5371. No charter-party carrier of passengers excepting transit
districts, transit authorities or cities owning and operating local
transit systems themselves or through wholly owned nonprofit
corporations shall engage in transportation services made subject to
this chapter without first having obtained from the commission a
certificate that public convenience and necessity require the
operation, except that certain specific transportation services as
defined in Section 5384 may be conducted under authority of a permit
issued by the commission.
5371.1. (a) No charter-party carrier of passengers issued a class A
certificate subject to this section shall be restricted as to point
of origin or destination in the State of California.
(b) Every application for a certificate or permit, or renewal
thereof, shall be accompanied by the appropriate fee as specified in
Section 5373.1.
5371.2. (a) All holders of certificates issued under this section
shall operate from a service area to be determined by the commission.
In no case shall this area encompass more than a radius of 125 air
miles from the home terminal. The home terminal shall be designated
by the applicant. This certificate shall be classified as a class B
certificate. This section shall not apply to certificates subject to
Section 5371.1.
(b) The restriction on a service area imposed by subdivision (a)
does not apply to the holder of a class B certificate if that person
is providing charter bus transportation as defined in subdivision (b)
of Section 5363.
5371.3. A class C certificate holder is one who provides
transportation services incidental to commercial balloon operations,
commercial river rafting, or skiing. This section does not apply to
certificates issued under Section 5371.1 or 5371.2.
5371.4. (a) The governing body of any city, county, or city and
county may not impose a fee on charter-party carriers operating
limousines. However, the governing body of any city, county, or city
and county may impose a business license fee on, and may adopt and
enforce any reasonable rules and regulations pertaining to operations
within its boundaries for, any charter-party carrier domiciled or
maintaining a business office within that city, county, or city and
county.
(b) The governing body of any airport may not impose vehicle
safety, vehicle licensing, or insurance requirements on charter-party
carriers operating limousines that are more burdensome than those
imposed by the commission. However, the governing board of any
airport may require a charter-party carrier operating limousines to
obtain an airport permit for operating authority at the airport.
(c) Notwithstanding subdivisions (a) and (b), the governing body
of any airport may adopt and enforce reasonable and nondiscriminatory
local airport rules, regulations, and ordinances pertaining to
access, use of streets and roads, parking, traffic control, passenger
transfers, trip fees, and occupancy, and the use of buildings and
facilities, that are applicable to charter-party carriers operating
limousines on airport property.
(d) This section does not apply to any agreement entered into
pursuant to Sections 21690.5 to 21690.9, inclusive, between the
governing body of an airport and charter-party carriers operating
limousines.
(e) The commission shall conduct an audit and review of the annual
gross revenues earned by charter-party carriers operating limousines
for the purpose of ascertaining whether the imposition of additional
fees based on a charter-party carrier's gross annual revenues would
place an undue administrative or financial burden on the
charter-party carrier industry. The commission shall report its
findings to the Legislature on or before June 30, 1992.
(f) The governing body of any airport shall not impose a fee based
on gross receipts of charter-party carriers operating limousines.
(g) Notwithstanding subdivisions (a) to (f), inclusive, nothing in
this section prohibits a city, county, city and county, or the
governing body of any airport, from adopting and enforcing reasonable
permit requirements, fees, rules, and regulations applicable to
charter-party carriers of passengers other than those operating
limousines.
(h) Notwithstanding subdivisions (a) to (f), inclusive, a city,
county, or city and county may impose reasonable rules for the
inspection of waybills of charter-party carriers of passengers
operating within the jurisdiction of the city, county, or city and
county, for purposes of verifying valid prearranged travel.
(i) For the purposes of this section, "limousine" includes 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.
5371.5. (a) Upon receipt of a complaint containing sufficient
information to warrant conducting an investigation, the commission
shall investigate any business that advertises limousine-for-hire or
passenger charter transportation service for compensation in motor
vehicles. The commission shall, in a rulemaking or other appropriate
procedure, adopt criteria that establishes the type of information,
if contained in a complaint, that is sufficient to warrant an
investigation. Pursuant to this investigation, the commission shall
do all of the following:
(1) Determine which businesses, if any, are required to have in
effect a passenger charter-party carrier certificate or permit
pursuant to Section 5371 but do not have the required certificate or
permit.
(2) Inform any business not having a required certificate or
permit that it is in violation of law.
(3) Within 60 days of informing the business pursuant to paragraph
(2), institute civil or criminal proceedings, or both, pursuant to
Article 6 (commencing with Section 5411) or any other applicable law.
(b) For the purposes of this section, "advertises" includes the
undertaking of any action described in subdivision (b) of Section
5386.
5371.6. (a) The Legislature finds and declares that advertising and
use of telephone service is essential for charter-party carriers of
passengers to obtain business and to conduct intrastate passenger
transportation services. Unlawful advertisements by unlicensed
charter-party carriers of passengers has resulted in properly
licensed and regulated charter-party carriers of passengers competing
with unlicensed charter-party carriers of passengers using unfair
business practices. Unlicensed charter-party carriers of passengers
have also exposed citizens of the state to unscrupulous persons who
portray themselves as properly licensed, qualified, and insured
charter-party carriers of passengers. Many of these unlicensed
charter-party carriers of passengers have been found to have operated
their vehicles without insurance or in an unsafe manner, placing the
citizens of the state at risk.
(b) (1) The Legislature finds and declares that the termination of
telephone service utilized by unlicensed charter-party carriers of
passengers is essential to ensure the public safety and welfare.
Therefore, the commission should take enforcement action as specified
in this section to disconnect telephone service of unlicensed
charter-party carriers of passengers who unlawfully advertise
passenger transportation services in yellow page directories and
other publications. The enforcement actions provided for by this
section are consistent with the decision of the California Supreme
Court in Goldin v. Public Utilities Commission (1979) 23 Cal.3d 638.
(2) For purposes of this section, a telephone corporation or
telegraph corporation, or a corporation that holds a controlling
interest in the telephone or telegraph corporation, or any business
that is a subsidiary or affiliate of the telephone or telegraph
corporation, that has the name and address of the subscriber to a
telephone number being used by an unlicensed charter-party carrier of
passengers shall provide the commission, or an authorized officer or
employee of the commission, upon demand, and the order of a
magistrate, access to this information. A magistrate may only issue
an order, for the purposes of this subdivision, if the magistrate has
made the findings required by subdivision (c).
(c) A telephone or telegraph corporation shall refuse telephone
service to a new subscriber and shall disconnect telephone service of
an existing subscriber only after it is shown that other available
enforcement remedies of the commission have failed to terminate
unlawful activities detrimental to the public welfare and safety, and
upon receipt from any authorized officer or employee of the
commission of a writing, signed by a magistrate, as defined by
Sections 807 and 808 of the Penal Code, finding that probable cause
exists to believe that the subscriber is advertising or holding out
to the public to perform, or is performing, charter-party carrier of
passengers transportation services without having in force a permit
or certificate issued by the commission authorizing those services,
or that the telephone service otherwise is being used or is to be
used as an instrumentality, directly or indirectly, to violate or to
assist in violation of the laws requiring a charter-party carrier of
passengers permit or certificate. Included in the writing of the
magistrate shall be a finding that there is probable cause to believe
that the subject telephone facilities have been or are to be used in
the commission or facilitation of holding out to the public to
perform, or in performing, charter-party carrier of passengers
transportation services without having in force a permit or
certificate issued by the commission authorizing those services, and
that, absent immediate and summary action, a danger to public welfare
or safety will result.
(d) Any person aggrieved by any action taken pursuant to this
section shall have the right to file a complaint with the commission
and may include therein a request for interim relief. The commission
shall schedule a public hearing on the complaint to be held within 21
calendar days of the filing and assignment of a docket number to the
complaint. The remedy provided by this section shall be exclusive.
No other action at law or in equity shall accrue against any
telephone or telegraph corporation because of, or as a result of, any
matter or thing done or threatened to be done pursuant to this
section.
