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SB-358 Transportation.(2019-2020)

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Date Published: 07/02/2019 09:00 PM
SB358:v97#DOCUMENT

Amended  IN  Assembly  July 02, 2019
Amended  IN  Senate  April 08, 2019

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Senate Bill
No. 358


Introduced by Committee on Transportation (Senators Beall (Chair), Dodd, Galgiani, Grove, McGuire, Morrell, Roth, Rubio, Skinner, Stone, Umberg, and Wieckowski)

February 20, 2019


An act to amend Section 2810.3 of the Labor Code, to amend Sections 2113, 2036, 2113, 36627, and 36633 of the Streets and Highways Code, and to amend Section Sections 27150.2, 27151, and 34500 of, and to repeal Section Sections 16020.1 and 16020.2 of, the Vehicle Code, relating to transportation.


LEGISLATIVE COUNSEL'S DIGEST


SB 358, as amended, Committee on Transportation. Transportation.
(1) Existing law creates the Road Maintenance and Rehabilitation Program and, after certain allocations for the program are made, requires the remaining funds available for the program to be allocated 50% for maintenance of the state highway system or for purposes of the state highway operation and protection program and 50% for apportionment to cities and counties by the Controller pursuant to a specified formula. Before receiving an apportionment of funds under the program from the Controller in a fiscal year, existing law requires a city or county to submit to the California Transportation Commission a list of projects proposed to be funded with these funds. In order to receive an allocation or apportionment of these funds, existing law requires the city or county to annually expend a certain minimum amount from its general fund for street, road, and highway purposes. Existing law authorizes the Controller to perform audits to ensure compliance with this expenditure requirement and requires a city or county that has not complied with this expenditure requirement to reimburse the state the funds it received during the fiscal year it was not in compliance.
This bill would require, for an eligible city or county that has not met its minimum expenditure requirement, as described above, the Controller to withhold from its apportionment for a fiscal year following an audit an amount up to the amount of funds that the city or county received during the fiscal year that was audited. The bill would require that the amount withheld be reallocated or reapportioned to other cities or counties who meet the minimum expenditure requirement in one annual payment, as specified, and would also require, if the amount to be apportioned is less than the amount to be withheld, that the city or county reimburse the state for the difference between the amount withheld and the apportionment that was received in the fiscal year that was audited. The bill would require, if the city or county is ineligible for an apportionment, the city or county to reimburse the state in an amount equal to the allocation or apportionment it received in the fiscal year that it was audited. The bill would authorize the Controller to adopt rules, regulations, and procedures necessary to carry out the purposes of these provisions.

(1)

(2) Article XIX of the California Constitution restricts the use of excise tax revenues imposed by the state on fuels used in motor vehicles on public highways to highway and certain mass transit purposes and provides for the deposit of these fuel excise tax revenues in the Highway Users Tax Account for apportionments to cities, among other things. Existing law prohibits apportionments from the account to a city pursuant to specified provisions from being made unless the city has set up by ordinance a special gas tax street improvement fund, and requires the apportionment of those moneys to be deposited into that fund.
This bill would delete the reference to those specified provisions providing for apportionments from the account, thereby prohibiting any and all apportionments from the account to a city from being made unless the city has set up by ordinance a special gas tax street fund, and thereby requiring the apportionment of those moneys to be deposited into that fund.

(2)

(3) Existing law provides that, on and after January 1, 2020, provisions requiring an applicant for registration renewal to submit a form issued by the insurer as evidence that the applicant is in compliance with the financial responsibility laws of the state do not apply to vehicle owners with a residence address in the County of Los Angeles or in the City and County of San Francisco at the time of registration renewal. Existing law also provides that, on and after January 1, 2020, provisions requiring a person who drives a motor vehicle to provide evidence of financial responsibility for the vehicle upon demand of a peace officer or traffic collision investigator do not apply to a person who drives a motor vehicle upon a highway in the County of Los Angeles. Angeles or in the City and County of San Francisco.
This bill would repeal those provisions.
(4) Existing law requires every motor vehicle subject to registration to be equipped with an adequate muffler in constant operation and properly maintained to prevent any excessive or unusual noise and prohibits a muffler or exhaust system from being equipped with a cutout, bypass, or similar device. Existing law further prohibits the modification of an exhaust system of a motor vehicle in a manner that will amplify or increase the noise emitted by the motor of the vehicle so that the vehicle exceeds existing noise limits when tested in accordance with specified standards.
This bill would update the noise level testing standards described above to reflect a more recent standard.

