Today's Law As Amended


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AB-1099 Vehicles: motor carriers: inspection of terminals program.(2011-2012)



As Amends the Law Today


SECTION 1.

 Section 7235 of the Revenue and Taxation Code is amended to read:

7235.
 (a)  The Safety Fee and Carrier Inspection Fee imposed by this chapter shall be paid by all motor carriers of property, as defined in Section 34601 of the Vehicle Code.
(b) This section shall become operative on January 1, 2016.

SEC. 2.

 Section 7236 of the Revenue and Taxation Code is amended to read:

7236.
 (a) Uniform business license tax fee payments collected by the Department of Motor Vehicles pursuant to Section 7232 shall be deposited in the State Treasury to the credit of the General Fund. All other funds collected by the Department of Motor Vehicles pursuant to Section 7232 shall be deposited in the State Treasury to the credit of the Motor Vehicle Account in the State Transportation Fund. The following fees shall be paid to the department:
(1) For-hire motor carriers of property shall pay, according to the schedule in subdivision (c), fees indicated as the safety fee, Carrier Inspection Fee, carrier inspection fee,  and uniform business license tax fee, based on the size of their motor vehicle fleet.
(2) (A) Private carriers of property with a fleet size of 10 or less motor vehicles shall pay a safety fee of thirty-five dollars ($35). Private carriers of property with a fleet size of 11 or more motor vehicles shall pay, according to the schedule in subdivision (c), fees indicated as the safety fee, based on the size of their motor vehicle fleet. Any carrier that does not pay a uniform business license tax fee shall not operate as a for-hire motor carrier.
(B) Private carriers of property shall pay, according to the schedule of fees in subdivision (c), fees indicated as the carrier inspection fee based on the size of the motor vehicle fleet.
(b) “Fleet size” as used in this section, does not include vehicles described in subdivision (e) of Section 34500.
(c) (1) A seasonal permit may be issued to a motor carrier of property upon payment of fees indicated as the safety fee and one-twelfth of the fee indicated as the uniform business license tax fee, rounded to the next dollar, for each month the permit is valid. The original seasonal permit shall be valid for a period of not less than six months, and may be renewed upon payment of a five-dollar ($5) fee, and one-twelfth of the fee indicated as a uniform business license tax fee for each additional month of operation.
Fleet—Size Fleet Size—Commercial 
Commercial 
Motor  Vehicles Fee
Safety
 Fee
 
