III. THE INVESTIGATION

CPSD's investigation specifically alleges 1,480 violations of the Pub. Util. Code, the CVC, 13 CCR, G.O.157-C, and other Commission rules and regulations. The nature of these offenses, their counts, and the resulting potential fines include the following:

A. Operated After Suspension of Permit

Pub. Util. Code Section 5379 provides that "no passenger charter-party carrier shall operate over any public highway in this State without a valid certificate or permit in force from the Commission authorizing such operations". Staff's investigation disclosed that on April 25, 2002, Ultimate Limousine's Class P Charter Party Permit was suspended for failure to maintain evidence of public liability insurance coverage on file with the Commission. Ultimate Limousine's records disclose that the carrier continued to operate after the suspension of its operating permit, in violation of Section 5379. Staff's investigation further disclosed that Ultimate Limousine conducted approximately 1,350 trips between May 1, 2002 and July 14, 2002, while its authority was suspended for failure to maintain evidence of liability insurance on file with the Commission.

Sections 5378(b) and 5415 authorize the Commission to impose a penalty of up to $5,000 per violation. At 1,350 alleged violations, Respondents could be held jointly liable for a total fine of up to $6,750,000.

According to Section 5391 and Commission G.O. 115-F, a carrier must maintain evidence of public liability and property damage insurance coverage in effect and on file with the Commission. In this case, Respondents failed to maintain the required evidence of public liability and property damage insurance coverage encompassing the period from April 25, 2002 through July 14, 2002 (81 days).

Sections 5378(b) and 5415 authorize the Commission to impose a penalty of up to $5,000 per violation. At 81 alleged violations, Respondents could be held jointly liable for a total fine of up to $405,000.

Under Pub. Util. Code Section 5374 (a)(2) the Commission shall not issue or renew a permit unless the applicant "provides for a mandatory controlled substance and alcohol testing certification program as adopted by the commission pursuant to Section 1032.1." Commission's G.O.157-C, Part 10 provides in part "All charter-party carrier applicants (new and renewal) who propose to employ any driver who will operate a vehicle having a seating capacity of 15 persons or less, including the driver, must provide for a mandatory controlled substance and alcohol testing certification program for those drivers as required by this G.O. unless all such drivers are already covered by federal testing regulations. Charter-party carriers who employ any driver who operates a vehicle with a seating capacity of 16 persons or more, including the driver, must comply with the federal regulations concerning controlled substance and alcohol testing for those drivers."

The initial investigation disclosed that on and between May 1, 2002, and August 31, 2002, Ultimate Limousine failed to enroll approximately 41 employee-drivers in a mandatory alcohol and controlled substance testing certification program, and to conduct pre-employment alcohol and controlled substance tests.

The follow-up investigation disclosed that between September 1, 2003, and October 15, 2003, Ultimate Limousine again failed to enroll at least 8 employee-drivers in a mandatory alcohol and controlled substance testing certification program, and to conduct pre-employment alcohol and controlled substance tests.

Sections 5378(b) and 5415 authorize the Commission to impose a penalty of up to $5,000 per violation. At 50 alleged violations, Respondents could be held jointly liable for a total fine of up to $250,000.

D. Failure To Enroll Drivers in DMV Pull Notice Program

Pursuant to Pub. Util. Code Section 5381 and G.O.157-C, Part 5.02, every passenger charter-party carrier must enroll its drivers into the DMV Pull Notice Program, pursuant to CVC Section 1808.1. This program tracks and monitors the driver license status of an employee/driver and reports to the employer if the driver's driving privilege has been suspended or revoked. The investigation disclosed that on and between May 1, 2002 and August 31, 2002, Ultimate Limousine failed to enroll, or to timely enroll at least 17 employee-drivers in the DMV's Employer Pull Notice Program.

The follow-up investigation disclosed that between September 1, 2003 and October 15, 2003, Andy's Limousine again failed to enroll at least 6 employee-drivers in the DMV's Employer Pull Notice Program.

Sections 5378(b) and 5415 authorize the Commission to impose a penalty of up to $5,000 per violation. At 23 alleged violations, Respondents could be held jointly liable for a total fine of up to $115,000.

E. Engaged Drivers Without Proper California Driver License

G.O.157-C, Part 5.01 provides that every driver of a charter-party vehicle shall be licensed as required under the CVC and shall comply with the driver provisions of the Motor Carrier Safety Sections of 13 CCR. CVC Section 15250 provides in part that "No person shall operate a commercial motor vehicle unless that person has in his or her immediate possession a valid commercial driver's license of the appropriate class."

The investigation disclosed that on and between May 1, 2002 and August 31, 2002, Ultimate Limousine employed at least 20 employee-drivers that did not possess the proper California driver license (CDL) to drive carrier's buses.

The follow-up investigation disclosed that between September 1, 2003 and October 15, 2003, Ultimate Limousine and Andy's Limousine continue to employ at least 15 employee-drivers that did not possess the proper CDL to drive carrier's buses.

