34630. (a) A motor carrier permit shall not be granted to any motor
carrier of property until there is filed with the department proof
of financial responsibility in the form of a currently effective
certificate of insurance, issued by a company licensed to write that
insurance in this state or by a nonadmitted insurer subject to
Section 1763 of the Insurance Code, if the policy represented by the
certificate meets the minimum insurance requirements contained in
Section 34631.5. The certificate of insurance or surety bond shall
provide coverage with respect to the operation, maintenance, or use
of any vehicle for which a permit is required, although the vehicle
may not be specifically described in the policy, or a bond of surety
issued by a company licensed to write surety bonds in this state, or
written evidence of self-insurance by providing the self-insured
number granted by the department on a form approved by the
department.
(b) Proof of financial responsibility shall be continued in effect
during the active life of the motor carrier permit. The certificate
of insurance shall not be cancelable on less than 30 days' written
notice from the insurer to the department except in the event of
cessation of operations as a permitted motor carrier of property.
(c) Whenever the department determines or is notified that the
certificate of insurance or surety bond of a motor carrier of
property will lapse or be terminated, the department shall suspend
the carrier's permit effective on the date of lapse or termination
unless the carrier provides evidence of valid insurance coverage
pursuant to subdivision (a). If the carrier's permit is suspended,
the carrier shall pay a reinstatement fee as set forth in Section
34623.5, and prior to conducting on-highway operations, present proof
of financial responsibility pursuant to subdivision (a) in order to
have the permit reinstated.
34631. The proof of financial responsibility required under Section
34630 shall be evidenced by the deposit with the department,
covering each vehicle used or to be used under the motor carrier
permit applied for, of one of the following:
(a) A certificate of insurance, issued by a company licensed to
write insurance in this state, or by a nonadmitted insurer subject to
Section 1763 of the Insurance Code, if the policies represented by
the certificate comply with Section 34630 and the rules promulgated
by the department pursuant to Section 34604.
(b) A bond of a surety company licensed to write surety bonds in
the state.
(c) Evidence of qualification of the carrier as a self-insurer as
provided for in subdivision (a) of Section 34630. However, any
certificate of self-insurance granted to a motor carrier of property
shall be limited to serve as proof of financial responsibility under
paragraphs (1) and (2) of subdivision (a) of Section 34631.5 minimum
limits only and shall not be acceptable as proof of financial
responsibility for the coverage required pursuant to paragraph (3) or
(4) of subdivision (a) of Section 34631.5.
(d) Evidence on a form that indicates that coverage is provided by
a charitable risk pool operating under Section 5005.1 of the
Corporations Code, if the registered owner of the vehicle is a
nonprofit organization that is exempt from taxation under paragraph
(3) of subsection (c) of Section 501 of the United States Internal
Revenue Code. The form shall include all of the following:
(1) The name and address of the motor carrier.
(2) The name and address of the charitable risk pool providing the
policy for the motor carrier.
(3) The policy number, effective date, and liability limits of the
policy.
(4) A statement from the charitable risk pool that the policy
meets the requirements of Section 34631.5.
34631.5. (a) (1) Every motor carrier of property as defined in
Section 34601, except those subject to paragraph (2), (3), or (4),
shall provide and thereafter continue in effect adequate protection
against liability imposed by law upon those carriers for the payment
of damages in the amount of a combined single limit of not less than
seven hundred fifty thousand dollars ($750,000) on account of bodily
injuries to, or death of, one or more persons, or damage to or
destruction of, property other than property being transported by the
carrier for any shipper or consignee whether the property of one or
more than one claimant in any one accident.
(2) Every motor carrier of property, as defined in Section 34601,
who operates only vehicles under 10,000 pounds GVWR and who does not
transport any commodity subject to paragraph (3) or (4), shall
provide and thereafter continue in effect adequate protection against
liability imposed by law for the payment of damages caused by bodily
injuries to or the death of any person; or for damage to or
destruction of property of others, other than property being
transported by the carrier, in an amount not less than three hundred
thousand dollars ($300,000).