Uniform
Business
License Tax
Carrier  
Inspection  
Fee
1      
 1 
 $60
 
 $60
$130
2-4 2–4       
75
 
 125
152
5–10    5-10   
200
 
 275
252
 11–20   11-20  
240
 
 470
573
 21–35   21-35  
325
 
 650
743
   36-50 36–50  
430
 
 880
961
   51-100 51–100   
535
 
 1,075
 1,112
  101-200 101–200  
635
 
 1,300
 1,463
201–500  201-500  
730
 
 1,510
 1,512
 501-1,000 501–1,000  
830
 
 1,715
 1,600
1,001-2,000 1,001–2,000 
930
 
 1,900
 1,800
2,001–over 2,001-over  
 1,030
 
 2,000
 2,114
(2) Notwithstanding the fee schedule in paragraph (1), except for the carrier inspection fee, motor carriers of property with 10 or fewer trucks shall not pay fees higher than they would have paid under the fee schedule applicable  structure in place  as of January 1, 1996. Notwithstanding Section 34606 of the Vehicle Code, fees for these carriers shall not be subject to an increase by the Department of Motor Vehicles. 
(d) Failure to pay fees  a fee  required by this section, within the appropriate timeframe, shall result in additional delinquent fees as follows:
(1) For a delinquency period of more than 30 days and less than one year,  days,  the penalty is 60 percent of the required fee.
(2) For a delinquency period of one to two years, the penalty is 80 percent of the required fee.
(3) For a delinquency period of more than two years, the penalty is 160 percent of the required fee.
(e) Funds derived from safety fees, including delinquency fees,  fees  shall remain in the Motor Vehicle Account in the State Transportation Fund and shall be available for appropriation by the Legislature to cover costs incurred by the Department of Motor Vehicles and the Department of the California Highway Patrol in regulating and inspecting motor carriers of property pursuant to Division 14.8 (commencing with Section 34500) and Division 14.85 (commencing with Section 34600) of the Vehicle Code.
(f) All Carrier Inspection Fees, including delinquency fees, collected pursuant to this section shall be deposited in the Motor Vehicle Account in the State Transportation Fund. An amount equal to the Carrier Inspection Fees collected shall be made available for appropriation by the Legislature from the Motor Vehicle Account to the department for the purpose of conducting truck terminal inspections and roadside safety inspections required by Section 34514 of the Vehicle Code.
(g) (f)  It is the intent of the Legislature that the fee schedule established in subdivision (c) shall not discriminate against small fleet or individual vehicle operators or result in a disproportionate share of those fees being assigned to small fleet or individual vehicle operators. It is further the intent of the Legislature that the amount made available for appropriation pursuant to subdivision (f) shall fully defray the costs of the department for the purposes of the truck terminal inspections conducted pursuant to Section 34501.12 of the Vehicle Code and roadside safety inspections required by Section 34514 of the Vehicle Code. 
(h) Commencing January 30, 2017, and every five years thereafter, the Department of the California Highway Patrol shall report to the Department of Motor Vehicles the amount that the Department of the California Highway Patrol expended in the previous fiscal year to conduct the inspections and otherwise administer the requirements of Section 34501.12 and 34514 of the Vehicle Code. The Department of Motor Vehicles shall compare this amount to the revenue it collected, net of its collection costs, during the same fiscal year from carrier inspection fees received pursuant to this section. Based on this comparison, the Department of Motor Vehicles shall, effective July 1, 2017, and every five years thereafter, adjust the carrier inspection fee specified in subdivision (c) to ensure that the net revenues from the carrier inspection fee are sufficient to cover the Department of the California Highway Patrol’s reasonable costs for the activities described in this subdivision.
(i) This section shall become operative on January 1, 2016.

SEC. 3.

 Section 34501.12 of the Vehicle Code is amended to read:

