II. CPSD'S INVESTIGATION
CPSD's investigation alleges 305 violations of the Public Utilities Code, the CVC, 13 CCR, and G.O.s 115-F and 157-C. The nature of these offenses, their counts, and the resulting potential fines are shown below.
A. Operating After Suspension and Revocation of Permit
Public Utilities 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." CPSD's investigation disclosed that on October 7, 2003, Wine & Roses' Class P Charter Party Permit was suspended for failure to maintain evidence of workers' compensation insurance coverage on file with the Commission. An audit of Wine & Roses' records disclosed that the carrier continued to operate after the suspension and subsequent revocation of its operating permit, in violation of section 5379. CPSD's initial investigation further disclosed that Wine & Roses conducted trips on approximately 108 days between October 7, 2003 and January 25, 2004, while its authority was first suspended and then revoked for failure to maintain evidence of workers' compensation insurance on file with the Commission. The follow-up investigation disclosed that Wine & Roses also conducted trips on 28 days between December 2, 2004 and December 29, 2004, while its authority was suspended for failure to return the annual bus inspection report and remit appropriate inspection fees.
B. Operation Without Proper Workers' Compensation Insurance Coverage
Section 5378.1 requires that each carrier maintain evidence of workers' compensation insurance on file with the Commission. In this case, Wine & Roses failed to maintain the required evidence of workers' compensation insurance coverage encompassing the period from October 7, 2003, through January 23, 20042 (109 days). The initial investigation disclosed that during this period, Wine & Roses engaged 73 employees without having evidence of workers' compensation insurance on file with the Commission.
C. Failure To Enroll Drivers and Conduct Pre-employment Testing as Part of a Mandatory Alcohol and Controlled Substance Testing Certification Program
Under Public Utilities 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." In turn, Commission's G.O.157-C, Part 10 provides, "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 November 12, 2003, and June 22, 2004, Wine & Roses failed to enroll 8 employee-drivers in a mandatory alcohol and controlled substance testing certification program, and to conduct pre-employment controlled substance tests. The follow-up investigation disclosed that between October 1, 2004, and December 31, 2004, Wine & Roses failed to conduct pre-employment testing of two employee-drivers as part of a mandatory alcohol and controlled substance testing certification program.
D. Failure To Enroll Drivers in DMV Employer Pull Notice Program
Pursuant to Public Utilities Code Section 5381 and G.O.157-C, Part 5.02, every passenger charter-party carrier is required to enroll its drivers in the DMV Employer Pull Notice Program, as defined by CVC Section 1808.1. This program tracks and monitors the driving record of each employee/driver and reports to the employer if the driver's license has been suspended or revoked. The initial investigation disclosed that between October 3, 2003, and April 19, 2004, Wine & Roses failed to enroll or timely enroll 22 employee-drivers in the DMV's Employer Pull Notice Program. The follow-up investigation disclosed that between October 1, 2004 and December 31, 2004, Wine & Roses did not enroll five employee-drivers in the DMV's Employer Pull Notice Program.
E. Employment of Drivers Without Proper Class of California Driver Licenses
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 Motor Carrier Safety Sections of 13 CCR. CVC Section 15250 provides, "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 initial investigation disclosed that between October 3, 2003, and July 9, 2004, Wine & Roses employed three employee-drivers that did not possess the proper class of California driver license to drive carrier's buses.
F. Failure to File All Fictitious Business Names with the Commission
G.O. 157-C, Part 3.06 provides that a carrier shall not use any trade, business, or fictitious name which is not on file with the Commission. The initial investigation disclosed that between May 4, 2004, and July 6, 2004, Wine & Roses used the fictitious business name "AAA Limousine Service" on its web site at www.aaalimo.com. Steve Bonner provided CPSD a copy of Wine & Roses' fictitious business names on file with the County Clerk's Office in San Mateo County, to wit: AAA Limousines, AA Limousines, Expresso Limousines, Expresso Transportation, AAA Corporate Limousines, Total Transportation Network (TTN), and LaGrande Affaire.
G. Operating Vehicles with Larger Seating Capacities than Authorized by its Charter-Party Permit
Public Utilities Code Section 5371 provides, "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." Wine & Roses' charter-party permit, issued pursuant to Public Utilities Code section 5384 (b), restricts chartered operations to vehicles with seating capacity of less than 15 passengers. This requirement is also stated on the carrier's charter-party permit. The initial investigation disclosed that on and between August 1, 2003, and January 25, 2004, Wine & Roses operated 5 vehicles with seating capacities ranging from 15 to 26 passengers without a proper charter-party authority. The follow-up investigation disclosed that between October 1, 2004, and December 31, 2004, Wine & Roses continued to violate this provision by operating 6 vehicles with seating capacities ranging from 16 to 25 passengers without a proper charter-party authority. (One of the six vehicles was among the five noted in the prior investigation.)
H. Failure to Procure Adequate Public Liability Insurance
Public Utilities Code Section 5391 requires that all charter-party carriers of passengers procure and continue in effect during the life of the permit or certificate adequate protection against liability imposed by law upon such carriers. G.O. 115-F sets required minimum limits of liability coverage dependent upon seating capacity of vehicles utilized by the carrier in its charter-party operations:
The follow-up investigation disclosed that between October 1, 2004, and December 31, 2004, Wine & Roses operated at least one vehicle with a seating capacity of at least 16 passengers with only $1.5 Million dollars in insurance coverage.
I. Failure to Answer Complaint
G.O. 157-C, Part 7.01 requires that each carrier respond within 15 days to any written complaint concerning transportation provided or arranged by the carrier. A carrier shall, within 15 days, respond to CPSD's inquiries regarding complaints and provide copies of any requested correspondence and records. On May 4, 2004, CPSD received a complaint from Wine & Roses' customer Laura Irvine. Ms. Irvine's complaint alleged poor service and an overcharge by Wine & Roses Limousine, dba "AAA Limousines Service". The carrier failed to respond to this complaint in writing by May 19, 2004, as directed by CPSD. The follow-up investigation disclosed that Wine & Roses also has not responded to CPSD regarding this complaint.
2 Evidence of workers' compensation insurance was filed with the Commission on January 26, 2004, showing an effective date of January 24, 2004.
