Amended in Senate June 30, 2016

Amended in Senate July 14, 2015

Amended in Assembly April 20, 2015

California Legislature—2015–16 Regular Session

Assembly BillNo. 828


Introduced by Assembly Members Low and Chang

(Coauthor: Assembly Member Bonilla)

February 26, 2015


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

LEGISLATIVE COUNSEL’S DIGEST

AB 828, as amended, Low. Vehicles: transportation services.

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

This bill would require the commission to conduct an investigation to consider whether existing statutes and regulations relating tobegin insert end insertbegin insertfor-hire passengerend insert transportation services serve the public interest, encourage innovation, and create a fair and competitive transportation marketbegin delete betweenend deletebegin insert amongend insert 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.

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, until January 1, 2018, 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: yes. State-mandated local program: no.

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

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SECTION 1.  

Section 315.5 is added to the Public Utilities
2Code
, to read:

3

315.5.  

(a) The Public Utilities Commission shall conduct an
4investigation to consider whether existing statutes and regulations
5relating tobegin insert end insertbegin insertfor-hire passengerend insert transportation services serve the
6public interest, encourage innovation, and create a fair and
7competitive transportation marketbegin delete betweenend deletebegin insert amongend insert companies that
8provide regulated transportation services, including, but not limited
9 to, taxi services, transportation network companies, other
10charter-party carriers of passengers, and passenger stages. The
11commission shall consult with the Department of Motor Vehicles,
12local governments, and other entities responsible for the regulation
13of transportation services, as the commission deems necessary.
14The commission shall complete the investigation and report its
15conclusions and recommendations to the Legislature on or before
16January 1, 2017.

17(b) The report required by this section shall be submitted in
18compliance with Section 9795 of the Government Code.

19(c) This section shall remain in effect only until January 1, 2018,
20and as of that date is repealed, unless a later enacted statute, that
21is enacted before January 1, 2018, deletes or extends that date.

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SEC. 2.  

Section 260 of the Vehicle Code is amended to read:

2

260.  

(a) A “commercial vehicle” is a motor vehicle of a type
3required to be registered under this code used or maintained for
4the transportation of persons for hire, compensation, or profit or
5designed, used, or maintained primarily for the transportation of
6property.

7(b) Passenger vehicles and house cars that are not used for the
8transportation of persons for hire, compensation, or profit are not
9commercial vehicles. This subdivision does not apply to Chapter
104 (commencing with Section 6700) of Division 3.

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

12(d) (1) A motor vehicle operated in connection with a
13transportation network company, as defined in Section 5431 of
14the Public Utilities Code, is not a commercial vehicle if all of the
15following conditions are satisfied:

16(A) The vehicle is operated for passenger service only and is a
17passenger vehicle limited to seven passengers, not including the
18driver.

19(B) The vehicle is operated exclusively by the person to whom
20the vehicle is registered or insured.

21(C) The vehicle is not a paratransit vehicle.

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

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

24(2) This subdivision does not change the insurance requirements
25established under Section 5433 of the Public Utilities Code for a
26transportation network company and any participating driver. This
27subdivision does not change the insurance limitations set forth in
28Section 5434 of the Public Utilities Code.

29(e) The definition of a commercial vehicle in this section does
30not apply to Chapter 7 (commencing with Section 15200) of
31Division 6.

32(f) This section shall remain in effect only until January 1, 2018,
33and as of that date is repealed, unless a later enacted statute, that
34is enacted before January 1, 2018, deletes or extends that date.

35

SEC. 3.  

Section 260 is added to the Vehicle Code, to read:

36

260.  

(a) A “commercial vehicle” is a motor vehicle of a type
37required to be registered under this code used or maintained for
38the transportation of persons for hire, compensation, or profit or
39designed, used, or maintained primarily for the transportation of
40property.

P4    1(b) Passenger vehicles and house cars that are not used for the
2transportation of persons for hire, compensation, or profit are not
3commercial vehicles. This subdivision shall not apply to Chapter
44 (commencing with Section 6700) of Division 3.

5(c) Any vanpool vehicle is not a commercial vehicle.

6(d) The definition of a commercial vehicle in this section does
7not apply to Chapter 7 (commencing with Section 15200) of
8Division 6.

begin insert

9
(e) This section shall become operative on January 1, 2018.

end insert


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