Governor Schwarzenegger Signs SB 372

October 5, 2006

By Greg Dineen
Industry Transportation Consultant

Helps construction transportation industry
achieve uniformity in permit requirements

Governor Arnold Schwarzenegger has signed Senate Bill 372 (Margett—R, Arcadia), a much needed measure which will help the construction transportation industry achieve uniformity in local government permits for “unusually large or heavy loads.”

The new law, which goes into effect January 1, 2007, will require cities and counties to conform to Caltrans’ rules on these loads, according to Greg Dineen, industry transportation consultant, who helped define the problem based on complaints from California heavy-haul transporters.

“Localities will no longer be able to charge more than Caltrans for transportation permits because of their interpretation of an ‘unusually large and heavy load,’” Dineen said, following the bill signing. “Some local governments have considered any load that requires a permit as ‘unusually large and heavy load,’ or you wouldn’t be applying for a permit.”

The additional language of SB 372 will clarify that unless the load is considered a variance load by Caltrans standards, cities and counties can not charge more for permits than Caltrans. State law provides that the cost for single trip permits is $16 and an annual permit is $90. If a load meets variance standards then local authorities may charge additional fees for additional services that may be required, such as engineering investigations, law enforcement escorts and tree trimming, which, according to the California Vehicle Code (section CVC 35795) “shall be billed separately for each permit.”

Under Caltrans regulations the fee for these services may not exceed $50 per hour of actual work performed. In the case of multiple identical loads, these service expenses should only be charged one time, with the possible exception of the cost of law enforcement escorts, Dineen added.

“We want to thank the Governor, Senator Margett and the Southern California Contractors Association who helped bring about this improvement in uniformity for our industry,” Dineen said.

A secondary benefit from approval of SB 372 should be a reduction in additional insurance requirements from communities where these loads are permitted.

“Now that we have a clear definition, local agencies should not require any proof of insurance other than what DMV currently requires, $750,000,” Dineen said... “This should eliminate localities requiring our industry from having to naming them additionally insured and not require anymore coverage than $750,000 in lieu of a permit being issued.”