(3) Every intrastate motor carrier of property, as defined in
Section 34601, who transports petroleum products in bulk, including
waste petroleum and waste petroleum products, shall provide and
thereafter continue in effect adequate protection against liability
imposed by law upon the carrier for the payment of damages for
personal bodily injuries (including death resulting therefrom) in the
amount of not less than five hundred thousand dollars ($500,000) on
account of bodily injuries to, or death of, one person; and
protection against a total liability of those carriers on account of
bodily injuries to, or death of more than one person as a result of
any one accident, but subject to the same limitation for each person
in the amount of not less than one million dollars ($1,000,000); and
protection in an amount of not less than two hundred thousand dollars
($200,000) for one accident resulting in damage to or destruction to
property other than property being transported by the carrier for
any shipper or consignee, whether the property of one or more than
one claimant; or a combined single limit in the amount of not less
than one million two hundred thousand dollars ($1,200,000) on account
of bodily injuries to, or death of, one or more persons or damage to
or destruction of property, or both, other than property being
transported by the carrier for any shipper or consignee whether the
property of one or more than one claimant in any one accident.
(4) Except as provided in paragraph (3), every motor carrier of
property, as defined in Section 34601, that transports any hazardous
material, as defined by Section 353, shall provide and thereafter
continue in effect adequate protection against liability imposed by
law on those carriers for the payment of damages for personal injury
or death, and damage to or destruction of property, in amounts of not
less than the minimum levels of financial responsibility specified
for carriers of hazardous materials by the United States Department
of Transportation in Part 387 (commencing with Section 387.1) of
Title 49 of the Code of Federal Regulations. The applicable minimum
levels of financial responsibility required are as follows:
Combined
Single
Limit
Commodity Transported: Coverage
(A) Oil listed in Section 172.101 of Title 49 of $1,000,000
the Code of Federal Regulations; or hazardous
waste, hazardous materials and hazardous
substances defined in Section 171.8 of Title
49 of the Code of Federal Regulations and
listed in Section 172.101 of Title 49 of the
Code of Federal Regulations, but not mentioned
in subparagraph (C) or (D).
(B) Hazardous waste as defined in Section 25117 of $1,000,000
the Health and Safety Code and in Article 1
(commencing with Section 66261.1) of Chapter 11
of Division 4.5 of Title 22 of the California
Code of Regulations, but not mentioned in
subparagraph (C) or (D).
(C) Hazardous substances, as defined in Section $5,000,000
171.8 of Title 49 of the Code of Federal
Regulations, or liquefied compressed gas or
compressed gas, transported in cargo tanks,
portable tanks, or hopper-type vehicle with
capacities in excess of 3,500 water gallons.
(D) Any quantity of division 1.1, 1.2, or 1.3 $5,000,000
explosives; any quantity of poison gas (Poison
A); or highway route controlled quantity
radioactive materials as defined in Section
173.403 of Title 49 of the Code of Federal
Regulations.
(b) (1) The protection required under subdivision (a) shall be
evidenced by the deposit with the department, covering each vehicle
used or to be used in conducting the service performed by each motor
carrier of property, an authorized certificate of public liability
and property damage insurance, issued by a company licensed to write
the insurance in the State of California, or by a nonadmitted insurer
subject to Section 1763 of the Insurance Code.
(2) The protection required under subdivision (a) by every motor
carrier of property engaged in interstate or foreign transportation
of property in or through California, shall be evidenced by the
filing and acceptance of a department authorized certificate of
insurance, or qualification as a self-insurer as may be authorized by
law.
(3) A certificate of insurance, evidencing the protection, shall
not be cancelable on less than 30 days' written notice to the
department, the notice to commence to run from the date notice is
actually received at the office of the department in Sacramento.
(4) Every insurance certificate or equivalent protection to the
public shall contain a provision that the certificate or equivalent
protection shall remain in full force and effect until canceled in
the manner provided by paragraph (3).
(5) Upon cancellation of an insurance certificate or the
cancellation of equivalent protection authorized by the Department of
Motor Vehicles, the motor carrier permit of any motor carrier of
property, shall stand suspended immediately upon the effective date
of the cancellations.
(6) No carrier shall engage in any operation on any public highway
of this state during the suspension of its permit.
