Under existing law and bargaining agreements, the state reimburses employees for all necessary and actual expenses they incur when they travel on official state business.

This bill would, until January 1, 2019, prohibit a state agency from prohibiting state employees traveling on official state business from using transportation provided by a transportation network company or lodging in a short-term rental, as defined. The bill would require a state agency to reimburse the actual and necessary expenses of a state employee using a transportation network company or a short-term rental consistent with the agencys standard reimbursement policies. The bill would request and encourage the University of California to adopt travel reimbursement policies in accordance with that prohibition. The bill would define terms for those purposes.

Under existing law and bargaining agreements, the state reimburses employees for all necessary and actual expenses they incur when they travel on official state business.

This bill would, until January 1, 2019, prohibit a state agency from prohibiting state employees traveling on official state business from using transportation provided by a transportation network company or lodging in a short-term rental, as defined. The bill would require a state agency to reimburse the actual and necessary expenses of a state employee using a transportation network company or a short-term rental consistent with the agencys standard reimbursement policies. The bill would request and encourage the University of California to adopt travel reimbursement policies in accordance with that prohibition. The bill would define terms for those purposes.

Under existing law and bargaining agreements, the state reimburses employees for all necessary and actual expenses they incur when they travel on official state business.

This bill would, until January 1, 2019, prohibit a state agency from prohibiting state employees traveling on official state business from using transportation provided by a transportation network company or lodging in a short-term rental, as defined. The bill would require a state agency to reimburse the actual and necessary expenses of a state employee using a transportation network company or a short-term rental consistent with the agencys standard reimbursement policies. The bill would request and encourage the University of California to adopt travel reimbursement policies in accordance with that prohibition. The bill would define terms for those purposes.

Under existing law and bargaining agreements, the state reimburses employees for all necessary and actual expenses they incur when they travel on official state business.

This bill would, until January 1, 2019, prohibit a state agency from prohibiting state employees traveling on official state business from using transportation provided by a transportation network company or lodging in a short-term rental, as defined. The bill would require a state agency to reimburse the actual and necessary expenses of a state employee using a transportation network company or a short-term rental consistent with the agencys standard reimbursement policies. The bill would request and encourage the University of California to adopt travel reimbursement policies in accordance with that prohibition. The bill would define terms for those purposes.

Under existing law and bargaining agreements, the state reimburses employees for all necessary and actual expenses they incur when they travel on official state business.

This bill would would, until January 1, 2019, prohibit a state agency from prohibiting state employees traveling on official state business from using transportation provided by a transportation network company or lodging in a short-term rental, as defined. The bill would require a state agency to reimburse the actual and necessary expenses of a state employee using a transportation network company or a short-term rental consistent with the agencys standard reimbursement policies. The bill would request and encourage the University of California to adopt travel reimbursement policies in accordance with that prohibition. The bill would define terms for those purposes.

Under existing law and bargaining agreements, the state reimburses employees for all necessary and actual expenses they incur when they travel on official state business.

This bill would prohibit a state agency from prohibiting state employees traveling on official state business from using transportation provided by a transportation network company or lodging in a short-term rental, as defined. The bill would require a state agency to reimburse the actual and necessary expenses of a state employee using a transportation network company or a short-term rental consistent with the agencys standard reimbursement policies. The bill would request and encourage the University of California to adopt travel reimbursement policies consistent in accordance with that prohibition. The bill would define terms for those purposes.

Under existing law and bargaining agreements, the state reimburses employees for all necessary and actual expenses they incur when they travel on official state business.

This bill would prohibit a state agency from prohibiting the use of, or denying reimbursement for, necessary and actual expenses of state employees traveling on official state business for from using transportation provided by a transportation network company or lodging in a short-term rental, as defined. The bill would require a state agency to reimburse the actual and necessary expenses of a state employee using a transportation network company or a short-term rental consistent with the agencys standard reimbursement policies. The bill would request and encourage the University of California to adopt travel reimbursement policies consistent with that prohibition. The bill would define terms for those purposes.

