BILL NUMBER: SB 541 CHAPTERED
BILL TEXT
CHAPTER 718
FILED WITH SECRETARY OF STATE OCTOBER 9, 2015
APPROVED BY GOVERNOR OCTOBER 9, 2015
PASSED THE SENATE SEPTEMBER 10, 2015
PASSED THE ASSEMBLY SEPTEMBER 8, 2015
AMENDED IN ASSEMBLY SEPTEMBER 3, 2015
AMENDED IN ASSEMBLY AUGUST 31, 2015
AMENDED IN ASSEMBLY AUGUST 17, 2015
AMENDED IN ASSEMBLY JULY 16, 2015
AMENDED IN SENATE JUNE 2, 2015
AMENDED IN SENATE MAY 5, 2015
AMENDED IN SENATE APRIL 6, 2015
INTRODUCED BY Senator Hill
FEBRUARY 26, 2015
An act to amend Sections 5102, 5317.5, 5352, 5359, and 5387 of, to
add Sections 1046 and 5417.5 to, and to add and repeal Sections
918.1 and 918.2 of, the Public Utilities Code, and to amend Section
14602.9 of the Vehicle Code, relating to transportation.
LEGISLATIVE COUNSEL'S DIGEST
SB 541, Hill. Public Utilities Commission: for-hire transportation
carriers: enforcement.
(1) The California Constitution establishes the Public Utilities
Commission, with jurisdiction over the transportation of passengers
and property by transportation companies, to the extent not preempted
by federal law. The Household Goods Carriers Act and the Passenger
Charter-party Carriers' Act contain statements of the purposes of
those acts and the use of the public highways pursuant to those acts.
This bill would specify activities to be undertaken by the
commission to achieve these purposes. The bill would require the
commission to hire an independent entity for not more than $250,000
to, in consultation with carrier trade associations for industries
under the jurisdiction of the commission, assess the commission's
capabilities to carry out the specified activities and to report to
the Legislature no later than January 1, 2017, which report would be
required to contain an analysis of current capabilities and
deficiencies, and recommendations to overcome any deficiencies
identified.
(2) A passenger stage corporation, as defined, which operates
between fixed termini or over a regular route, is a common carrier
subject to regulation by the commission pursuant to the Public
Utilities Act. The Public Utilities Act, with certain exceptions,
requires that a passenger stage corporation obtain a certificate of
public convenience and necessity from the commission to operate on
any public highway in the state and requires it to display an
identifying symbol issued by the commission. The Public Utilities Act
makes any public utility that violates the Public Utilities Act, or
that fails to comply with any part of any order, decision, rule,
direction, demand, or requirement of the commission guilty of a crime
and makes it a misdemeanor for a person or corporation to hold out
to the public that the person or corporation is in operation as a
passenger stage corporation without having a valid certificate issued
by the commission. The Public Utilities Act authorizes the
commission to impose various fines and penalties for any violation of
the act or an order, decision, rule, direction, demand, or
requirement of the commission. The Public Utilities Act provides that
the Department of the California Highway Patrol (CHP) has the
primary responsibility for regulating the safety of operation of
passenger stage corporations and requires the commission to cooperate
with the CHP to ensure safe operation of these carriers.
A charter-party carrier of passengers, as defined, is subject to
the jurisdiction and control of the commission under the Passenger
Charter-party Carriers' Act. The Passenger Charter-party Carriers'
Act requires a charter-party carrier of passengers to (A) obtain a
certificate of public convenience and necessity or a permit issued by
the commission, (B) operate within the state on a prearranged basis,
as defined, (C) comply with specified vehicle identification
requirements, and (D) comply with accident liability protection
requirements. The Passenger Charter-party Carriers' Act additionally
prohibits a charter-party carrier of passengers from advertising its
services, or in any manner representing its services, as being a
taxicab or taxi service. The Passenger Charter-party Carriers' Act
makes violation of these requirements a crime. The Passenger
Charter-party Carriers' Act authorizes the commission to impose fines
and penalties for violations of the act.
