AB 2068, as amended, Nazarian. Charter-party carriers of passengers.
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 rendered a decision relating to public safety risks in the operation of transportation network companies and defined 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.
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.
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.
This bill would specify that the assurances against protection against liability shall be primary.begin insert The bill would require the commission to develop a standard disclosure agreement with specified insurance disclosures, and would require the agreement to be included in a written agreement between drivers and charter-party carriers of passengers that use an online-enabled application or platform to connect passengers with drivers, and to be signed by those drivers. The bill would provide that the disclosure agreement records of a charter-party carrier of passengers are subject to review and audit by the commission.end 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.
This bill would revise the definition of a crime, thereby imposing a state-mandated local program.
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.
This bill would provide that no reimbursement is required by this act for a specified reason.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.
The people of the State of California do enact as follows:
Section 5360 of the Public Utilities Code is
2amended to read:
Subject to the exclusions of Section 5353, “charter-party
4carrier of passengers” means every person engaged in the
5transportation of persons by motor vehicle for compensation,
6whether in common or contract carriage, over any public highway
7in this state, and includes a person that uses an online-enabled
8application or platform to connect passengers with drivers.
9“Charter-party carrier of passengers” includes any person,
10corporation, or other entity engaged in the provision of a hired
11driver service when a rented motor vehicle is being operated by a
12hired driver.
Section 5391 of the Public Utilities Code is amended
2to read:
begin insert(a)end insertbegin insert end insert The commission shall, in granting permits or a
4certificate pursuant to this chapter, require the charter-party carrier
5of passengers to procure, and to continue in effect during the life
6of the permit or certificate, adequate protection against liability
7imposed by law upon the charter-party carrier of passengers for
8the payment of damages for personal bodily injuries, including
9death resulting therefrom, protection against a total liability of the
10charter-party carrier of passengers on account of bodily injuries
11to,
or death of, more than one person as a result of any one accident,
12and protection against damage or destruction of property. The
13requirements for such assurances of protection against liability
14shall be primary. The minimum requirements for such assurances
15of protection against liability shall not be less than the requirements
16begin deletewhich end deletebegin insertthat end insertare applicable to operations conducted under certificates
17of public convenience and necessity issued pursuant to the
18provisions of Article 2 (commencing with Section 1031) of Chapter
195 of Part 1 of Division 1, and the rules and regulations prescribed
20pursuant thereto shall apply to charter-party carriers of passengers.
21(b) The commission shall develop a standard disclosure
22agreement with respect to drivers who make themselves available
23for services with charter-party carriers of passengers that utilize
24an online-enabled application or platform to connect passengers
25with drivers. The standard disclosure agreement shall be part of
26a written agreement between drivers and those charter-party
27carriers of passengers, and shall provide information to drivers
28about insurance coverage and limits of liability coverage and
29advise drivers that their personal automobile insurance policy
30may not provide coverage when they are operating a vehicle as
31part of that charter-party carrier of passengers operation. The
32standard disclosure agreement shall be in writing and shall be
33signed by each driver participating in this type of arrangement
34with a charter-party carrier of passengers. Standard disclosure
35agreement records of charter-party carriers of passengers shall
36be subject to
review and audit by the commission at its discretion.
No reimbursement is required by this act pursuant to
38Section 6 of Article XIII B of the California Constitution because
39the only costs that may be incurred by a local agency or school
40district will be incurred because this act creates a new crime or
P4 1infraction, eliminates a crime or infraction, or changes the penalty
2for a crime or infraction, within the meaning of Section 17556 of
3the Government Code, or changes the definition of a crime within
4the meaning of Section 6 of Article XIII B of the California
5Constitution.
O
96