Assembly Bill 1683, by Assemblyman Mickey Conroy, was signed by Governor Wilson on September 30. This bill was an urgency measure, meaning it became law immediately upon the Governor’s signature, unlike non-urgency bills which become effective January 1, 1997. This new law is intended to streamline the regulatory process and provide a more effective means of enforcing insurance and safety requirements for carriers of property. UHCA was in support of this legislation in its final version, although at one point in the process we were compelled to oppose AB 1683. Sponsored by the California Trucking Association, AB 1683 (as originally proposed) would have vested the DMV with unlimited authority to “adjust” (lower or raise) the fees designated in the new fee structure until the year 2000. For obvious reasons, UHCA and a number of other interested groups voiced serious concerns over giving the DMV such a large degree of unchecked leverage over our industry. An agreement was reached, after extensive deliberation, between representatives from the following groups: DMV, CHP, CPUC, Assemblyman Mickey Conroy’s office (author of the bill), United Highway Carriers Association, CA Trucking Association, CA Grocers Association, Louisiana Pacific Corporation, CA Forestry Association, CA Independent Oil Marketers Association, Agriculture Council of CA, CA Citrus Mutual, CA Fertilizer Assn., Western Crop Protection Assn., and CA Cotton Growers & Cotton Ginners. Rather than use the word “adjust” in reference to the DMV’s authority over the fee schedule, the participating groups unanimously decided to use the phrase “lower the fees.” This simple change in the language of the bill not only eliminated the DMV’s ability to raise trucking fees, but satisfied all of the concerned parties. UHCA became alarmed after the trucking deregulation bill appeared in print without the cap on DMV spending, despite the agreement an a letter to UHCA from Assembly Member Conroy he stated that UHCA’s amendments would jeopardize AB 1683 and could lead to a veto by the Governor. He also wrote, “The representative of the California Trucking Association tried to defend the proposed amendments, even though they did not really think the amendments were necessary.” Thanks to the vigilance of UHCA, a provision of the trucking deregulation bill now clarifies: “The fee schedule set forth....shall be reviewed by the Department of Motor Vehicles and may be lowered should revenue exceed the costs of the Department of Motor Vehicles and the California Highway Patrol to administer and enforce the provisions of this division.” Immediately after this amendment was adopted in the Senate, UHCA removed its opposition to AB 1683 and registered our association’s support of the bill. If DMV discovers this new fee structure will not cover their regulatory costs, they must come back to the Legislature and justify why they would need to raise the fees. However, DMV may lower the fees should revenue exceed the costs of the program. AB 1683 only affects programs related to motor carriers of property. PUC will retain jurisdiction over carriers of passengers and household goods carriers. The DMV is authorized to contract with the PUC for PUC’s continuing administration of services until December 31, 1997. ______________________________________________________________ Facts You Need to Know Regarding AB 1683: · In the Spring of 1997, you will be receiving a notice from DMV asking you to designate your status as a private or for-hire carrier, and to disclose how many trucks you own. After receiving your response, DMV will re-register your company. You will no longer register with the PUC. Until that time, new applications should be submitted to the PUC. · Registration and insurance requirements will be administered by the DMV. · CHP will continue their responsibility for safety and enforcement. · Private carriers, as well as for-hire carriers, will be required to provide evidence of worker’s compensation insurance. · Fines have been increased from $1000 to $2500. · Fees are based on the number of trucks owned, rather than the gross revenues of the trucking company. · By paying the Uniform Business License Tax (UBLT), commercial carriers become exempt from the myriad of local business taxes. · DMV and CHP have given us every indication that your fees will most likely decrease within a few years, as California’s 14,000 to 30,000 unregistered carriers will be identified and integrated into their system. · DMV will be given the power to suspend a carrier’s operating authority if the carrier fails to meet existing safety and insurance criteria; however, the policy for suspension of operating authority is more strict than in the past. · Commercial vehicle inspection facilities along the Mexican border, including Calexico and Otay Mesa, will be staffed by a CHP inspector whenever those facilities are open to the public. · Private carriers with 10 or less vehicles will pay $35 a year to the DMV. Private carriers who have 11 or more vehicles will pay safety fees and cargo theft interdiction fees (CTIF) based on the size of their motor vehicle fleet (Check the fee schedule). · Any carrier that does not pay a UBLT fee shall not operate as a for-hire carrier. · Seasonal permits will be issued to carriers who pay the safety fees and CTIF fees, and 1/12 of the fee indicated as UBLT fee, rounded to the next dollar for each month the permit is valid. Original seasonal permits will be valid for a minimum of 6 months and can be renewed for a $5 fee plus 1/12 of the fee indicated in the UBLT fee for each additional month of operation. _______________________________________________________________ EXPLANATION OF FEES SAFETY FEE- This fee will cover the administrative and enforcement costs incurred by the CHP and DMV. CTIF- This fee will be used to cover costs by the CHP to deter commercial motor vehicle cargo thefts throughout the state. UBLT- This fee is in lieu of paying the local business license taxes. The UBLT revenue will be transferred to the State General Fund.

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