The Planning and Zoning Law requires a city, county, or city and county to adopt a comprehensive general plan that addresses a number of elements. If a general plan has been adopted, each county or city officer, department, board, or commission, as specified, is required to submit a list of proposed public works for the ensuing fiscal year. The agency receiving the list of proposed public works is required to prepare, as specified, a coordinated program of proposed public works for the ensuing fiscal year.

This bill would make nonsubstantive changes to these provisions.

CONCURRENCE IN SENATE AMENDMENTS

CSA1 Bill Id:AB 229

Author:(Chang)

As Amended Ver:August 31, 2015

Majority vote

Original Committee Reference: A. & A.R.

SUMMARY: Prevents state agencies from prohibiting state employees traveling on official state business from using transportation network companies or lodging in a short-term rental.

The Senate amendments:

1. Sunset this bill on January 1, 2019.

2. Make technical and non-substantive changes.

EXISTING LAW requires the director of the Department of Human Resources to adopt general rules and regulations that limit the amount, time, and place of expenses and allowances to be paid to officers, employees, experts, and agents of the state while traveling on official state business.

FISCAL EFFECT: According to the Senate Appropriations Committee, pursuant to Senate Rule 28.8, negligible state costs.

Analysis Prepared by: Scott Herbstman / A. & A.R. / (916) 319-3600 FN: 0001826

 THIRD READING  

Bill No: AB 229

Author: Chang (R)

Amended: 8/31/15 in Senate

Vote: 21

SENATE GOVERNMENTAL ORG. COMMITTEE: 11-1, 7/14/15

AYES: Hall, Berryhill, Block, Gaines, Galgiani, Glazer, Hill, Lara, McGuire, Runner, Vidak

NOES: Hueso

NO VOTE RECORDED: Hernandez

ASSEMBLY FLOOR: 74-0, 5/22/15 - See last page for vote

SUBJECT: State employees: travel reimbursement.

SOURCE: Author

DIGEST: This bill prevents a state agency from prohibiting state employees traveling on official business from using transportation provided by a transportation network company, such as Uber or Lyft, or lodging in a short term rental as defined.

Senate Floor Amendments on 8/31/15 removed the requirement that a short term rental maintain commercial liability insurance providing coverage for claims of bodily injury or properly damage arising from the short term rental stay in an amount not less than five hundred thousand dollars ($500,000) per occurrence. 

ANALYSIS:

Existing law:

1. Reimburses employees for all necessary and actual expenses they incur when they travel on official state business.

2. Requires the Director of the of the Department of Human Resources (CalHR) to adopt general rules and regulations that limit the amount, time, and place of expenses and allowances to be paid to officers, employees, experts, and agents of the state while traveling on official state business.

This bill:

1. Prevents a state agency from prohibiting state employees traveling on official business from using transportation provided by a transportation network company or lodging in a short term rental.

2. Defines “short-term rental” as a residential property that is rented to a visitor for fewer than 30 days through a centralized online platform whereby the rental is advertised and payments for the rental are securely processed.

3. Specifies that for purposes of travel reimbursement, a short-term rental shall be considered a commercial lodging establishment.

4. Defines a “transportation network company” as 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.

5. Provides that reimbursement shall be provided for necessary and actual expenses, consistent with the agency’s policies for reimbursement of other lodging establishments or other vehicles for hire.

6. Encourages the University of California to adopt travel reimbursement policies in accordance with the provisions of this bill.

