Amended in Assembly April 10, 2014

Amended in Assembly March 28, 2014

California Legislature—2013–14 Regular Session

Assembly BillNo. 2293


Introduced by Assembly Member Bonilla

February 21, 2014


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. Transportation network companies: insurancebegin delete coverage: disclosure.end deletebegin insert coverage.end insert

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 wouldbegin delete more broadlyend deletebegin insert similarlyend insert define “transportation network company”begin delete by excluding the requirement that a transportation network company trip be prearrangedend delete 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.

begin insert

The bill would require a transportation network company’s insurance policy to apply, as the primary coverage, in the event of a loss or injury when a participating driver is logged on to the transportation network company’s application program.

end insert
begin insert

The bill would also require the transportation network company’s insurance company to defend and indemnify the participating driver and the person to whom the personal motor vehicle is registered in a civil action for a loss or injury that occurs when the personal motor vehicle is made available for transportation network services.

end insert

Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.

The people of the State of California do enact as follows:

P2    1

SECTION 1.  

Chapter 8.5 (commencing with Section 5430) is
2added to Division 2 of the Public Utilities Code, to read:

3 

4Chapter  8.5. Transportation Network Companies
5

 

6

5430.  

As used in this chapter, a “transportation network
7company” is an organization, including, but not limited to, a
8corporation, partnership, or sole proprietor, operating in California
9that providesbegin insert prearrangedend insert transportation services for compensation
10using an online-enabled application or platform to connect
11passengers with drivers using their personal vehicles.

12

5431.  

begin deleteA end deletebegin insert(1)end insertbegin insertend insertbegin insertA end inserttransportation network company shall disclose
13in writing to participating drivers, as part of its agreement with
14those drivers, the insurance coverage and limits of liability that
15the transportation network company provides while a driver makes
16himself or herself available for transportation network company
17services, and shall advise a participating driver in writing that the
18driver’s personal automobile insurance policy may not provide
19coverage while the driver makes himself or herself available for
20transportation network company services.

begin insert

P3    1(2) A transportation network company’s insurance policy is the
2primary policy coverage. If an applicable personal automobile
3insurance policy exists, the coverage of that policy is excess.

end insert
begin insert
4

begin insert5432.end insert  

For purposes of determining insurance coverage, a
5transportation network company’s insurance policy shall apply
6in the event of a loss or injury when a participating driver logs on
7to the transportation network company’s application program.
8Coverage under the transportation network company’s insurance
9policy ceases when the driver logs off from the transportation
10network company’s application program.

end insert
begin insert
11

begin insert5433.end insert  

If a participating driver or the person to whom the
12personal motor vehicle is registered is named a party in a civil
13action for a loss or injury that occurs during any time period when
14the personal motor vehicle is made available for transportation
15network services, the transportation network company’s insurance
16company shall have the duty to defend and indemnify the
17participating driver and the person to whom the personal motor
18vehicle is registered.

end insert


O

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