BILL ANALYSIS Ó
AB 2763
Page 1
ASSEMBLY THIRD READING
AB
2763 (Gatto)
As Amended April 18, 2016
Majority vote
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|Committee |Votes|Ayes |Noes |
| | | | |
| | | | |
| | | | |
|----------------+-----+----------------------+--------------------|
|Utilities |14-0 |Gatto, Patterson, | |
| | |Burke, Chávez, Dahle, | |
| | |Eggman, Cristina | |
| | |Garcia, | |
| | | | |
| | | | |
| | |Eduardo Garcia, | |
| | |Hadley, Obernolte, | |
| | |Quirk, Santiago, | |
| | |Ting, Williams | |
| | | | |
| | | | |
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SUMMARY: Defines "personal vehicle" relating to Transportation
Network Companies (TNCs), to mean a vehicle that is used by a
participating driver to provide prearranged transportation
services for compensation, is owned, leased, rented, or
otherwise authorized for use for any period of time by the
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participating driver, meets all inspection and other safety
requirements imposed by the California Public Utilities
Commission (CPUC), and is not a taxicab or limousine.
FISCAL EFFECT: Unknown. This bill is keyed non-fiscal by the
Legislative Counsel.
COMMENTS:
1)Author's Statement: "The phrase 'personal vehicle' was
originally used in the CPUC's Phase I decision addressing
[TNCs] in 2013, D. 13-09-045. That decision established TNCs
as a subset of Charter Party Carriers [CPCs]. D.13-09-045 did
not define personal vehicle. Since 2013, various options have
arisen to supply a potential driver with a vehicle. These
options include traditional 'ownership,' and leases and rental
agreements of various lengths. This bill would not change ANY
rules dictating the qualifications or drivers, necessary
insurance, or minimum standard for vehicle safety or the
ability of the [CPUC] to amend those regulations to reflect
the latest trends in the industry ? This bill will provide a
definition of a 'personal vehicle' under the regulations
governing eligibility to participate as a driver partner with
[TNCs]."
2)Background: California Constitution, Article XII establishes
the CPUC and grants it the authority to regulate public
utilities. In addition, the CPUC has more limited authority
over other corporations, including railroads, rail transit,
and CPCs, among others. Beginning as early as 2009, a new
model of transportation known as TNCs allowed patrons to
prearrange transportation services through an online
application on their smartphone or computer. Although TNCs do
not neatly fall into the conventional definition of a CPC, the
CPUC believes that TNCs are currently providing passengers
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transportation for compensation, and reasonably concludes that
TNCs are CPCs, therefore, falling under the CPUC's existing
jurisdiction over such services.
3)Existing TNC Requirements: In 2014, the Legislature passed AB
2293 (Bonilla), Chapter 389, which requires TNCs or TNC driver
to maintain primary liability insurance coverage at the
following levels:
a) One million dollars for death, personal injury, and
property damage from the moment a participating driver
accepts a ride request until the driver completes the
transaction.
b) One million dollars uninsured and underinsured motorist
coverage from the moment a passenger enters the vehicle of
a participating drive until the passenger exists the
vehicle.
c) Fifty thousand dollars for death and personal injury per
person, $100,000 for death and personal injury per
incident, and $30,000 for property damage from the moment a
participating driver logs on until the driver accepts a
request, and from the moment the driver completes the
transaction, or the ride is complete, whichever is later,
until the driver either accepts another ride request or
logs off the TNC application.
CPUC regulations also require TNCs to run criminal background
checks on all hired drivers. In addition, in order to
participate as a TNC driver, TNCs also require their driver's
to register their vehicles and to meet certain vehicle
requirements.
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TNCs differ from traditional taxi and public transportation
services in that they provide prearranged transportation
services and that the TNCs do not own their own fleet of
vehicles. Instead, all vehicles used through a TNC are
personal vehicles of a participating driver. Although TNCs
can direct potential drivers to various options on how to
obtain a personal vehicle, such vehicles are ultimately
personally authorized by the driver to be used for TNC
purposes as long as it meets all insurance, safety, and
vehicle requirements to operate under a TNC.
This bill provides a definition for a "personal vehicle" used
by a driver as part of a TNC. This bill defines "personal
vehicle" as a vehicle that is used by a participating driver
to provide prearranged transportation services for
compensation, is owned, leased, rented, or otherwise
authorized for use for any period of time by the participating
driver, meets all inspection and other safety requirements
imposed by the CPUC, and is not a taxicab or limousine.
Analysis Prepared by:
Edmond Cheung / U. & C. / (916) 319-2083 FN:
0002830