BILL NUMBER: AB 612 AMENDED
BILL TEXT
AMENDED IN SENATE JUNE 10, 2014
AMENDED IN SENATE MAY 29, 2014
AMENDED IN ASSEMBLY MARCH 19, 2013
INTRODUCED BY Assembly Member Nazarian
FEBRUARY 20, 2013
An act to amend Sections 5360, Section
5374 , 5385.5, 5385.6, and 5391 of,
and to add Section Sections 5374.3
and 5374.4 to, and to repeal Sections 5385.5 and 5391 of,
the Public Utilities Code, relating to transportation.
LEGISLATIVE COUNSEL'S DIGEST
AB 612, as amended, Nazarian. Charter-party carriers of
passengers: online-enabled application or platform.
(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. Existing law imposes certain penalties for
violation of the act. The act defines a charter-party carrier of
passengers as 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 and 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.
Pursuant to existing law, the commission has adopted rules and
regulations relating to public safety risks in the operation of
transportation network companies. Those rules and regulations define
a transportation network company as an organization that provides
prearranged transportation services for compensation using an
online-enabled application or platform to connect passengers with
drivers using their personal vehicles.
This bill would define establish specified
requirements applicable to a charter-party carrier of
passengers to include a person that uses and
any carrier that utilizes an online-enabled application or
platform to connect passengers with drivers. The bill would require a
charter-party carrier of passengers to participate in the Department
of Motor Vehicle's Employer Pull Notice Program. The bill would
require persons operating vehicles any driver
who is either under contract to, or employed by, the carrier to
operate a vehicle used in transportation for compensation under
the act to furnish to the Department of Justice a full set
of fingerprints 2 classifiable fingerprint cards
to conduct a criminal history record checks and
to cause the results to be reported to the Public Utilities
Commission background check, as specified .
The bill would require assurances of protection against liability
applicable to charter-party carriers under existing law to be primary
and carried by the permit or certificate holder. The bill would
require the commission to develop a standard disclosure agreement
with respect to drivers who make themselves available for services
with charter-party carriers of passengers
carriers that utilize an online-enabled application or platform
to connect passengers with drivers.
The bill would make expressly applicable to carriers that use an
online-enabled application or platform to connect passengers with
drivers certain provisions relating to the issuance of
decals and special license plates decals .
The bill would require that drivers employed or initially retained
after January 1, 2015, be subject to background checks and mandatory
drug and alcohol testing prior to employment or retention and that
employees hired before January 1, 2015, complete a background check
and drug and alcohol test prior to January 1, 2016.
(2) Because a violation of these provisions would be a crime, the
bill would impose a state-mandated local program.
(3) 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 1. Section 5360 of the Public Utilities
Code is amended to read:
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, and includes any person that uses an online-enabled
application or platform to connect passengers with drivers.
"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.
SEC. 2. SECTION 1. Section 5374 of
the Public Utilities Code is amended to read:
5374. (a) (1) Before a permit or certificate is issued or
renewed, the commission shall require the applicant to establish
reasonable fitness and financial responsibility to initiate and
conduct or continue to conduct the proposed or existing
transportation services. The commission shall not issue or renew a
permit or certificate pursuant to this chapter unless the applicant
meets all of the following requirements:
(A) It is financially and organizationally capable of conducting
an operation that complies with the rules and regulations of the
Department of the California Highway Patrol governing highway safety.
(B) It is committed to observing the hours of service regulations
of state and, where applicable, federal law, for all persons, whether
employees or subcarriers, operating vehicles in transportation for
compensation under the certificate.
(C) It has a preventive maintenance program in effect for its
vehicles used in transportation for compensation that conforms to
regulations of the Department of the California Highway Patrol in
Title 13 of the California Code of Regulations.
(D) It participates in the Department of Motor Vehicle's Employer
Pull Notice Program to regularly check the driving records of all
persons, whether employees or subcarriers, operating vehicles used in
transportation for compensation.
(E)
(D) It has a safety education and training program in
effect for all employees or subcarriers operating vehicles used in
transportation for compensation.
(F)
(E) It will maintain its vehicles used in
transportation for compensation in a safe operating condition and in
compliance with the Vehicle Code and with regulations contained in
Title 13 of the California Code of Regulations relative to motor
vehicle safety.
(G)
(F) It has filed with the commission the certificate of
workers' compensation insurance coverage or statement required by
Section 5378.1.
