BILL ANALYSIS Ó
AB 1360
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ASSEMBLY THIRD READING
AB
1360 (Ting)
As Amended May 13, 2015
Majority vote
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|Committee |Votes |Ayes |Noes |
| | | | |
| | | | |
|----------------+------+---------------------+---------------------|
|Utilities |14-0 |Rendon, Patterson, | |
| | |Achadjian, Bonilla, | |
| | |Burke, Dahle, | |
| | |Eggman, Cristina | |
| | |Garcia, Hadley, | |
| | |Jones, Quirk, | |
| | |Santiago, Ting, | |
| | |Williams | |
| | | | |
|----------------+------+---------------------+---------------------|
|Privacy |11-0 |Gatto, Wilk, Baker, | |
| | |Calderon, Chang, | |
| | |Chau, Cooper, | |
| | |Dababneh, Dahle, | |
| | |Gordon, Low | |
| | | | |
| | | | |
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SUMMARY: Exempts ridesharing programs operated by transportation
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network companies (TNC) that arrange rides among multiple
passengers who share the ride, in whole or in part, from
transportation charges computed and assessed on charter-party
carriers. Specifically, this bill:
1)Exempts a ridesharing program operated by a TNC that arranges a
ride on a prearranged route among multiple passengers who share
the ride, in whole or in part, from offering passengers charges
computed and assessed on a vehicle mileage or time of use basis,
or on a combination of the two.
2)Specifies that the exemption applies provided that:
a) The vehicle seats no more than seven passengers, including
the driver;
b) The driver is a participating driver, as defined; and
c) The individual fare for each passenger is less than the
fare that would be charged for the same ride to a single
passenger traveling alone.
3)Specifies that TNCs may not use vehicles to provide transit
service or to carry passengers over a fixed route, provide
school pupil transportation services, or provide public
paratransit services.
4)Specifies that the insurance requirement and limitations, as
specified, for a TNC and any participating driver does not
change.
FISCAL EFFECT: Unknown. This bill is keyed non-fiscal by the
Legislative Counsel.
COMMENTS:
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1)Author's Statement: "The primary cause of traffic congestion
originates from nearly 80% of commuters traveling to work alone.
Traffic results in 5.5 billion hours of productivity at a cost
of $818 to the average commuter, with increased congestion
generating nearly 4 billion gallons of excess fuel wasted and 56
billion pounds of greenhouse gasses. This contributes to
California's transportation sector functioning as the greatest
source of pollution, accounting for 40% of the state's
greenhouse gas emissions. TNC's such as Lyft, Uber, and Sidecar
have been extremely innovative in creating models that empower
consumers and allow more ease and access to transportation
alternatives. They have recently started services that allow
riders with similar pick up locations and destinations to share
a driver and carpool for a decreased fare. Shared rides such as
carpooling decrease traffic and congestion, and ultimately cut
pollution."
2)Background: California law regulates different modes of
passenger transportation for compensation, including taxi
services, which are regulated by cities and/or counties, and
charter party carriers (CPC) and passenger stage companies,
which are regulated by the California Public Utilities
Commission (CPUC).
3)What are CPCs? CPCs are services that charter a vehicle, on a
prearranged basis, for the exclusive use of an individual or
group. Charges are based on the mileage, or time of use, or a
combination of both. The CPUC does not regulate the level of
charges for CPCs. Types of CPCs include limos, tour buses,
sightseeing services, and charter and party buses.
4)What are TNCs? Beginning as early as 2009, a new model of
transportation service began springing up in cities across the
United States. Known as TNCs, these companies work by allowing
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patrons to prearrange transportation services through an online
application on their smartphone or computer. Patrons would
request a ride to a predetermined location and the application
would connect them with a TNC driver. Payment is processed
through the application so that no physical financial
transaction occurs during the trip itself between the patron and
the driver. The TNC takes a commission on each trip.
Although TNCs do not neatly fall into the conventional
definition of either taxis or limousines, the CPUC does believe
that TNCS are currently providing passenger's transportation for
compensation, and reasonably concludes that TNCs are CPCs,
therefore, falling under the CPUC's existing jurisdiction over
these services.
5)CPUC Letter to TNCs: In September 2014, the CPUC sent letters
to the three major TNCs, Uber, Lyft, and Sidecar, regarding
their intent to add carpooling service to their transportation
service. The CPUC stated that this model is in violation of
existing law that prohibits CPCs from calculating charges on an
individual-fare basis. The CPUC found that CPCs "cannot change
an individual fare when carrying multiple persons in a vehicle,
and therefore, a person chartering a [CPC] vehicle must have
exclusive use of the vehicle."
This bill would permit a rideshare program operated by a TNC to
charge individual fares, provided that the individual fare for
each passenger is less than the fare that would be charged for
the same ride to a single passenger traveling alone.
Analysis Prepared by:
Edmond Cheung / U. & C. / (916) 319-2083 FN:
0000386
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