(3)

(5) Existing law requires the Department of Motor Vehicles (DMV) to regulate the safe operation of certain vehicles, including, but not limited to, motortrucks of 3 or more axles that are more than 10,000 pounds gross vehicle weight rating, truck tractors, and any motortruck regulated by the Department of Motor Vehicles, DMV, the Public Utilities Commission, or the United States Secretary of Transportation.
This bill would additionally require the department DMV to regulate the safe operation of motortrucks regulated by the Bureau of Household Goods and Services. Department of Consumer Affairs, and would remove motortrucks regulated by the Public Utilities Commission from that regulation by the DMV.

(4)

(6) The bill would make other technical, nonsubstantive changes.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 2810.3 of the Labor Code is amended to read:

2810.3.
 (a) As used in this section:
(1) (A) “Client employer” means a business entity, regardless of its form, that obtains or is provided workers to perform labor within its usual course of business from a labor contractor.
(B) “Client employer” does not include any of the following:
(i) A business entity with a workforce of fewer than 25 workers, including those hired directly by the client employer and those obtained from, or provided by, any labor contractor.
(ii) A business entity with five or fewer workers supplied by a labor contractor or labor contractors to the client employer at any given time.
(iii) The state or any political subdivision of the state, including any city, county, city and county, or special district.
(2) “Labor” has the same meaning provided by Section 200.
(3) “Labor contractor” means an individual or entity that supplies, either with or without a contract, a client employer with workers to perform labor within the client employer’s usual course of business. “Labor contractor” does not include any of the following:
(A) A bona fide nonprofit, community-based organization that provides services to workers.
(B) A bona fide labor organization or apprenticeship program or hiring hall operated pursuant to a collective bargaining agreement.
(C) A motion picture payroll services company, as defined in subparagraph (A) of paragraph (4) of subdivision (f) of Section 679 of the Unemployment Insurance Code.
(D) A third party who is a party to an employee leasing arrangement, as defined by Rule 4 of Section V of the California Workers’ Compensation Experience Rating Plan-1995 (Section 2353.1 of Title 10 of the California Code of Regulations), as it read on January 1, 2014, except those arrangements described in subrule d of Rule 4 of Section V, if the employee leasing arrangement contractually obligates the client employer to assume all civil legal responsibility and civil liability under this act.
(4) “Wages” has the same meaning provided by Section 200 and all sums payable to an employee or the state based upon any failure to pay wages, as provided by law.
(5) “Worker” does not include an employee who is exempt from the payment of an overtime rate of compensation for executive, administrative, and professional employees pursuant to wage orders by the Industrial Welfare Commission described in Section 515.
(6) “Usual course of business” means the regular and customary work of a business, performed within or upon the premises or worksite of the client employer.
(b) A client employer shall share with a labor contractor all civil legal responsibility and civil liability for all workers supplied by that labor contractor for both of the following:
(1) The payment of wages.
(2) Failure to secure valid workers’ compensation coverage as required by Section 3700.
(c) A client employer shall not shift to the labor contractor any legal duties or liabilities under Division 5 (commencing with Section 6300) with respect to workers supplied by the labor contractor.
(d) At least 30 days prior to filing a civil action against a client employer for violations covered by this section, a worker or the worker’s representative shall notify the client employer of violations under subdivision (b).
(e) Neither the client employer nor the labor contractor may take any adverse action against any worker for providing notification of violations or filing a claim or civil action.