This bill would authorize peace officers, as defined, to enforce
and assist in the enforcement of criminal violations of the Public
Utilities Act, with respect to passenger stage corporations, and the
Passenger Charter-party Carriers' Act, with respect to charter-party
carriers of passengers. The bill would require the commission to
coordinate enforcement of those acts with peace officers through
educational outreach and establishing lines of communication so that
the commission is notified if an action is commenced so that the
commission may take appropriate action to enforce the fine and
penalty provisions of the acts. The bill would require the commission
to ensure that the Passenger Charter-party Carriers' Act is enforced
and obeyed and that violations are promptly prosecuted and that
penalty moneys due to the state are recovered and collected. The bill
would authorize the Attorney General, a district attorney, or a city
attorney to institute and prosecute actions or proceedings for the
violation of the Passenger Charter-party Carriers' Act.
(3) The Passenger Charter-party Carriers' Act authorizes a CHP
officer to impound a bus of a charter-party carrier of passengers for
30 days if the officer determines that (A) the driver was operating
the bus when the carrier did not have a permit or certificate issued
by the commission or the carrier's permit or certificate was
suspended, or (B) the driver was operating the bus without having a
current and valid driver's license of the proper class, a passenger
vehicle endorsement, or the required certificate. A provision of the
Vehicle Code also authorizes a CHP officer to impound a bus of a
charter-party carrier of passengers for 30 days if the officer makes
any of the determinations described above.
This bill would authorize a peace officer, as defined, to impound
a bus or limousine, as defined, of a charter-party carrier of
passengers, except as specified, for 30 days in those circumstances.
The bill would revise the Vehicle Code to authorize a peace officer,
identically defined, to impound a bus or limousine of a charter-party
carrier of passengers, except as specified, for 30 days in those
circumstances and authorize a peace officer to impound a bus or
limousine belonging to a passenger stage corporation for 30 days if
the officer determines (A) the driver was operating the bus or
limousine when the passenger stage corporation did not have a
required certificate of public convenience and necessity issued by
the commission, (B) the driver was operating the bus or limousine
when the operating rights or certificate of public convenience and
necessity of a passenger stage corporation was suspended, canceled,
or revoked, or (C) the driver was operating the bus or limousine
without having a current and valid driver's license of the proper
class.
(4) A household goods carrier, as defined, which transports
household goods and personal effects over any public highway in the
state for compensation, is subject to regulation by the commission
pursuant to the Household Goods Carriers Act. The Household Goods
Carriers Act requires that a household goods carrier obtain a permit
from the commission to transport household goods entirely within the
state and obtain a valid operating authority issued by the Federal
Motor Carrier Safety Administration to transport household goods and
personal effects from this state to another or from another state to
this state. The Household Goods Carriers Act additionally requires a
household goods carrier to comply with specified vehicle
identification requirements and comply with accident liability
protection requirements. The Household Goods Carriers Act makes a
violation of the requirements of the act a misdemeanor, authorizes
the commission to impose fines and penalties for violations of the
act, and requires the commission to ensure that the act is enforced
and obeyed, that violations are promptly prosecuted and that penalty
moneys due to the state are recovered and collected.
This bill would authorize peace officers, as defined, to enforce
and assist in the enforcement of criminal violations of the Household
Goods Carriers Act. The bill would require the commission to
coordinate enforcement of the Household Goods Carriers Act with peace
officers through educational outreach and establishing lines of
communication so that peace officers can notify the commission if an
action is commenced so that the commission may take appropriate
action to enforce the fine and penalty provisions of the Household
Goods Carriers Act.
(5) This bill would incorporate additional changes in Section 5387
of the Public Utilities Code proposed by SB 697 that would become
operative only if SB 697 and this bill are both chaptered and become
effective on or before January 1, 2016, and this bill is chaptered
last.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. (a) The Transportation Enforcement Branch of the Safety
and Enforcement Division of the state's Public Utilities Commission
has regulatory oversight of various for-hire transportation carriers,
including limousines, airport shuttles, charter buses, and moving
companies. The Transportation Enforcement Branch administers
licensing, enforces state law, and manages consumer complaints to
ensure the reliable and safe transport of passengers and goods within
the state.
(b) The California State Auditor's Report 2013-130 concluded that
the Transportation Enforcement Branch does not adequately ensure that
passenger carriers operate safely. Among the numerous problems cited
by the California State Auditor are that the branch does not have
formal policies for dealing with complaints against carriers, it does
not resolve complaints in a timely manner, it does not have adequate
investigatory techniques, and it fails to properly account for fees
paid by carriers. In addition, the California State Auditor concluded
that without major improvements to its management processes, the
branch has little ability to resolve its deficiencies.
