Amended in Senate August 2, 2016

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 begin delete conduct comprehensive criminal background checks end delete begin insert conduct, or have a 3rd party conduct, a local and national criminal background check end insert for each participating begin delete driver that include local, state, and federal law enforcement records. end delete begin insert driver, as specified. end insert The bill would prohibit a transportation network company from contracting with, employing, or retaining a driver if he or she begin delete is required by any law to register as a sex offender or end delete begin insert is currently registered on the United States Department of Justice National Sex Offender Public Website, end insert has been convicted of any violent felony, begin delete sexual offense, nonfelony violent crime, identity theft, act of fraud, act of terror, end delete begin insert as defined, end insert or, within the previous 7 years, begin delete of any crime involving property damage, theft, end delete begin insert has been convicted of any misdemeanor assault or battery, any domestic violence offense, end insert 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 than begin delete $500 end delete begin insert $1,000 end insert nor more than begin delete $50,000 end delete begin insert $5,000 end insert 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.

(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.

(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
begin delete conduct comprehensive criminal background checks end delete begin insert conduct, or
have a third party conduct, a local and national criminal
background check end insert for each participating driver that shall include

begin delete local, state, and federal law enforcement records. end delete begin insert both of the
following: end insert

begin insert

(A) A multistate and multijurisdiction criminal records locator
or other similar commercial nationwide database with validation.

end insert begin insert

(B) A search of the United States Department of Justice National
Sex Offender Public Website.

end insert

(2) A transportation network company shall not contract with,
employ, or retain a driver if he or she begin delete is required by any law to
register as a sex offender or end delete begin insert is currently registered on the United
States Department of Justice National Sex Offender Public Website, end insert
has been convicted of begin delete any of the following: any end delete begin insert a end insert violent felony, begin delete sexual offense, nonfelony violent crime, identity theft, act of fraud,
act of terror, end delete begin insert as defined in Section 667.5 of the Penal Code, end insert or,
within the previous seven years, begin delete any crime involving property
damage, theft, end delete begin insert has been convicted of any misdemeanor assault or
battery, any domestic violence offense, end insert or driving under the
influence of alcohol or drugs.

begin insert

(3) Nothing in this section shall be interpreted to prevent a
transportation network company from imposing additional
standards.

end insert

(b) A transportation network company that violates, or fails to
comply with, this section is subject to a penalty of not less than
begin delete five hundred dollars ($500) end delete begin insert one thousand dollars ($1,000) end insert nor
more than begin delete fifty end delete begin insert five end insert thousand dollars begin delete ($50,000) end delete begin insert ($5,000) end insert 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.