(7) No motor carrier of property, whose permit has been suspended
under paragraph (5) shall resume operations unless and until the
carrier has filed an insurance certificate or equivalent protection
in effect at the time and that meets the standards set forth in this
section. The operative rights of the complying carriers shall be
reinstated from suspension upon the filing of an insurance
certificate or equivalent protection.
(8) In order to expedite the processing of insurance filings by
the department, each insurance filing made should contain the insured'
s California carrier number, if known, in the upper right corner of
the certificate.
(c) (1) Notwithstanding any other provision of law, the operator
of a for-hire tow truck who is in compliance with subdivision (a) may
perform emergency moves, irrespective of the load carried aboard the
vehicle being moved.
(2) For the purposes of paragraph (1), an "emergency move" is
limited to one or more of the following activities:
(A) Removal of a disabled or damaged vehicle or combination of
vehicles from a highway.
(B) Removal of a vehicle or combination of vehicles from public or
private property following a traffic collision.
(C) Removal of a vehicle or combination of vehicles from public or
private property to protect public health, safety, or property.
(D) Removal of a vehicle or combination of vehicles from any
location for impound or storage, at the direction of a peace officer.
(3) The authority granted under paragraph (1) applies only to the
first one-way carriage of property from the scene of the emergency to
the nearest safe location. Any subsequent move of that property
shall be subject to subdivision (a), including, but not limited to, a
requirement that the for-hire tow truck operator have a level of
liability protection that is adequate for the commodity being
transported by the towed vehicle or combination of vehicles.
(4) Any transportation of property by an operator of an operator
of a for-hire tow truck that is not an emergency move, as authorized
under paragraph (1), shall be subject to subdivision (a), including,
but not limited to, a requirement that the for-hire tow truck
operator have a level of liability protection that is adequate for
the commodity being transported by the towed vehicle or combination
of vehicles.
34632. (a) Every motor carrier of property shall furnish the
department annually, as specified by the department, a list, prepared
under oath, of all vehicles, described in Section 34601, used in
transportation during the preceding year.
(b) If the carrier's insurer informs the department that the
carrier has failed to obtain insurance coverage for any vehicle
reported on the list, the department shall, in addition to any other
applicable penalty provided in this division, suspend the carrier's
permit.
34633. Every motor carrier of property with a carrier fleet of 20
or more commercial motor vehicles as defined in Section 34601 shall,
under oath, file annually a report with the department indicating the
number, classification, and compensation of all employees and
owner-operator drivers hired or engaged during the reporting period.
The department shall submit a copy of the report to the
administrator of the corporation's workers' compensation
self-insurance plan if the corporation 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.
34634. (a) Upon receipt of a stop order issued by the Director of
Industrial Relations pursuant to Section 3710.1 of the Labor Code,
the department shall determine whether the motor carrier of property
has filed a false statement relative to workers' compensation
insurance coverage, in violation of statute, or rules or orders of
the department. If, after notice and opportunity to be heard, the
department determines that there has been a violation of statute, or
rules or orders of the department, the department shall, in addition
to any other applicable penalty provided in this division, suspend
the carrier's permit.
(b) Upon notification from the Director of Industrial Relations
that a final judgment has been entered against any motor carrier of
property as a result of an award having been made to an employee
pursuant to Section 3716.2 of the Labor Code, the department shall,
30 days from the date the carrier is mailed the notice pursuant to
subdivision (c), 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 notification from the Director of
Industrial Relations that a final judgment has been entered against
any motor carrier of property as a result of an award having been
made to an employee pursuant to Section 3716.2 of the Labor Code, the
department shall furnish to the carrier named in the final judgment
written notice of the right to a hearing regarding the revocation of
the permit and the procedure to follow to request a hearing. The
notice shall state that the department is required to revoke the
carrier's permit 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 department has been so
notified seven days prior to the conclusion of the 30-day waiting
period. The carrier may request a hearing within 10 days from the
date the notice is sent by the department. 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 department finds that
an unsatisfied judgment exists concerning a debt arising under
Section 3717 of the Labor Code, the department shall immediately
revoke the carrier's permit.
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