The second Angels Flight location opened one half block south of the original location in 1996, mid-block between 3rd and 4th Streets, with tracks connecting Hill Street and California Plaza. It was shut down in 2001, following a fatal accident, and took nine years to commence operations again. The railroad restarted operations on March 15, 2010. It was closed again from June 10, 2011, to July 5, 2011, and then again after a minor derailment incident on September 5, 2013. The investigation of this 2013 incident led to the discovery of potentially serious safety problems in both the design and the operation of the funicular.