(c) While the commission is undertaking an internal process to
implement the California State Auditor's recommendations, it is in
the public interest for the Legislature to further ensure that the
Transportation Enforcement Branch improves its performance to ensure
passenger safety.
SEC. 2. Section 918.1 is added to the Public Utilities Code, to
read:
918.1. (a) The commission shall hire an independent entity for
not more than two hundred fifty thousand dollars ($250,000) to, in
consultation with carrier trade associations for industries under the
jurisdiction of the commission, assess the commission's capabilities
to carry out the activities specified in subdivision (b) of Section
5102 and shall report to the Legislature no later than January 1,
2017. The report shall contain an analysis of current capabilities
and deficiencies, and recommendations to overcome any deficiencies
identified.
(b) The report shall be submitted in compliance with Section 9795
of the Government Code.
(c) Pursuant to Section 10231.5 of the Government Code, this
section shall remain in effect only until January 1, 2021, and as of
that date is repealed, unless a later enacted statute, that is
enacted before January 1, 2021, deletes or extends that date.
SEC. 3. Section 918.2 is added to the Public Utilities Code, to
read:
918.2. (a) The commission shall hire an independent entity for
not more than two hundred fifty thousand dollars ($250,000) to, in
consultation with carrier trade associations for industries under the
jurisdiction of the commission, assess the commission's capabilities
to carry out the activities specified in subdivision (b) of Section
5352 and shall report to the Legislature no later than January 1,
2017. The report shall contain an analysis of current capabilities
and deficiencies, and recommendations to overcome any deficiencies
identified.
(b) The report shall be submitted in compliance with Section 9795
of the Government Code.
(c) Pursuant to Section 10231.5 of the Government Code, this
section shall remain in effect only until January 1, 2021, and as of
that date is repealed, unless a later enacted statute, that is
enacted before January 1, 2021, deletes or extends that date.
(d) The commission may combine the information required to be
reported by this section with the report prepared pursuant to Section
918.1.
SEC. 4. Section 1046 is added to the Public Utilities Code, to
read:
1046. (a) For purposes of this section, the following terms have
the following meanings:
(1) "Bus" means a vehicle designed, used, or maintained for
carrying more than 10 persons, including the driver, which is used to
transport persons for compensation or profit.
(2) "Limousine" means any sedan or sport utility vehicle, of
either standard or extended length, with a seating capacity of not
more than 10 passengers including the driver, used in the
transportation of passengers for hire on a prearranged basis within
this state, and includes a modified limousine as defined in Section
1042.1.
(3) "Peace officer" means a person who is designated as a peace
officer pursuant to Chapter 4.5 (commencing with Section 830) of
Title 3 of Part 2 of the Penal Code.
(b) A peace officer may, with respect to a passenger stage
corporation, enforce and assist in the enforcement of Sections 2110
and 2112, resulting from a violation of Section 1031, 1041, or 1045,
or more than one of those sections. A peace officer may additionally
enforce and assist in the enforcement of Sections 1034.5 and 2119. In
any case in which an arrest authorized by this subdivision is made
for an offense declared to be a misdemeanor, and the person arrested
does not demand to be taken before a magistrate, the arresting peace
officer may, instead of taking such person before a magistrate,
follow the procedure prescribed by Chapter 5C (commencing with
Section 853.5) of Title 3 of Part 2 of the Penal Code. The provisions
of that chapter shall thereafter apply with reference to any
proceeding based upon the issuance of a citation pursuant to this
authority.
(c) A peace officer may impound a bus or limousine operated by a
passenger stage corporation pursuant to Section 14602.9 of the
Vehicle Code if the peace officer determines that any of the
following violations occurred while the driver was operating the
vehicle:
(1) The driver was operating the bus or limousine when the
passenger stage corporation did not have a certificate of public
convenience and necessity issued by the commission as required
pursuant to this article.
(2) The driver was operating the bus or limousine when the
operating rights or certificate of public convenience and necessity
of a passenger stage corporation was suspended, canceled, or revoked
pursuant to Section 1033.5, 1033.7, or 1045.
(3) The driver was operating the bus or limousine without having a
current and valid driver's license of the proper class.
