Amended in Senate August 19, 2016

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 conduct, or have a 3rd party conduct, a local and national criminal background check for each participating driver, as specified. The bill would prohibit a transportation network company from contracting with, employing, or retaining a driver if he or begin delete she end delete begin insert she, among other things, end insert is currently registered on the United States Department of Justice National Sex Offender Public Website, has been convicted of any begin insert of certain terrorism-related felonies or a end insert violent felony, as defined, or, within the previous 7 years, has been convicted of any misdemeanor assault or battery, any domestic violence offense, begin delete or end delete driving under the influence of alcohol or begin delete drugs. end delete begin insert drugs, or any of a specified list of felonies. 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 than $1,000 nor more than $5,000 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.

(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
conduct, or have a third party conduct, a local and national criminal
background check for each participating driver that shall include
both of the following:

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

(B) A search of the United States Department of Justice National
Sex Offender Public begin delete Website. end delete begin insert Web site. end insert

(2) A transportation network company shall not contract with,
employ, or retain a driver if he or she begin delete is end delete begin insert meets either of the
following criteria: end insert

begin insert (A) end insert begin insert   end insert begin insert Is end insert currently registered on the United States Department of
Justice National Sex Offender Public begin delete Website, has end delete begin insert Web site. end insert

begin insert (B) end insert begin insert   end insert begin insert Has end insert been convicted of begin delete a end delete begin insert any of the following offenses: end insert

begin insert (i) end insert begin insert   end insert begin insert A end insert violent felony, as defined in Section 667.5 of the Penal

begin delete Code, or, within end delete begin insert Code. end insert

begin insert

(ii) A violation of Section 11413, 11418, 11418.5, or 11419 of
the Penal Code.

end insert

begin insert (3) end insert begin insert   end insert begin insert A transportation network company shall not contract with,
employ, or retain a driver if he or she has been convicted of any
of the following offenses within end insert the previous seven begin delete years, has been
convicted of any misdemeanor end delete begin insert years. end insert

begin insert (A) end insert begin insert   end insert begin insert Misdemeanor end insert assault or begin delete battery, any domestic end delete begin insert battery. end insert

begin insert (B) end insert begin insert   end insert begin insert A end insert begin insert domestic end insert violence begin delete offense, or driving under the influence
of alcohol or drugs. end delete begin insert offense. end insert

begin insert

(C) Driving under the influence of alcohol or drugs.

end insert begin insert

(D) A felony violation of Section 18540 of the Elections Code,
or of Section 67, 68, 85, 86, 92, 93, 137, 138, 165, 518, 530, or
18500 of, subdivision (a) of Section 484 of, subdivision (a) of
Section 487 of, or subdivision (b) of Section 25540 of, the Penal
Code.

end insert begin insert

(4) Paragraphs (2) and (3) shall apply regarding a conviction
of any offense committed in another jurisdiction that includes all
of the elements of any of the offenses described or defined in those
paragraphs.

end insert begin delete

(3)

end delete

begin insert (5) end insert  Nothing in this section shall be interpreted to prevent a
transportation network company from imposing additional
standards.

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