(H)
(G) It has provided the commission an address of an
office or terminal where documents supporting the factual matters
specified in the showing required by this subdivision may be
inspected by the commission and the Department of the California
Highway Patrol.
(I) It provides for a mandatory controlled substance and alcohol
testing certification program as adopted by the commission pursuant
to Section 1032.1.
(J)
(H) Subparagraphs (C), (F), and (H)
(E), and (G), do not apply to a charter-party carrier of
passengers engaged in the provision of a hired driver service when a
rented motor vehicle is being operated by the hired driver.
(2) With respect to subparagraphs (B) and (F)
(E) of paragraph (1), the commission may base a finding on
a certification by the commission that an applicant has filed, with
the commission, a sworn declaration of ability to comply and intent
to comply.
(3) The commission may require, as a precondition to the issuance
of a permit or certificate, the procurement of a performance bond
sufficient to facilitate the collection of fines, penalties, and
restitution related to enforcement actions that can be taken against
the applicant.
(b) In addition to the requirements in subdivision (a),
charter-party carriers shall meet all other state and, where
applicable, federal regulations as prescribed.
(c) The commission may delegate to its executive director or that
executive director's designee the authority to issue, renew, or
authorize the transfer of, charter-party carrier permits or
certificates and to make the findings specified in subdivision (a)
that are necessary to that delegated authority.
SEC. 2. Section 5374.3 is added to the
Public Utilities Code , to read:
5374.3. The commission shall develop a standard disclosure
agreement with respect to drivers who make themselves available for
services with charter-party carriers of passengers that utilize an
online-enabled application or platform to connect passengers with
drivers. The standard disclosure agreement shall be part of a written
agreement between the driver and the charter-party carrier of
passengers, and shall provide information to the driver about
insurance coverage and limits of liability coverage and advise the
driver that their personal automobile insurance policy may not
provide coverage when they are operating a vehicle as part of that
charter-party carrier of passengers operation. The standard
disclosure agreement shall be in writing and shall be signed by each
driver participating in this type of arrangement with a charter-party
carrier of passengers. Standard disclosure agreement records of
charter-party carriers of passengers shall be subject to review and
audit by the commission at its discretion.
SEC. 3. Section 5374.4 is added to the
Public Utilities Code , to read:
5374.4. (a) Notwithstanding Section 5374, the following
requirements shall apply to a charter party carrier of passengers,
including any carrier that utilizes an online-enabled application or
platform to connect passengers with drivers:
(1) It participates in the Department of Motor Vehicle's Employer
Pull Notice Program to regularly check the driving record of any
driver who is either under contract to, or employed by, the carrier
to operate a vehicle used in transportation for compensation.
(2) It provides for a mandatory controlled substance and alcohol
testing certification program as adopted by the commission pursuant
to Section 1032.1.
(3) It provides for mandatory Department of Justice criminal
background checks to check the criminal history of any driver who is
either under contract to, or employed by, the carrier to operate a
vehicle used in transportation for compensation pursuant to the
following:
(A) Upon accepting employment by a charter-party carrier of
passengers or entering into a contract with a carrier that utilizes
an online-enable application or platform to connect passengers with
drivers, a driver shall obtain two classifiable fingerprint cards for
submission to the Department of Justice. The driver shall submit the
fingerprint cards and a processing fee payable to the department to
the carrier. The carrier shall forward the classifiable fingerprint
cards and the fee to the Department of Justice. The department shall
forward one classifiable fingerprint card to the Federal Bureau of
Investigation for purposes of a background check. The processing fee
shall be in an amount to cover the actual costs of the department.
(B) In lieu of classifiable fingerprint cards provided for in this
section, the carrier may authorize drivers to submit their
fingerprints into an electronic fingerprinting system administered by
the Department of Justice. Drivers who submit their fingerprints by
electronic means shall have their fingerprints entered into the
system through a terminal operated by a law enforcement agency or
other facility authorized by the Department of Justice to conduct
electronic fingerprinting. The enforcement agency responsible for
operating the terminal may charge a fee sufficient to reimburse it
for the costs incurred in providing this service.
(C) Upon receipt of a driver's electronic or hard card
fingerprints as provided in this section, the Department of Justice
shall disseminate the following information to the carrier:
(i) Every conviction rendered against the driver.
(ii) Every arrest for an offense for which the driver is presently
awaiting trial, whether the driver is incarcerated or has been
released on bail or on his or her own recognizance pending trial.
