Bill Text: CA SB812 | 2015-2016 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Modified limousines and tour buses: standards and inspection.

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Passed) 2016-09-27 - Chaptered by Secretary of State. Chapter 711, Statutes of 2016. [SB812 Detail]

Download: California-2015-SB812-Amended.html
BILL NUMBER: SB 812	AMENDED
	BILL TEXT

	AMENDED IN SENATE  APRIL 27, 2016
	AMENDED IN SENATE  APRIL 12, 2016
	AMENDED IN SENATE  MARCH 17, 2016
	AMENDED IN SENATE  FEBRUARY 12, 2016

INTRODUCED BY   Senator Hill
   (Principal coauthors: Assembly Members Chiu and Ting)

                        JANUARY 4, 2016

   An act to amend Sections 1033.7, 5373.1, and 5378.5 of, and to add
Sections  1033.6   1033.6, 4003,  and
5374.4 to, the Public Utilities Code, and to amend Sections 612,
34501, 34505, 34505.1, and 34513 of, and to add Section 34505.2 to,
the Vehicle Code, relating to transportation.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 812, as amended, Hill. Charter-party carriers of 
passengers and   passengers:  passenger stage
 corporations.   corporations: private carriers
of passengers. 
   (1) Existing law defines a tour bus to include any bus operated by
or for a charter-party carrier of passengers or a passenger stage
corporation, with a bus in this respect defined to mean any vehicle
designed, used, or maintained for carrying more than 10 persons,
including the driver. Existing law provides for the Department of the
California Highway Patrol to regulate the safe operation of various
classes of vehicles, including tour buses. Existing law requires
charter-party carriers of passengers, upon initial application and
annually thereafter, to pay tour bus terminal inspection fees of $15
per tour bus, up to a maximum of $6,500, to offset the costs of
inspections of the Department of the California Highway Patrol, and
requires the Public Utilities Commission to collect these fees and to
deposit fee revenues in the Motor Vehicle Account. Existing law does
not impose similar fees on passenger stage corporations. A violation
of various statutes and regulations governing tour buses and
operators of tour buses is a crime.
   Existing law also requires the Department of the California
Highway Patrol, at least once every 13 months, to inspect every
maintenance facility or terminal of any person who at any time
operates any bus. Existing law requires that if the bus operation
includes more than 100 buses, the inspection shall be without prior
notice. Existing law requires the Public Utilities Commission,
pending a hearing in the matter, to suspend the operating certificate
of a charter-party carrier of passengers or a passenger stage
corporation upon receipt of a written recommendation from the
department for, among other things, failure to maintain any vehicle
used in transportation for compensation in a safe operating
condition. Existing law also requires, among other things, upon a
determination by the department that a tour bus or modified limousine
carrier has failed to maintain any vehicle used in transportation
for compensation in a safe operating condition such that the failure
presents an imminent danger to public safety, that the department
shall recommend to the commission that the carrier's operating
authority be suspended, denied, or revoked, or to the United States
Department of Transportation that appropriate administrative action
be taken against the carrier's interstate operating authority,
whichever is appropriate.
   This bill would require the department, if a tour bus or modified
limousine carrier has received an unsatisfactory compliance rating
for a 3 consecutive terminal inspections, as specified, to recommend
to the commission that the carrier's operating authority be
suspended, denied, or revoked, or to the United States Department of
Transportation that appropriate administrative action be taken
against the carrier's interstate operating authority, whichever is
appropriate. The bill would also require the commission to suspend an
operating certificate of a charter-party carrier of passengers or a
passenger stage corporation in those circumstances. The bill would
additionally authorize the department to inspect a maintenance
facility or terminal that receives 2 or more successive satisfactory
ratings once every 26 months. The bill would also require the
department to inspect a maintenance facility or terminal that
receives an unsatisfactory rating every 6 months until the operator
achieves a satisfactory rating, unless the satisfactory rating is the
result of a reinspection, as specified.
