Amended in Assembly March 28, 2014

California Legislature—2013–14 Regular Session

Assembly Bill No. 2068

Introduced by Assembly Member Nazarian

February 20, 2014

An act to begin insert add Chapter 8.5 (commencing with Section 5430) to Division 2 of the Public Utilities Code, and to end insert amend Section begin delete 40833 end delete begin insert 260 end insert of the Vehicle Code, relating to begin delete vehicles end delete begin insert transportation end insert .

LEGISLATIVE COUNSEL’S DIGEST

AB 2068, as amended, Nazarian. begin delete Vehicles: civil actions: evidence. end delete begin insert Transportation network companies: end insert begin insert operating requirements. end insert

begin insert

The Passenger Charter-party Carriers’ Act, with certain exceptions, prohibits a charter-party carrier of passengers from engaging in transportation services subject to regulation by the Public Utilities Commission without obtaining a specified certificate or permit, as appropriate, from the commission, and imposes various other requirements. Existing law establishes various exclusions to the act. Pursuant to existing law, the commission has adopted rules and regulations relating to public safety risks in the operation of transportation network companies. Existing regulations define a transportation network company as an organization that provides prearranged transportation services for compensation using an online-enabled platform to connect passengers with drivers using their personal vehicles.

end insert begin insert

Existing regulations of the commission require, among other things, a transportation network company to (1) obtain an operating permit from the commission, (2) conduct a criminal background check of each driver, (3) establish a driver training program, (4) adopt a zero-tolerance policy on drugs and alcohol, (5) acquire a commercial liability policy of at least $1,000,000 per-incident coverage for incidents involving transportation network company vehicles and drivers in transit to or during a transportation network company trip, (6) carry workers’ compensation insurance for the company’s employees, and (7) conduct a 19-point motor vehicle inspection of the vehicles operated by drivers under contract with the company.

end insert begin insert

This bill would more broadly define “transportation network company” by excluding the requirement that a transportation network company trip be prearranged and would require the commission to adopt additional rules and regulations that would require a transportation network company to meet specified requirements that include, among other things, participation in the Employer Pull Notice Program administered by the Department of Motor Vehicles, registration of the vehicles of its participating drivers as commercial vehicles, and placing permanent markings on the rear bumper of each of those vehicles that can be easily seen by the driving public and law enforcement agencies. The bill would authorize a city, county, or a city and county to adopt standards and requirements for clean fuel or clean air vehicles operated by a transportation network company and concerning the number of transportation network company vehicles that may operate in its jurisdiction. The bill would also require the Department of Food and Agriculture to establish a process for approving and sealing online-enabled applications or platforms utilized by a transportation network company.

end insert begin delete

Existing law requires that specified accident reports, certain actions taken by the Department of Motor Vehicles, the findings, if any, of the department upon which an action at law is based because of an accident, and specified security required to be filed under the Vehicle Code, not be referred to in any way, or be evidence of the negligence or due care of any party, at the trial of any action at law to recover damages.

end delete begin delete

This bill would make technical, nonsubstantive changes to these provisions.

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Vote: majority. Appropriation: no. Fiscal committee:  begin delete no end delete begin insert yes end insert . State-mandated local program: no.

The people of the State of California do enact as follows:

begin insert

begin insert SECTION end insert begin insert 1 end insert begin insert . end insert   

end insert

begin insert Chapter 8.5 (commencing with Section 5430) is
added to Division 2 of the end insert begin insert Public Utilities Code end insert begin insert , to read: end insert

begin insert

 

Chapter   begin insert 8.5. end insert Transportation Network Companies

 

begin insert 5430. end insert   

As used in this chapter, a “transportation network
company” is an organization, including, but not limited to, a
corporation, partnership, sole proprietor, operating in this state
that provides transportation services for compensation using an
online-enabled application or platform to connect passengers with
drivers using their personal vehicles.

begin insert 5432. end insert   

The commission shall adopt rules and regulations that
require a transportation network company to do all of the
following:

(a) Adopt a drug and alcohol testing program that meets the
requirements of Section 53075.5 of the Government Code.

(b) Adopt a driver background check program that meets the
requirements of Section 12517.3 of the Vehicle Code.

(c) Participate in the Employer Pull Notice (EPN) Program
administered by the Department of Motor Vehicles.

(d) Submit its online-enabled application or platform along
with the algorithms used to measure the cost of trips to the
Department of Food and Agriculture for approval and sealing by
the department to determine that the online-enabled application
or platform and mobile electronic devices used by the
transportation network company and its participating drivers are
charging the correct amount for each trip.

(e) Ensure that the vehicles of its participating drivers are
registered as commercial vehicles.

(f) Place permanent markings on the rear bumper of each
vehicle providing transportation network company services that
can be easily seen by the driving public and law enforcement
agencies.

begin insert 5433. end insert   

The Department of Food and Agriculture shall establish
a process for approving and sealing online-enabled applications
or platforms utilized by a transportation network company.

begin insert 5434. end insert   

(a) A city, county, or city and county may adopt
standards and requirements for clean fuel or clean air vehicles
operated by a transportation network company.

(b) A city, county, or city and county may adopt standards and
requirements concerning the number of transportation network
company vehicles that may operate in its jurisdiction.

end insert

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert Section 260 of the end insert begin insert Vehicle Code end insert begin insert is amended to read: end insert

260.  

(a)  begin insert (1) end insert begin insert   end insert A “commercial vehicle” is a motor vehicle of a
type required to be registered under this code used or maintained
for the transportation of persons for hire, compensation, or profit
or designed, used, or maintained primarily for the transportation
of property.

begin insert

(2) A passenger vehicle or passenger transportation vehicle
operated for compensation in connection with a transportation
network company is a commercial vehicle.

end insert

(b) Passenger vehicles and house cars that are not used for the
transportation of persons for hire, compensation, or profit are not
commercial vehicles. This subdivision shall not apply to Chapter
4 (commencing with Section 6700) of Division 3.

(c) Any vanpool vehicle is not a commercial vehicle.

(d) The definition of a commercial vehicle in this section does
not apply to Chapter 7 (commencing with Section 15200) of
Division 6.

begin delete

SECTION 1.  

Section 40833 of the Vehicle Code is amended
to read:

40833.  

The report required by Section 16000, 16001, 16002,
or 16003, the action taken by the department pursuant to Chapter
1 (commencing with Section 16000) of Division 7, the findings,
if any, of the department upon which an action is based, or the
security filed as provided in that chapter shall not be referred to
in any way, or be evidence of the negligence or due care of a party,
at the trial of any action at law to recover damages.

end delete