7. Contains a sunset date of January 1, 2019.

Background

Purpose of the bill. According to the author, “there are over 271,000 active state employees in various state departments and agencies; another 92,000 UC employees, and many of them travel for their work. While the vast majority of travelling employees turn to hotels and taxi companies for ground travel and lodging, some employees do use sharing economy services. Sharing economy technology platforms are growing in popularity and can provide economical options for ground travel and lodging. For example, one analysis shows consumers can save up to 50% when lodging through an online home-sharing platform. Similarly, savings can be achieved through ride-sharing options depending on the region. Peer-to-peer services also provide an environmentally conscious option for ground travel”

The author further argues that, “as these innovative platforms become more ubiquitous, it is important for the state’s policies to adjust and conform to the progressive market-place. As the home and incubator of the sharing economy, it is critical California’s regulations are as innovative as the industry itself. AB 229 puts California at the forefront of the sharing economy by ensuring state employees can take full advantage of environmentally friendly peer-to-peer services and provides an opportunity to realize savings for the state as more employees turn to peer-to-peer services and thereby reducing total expenditures for travel related activity.”

Current CalHR rules. Current CalHR rules as well as memorandums of understanding (MOUs) with employee bargaining units do not currently prohibit the use of transportation network companies or short-term rentals for employees traveling on state business. These documents do not name either of these types of services when setting requirements.

Instead, rules and MOUs set lodging reimbursement maximum rates by location and require travelers to submit itemized receipts when claiming reimbursements. Rules and MOUs specify that to qualify for reimbursements, lodging must be in commercial lodging establishments. This bill specifies, for purposes of the section added by this bill, that short-term rentals are considered commercial lodging establishments. Additionally, this bill would not allow agencies to ban the use of short-term rental arrangements like Airbnb, which allows participants to rent out their homes or rooms in their homes for a specified number of nights.

Currently when state employees use taxis while traveling, depending on their employee group, they are either not required to submit taxi receipts or must only submit them when the ride exceeds $10.

Prior/Related Legislation

AB 2293 (Bonilla, Chapter 389, Statutes of 2014) established guidelines for insurance coverage for Transportation Network Companies to ensure personal and financial safety of consumers.

FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No

SUPPORT: (Verified 8/31/15)

Children’s Law Center of California

The Internet Association

Natural Resources Defense Council

Travelers United

OPPOSITION: (Verified 9/9/15)

California Teamsters Public Affairs Council

UNITE-HERE, AFL-CIO

ARGUMENTS IN SUPPORT: The Internet Association argues that “AB 229 recognizes the value of the emerging sharing economy and how it could be used to reduce state costs relating to travel. Providing the ability for state employees to use sharing economy services and receive reimbursement would increase the number of safe and reliable options available to employees when they travel on state business. In addition, AB 229 is in alignment with state travel policies requiring employees to use the least costly travel methods.”

ASSEMBLY FLOOR: 74-0, 5/22/15

AYES: Achadjian, Travis Allen, Baker, Bigelow, Bloom, Bonilla, Bonta, Brough, Brown, Burke, Calderon, Campos, Chang, Chau, Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly, Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Gray, Grove, Hadley, Harper, Roger Hernández, Holden, Irwin, Jones-Sawyer, Kim, Lackey, Levine, Linder, Lopez, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin, Nazarian, Obernolte, Patterson, Perea, Quirk, Rendon, Ridley-Thomas, Rodriguez, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Wagner, Wilk, Williams, Wood, Atkins

NO VOTE RECORDED: Alejo, Jones, O'Donnell, Olsen, Waldron, Weber

Prepared by: Felipe Lopez / G.O. / (916) 651-1530

9/9/15 16:01:38

**** END **

 THIRD READING  

Bill No: AB 229

Author: Chang (R)

Amended: 8/31/15 in Senate

Vote: 21

SENATE GOVERNMENTAL ORG. COMMITTEE: 11-1, 7/14/15

AYES: Hall, Berryhill, Block, Gaines, Galgiani, Glazer, Hill, Lara, McGuire, Runner, Vidak

NOES: Hueso

NO VOTE RECORDED: Hernandez

ASSEMBLY FLOOR: 74-0, 5/22/15 - See last page for vote

SUBJECT: State employees: travel reimbursement.

SOURCE: Author

DIGEST: This bill prevents a state agency from prohibiting state employees traveling on official business from using transportation provided by a transportation network company, such as Uber or Lyft, or lodging in a short term rental as defined.