   This bill would require the Department of the California Highway
Patrol, by regulation, to develop and adopt bus terminal inspection
fees that are scaled and applicable to charter-party carriers of
passengers and passenger stage corporations that operate one or more
tour buses, to replace existing fees, in an amount sufficient to
offset the costs to administer the inspection program for these
companies, as specified. The bill would require the fees to be
collected by the Public Utilities Commission in the case of
charter-party carriers of passengers or as otherwise required by the
regulations. The bill would provide that an operating carrier may not
be charged more than $6,500 in fees. The bill would make other
conforming changes.
   This bill would require the Department of the California Highway
Patrol, by regulation, to modify its existing tour bus terminal
inspection program, beginning no later than January 1, 2018, to
ensure that the performance-based program targets companies that are
noncompliant, have a history of noncompliance with safety laws or
regulations, or have received unsatisfactory ratings and to
prioritize those companies for unannounced surprise inspections. The
bill would also require no fewer than 10% of the total number of tour
bus carrier inspections conducted by the department to be
unannounced surprise inspections. The bill would require the
department to conduct a followup inspection 30 days after an operator
receives an unsatisfactory rating.
   This bill would require a charter-party carrier of passengers or a
passenger stage corporation that has received an unsatisfactory
rating and is currently being inspected every 6 months, prior to
operating a newly acquired tour bus that is more than 2 years old, to
first schedule an inspection of the tour bus with, and obtain a
satisfactory rating for the tour bus from, the department. The bill
would also require the Department of the California Highway Patrol,
upon determining that the condition of a tour bus is such that it has
multiple safety violations of a nature that operation of the tour
bus could constitute an imminent danger to public safety, to
immediately order the tour bus out of service, and would prohibit
operation of the tour bus until all of the safety violations have
been corrected and the department has verified the correction of the
safety violations upon a subsequent inspection of the tour bus. By
changing the definition of existing crimes and creating new crimes,
the bill would impose a state-mandated local program. 
   This bill would also require the Department of the California
Highway Patrol to conduct a comprehensive review of the statutes and
regulations governing tour buses, as well as buses generally, with
the objective of identifying opportunities for simplification,
consolidation, avoidance of duplication, and consistent use of
terminology, as specified. The bill would require a report containing
the department's recommendations for proposed statutory changes to
be submitted to the policy committees of both houses of the
Legislature with responsibility for transportation matters by January
1, 2018. 
   (2) Existing law provides for the regulation of  private
carriers of passengers,  passenger stage  corporations
  corporations,  and charter-party carriers of
passengers by the Public Utilities Commission.
   This bill would require the commission to monitor the recall
notifications of the National Highway Traffic Safety Administration
(NHTSA) relative to  buses operated by private carriers of
passengers and  buses, limousines, and modified limousines
operated by passenger stage corporations and charter-party carriers
of passengers. The bill would require the commission, upon
determining that a bus, limousine, or modified limousine is the
subject of a safety recall by NHTSA that involves parts or
accessories necessary for the safe operation of the vehicle, as
defined, to contact any  private carrier of passengers, 
passenger stage  corporation   corporation,
 or charter-party carrier of passengers affected by the recall
to ensure that the  registrant,  certificate  holder
  holder,  or permittee is aware of it and has a
plan in place to correct the defect. The bill would authorize the
commission to issue an out-of-service order for any vehicle affected
by the recall until the recall repair is completed. Because a
violation of provisions governing  private carriers of
passengers,  passenger stage  corporations 
 corporations,  and charter-party carriers of passengers is
a crime, this 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 1033.6 is added to the Public Utilities Code,
to read:
   1033.6.  (a) The commission shall monitor the recall notifications
of the National Highway Traffic Safety Administration (NHTSA)
relative to buses, limousines, and modified limousines operated by
passenger stage corporations in this state and shall subscribe to
NHTSA's electronic mail notification system.
   (b) (1) Upon determining that a bus, limousine, or modified
limousine of a passenger stage corporation is the subject of a safety
recall by NHTSA that involves parts or accessories necessary for the
safe operation of the vehicle, the commission shall immediately
contact any passenger stage corporation affected by the recall to
ensure that the certificate holder or permittee is aware of the
recall and has a plan in place to correct the defect.