(e) At any hearing held on a complaint filed with the commission
pursuant to subdivision (d), the commission staff shall have the
right to participate, including the right to present evidence and
argument and to present and cross-examine witnesses. The commission
staff shall have both the burden of providing that the use made or to
be made of the telephone service is to hold out to the public to
perform, or to assist in performing, services as a charter-party
carrier of passengers, or that the telephone service is being or is
to be used as an instrumentality, directly or indirectly, to violate
or to assist in violation of the certification or permitting
requirements applicable to charter-party carriers of passengers and
that the character of the acts are such that, absent immediate and
summary action, a danger to public welfare or safety will result, and
the burden of persuading the commission that the telephone services
should be refused or should not be restored.
(f) The telephone or telegraph corporation, immediately upon
refusal or disconnection of service in accordance with subdivision
(c), shall notify the subscriber in writing that the refusal or
disconnection of telephone service has been made pursuant to a
request of the commission and the writing of a magistrate, and shall
include with the notice a copy of this section, a copy of the writing
of the magistrate, and a statement that the customer or subscriber
may request information from the commission at its San Francisco or
Los Angeles office concerning any provision of this section and the
manner in which a complaint may be filed.
(g) The provisions of this section are an implied term of every
contract for telephone service. The provisions of this section are a
part of any application for telephone service. Applicants for, and
subscribers and customers of, telephone service have, as a matter of
law, consented to the provisions of this section as a consideration
for the furnishing of the telephone service.
(h) As used in this section, the terms "person," "customer," and
"subscriber" include a subscriber to telephone service, any person
using the telephone service of a subscriber, an applicant for
telephone service, a corporation, as defined in Section 204, a
"person" as defined in Section 205, a limited liability company, a
partnership, an association, and includes their lessees and assigns.
(i) (1) As used in this section, "telephone corporation" means a
"telephone corporation" as defined in Section 234.
(2) As used in this section, "telegraph corporation" means a
"telegraph corporation" as defined in Section 236.
(j) As used in this section, "authorized officer or employee of
the commission" includes the executive director of the commission or
any commission employee designated pursuant to paragraph (5) of
subdivision (a) of Section 830.11 of the Penal Code.
5372. Applications for permits and certificates shall be in
writing, verified under oath, and shall be in such form, contain such
information, and be accompanied by such proof of service upon
interested parties as the commission may require.
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.
(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.
(d) The commission shall deposit the fees collected pursuant to
subdivisions (b) and (c) in the Motor Vehicle Account in the State
Transportation Fund.
5373.5. The commission shall not issue or authorize the transfer of
any certificate or permit under this chapter to any person or
corporation against whom a final judgment has been entered and whose
name has been transmitted to the commission pursuant to Section
3716.4 of the Labor Code, unless that judgment has been satisfied or
has been discharged in accordance with the bankruptcy laws of the
United States.
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 a 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.
(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.
5374.5. (a) At the time of each bus terminal inspection conducted
by the Department of the California Highway Patrol pursuant to
subdivision (c) of Section 34501 of the Vehicle Code, every
charter-party carrier of passengers shall furnish both the Department
of the California Highway Patrol and the commission a list, prepared
under oath, of all vehicles used in transportation for compensation
during the period since the last inspection. The commission shall
furnish a copy of the list to the carrier's insurer, if the carrier's
accident liability protection is provided by a policy of insurance.
This subdivision does 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.
(b) If the charter-party carrier's insurer informs the commission
that the carrier has failed to obtain insurance coverage for any
vehicle reported on the list, the commission may, in addition to any
other penalty provided in this chapter, for a first occurrence,
suspend the carrier's certificate or permit or impose a fine, or
both, and for a second or subsequent occurrence may suspend or revoke
the certificate or impose a fine, or both.
5374.6. Every charter-party carrier earning over three hundred
fifty thousand dollars ($350,000) in annual gross operating revenue
shall, under oath, file annually a report indicating the number,
classification, and compensation of all employees and owner-operator
drivers hired or engaged during the reporting period. The commission
shall submit a copy of the report to the administrator of the carrier'
s workers' compensation self-insurance plan if the carrier is
self-insured, or to the carrier's workers' compensation insurer if
the carrier's workers' compensation protection is provided by a
policy or policies of insurance. The commission shall not be
obligated to undertake an independent investigation of the adequacy
of workers' compensation insurance coverage based on the information
contained in the report, if the carrier has complied with Section
5378.1.
5375. The commission may, with or without hearing, issue or refuse
to issue a permit or certificate. If the commission finds that public
convenience and necessity require the proposed transportation
service and the applicant possess satisfactory fitness and financial
responsibility to initiate and conduct the proposed transportation
services, and will faithfully comply with the rules and regulations
adopted by the commission with respect thereto, it shall issue the
permit or certificate to conduct the requested operations, or may
issue it for the partial exercise of the privilege sought, and may
attach to the permit or certificate such terms and conditions as, in
its judgment, are required in the public interest; provided also that
the permit or certificate shall not require the filing or
publication of time schedules or tariffs. The fact that the applicant
for the certificate is, or may later become a holder of a
certificate of public convenience and necessity as a passenger stage
corporation issued pursuant to the provisions of Article 2
(commencing with Section 1031), Chapter 5, Part 1, Division 1, of
this code shall not be deemed inconsistent with the provisions of
this section, and such dual authority may be authorized.
5376. A permit or certificate, or renewal thereof, is effective for
three years, unless suspended or revoked by the commission.
5377. No permit issued pursuant to this article, or rights to
conduct any of the services therein authorized, shall be sold,
leased, or assigned, or otherwise transferred or encumbered.
5377.1. No certificate issued pursuant to, or rights to conduct any
of the services authorized by, this article shall be sold, leased,
or assigned, or otherwise transferred or encumbered, unless
authorized by the commission. A filing fee of three hundred dollars
($300) shall accompany all applications.
5378. (a) The commission may cancel, revoke, or suspend any
operating permit or certificate issued pursuant to this chapter upon
any of the following grounds:
(1) The violation of any of the provisions of this chapter, or of
any operating permit or certificate issued thereunder.
(2) The violation of any order, decision, rule, regulation,
direction, demand, or requirement established by the commission
pursuant to this chapter.
(3) The conviction of the charter-party carrier of passengers of
any misdemeanor under this chapter while holding operating authority
issued by the commission or the conviction of the carrier or its
officers of a felony while holding operating authority issued by the
commission, limited to robbery, burglary, larceny, fraud, or
intentional dishonesty for personal gain.
(4) The rendition of a judgment against the charter-party carrier
of passengers for any penalty imposed under this chapter.
(5) The failure of a charter-party carrier of passengers to pay
any fee imposed upon the carrier within the time required by law.
(6) On request of the holder of the permit or certificate.
(7) Failure of a permit or certificate holder to operate and
perform reasonable service. That failure may include repeated
violations of the Vehicle Code or of regulations contained in Title
13 of the California Code of Regulations relative to motor vehicle
safety, by employees of the permitholder or certificate holder, that
support an inference of unsafe operation or willful neglect of the
public safety by the permitholder or certificate holder.
(8) Consistent failure of the charter-party carrier of passengers
to maintain its vehicles 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, as shown by the records of the commission, the
Department of Motor Vehicles, the Department of the California
Highway Patrol, or the carrier. This paragraph does 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.
(9) The knowing and willful filing of a false report that
understates revenues and fees.
(10) Failure of a permit or certificate holder, or of any of its
employees, to follow any order, decision, rule, regulation,
direction, demand, ordinance, or other requirement established by the
governing body of an airport, including solicitation practices.
(b) The commission may levy a civil penalty of up to seven
thousand five hundred dollars ($7,500) upon the holder of an
operating permit or certificate issued pursuant to this chapter, for
any of the grounds specified in subdivision (a), as an alternative to
canceling, revoking, or suspending the permit or certificate. The
commission may also levy interest upon the civil penalty, which shall
be calculated as of the date on which the civil penalty is unpaid
and delinquent. The commission shall deposit at least monthly all
civil penalties and interest collected pursuant to this section into
the General Fund.
5378.1. (a) Beginning July 1, 1990, and continuing thereafter,
every charter-party carrier shall file with the commission one of the
following:
(1) A certificate of workers' compensation coverage for its
employees issued by an admitted insurer.
(2) A certification of consent to self-insure issued by the
Director of Industrial Relations.
(3) A statement under penalty of perjury, stating that, in its
operations as a charter-party carrier, it does not employ any person
in any manner so as to become subject to the workers' compensation
laws of this state.
