BILL NUMBER: AB 612	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JULY 2, 2014
	AMENDED IN SENATE  JUNE 19, 2014
	AMENDED IN SENATE  JUNE 10, 2014
	AMENDED IN SENATE  MAY 29, 2014
	AMENDED IN ASSEMBLY  MARCH 19, 2013

INTRODUCED BY   Assembly Member Nazarian
   (Coauthor: Assembly Member Hernández)

                        FEBRUARY 20, 2013

   An act to amend Section 5374 of the Public Utilities Code,
relating to transportation.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 612, as amended, Nazarian. Charter-party carriers of
passengers: permit requirements: drivers.
   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, subject to various
requirements. The act defines a charter-party carrier of passengers
as every person engaged in the transportation of persons by motor
vehicle for compensation, whether in common or contract carriage,
over any public highway in this state and includes any person,
corporation, or other entity engaged in the provision of a hired
driver service when a rented motor vehicle is being operated by a
hired driver.
   This bill would prohibit the commission from issuing or renewing a
permit or certificate to a charter-party carrier of passengers
unless the applicant, in addition to existing requirements,
participates in the Department of Motor Vehicles Employer Pull Notice
Program and provides for mandatory Department of Justice background
checks of every driver who is either employed by or under contract to
the applicant, as specified. 
   The bill would also require any driver who is either under
contract to, or employed by, the carrier to operate a vehicle used in
transportation for compensation under the act to furnish
classifiable fingerprint cards which the carrier would be required to
forward to the Department of Justice to conduct a criminal history
background check, as specified and would prohibit the carrier from
employing or contracting with a driver who fails that check, as
specified.  
   The bill would require a driver of a charter-party carrier to
submit to the Department of Justice fingerprint images and related
information for the purpose of obtaining information as to the
existence and content of state convictions and state arrests, as
specified. The bill would require the department to charge a fee
sufficient to cover the cost of processing the request described in
these provisions.  
   The bill would provide that its provisions apply to all
charter-party carriers regardless of class or category created by the
commission. 
   (2) Because a violation of these provisions would be a crime, the
bill would impose a state-mandated local program.
   (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   .    It is the intent
of the Legislature to give direction to the Public Utilities
Commission, as it establishes rules and regulations for all
charter-party carriers, to investigate and implement proper
identifying decals and trade dress for charter-party carriers in
order to assist law enforcement in enforcing those regulations and
the law established under   the   Passenger
Charter-   party Carriers' Act. 
   SECTION 1.   SEC. 2.   Section 5374 of
the Public Utilities Code is amended to read:
   5374.  (a) (1) Before a permit or certificate is issued or
renewed, the commission shall require the applicant to establish
reasonable fitness and financial responsibility to initiate and
conduct or continue to conduct the proposed or existing
transportation services. The commission shall not issue or renew a
permit or certificate pursuant to this chapter unless the applicant
meets all of the following requirements:
   (A) It is financially and organizationally capable of conducting
an operation that complies with the rules and regulations of the
Department of the California Highway Patrol governing highway safety.

