34620.  (a) Except as provided in subdivision (b) and Section 34622,
no motor carrier of property shall operate a commercial motor
vehicle on any public highway in this state unless it has complied
with Section 34507.5 and has registered with the department its
carrier identification number authorized or assigned thereunder.  The
department shall issue a motor carrier permit upon the carrier's
written request, compliance with Sections 34507.5, 34630, and 34640,
and the payment of the fee required by this chapter.
   (b) No person shall contract with, or otherwise engage the
services of, a motor carrier of property unless that motor carrier
holds a valid motor carrier of property permit issued by the
department.  No motor carrier of property shall contract or
subcontract with, or otherwise engage the services of, another motor
carrier of property until the contracted motor carrier of property
provides certification in the manner prescribed by this section, of
compliance with subdivision (a).  This certification shall be
completed by the contracted motor carrier of property and shall
include a provision requiring the contracted motor carrier of
property to immediately notify the person to whom they are contracted
if the contracted motor carrier of property's permit is suspended or
revoked.  A copy of the contracted motor carrier of property's
permit shall accompany the required certificate.  The Department of
the California Highway Patrol shall, by regulation, prescribe the
format for the certificate and may make available an optional
specific form for that purpose.  The certificate, or a copy thereof,
shall be maintained by each involved party for the duration of the
contract or period of service plus two years, and shall be presented
for inspection at the location designated by each carrier under
Section 34501.10, immediately upon the request of an authorized
employee of the Department of the California Highway Patrol.
   (c) Motor carriers of property who were in compliance with the
insurance requirements of this state on the day prior to the
effective date of this section and continue to be in compliance with
those requirements may continue to operate until directed by the
department to obtain a motor carrier permit as required by
subdivision (a).  The department shall require all of those carriers
to obtain permits pursuant to subdivision (a) on or before December
31, 1998.



34621.  (a) The fee required by Section 7232 of the Revenue and
Taxation Code shall be paid to the department upon initial
application for a motor carrier permit and for annual renewal.
   (b) Every application for an original or a renewal motor carrier
permit shall contain all of the following information:
   (1) The full name of the motor carrier; any fictitious name under
which it is doing business; address, both physical and mailing; and
business telephone number.
   (2) Status as individual, partnership, owner-operator, or
corporation, and officers of corporation and all partners.
   (3) Name, address, and driver's license number of  owner-operator.

   (4) California carrier number, number of commercial motor vehicles
in fleet, interstate or intrastate operations, State Board of
Equalization, federal Department of Transportation or Interstate
Commerce Commission number, as applicable.
   (5) Transporter or not a transporter of hazardous materials or
petroleum.
   (6) Evidence of financial responsibility.
   (7) Evidence of Workman's Compensation coverage, if applicable.
   (8) Any other information necessary to enable the department to
determine whether the applicant is entitled to a permit.



34622.  This chapter does not apply to any of the following:
   (a) Vehicles 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.




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 any 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.
   (3) Submit any application or pay any fee required by subdivision
(e) or (h) of Section 34501.12 within the timeframes set forth in
that section.
   (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 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) A motor carrier whose motor carrier permit is suspended for
failure to submit any application or to pay any fee required by
Section 34501.12 shall present proof of having submitted that
application or have paid that fee to the Department of the California
Highway Patrol before applying for reinstatement of its motor
carrier permit.
   (3) 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,
or that the required application or fees have been received by 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, no hearing
shall be provided when 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, or failure of the motor carrier to submit an application or to
pay fees required by Section 34501.12.
   (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).


34623.5.  Notwithstanding any other provision of this code, before a
permit may be reissued after a suspension has been terminated, there
shall, in addition to any other fees required by this code, be paid
to the department a fee of one hundred fifty dollars ($150).



34624.  (a) The department shall establish a classification of motor
carrier of property known as owner-operators.
   (b) As used in this section and in Sections 1808.1 and 34501.12,
an owner-operator is a person who meets all of the following
requirements:
   (1) Holds a class A or class B driver's license or a class C
license with a hazardous materials endorsement.
   (2) Owns, leases, or otherwise operates not more than one power
unit and not more than three towed vehicles.
   (3) Is required to obtain a permit as a motor carrier of property
by the department under this division.
   (c) (1) As used in this section, "power unit" is a motor vehicle
described in subdivision (a), (b), (g), (f), or (k) of Section 34500,
or a motortruck of two or more axles that is more than 10,000 pounds
gross vehicle weight rating, but does not include those vehicles
operated by household goods carriers, as defined in Section 5109 of
the Public Utilities Code or persons providing transportation of
passengers.  A "towed vehicle" is a nonmotorized vehicle described in
subdivision (d), (e), (f), (g), or (k) of that section.
   (2) As used in this section, subdivision (f) of Section 34500
includes only those combinations where the gross vehicle weight
rating of the towing vehicle exceeds 11,500 pounds, and subdivision
(g) of Section 34500 includes only those vehicles transporting
hazardous materials for which the display of placards is required
pursuant to Section 27903, a license is required pursuant to Section
32000.5, or for which a hazardous waste transporter registration is
required pursuant to Section 25163 of the Health and Safety Code.
   (d) The department, upon suspending or revoking the driving
privilege of an owner-operator shall also suspend the owner-operator'
s motor carrier permit, unless the owner-operator, within 15 days,
shows good cause why the permit should not be suspended.
   (e) Every motor carrier who is within the classification
established by this section is responsible for notifying all other
motor carriers with whom he or she is under contract when the status
of the motor carrier changes so that he or she is no longer within
the classification established by this section.
   (f) This section shall not be construed to change the definition
of "employer," "employee," or "independent contractor" for any other
purpose.