Senate Floor Amendments on 8/31/15 removed the requirement that a short term rental maintain commercial liability insurance providing coverage for claims of bodily injury or properly damage arising from the short term rental stay in an amount not less than five hundred thousand dollars ($500,000) per occurrence. 

ANALYSIS:

Existing law:

1. Reimburses employees for all necessary and actual expenses they incur when they travel on official state business.

2. Requires the Director of the of the Department of Human Resources (CalHR) to adopt general rules and regulations that limit the amount, time, and place of expenses and allowances to be paid to officers, employees, experts, and agents of the state while traveling on official state business.

This bill:

1. Prevents a state agency from prohibiting state employees traveling on official business from using transportation provided by a transportation network company or lodging in a short term rental.

2. Defines “short-term rental” as a residential property that is rented to a visitor for fewer than 30 days through a centralized online platform whereby the rental is advertised and payments for the rental are securely processed.

3. Specifies that for purposes of travel reimbursement, a short-term rental shall be considered a commercial lodging establishment.

4. Defines a “transportation network company” as 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.

5. Provides that reimbursement shall be provided for necessary and actual expenses, consistent with the agency’s policies for reimbursement of other lodging establishments or other vehicles for hire.

6. Encourages the University of California to adopt travel reimbursement policies in accordance with the provisions of this bill.

7. Contains a sunset date of January 1, 2019.

Background

Purpose of the bill. According to the author, “there are over 271,000 active state employees in various state departments and agencies; another 92,000 UC employees, and many of them travel for their work. While the vast majority of travelling employees turn to hotels and taxi companies for ground travel and lodging, some employees do use sharing economy services. Sharing economy technology platforms are growing in popularity and can provide economical options for ground travel and lodging. For example, one analysis shows consumers can save up to 50% when lodging through an online home-sharing platform. Similarly, savings can be achieved through ride-sharing options depending on the region. Peer-to-peer services also provide an environmentally conscious option for ground travel”

The author further argues that, “as these innovative platforms become more ubiquitous, it is important for the state’s policies to adjust and conform to the progressive market-place. As the home and incubator of the sharing economy, it is critical California’s regulations are as innovative as the industry itself. AB 229 puts California at the forefront of the sharing economy by ensuring state employees can take full advantage of environmentally friendly peer-to-peer services and provides an opportunity to realize savings for the state as more employees turn to peer-to-peer services and thereby reducing total expenditures for travel related activity.”

Current CalHR rules. Current CalHR rules as well as memorandums of understanding (MOUs) with employee bargaining units do not currently prohibit the use of transportation network companies or short-term rentals for employees traveling on state business. These documents do not name either of these types of services when setting requirements.

Instead, rules and MOUs set lodging reimbursement maximum rates by location and require travelers to submit itemized receipts when claiming reimbursements. Rules and MOUs specify that to qualify for reimbursements, lodging must be in commercial lodging establishments. This bill specifies, for purposes of the section added by this bill, that short-term rentals are considered commercial lodging establishments. Additionally, this bill would not allow agencies to ban the use of short-term rental arrangements like Airbnb, which allows participants to rent out their homes or rooms in their homes for a specified number of nights.

Currently when state employees use taxis while traveling, depending on their employee group, they are either not required to submit taxi receipts or must only submit them when the ride exceeds $10.

Prior/Related Legislation

AB 2293 (Bonilla, Chapter 389, Statutes of 2014) established guidelines for insurance coverage for Transportation Network Companies to ensure personal and financial safety of consumers.

FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No

SUPPORT: (Verified 8/31/15)

Children’s Law Center of California

The Internet Association

Natural Resources Defense Council

Travelers United

OPPOSITION: (Verified 8/31/15)

None received

ARGUMENTS IN SUPPORT: The Internet Association argues that “AB 229 recognizes the value of the emerging sharing economy and how it could be used to reduce state costs relating to travel. Providing the ability for state employees to use sharing economy services and receive reimbursement would increase the number of safe and reliable options available to employees when they travel on state business. In addition, AB 229 is in alignment with state travel policies requiring employees to use the least costly travel methods.”