   (2) As used in this section, "parts or accessories necessary for
the safe operation of the vehicle" has the same meaning as described
in Part 393 of Title 49 of the Code of Federal Regulations.
   (c) The commission may issue an out-of-service order for any
vehicle affected by the recall if the recall involves parts or
accessories necessary for the safe operation of the vehicle, which
order shall remain in effect until the recall repair of the vehicle
is completed.
  SEC. 2.  Section 1033.7 of the Public Utilities Code is amended to
read:
   1033.7.  (a) Upon receipt of a written recommendation from the
Department of the California Highway Patrol that the certificate of a
passenger stage corporation be suspended (1) for failure to maintain
any vehicle used in transportation for compensation in a safe
operating condition or to comply with the Vehicle Code or with
regulations contained in Title 13 of the California Code of
Regulations relative to motor carrier safety, if that failure is
either a consistent failure or presents an imminent danger to public
safety, (2) for failure to enroll all drivers in the pull notice
system as required by Section 1808.1 of the Vehicle Code, or (3) for
receiving an unsatisfactory compliance rating in three consecutive
terminal inspections as specified in subdivision (c) of Section
34505.1 of the Vehicle Code, the commission shall, pending a hearing
in the matter pursuant to subdivision (d), suspend the corporation's
certificate. The department's written recommendation shall
specifically indicate compliance with subdivision (c).
   (b) A corporation whose certificate is suspended pursuant to
subdivision (a) may obtain a reinspection of its terminal and
vehicles by the department, by submitting a written request for
reinstatement to the commission and paying a reinstatement fee of one
hundred twenty-five dollars ($125). The commission shall deposit all
reinstatement fees collected pursuant to this subdivision in the
Public Utilities Commission Transportation Reimbursement Account. The
commission shall forward a request for reinspection to the
department which shall perform a reinspection within a reasonable
time. The commission shall reinstate a corporation's certificate
suspended under subdivision (a) promptly upon receipt of a written
recommendation from the department that the corporation's safety
compliance has improved to the satisfaction of the department, unless
the certificate is suspended for another reason or has been revoked.

   (c) Before transmitting a recommendation pursuant to subdivision
(a) to the commission, the Department of the California Highway
Patrol shall notify the passenger stage corporation in writing of all
of the following:
   (1) That the department has determined that the corporation's
safety record 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 or
revocation of the corporation's certificate by the commission.
   (3) That the corporation 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 corporation, the department shall
conduct and evaluate that review prior to transmitting any
notification to the commission pursuant to subdivision (a).
   (d) Whenever the commission suspends the certificate of any
passenger stage corporation pursuant to subdivision (a), the
commission shall furnish the corporation written notice of the
suspension and shall hold a hearing within a reasonable time, not to
exceed 21 days, after a written request therefor is filed with the
commission, with a copy thereof furnished to the Department of the
California Highway Patrol. At the hearing, the corporation shall show
cause why the suspension should not be continued. At the conclusion
of the hearing, the commission may, in addition to any other
applicable penalty provided in this part, terminate the suspension,
continue the suspension in effect, or revoke the certificate. The
commission may revoke the certificate of any passenger stage
corporation suspended pursuant to subdivision (a) at any time 90 days
or more after its suspension if the commission has not received a
written recommendation for reinstatement from the department and the
corporation has not filed a written request for a hearing with the
commission.
   (e) If the commission, after a hearing, finds that a passenger
stage corporation has continued to operate as such after its
certificate has been suspended pursuant to subdivision (a), the
commission shall do one of the following:
   (1) Revoke the certificate of the corporation.
   (2) Impose upon the holder of the certificate a civil penalty of
not less than one thousand dollars ($1,000) nor more than five
thousand dollars ($5,000) for each day of unlawful operations.
