Amended in Senate July 14, 2015

Amended in Assembly April 20, 2015

California Legislature—2015–16 Regular Session

Assembly Bill No. 828

Introduced by Assembly Members Low and Chang

(Coauthor: Assembly Member Bonilla)

February 26, 2015

An act to begin insert add and repeal Section 315.5 of the Public Utilities Code, and to end insert amend begin insert , repeal, and add end insert Section 260 of the Vehicle Code, relating to vehicles.

LEGISLATIVE COUNSEL’S DIGEST

AB 828, as amended, Low. Vehicles: transportation begin delete network companies. end delete begin insert services. end insert

begin insert

Existing law establishes the Public Utilities Commission and designates the duties of the commission, including regulating specified transportation carriers.

end insert begin insert

This bill would require the commission to conduct an investigation to consider whether existing statutes and regulations relating to transportation services serve the public interest, encourage innovation, and create a fair and competitive transportation market between companies that provide regulated transportation services. The bill would require the commission to complete the investigation and report its conclusions and recommendations to the Legislature on or before January 1, 2017.

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Existing law defines “commercial vehicle,” for the purposes of the Vehicle Code, as a motor vehicle of a type required to be registered under that code that is used or maintained for the transportation of persons for hire, compensation, or profit or designed, used, or maintained primarily for the transportation of property. Existing law, the Passenger Charter-party Carriers’ Act, provides for the regulation of transportation network companies by the Public Utilities Commission. Existing law defines a “transportation network company” to mean an organization, including, but not limited to, a corporation, limited liability company, partnership, sole proprietor, or any other entity, operating in California that provides prearranged transportation services for compensation using an online-enabled application or platform to connect passengers with drivers using a personal vehicle.

This bill begin insert , until January 1, 2018, end insert would exclude from the definition of “commercial vehicle,” for purposes of the Vehicle Code, any motor vehicle operated in connection with a transportation network company, if specified conditions are satisfied.

Vote: majority. Appropriation: no. Fiscal committee:  begin delete no end delete begin insert yes end insert . State-mandated local program: no.

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

begin insert

begin insert SECTION 1. end insert   

end insert

begin insert Section 315.5 is added to the end insert begin insert Public Utilities
Code end insert begin insert , to read: end insert

begin insert

begin insert 315.5. end insert   

(a) The Public Utilities Commission shall conduct an
investigation to consider whether existing statutes and regulations
relating to transportation services serve the public interest,
encourage innovation, and create a fair and competitive
transportation market between companies that provide regulated
transportation services, including, but not limited to, taxi services,
transportation network companies, other charter-party carriers
of passengers, and passenger stages. The commission shall consult
with the Department of Motor Vehicles, local governments, and
other entities responsible for the regulation of transportation
services, as the commission deems necessary. The commission
shall complete the investigation and report its conclusions and
recommendations to the Legislature on or before January 1, 2017.

(b) The report required by this section shall be submitted in
compliance with Section 9795 of the Government Code.

(c) This section shall remain in effect only until January 1, 2018,
and as of that date is repealed, unless a later enacted statute, that
is enacted before January 1, 2018, deletes or extends that date.

end insert

begin delete SECTION 1. end delete
begin insert SEC. 2. end insert   

Section 260 of the Vehicle Code is amended to read:

260.  

(a) 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.

(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 does not apply to Chapter
4 (commencing with Section 6700) of Division 3.

(c) A vanpool vehicle is not a commercial vehicle.

(d) (1) A motor vehicle operated in connection with a
transportation network company, as defined in Section 5431 of
the Public Utilities Code, is not a commercial vehicle if all of the
following conditions are satisfied:

(A) The vehicle is operated for passenger service only and is a
passenger vehicle limited to seven passengers, not including the
driver.

(B) The vehicle is operated exclusively by the person to whom
the vehicle is registered or insured.

(C) The vehicle is not a paratransit vehicle.

(D) The vehicle is not operated for public transit services.

(E) The vehicle is not operated for school bus services.

(2) This subdivision does not change the insurance requirements
established under Section 5433 of the Public Utilities Code for a
transportation network company and any participating driver. This
subdivision does not change the insurance limitations set forth in
Section 5434 of the Public Utilities Code.

(e) The definition of a commercial vehicle in this section does
not apply to Chapter 7 (commencing with Section 15200) of
Division 6.

begin insert

(f) This section shall remain in effect only until January 1, 2018,
and as of that date is repealed, unless a later enacted statute, that
is enacted before January 1, 2018, deletes or extends that date.

end insert

begin insert

begin insert SEC. 3. end insert   

end insert

begin insert Section 260 is added to the end insert begin insert Vehicle Code end insert begin insert , to read: end insert

begin insert

begin insert 260. end insert   

(a) 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.

(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.

end insert