BILL ANALYSIS Ó AB 229 Page 1 Date of Hearing: April 29, 2015 ASSEMBLY COMMITTEE ON ACCOUNTABILITY AND ADMINISTRATIVE REVIEW Rudy Salas, Chair AB 229 Chang - As Amended April 22, 2015 SUBJECT: State employees: travel reimbursement SUMMARY: Prevents state agencies from prohibiting state employees traveling on official state business from using transportation network companies or lodging in a short-term rental. Specifically, this bill: 1)Requires reimbursements for these necessary and actual expenses to be made consistent with the agency's policies for reimbursement of other lodging and other vehicles for hire. 2)Defines "short-term rental" and considers it a commercial lodging establishment for this section. 3)Defines "transportation network company" as having the same meaning as a specified Public Utilities Code section. 4)Requests the University of California (UC) to adopt travel reimbursement policies consistent with this bill. AB 229 Page 2 EXISTING LAW requires the director of the Department of Human Resources (CalHR) to adopt general rules and regulations that limit the amount, time, and place of expenses and allowances to be paid to officers, employees, experts, and agents of the state while traveling on official state business. FISCAL EFFECT: Unknown COMMENTS: According to the author, the intent of this bill is to ensure state employees can use "sharing economy" services like ride-sharing or home-sharing while traveling on state business. This bill would prevent agencies from prohibiting the reimbursement to traveling state employees for the use of transportation network companies like Uber and Lyft, in which participating drivers transport passengers in their own vehicles. Additionally, this bill would not allow agencies to ban the use of short-term rental arrangements like Airbnb, which allows participants to rent out their homes or rooms in their homes for a specified number of nights. Current CalHR rules as well as memorandums of understanding (MOUs) with employee bargaining units that specify travel reimbursement information do not currently prohibit the use of transportation network companies or short-term rentals for employees traveling on state business. These documents do not name either of these types of services when setting requirements. Instead, rules and MOUs set lodging reimbursement maximum rates by location and require travelers to submit itemized receipts when claiming reimbursements. Rules and MOUs specify that to qualify for reimbursements, lodging must be in commercial lodging establishments. This bill specifies, for purposes of the section added by this bill, that short-term rentals are considered commercial lodging establishments. AB 229 Page 3 This bill also defines a transportation network company to have the same meaning as a Public Utilities code section, which defines the term as an organization that "provides prearranged transportation services for compensation using an online-enabled application or platform to connect passengers with drivers using a personal vehicle." While CalHR rules and MOUs do not specifically mention transportation networks companies, they set requirements for taxi and similar transportation. Currently when state employees use taxis while traveling, depending on their employee group, they are either not required to submit taxi receipts or must only submit them when the ride exceeds $10. This bill also encourages UC to adopt similar travel reimbursement policies as those specified in this bill. REGISTERED SUPPORT / OPPOSITION: Support None on file Opposition None on file AB 229 Page 4 Analysis Prepared by:Scott Herbstman / A. & A.R. / (916) 319-3600