34501.12.
 (a) Vehicles and the operation thereof, subject to this section, are those  As used in this section and Section 34505.6, “motor carrier” means the registered owner, or a lessee, licensee, or bailee, of any vehicle  described in subdivision (a), (b), (e), (f), (g), (j), or (k) of Section 34500, except an agricultural vehicle as defined in Section 34500.6. who operates or directs the operation of that vehicle. 
 (b) It is unlawful for a motor carrier to operate any vehicle of a type described in subdivision (a) without identifying to the department all terminals, as defined in Section 34515, in this state where vehicles may be inspected by the department pursuant to paragraph (4) of subdivision (a) of Section 34501 and where vehicle inspection and maintenance records and driver records will be made available for inspection. Motor carriers shall make vehicles and records available for inspection upon request by an authorized representative of the department. If a motor carrier fails to provide vehicles and records, an unsatisfactory terminal rating shall be issued by the department.
(1) The number of vehicles that will be selected for inspection by the department at a terminal shall be based on terminal fleet size and applied separately to a terminal fleet of power units and trailers, according to the following schedule:
Fleet Size
Representative  Vehicles 
Sample 
 1 or 2
All
 3 to 8
  3
 9 to 15
  4
16 to 25
  6
26 to 50
  9
51 to 90
 14
91 or more
 20
(2) The lessor of any vehicle described in subdivision (a) shall make vehicles available for inspection upon request of an authorized representative of the department in the course of inspecting the terminal of the lessee. This section does not affect whether the lessor or driver provided by the lessor is an employee of the authorized carrier lessee, lessee  and compliance with this section and its attendant administrative requirements does not imply an employee-employer relationship.
(c) (1) The department may inspect any terminal, as defined in Section 34515, of a motor carrier who, at any time, operates any vehicle described in subdivision (a).
(2) The  On or before January 1, 2015, the  department shall adopt rules and  regulations establishing a performance-based truck terminal inspection selection priority system. In adopting the system’s rules and regulations, the department shall incorporate methodologies consistent with those  priority system. This may include systems or methodologies  used by the Federal Motor Carrier Safety Administration, including those related to the quantitative analysis of safety-related motor carrier performance data, collected during the course of inspection or enforcement contact by authorized representatives of the department or any authorized federal, state, or local safety official, in categories, including, but not limited to, driver fatigue, driver fitness, vehicle maintenance, and controlled substances and alcohol use. The department shall and the department may  also incorporate other safety-related motor carrier performance  data in this system, including citations and accident information.  system.  The department shall create a database to include all performance-based data specified in this section that shall be updated in a manner to provide real-time information to the department  place an inspection priority  on motor carrier performance. The department shall prioritize for selection those motor carrier  terminals never previously inspected by the department, those identified by the inspection priority selection system,  department  and those terminals operating vehicles listed in subdivision (g) of Section 34500. The department is Nonpriority terminals are  not required to inspect a terminal subject to inspection pursuant to this section more often than once every six years, if a terminal receives a satisfactory compliance rating as the result of a terminal inspection conducted by the department pursuant to this section or Section 34501, or if the department has not received notification by the system of a motor carrier operating while exceeding the threshold of the inspection selection priority system. Any motor carrier that is inspected and receives less than a satisfactory compliance rating, or that falls below the threshold of the selection priority system, shall be subject to periodic inquiries and inspections as outlined in subdivision (f), and these inquiries and inspections shall be based on the severity of the violations. be inspected less than four years since last inspected. 
(3) As used in this section and Section 34505.6, subdivision (f) of Section 34500 includes only those combinations where the gross vehicle weight rating (GVWR)  of the towing vehicle exceeds 10,000 pounds, but does not include a pickup truck or any combination never operated in commercial use, and subdivision (g) of Section 34500 includes only those vehicles transporting hazardous material for which the display of placards is required pursuant to Section 27903, a license is required pursuant to Section 32000.5, or for which hazardous waste transporter registration is required pursuant to Section 25163 of the Health and Safety Code. Notwithstanding Section 5014.1, vehicles that display special identification plates in accordance with Section 5011, historical vehicles, as described in Section 5004, implements of husbandry and farm vehicles, as defined in Chapter 1 (commencing with Section 36000) of Division 16, and vehicles owned or operated by an agency of the federal government are not subject to this section or Section 34505.6.
(d) (1)  It is unlawful for a motor carrier to operate, or cause to be operated, any vehicle that  operate a vehicle from a new terminal, which  is subject to this section, Section 34520, or Division 14.85 (commencing with Section 34600), unless the motor carrier is knowledgeable of, and in compliance with, all applicable statutes and regulations. unless an inspection is performed on the terminal, and a safety compliance report is issued to the motor carrier regarding the terminal, within the first 18 months of operating a vehicle subject to this section from the new terminal. It is the responsibility of the motor carrier to schedule with the department the inspection of any new terminal within 90 days of operating vehicles from that new terminal. 
(e) (2)  It is unlawful for a motor carrier to contract or subcontract with, or otherwise engage the services of, another motor carrier, subject to this section, unless the contracted motor carrier has complied with subdivision (d). paragraph (1).  A motor carrier shall not contract or subcontract with, or otherwise engage the services of, another motor carrier until the contracted motor carrier provides certification of compliance with subdivision (d). paragraph (1).  This certification shall be completed in writing by the contracted motor carrier in a manner prescribed by the department.  carrier.  The certification, or a copy of the certification, shall be maintained by each involved party for the duration of the contract or the period of service plus two years, and shall be presented for inspection immediately upon the request of an authorized employee of the department. The certifications required by this subdivision and subdivision (b) of Section 34620 may be combined. 
(f) (e)  (1) An inspected terminal that receives an unsatisfactory compliance rating shall be reinspected by the department within 120 days after the issuance of the unsatisfactory compliance rating.
(2) If When  a motor carrier’s Motor Carrier of Property Permit or Public Utilities Commission operating authority is suspended as a result of an unsatisfactory compliance rating, the department shall not conduct a reinspection for permit or authority reinstatement until requested to do so by the Department of Motor Vehicles or the Public Utilities Commission, as appropriate.
(g) (f)  A motor carrier issued an unsatisfactory terminal rating may request a review of the rating within five business days of receipt of the notification of the rating. The department shall conduct and evaluate the review within 10 business days of the request.
(h) The department shall publish performance-based inspection completion data and make the data available for public review.
(i) (g)  This section shall be known, known  and may be cited, cited  as the Basic Inspection of Terminals program or BIT program.
(j) This section shall remain in effect only until January 1, 2023, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2023, deletes or extends that date.

