BILL ANALYSIS Ó
AB 1422
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Date of Hearing: May 27, 2015
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Jimmy Gomez, Chair
AB
1422 (Cooper) - As Amended April 22, 2015
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|Policy |Utilities and Commerce |Vote:|14 - 0 |
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| |Transportation | |16 - 0 |
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Urgency: No State Mandated Local Program: YesReimbursable:
No
SUMMARY:
This bill requires transportation network companies (TNCs) to
participate in the DMV's employer pull-notice system (EPN).
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FISCAL EFFECT:
There are likely over 150,000 TNC drivers in California who
would have to be enrolled in the EPN by their respective TNCs.
(Uber alone indicates that it has more than 100,000 active
drivers in the state.) The DMV's costs for this enrollment will
be covered by a $5 per enrollee fee. Likewise, DMV's costs for
providing reports to a TNC following any moving violation by
their drivers will be covered by a $1 fee per report. DMV
indicates this additional workload can be managed within
existing resources.
COMMENTS:
1)Background. TNCs allow patrons to prearrange transportation
services through an online application on their smartphone or
computer. Patrons request a ride to a predetermined location,
and the application connects 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. Under this model, drivers are
considered independent contractors and TNCs take a commission
on each trip.
In a September 2013 decision, the PUC, which regulates various
transportation services, began regulating TNCs by creating a
distinct new category of charter-party carries (CPCs). The
decision requires TNCs to obtain a permit from the PUC,
conduct criminal background checks on drivers, check driver's
records, establish a driver training program, implement a
zero-tolerance policy on drugs and alcohol, conduct vehicle
inspections, and obtain authorization from airports before
conducting any operations on or into airport property. The
commission is currently in the process of rolling out the
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second phase of this decision, which will include an
evaluation of the original set of regulations and also
consider any modifications to existing regulations relative to
other CPC categories.
2)Purpose. DMV's EPN was established as a voluntary program in
1983 to provide employers and regulatory agencies with a means
of providing driver safety through the ongoing review of
driver's records. The current EPN system is designed to
automatically generate a report of a driver's record and
electronically send the report to the employer under specific
circumstances including: upon enrollment of a driver, annually
from the date of employment, or whenever a driver commits
certain moving violations. Approximately 1.6 million
commercial drivers are currently enrolled in the EPN system.
Due to their status as independent contractors, TNC drivers
are not subject to the same requirement.
AB 1422 requires TNCs to enroll their drivers into the EPN
system. The author notes that AB 1422 "promotes driver and
public safety by authorizing TNCs to participate in the DMV
pull notice program and helps improve the safety of passengers
utilizing these transportation services."
3)Related Legislation. AB 24 (Nazarian), also on today's
committee agenda, also requires TNCs to participate in the EPN
and additionally requires TNCs to register their drivers with
the PUC and to provide a mandatory controlled substance and
alcohol testing certification program.
Analysis Prepared by:Chuck Nicol / APPR. / (916)
319-2081
AB 1422
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