(b) The workers' compensation certified to under paragraph (1) of
subdivision (a) shall be effective until canceled. Cancellation shall
require 30 days' advance notice.
(c) If, after filing the statement described in paragraph (3) of
subdivision (a), the carrier becomes subject to the workers'
compensation laws of this state, the carrier shall promptly notify
the commission that the carrier is withdrawing its statement under
paragraph (3) of subdivision (a), and shall simultaneously file the
certificate described in either paragraph (1) or (2) of subdivision
(a).
(d) The commission may adopt rules and regulations that it
determines to be necessary to carry out this section.
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 either (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, or (2) for failure to enroll all drivers in the pull notice
system as required by Section 1808.1 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.
5378.6. (a) The commission shall deny a new or renewal application
for a charter-party carrier certificate or permit upon receipt of a
written recommendation from the Department of the California Highway
Patrol that specifically indicates compliance with subdivision (b),
and indicates that the applicant has failed to do either of the
following:
(1) Maintain any vehicle used in transportation for compensation
in a safe operating condition or to comply with the Vehicle Code or
the regulations contained in Title 13 of the California Code of
Regulations relative to motor carrier safety. This paragraph does 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.
(2) Enroll all drivers in the Department of Motor Vehicles'
Employer Pull Notice Program implementing Section 1808.1 of the
Vehicle Code.
(b) Before transmitting a recommendation pursuant to subdivision
(a) to the commission, the Department of the California Highway
Patrol shall notify the applicant for the charter-party carrier
certificate or permit of all of the following in writing:
(1) That the department has determined that the applicant'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 denial of the applicant'
s certificate or permit by the commission.
(3) That the applicant may request a review of the determination
by the department within five days of its receipt of the notice
required under this subdivision. The department shall, upon request,
conduct and evaluate that review prior to transmitting any
notification to the commission pursuant to subdivision (a).
(c) Whenever the commission denies an application for renewal
pursuant to subdivision (a), the commission shall furnish the
charter-party carrier written notice of the denial and shall hold a
hearing within a reasonable time, not to exceed 21 days, after a
written request 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 denial was improper or
unwarranted. At the conclusion of the hearing, the commission may, in
addition to any other remedy provided in this part, reverse the
denial, or sustain the denial.
(d) Any applicant for a charter-party carrier certificate or
permit denied pursuant to subdivision (a), whose denial has not been
reversed as a result of the hearing provided for in subdivision (c),
that wishes to obtain a certificate or permit shall reapply for the
desired authority.
5378.7. (a) Upon receipt of a stop order issued by the Director of
Industrial Relations pursuant to Section 3710.1 of the Labor Code,
the commission shall investigate to determine whether the
charter-party carrier of passengers has filed a false statement
relative to workers' compensation insurance coverage, in violation of
statute, or rules or orders of the commission. If, after notice and
opportunity to be heard, the commission determines that there has
been a violation of statute, or rules or orders of the commission,
the commission shall impose appropriate penalties, which may include
a fine and suspension of operating authority for a violation.
(b) Upon receipt of a complaint from the Director of Industrial
Relations, that a final judgment has been entered against any
charter-party carrier of passengers as a result of an award having
been made to an employee pursuant to Section 3716.2 of the Labor
Code, the commission shall, 30 days from the date the carrier is
mailed the notice, revoke the carrier's permit unless the judgment
has been satisfied or has been discharged in accordance with the
bankruptcy laws of the United States or the carrier requests a
hearing pursuant to subdivision (c).
(c) Within seven days of receipt of a complaint from the Director
of Industrial Relations that a final judgment has been entered
against any charter-party carrier of passengers as a result of an
award having been made to an employee pursuant to Section 3716.2 of
the Labor Code, the commission shall furnish the carrier named in the
final judgment written notice of the right to a hearing regarding
the complaint and the procedure to follow to request a hearing. The
notice shall state that the commission must revoke the carrier's
permit to operate pursuant to subdivision (b) after 30 days from the
date the notice is mailed unless the carrier provides proof that the
judgment is satisfied or has been discharged in accordance with the
bankruptcy laws of the United States and the commission has been so
notified seven days prior to the conclusion of the 30-day waiting
period. The notice shall also inform the carrier of a right to a
hearing and the procedures to follow to request a hearing. The
carrier shall have 10 days from the date the notice is sent by the
commission to request a hearing. The request for the hearing shall
stay the revocation. The hearing shall be held within 30 days of the
receipt of the request. If the commission finds that an unsatisfied
judgment exists concerning a debt arising under Section 3717 of the
Labor Code, the commission shall immediately revoke the carrier's
permit.
5379. After the cancellation or revocation of a permit or
certificate, or during the period of its suspension, or after the
expiration of its permit or certificate, it is unlawful for a
charter-party carrier of passengers to conduct any operations as a
carrier. The commission may either grant or deny an application for a
new permit or certificate whenever it appears that a prior permit or
certificate of the applicant has been canceled or revoked pursuant
to Section 5378 or whenever it appears, after hearing, that as a
prior permit or certificate holder, the applicant engaged in any of
the unlawful activities set forth in Section 5378 for which his or
her permit or certificate might have been canceled or revoked.
5379.5. The commission may, on a complaint alleging that any
corporation or person is operating as a charter-party carrier of
passengers without a valid certificate or permit in violation of this
chapter, or on its own motion without a complaint, with or without
notice of a hearing, order the corporation or person so operating to
cease and desist from that operation until the commission makes and
files its decision in the matter or until further order of the
commission.
5371. No charter-party carrier of passengers excepting transit
districts, transit authorities or cities owning and operating local
transit systems themselves or through wholly owned nonprofit
corporations shall engage in transportation services made subject to
this chapter without first having obtained from the commission a
certificate that public convenience and necessity require the
operation, except that certain specific transportation services as
defined in Section 5384 may be conducted under authority of a permit
issued by the commission.
5371.1. (a) No charter-party carrier of passengers issued a class A
certificate subject to this section shall be restricted as to point
of origin or destination in the State of California.
(b) Every application for a certificate or permit, or renewal
thereof, shall be accompanied by the appropriate fee as specified in
Section 5373.1.
5371.2. (a) All holders of certificates issued under this section
shall operate from a service area to be determined by the commission.
In no case shall this area encompass more than a radius of 125 air
miles from the home terminal. The home terminal shall be designated
by the applicant. This certificate shall be classified as a class B
certificate. This section shall not apply to certificates subject to
Section 5371.1.
(b) The restriction on a service area imposed by subdivision (a)
does not apply to the holder of a class B certificate if that person
is providing charter bus transportation as defined in subdivision (b)
of Section 5363.
5371.3. A class C certificate holder is one who provides
transportation services incidental to commercial balloon operations,
commercial river rafting, or skiing. This section does not apply to
certificates issued under Section 5371.1 or 5371.2.
5371.4. (a) The governing body of any city, county, or city and
county may not impose a fee on charter-party carriers operating
limousines. However, the governing body of any city, county, or city
and county may impose a business license fee on, and may adopt and
enforce any reasonable rules and regulations pertaining to operations
within its boundaries for, any charter-party carrier domiciled or
maintaining a business office within that city, county, or city and
county.
(b) The governing body of any airport may not impose vehicle
safety, vehicle licensing, or insurance requirements on charter-party
carriers operating limousines that are more burdensome than those
imposed by the commission. However, the governing board of any
airport may require a charter-party carrier operating limousines to
obtain an airport permit for operating authority at the airport.
(c) Notwithstanding subdivisions (a) and (b), the governing body
of any airport may adopt and enforce reasonable and nondiscriminatory
local airport rules, regulations, and ordinances pertaining to
access, use of streets and roads, parking, traffic control, passenger
transfers, trip fees, and occupancy, and the use of buildings and
facilities, that are applicable to charter-party carriers operating
limousines on airport property.
(d) This section does not apply to any agreement entered into
pursuant to Sections 21690.5 to 21690.9, inclusive, between the
governing body of an airport and charter-party carriers operating
limousines.
(e) The commission shall conduct an audit and review of the annual
gross revenues earned by charter-party carriers operating limousines
for the purpose of ascertaining whether the imposition of additional
fees based on a charter-party carrier's gross annual revenues would
place an undue administrative or financial burden on the
charter-party carrier industry. The commission shall report its
findings to the Legislature on or before June 30, 1992.