(d) The commission shall coordinate enforcement of this section
with those peace officers likely to be involved in enforcing this
section, including undertaking both of the following:
(1) Educational outreach to promote awareness among those peace
officers about the requirements of Sections 1031, 1034.5, 1041, 1045,
2110, 2112, and 2119.
(2) Establishing lines of communication so that the commission is
notified if an action is commenced to enforce the requirements of
those sections specified in subdivision (b), so that the commission
may take appropriate action to enforce the fine and penalty
provisions of Chapter 11 (commencing with Section 2100).
(e) The Legislature finds and declares that this section is
intended to facilitate and enhance the commission's performance of
its functions pursuant to Section 2101 and not diminish the
commission's authority or responsibility pursuant to that section.
(f) This section does not authorize the impoundment of privately
owned personal vehicles that are not common carriers nor the
impoundment of vehicles used in transportation for compensation by
charter-party carriers of passengers that are not required to carry
individual permits.
SEC. 5. Section 5102 of the Public Utilities Code is amended to
read:
5102. (a) The use of the public highways for the transportation
of used household goods and personal effects for compensation is a
business affected with a public interest. It is the purpose of this
chapter to preserve for the public the full benefit and use of public
highways consistent with the needs of commerce without unnecessary
congestion or wear and tear upon those highways; to secure to the
people just, reasonable, and nondiscriminatory rates for
transportation by carriers operating upon the highways; to secure
full and unrestricted flow of traffic by motor carriers over the
highways that will adequately meet reasonable public demands by
providing for the regulation of rates of all carriers so that
adequate and dependable service by all necessary carriers shall be
maintained and the full use of the highways preserved to the public;
and to promote fair dealing and ethical conduct in the rendition of
services involving or incident to the transportation of household
goods and personal effects.
(b) To achieve the purposes of subdivision (a) the commission
shall do all of the following:
(1) Prioritize the timely processing of applications and hold
"application workshops" for potential applicants around the state.
(2) Enable electronic filing of applications, reports, and fee
payments.
(3) Dedicate staff to answering telephone calls, mailings, and
electronic inquiries from carriers.
(4) Prioritize the timely processing of consumer complaints.
(5) Implement electronic case tracking of complaints and their
disposition.
(6) Implement a process for appropriate and timely enforcement
against illegally operating carriers, including by performing
staff-driven investigations and performing enforcement through sting
operations and other forms of presence in the field.
(7) Maintain relationships with, and implement outreach and
education programs to, local law enforcement, district attorneys, and
airports, and coordinate with law enforcement agencies pursuant to
subdivision (d) of Section 1046, subdivision (d) of Section 5317.5,
and subdivision (d) of Section 5417.5.
(8) Meet with carrier trade associations at least annually.
(9) Implement a consolidated case tracking system that integrates
each of the transportation program core functions and data
collection, administrative compliance details, complaints, and
investigations.
SEC. 6. Section 5317.5 of the Public Utilities Code is amended to
read:
5317.5. (a) The commission shall ensure that this chapter is
enforced and obeyed, and that violations thereof are promptly
prosecuted and that penalty moneys due to the state are recovered and
collected, and to this end it may sue in the name of the people of
the State of California. Upon the request of the commission, the
Attorney General or the district attorney of the proper county or
city and county may aid in any investigation, hearing, or trial had
under this chapter.
(b) For purposes of this section, "peace officer" means a person
designated as a peace officer pursuant to Chapter 4.5 (commencing
with Section 830) of Title 3 of Part 2 of the Penal Code.
(c) A peace officer may enforce and assist in the enforcement of
Sections 5311 and 5312, resulting from a violation of Section 5132,
5133, 5140, or 5286, or more than one of those sections. A peace
officer may additionally enforce and assist in the enforcement of
Sections 5311.3 and 5314.5. In any case in which an arrest authorized
by this subdivision is made for an offense declared to be a
misdemeanor, and the person arrested does not demand to be taken
before a magistrate, the arresting peace officer may, instead of
taking such person before a magistrate, follow the procedure
prescribed by Chapter 5C (commencing with Section 853.5) of Title 3
of Part 2 of the Penal Code. The provisions of that chapter shall
thereafter apply with reference to any proceeding based upon the
issuance of a citation pursuant to this authority.
