SB 1035: Transportation network companies.

(1)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. The act defines a transportation network company as an organization, whether a corporation, partnership, sole proprietor, or other form, operating in California that provides prearranged transportation services for compensation using an online-enabled platform to connect passengers with drivers using their personal vehicles. A transportation network company is subject to regulation by the Public Utilities Commission, which requires, among other things, a criminal background check of each participating driver. A transportation network company is also required to have a specified certificate or permit, as appropriate, from the commission, and is subject to various other requirements. A violation of the act is generally a misdemeanor.

This bill would authorize the commission to fix the rates and establish rules for transportation network companies, prohibit discrimination, and award reparation for the exaction of unreasonable, excessive, or discriminatory charges by a transportation network company.

This bill would require the commission, in consultation with the Department of the California Highway Patrol and with the United States Department of Justice and local law enforcement agencies if they choose to participate, to study specified background check measures and to adopt a background check measure as a condition to participate as a driver of a transportation network company if it determines that the measure would enhance public safety.

Because a violation of these provisions would be a crime, the bill would impose a state-mandated local program.

(2)Existing law imposes specified requirements for liability insurance coverage on transportation network companies and their participating drivers. Existing law requires the commission and the Department of Insurance to collaborate on a study of transportation network company insurance, as specified, and to report the findings of the study to the Legislature no later than December 31, 2017.

This bill would require the study to contain additional information regarding transportation network company insurance. The bill would also require the commission to study accessability issues for disabled populations with regard to transportation network companies and to report the findings of the study to the Legislature no later than December 31, 2017.

(3)Existing law authorizes the commission to inspect the accounts, books, papers, and documents of a charter-party carrier of passengers.

This bill would authorize the commission to collect any necessary data from a transportation network company. The bill would also require the commission to commence a proceeding to determine how data collected from a transportation network company can best be shared with local planning agencies and other local governments for purposes of transportation and environmental planning.

(4)Existing law authorizes peace officers to enforce and assist in the enforcement of specified criminal violations of the Passenger Charter-party Carriers Act with respect to charter-party carriers of passengers. Existing law requires the commission to coordinate enforcement of the act with peace officers through educational outreach and establishing lines of communication so that the commission is notified if an action is commenced so that the commission may take appropriate action to enforce the fine and penalty provisions of the act.

This bill would authorize peace officers to enforce and assist in the enforcement of specified criminal violations of the Passenger Charter-party Carriers Act and rules adopted by the commission with respect to transportation network companies.

(5)The Passenger Charter-party Carriers Act authorizes a peace officer to impound a bus or limousine of a charter-party carrier of passengers for 30 days if the officer determines that (A) the driver was operating the bus or limousine when the carrier did not have a permit or certificate issued by the commission or the carriers permit or certificate was suspended, or (B) the driver was operating the bus or limousine without having a current and valid drivers license of the proper class, a passenger vehicle endorsement, or the required certificate. A provision of the Vehicle Code also authorizes a peace officer to impound a bus or limousine of a charter-party carrier of passengers for 30 days if the officer makes any of the determinations described above. Existing law provides that both of these provisions do not authorize the impoundment of privately owned personal vehicles that are not common carriers nor the impoundment of vehicles used in transportation for compensation by charter-party carriers that are not required to carry individual permits.

This bill would authorize a peace officer to impound any vehicle of a charter-party carrier of passengers for 30 days in those circumstances and would delete the limitation on the impoundment of the above described vehicles. The bill would revise the Vehicle Code provision in the same manner.

(6)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.