ASSEMBLY FLOOR: 74-0, 5/22/15

AYES: Achadjian, Travis Allen, Baker, Bigelow, Bloom, Bonilla, Bonta, Brough, Brown, Burke, Calderon, Campos, Chang, Chau, Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly, Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Gray, Grove, Hadley, Harper, Roger Hernández, Holden, Irwin, Jones-Sawyer, Kim, Lackey, Levine, Linder, Lopez, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin, Nazarian, Obernolte, Patterson, Perea, Quirk, Rendon, Ridley-Thomas, Rodriguez, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Wagner, Wilk, Williams, Wood, Atkins

NO VOTE RECORDED: Alejo, Jones, O'Donnell, Olsen, Waldron, Weber

Prepared by: Felipe Lopez / G.O. / (916) 651-1530

9/1/15 21:40:48

**** END **

 THIRD READING  

Bill No: AB 229

Author: Chang (R)

Amended: 8/18/15 in Senate

Vote: 21

SENATE GOVERNMENTAL ORG. COMMITTEE: 11-1, 7/14/15

AYES: Hall, Berryhill, Block, Gaines, Galgiani, Glazer, Hill, Lara, McGuire, Runner, Vidak

NOES: Hueso

NO VOTE RECORDED: Hernandez

SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8

ASSEMBLY FLOOR: 74-0, 5/22/15 - See last page for vote

SUBJECT: State employees: travel reimbursement

SOURCE: Author

DIGEST: This bill prevents a state agency from prohibiting state employees traveling on official business from using transportation provided by a transportation network company, such as Uber or Lyft, or lodging in a short term rental as defined.

ANALYSIS:

Existing law:

1. Reimburses employees for all necessary and actual expenses they incur when they travel on official state business.

2. Requires the Director of the of the Department of Human Resources (CalHR) to adopt general rules and regulations that limit the amount, time, and place of expenses and allowances to be paid to officers, employees, experts, and agents of the state while traveling on official state business.

This bill:

1. Prevents a state agency from prohibiting state employees traveling on official business from using transportation provided by a transportation network company or lodging in a short term rental.

2. Defines “short-term rental” as a residential property that is rented to a visitor for fewer than 30 days through a centralized online platform whereby the rental is advertised and payments for the rental are securely processed and maintains commercial liability insurance providing coverage for claims of bodily injury or property damage arising from the short-term rental stay in an amount not less than five hundred thousand dollars ($500,000) per occurrence.

3. Specifies that for purposes of travel reimbursement, a short-term rental shall be considered a commercial lodging establishment.

4. Defines a “transportation network company” as 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.

5. Provides that reimbursement shall be provided for necessary and actual expenses, consistent with the agency’s policies for reimbursement of other lodging establishments or other vehicles for hire.

6. Encourages the University of California to adopt travel reimbursement policies in accordance with the provisions of this bill.

7. Contains a sunset date of January 1, 2019.

Background

Purpose of the bill. According to the author, “There are over 271,000 active state employees in various state departments and agencies; another 92,000 UC employees, and many of them travel for their work. While the vast majority of travelling employees turn to hotels and taxi companies for ground travel and lodging, some employees do use sharing economy services. Sharing economy technology platforms are growing in popularity and can provide economical options for ground travel and lodging. For example, one analysis shows consumers can save up to 50% when lodging through an online home-sharing platform. Similarly, savings can be achieved through ride-sharing options depending on the region. Peer-to-peer services also provide an environmentally conscious option for ground travel”

The author further argues that, “as these innovative platforms become more ubiquitous, it is important for the state’s policies to adjust and conform to the progressive market-place. As the home and incubator of the sharing economy, it is critical California’s regulations are as innovative as the industry itself. AB 229 puts California at the forefront of the sharing economy by ensuring state employees can take full advantage of environmentally friendly peer-to-peer services and provides an opportunity to realize savings for the state as more employees turn to peer-to-peer services and thereby reducing total expenditures for travel related activity.”

