BILL NUMBER: AB 2293	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MARCH 28, 2014

INTRODUCED BY   Assembly Member Bonilla

                        FEBRUARY 21, 2014

    An act to amend Section 11580.24 of the Insurance Code,
relating to motor vehicle insurance coverage.   An act
to add Chapter 8.5 (commencing with Section 5430) to Division 2 of
the Public Utilities Code, relating to transportation. 


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2293, as amended, Bonilla.  Private passenger motor
vehicle insurance coverage: personal vehicle sharing.  
Transportation network companies: insurance coverage: disclosure.
 
   Under existing law, the Passenger Charter-party Carriers' Act, the
Public Utilities Commission has adopted rules and regulations
relating to public safety risks in the operation of transportation
services utilizing transportation network companies. Those
regulations define a transportation network company as an
organization operating in California 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 acquire a commercial
liability policy for incidents involving transportation network
company vehicles and drivers in transit to or during a transportation
network company trip.  
   This bill would more broadly define "transportation network
company" by excluding the requirement that a transportation network
company trip be prearranged and would require a transportation
network company to disclose in writing to participating drivers, as
part of its agreement with those drivers, the insurance coverage and
limits of liability provided by the transportation network company
and to advise a participating driver in writing that the driver's
personal automobile insurance policy may not provide coverage while
the driver makes himself or herself available for transportation
network company services.  
   Existing law prohibits a private passenger motor vehicle, as
defined, from being classified for insurance purposes as a
commercial, for-hire, permissive use vehicle, or livery solely on the
basis of it being used for personal vehicle sharing, as defined, if
the annual revenue received by the vehicle's owner that is generated
by personal vehicle sharing does not exceed the annual expenses of
owning and operating the vehicle and the personal vehicle sharing is
conducted pursuant to a personal vehicle sharing program. 