(f) The governing body of any airport shall not impose a fee based
on gross receipts of charter-party carriers operating limousines.
(g) Notwithstanding subdivisions (a) to (f), inclusive, nothing in
this section prohibits a city, county, city and county, or the
governing body of any airport, from adopting and enforcing reasonable
permit requirements, fees, rules, and regulations applicable to
charter-party carriers of passengers other than those operating
limousines.
(h) Notwithstanding subdivisions (a) to (f), inclusive, a city,
county, or city and county may impose reasonable rules for the
inspection of waybills of charter-party carriers of passengers
operating within the jurisdiction of the city, county, or city and
county, for purposes of verifying valid prearranged travel.
(i) For the purposes of this section, "limousine" includes 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.
5371.5. (a) Upon receipt of a complaint containing sufficient
information to warrant conducting an investigation, the commission
shall investigate any business that advertises limousine-for-hire or
passenger charter transportation service for compensation in motor
vehicles. The commission shall, in a rulemaking or other appropriate
procedure, adopt criteria that establishes the type of information,
if contained in a complaint, that is sufficient to warrant an
investigation. Pursuant to this investigation, the commission shall
do all of the following:
(1) Determine which businesses, if any, are required to have in
effect a passenger charter-party carrier certificate or permit
pursuant to Section 5371 but do not have the required certificate or
permit.
(2) Inform any business not having a required certificate or
permit that it is in violation of law.
(3) Within 60 days of informing the business pursuant to paragraph
(2), institute civil or criminal proceedings, or both, pursuant to
Article 6 (commencing with Section 5411) or any other applicable law.
(b) For the purposes of this section, "advertises" includes the
undertaking of any action described in subdivision (b) of Section
5386.
5371.6. (a) The Legislature finds and declares that advertising and
use of telephone service is essential for charter-party carriers of
passengers to obtain business and to conduct intrastate passenger
transportation services. Unlawful advertisements by unlicensed
charter-party carriers of passengers has resulted in properly
licensed and regulated charter-party carriers of passengers competing
with unlicensed charter-party carriers of passengers using unfair
business practices. Unlicensed charter-party carriers of passengers
have also exposed citizens of the state to unscrupulous persons who
portray themselves as properly licensed, qualified, and insured
charter-party carriers of passengers. Many of these unlicensed
charter-party carriers of passengers have been found to have operated
their vehicles without insurance or in an unsafe manner, placing the
citizens of the state at risk.
(b) (1) The Legislature finds and declares that the termination of
telephone service utilized by unlicensed charter-party carriers of
passengers is essential to ensure the public safety and welfare.
Therefore, the commission should take enforcement action as specified
in this section to disconnect telephone service of unlicensed
charter-party carriers of passengers who unlawfully advertise
passenger transportation services in yellow page directories and
other publications. The enforcement actions provided for by this
section are consistent with the decision of the California Supreme
Court in Goldin v. Public Utilities Commission (1979) 23 Cal.3d 638.
(2) For purposes of this section, a telephone corporation or
telegraph corporation, or a corporation that holds a controlling
interest in the telephone or telegraph corporation, or any business
that is a subsidiary or affiliate of the telephone or telegraph
corporation, that has the name and address of the subscriber to a
telephone number being used by an unlicensed charter-party carrier of
passengers shall provide the commission, or an authorized officer or
employee of the commission, upon demand, and the order of a
magistrate, access to this information. A magistrate may only issue
an order, for the purposes of this subdivision, if the magistrate has
made the findings required by subdivision (c).
(c) A telephone or telegraph corporation shall refuse telephone
service to a new subscriber and shall disconnect telephone service of
an existing subscriber only after it is shown that other available
enforcement remedies of the commission have failed to terminate
unlawful activities detrimental to the public welfare and safety, and
upon receipt from any authorized officer or employee of the
commission of a writing, signed by a magistrate, as defined by
Sections 807 and 808 of the Penal Code, finding that probable cause
exists to believe that the subscriber is advertising or holding out
to the public to perform, or is performing, charter-party carrier of
passengers transportation services without having in force a permit
or certificate issued by the commission authorizing those services,
or that the telephone service otherwise is being used or is to be
used as an instrumentality, directly or indirectly, to violate or to
assist in violation of the laws requiring a charter-party carrier of
passengers permit or certificate. Included in the writing of the
magistrate shall be a finding that there is probable cause to believe
that the subject telephone facilities have been or are to be used in
the commission or facilitation of holding out to the public to
perform, or in performing, charter-party carrier of passengers
transportation services without having in force a permit or
certificate issued by the commission authorizing those services, and
that, absent immediate and summary action, a danger to public welfare
or safety will result.
(d) Any person aggrieved by any action taken pursuant to this
section shall have the right to file a complaint with the commission
and may include therein a request for interim relief. The commission
shall schedule a public hearing on the complaint to be held within 21
calendar days of the filing and assignment of a docket number to the
complaint. The remedy provided by this section shall be exclusive.
No other action at law or in equity shall accrue against any
telephone or telegraph corporation because of, or as a result of, any
matter or thing done or threatened to be done pursuant to this
section.
(e) At any hearing held on a complaint filed with the commission
pursuant to subdivision (d), the commission staff shall have the
right to participate, including the right to present evidence and
argument and to present and cross-examine witnesses. The commission
staff shall have both the burden of providing that the use made or to
be made of the telephone service is to hold out to the public to
perform, or to assist in performing, services as a charter-party
carrier of passengers, or that the telephone service is being or is
to be used as an instrumentality, directly or indirectly, to violate
or to assist in violation of the certification or permitting
requirements applicable to charter-party carriers of passengers and
that the character of the acts are such that, absent immediate and
summary action, a danger to public welfare or safety will result, and
the burden of persuading the commission that the telephone services
should be refused or should not be restored.
(f) The telephone or telegraph corporation, immediately upon
refusal or disconnection of service in accordance with subdivision
(c), shall notify the subscriber in writing that the refusal or
disconnection of telephone service has been made pursuant to a
request of the commission and the writing of a magistrate, and shall
include with the notice a copy of this section, a copy of the writing
of the magistrate, and a statement that the customer or subscriber
may request information from the commission at its San Francisco or
Los Angeles office concerning any provision of this section and the
manner in which a complaint may be filed.
(g) The provisions of this section are an implied term of every
contract for telephone service. The provisions of this section are a
part of any application for telephone service. Applicants for, and
subscribers and customers of, telephone service have, as a matter of
law, consented to the provisions of this section as a consideration
for the furnishing of the telephone service.
(h) As used in this section, the terms "person," "customer," and
"subscriber" include a subscriber to telephone service, any person
using the telephone service of a subscriber, an applicant for
telephone service, a corporation, as defined in Section 204, a
"person" as defined in Section 205, a limited liability company, a
partnership, an association, and includes their lessees and assigns.
(i) (1) As used in this section, "telephone corporation" means a
"telephone corporation" as defined in Section 234.
(2) As used in this section, "telegraph corporation" means a
"telegraph corporation" as defined in Section 236.
(j) As used in this section, "authorized officer or employee of
the commission" includes the executive director of the commission or
any commission employee designated pursuant to paragraph (5) of
subdivision (a) of Section 830.11 of the Penal Code.
5372. Applications for permits and certificates shall be in
writing, verified under oath, and shall be in such form, contain such
information, and be accompanied by such proof of service upon
interested parties as the commission may require.
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.
(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.
(d) The commission shall deposit the fees collected pursuant to
subdivisions (b) and (c) in the Motor Vehicle Account in the State
Transportation Fund.
5373.5. The commission shall not issue or authorize the transfer of
any certificate or permit under this chapter to any person or
corporation against whom a final judgment has been entered and whose
name has been transmitted to the commission pursuant to Section
3716.4 of the Labor Code, unless that judgment has been satisfied or
has been discharged in accordance with the bankruptcy laws of the
United States.
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 a 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.
(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.