Current CalHR rules. Current CalHR rules as well as memorandums of understanding (MOUs) with employee bargaining units do not currently prohibit the use of transportation network companies or short-term rentals for employees traveling on state business. These documents do not name either of these types of services when setting requirements.

Instead, rules and MOUs set lodging reimbursement maximum rates by location and require travelers to submit itemized receipts when claiming reimbursements. Rules and MOUs specify that to qualify for reimbursements, lodging must be in commercial lodging establishments. This bill specifies, for purposes of the section added by this bill, that short-term rentals are considered commercial lodging establishments. Additionally, this bill would not allow agencies to ban the use of short-term rental arrangements like Airbnb, which allows participants to rent out their homes or rooms in their homes for a specified number of nights.

Currently when state employees use taxis while traveling, depending on their employee group, they are either not required to submit taxi receipts or must only submit them when the ride exceeds $10.

Prior/Related Legislation

AB 2293 (Bonilla, Chapter 389, Statutes of 2014) established guidelines for insurance coverage for Transportation Network Companies to ensure personal and financial safety of consumers.

FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No

SUPPORT: (Verified 8/25/15)

Children’s Law Center of California

The Internet Association

Natural Resources Defense Council

OPPOSITION: (Verified 8/25/15)

Association of California Insurance Companies

National Association of Mutual Insurance Companies

Pacific Association of Domestic Insurance Companies

ARGUMENTS IN SUPPORT: The Internet Association argues that “AB 229 recognizes the value of the emerging sharing economy and how it could be used to reduce state costs relating to travel. Providing the ability for state employees to use sharing economy services and receive reimbursement would increase the number of safe and reliable options available to employees when they travel on state business. In addition, AB 229 is in alignment with state travel policies requiring employees to use the least costly travel methods.”

ARGUMENTS IN OPPOSITION: Opponents of the bill argue that “as proposed, the commercial policy must be $500,000 and narrowly specifies what is covered. It is well publicized that most short term rental hosts are either homeowners or renters. Simply put, these hosts do not have the financial backing of a hotel or motel ownership, and therefore may forgo buying any insurance when participating in a short term rental activity.”

ASSEMBLY FLOOR: 74-0, 5/22/15

AYES: Achadjian, Travis Allen, Baker, Bigelow, Bloom, Bonilla, Bonta, Brough, Brown, Burke, Calderon, Campos, Chang, Chau, Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly, Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Gray, Grove, Hadley, Harper, Roger Hernández, Holden, Irwin, Jones-Sawyer, Kim, Lackey, Levine, Linder, Lopez, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin, Nazarian, Obernolte, Patterson, Perea, Quirk, Rendon, Ridley-Thomas, Rodriguez, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Wagner, Wilk, Williams, Wood, Atkins

NO VOTE RECORDED: Alejo, Jones, O'Donnell, Olsen, Waldron, Weber

Prepared by: Felipe Lopez / G.O. / (916) 651-1530

8/26/15 10:19:12

**** END ****

SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION

Senator Isadore Hall, III

Chair

2015 - 2016 Regular

Bill No: AB 229 Hearing Date: 7/14/2015

SUBJECT: State employees: travel reimbursement

DIGEST: This bill prevents a state agency from prohibiting state employees traveling on official business from using transportation provided by a transportation network company, such as Uber or Lyft, or lodging in a short term rental as defined.

ANALYSIS:

Existing law:

1. Reimburses employees for all necessary and actual expenses they incur when they travel on official state business.

2. Requires the Director of the of the Department of Human Resources (CalHR) to adopt general rules and regulations that limit the amount, time, and place of expenses and allowances to be paid to officers, employees, experts, and agents of the state while traveling on official state business.

This bill:

1. Prevents a state agency from prohibiting state employees traveling on official business from using transportation provided by a transportation network company or lodging in a short term rental.

