BILL NUMBER: AB 2068 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 24, 2014
AMENDED IN ASSEMBLY APRIL 21, 2014
AMENDED IN ASSEMBLY MARCH 28, 2014
INTRODUCED BY Assembly Member Nazarian
FEBRUARY 20, 2014
An act to amend Sections 5360 and 5391 of the Public Utilities
Code, relating to transportation.
LEGISLATIVE COUNSEL'S DIGEST
AB 2068, as amended, Nazarian. 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 rendered a decision
relating to public safety risks in the operation of transportation
network 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. The bill would require the
commission to develop a standard disclosure agreement with specified
insurance disclosures, and would require the agreement to be included
in a written agreement between drivers and charter-party carriers of
passengers that use an online-enabled application or platform to
connect passengers with drivers, and to be signed by those drivers.
The bill would provide that the disclosure agreement records of a
charter-party carrier of passengers are subject to review
and audit by the commission.
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.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: 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. (a) 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 that are applicable
to operations conducted under certificates of public convenience and
necessity issued pursuant to the provisions of Article 2 (commencing
with Section 1031) of Chapter 5 of Part 1 of Division 1, and the
rules and regulations prescribed pursuant thereto shall apply to
charter-party carriers of passengers.
(b) The commission shall develop a standard disclosure agreement
with respect to drivers who make themselves available for services
with charter-party carriers of passengers that utilize an
online-enabled application or platform to connect passengers with
drivers. The standard disclosure agreement shall be part of a written
agreement between drivers and those charter-party carriers of
passengers, and shall provide information to drivers about insurance
coverage and limits of liability coverage and advise drivers that
their personal automobile insurance policy may not provide coverage
when they are operating a vehicle as part of that charter-party
carrier of passengers operation. The standard disclosure agreement
shall be in writing and shall be signed by each driver participating
in this type of arrangement with a charter-party carrier of
passengers. Standard disclosure agreement records of charter-party
carriers of passengers shall be subject to review and audit by the
commission at its discretion.
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.