(f) The provisions of subdivisions (b) and (c) are in addition to, and shall be supplemental of, any other theories of liability or requirement established by statute or common law.
(g) This section does not prohibit a client employer from establishing, exercising, or enforcing by contract any otherwise lawful remedies against a labor contractor for liability created by acts of a labor contractor.
(h) This section does not prohibit a labor contractor from establishing, exercising, or enforcing by contract any otherwise lawful remedies against a client employer for liability created by acts of a client employer.
(i) Upon request by a state enforcement agency or department, a client employer or a labor contractor shall provide to the agency or department any information within its possession, custody, or control required to verify compliance with applicable state laws. Upon request, these records shall be made available promptly for inspection, and the state agency or department shall be permitted to copy them. This subdivision does not require the disclosure of information that is not otherwise required to be disclosed by employers upon request by a state enforcement agency or department.
(j) The Labor Commissioner may adopt regulations and rules of practice and procedure necessary to administer and enforce the provisions of subdivisions (b) and (i) that are under the Labor Commissioner’s jurisdiction.
(k) The Division of Occupational Safety and Health may adopt regulations and rules of practice and procedure necessary to administer and enforce the provisions of subdivisions (c) and (i) that are under its jurisdiction.
(l) The Employment Development Department may adopt regulations and rules of practice and procedure necessary to administer and enforce the provisions of subdivisions (b) and (i) that are under its jurisdiction.
(m) A waiver of this section is contrary to public policy, and is void and unenforceable.
(n) This section does not impose individual liability on a homeowner for labor or services received at the home or the owner of a home-based business for labor or services received at the home.
(o) This section does not impose liability on a client employer for the use of an independent contractor other than a labor contractor or to change the definition of independent contractor.
(p) This section does not impose liability on the following:
(1) A client employer that is not a motor carrier of property based solely on the employer’s use of a third-party motor carrier of property with interstate or intrastate operating authority to ship or receive freight.
(2) A client employer that is a motor carrier of property subcontracting with, or otherwise engaging, another motor carrier of property to provide transportation services using its own employees and commercial motor vehicles, as defined in Section 34601 of the Vehicle Code.
(3) A client employer that is not a household mover based solely on the employer’s use of a third-party household mover permitted by the Bureau of Household Goods and Services pursuant to Chapter 3.1 (commencing with Section 19225) of Division 8 of the Business and Professions Code to move household goods.
(4) A client employer that is a household mover permitted by the Bureau of Household Goods and Services pursuant to Chapter 3.1 (commencing with Section 19225) of Division 8 of the Business and Professions Code subcontracting with, or otherwise engaging, another permitted household mover to provide transportation of household goods using its own employees and motor vehicles, as defined in former Section 5108 of the Public Utilities Code.
(5) A client employer that is a cable operator, as defined by Section 5830 of the Public Utilities Code, a direct-to-home satellite service provider, or a telephone corporation, as defined by Section 234 of the Public Utilities Code, based upon its contracting with a company to build, install, maintain, or perform repair work utilizing the employees and vehicles of the contractor if the name of the contractor is visible on employee uniforms and vehicles.
(6) A motor club holding a certificate of authority issued pursuant to Chapter 2 (commencing with Section 12160) of Part 5 of Division 2 of the Insurance Code when it contracts with third parties to provide motor club services utilizing the employees and vehicles of the third-party contractor if the name of the contractor is visible on the contractor’s vehicles.