   SEC. 3.    Section 4003 is added to the  
Public Utilities Code   , to read:  
   4003.  (a) The commission shall monitor the recall notifications
of the National Highway Traffic Safety Administration (NHTSA)
relative to buses operated by private carriers of passengers in this
state and shall subscribe to NHTSA's electronic mail notification
system.
   (b) (1) Upon determining that a bus of a private carrier of
passengers is the subject of a safety recall by NHTSA that involves
parts or accessories necessary for the safe operation of the vehicle,
the commission shall immediately contact any private carrier of
passengers affected by the recall to ensure that the registrant is
aware of the recall and has a plan in place to correct the defect.
   (2) As used in this section, "parts or accessories necessary for
the safe operation of the vehicle" has the same meaning as described
in Part 393 of Title 49 of the Code of Federal Regulations.
   (c) The commission may issue an out-of-service order for any
vehicle affected by the recall if the recall involves parts or
accessories necessary for the safe operation of the vehicle, which
order shall remain in effect until the recall repair of the vehicle
is completed. 
   SEC. 3.  SEC. 4.   Section 5373.1 of the
Public Utilities Code is amended to read:
   5373.1.  (a) Each application for a charter-party carrier of
passengers certificate or permit shall be accompanied by a filing fee
as follows:
   (1) Class A certificates (new): one thousand five hundred dollars
($1,500).
   (2) Class A certificates (renewal): one hundred dollars ($100).
   (3) Class B certificates (new): one thousand dollars ($1,000).
   (4) Class B certificates (renewal): one hundred dollars ($100).
   (5) Class C certificates (new): one thousand dollars ($1,000).
   (6) Class C certificates (renewal): one hundred dollars ($100).
   (7) Permits (new): one thousand dollars ($1,000).
   (8) Permits (renewal): one hundred dollars ($100).
   (b) The commission shall also require each application to be
accompanied by a fee to offset the cost of the charter-party carrier
bus terminal inspections conducted by the Department of the
California Highway Patrol. The fee shall be fifteen dollars ($15) per
tour bus, as defined in Section 612 of the Vehicle Code, or a
maximum of six thousand five hundred dollars ($6,500) for each
operating carrier, until the effective date of the new fee structure
established by the Department of the California Highway Patrol
pursuant to subdivision (b) of Section 34513 of the Vehicle Code.
   (c) The commission shall require each charter-party carrier that
operates tour buses, as defined in Section 612 of the Vehicle Code,
to undergo an annual bus terminal inspection conducted by the
Department of the California Highway Patrol and to pay an annual fee
of fifteen dollars ($15) per tour bus, or a maximum of six thousand
five hundred dollars ($6,500), to offset the cost of the inspections,
until the effective date of the new fee structure established by the
Department of the California Highway Patrol pursuant to subdivision
(b) of Section 34513 of the Vehicle Code.
   (d) The commission shall deposit the fees collected pursuant to
subdivisions (b) and (c) in the Motor Vehicle Account in the State
Transportation Fund to cover the costs of the inspections conducted
by the department as specified in subdivisions (b) and (c). The
revenues from the fees shall not be used to supplant other sources of
funding for, or otherwise support, any other inspection program
conducted by the department.
   SEC. 4.   SEC. 5.   Section 5374.4 is
added to the Public Utilities Code, to read:
   5374.4.  (a) The commission shall monitor the recall notifications
of the National Highway Traffic Safety Administration (NHTSA)
relative to buses, limousines, and modified limousines operated by
charter-party carriers of passengers in this state and shall
subscribe to NHTSA's electronic mail notification system.
   (b) (1) Upon determining that a bus, limousine, or modified
limousine of a charter-party carrier of passengers is the subject of
a safety recall by NHTSA that involves parts or accessories necessary
for the safe operation of the vehicle, the commission shall
immediately contact any charter-party carrier of passengers affected
by the recall to ensure that the certificate holder or permittee is
aware of the recall and has a plan in place to correct the defect.
   (2) As used in this section, "parts or accessories necessary for
the safe operation of the vehicle" has the same meaning as described
in Part 393 of Title 49 of the Code of Federal Regulations.
