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HomePublic Utilities CodeDiv. 1Pt. 1Ch. 2.5Art. 2§ 421 Common Carrier Annual Fees

§ 421 Common Carrier Annual Fees

Public Utilities Code·California
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§ 421 Common Carrier Annual Fees

Key Takeaways

  • •Companies like buses, trains, and airlines must pay a yearly fee to the state.
  • •The fee amount is based on how much money the state needs to check and regulate these companies.
  • •Train companies' fees can only be used for train safety checks and rules, not for other things.
  • •The state must hire at least four special train inspectors to make sure trains follow safety rules.

Example

A bus company operating in the state.

The bus company has to pay a fee every year. This fee helps the state pay for people who make sure the buses are safe and follow the rules.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 421 Common Carrier Annual Fees

(a) The commission shall annually determine a fee to be paid by every passenger stage corporation, charter-party carrier of passengers, pipeline corporation, for-hire vessel operator, common carrier vessel operator, railroad corporation, and commercial air operator, and every other common carrier and related business subject to the jurisdiction of the commission, except as otherwise provided in Article 3 (commencing with Section 431) of this chapter and Chapter 6 (commencing with Section 5001) of Division 2. (b) The annual fee shall be established to produce a total amount equal to the amount established in the authorized commission budget for the same year, including adjustments appropriated by the Legislature and an appropriate reserve, to regulate common carriers and related businesses, less the amount to be paid from special accounts or funds pursuant to Section 403, reimbursements, federal funds, other revenues, and unencumbered funds from the preceding year. (c) Notwithstanding any other provision of law, the fees paid by railroad corporations shall be used for state-funded railroad investigation and enforcement activities of the commission, other than the rail safety activities funded by the Transportation Planning and Development Account pursuant to Section 99315. The railroad fees shall be set annually at a level that generates not less than the amount sufficient to fund activities pursuant to Sections 765.5, 916.2, and 7712. (d) Expenditures of the detailed budget for the expenditure of railroad corporation fees submitted to the Legislature pursuant to Section 916.5 shall be limited to the following items: (1) Expenditures for employees occupying, and actually performing service in, railroad-safety personnel positions that are directly involved in inspecting railroads and enforcing rail safety regulations. The commission shall expend the funds budgeted pursuant to this subdivision for the salaries, per diem, and travel expenses of employees specified in this paragraph, unless, by statute, the commission is specifically prohibited from expending all or part of those funds. (2) Expenditures for employees occupying, and actually performing service in, clerical and support staff positions that are directly associated with railroad-safety inspections. (3) Expenditures for legal personnel who actually pursue violations of rail safety regulations beyond the informal complaint level. (4) Expenditures for the pro rata share of the commission’s overhead costs while state personnel are actually occupying the positions and are performing the duties specified in paragraphs (1) to (3), inclusive. (e) The Department of Finance shall notify the Joint Legislative Budget Committee, pursuant to Section 28.00 of the annual Budget Act, prior to authorizing any change in the Budget Act appropriation for railroad corporation fees that is larger than one hundred thousand dollars ($100,000), or 10 percent of the amount budgeted, whichever is less. (f) On or before January 1, 1994, the commission shall hire a minimum of four additional operating practices inspectors, exclusive of supervisory personnel, who are, or shall become by July 1, 1994, federally certified, for the purpose of enforcing compliance by railroads operating in this state with state and federal safety regulations. (g) The commission, in performing its duties, shall limit the expenditure of funds for rail safety purposes to those railroad corporation fees collected pursuant to subdivision (d). In no event shall the commission fund railroad safety activities utilizing funds from other commission accounts unrelated to railroad safety. (Amended by Stats. 2017, Ch. 425, Sec. 2. (SB 385) Effective January 1, 2018.)

Last verified: January 23, 2026

Key Terms

corporationenforcementcommissionvesselemployeeportlegislatureregulation

Related Statutes

  • § 423 Carrier Fee Payment Schedule
  • § 422 Carrier Fee Assessment Rules
  • § 425 Carrier Record Inspection Authority
  • § 426 Charter Bus Regulation Funding
  • § 431 Public Utility Annual Fees

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Public Utilities Code. Section 421.
View Official Source