   (B) It is committed to observing the hours of service regulations
of state and, where applicable, federal law, for all persons, whether
employees or subcarriers, operating vehicles in transportation for
compensation under the certificate.
   (C) It has a preventive maintenance program in effect for its
vehicles used in transportation for compensation that conforms to
regulations of the Department of the California Highway Patrol in
Title 13 of the California Code of Regulations.
   (D) It participates in the Department of Motor Vehicle's Employer
Pull Notice Program to regularly check the driving records of all
persons, whether employees or subcarriers, operating vehicles used in
transportation for compensation.
   (E) It has a safety education and training program in effect for
all employees or subcarriers operating vehicles used in
transportation for compensation.
   (F) It will maintain its vehicles used in transportation for
compensation in a safe operating condition and in compliance with the
Vehicle Code and with regulations contained in Title 13 of the
California Code of Regulations relative to motor vehicle safety.
   (G) It has filed with the commission the certificate of workers'
compensation insurance coverage or statement required by Section
5378.1.
   (H) It has provided the commission an address of an office or
terminal where documents supporting the factual matters specified in
the showing required by this subdivision may be inspected by the
commission and the Department of the California Highway Patrol.
   (I) It provides for a mandatory controlled substance and alcohol
testing certification program as adopted by the commission pursuant
to Section 1032.1.
   (J) Subparagraphs (C), (F), and (H) do not apply to a
charter-party carrier of passengers engaged in the provision of a
hired driver service when a rented motor vehicle is being operated by
the hired driver.
   (K) It provides for mandatory Department of Justice criminal
background checks to check the criminal history of any driver who is
either under contract to, or employed by, the applicant to operate a
vehicle used in transportation for compensation pursuant to the
following: 
   (i) Upon accepting employment by or entering into a contract with
a carrier, a driver shall obtain two classifiable fingerprint cards
for submission to the Department of Justice. The driver shall submit
to the carrier the fingerprint cards and a processing fee payable to
the department. The carrier shall forward the classifiable
fingerprint cards and the fee to the Department of Justice. The
department shall forward one classifiable fingerprint card to the
Federal Bureau of Investigation for purposes of a background check.
The processing fee shall be in an amount to cover the actual costs to
the department.  
   (ii) In lieu of classifiable fingerprint cards provided for in
this section, the carrier may authorize drivers to submit their
fingerprints into an electronic fingerprinting system administered by
the Department of Justice. Drivers who submit their fingerprints by
electronic means shall have their fingerprints entered into the
system through a terminal operated by a law enforcement agency or
other facility authorized by the Department of Justice to conduct
electronic fingerprinting. The enforcement agency responsible for
operating the terminal may charge a fee sufficient to reimburse it
for the costs incurred in providing this service.  
   (iii) Upon receipt of a driver's electronic or hard card
fingerprints as provided in this section, the Department of Justice
shall disseminate the following information to the carrier: 

   (I) Every conviction rendered against the driver. 

   (II) Every arrest for an offense for which the driver is presently
awaiting trial, whether the driver is incarcerated or has been
released on bail or on his or her own recognizance pending trial.
 
   (iv) The carrier shall request from the Department of Justice
subsequent notification service, as provided pursuant to Section
11105.2 of the Penal Code.  
   (i) A driver, as defined in Section 305 of the Vehicle Code, of a
charter-party carrier, as defined in Section 5360, shall submit to
the Department of Justice fingerprint images and related information
required by the department for the purpose of obtaining information
as to the existence and content of state convictions and state
arrests and also information as to the existence and content of a
record of a state arrest for which the department establishes that
the person is free on bail or on his or her recognizance pending
trial or appeal.  
   (ii) The department shall provide a state response to the
charter-party carrier pursuant to paragraph (1) of subdivision (p) of
Section 11105 of the Penal Code.  
   (iii) The charter-party carrier shall request from the Department
of Justice subsequent notification service, as provided pursuant to
Section 11105.2 of the Penal Code, for persons described in clause
(i).  
   (iv) The department shall charge a fee sufficient to cover the
cost of processing the request described in this subparagraph. 
   (v) A driver shall be denied employment or have his or her
contract voided if he or she is required by any law to register as a
sex offender or has been convicted of any felony involving any type
of sexual offense; the manufacture, possession for sale,
transportation, or distribution of narcotics, controlled substances,
or addictive or dangerous drugs; force, violence,  threat
  threat,  or intimidation against persons;
kidnapping; forgery, fraud, larceny, extortion, burglary, robbery, or
theft; credit card fraud; possession of a firearm or dangerous
weapon; resisting or obstructing a peace officer, public officer, or
emergency medical technician; or use of another vehicle for hire in
the commission of a felony. Equivalent out-of-state violations shall
be considered. 
   (vi) As used in this section, "driver" has the same meaning as
defined in Section 305 of the Vehicle Code.  
   (L) Subparagraphs (D), (I), and (K) apply to all charter-party
carriers regardless of class or category created by the commission.

   (2) With respect to subparagraphs (B) and (F) of paragraph (1),
the commission may base a finding on a certification by the
commission that an applicant has filed, with the commission, a sworn
declaration of ability to comply and intent to comply.
   (3) The commission may require, as a precondition to the issuance
of a permit or certificate, the procurement of a performance bond
sufficient to facilitate the collection of fines, penalties, and
restitution related to enforcement actions that can be taken against
the applicant.
   (b) In addition to the requirements in subdivision (a),
charter-party carriers shall meet all other state and, where
applicable, federal regulations as prescribed.
   (c) The commission may delegate to its executive director or that
executive director's designee the authority to issue, renew, or
authorize the transfer of, charter-party carrier permits or
certificates and to make the findings specified in subdivision (a)
that are necessary to that delegated authority.
   SEC. 2.   SEC. 3.   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.