   (c) The commission may issue an out-of-service order for any
vehicle affected by the recall if the recall, involves parts or
accessories necessary for the safe operation of the vehicle, which
order shall remain in effect until the recall repair of the vehicle
is completed.
   SEC. 5.   SEC. 6.   Section 5378.5 of
the Public Utilities Code is amended to read:
   5378.5.  (a) Upon receipt of a written recommendation from the
Department of the California Highway Patrol that the certificate or
permit of a charter-party carrier be suspended (1) for failure to
maintain any vehicle used in transportation for compensation in a
safe operating condition or to comply with the Vehicle Code or with
regulations contained in Title 13 of the California Code of
Regulations relative to motor carrier safety if that failure is
either a consistent failure or presents an imminent danger to public
safety, (2) for failure to enroll all drivers in the pull notice
system as required by Section 1808.1 of the Vehicle Code, or (3) for
receiving an unsatisfactory compliance rating in three consecutive
terminal inspections as specified in subdivision (c) of Section
34505.1 of the Vehicle Code, the commission shall, pending a hearing
in the matter pursuant to subdivision (d), suspend the carrier's
certificate or permit. The written recommendation shall specifically
indicate compliance with subdivision (c).
   (b) A carrier whose certificate or permit is suspended pursuant to
subdivision (a) may obtain a reinspection of its terminal and
vehicles by the department, by submitting a written request for
reinstatement to the commission and paying a reinstatement fee of one
thousand dollars ($1,000). The commission shall deposit all
reinstatement fees collected pursuant to this subdivision in the
Public Utilities Commission Transportation Reimbursement Account. The
commission shall then forward a request for reinspection to the
department which shall then perform a reinspection within a
reasonable time. The commission shall reinstate a carrier's
certificate or permit suspended under subdivision (a) promptly upon
receipt of a written recommendation from the department that the
carrier's safety compliance has improved to the satisfaction of the
department, unless the certificate or permit is suspended for another
reason, or has been revoked.
   (c) Before transmitting a recommendation pursuant to subdivision
(a) to the commission, the Department of the California Highway
Patrol shall notify the charter-party carrier in writing of all of
the following:
   (1) That the department has determined that the carrier's safety
record is unsatisfactory, furnishing a copy of any documentation or
summary of any other evidence supporting the determination.
   (2) That the determination may result in suspension or revocation
of the carrier's certificate or permit by the commission.
   (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 to the commission
pursuant to subdivision (a).
   (d) Whenever the commission suspends the certificate or permit of
any charter-party carrier pursuant to subdivision (a), the commission
shall furnish the carrier written notice of the suspension and shall
hold a hearing within a reasonable time, not to exceed 21 days,
after a written request therefor is filed with the commission, with a
copy thereof furnished to the Department of the California Highway
Patrol. At the hearing, the carrier shall show cause why the
suspension should not be continued. At the conclusion of the hearing,
the commission may, in addition to any other penalty provided in
this chapter, terminate the suspension, continue the suspension in
effect, or revoke the certificate or permit. The commission may
revoke the certificate or permit of any carrier suspended pursuant to
subdivision (a) at any time 90 days or more after its suspension if
the commission has not received a written recommendation for
reinstatement from the department and the carrier has not filed a
written request for a hearing with the commission.
   (e) If the commission, after a hearing, finds that a charter-party
carrier has continued to operate as such a carrier after its
certificate or permit has been suspended pursuant to subdivision (a),
the commission shall do one of the following:
   (1) Revoke the operating certificate or permit of the carrier.
   (2) Impose upon the holder of the certificate or permit a civil
penalty of not less than one thousand five hundred dollars ($1,500)
nor more than seven thousand five hundred dollars ($7,500) for each
day of unlawful operations.
   SEC. 6.   SEC. 7.   Section 612 of the
Vehicle Code is amended to read:
   612.  "Tour bus" means a vehicle designed, used, or maintained for
carrying more than 10 persons, including the driver, which is
operated by or for a charter-party carrier of passengers, as defined
in Section 5360 of the Public Utilities Code, or a passenger stage
corporation, as defined in Section 226 of the Public Utilities Code.
