AB 1422: Transportation network companies.

Existing law, the Passenger Charter-party Carriers Act, provides for the regulation of transportation network companies by the Public Utilities Commission, and imposes specified requirements for liability insurance coverage for those transportation network companies and their participating drivers, as defined. A violation of the act is generally a crime. Existing law defines a transportation network company to mean an organization, including, but not limited to, a corporation, limited liability company, partnership, sole proprietor, or any other entity, operating in California that provides prearranged transportation services for compensation using an online-enabled application or platform to connect passengers with drivers using a personal vehicle.

This bill would provide that a transportation network company is eligible and required to participate in the Department of Motor Vehicles pull-notice system to regularly check the driving records of a participating driver regardless of whether the participating driver is an employee or an independent contractor of the transportation network company. Because a violation of this requirement would be a crime, the bill would impose 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.