Amended in Assembly April 21, 2014

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 delete add Chapter 8.5 (commencing with Section 5430) to Division 2 end delete begin insert amend Sections 5360 and 5391 end insert of the Public Utilities Code, begin delete and to amend Section 260 of the Vehicle Code, end delete relating to transportation.

LEGISLATIVE COUNSEL’S DIGEST

AB 2068, as amended, Nazarian. begin delete Transportation network companies: operating requirements. end delete begin insert Charter-party carriers of passengers. end 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 begin delete has adopted rules and regulations end delete begin insert rendered a decision end insert relating to public safety risks in the operation of transportation network begin delete companies. Existing regulations define end delete begin insert companies and defined end insert 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.

begin insert

This bill would specifically include within the definition of charter-party carrier of passengers a person that uses an online-enabled application or platform to connect passengers with drivers.

end insert begin insert

Existing law requires the commission to require charter-party carriers of passengers to procure and continue in effect adequate assurances of protection against liability, as specified.

end insert begin insert

This bill would specify that the assurances against protection against liability shall be primary.

end insert begin insert

Existing law provides that a violation of the provisions governing charter-party carriers of passengers and of associated regulations adopted by the commission is a crime.

end insert begin insert

This bill would revise the definition of a crime, thereby imposing a state-mandated local program.

end insert begin insert

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.

end insert begin insert

This bill would provide that no reimbursement is required by this act for a specified reason.

end insert begin delete

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 delete begin delete

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 delete

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

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

begin insert

begin insert SECTION 1. end insert   

end insert

begin insert Section 5360 of the end insert begin insert Public Utilities Code end insert begin insert is
amended to read: end insert

5360.  

Subject to the exclusions of Section 5353, “charter-party
carrier of passengers” means every person engaged in the
transportation of persons by motor vehicle for compensation,
whether in common or contract carriage, over any public highway
in this state begin insert , and includes a person that uses an online-enabled
application or platform to connect passengers with drivers end insert .
“Charter-party carrier of passengers” includes any person,
corporation, or other entity engaged in the provision of a hired
driver service when a rented motor vehicle is being operated by a
hired driver.

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert Section 5391 of the end insert begin insert Public Utilities Code end insert begin insert is amended
to read: end insert

5391.  

The commission shall, in granting permits or a certificate
pursuant to this chapter, require the charter-party carrier of
passengers to procure, and to continue in effect during the life of
the permit or certificate, adequate protection against liability
imposed by law upon the charter-party carrier of passengers for
the payment of damages for personal bodily injuries, including
death resulting therefrom, protection against a total liability of the
charter-party carrier of passengers on account of bodily injuries
to, or death of, more than one person as a result of any one accident,
and protection against damage or destruction of property. begin insert The
requirements for such assurances of protection against liability
shall be primary. end insert The minimum requirements for such assurances
of protection against liability shall not be less than the requirements
which are applicable to operations conducted under certificates of
public convenience and necessity issued pursuant to the provisions
of Article 2 (commencing with Section begin delete 1031), end delete begin insert 1031) of end insert Chapter
begin delete 5, end delete begin insert 5 of end insert Part begin delete 1, end delete begin insert 1 of end insert Division 1, begin delete of this code, end delete and the rules and
regulations prescribed pursuant thereto shall apply to charter-party
carriers of passengers.

begin insert

begin insert SEC. 3. end insert   

end insert begin insert

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.

end insert

begin delete

SECTION 1.  

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

 

Chapter  8.5. Transportation Network Companies

 

5430.  

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.

5432.  

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.

5433.  

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.

5434.  

(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.

SEC. 2.  

Section 260 of the Vehicle Code is amended to read:

260.  

(a) (1) 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.

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

(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.

end delete