BILL NUMBER: AB 2068 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 21, 2014
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 amend Sections 5360 and 5391 of
the Public Utilities Code, and to amend Section 260 of the
Vehicle Code, relating to transportation.
LEGISLATIVE COUNSEL'S DIGEST
AB 2068, as amended, Nazarian. Transportation network
companies: operating requirements. Charter-party
carriers of passengers.
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 rendered a decision
relating to public safety risks in the operation of
transportation network companies. Existing regulations
define companies and defined 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.
This bill would specifically include within the definition of
charter-party carrier of passengers a person that uses an
online-enabled application or platform to connect passengers with
drivers.
Existing law requires the commission to require charter-party
carriers of passengers to procure and continue in effect adequate
assurances of protection against liability, as specified.
This bill would specify that the assurances against protection
against liability shall be primary.
Existing law provides that a violation of the provisions governing
charter-party carriers of passengers and of associated regulations
adopted by the commission is a crime.
This bill would revise the definition of a crime, thereby imposing
a state-mandated local program.
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.
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.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no yes .
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 5360 of the Public
Utilities Code is amended to read:
5360. Subject to the exclusions of Section 5353, "charter-party
carrier of passengers" means every person engaged in the
transportation of persons by motor vehicle for compensation, whether
in common or contract carriage, over any public highway in this state
, and includes a person that uses an online-enabled application
or platform to connect passengers with drivers .
"Charter-party carrier of passengers" includes any person,
corporation, or other entity engaged in the provision of a hired
driver service when a rented motor vehicle is being operated by a
hired driver.
SEC. 2. Section 5391 of the Public
Utilities Code is amended to read:
5391. The commission shall, in granting permits or a certificate
pursuant to this chapter, require the charter-party carrier of
passengers to procure, and to continue in effect during the life of
the permit or certificate, adequate protection against liability
imposed by law upon the charter-party carrier of passengers for the
payment of damages for personal bodily injuries, including death
resulting therefrom, protection against a total liability of the
charter-party carrier of passengers on account of bodily injuries to,
or death of, more than one person as a result of any one accident,
and protection against damage or destruction of property. The
requirements for such assurances of protection against
liability shall be primary. The minimum requirements for such
assurances of protection against liability shall not be less than the
requirements which are applicable to operations conducted under
certificates of public convenience and necessity issued pursuant to
the provisions of Article 2 (commencing with Section 1031),
1031) of Chapter 5, 5 of
Part 1, 1 of Division 1,
of this code, and the rules and regulations
prescribed pursuant thereto shall apply to charter-party carriers of
passengers.
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, or
changes the penalty for a crime or infraction, within the meaning of
Section 17556 of the Government Code, or changes the definition of a
crime within the meaning of Section 6 of Article XIII B of the
California Constitution.
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.