(d) The commission shall coordinate enforcement of this section
with those peace officers likely to be involved in enforcing this
section, including undertaking both of the following:
(1) Educational outreach to promote awareness among those peace
officers about the requirements of Sections 5132, 5133, 5140, 5286,
5311, 5311.3, 5312, and 5314.5.
(2) Establishing lines of communication so that the commission is
notified if an action is commenced to enforce the requirements of
those sections specified in subdivision (c), so that the commission
may take appropriate action to enforce the fine and penalty
provisions of this article.
(e) The Attorney General, a district attorney of the proper county
or city and county, or a city attorney may institute and prosecute
actions or proceedings for the violation of any law committed in
connection with, or arising from, a transaction involving the
transportation of household goods and personal effects.
SEC. 7. Section 5352 of the Public Utilities Code is amended to
read:
5352. (a) The use of the public highways for the transportation
of passengers for compensation is a business affected with a public
interest. It is the purpose of this chapter to preserve for the
public full benefit and use of public highways consistent with the
needs of commerce without unnecessary congestion or wear and tear
upon the highways; to secure to the people adequate and dependable
transportation by carriers operating upon the highways; to secure
full and unrestricted flow of traffic by motor carriers over the
highways which will adequately meet reasonable public demands by
providing for the regulation of all transportation agencies with
respect to accident indemnity so that adequate and dependable service
by all necessary transportation agencies shall be maintained and the
full use of the highways preserved to the public; and to promote
carrier and public safety through its safety enforcement regulations.
(b) To achieve the purposes of subdivision (a) the commission
shall do all of the following:
(1) Prioritize the timely processing of applications and hold
"application workshops" for potential applicants around the state.
(2) Enable electronic filing of applications, reports, and fee
payments.
(3) Dedicate staff to answering telephone calls, mailings, and
electronic inquiries from carriers.
(4) Prioritize the timely processing of consumer complaints.
(5) Implement electronic case tracking of complaints and their
disposition.
(6) Implement a process for appropriate and timely enforcement
against illegally operating carriers, including by performing
staff-driven investigations and performing enforcement through sting
operations and other forms of presence in the field.
(7) Maintain relationships with, and implement outreach and
education programs to, local law enforcement, district attorneys, and
airports, and coordinate with law enforcement agencies pursuant to
subdivision (d) of Section 1046, subdivision (d) of Section 5317.5,
and subdivision (d) of Section 5417.5.
(8) Meet with carrier trade associations at least annually.
(9) Implement a consolidated case tracking system that integrates
each of the transportation program core functions and data
collection, administrative compliance details, complaints, and
investigations.
SEC. 8. Section 5359 of the Public Utilities Code is amended to
read:
5359. (a) "Motor vehicle" means a vehicle which is
self-propelled.
(b) "Bus" means a vehicle designed, used, or maintained for
carrying more than 10 persons, including the driver, which is used to
transport persons for compensation or profit.
(c) "Limousine" means any sedan or sport utility vehicle, of
either standard or extended length, with a seating capacity of not
more than 10 passengers including the driver, used in the
transportation of passengers for hire on a prearranged basis within
this state, and includes a modified limousine as defined in
subdivision (d) of Section 1042.
SEC. 9. 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 or 5385.5, 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 a current and valid driver's license of the proper class, a
passenger vehicle endorsement, or the required certificate shall be
suspended from driving a bus of any kind, including, but not limited
to, a bus, schoolbus, school pupil activity bus, or transit bus, with
passengers for a period of five years pursuant to Section 13369 of
the Vehicle Code.
(c) (1) A charter-party carrier 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 if it commits any of the following
acts:
(A) Operates a bus without having been issued a permit or
certificate from the commission.
(B) Operates a bus with a permit that was suspended by the
commission pursuant to Section 5378.5.
(C) Commits three or more liability insurance violations within a
two-year period for which it has been cited.
(D) Operates a bus with a permit that was suspended by the
commission during a period that the charter-party carrier's liability
insurance lapsed for which it has been cited.
(E) Knowingly employs a busdriver who 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.
(F) Has one or more buses improperly registered with the
Department of Motor Vehicles.