SEC. 2.

 Section 2036 of the Streets and Highways Code is amended to read:

2036.
 (a) Cities and counties shall maintain their existing commitment of local funds for street, road, and highway purposes in order to remain eligible for an allocation or apportionment of funds pursuant to Section 2032.
(b) In order to receive an allocation or apportionment pursuant to Section 2032, the city or county shall annually expend from its general fund for street, road, and highway purposes an amount not less than the annual average of its expenditures from its general fund during the 2009–10, 2010–11, and 2011–12 fiscal years, as reported to the Controller pursuant to Section 2151. For purposes of this subdivision, in calculating a city’s or county’s annual general fund expenditures and its average general fund expenditures for the 2009–10, 2010–11, and 2011–12 fiscal years, any unrestricted funds that the city or county may expend at its discretion, including vehicle in-lieu tax revenues and revenues from fines and forfeitures, expended for street, road, and highway purposes shall be considered expenditures from the general fund. One-time allocations that have been expended for street and highway purposes, but which may not be available on an ongoing basis, including revenue provided under the Teeter Plan Bond Law of 1994 (Chapter 6.6 (commencing with Section 54773) of Part 1 of Division 2 of Title 5 of the Government Code), may not be considered when calculating a city’s or county’s annual general fund expenditures.
(c) For any city incorporated after July 1, 2009, the Controller shall calculate an annual average expenditure for the period between July 1, 2009, and December 31, 2015, inclusive, that the city was incorporated.
(d) For purposes of subdivision (b), the Controller may request fiscal data from cities and counties in addition to data provided pursuant to Section 2151, for the 2009–10, 2010–11, and 2011–12 fiscal years. Each city and county shall furnish the data to the Controller not later than 120 days after receiving the request. The Controller may withhold payment to cities and counties that do not comply with the request for information or that provide incomplete data.
(e) The Controller may perform audits to ensure compliance with subdivision (b) when deemed necessary. Any
(1) For any city or county that has not complied with subdivision (b) shall reimburse the state for the funds it received during that fiscal year. Any funds returned as a result of a failure to comply with subdivision (b) shall be reapportioned to the other counties and cities whose expenditures are in compliance. (b), the Controller shall withhold from its apportionment pursuant to Section 2032 for a fiscal year following an audit an amount up to the amount of funds that the city or county received during the fiscal year that was audited. The amount withheld shall be reapportioned in one annual payment pursuant to paragraph (3).
(2) If the amount to be apportioned pursuant to Section 2032 is less than the amount to be withheld pursuant to paragraph (1), the city or county shall reimburse the state for the difference between the amount withheld and the apportionment that was received during the fiscal year that was audited. If the city or county is ineligible for an apportionment pursuant to Section 2032, the city or county shall reimburse the state in an amount equal to the allocation or apportionment it received in the fiscal year that was audited.
(3) Any funds withheld or returned as a result of a failure to comply with subdivision (b) shall be reallocated or reapportioned to the other counties or cities whose expenditures are in compliance during the fiscal year that the funds are withheld or returned. The reallocation or reapportionment shall be pursuant to the formula in clauses (i) and (ii) of subparagraph (C) of paragraph (3) of subdivision (a) of Section 2103.
(4) The Controller may adopt any rules, regulations, and procedures necessary to carry out the purposes of this section.
(f) If a city or county fails to comply with the requirements of subdivision (b) in a particular fiscal year, the city or county may expend during that fiscal year and the following fiscal year a total amount that is not less than the total amount required to be expended for those fiscal years for purposes of complying with subdivision (b).

SEC. 2.SEC. 3.

 Section 2113 of the Streets and Highways Code is amended to read:

2113.
 (a) An apportionment of money from the Highway Users Tax Account shall not be made to a city unless the city has set up, by ordinance, a special gas tax street fund.
(b) All amounts paid to each city out of the Highway Users Tax Account shall be deposited in its special gas tax street fund.
(c) In making any expenditure, a city shall follow the law governing it in regard to the doing of the particular type of work in cases that are not exclusively municipal affairs.
(d) A state officer or employee shall not be liable for anything done, or omitted to be done, by a city in the performance of any work.
(e) Interest received by a city from the investment of money in its special gas tax street fund shall be deposited in the fund and shall be used for street purposes.

SEC. 3.SEC. 4.

 Section 36627 of the Streets and Highways Code is amended to read:

36627.
 Following adoption of the resolution establishing district assessments on properties pursuant to Section 36625, the clerk shall record a notice and an assessment diagram pursuant to Section 3114. No other provision of Division 4.5 (commencing with Section 3100) applies to an assessment district created pursuant to this part.

SEC. 4.SEC. 5.

 Section 36633 of the Streets and Highways Code is amended to read:

36633.
 The validity of an assessment levied under this part shall not be contested in an action or proceeding unless the action or proceeding is commenced within 30 days after the resolution levying the assessment is adopted pursuant to Section 36626. An appeal from a final judgment in an action or proceeding shall be perfected within 30 days after the entry of judgment.

SEC. 5.SEC. 6.

 Section 16020.1 of the Vehicle Code is repealed.

SEC. 7.

 Section 16020.2 of the Vehicle Code is repealed.
16020.2.

(a)On and after January 1, 2020, Section 4000.37 does not apply to vehicle owners with a residence address in the City and County of San Francisco at the time of registration renewal.

(b)On and after January 1, 2020, subdivisions (a) and (b) of Section 16028 do not apply to a person who drives a motor vehicle upon a highway in the City and County of San Francisco.

SEC. 8.

