivision
(e) of Section 13369 is not entitled to a hearing whenever the action
by the department is made mandatory by this article or any other
applicable law or regulation.
   (d) Upon receipt of a request for a hearing, and when the
requesting party is entitled to a hearing under this article, the
department shall appoint a hearing officer to conduct a hearing in
accordance with Section 14112. 
   SEC. 4.    Section 14602.9 is added to the  
Vehicle Code   , to read:  
   14602.9.  (a) An officer of the Department of the California
Highway Patrol may impound a bus of a charter-party carrier for 30
days if the officer determines that any of the following violations
occurred while the bus driver was operating the bus of a
charter-party carrier:
   (1) The driver was operating the bus of a charter-party carrier
when the charter-party carrier did not have a permit or certificate
issued by the Public Utilities Commission, pursuant to Section 5375
of the Public Utilities Code.
   (2) The driver was operating the bus of a charter-party carrier
when the charter-party carrier was operating the bus with a suspended
permit or certificate from the Public Utilities Commission.
   (3) The driver was operating the bus of a charter-party carrier
without having a current and valid driver's license of the proper
class, a passenger vehicle endorsement, or the required certificate.
   (b) Within two working days after impoundment, the impounding
agency shall send a notice by certified mail, return receipt
requested, to the legal owner of the vehicle, at the address obtained
from the department, informing the owner that the vehicle has been
impounded. Failure to notify the legal owner within two working days
shall prohibit the impounding agency from charging for more than 15
days, impoundment when the legal owner redeems the impounded vehicle.
The impounding agency shall maintain a published telephone number
that provides information 24 hours a day regarding the impoundment of
vehicles and the rights of a registered owner to request a hearing.
   (c) The registered and legal owner of a vehicle that is removed
and seized under subdivision (a) or his or her agent shall be
provided the opportunity for a storage hearing to determine the
validity of, or consider any mitigating circumstances attendant to,
the storage, in accordance with Section 22852.
   (d) (1) The impounding agency shall release the vehicle to the
registered owner or his or her agent prior to the end of the
impoundment period under any of the following circumstances:
   (A) When the vehicle is a stolen vehicle.
   (B) When the vehicle is subject to bailment and is driven by an
unlicensed employee of a business establishment, including a parking
service or repair garage.
   (C) When the driver of the vehicle is not the sole registered
owner of the vehicle and the vehicle is being released to another
registered owner of the vehicle who agrees not to allow the driver to
use the vehicle until after the end of the impoundment period and
the charter-party carrier has been issued a valid permit from the
Public Utilities Commission, pursuant to Section 5375 of the Public
Utilities Code.
   (2) A vehicle shall not be released pursuant to this subdivision
without presentation of the registered owner's or agent's currently
valid driver's license to operate the vehicle and proof of current
vehicle registration, or upon order of a court.
   (e) The registered owner or his or her agent is responsible for
all towing and storage charges related to the impoundment, and any
administrative charges authorized under Section 22850.5.
   (f) A vehicle removed and seized under subdivision (a) shall be
released to the legal owner of the vehicle or the legal owner's agent
prior to the end of the impoundment period if all of the following
conditions are met:
   (1) The legal owner is a motor vehicle dealer, bank, credit union,
acceptance corporation, or other licensed financial institution
legally operating in this state, or is another person who is not the
registered owner and holds a security interest in the vehicle.
   (2) The legal owner or the legal owner's agent pays all towing and
storage fees related to the seizure of the vehicle. A lien sale
processing fee shall not be charged to the legal owner who redeems
the vehicle prior to the 10th day of impoundment. The impounding
authority or any person having possession of the vehicle shall not
collect from the legal owner of the type specified in paragraph (1),
or the legal owner's agent, any administrative charges imposed
pursuant to Section 22850.5 unless the legal owner voluntarily
requested a poststorage hearing.
   (3) (A) The legal owner or the legal owner's agent presents either
lawful foreclosure documents or an affidavit of repossession for the
vehicle, and a security agreement or title showing proof of legal
ownership for the vehicle. All presented documents may be originals,
photocopies, or facsimile copies, or may be transmitted
electronically. The impounding agency shall not require a document to
be notarized. The impounding agency may require the agent of the
legal owner to produce a photocopy or facsimile copy of its
repossession agency license or registration issued pursuant to
Chapter 11 (commencing with Section 7500) of Division 3 of the
Business and Professions Code, or to demonstrate, to the satisfaction
of the impounding agency, that the agent is exempt from licensure
pursuant to Section 7500.2 or 7500.3 of the Business and Professions
Code.
   (B) Administrative costs authorized under subdivision (a) of
Section 22850.5 shall not be charged to the legal owner of the type
specified in paragraph (1), who redeems the vehicle unless the legal
owner voluntarily requests a poststorage hearing. A city, county, or
state agency shall not require a legal owner or a legal owner's agent
to request a poststorage hearing as a requirement for release of the
vehicle to the legal owner or the legal owner's agent. The
impounding agency shall not require any documents other than those
specified in this paragraph. The impounding agency shall not require
any documents to be notarized.
   (C) As used in this paragraph, "foreclosure documents" means an
"assignment" as that term is defined in subdivision (o) of Section
7500.1 of the Business and Professions Code.
   (g) (1) A legal owner or the legal owner's agent who obtains
release of the vehicle pursuant to subdivision (f) may not release
the vehicle to the registered owner of the vehicle or any agents of
the registered owner, unless the registered owner is a rental car
agency, until after the termination of the impoundment period.
   (2) The legal owner or the legal owner's agent shall not
relinquish the vehicle to the registered owner until the registered
owner or that owner's agent presents his or her valid driver's
license or valid temporary driver's license to the legal owner or the
legal owner's agent. The legal owner or the legal owner's agent
shall make every reasonable effort to ensure that the license
presented is valid.
   (3) Prior to relinquishing the vehicle, the legal owner may
require the registered owner to pay all towing and storage charges
related to the impoundment and any administrative charges authorized
under Section 22850.5 that were incurred by the legal owner in
connection with obtaining custody of the vehicle.
   (h) (1) A vehicle removed and seized under subdivision (a) shall
be released to a rental agency prior to the end of the impoundment
period if the agency is either the legal owner or registered owner of
the vehicle and the agency pays all towing and storage fees related
to the seizure of the vehicle.
   (2) The owner of a rental vehicle that was seized under this
section may continue to rent the vehicle upon recovery of the
vehicle. However, the rental agency shall not rent another vehicle to
the driver of the vehicle that was seized until the impoundment
period has expired.
   (3) The rental agency may require the person to whom the vehicle
was rented to pay all towing and storage charges related to the
impoundment and any administrative charges authorized under Section
22850.5 that were incurred by the rental agency in connection with
obtaining custody of the vehicle.
   (i) Notwithstanding any other provision of this section, the
registered owner, and not the legal owner, shall remain responsible
for any towing and storage charges related to the impoundment, any
administrative charges authorized under Section 22850.5, and any
parking fines, penalties, and administrative fees incurred by the
registered owner.
   (j) The impounding agency is not liable to the registered owner
for the improper release of the vehicle to the legal owner or the
legal owner's agent provided the release complies with this section.
   (k) For the purposes of this section, a "bus" means a bus as
defined by Section 233 or a tour bus as defined by Section 612.
   (l) For the purposes of this section, a "charter-party carrier"
means a charter-party carrier as defined by Section 5360 of the
Public Utilities Code. 
  SEC. 5.  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.