(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) A peace officer, as designated pursuant to Chapter 4.5
(commencing with Section 830) of Title 3 of Part 2 of the Penal Code,
may impound a bus or limousine of a charter-party carrier of
passengers for 30 days pursuant to Section 14602.9 of the Vehicle
Code if the peace officer determines that any of the following
violations occurred while the driver was operating the bus or
limousine of the charter-party carrier:
(1) The driver was operating the bus or limousine of a
charter-party carrier of passengers when the charter-party carrier of
passengers did not have a permit or certificate issued by the
commission.
(2) The driver was operating the bus or limousine of a
charter-party carrier of passengers when the charter-party carrier of
passengers was operating with a suspended permit or certificate from
the commission.
(3) The driver was operating the bus or limousine of a
charter-party carrier of passengers without having a current and
valid driver's license of the proper class, a passenger vehicle
endorsement, or the required certificate.
(e) This section does not authorize the impoundment of privately
owned personal vehicles that are not common carriers nor the
impoundment of vehicles used in transportation for compensation by
charter-party carriers of passengers that are not required to carry
individual permits.
SEC. 9.5. 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, 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 a current and valid driver's license of the proper class, a
passenger vehicle endorsement, or the required certificate shall be
suspended from driving a bus of any kind, including, but not limited
to, a bus, schoolbus, school pupil activity bus, or transit bus, with
passengers for a period of five years pursuant to Section 13369 of
the Vehicle Code.
(c) (1) A charter-party carrier 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 if it commits any of the following
acts:
(A) Operates a bus without having been issued a permit or
certificate from the commission.
(B) Operates a bus with a permit that was suspended by the
commission pursuant to Section 5378.5.
(C) Commits three or more liability insurance violations within a
two-year period for which it has been cited.
(D) Operates a bus with a permit that was suspended by the
commission during a period that the charter-party carrier's liability
insurance lapsed for which it has been cited.
(E) Knowingly employs a busdriver who 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.
(F) Has one or more buses improperly registered with the
Department of Motor Vehicles.
(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) A peace officer, as designated pursuant to Chapter 4.5
(commencing with Section 830) of Title 3 of Part 2 of the Penal Code,
may impound a bus or limousine of a charter-party carrier of
passengers for 30 days pursuant to Section 14602.9 of the Vehicle
Code if the peace officer determines that any of the following
violations occurred while the driver was operating the bus or
limousine of the charter-party carrier:
(1) The driver was operating the bus or limousine of a
charter-party carrier of passengers when the charter-party carrier of
passengers did not have a permit or certificate issued by the
commission.
(2) The driver was operating the bus or limousine of a
charter-party carrier of passengers when the charter-party carrier of
passengers was operating with a suspended permit or certificate from
the commission.
(3) The driver was operating the bus or limousine of a
charter-party carrier of passengers without having a current and
valid driver's license of the proper class, a passenger vehicle
endorsement, or the required certificate.
(e) This section does not authorize the impoundment of privately
owned personal vehicles that are not common carriers nor the
impoundment of vehicles used in transportation for compensation by
charter-party carriers of passengers that are not required to carry
individual permits.
SEC. 10. Section 5417.5 is added to the Public Utilities Code, to
read:
5417.5. (a) The commission shall ensure that this chapter is
enforced and obeyed, and that violations thereof are promptly
prosecuted and that penalty moneys due to the state are recovered and
collected, and to this end it may sue in the name of the people of
the State of California. Upon the request of the commission, the
Attorney General or the district attorney of the proper county or
city and county may aid in any investigation, hearing, or trial under
this chapter. The Attorney General, a district attorney of the
proper county or city and county, or a city attorney may institute
and prosecute actions or proceedings for the violation of any law
committed in connection with, or arising from, a transaction
involving a charter-party carrier of passengers.
(b) For purposes of this section, "peace officer" means a person
designated as a peace officer pursuant to Chapter 4.5 (commencing
with Section 830) of Title 3 of Part 2 of the Penal Code.
(c) A peace officer may enforce and assist in the enforcement of
Sections 5411 and 5412 resulting from a violation of Section 5371,
5379, 5385, 5385.7, or 5387, or more than one of those sections. A
peace officer may additionally enforce and assist in the enforcement
of Sections 5411.3 and 5414.5. In any case in which an arrest
authorized by this subdivision is made for an offense declared to be
a misdemeanor, and the person arrested does not demand to be taken
before a magistrate, the arresting peace officer may, instead of
taking such person before a magistrate, follow the procedure
prescribed by Chapter 5C (commencing with Section 853.5) of Title 3
of Part 2 of the Penal Code. The provisions of that chapter shall
thereafter apply with reference to any proceeding based upon the
issuance of a citation pursuant to this authority.