   This bill would make technical, nonsubstantive changes to those
provisions. 
   Vote: majority. Appropriation: no. Fiscal committee: no.
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, or sole proprietor, operating in California that
provides transportation services for compensation using an
online-enabled application or platform to connect passengers with
drivers using their personal vehicles.
   5431.  A transportation network company shall disclose in writing
to participating drivers, as part of its agreement with those
drivers, the insurance coverage and limits of liability that the
transportation network company provides while a driver makes himself
or herself available for transportation network company services, and
shall advise a participating driver in writing that the driver's
personal automobile insurance policy may not provide coverage while
the driver makes himself or herself available for transportation
network company services.  
  SECTION 1.    Section 11580.24 of the Insurance
Code is amended to read:
   11580.24.  (a) A private passenger motor vehicle insured by its
owner pursuant to a policy of insurance subject to Section 11580.1 or
11580.2 shall not be classified as a commercial vehicle, for-hire
vehicle, permissive use vehicle, or livery solely because its owner
allows it to be used for personal vehicle sharing if all of the
following circumstances apply:
   (1) The personal vehicle sharing is conducted pursuant to a
personal vehicle sharing program.
   (2) The annual revenue received by the vehicle's owner that was
generated by the personal vehicle sharing of the vehicle does not
exceed the annual expenses of owning and operating the vehicle,
including depreciation, interest, lease payments, auto loan payments,
insurance, maintenance, parking, fuel, cleaning, automobile repair,
and costs associated with personal vehicle sharing, including, but
not limited to, the installation, operation, and maintenance of
computer hardware and software, signage identifying the vehicle as a
personal sharing vehicle, and any fees charged by a personal vehicle
sharing program.
   (3) The owner of the private passenger motor vehicle does not
knowingly place the vehicle into commercial use, as defined by
Section 675.5, by a personal vehicle sharing user while engaged in
personal vehicle sharing.
   (b) For purposes of this section the following definitions apply:
   (1) "Personal vehicle sharing" means the use of private passenger
motor vehicles by persons other than the vehicle's owner, in
connection with a personal vehicle sharing program.
   (2) "Personal vehicle sharing program" means a legal entity
qualified to do business in the State of California engaged in the
business of facilitating the sharing of private passenger vehicles
for noncommercial use by individuals within the state.
   (3) "Private passenger motor vehicle" means a vehicle that is
insured, or is subject to being insured, under a personal automobile
liability insurance policy insuring a single individual or
individuals residing in the same household, as the named insured, or
meets the requirements of Section 16058 of the Vehicle Code, but does
not include a vehicle with fewer than four wheels.
   (c) A personal vehicle sharing program shall, for each vehicle
that it facilitates the use of, do all of the following:
   (1) During all times that the vehicle is engaged in personal
vehicle sharing, provide insurance coverages for the vehicle and
operator of the vehicle that are equal to or greater than the
insurance coverages maintained by the vehicle owner and reported to
the personal vehicle sharing program. However, the personal vehicle
sharing program shall not provide liability coverage less than three
times the minimum insurance requirements for private passenger
vehicles. Compliance with the terms and conditions of this paragraph
shall be deemed to avoid the application of the limitation on damage
recoveries set forth in Section 3333.4 of the Civil Code.
   (2) Provide the registered owner of the vehicle with a Department
of Motor Vehicles Form REG 5085 or other suitable proof of compliance
with the insurance requirements of this section and the requirements
of the California Financial Responsibility Law in Section 1656.2 of
the Vehicle Code, a copy of which shall be maintained in the vehicle
by the vehicle's registered owner during any time when the vehicle is
operated by any person other than the vehicle's owner pursuant to a
personal vehicle sharing program.
   (3) Collect, maintain, and make available to the vehicle's owner,
the vehicle owner's primary automobile liability insurer on file with
the Department of Motor Vehicles, and to any other government agency
as required by law, at the cost of the personal vehicle sharing
program, verifiable electronic records that identify the date, time,
initial and final locations of the vehicle, and miles driven when the
vehicle is under the control of a person other than the vehicle's
owner pursuant to a personal vehicle sharing program.
   (4) Provide the vehicle's owner and any person that operates the
vehicle pursuant to a personal vehicle sharing program with a
disclosure that contains information explaining the terms and
conditions contained in this section.
   (5) Not knowingly permit the vehicle to be operated for commercial
use by a personal vehicle sharing user while engaged in personal
vehicle sharing.
   (6) Use only private passenger vehicles.
   (7) Facilitate the installation, operation, and maintenance of
computer hardware and software and signage, necessary for a vehicle
to be used in a personal vehicle sharing program, including payment
of the cost of damage or theft of that equipment and any damage
caused to the vehicle by the installation, operation, and maintenance
of that equipment.
   (d) Notwithstanding any other law or any provision in a private
passenger motor vehicle owner's automobile insurance policy, in the
event of a loss or injury that occurs during a time period when the
vehicle is under the operation and control of a person, other than
the vehicle owner, pursuant to a personal vehicle sharing program, or
otherwise under the control of a personal vehicle sharing program,
the personal vehicle sharing program shall assume all liability of
the owner and shall be considered the owner of the vehicle for all
purposes. Nothing in this section limits the liability of the
personal vehicle sharing program for its acts or omissions that
result in injury to any persons as a result of the use or operation
of a personal vehicle sharing program.
   (e) A personal vehicle sharing program shall continue to be liable
pursuant to subdivision (d) until both of the following occur:
   (1) The private passenger motor vehicle is returned to a location
designated by the personal vehicle sharing program.
   (2) The earliest of one of the following occurs:
   (A) The expiration of the time period established for the
particular use of the vehicle.
   (B) The intent to terminate the personal vehicle sharing use is
verifiably communicated to the personal vehicle sharing program.
   (C) The vehicle's owner takes possession and control of the
vehicle.
   (f) The personal vehicle sharing program shall assume liability
for a claim in which a dispute exists as to who was in control of the
vehicle when the loss occurred giving rise to the claim, and the
vehicle's private passenger motor vehicle insurer shall indemnify the
personal vehicle sharing program to the extent of its obligation
under the applicable insurance policy, if it is determined that the
vehicle's owner was in control of the vehicle at the time of the
loss.
   (g) If the owner of the vehicle is named as a defendant in a civil
action, for a loss or injury that occurs during a time period when
the vehicle is under the operation and control of a person, other
than the vehicle's owner, pursuant to a personal vehicle sharing
program, or otherwise under the control of a personal vehicle sharing
program, the personal vehicle sharing program shall have the duty to
defend and indemnify the vehicle's owner, subject to the provisions
of subdivisions (d) and (f).
   (h) Notwithstanding any other law or any provision in a vehicle
owner's automobile liability insurance policy, while a private
passenger motor vehicle is used by a person other than its owner
pursuant to personal vehicle sharing facilitated through a personal
vehicle sharing program, all of the following shall apply:
   (1) The insurer of that vehicle on file with the Department of
Motor Vehicles may exclude any and all coverage afforded pursuant to
its policy.
   (2) The primary and excess insurer or insurers of the owners,
operators, and maintainers of the private passenger motor vehicle
used in a personal vehicle sharing program shall have the right to
notify an insured that it has no duty to defend or indemnify any
person or organization for liability for any loss that occurs during
use of the vehicle in a personal vehicle sharing program.
   (i) No policy of insurance that is subject to Section 11580.1 or
11580.2 shall be canceled, voided, terminated, rescinded, or
nonrenewed solely on the basis that the private passenger motor
vehicle has been made available for personal vehicle sharing pursuant
to a personal vehicle sharing program that is in compliance with the
provisions of this section.