5374.5. (a) At the time of each bus terminal inspection conducted
by the Department of the California Highway Patrol pursuant to
subdivision (c) of Section 34501 of the Vehicle Code, every
charter-party carrier of passengers shall furnish both the Department
of the California Highway Patrol and the commission a list, prepared
under oath, of all vehicles used in transportation for compensation
during the period since the last inspection. The commission shall
furnish a copy of the list to the carrier's insurer, if the carrier's
accident liability protection is provided by a policy of insurance.
This subdivision does 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.
(b) If the charter-party carrier's insurer informs the commission
that the carrier has failed to obtain insurance coverage for any
vehicle reported on the list, the commission may, in addition to any
other penalty provided in this chapter, for a first occurrence,
suspend the carrier's certificate or permit or impose a fine, or
both, and for a second or subsequent occurrence may suspend or revoke
the certificate or impose a fine, or both.
5374.6. Every charter-party carrier earning over three hundred
fifty thousand dollars ($350,000) in annual gross operating revenue
shall, under oath, file annually a report indicating the number,
classification, and compensation of all employees and owner-operator
drivers hired or engaged during the reporting period. The commission
shall submit a copy of the report to the administrator of the carrier'
s workers' compensation self-insurance plan if the carrier is
self-insured, or to the carrier's workers' compensation insurer if
the carrier's workers' compensation protection is provided by a
policy or policies of insurance. The commission shall not be
obligated to undertake an independent investigation of the adequacy
of workers' compensation insurance coverage based on the information
contained in the report, if the carrier has complied with Section
5378.1.
5375. The commission may, with or without hearing, issue or refuse
to issue a permit or certificate. If the commission finds that public
convenience and necessity require the proposed transportation
service and the applicant possess satisfactory fitness and financial
responsibility to initiate and conduct the proposed transportation
services, and will faithfully comply with the rules and regulations
adopted by the commission with respect thereto, it shall issue the
permit or certificate to conduct the requested operations, or may
issue it for the partial exercise of the privilege sought, and may
attach to the permit or certificate such terms and conditions as, in
its judgment, are required in the public interest; provided also that
the permit or certificate shall not require the filing or
publication of time schedules or tariffs. The fact that the applicant
for the certificate is, or may later become a holder of a
certificate of public convenience and necessity as a passenger stage
corporation issued pursuant to the provisions of Article 2
(commencing with Section 1031), Chapter 5, Part 1, Division 1, of
this code shall not be deemed inconsistent with the provisions of
this section, and such dual authority may be authorized.
5376. A permit or certificate, or renewal thereof, is effective for
three years, unless suspended or revoked by the commission.
5377. No permit issued pursuant to this article, or rights to
conduct any of the services therein authorized, shall be sold,
leased, or assigned, or otherwise transferred or encumbered.
5377.1. No certificate issued pursuant to, or rights to conduct any
of the services authorized by, this article shall be sold, leased,
or assigned, or otherwise transferred or encumbered, unless
authorized by the commission. A filing fee of three hundred dollars
($300) shall accompany all applications.
5378. (a) The commission may cancel, revoke, or suspend any
operating permit or certificate issued pursuant to this chapter upon
any of the following grounds:
(1) The violation of any of the provisions of this chapter, or of
any operating permit or certificate issued thereunder.
(2) The violation of any order, decision, rule, regulation,
direction, demand, or requirement established by the commission
pursuant to this chapter.
(3) The conviction of the charter-party carrier of passengers of
any misdemeanor under this chapter while holding operating authority
issued by the commission or the conviction of the carrier or its
officers of a felony while holding operating authority issued by the
commission, limited to robbery, burglary, larceny, fraud, or
intentional dishonesty for personal gain.
(4) The rendition of a judgment against the charter-party carrier
of passengers for any penalty imposed under this chapter.
(5) The failure of a charter-party carrier of passengers to pay
any fee imposed upon the carrier within the time required by law.
(6) On request of the holder of the permit or certificate.
(7) Failure of a permit or certificate holder to operate and
perform reasonable service. That failure may include repeated
violations of the Vehicle Code or of regulations contained in Title
13 of the California Code of Regulations relative to motor vehicle
safety, by employees of the permitholder or certificate holder, that
support an inference of unsafe operation or willful neglect of the
public safety by the permitholder or certificate holder.
(8) Consistent failure of the charter-party carrier of passengers
to maintain its vehicles 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, as shown by the records of the commission, the
Department of Motor Vehicles, the Department of the California
Highway Patrol, or the carrier. This paragraph does 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.
(9) The knowing and willful filing of a false report that
understates revenues and fees.
(10) Failure of a permit or certificate holder, or of any of its
employees, to follow any order, decision, rule, regulation,
direction, demand, ordinance, or other requirement established by the
governing body of an airport, including solicitation practices.
(b) The commission may levy a civil penalty of up to seven
thousand five hundred dollars ($7,500) upon the holder of an
operating permit or certificate issued pursuant to this chapter, for
any of the grounds specified in subdivision (a), as an alternative to
canceling, revoking, or suspending the permit or certificate. The
commission may also levy interest upon the civil penalty, which shall
be calculated as of the date on which the civil penalty is unpaid
and delinquent. The commission shall deposit at least monthly all
civil penalties and interest collected pursuant to this section into
the General Fund.
5378.1. (a) Beginning July 1, 1990, and continuing thereafter,
every charter-party carrier shall file with the commission one of the
following:
(1) A certificate of workers' compensation coverage for its
employees issued by an admitted insurer.
(2) A certification of consent to self-insure issued by the
Director of Industrial Relations.
(3) A statement under penalty of perjury, stating that, in its
operations as a charter-party carrier, it does not employ any person
in any manner so as to become subject to the workers' compensation
laws of this state.
(b) The workers' compensation certified to under paragraph (1) of
subdivision (a) shall be effective until canceled. Cancellation shall
require 30 days' advance notice.
(c) If, after filing the statement described in paragraph (3) of
subdivision (a), the carrier becomes subject to the workers'
compensation laws of this state, the carrier shall promptly notify
the commission that the carrier is withdrawing its statement under
paragraph (3) of subdivision (a), and shall simultaneously file the
certificate described in either paragraph (1) or (2) of subdivision
(a).
(d) The commission may adopt rules and regulations that it
determines to be necessary to carry out this section.
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 either (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, or (2) for failure to enroll all drivers in the pull notice
system as required by Section 1808.1 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.
5378.6. (a) The commission shall deny a new or renewal application
for a charter-party carrier certificate or permit upon receipt of a
written recommendation from the Department of the California Highway
Patrol that specifically indicates compliance with subdivision (b),
and indicates that the applicant has failed to do either of the
following:
(1) Maintain any vehicle used in transportation for compensation
in a safe operating condition or to comply with the Vehicle Code or
the regulations contained in Title 13 of the California Code of
Regulations relative to motor carrier safety. This paragraph does 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.
(2) Enroll all drivers in the Department of Motor Vehicles'
Employer Pull Notice Program implementing Section 1808.1 of the
Vehicle Code.
(b) Before transmitting a recommendation pursuant to subdivision
(a) to the commission, the Department of the California Highway
Patrol shall notify the applicant for the charter-party carrier
certificate or permit of all of the following in writing:
(1) That the department has determined that the applicant'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 denial of the applicant'
s certificate or permit by the commission.
(3) That the applicant may request a review of the determination
by the department within five days of its receipt of the notice
required under this subdivision. The department shall, upon request,
conduct and evaluate that review prior to transmitting any
notification to the commission pursuant to subdivision (a).
(c) Whenever the commission denies an application for renewal
pursuant to subdivision (a), the commission shall furnish the
charter-party carrier written notice of the denial and shall hold a
hearing within a reasonable time, not to exceed 21 days, after a
written request 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 denial was improper or
unwarranted. At the conclusion of the hearing, the commission may, in
addition to any other remedy provided in this part, reverse the
denial, or sustain the denial.
(d) Any applicant for a charter-party carrier certificate or
permit denied pursuant to subdivision (a), whose denial has not been
reversed as a result of the hearing provided for in subdivision (c),
that wishes to obtain a certificate or permit shall reapply for the
desired authority.
5378.7. (a) Upon receipt of a stop order issued by the Director of
Industrial Relations pursuant to Section 3710.1 of the Labor Code,
the commission shall investigate to determine whether the
charter-party carrier of passengers has filed a false statement
relative to workers' compensation insurance coverage, in violation of
statute, or rules or orders of the commission. If, after notice and
opportunity to be heard, the commission determines that there has
been a violation of statute, or rules or orders of the commission,
the commission shall impose appropriate penalties, which may include
a fine and suspension of operating authority for a violation.