(d) The commission shall coordinate enforcement of this section
with those peace officers likely to be involved in enforcing this
section, including undertaking both of the following:
(1) Educational outreach to promote awareness among those peace
officers about the requirements of Sections 5371, 5379, 5385, 5385.7,
5387, 5411, 5411.3, 5412, and 5414.5.
(2) Establishing lines of communication so that the commission is
notified if an action is commenced to enforce the requirements of
those sections specified in subdivision (c), so that the commission
may take appropriate action to enforce the fine and penalty
provisions of this article.
(e) The Attorney General, a district attorney of the proper county
or city and county, or a city attorney may institute and prosecute
actions or proceedings for the violation of any law committed in
connection with, or arising from, a transaction involving the
transportation of passengers by a charter-party carrier of
passengers.
SEC. 11. Section 14602.9 of the Vehicle Code is amended to read:
14602.9. (a) For purposes of this section, "peace officer" means
a person designated as a peace officer pursuant to Chapter 4.5
(commencing with Section 830) of Title 3 of Part 2 of the Penal Code.
(b) A peace officer may impound a bus or limousine of a
charter-party carrier for 30 days if the officer determines that any
of the following violations occurred while the driver was operating
the bus or limousine of the charter-party carrier:
(1) The driver was operating the bus or limousine 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 or limousine of a
charter-party carrier when the charter-party carrier was operating
with a suspended permit or certificate from the Public Utilities
Commission.
(3) The driver was operating the bus or limousine 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.
(c) A peace officer may impound a bus or limousine belonging to a
passenger stage corporation for 30 days if the officer determines any
of the following violations occurred while the driver was operating
the bus or limousine:
(1) The driver was operating the bus or limousine when the
passenger stage corporation did not have a certificate of public
convenience and necessity issued by the Public Utilities Commission
as required pursuant to Article 2 (commencing with Section 1031) of
Chapter 5 of Part 1 of Division 1 of the Public Utilities Code.
(2) The driver was operating the bus or limousine when the
operating rights or certificate of public convenience and necessity
of a passenger stage corporation was suspended, canceled, or revoked
pursuant to Section 1033.5, 1033.7, or 1045 of the Public Utilities
Code.
(3) The driver was operating the bus or limousine without having a
current and valid driver's license of the proper class.
(d) 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
day's 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.
(e) The registered and legal owner of a vehicle that is removed
and seized under subdivision (b) or (c) 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.
(f) (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, for a charter-party carrier of passengers, 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.
(D) When, for a passenger stage corporation, 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 passenger stage corporation
has been issued a valid certificate of public convenience and
necessity by the Public Utilities Commission, pursuant to Article 2
(commencing with Section 1031) of Chapter 5 of Part 1 of Division 1
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.
(g) 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.
(h) A vehicle removed and seized under subdivision (b) or (c)
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 (b) of Section
7500.1 of the Business and Professions Code.
(i) (1) A legal owner or the legal owner's agent who obtains
release of the vehicle pursuant to subdivision (h) 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.
(j) (1) A vehicle removed and seized under subdivision (b) or (c)
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.
(k) 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.
(l) 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.
(m) This section does not authorize the impoundment of privately
owned personal vehicles that are not common carriers nor the
impoundment of vehicles used in transportation for compensation by
charter-party carriers that are not required to carry individual
permits.
(n) For the purposes of this section, a "charter-party carrier"
means a charter-party carrier of passengers as defined by Section
5360 of the Public Utilities Code.
(o) For purposes of this section, a "passenger stage corporation"
means a passenger stage corporation as defined by Section 226 of the
Public Utilities Code.
SEC. 12. Section 9.5 of this bill incorporates amendments to
Section 5387 of the Public Utilities Code proposed by both this bill
and Senate Bill 697. It shall only become operative if (1) both bills
are enacted and become effective on or before January 1, 2016, (2)
each bill amends Section 5387 of the Public Utilities Code, and (3)
this bill is enacted after Senate Bill 697, in which case Section 9
of this bill shall not become operative.