 Section 27150.2 of the Vehicle Code is amended to read:

27150.2.
 (a) Stations providing referee functions pursuant to Section 44036 of the Health and Safety Code shall provide for the testing of vehicular exhaust systems and the issuance of certificates of compliance only for those vehicles that have received a citation for a violation of Section 27150 or 27151.
(b) A certificate of compliance for a vehicular exhaust system shall be issued pursuant to subdivision (a) if the vehicle complies with Sections 27150 and 27151. Exhaust systems installed on motor vehicles, other than motorcycles, with a manufacturer’s gross vehicle weight rating of less than 6,000 pounds comply with Sections 27150 and 27151 if they emit no more than 95 dbA when tested in accordance with Society of Automotive Engineers Standard J1169 May 1998. J1492 October 2008.
(c) An exhaust system certificate of compliance issued pursuant to subdivision (a) shall identify, to the extent possible, the make, model, year, license number, and vehicle identification number of the vehicle tested, and the make and model of the exhaust system installed on the vehicle.
(d) The station shall charge a fee for the exhaust system certificate of compliance issued pursuant to subdivision (a). The fee charged shall be calculated to recover the costs incurred by the Department of Consumer Affairs to implement this section. The fees charged by the station shall be deposited in the Vehicle Inspection and Repair Fund established by Section 44062 of the Health and Safety Code.
(e) Vehicular exhaust systems are exempt from the requirements of Sections 27150 and 27151 if compliance with those sections, or the regulations adopted pursuant thereto, would cause an unreasonable hardship without resulting in a sufficient corresponding benefit with respect to noise level control.

SEC. 9.

 Section 27151 of the Vehicle Code is amended to read:

27151.
 (a) No A person shall not modify the exhaust system of a motor vehicle in a manner which will amplify or increase the noise emitted by the motor of the vehicle so that the vehicle is not in compliance with the provisions of Section 27150 or exceeds the noise limits established for the type of vehicle in Article 2.5 (commencing with Section 27200). No A person shall not operate a motor vehicle with an exhaust system so modified.
(b) For the purposes of exhaust systems installed on motor vehicles with a manufacturer’s gross vehicle weight rating of less than 6,000 pounds, other than motorcycles, a sound level of 95 dbA or less, when tested in accordance with Society of Automotive Engineers Standard J1169 May 1998, J1492 October 2008, complies with this section. Motor vehicle exhaust systems or parts thereof include, but are not limited to, nonoriginal exhaust equipment.

SEC. 6.SEC. 10.

 Section 34500 of the Vehicle Code is amended to read:

34500.
 The department shall regulate the safe operation of the following vehicles:
(a) Motortrucks of three or more axles that are more than 10,000 pounds gross vehicle weight rating.
(b) Truck tractors.
(c) Buses, schoolbuses, school pupil activity buses, youth buses, farm labor vehicles, modified limousines, and general public paratransit vehicles.
(d) Trailers and semitrailers designed or used for the transportation of more than 10 persons, and the towing motor vehicle.
(e) Trailers and semitrailers, pole or pipe dollies, auxiliary dollies, and logging dollies used in combination with vehicles listed in subdivision (a), (b), (c), (d), or (j). This subdivision does not include camp trailers, trailer coaches, and utility trailers.
(f) A combination of a motortruck and a vehicle or vehicles set forth in subdivision (e) that exceeds 40 feet in length when coupled together.
(g) A vehicle, or a combination of vehicles, transporting hazardous materials.
(h) Manufactured homes that, when moved upon the highway, are required to be moved pursuant to a permit, as specified in Section 35780 or 35790.
(i) A park trailer, as described in Section 18009.3 of the Health and Safety Code, that, when moved upon a highway, is required to be moved pursuant to a permit pursuant to Section 35780.
(j) Any other motortruck not specified in subdivisions (a) to (h), inclusive, or subdivision (k), that is regulated by the Department of Motor Vehicles, the Public Utilities Commission, the Bureau of Household Goods and Services, Department of Consumer Affairs, or the United States Secretary of Transportation.
(k) A commercial motor vehicle with a gross vehicle weight rating of 26,001 or more pounds or a commercial motor vehicle of any gross vehicle weight rating towing a vehicle described in subdivision (e) with a gross vehicle weight rating of more than 10,000 pounds, except combinations including camp trailers, trailer coaches, or utility trailers. For purposes of this subdivision, the term “commercial motor vehicle” has the same meaning as defined in subdivision (b) of Section 15210.