2. Defines “short-term rental” as a residential property that is rented to a visitor for fewer than 30 days through a centralized online platform whereby the rental is advertised and payments for the rental are securely processed.

3. Specifies that for purposes of travel reimbursement, a short-term rental shall be considered a commercial lodging establishment.

4. Defines a “transportation network company” as 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.

5. Provides that reimbursement shall be provided for necessary and actual expenses, consistent with the agency’s policies for reimbursement of other lodging establishments or other vehicles for hire.

6. Encourages the University of California to adopt travel reimbursement policies in accordance with the provisions of this bill.

Background

Purpose of the bill. According to the author, “There are over 271,000 active state employees in various state departments and agencies; another 92,000 UC employees, and many of them travel for their work. While the vast majority of travelling employees turn to hotels and taxi companies for ground travel and lodging, some employees do use sharing economy services. Sharing economy technology platforms are growing in popularity and can provide economical options for ground travel and lodging. For example, one analysis shows consumers can save up to 50% when lodging through an online home-sharing platform. Similarly, savings can be achieved through ride-sharing options depending on the region. Peer-to-peer services also provide an environmentally conscious option for ground travel”

The author further argues that, “as these innovative platforms become more ubiquitous, it is important for the state’s policies to adjust and conform to the progressive market-place. As the home and incubator of the sharing economy, it is critical California’s regulations are as innovative as the industry itself. AB 229 puts California at the forefront of the sharing economy by ensuring state employees can take full advantage of environmentally friendly peer-to-peer services and provides an opportunity to realize savings for the state as more employees turn to peer-to-peer services and thereby reducing total expenditures for travel related activity.”

Current CalHR rules. Current CalHR rules as well as memorandums of understanding (MOUs) with employee bargaining units do not currently prohibit the use of transportation network companies or short-term rentals for employees traveling on state business. These documents do not name either of these types of services when setting requirements.

Instead, rules and MOUs set lodging reimbursement maximum rates by location and require travelers to submit itemized receipts when claiming reimbursements. Rules and MOUs specify that to qualify for reimbursements, lodging must be in commercial lodging establishments. This bill specifies, for purposes of the section added by this bill, that short-term rentals are considered commercial lodging establishments. Additionally, this bill would not allow agencies to ban the use of short-term rental arrangements like Airbnb, which allows participants to rent out their homes or rooms in their homes for a specified number of nights.

Currently when state employees use taxis while traveling, depending on their employee group, they are either not required to submit taxi receipts or must only submit them when the ride exceeds $10.

Prior/Related Legislation

AB 2293 (Bonilla, Chapter 389, Statutes of 2014) established guidelines for insurance coverage for Transportation Network Companies to ensure personal and financial safety of consumers.

FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No

SUPPORT:

The Internet Association

Natural Resources Defense Council

OPPOSITION:

None received

ARGUMENTS IN SUPPORT: The Internet Association argues that “AB 229 recognizes the value of the emerging sharing economy and how it could be used to reduce state costs relating to travel. Providing the ability for state employees to use sharing economy services and receive reimbursement would increase the number of safe and reliable options available to employees when they travel on state business. In addition, AB 229 is in alignment with state travel policies requiring employees to use the least costly travel methods.”

Date of Hearing: May 13, 2015

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Jimmy Gomez, Chair

ABPCA Bill Id:AB 229

Author:(Chang) – As Amended Ver:April 22, 2015

Urgency: No State Mandated Local Program: No Reimbursable: No

SUMMARY:

This bill prevents state agencies from prohibiting state employees traveling on official state business from using transportation network companies or lodging in a short-term rental.

FISCAL EFFECT:

Unknown, but likely minor, state costs. State agencies are not currently prohibited from reimbursing these travel activities.

COMMENTS:

Purpose. According to the author, this bill seeks to ensure state employees can use "sharing economy" services like ride-sharing or home-sharing while traveling on state business. This bill would prevent agencies from prohibiting the reimbursement to traveling state employees for the use of transportation network companies like Uber and Lyft, in which participating drivers transport passengers in their own vehicles. Additionally, this bill would not allow agencies to ban the use of short-term rental arrangements like Airbnb, which allow participants to rent out their homes or rooms in their homes for a specified number of nights.