Sections 5378(b) and 5415 authorize the Commission to impose a penalty of up to $5,000 per violation. At 35 alleged violations, Respondents could be held jointly liable for a total fine of up to $175,000.

G.O. 157-C, Part 4.01 provides that every carrier shall maintain on file with the Commission an equipment list of all vehicles (owned or leased) in use under each certificate and permit. The information for each vehicle shall include the license plate number, manufacturer, model year, vehicle identification number (V.I.N.), seating capacity, description of body type or model designation, and whether the vehicle is leased or owned. Additions and deletions to the equipment list shall be filed within ten days of the date the vehicle is put into or pulled out of service. Upon written notification from carrier of any new additions of vehicles with seating capacity of more than 10 passengers, License Section immediately notify the California Highway Patrol (CHP) so that it can schedule a safety inspection of the carrier's vehicles and terminal. This requirement is also stated on the carrier's operating authority.

The investigation disclosed that on and between May 1, 2002 and August 31, 2002, Ultimate Limousine failed to report at least four vehicles with seating capacities of more than 15-passengers to the Commission; and under-reported the seating capacity of a fifth vehicle. Staff alleges that Wagner has failed to report to the Commission all equipment he has placed into passenger service, thereby preventing the Commission from accurately informing the CHP of all equipment required to be inspected by the CHP.

The follow-up investigation disclosed that between September 1, 2003 and October 15, 2003, Ultimate Limousine again failed to timely report at least 3 vehicles used in its operations to the Commission.

Sections 5378(b) and 5415 authorize the Commission to impose a penalty of up to $5,000 per violation. At 8 alleged violations, Respondents could be held jointly liable for a total fine of up to $40,000.

G. Operated Vehicles with Larger Seating Capacities than Authorized by Its Charter-Party Permit

Pub. Util. Code Section 5371 provides that "No charter-party carrier of passengers ... shall engage in transportation services made subject to this chapter without first having obtained from the commission a certificate that public convenience and necessity require the operation, except that certain specific transportation services as defined in Section 5384 may be conducted under authority of a permit issued by the commission."

Ultimate Limousine's charter-party carrier permit, issued pursuant to Pub. Util. Code Section 5384 (b), authorizes the operation of only vehicles under 15-passenger seating capacity. This requirement is also stated on the carrier's charter-party permit.

The investigation disclosed that on and between May 1, 2002 and August 31, 2002, Ultimate Limousine operated at least 5 vehicles with seating capacities of more than 15-passengers without the proper charter-party authority.

Sections 5378(b) and 5415 authorize the Commission to impose a penalty of up to $5,000 per violation. At 7 alleged violations, Respondents could be held jointly liable for a total fine of up to $35,000.

H. Failed To Issue and Maintain Transportation Documents Which Show All Required Information

G.O.157-C, Part 3.01 provides in part that Class A and Class B charter-party carriers, as defined in Pub. Util. Code Section 5383, and carriers holding permits under Pub. Util. Code Section 5384(b) shall provide transportation only on a prearranged basis. For each prearranged trip, the driver shall possess a waybill which includes the following:

1. Name of carrier and TCP number.

2. Vehicle license plate number.

3. Driver's name.

4. Name and address of person requesting or arranging the charter.

5. Time and date when charter was arranged.

6. Number of persons in the charter group.

7. Points of origination and destination.

The investigation disclosed that on and between May 1, 2002 and August 31, 2002, Ultimate Limousine failed to include all required information on its waybills (trip sheets). The follow-up investigation disclosed that between September 1, 2003 and October 15, 2003, Ultimate Limousine and Andy's Limousine failed to display all required information on its waybills (trip sheets).

CPSD alleges violations of G.O.157-C, Part 4.01, each offense subject to a $5,000 fine.

I. Failed To Display TCP Number on Its For-Hire Vehicles

Pub. Util. Code Section 5385 requires charter-party carriers to display on every vehicle an identifying symbol in the form prescribed by the Commission. G.O.157-C, Part 4.06 provides in part, that the number assigned by the Commission to the carrier's authority shall be shown in full on all charter party vehicles, including the prefix "TCP", the authority number and the authority suffix "A", "B", "C", "S", "P" and/or "Z" (which designate Class "A" certificate, Class "B" certificate, Class "C" certificate, charter-party permit, round-trip sightseeing permit, and specialized carrier permit, respectively). The symbols shall be displayed on each side of the vehicle, EXCEPT vehicles designed to carry not more than 15 persons, including the driver, which shall display the identification symbol on the front and rear bumpers.

The follow-up investigation disclosed that between September 1, 2003 and October 15, 2003, Ultimate Limousine and Andy's Limousine failed to display its TCP number on at least five vehicles used in its for-hire operations.

Sections 5378(b) and 5415 authorize the Commission to impose a penalty of up to $5,000 per violation. At 5 alleged violations, Respondents could be held jointly liable for a total fine of up to $25,000.

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