   SEC. 7.   SEC. 8.   Section 34501 of the
Vehicle Code is amended to read:
   34501.  (a) (1) The department shall adopt reasonable rules and
regulations that, in the judgment of the department, are designed to
promote the safe operation of vehicles described in Section 34500,
regarding, but not limited to, controlled substances and alcohol
testing of drivers by motor carriers, hours of service of drivers,
equipment, fuel containers, fueling operations, inspection,
maintenance, recordkeeping, accident reports, and drawbridges. The
rules and regulations shall not, however, be applicable to
schoolbuses, which shall be subject to rules and regulations adopted
pursuant to Section 34501.5.
   The rules and regulations shall exempt local law enforcement
agencies, within a single county, engaged in the transportation of
inmates or prisoners when those agencies maintain other motor vehicle
operations records which furnish hours of service information on
drivers which are in substantial compliance with the rules and
regulations. This exemption does not apply to any local law
enforcement agency engaged in the transportation of inmates or
prisoners outside the county in which the agency is located, if that
agency would otherwise be required, by existing law, to maintain
driving logs.
   (2) The department may adopt rules and regulations relating to
commercial vehicle safety inspection and out-of-service criteria. In
adopting the rules and regulations, the commissioner may consider the
commercial vehicle safety inspection and out-of-service criteria
adopted by organizations such as the Commercial Vehicle Safety
Alliance, other intergovernmental safety group, or the United States
Department of Transportation. The commissioner may provide
departmental representatives to that alliance or other organization
for the purpose of promoting the continued improvement and refinement
of compatible nationwide commercial vehicle safety inspection and
out-of-service criteria.
   (3) The commissioner shall appoint a committee of 15 members,
consisting of representatives of industry subject to the regulations
to be adopted pursuant to this section, to act in an advisory
capacity to the department, and the department shall cooperate and
confer with the advisory committee so appointed. The commissioner
shall appoint a separate committee to advise the department on rules
and regulations concerning wheelchair lifts for installation and use
on buses, consisting of persons who use the wheelchair lifts,
representatives of transit districts, representatives of designers or
manufacturers of wheelchairs and wheelchair lifts, and
representatives of the Department of Transportation.
   (4) The department may inspect any vehicles in maintenance
facilities or terminals, as well as any records relating to the
dispatch of vehicles or drivers, and the pay of drivers, to ensure
compliance with this code and regulations adopted pursuant to this
section.
   (b) The department, using the definitions adopted pursuant to
Section 2402.7, shall adopt regulations for the transportation of
hazardous materials in this state, except the transportation of
materials which are subject to other provisions of this code, that
the department determines are reasonably necessary to ensure the
safety of persons and property using the highways. The regulations
may include provisions governing the filling, marking, packing,
labeling, and assembly of, and containers that may be used for,
hazardous materials shipments, and the manner by which the shipper
attests that the shipments are correctly identified and in proper
condition for transport.
   (c) (1) Except as provided in paragraphs (2) and (3), at least
once every 13 months, the department shall inspect every maintenance
facility or terminal of any person who at any time operates any bus.
If the bus operation includes more than 100 buses, the inspection
shall be without prior notice.
   (2) A maintenance facility or terminal that receives two or more
successive satisfactory ratings may be inspected once every 26 months
unless the satisfactory rating is the result of a reinspection
required pursuant to paragraph (2) of subdivision (c) of Section
34513.
   (3) A maintenance facility or terminal that receives an
unsatisfactory rating shall be inspected every six months until the
operator achieves a satisfactory rating.
   (d) The commissioner shall adopt and enforce regulations which
will make the public or private users of any bus aware of the
operator's last safety rating.
   (e) It is unlawful and constitutes a misdemeanor for any person to
operate any bus without the inspection specified in subdivision (c)
having been conducted.