(b) Upon receipt of a complaint from the Director of Industrial
Relations, that a final judgment has been entered against any
charter-party carrier of passengers as a result of an award having
been made to an employee pursuant to Section 3716.2 of the Labor
Code, the commission shall, 30 days from the date the carrier is
mailed the notice, revoke the carrier's permit unless the judgment
has been satisfied or has been discharged in accordance with the
bankruptcy laws of the United States or the carrier requests a
hearing pursuant to subdivision (c).
(c) Within seven days of receipt of a complaint from the Director
of Industrial Relations that a final judgment has been entered
against any charter-party carrier of passengers as a result of an
award having been made to an employee pursuant to Section 3716.2 of
the Labor Code, the commission shall furnish the carrier named in the
final judgment written notice of the right to a hearing regarding
the complaint and the procedure to follow to request a hearing. The
notice shall state that the commission must revoke the carrier's
permit to operate pursuant to subdivision (b) after 30 days from the
date the notice is mailed unless the carrier provides proof that the
judgment is satisfied or has been discharged in accordance with the
bankruptcy laws of the United States and the commission has been so
notified seven days prior to the conclusion of the 30-day waiting
period. The notice shall also inform the carrier of a right to a
hearing and the procedures to follow to request a hearing. The
carrier shall have 10 days from the date the notice is sent by the
commission to request a hearing. The request for the hearing shall
stay the revocation. The hearing shall be held within 30 days of the
receipt of the request. If the commission finds that an unsatisfied
judgment exists concerning a debt arising under Section 3717 of the
Labor Code, the commission shall immediately revoke the carrier's
permit.
5379. After the cancellation or revocation of a permit or
certificate, or during the period of its suspension, or after the
expiration of its permit or certificate, it is unlawful for a
charter-party carrier of passengers to conduct any operations as a
carrier. The commission may either grant or deny an application for a
new permit or certificate whenever it appears that a prior permit or
certificate of the applicant has been canceled or revoked pursuant
to Section 5378 or whenever it appears, after hearing, that as a
prior permit or certificate holder, the applicant engaged in any of
the unlawful activities set forth in Section 5378 for which his or
her permit or certificate might have been canceled or revoked.
5379.5. The commission may, on a complaint alleging that any
corporation or person is operating as a charter-party carrier of
passengers without a valid certificate or permit in violation of this
chapter, or on its own motion without a complaint, with or without
notice of a hearing, order the corporation or person so operating to
cease and desist from that operation until the commission makes and
files its decision in the matter or until further order of the
commission.
5371. No charter-party carrier of passengers excepting transit
districts, transit authorities or cities owning and operating local
transit systems themselves or through wholly owned nonprofit
corporations shall engage in transportation services made subject to
this chapter without first having obtained from the commission a
certificate that public convenience and necessity require the
operation, except that certain specific transportation services as
defined in Section 5384 may be conducted under authority of a permit
issued by the commission.
5371.1. (a) No charter-party carrier of passengers issued a class A
certificate subject to this section shall be restricted as to point
of origin or destination in the State of California.
(b) Every application for a certificate or permit, or renewal
thereof, shall be accompanied by the appropriate fee as specified in
Section 5373.1.
5371.2. (a) All holders of certificates issued under this section
shall operate from a service area to be determined by the commission.
In no case shall this area encompass more than a radius of 125 air
miles from the home terminal. The home terminal shall be designated
by the applicant. This certificate shall be classified as a class B
certificate. This section shall not apply to certificates subject to
Section 5371.1.
(b) The restriction on a service area imposed by subdivision (a)
does not apply to the holder of a class B certificate if that person
is providing charter bus transportation as defined in subdivision (b)
of Section 5363.
5371.3. A class C certificate holder is one who provides
transportation services incidental to commercial balloon operations,
commercial river rafting, or skiing. This section does not apply to
certificates issued under Section 5371.1 or 5371.2.
5371.4. (a) The governing body of any city, county, or city and
county may not impose a fee on charter-party carriers operating
limousines. However, the governing body of any city, county, or city
and county may impose a business license fee on, and may adopt and
enforce any reasonable rules and regulations pertaining to operations
within its boundaries for, any charter-party carrier domiciled or
maintaining a business office within that city, county, or city and
county.
(b) The governing body of any airport may not impose vehicle
safety, vehicle licensing, or insurance requirements on charter-party
carriers operating limousines that are more burdensome than those
imposed by the commission. However, the governing board of any
airport may require a charter-party carrier operating limousines to
obtain an airport permit for operating authority at the airport.
(c) Notwithstanding subdivisions (a) and (b), the governing body
of any airport may adopt and enforce reasonable and nondiscriminatory
local airport rules, regulations, and ordinances pertaining to
access, use of streets and roads, parking, traffic control, passenger
transfers, trip fees, and occupancy, and the use of buildings and
facilities, that are applicable to charter-party carriers operating
limousines on airport property.
(d) This section does not apply to any agreement entered into
pursuant to Sections 21690.5 to 21690.9, inclusive, between the
governing body of an airport and charter-party carriers operating
limousines.
(e) The commission shall conduct an audit and review of the annual
gross revenues earned by charter-party carriers operating limousines
for the purpose of ascertaining whether the imposition of additional
fees based on a charter-party carrier's gross annual revenues would
place an undue administrative or financial burden on the
charter-party carrier industry. The commission shall report its
findings to the Legislature on or before June 30, 1992.
(f) The governing body of any airport shall not impose a fee based
on gross receipts of charter-party carriers operating limousines.
(g) Notwithstanding subdivisions (a) to (f), inclusive, nothing in
this section prohibits a city, county, city and county, or the
governing body of any airport, from adopting and enforcing reasonable
permit requirements, fees, rules, and regulations applicable to
charter-party carriers of passengers other than those operating
limousines.
(h) Notwithstanding subdivisions (a) to (f), inclusive, a city,
county, or city and county may impose reasonable rules for the
inspection of waybills of charter-party carriers of passengers
operating within the jurisdiction of the city, county, or city and
county, for purposes of verifying valid prearranged travel.
(i) For the purposes of this section, "limousine" includes 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.
5371.5. (a) Upon receipt of a complaint containing sufficient
information to warrant conducting an investigation, the commission
shall investigate any business that advertises limousine-for-hire or
passenger charter transportation service for compensation in motor
vehicles. The commission shall, in a rulemaking or other appropriate
procedure, adopt criteria that establishes the type of information,
if contained in a complaint, that is sufficient to warrant an
investigation. Pursuant to this investigation, the commission shall
do all of the following:
(1) Determine which businesses, if any, are required to have in
effect a passenger charter-party carrier certificate or permit
pursuant to Section 5371 but do not have the required certificate or
permit.
(2) Inform any business not having a required certificate or
permit that it is in violation of law.
(3) Within 60 days of informing the business pursuant to paragraph
(2), institute civil or criminal proceedings, or both, pursuant to
Article 6 (commencing with Section 5411) or any other applicable law.
(b) For the purposes of this section, "advertises" includes the
undertaking of any action described in subdivision (b) of Section
5386.
5371.6. (a) The Legislature finds and declares that advertising and
use of telephone service is essential for charter-party carriers of
passengers to obtain business and to conduct intrastate passenger
transportation services. Unlawful advertisements by unlicensed
charter-party carriers of passengers has resulted in properly
licensed and regulated charter-party carriers of passengers competing
with unlicensed charter-party carriers of passengers using unfair
business practices. Unlicensed charter-party carriers of passengers
have also exposed citizens of the state to unscrupulous persons who
portray themselves as properly licensed, qualified, and insured
charter-party carriers of passengers. Many of these unlicensed
charter-party carriers of passengers have been found to have operated
their vehicles without insurance or in an unsafe manner, placing the
citizens of the state at risk.
(b) (1) The Legislature finds and declares that the termination of
telephone service utilized by unlicensed charter-party carriers of
passengers is essential to ensure the public safety and welfare.