SEC. 4.

 Section 34505.5 of the Vehicle Code is repealed.

34505.5.
 (a) Every motor carrier operating any vehicle described in subdivision (a), (b), (e), (f), (g), (j), or (k) of Section 34500, except those vehicles exempted under Section 34501.12, shall, as a part of the systematic inspection, maintenance, and lubrication services required of all motor carriers, require the vehicle or vehicles for which it is responsible pursuant to Section 34501.12 to be inspected at least every 90 days, or more often if necessary to ensure safe operation. Vehicles which are out of service for periods greater than 90 calendar days are not required to be inspected at 90-day intervals if they are inspected before operation on the highway. This inspection shall include, but not be limited to, all of the following:
(1) Brake adjustment.
(2) Brake system components and leaks.
(3) Steering and suspension systems.
(4) Tires and wheels.
(5) Vehicle connecting devices.
(b) No vehicle subject to this section shall be operated on the highway other than to a place of repair until all defects listed during the inspection conducted pursuant to subdivision (a) have been corrected and attested to by the signature of the motor carrier’s authorized representative.
(c) Records of inspections conducted pursuant to subdivision (a) shall be kept at the motor carrier’s terminals, as designated in accordance with Section 34501.12. The records shall be retained by the motor carrier for two years, and shall be made available for inspection upon request by any authorized employee of the department. Each record shall include, but not be limited to, all of the following:
(1) Identification of the vehicle, including make, model, license number, company vehicle number, or other means of positive identification.
(2) Date and nature of each inspection and any repair performed.
(3) Signature of the motor carrier’s authorized representative attesting to the inspection and to the completion of all required repairs.
(d) Printouts of inspection and maintenance records maintained in computer systems shall be accepted in lieu of signed inspection or repair records if the printouts include the information required in paragraphs (1) and (2) of subdivision (c).
(e) Notwithstanding subdivisions (a) to (d), inclusive, records of 90-day inspections need not be retained in California for interstate vehicles which are not physically based in California. However, when these vehicles are present in California, they are subject to inspection by the department. If the inspection results indicate maintenance program deficiencies, the department may require the motor carrier to produce the maintenance records or copies of those records for inspection within 10 working days.
(f) This section shall become operative on January 1, 2016.

SEC. 5.

 Section 34505.6 of the Vehicle Code is amended to read:

34505.6.
 (a) Upon determining that a motor carrier of property who is operating any vehicle described in subdivision (a), (b), (e), (f), (g), (j),  or (k) of Section 34500, or any motortruck of two or more axles that is more than 10,000 pounds gross vehicle weight rating, on a public highway, has done either of the following, the department shall recommend that the Department of Motor Vehicles suspend or revoke the carrier’s motor carrier permit, or, for interstate operators, the department shall recommend to the Federal Motor Carrier Safety Administration that appropriate administrative action be taken against the carrier:
(1) Failed to maintain any vehicle of a type described above in a safe operating condition or to comply with the Vehicle Code or with applicable regulations contained in Title 13 of the California Code of Regulations, and, in the department’s opinion, that failure presents an imminent danger to public safety or constitutes a consistent failure so as to justify a suspension or revocation of the motor carrier’s motor carrier permit.
(2) Failed to enroll all drivers in the pull-notice system as required by Section 1808.1.
(b) Upon determining that a household goods carrier, or a household goods carrier transporting used office, store, or institution furniture and fixtures under its household goods carrier permit issued under Section 5137 of the Public Utilities Code, operating any vehicle described in subdivision (a), (b), (e), (f), (g), (j),  or (k) of Section 34500 on a public highway, has done either of the following, the department shall recommend that the Public Utilities Commission deny, suspend, or revoke the carrier’s operating authority, or, or  for interstate operators, the department shall recommend to the Federal Motor Carrier Safety Administration that appropriate administrative action be taken against the carrier:
(1) Failed to maintain any vehicle used in transportation for compensation in a safe operating condition or to comply with the Vehicle Code or with applicable regulations contained in Title 13 of the California Code of Regulations, and, in the department’s opinion, that failure presents an imminent danger to public safety or constitutes a consistent failure so as to justify a suspension, revocation, or denial of the motor carrier’s operating authority.
(2) Failed to enroll all drivers in the pull-notice system as required by Section 1808.1.
(c) For purposes of this section, two consecutive unsatisfactory compliance ratings for an inspected terminal assigned because the motor carrier failed to comply with the periodic report requirements of Section 1808.1 or the cancellation of the carrier’s enrollment by the Department of Motor Vehicles for the nonpayment of required fees is a consistent failure. The department shall retain a record, by operator, of every recommendation made pursuant to this section.
(d) Before transmitting a recommendation pursuant to subdivision (a), the department shall notify the carrier in writing of all of the following:
(1) That the department has determined that the carrier’s safety record or compliance with Section 1808.1 is unsatisfactory, furnishing a copy of any documentation or summary of any other evidence supporting the determination.
(2) That the determination may result in a suspension, revocation, or denial of the carrier’s motor carrier permit by the Department of Motor Vehicles, suspension, revocation, of the motor carrier’s operating authority by the California Public Utilities Commission, or administrative action by the Federal Motor Carrier Safety Administration.
(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 pursuant to subdivision (a) or (b).
(e) Upon receipt of a written recommendation from the department that a motor carrier permit or operating authority be suspended, revoked, or denied, the Department of Motor Vehicles or Public Utilities Commission, as appropriate, shall, pending a hearing in the matter pursuant to Section 34623 or appropriate Public Utilities Commission authority, suspend the motor carrier permit or operating authority. The written recommendation shall specifically indicate compliance with subdivision (d).
(f) This section shall become operative on January 1, 2016.

SEC. 6.

 Section 34515 of the Vehicle Code is amended to read:

34515.
 (a) As used in this division and in regulations adopted pursuant to this division, “maintenance facility or terminal” means any place or places where a vehicle of a type listed in Section 34500 is regularly garaged or maintained, or from which it is operated or dispatched. “Maintenance facility or terminal” includes  may include  a private business or residence.
(b) For the purpose of the inspections conducted pursuant to Section 34501.12, “terminal” means the location or locations in this state that are designated by a motor carrier, where subject vehicles may be inspected by the department and where vehicle maintenance and inspection records and drivers’ records will be made available for inspection.
(c) This section shall become operative on January 1, 2016.

SEC. 7.