   (f) The department may adopt regulations restricting or
prohibiting the movement of any vehicle from a maintenance facility
or terminal if the vehicle is found in violation of this code or
regulations adopted pursuant to this section.
   SEC. 8.   SEC. 9.   Section 34505 of the
Vehicle Code is amended to read:
   34505.  (a) Tour bus operators shall, in addition to the
systematic inspection, maintenance, and lubrication services required
of all motor carriers, require each tour bus to be inspected at
least every 45 days, or more often if necessary to ensure safe
operation. 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.
   (b) A tour bus shall not be used to transport passengers until all
defects listed during the inspection conducted pursuant to
subdivision (a) have been corrected and attested to by the signature
of the operator's authorized representative.
   (c) Records of inspections conducted pursuant to subdivision (a)
shall be kept at the operator's maintenance facility or terminal
where the tour bus is regularly garaged. The records shall be
retained by the operator for one year, 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, or other means of positive identification.
   (2) Date and nature of each inspection and any repair performed.
   (3) Signature of operator's authorized representative attesting to
the inspection and to the completion of all required repairs.
   (4) Company vehicle number.
   (d) Prior to operating a newly acquired tour bus that is more than
two years old, a charter-party carrier of passengers or a passenger
stage corporation that has received an unsatisfactory rating and is
being inspected every six months pursuant to paragraph (3) of
subdivision (c) of Section 34501, shall first schedule an inspection
of the tour bus with, and obtain a satisfactory rating for the tour
bus from, the department. This requirement shall not apply to a
charter-party carrier of passengers or a passenger stage corporation
that has received two or more successive satisfactory ratings and is
being inspected pursuant to the inspection schedule authorized under
paragraph (2) of subdivision (c) of Section 34501.
   SEC. 9.   SEC. 10.   Section 34505.1 of
the Vehicle Code is amended to read:
   34505.1.  (a) Upon determining that a tour bus carrier or modified
limousine carrier has either (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 regulations contained in
Title 13 of the California Code of Regulations relative to motor
carrier safety, and, in the department's opinion, that failure
presents an imminent danger to public safety or constitutes such a
consistent failure as to justify a recommendation to the Public
Utilities Commission or the United States Department of
Transportation or (2) failed to enroll all drivers in the pull notice
system as required by Section 1808.1, the department shall recommend
to the Public Utilities Commission that the carrier's operating
authority be suspended, denied, or revoked, or to the United States
Department of Transportation that appropriate administrative action
be taken against the carrier's interstate operating authority,
whichever is appropriate.
   (b) For purposes of this section, two consecutive unsatisfactory
compliance ratings for an inspected terminal assigned because the
tour bus carrier or modified limousine 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 nonpayment of required fees may be determined by the
department to be a consistent failure. However, when recommending
denial of an application for new or renewal authority, the department
need not conclude that the carrier's failure presents an imminent
danger to public safety or that it constitutes a consistent failure.
The department need only conclude that the carrier's compliance with
the safety-related matters described in paragraph (1) of subdivision
(a) is sufficiently unsatisfactory to justify a recommendation for
denial.
   (c) If a tour bus or modified limousine carrier has either (1)
received an unsatisfactory compliance rating for a regular terminal
inspection and the next two consecutive follow-up terminal
inspections or (2) received an unsatisfactory compliance rating for
three consecutive regular terminal inspections irrespective of
receiving satisfactory ratings on the follow-up inspections
associated with the first two terminal inspections, the department
shall recommend to the Public Utilities Commission that the carrier's
operating authority be suspended, denied, or revoked, or to the
United States Department of Transportation that appropriate
administrative action be taken against the carrier's interstate
operating authority, whichever is appropriate.
   (d) Before transmitting a recommendation pursuant to this section,
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 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 operating authority by the Public
Utilities Commission or the United States Department of
Transportation, as appropriate.
   (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 is requested by the carrier, the
department shall conduct and evaluate that review prior to
transmitting any notification pursuant to this section.