Therefore, the commission should take enforcement action as specified
in this section to disconnect telephone service of unlicensed
charter-party carriers of passengers who unlawfully advertise
passenger transportation services in yellow page directories and
other publications. The enforcement actions provided for by this
section are consistent with the decision of the California Supreme
Court in Goldin v. Public Utilities Commission (1979) 23 Cal.3d 638.
(2) For purposes of this section, a telephone corporation or
telegraph corporation, or a corporation that holds a controlling
interest in the telephone or telegraph corporation, or any business
that is a subsidiary or affiliate of the telephone or telegraph
corporation, that has the name and address of the subscriber to a
telephone number being used by an unlicensed charter-party carrier of
passengers shall provide the commission, or an authorized officer or
employee of the commission, upon demand, and the order of a
magistrate, access to this information. A magistrate may only issue
an order, for the purposes of this subdivision, if the magistrate has
made the findings required by subdivision (c).
(c) A telephone or telegraph corporation shall refuse telephone
service to a new subscriber and shall disconnect telephone service of
an existing subscriber only after it is shown that other available
enforcement remedies of the commission have failed to terminate
unlawful activities detrimental to the public welfare and safety, and
upon receipt from any authorized officer or employee of the
commission of a writing, signed by a magistrate, as defined by
Sections 807 and 808 of the Penal Code, finding that probable cause
exists to believe that the subscriber is advertising or holding out
to the public to perform, or is performing, charter-party carrier of
passengers transportation services without having in force a permit
or certificate issued by the commission authorizing those services,
or that the telephone service otherwise is being used or is to be
used as an instrumentality, directly or indirectly, to violate or to
assist in violation of the laws requiring a charter-party carrier of
passengers permit or certificate. Included in the writing of the
magistrate shall be a finding that there is probable cause to believe
that the subject telephone facilities have been or are to be used in
the commission or facilitation of holding out to the public to
perform, or in performing, charter-party carrier of passengers
transportation services without having in force a permit or
certificate issued by the commission authorizing those services, and
that, absent immediate and summary action, a danger to public welfare
or safety will result.
(d) Any person aggrieved by any action taken pursuant to this
section shall have the right to file a complaint with the commission
and may include therein a request for interim relief. The commission
shall schedule a public hearing on the complaint to be held within 21
calendar days of the filing and assignment of a docket number to the
complaint. The remedy provided by this section shall be exclusive.
No other action at law or in equity shall accrue against any
telephone or telegraph corporation because of, or as a result of, any
matter or thing done or threatened to be done pursuant to this
section.
(e) At any hearing held on a complaint filed with the commission
pursuant to subdivision (d), the commission staff shall have the
right to participate, including the right to present evidence and
argument and to present and cross-examine witnesses. The commission
staff shall have both the burden of providing that the use made or to
be made of the telephone service is to hold out to the public to
perform, or to assist in performing, services as a charter-party
carrier of passengers, or that the telephone service is being or is
to be used as an instrumentality, directly or indirectly, to violate
or to assist in violation of the certification or permitting
requirements applicable to charter-party carriers of passengers and
that the character of the acts are such that, absent immediate and
summary action, a danger to public welfare or safety will result, and
the burden of persuading the commission that the telephone services
should be refused or should not be restored.
(f) The telephone or telegraph corporation, immediately upon
refusal or disconnection of service in accordance with subdivision
(c), shall notify the subscriber in writing that the refusal or
disconnection of telephone service has been made pursuant to a
request of the commission and the writing of a magistrate, and shall
include with the notice a copy of this section, a copy of the writing
of the magistrate, and a statement that the customer or subscriber
may request information from the commission at its San Francisco or
Los Angeles office concerning any provision of this section and the
manner in which a complaint may be filed.
(g) The provisions of this section are an implied term of every
contract for telephone service. The provisions of this section are a
part of any application for telephone service. Applicants for, and
subscribers and customers of, telephone service have, as a matter of
law, consented to the provisions of this section as a consideration
for the furnishing of the telephone service.
(h) As used in this section, the terms "person," "customer," and
"subscriber" include a subscriber to telephone service, any person
using the telephone service of a subscriber, an applicant for
telephone service, a corporation, as defined in Section 204, a
"person" as defined in Section 205, a limited liability company, a
partnership, an association, and includes their lessees and assigns.
(i) (1) As used in this section, "telephone corporation" means a
"telephone corporation" as defined in Section 234.
(2) As used in this section, "telegraph corporation" means a
"telegraph corporation" as defined in Section 236.
(j) As used in this section, "authorized officer or employee of
the commission" includes the executive director of the commission or
any commission employee designated pursuant to paragraph (5) of
subdivision (a) of Section 830.11 of the Penal Code.
5372. Applications for permits and certificates shall be in
writing, verified under oath, and shall be in such form, contain such
information, and be accompanied by such proof of service upon
interested parties as the commission may require.
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.
(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.
(d) The commission shall deposit the fees collected pursuant to
subdivisions (b) and (c) in the Motor Vehicle Account in the State
Transportation Fund.
5373.5. The commission shall not issue or authorize the transfer of
any certificate or permit under this chapter to any person or
corporation against whom a final judgment has been entered and whose
name has been transmitted to the commission pursuant to Section
3716.4 of the Labor Code, unless that judgment has been satisfied or
has been discharged in accordance with the bankruptcy laws of the
United States.
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 a 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.
(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.
5374.5. (a) At the time of each bus terminal inspection conducted
by the Department of the California Highway Patrol pursuant to
subdivision (c) of Section 34501 of the Vehicle Code, every
charter-party carrier of passengers shall furnish both the Department
of the California Highway Patrol and the commission a list, prepared
under oath, of all vehicles used in transportation for compensation
during the period since the last inspection. The commission shall
furnish a copy of the list to the carrier's insurer, if the carrier's
accident liability protection is provided by a policy of insurance.
This subdivision does 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.
(b) If the charter-party carrier's insurer informs the commission
that the carrier has failed to obtain insurance coverage for any
vehicle reported on the list, the commission may, in addition to any
other penalty provided in this chapter, for a first occurrence,
suspend the carrier's certificate or permit or impose a fine, or
both, and for a second or subsequent occurrence may suspend or revoke
the certificate or impose a fine, or both.
5374.6. Every charter-party carrier earning over three hundred
fifty thousand dollars ($350,000) in annual gross operating revenue
shall, under oath, file annually a report indicating the number,
classification, and compensation of all employees and owner-operator
drivers hired or engaged during the reporting period. The commission
shall submit a copy of the report to the administrator of the carrier'
s workers' compensation self-insurance plan if the carrier is
self-insured, or to the carrier's workers' compensation insurer if
the carrier's workers' compensation protection is provided by a
policy or policies of insurance. The commission shall not be
obligated to undertake an independent investigation of the adequacy
of workers' compensation insurance coverage based on the information
contained in the report, if the carrier has complied with Section
5378.1.
5375. The commission may, with or without hearing, issue or refuse
to issue a permit or certificate. If the commission finds that public
convenience and necessity require the proposed transportation
service and the applicant possess satisfactory fitness and financial
responsibility to initiate and conduct the proposed transportation
services, and will faithfully comply with the rules and regulations
adopted by the commission with respect thereto, it shall issue the
permit or certificate to conduct the requested operations, or may
issue it for the partial exercise of the privilege sought, and may
attach to the permit or certificate such terms and conditions as, in
its judgment, are required in the public interest; provided also that
the permit or certificate shall not require the filing or
publication of time schedules or tariffs. The fact that the applicant
for the certificate is, or may later become a holder of a
certificate of public convenience and necessity as a passenger stage
corporation issued pursuant to the provisions of Article 2
(commencing with Section 1031), Chapter 5, Part 1, Division 1, of
this code shall not be deemed inconsistent with the provisions of
this section, and such dual authority may be authorized.
5376. A permit or certificate, or renewal thereof, is effective for
three years, unless suspended or revoked by the commission.
5377. No permit issued pursuant to this article, or rights to
conduct any of the services therein authorized, shall be sold,
leased, or assigned, or otherwise transferred or encumbered.
5377.1. No certificate issued pursuant to, or rights to conduct any
of the services authorized by, this article shall be sold, leased,
or assigned, or otherwise transferred or encumbered, unless
authorized by the commission. A filing fee of three hundred dollars
($300) shall accompany all applications.
