BILL NUMBER: AB 1289	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 21, 2016
	AMENDED IN SENATE  SEPTEMBER 3, 2015
	AMENDED IN ASSEMBLY  APRIL 16, 2015
	AMENDED IN ASSEMBLY  MARCH 26, 2015

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  continuing to
retain   retaining  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,  driving
under the influence offense, non-felony   nonfelony
 violent crime,  identity theft,  act of fraud, act of
terror,  or   or, within the previous 7 years,
of any  crime involving property  damage or theft.
  damage, theft, or driving under the influence of
alcohol or drugs. 
   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  that   than
 $500 nor more than $50,000 for each offense. 
   (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.  
   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.  
   (2) 
    (3)  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. 
   (3) 
    (4)  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  continue to  retain a driver if he or
she is required by any law to register as a sex offender or has been
convicted of any  of the following: any  violent felony,
sexual offense,  driving under the influence offense,
non-felony   nonfelony  violent crime, 
identity theft,  act of fraud, act of terror,  or
  or, within the previous seven years,   any
 crime involving property  damage or theft. 
 damage, theft, or driving under the influence of alcohol or
drugs. 
   (b) A transportation network company that violates, or fails to
comply with, this section is subject to a penalty of not less
 that   than  five hundred dollars ($500)
nor more than fifty thousand dollars ($50,000) for each offense. 

   (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.  
   (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). 
  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.