   (e) Notwithstanding anything to the contrary in subdivision (a),
(b), or (c), upon determining during a terminal inspection or at any
other                                          time that the
condition of a tour bus is such that it has multiple safety
violations of a nature that operation of the tour bus could
constitute an imminent danger to public safety, the department shall
immediately order the tour bus out of service. The tour bus shall not
be subsequently operated with passengers until all of the safety
violations have been corrected and the department has verified the
correction of the safety violations upon a subsequent inspection by
the department of the tour bus, which shall occur within five
business days of the submission of a reinspection request from the
tour bus carrier to the department.
   (f) The department shall retain a record, by carrier, of every
recommendation made pursuant to this section.
   SEC. 10.   SEC. 11.   Section 34505.2 is
added to the Vehicle Code, to read:
   34505.2.  (a) (1) The department shall conduct unannounced
surprise inspections of charter-party carriers of passengers and
passenger stage corporations operating one or more tour buses in
addition to regularly scheduled inspections.
   (2) The department shall prioritize unannounced surprise
inspections of companies that are noncompliant, have a history of
noncompliance with safety laws or regulations, or that have received
unsatisfactory ratings.
   (b) Each fiscal year, no fewer than 10 percent of the total number
of tour bus carrier inspections conducted by the department shall be
unannounced surprise inspections.
   SEC. 11.   SEC. 12.   Section 34513 of
the Vehicle Code is amended to read:
   34513.  (a) The department shall adopt rules and regulations
relating to the equipment, maintenance, and operation of tour buses.
   (b) (1) The department shall, by regulation, develop and adopt a
fee structure for bus terminal inspections of charter-party carriers
of passengers and passenger stage corporations, to be paid by
charter-party carriers of passengers and passenger stage corporations
that operate one or more tour buses. The fees shall be scaled and
based upon the number of buses operated by or for a company and shall
be collected upon initial application and annually thereafter by the
Public Utilities Commission pursuant to Section 5373.1 for carriers
subject to that section, or as otherwise provided in regulations. The
fees shall be in an amount sufficient to offset the costs to
administer the inspection program as it pertains to charter-party
carriers of passengers and passenger stage corporations, and revenues
from the fees shall be deposited in the Motor Vehicle Account in the
State Transportation Fund.
   (2) The revenues from the fees shall not be used to supplant other
sources of funding for, or otherwise support, any other inspection
program conducted by the department.
   (3) When developing the regulations, the department shall consider
measures that increase efficiencies to limit the financial impact to
charter-party carriers of passengers and passenger stage
corporations subject to the fees.
   (4) The department shall adopt the regulations in consultation
with appropriate interested parties.
   (5) In no instance shall an operating carrier be charged more than
six thousand five hundred dollars ($6,500).
   (c) (1) No later than January 1, 2018, the department shall, by
regulation, modify its existing tour bus terminal inspection program
to ensure that the performance-based program targets companies that
are noncompliant, have a history of noncompliance with safety laws or
regulations, or that have received unsatisfactory ratings.
   (2) If a carrier receives an unsatisfactory rating, the department
shall conduct a followup inspection no later than 30 days after the
initial inspection during which an unsatisfactory rating was deemed
appropriate.
   (3) It is the intent of the Legislature that, to the greatest
extent possible, the bus inspection program shall strive to inspect
as many tour buses operated by or for charter-party carriers of
passengers and passenger stage corporations as possible. 
  SEC. 12.    The Department of the California
Highway Patrol shall conduct a comprehensive review of the statutes
and regulations governing tour buses, as well as buses generally,
with the objective of identifying opportunities for simplification,
consolidation, avoidance of duplication, and consistent use of
terminology. The review shall be conducted in consultation with the
Public Utilities Commission, the Office of Legislative Counsel, and
interested parties. On or before January 1, 2018, the department
shall submit a report containing its recommendations for proposed
statutory changes to the policy committees of both houses of the
Legislature with responsibility for transportation matters, for
potential inclusion, if appropriate in whole or in part, in a future
omnibus transportation bill. The report shall be submitted pursuant
to Section 9795 of the Government Code. 
  SEC. 13.  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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