 Section 34601 of the Vehicle Code is amended to read:

34601.
 (a) As used in this division, “motor carrier of property” means any person who operates any commercial motor vehicle as defined in subdivision (c). “Motor carrier of property” does not include a household goods carrier, as defined in Section 5109 of the Public Utilities Code, a household goods carrier transporting used office, store, and institution furniture and fixtures under its household goods carrier permit pursuant to Section 5137 of the Public Utilities Code, persons providing only transportation of passengers, or a passenger stage corporation transporting baggage and express upon a passenger vehicle incidental to the transportation of passengers.
(b) As used in this division, “for-hire motor carrier of property” means a motor carrier of property as defined in subdivision (a) who transports property for compensation.
(c) (1) As used in this division, except as provided in paragraph (2), a “commercial motor vehicle” means any self-propelled vehicle listed in subdivisions (a), (b), (f), (g), and (k) of Section 34500, any motortruck of two or more axles that is more than 10,000 pounds gross vehicle weight rating, and any other motor vehicle used to transport property for compensation.
(2) As used in this division, “commercial motor vehicle” does not include any of the following:
(A) Vehicles identified in subdivision (f) of Section 34500, if the gross vehicle weight rating of the towing vehicle is 10,000 pounds or less.
(B) Vehicles identified in subdivision (g) of Section 34500, if the hazardous material transportation does not require the display of placards under Section 27903, a license under Section 32000.5, or a hazardous waste transporter registration under Section 25163 of the Health and Safety Code, and the vehicle is not operated in commercial use.
(C) Vehicles operated by a household goods carrier, as defined in Section 5109 of the Public Utilities Code, under the household goods carrier permit pursuant to Section 5137 of that code.
(D) Vehicles operated by a household goods carrier to transport used office, store, and institution furniture and fixtures under its household goods carrier permit pursuant to Section 5137 of the Public Utilities Code.
(E) Pickup trucks as defined in Section 471, if the conditions in subparagraphs (A) and (B) are also met.
(F) Two-axle daily rental trucks with a gross vehicle weight rating of less than 26,001 pounds, when operated in noncommercial use.
(G) Vehicles never operated in commercial use, including motortrucks  Motortrucks  or two-axle truck tractors, with a gross vehicle weight rating of less than 26,001 pounds, when  operated singly, or, when used to tow a camp trailer, trailer coach, fifth-wheel travel trailer, trailer designed to transport watercraft, or a  utility trailer, never operated in commercial use. Vehicle combinations described in this subparagraph are not subject to Section 27900, 34501.12, or 34507.5.
(d) For purposes of this chapter, “private carrier” means a motor carrier of property, who transports only his or her own property, including, but not limited to, the delivery of goods sold by that carrier.
(e) This section shall become operative on January 1, 2016.

SEC. 8.

 Section 34606 of the Vehicle Code is repealed.

SEC. 9.

 Section 34622 of the Vehicle Code is amended to read:

34622.
 This chapter does not apply to any of the following:
(a) Vehicles described in Section 5004 or 5011, and those that are exempt from vehicle registration fees.
(b) A household goods carrier transporting used office, store, and institution furniture and fixtures under its household goods carrier permit pursuant to Section 5137 of the Public Utilities Code.

SEC. 10.

 Section 34623 of the Vehicle Code is amended to read:

34623.
 (a) The Department of the California Highway Patrol has exclusive jurisdiction for the regulation of safety of operation of motor carriers of property.
(b) The motor carrier permit of a motor carrier of property may be suspended for failure to do either of the following:
(1) Maintain any vehicle of the carrier in a safe operating condition or to comply with this code or with applicable regulations contained in Title 13 of the California Code of Regulations, if that failure is either a consistent failure or presents an imminent danger to public safety.
(2) Enroll all drivers in the pull-notice system as required by Section 1808.1.
(c) The motor carrier permit of a motor carrier of property shall be suspended for failure to either (1) comply with the requirements of federal law described in subdivision (a) of Section 34520 of the Vehicle Code, or (2) make copies of results and other records available as required by subdivision (b) of that section. The suspension shall be as follows:
(1) For a serious violation, which is a willful failure to perform substance abuse testing in accordance with state or federal law:
(A) For a first offense, a mandatory five-day suspension.
(B) For a second offense within three years of a first offense, a mandatory three-month suspension.
(C) For a third offense within three years of a first offense, a mandatory one-year  one year  suspension.
(2) For a nonserious violation, the time recommended to the department by the Department of the California Highway Patrol.
(3) For the purposes of this subdivision, “willful failure” means any of the following:
(A) An intentional and uncorrected failure to have a controlled substances and alcohol testing program in place.
(B) An intentional and uncorrected failure to enroll an employed driver into the controlled substances and alcohol testing program.
(C) A knowing use of a medically disqualified driver, including the failure to remove the driver from safety-sensitive duties upon notification of the medical disqualification.
(D) An attempt to conceal legal deficiencies in the motor carrier’s controlled substances and alcohol testing program.
(d) The department, pending a hearing in the matter pursuant to subdivision (f), may suspend a carrier’s permit.
(e) (1) A motor carrier whose motor carrier permit is suspended pursuant to subdivision (b) may obtain a reinspection of its terminal and vehicles by the Department of the California Highway Patrol by submitting a written request for reinstatement to the department and paying a reinstatement fee as required by Section 34623.5.
(2) The department shall deposit all reinstatement fees collected from motor carriers of property pursuant to this section in the fund. Upon receipt of the fee, the department shall forward a request to the Department of the California Highway Patrol, which shall perform a reinspection within a reasonable time, or shall verify receipt of the application or fee or both the application and fee. Following the term of a suspension imposed under Section 34670, the department shall reinstate a carrier’s motor carrier permit suspended under subdivision (b) upon notification by the Department of the California Highway Patrol that the carrier’s safety compliance has improved to the satisfaction of the Department of the California Highway Patrol, unless the permit is suspended for another reason or has been revoked.
(f) Whenever the department suspends the permit of any carrier pursuant to subdivision (b), (c), or paragraph (3) of subdivision (i), the department shall furnish the carrier with written notice of the suspension and shall provide for a hearing within a reasonable time, not to exceed 21 days, after a written request is filed with the department. At the hearing, the carrier shall show cause why the suspension should not be continued. Following the hearing, the department may terminate the suspension, continue the suspension in effect, or revoke the permit. The department may revoke the permit of any carrier suspended pursuant to subdivision (b) at any time that is 90 days or more after its suspension if the carrier has not filed a written request for a hearing with the department or has failed to submit a request for reinstatement pursuant to subdivision (e).
(g) Notwithstanding any other provision of this code, a hearing shall not be provided if the suspension of the motor carrier permit is based solely upon the failure of the motor carrier to maintain satisfactory proof of financial responsibility as required by this code.
(h) A motor carrier of property may not operate a commercial motor vehicle on any public highway in this state during any period its motor carrier of property permit is suspended pursuant to this division.
(i) (1) A motor carrier of property whose motor carrier permit is suspended pursuant to this section or Section 34505.6, which suspension is based wholly or in part on the failure of the motor carrier to maintain any vehicle in safe operating condition, may not lease, or otherwise allow, another motor carrier to operate the vehicles of the carrier subject to the suspension, during the period of the suspension.
(2) A motor carrier of property may not knowingly lease, operate, dispatch, or otherwise utilize any vehicle from a motor carrier of property whose motor carrier permit is suspended, which suspension is based wholly or in part on the failure of the motor carrier to maintain any vehicle in safe operating condition.
(3) The department may immediately suspend the motor carrier permit of any motor carrier that the department determines to be in violation of paragraph (2).
(j) This section shall become operative on January 1, 2016.

SEC. 11.

 Section 40000.22 of the Vehicle Code is amended to read:

40000.22.
 (a) A violation of subdivision (e) of Section 34501, subdivision (b) or (d) of Section 34501.12, or subdivision (c) of Section 34501.14, relating to applications for inspections, is a misdemeanor and not an infraction.
(b) A violation of Division 14.85 (commencing with Section 34600), relating to motor carriers of property, is a misdemeanor and not an infraction.
(c) This section shall become operative on January 1, 2016.