There is much confusion about the new California requirement effective on January 1, 2011 that requires dump truck brokers to carry a $10,000 bond. It is really quite simple, if you are hiring sub haulers to move dirt, sand and gravel for you, you are considered a broker. Although they have not started enforcing this bond, I have been told that there are plans to start enforcing it soon. It is not a big deal, if you have good credit they can be as cheap as $350 per year, if you have poor credit the most expensive one I have seen is $1350 per year. Here is the actual law that states the requirements. Let me know if you have any questions, send me an email and I will be happy to help. Quotes only take a couple of hours. Assembly Bill No. 145
CHAPTER 429
An act to amend Section 34620 of, and to add Section 34510.5 to, the
Vehicle Code, relating to vehicles.
[Approved by Governor September 29, 2010. Filed with
Secretary of State September 29, 2010.]
legislative counsel’s digest
AB 145, De León. Motor carriers: construction trucking services.
(1) Existing law requires the Department of Motor Vehicles to regulate
the safe operation of specified vehicles, including commercial motor vehicles
and trailer and semitrailer commercial vehicle combinations owned and
operated by motor carriers. Existing law also requires every motor carrier
of property to comply with specified safety, permit, and liability insurance
regulations and to pay the fees required by these provisions.
Existing law also prohibits a motor carrier of property from contracting
or subcontracting with, or otherwise engaging the services of, another motor
carrier of property, until the contracted motor carrier of property provides
certification in the manner prescribed by the above provisions, of compliance
with safety inspection, certificate, permit, and financial responsibility
requirements. A violation of those provisions is a misdemeanor.
This bill would apply this prohibition to a broker of construction trucking
services, as defined, and would prohibit that broker from furnishing
construction transportation services to any construction project unless it has
secured a surety bond of not less than $15,000 that meets specified
requirements. The bill would make a broker of construction trucking services
who violates these provisions guilty of a misdemeanor and subject to a fine
of up to $5,000.
The bill would also create a rebuttable presumption in any civil action
brought against a broker of construction trucking services by a motor carrier
of property in dump truck equipment with whom the broker contracted
during any period of time in which the broker did not have a surety bond
in violation of the above-described provisions, that the broker failed to pay
to the motor carrier the amount due and owing.
By expanding the scope of an existing crime and creating new crimes,
the bill would impose a state-mandated local program.
(2) The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the state. Statutory
provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for
a specified reason.
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The people of the State of California do enact as follows:
SECTION 1. Section 34510.5 is added to the Vehicle Code, to read:
34510.5. (a) A broker of construction trucking services, as defined in
Section 3322 of the Civil Code, shall not furnish construction transportation
services to any construction project unless it has secured a surety bond of
not less than fifteen thousand dollars ($15,000) executed by an admitted
surety insurer. The surety bond shall ensure the payment of the claims of a
contracted motor carrier of property in dump truck equipment if the broker
fails to pay the contracted motor carrier within the time period specified in
paragraph (1) of subdivision (a) of Section 3322 of the Civil Code.
(b) A broker of construction trucking services who furnishes construction
transportation services in violation of this section is guilty of a misdemeanor
and subject to a fine of up to five thousand dollars ($5,000).
(c) In any civil action brought against a broker of construction trucking
services by a motor carrier of property in dump truck equipment with whom
the broker contracted during any period of time in which the broker did not
have a surety bond in violation of this section, the failure to have the bond
shall create a rebuttable presumption that the broker failed to pay to the
motor carrier the amount due and owing.
(d) For purposes of this section, “a broker of construction trucking
services” does not include a facility that meets all the following requirements:
(1) Arranges for transportation services of its product.
(2) Primarily handles raw materials to produce a new product.
(3) Is a rock product operation (such as an “aggregate” operation), a hot
mixing asphalt plant, or a concrete, concrete product, or Portland cement
product manufacturing facility.
(4) Does not accept a fee for the arrangement.
SEC. 2. Section 34620 of the Vehicle Code is amended to read:
34620. (a) Except as provided in subdivision (b) and Section 34622, a
motor carrier of property shall not 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, and holds a valid motor carrier permit
issued to that motor carrier by the department. The department shall issue
a motor carrier permit upon the carrier’s written request, compliance with
Sections 34507.5, 34630, and 34640, and subdivisions (e) and (h) of Section
34501.12 for motor carriers listed in that section, and the payment of the
fee required by this chapter.
(b) A person shall not 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. A motor carrier of
property or broker of construction trucking services, as defined in Section
3322 of the Civil Code, shall not contract or subcontract with, or otherwise
engage the services of, a 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
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Ch. 429 — 2 —
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.
SEC. 3. No reimbursement is required by this act pursuant to Section 6
of Article XIII B of the California Constitution because the only costs that
may be incurred by a local agency or school district will be incurred because
this act creates a new crime or infraction, eliminates a crime or infraction,