5378. (a) The commission may cancel, revoke, or suspend any
operating permit or certificate issued pursuant to this chapter upon
any of the following grounds:
(1) The violation of any of the provisions of this chapter, or of
any operating permit or certificate issued thereunder.
(2) The violation of any order, decision, rule, regulation,
direction, demand, or requirement established by the commission
pursuant to this chapter.
(3) The conviction of the charter-party carrier of passengers of
any misdemeanor under this chapter while holding operating authority
issued by the commission or the conviction of the carrier or its
officers of a felony while holding operating authority issued by the
commission, limited to robbery, burglary, larceny, fraud, or
intentional dishonesty for personal gain.
(4) The rendition of a judgment against the charter-party carrier
of passengers for any penalty imposed under this chapter.
(5) The failure of a charter-party carrier of passengers to pay
any fee imposed upon the carrier within the time required by law.
(6) On request of the holder of the permit or certificate.
(7) Failure of a permit or certificate holder to operate and
perform reasonable service. That failure may include repeated
violations of the Vehicle Code or of regulations contained in Title
13 of the California Code of Regulations relative to motor vehicle
safety, by employees of the permitholder or certificate holder, that
support an inference of unsafe operation or willful neglect of the
public safety by the permitholder or certificate holder.
(8) Consistent failure of the charter-party carrier of passengers
to maintain its vehicles 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, as shown by the records of the commission, the
Department of Motor Vehicles, the Department of the California
Highway Patrol, or the carrier. This paragraph does 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.
(9) The knowing and willful filing of a false report that
understates revenues and fees.
(10) Failure of a permit or certificate holder, or of any of its
employees, to follow any order, decision, rule, regulation,
direction, demand, ordinance, or other requirement established by the
governing body of an airport, including solicitation practices.
(b) The commission may levy a civil penalty of up to seven
thousand five hundred dollars ($7,500) upon the holder of an
operating permit or certificate issued pursuant to this chapter, for
any of the grounds specified in subdivision (a), as an alternative to
canceling, revoking, or suspending the permit or certificate. The
commission may also levy interest upon the civil penalty, which shall
be calculated as of the date on which the civil penalty is unpaid
and delinquent. The commission shall deposit at least monthly all
civil penalties and interest collected pursuant to this section into
the General Fund.
5378.1. (a) Beginning July 1, 1990, and continuing thereafter,
every charter-party carrier shall file with the commission one of the
following:
(1) A certificate of workers' compensation coverage for its
employees issued by an admitted insurer.
(2) A certification of consent to self-insure issued by the
Director of Industrial Relations.
(3) A statement under penalty of perjury, stating that, in its
operations as a charter-party carrier, it does not employ any person
in any manner so as to become subject to the workers' compensation
laws of this state.
(b) The workers' compensation certified to under paragraph (1) of
subdivision (a) shall be effective until canceled. Cancellation shall
require 30 days' advance notice.
(c) If, after filing the statement described in paragraph (3) of
subdivision (a), the carrier becomes subject to the workers'
compensation laws of this state, the carrier shall promptly notify
the commission that the carrier is withdrawing its statement under
paragraph (3) of subdivision (a), and shall simultaneously file the
certificate described in either paragraph (1) or (2) of subdivision
(a).
(d) The commission may adopt rules and regulations that it
determines to be necessary to carry out this section.
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 either (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, or (2) for failure to enroll all drivers in the pull notice
system as required by Section 1808.1 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.
5378.6. (a) The commission shall deny a new or renewal application
for a charter-party carrier certificate or permit upon receipt of a
written recommendation from the Department of the California Highway
Patrol that specifically indicates compliance with subdivision (b),
and indicates that the applicant has failed to do either of the
following:
(1) Maintain any vehicle used in transportation for compensation
in a safe operating condition or to comply with the Vehicle Code or
the regulations contained in Title 13 of the California Code of
Regulations relative to motor carrier safety. This paragraph does 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.
(2) Enroll all drivers in the Department of Motor Vehicles'
Employer Pull Notice Program implementing Section 1808.1 of the
Vehicle Code.
(b) Before transmitting a recommendation pursuant to subdivision
(a) to the commission, the Department of the California Highway
Patrol shall notify the applicant for the charter-party carrier
certificate or permit of all of the following in writing:
(1) That the department has determined that the applicant'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 denial of the applicant'
s certificate or permit by the commission.
(3) That the applicant may request a review of the determination
by the department within five days of its receipt of the notice
required under this subdivision. The department shall, upon request,
conduct and evaluate that review prior to transmitting any
notification to the commission pursuant to subdivision (a).
(c) Whenever the commission denies an application for renewal
pursuant to subdivision (a), the commission shall furnish the
charter-party carrier written notice of the denial and shall hold a
hearing within a reasonable time, not to exceed 21 days, after a
written request 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 denial was improper or
unwarranted. At the conclusion of the hearing, the commission may, in
addition to any other remedy provided in this part, reverse the
denial, or sustain the denial.
(d) Any applicant for a charter-party carrier certificate or
permit denied pursuant to subdivision (a), whose denial has not been
reversed as a result of the hearing provided for in subdivision (c),
that wishes to obtain a certificate or permit shall reapply for the
desired authority.
5378.7. (a) Upon receipt of a stop order issued by the Director of
Industrial Relations pursuant to Section 3710.1 of the Labor Code,
the commission shall investigate to determine whether the
charter-party carrier of passengers has filed a false statement
relative to workers' compensation insurance coverage, in violation of
statute, or rules or orders of the commission. If, after notice and
opportunity to be heard, the commission determines that there has
been a violation of statute, or rules or orders of the commission,
the commission shall impose appropriate penalties, which may include
a fine and suspension of operating authority for a violation.
(b) Upon receipt of a complaint from the Director of Industrial
Relations, that a final judgment has been entered against any
charter-party carrier of passengers as a result of an award having
been made to an employee pursuant to Section 3716.2 of the Labor
Code, the commission shall, 30 days from the date the carrier is
mailed the notice, revoke the carrier's permit unless the judgment
has been satisfied or has been discharged in accordance with the
bankruptcy laws of the United States or the carrier requests a
hearing pursuant to subdivision (c).
(c) Within seven days of receipt of a complaint from the Director
of Industrial Relations that a final judgment has been entered
against any charter-party carrier of passengers as a result of an
award having been made to an employee pursuant to Section 3716.2 of
the Labor Code, the commission shall furnish the carrier named in the
final judgment written notice of the right to a hearing regarding
the complaint and the procedure to follow to request a hearing. The
notice shall state that the commission must revoke the carrier's
permit to operate pursuant to subdivision (b) after 30 days from the
date the notice is mailed unless the carrier provides proof that the
judgment is satisfied or has been discharged in accordance with the
bankruptcy laws of the United States and the commission has been so
notified seven days prior to the conclusion of the 30-day waiting
period. The notice shall also inform the carrier of a right to a
hearing and the procedures to follow to request a hearing. The
carrier shall have 10 days from the date the notice is sent by the
commission to request a hearing. The request for the hearing shall
stay the revocation. The hearing shall be held within 30 days of the
receipt of the request. If the commission finds that an unsatisfied
judgment exists concerning a debt arising under Section 3717 of the
Labor Code, the commission shall immediately revoke the carrier's
permit.
5379. After the cancellation or revocation of a permit or
certificate, or during the period of its suspension, or after the
expiration of its permit or certificate, it is unlawful for a
charter-party carrier of passengers to conduct any operations as a
carrier. The commission may either grant or deny an application for a
new permit or certificate whenever it appears that a prior permit or
certificate of the applicant has been canceled or revoked pursuant
to Section 5378 or whenever it appears, after hearing, that as a
prior permit or certificate holder, the applicant engaged in any of
the unlawful activities set forth in Section 5378 for which his or
her permit or certificate might have been canceled or revoked.
5379.5. The commission may, on a complaint alleging that any
corporation or person is operating as a charter-party carrier of
passengers without a valid certificate or permit in violation of this
chapter, or on its own motion without a complaint, with or without
notice of a hearing, order the corporation or person so operating to
cease and desist from that operation until the commission makes and
files its decision in the matter or until further order of the
commission.
