BILL NUMBER: AB 2068 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MARCH 28, 2014
INTRODUCED BY Assembly Member Nazarian
FEBRUARY 20, 2014
An act to add Chapter 8.5 (commencing with Section 5430) to
Division 2 of the Public Utilities Code, and to amend Section
40833 260 of the Vehicle Code, relating
to vehicles transportation .
LEGISLATIVE COUNSEL'S DIGEST
AB 2068, as amended, Nazarian. Vehicles: civil actions:
evidence. Transportation network companies:
operating requirements.
The Passenger Charter-party Carriers' Act, with certain
exceptions, prohibits a charter-party carrier of passengers from
engaging in transportation services subject to regulation by the
Public Utilities Commission without obtaining a specified certificate
or permit, as appropriate, from the commission, and imposes various
other requirements. Existing law establishes various exclusions to
the act. Pursuant to existing law, the commission has adopted rules
and regulations relating to public safety risks in the operation of
transportation network companies. Existing regulations define a
transportation network company as an organization that provides
prearranged transportation services for compensation using an
online-enabled platform to connect passengers with drivers using
their personal vehicles.
Existing regulations of the commission require, among other
things, a transportation network company to (1) obtain an operating
permit from the commission, (2) conduct a criminal background check
of each driver, (3) establish a driver training program, (4) adopt a
zero-tolerance policy on drugs and alcohol, (5) acquire a commercial
liability policy of at least $1,000,000 per-incident coverage for
incidents involving transportation network company vehicles and
drivers in transit to or during a transportation network company
trip, (6) carry workers' compensation insurance for the company's
employees, and (7) conduct a 19-point motor vehicle inspection of the
vehicles operated by drivers under contract with the company.
This bill would more broadly define "transportation network
company" by excluding the requirement that a transportation network
company trip be prearranged and would require the commission to adopt
additional rules and regulations that would require a transportation
network company to meet specified requirements that include, among
other things, participation in the Employer Pull Notice Program
administered by the Department of Motor Vehicles, registration of the
vehicles of its participating drivers as commercial vehicles, and
placing permanent markings on the rear bumper of each of those
vehicles that can be easily seen by the driving public and law
enforcement agencies. The bill would authorize a city, county, or a
city and county to adopt standards and requirements for clean fuel or
clean air vehicles operated by a transportation network company and
concerning the number of transportation network company vehicles that
may operate in its jurisdiction. The bill would also require the
Department of Food and Agriculture to establish a process for
approving and sealing online-enabled applications or platforms
utilized by a transportation network company.
Existing law requires that specified accident reports, certain
actions taken by the Department of Motor Vehicles, the findings, if
any, of the department upon which an action at law is based because
of an accident, and specified security required to be filed under the
Vehicle Code, not be referred to in any way, or be evidence of the
negligence or due care of any party, at the trial of any action at
law to recover damages.
This bill would make technical, nonsubstantive changes to these
provisions.
Vote: majority. Appropriation: no. Fiscal committee: no
yes . State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1 . Chapter 8.5
(commencing with Section 5430) is added to Division 2 of the
Public Utilities Code , to read:
CHAPTER 8.5. TRANSPORTATION NETWORK COMPANIES
5430. As used in this chapter, a "transportation network company"
is an organization, including, but not limited to, a corporation,
partnership, sole proprietor, operating in this state that provides
transportation services for compensation using an online-enabled
application or platform to connect passengers with drivers using
their personal vehicles.
5432. The commission shall adopt rules and regulations that
require a transportation network company to do all of the following:
(a) Adopt a drug and alcohol testing program that meets the
requirements of Section 53075.5 of the Government Code.
(b) Adopt a driver background check program that meets the
requirements of Section 12517.3 of the Vehicle Code.
(c) Participate in the Employer Pull Notice (EPN) Program
administered by the Department of Motor Vehicles.
(d) Submit its online-enabled application or platform along with
the algorithms used to measure the cost of trips to the Department of
Food and Agriculture for approval and sealing by the department to
determine that the online-enabled application or platform and mobile
electronic devices used by the transportation network company and its
participating drivers are charging the correct amount for each trip.
(e) Ensure that the vehicles of its participating drivers are
registered as commercial vehicles.
(f) Place permanent markings on the rear bumper of each vehicle
providing transportation network company services that can be easily
seen by the driving public and law enforcement agencies.
5433. The Department of Food and Agriculture shall establish a
process for approving and sealing online-enabled applications or
platforms utilized by a transportation network company.
5434. (a) A city, county, or city and county may adopt standards
and requirements for clean fuel or clean air vehicles operated by a
transportation network company.
(b) A city, county, or city and county may adopt standards and
requirements concerning the number of transportation network company
vehicles that may operate in its jurisdiction.
SEC. 2. Section 260 of the Vehicle Code
is amended to read:
260. (a) (1) A "commercial vehicle" is a
motor vehicle of a type required to be registered under this code
used or maintained for the transportation of persons for hire,
compensation, or profit or designed, used, or maintained primarily
for the transportation of property.
(2) A passenger vehicle or passenger transportation vehicle
operated for compensation in connection with a transportation network
company is a commercial vehicle.
(b) Passenger vehicles and house cars that are not used for the
transportation of persons for hire, compensation, or profit are not
commercial vehicles. This subdivision shall not apply to Chapter 4
(commencing with Section 6700) of Division 3.
(c) Any vanpool vehicle is not a commercial vehicle.
(d) The definition of a commercial vehicle in this section does
not apply to Chapter 7 (commencing with Section 15200) of Division 6.
SECTION 1. Section 40833 of the Vehicle Code is
amended to read:
40833. The report required by Section 16000, 16001, 16002, or
16003, the action taken by the department pursuant to Chapter 1
(commencing with Section 16000) of Division 7, the findings, if any,
of the department upon which an action is based, or the security
filed as provided in that chapter shall not be referred to in any
way, or be evidence of the negligence or due care of a party, at the
trial of any action at law to recover damages.