Amended in Senate June 21, 2016

Amended in Senate September 3, 2015

Amended in Assembly April 16, 2015

Amended in Assembly March 26, 2015

California Legislature—2015–16 Regular Session

Assembly Bill No. 1289

Introduced by Assembly Member Cooper

February 27, 2015

An act to add Section 5445.2 to the Public Utilities Code, relating to transportation.

LEGISLATIVE COUNSEL’S DIGEST

AB 1289, as amended, Cooper. Transportation network companies: participating drivers: penalties.

(1) The Passenger Charter-party Carriers’ Act defines a transportation network company as an organization, whether a corporation, partnership, sole proprietor, or other form, operating in California that provides prearranged transportation services for compensation using an online-enabled platform to connect passengers with drivers using their personal vehicles. A transportation network company is subject to regulation by the Public Utilities Commission, which requires, among other things, a criminal background check of each participating driver. A transportation network company is also required to have a specified certificate or permit, as appropriate, from the commission, and is subject to various other requirements. A violation of the act is generally a misdemeanor and subject to a fine of not less than $1,000 and not more than $5,000 or by imprisonment in a county jail for not more than 3 months, or by both that fine and imprisonment.

This bill would require a transportation network company to conduct comprehensive criminal background checks for each participating driver that include local, state, and federal law enforcement records. The bill would prohibit a transportation network company from contracting with, employing, or begin delete continuing to retain end delete begin insert retaining end insert a driver if he or she is required by any law to register as a sex offender or has been convicted of any violent felony, sexual offense, begin delete driving under the influence offense, non-felony end delete begin insert nonfelony end insert violent crime, begin insert identity theft, end insert act of fraud, act of terror, begin delete or end delete begin insert or, within the previous 7 years, of any end insert crime involving property begin delete damage or theft. end delete begin insert damage, theft, or driving under the influence of alcohol or drugs. end insert

The bill would additionally provide that a transportation network company that violates, or fails to comply with, its provisions is subject to a penalty of not less begin delete that end delete begin insert than end insert $500 nor more than $50,000 for each offense.

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(2) Existing law provides that an investigative consumer reporting agency shall furnish an investigative consumer report only under specified circumstances and, except as specified, existing law also prohibits an investigative consumer reporting agency from making or furnishing any investigative consumer report containing certain items of information, including, among other things, records of an arrest, indictment, information, misdemeanor complaint, or conviction of a crime that, from the date of disposition, release, or parole, antedates the report by more than 7 years.

end insert begin insert

This bill would, notwithstanding these provisions, authorize an investigative consumer reporting agency to furnish an investigative consumer report to a transportation network company about a person seeking to become a participating driver, regardless of whether the participating driver is to be an employee or an independent contractor of the transportation network company. The bill would provide that the prohibition on including the criminal history information referenced above in an investigative consumer report does not apply to a report furnished to a transportation network company under these provisions.

end insert begin delete

(2)

end delete

begin insert (3) end insert  Because a violation of the act is a crime, and this bill would expand the scope of the act, this bill would impose a state-mandated local program.

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(3)

end delete

begin insert (4) end insert  The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

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

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

SECTION 1.  

Section 5445.2 is added to the Public Utilities
Code, to read:

5445.2.  

(a) (1) A transportation network company shall
conduct comprehensive criminal background checks for each
participating driver that shall include local, state, and federal law
enforcement records.

(2) A transportation network company shall not contract with,
employ, or begin delete continue to end delete retain a driver if he or she is required by
any law to register as a sex offender or has been convicted of any
begin insert of the following: any end insert violent felony, sexual offense, begin delete driving under
the influence offense, non-felony end delete begin insert nonfelony end insert violent crime, begin insert identity
theft, end insert act of fraud, act of terror, begin delete or end delete begin insert or, within the previous seven
years, end insert begin insert any end insert crime involving property begin delete damage or theft. end delete begin insert damage,
theft, or driving under the influence of alcohol or drugs. end insert

(b) A transportation network company that violates, or fails to
comply with, this section is subject to a penalty of not less begin delete that end delete
begin insert than end insert five hundred dollars ($500) nor more than fifty thousand
dollars ($50,000) for each offense.

begin insert

(c) (1) Notwithstanding Section 1786.12 of the Civil Code, an
investigative consumer reporting agency may furnish an
investigative consumer report to a transportation network company
about a person seeking to become a participating driver, regardless
of whether the participating driver is to be an employee or an
independent contractor of the transportation network company.

end insert begin insert

(2) Paragraph (7) of subdivision (a) of Section 1786.18 of the
Civil Code shall not apply to an investigative consumer report
furnished to a transportation network company pursuant to
paragraph (1).

end insert

SEC. 2.  

No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of
the Government Code, or changes the definition of a crime within
the meaning of Section 6 of Article XIII B of the California
Constitution.