Background. CalHR rules, as well as relevant memorandums of understanding (MOUs) with employee bargaining units, are silent on the use of transportation network companies or short-term rentals for employees traveling on state business. Rules and MOUs specify that to qualify for reimbursements, lodging must be in commercial lodging establishments. This bill specifies that short-term rentals are considered commercial lodging establishments for purposes of this bill. CalHR rules and MOUs do not specifically mention transportation networks companies. Instead, they set requirements for taxi and similar transportation. This bill defines a transportation network company for purposes of reimbursement under this bill.

According to the author, "sharing economy" technology platforms are growing in popularity and can provide economical options for ground travel and lodging. This bill seeks to update the state's policies to conform to the marketplace.

Analysis Prepared by: Jennifer Swenson / APPR. / (916) 319-2081

Date of Hearing: April 29, 2015

ASSEMBLY COMMITTEE ON ACCOUNTABILITY AND ADMINISTRATIVE REVIEW

Rudy Salas, Chair

ABPCA Bill Id:AB 229

Author:Chang – As Amended Ver:April 22, 2015

SUBJECT: State employees: travel reimbursement

SUMMARY: Prevents state agencies from prohibiting state employees traveling on official state business from using transportation network companies or lodging in a short-term rental. Specifically, this bill:

1. Requires reimbursements for these necessary and actual expenses to be made consistent with the agency's policies for reimbursement of other lodging and other vehicles for hire.

2. Defines "short-term rental" and considers it a commercial lodging establishment for this section.

3. Defines "transportation network company" as having the same meaning as a specified Public Utilities Code section.

4. Requests the University of California (UC) to adopt travel reimbursement policies consistent with this bill.

EXISTING LAW requires the director of the Department of Human Resources (CalHR) to adopt general rules and regulations that limit the amount, time, and place of expenses and allowances to be paid to officers, employees, experts, and agents of the state while traveling on official state business.

FISCAL EFFECT: Unknown

COMMENTS: According to the author, the intent of this bill is to ensure state employees can use "sharing economy" services like ride-sharing or home-sharing while traveling on state business. This bill would prevent agencies from prohibiting the reimbursement to traveling state employees for the use of transportation network companies like Uber and Lyft, in which participating drivers transport passengers in their own vehicles. Additionally, this bill would not allow agencies to ban the use of short-term rental arrangements like Airbnb, which allows participants to rent out their homes or rooms in their homes for a specified number of nights.

Current CalHR rules as well as memorandums of understanding (MOUs) with employee bargaining units that specify travel reimbursement information do not currently prohibit the use of transportation network companies or short-term rentals for employees traveling on state business. These documents do not name either of these types of services when setting requirements.

Instead, rules and MOUs set lodging reimbursement maximum rates by location and require travelers to submit itemized receipts when claiming reimbursements. Rules and MOUs specify that to qualify for reimbursements, lodging must be in commercial lodging establishments. This bill specifies, for purposes of the section added by this bill, that short-term rentals are considered commercial lodging establishments.

This bill also defines a transportation network company to have the same meaning as a Public Utilities code section, which defines the term as an organization that "provides prearranged transportation services for compensation using an online-enabled application or platform to connect passengers with drivers using a personal vehicle." While CalHR rules and MOUs do not specifically mention transportation networks companies, they set requirements for taxi and similar transportation. Currently when state employees use taxis while traveling, depending on their employee group, they are either not required to submit taxi receipts or must only submit them when the ride exceeds $10.

This bill also encourages UC to adopt similar travel reimbursement policies as those specified in this bill.

REGISTERED SUPPORT / OPPOSITION:

Support

None on file

Opposition

None on file

Analysis Prepared by: Scott Herbstman / A. & A.R. / (916) 319-3600