(D) The carrier shall request from the Department of Justice
subsequent notification service, as provided pursuant to Section
11105.2 of the Penal Code.
(E) A driver shall be denied employment or have his or her
contract voided if he or she is required by any law to register as a
sex offender or has been convicted of any felony involving: any type
of sexual offense; the manufacture, possession for sale,
transportation, or distribution of narcotics, controlled substances,
or addictive or dangerous drugs; force, violence, threat or
intimidation against persons; kidnaping; forgery, fraud, larceny,
extortion, burglary, robbery, or theft; credit card fraud; possession
of a firearm or dangerous weapon; resisting or obstructing a peace
officer, public officer, or emergency medical technician; or use of
another vehicle for hire in the commission of a felony. Equivalent
out-of-state violations shall be considered.
(F) As used in this section, "driver" has the same meaning as
defined in Section 305 of the Vehicle Code.
(4) It provides decals to be applied to all vehicles used in
transportation for compensation. For motor vehicles designed to carry
not more than eight passengers, including the driver, the commission
shall issue a suitable decal for purposes of Section 5385, for each
vehicle (A) registered with the commission and operated by a
charter-party carrier of passengers holding a valid permit or
certificate of public convenience and necessity or (B) used by a
driver under contract to any carrier that uses an online-enabled
application or platform to connect passengers with drivers. Carriers
using an online-enabled application or platform shall register any
vehicle used in the transportation of passengers for compensation
with the commission and that vehicle shall display the
commission-issued identifying symbol. The decal with an identifying
symbol shall be a minimum size of two and one-half inches by six
inches, and shall be affixed to the lower right hand corner of the
rear bumper of the vehicle.
(5) The carrier's commercial auto liability insurance is primary.
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. The requirements for these
assurances of protection against liability shall be primary and
shall be carried by the permit or certificate holder. The minimum
requirements for these assurances of protection against liability
shall not be less than the requirements that are applicable to
operations conducted under certificates of public convenience and
necessity issued pursuant to the provisions of Article 2 (commencing
with Section 1031) of Chapter 5 of Part 1 of Division 1, and the
rules and regulations prescribed pursuant thereto shall apply to
charter-party carriers of passengers.
(b) Drivers employed or initially retained after January 1, 2015,
shall be subject to background checks and mandatory drug testing
employment or retention. Employees hired before January 1, 2015,
shall complete a background check and drug test before January 1,
2016.
SEC. 4. Section 5385.5 of the Public
Utilities Code is repealed.
5385.5. For motor vehicles designed to carry not more than eight
passengers, including the driver, the commission shall issue a
suitable decal for purposes of Section 5385, for each vehicle
registered with the commission and operated by a charter-party
carrier of passengers holding a valid permit or certificate of public
convenience and necessity. The decal with an identifying symbol
shall be a minimum size of two and one-half inches by six inches, and
shall be affixed to the lower right hand corner of the rear bumper
of the vehicle.
SEC. 5. Section 5391 of the Public
Utilities Code is repealed.
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. 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 1031), Chapter 5, Part 1, Division 1, of this code, and
the rules and regulations prescribed pursuant thereto shall apply to
charter-party carriers of passengers.
SEC. 3. Section 5374.4 is added to the Public
Utilities Code, to read:
5374.4. Notwithstanding any other law, the commission shall
require all persons, whether employees or subcarriers, operating
vehicles used in transportation for compensation under this chapter
to furnish to the Department of Justice a full set of fingerprints
for purposes of conducting criminal history record checks, and to
cause the results of those record checks to be reported to the
commission.
SEC. 4. Section 5385.5 of the Public Utilities
Code is amended to read:
5385.5. For motor vehicles designed to carry not more than eight
passengers, including the driver, the commission shall issue a
suitable decal for purposes of Section 5385, for each vehicle
registered with the commission and operated by a charter-party
carrier of passengers holding a valid permit or certificate of public
convenience and necessity, including any carrier that uses an
online-enabled application or platform to connect passengers with
drivers. The decal with an identifying symbol shall be a minimum size
of two and one-half inches by six inches, and shall be affixed to
the lower right hand corner of the rear bumper of the vehicle.
SEC. 5. Section 5385.6 of the Public Utilities
Code is amended to read:
5385.6. (a) No charter-party carrier, including any carrier that
uses an online-enabled application or platform to connect passengers
with drivers, shall operate a limousine as defined by Section 5371.4
unless the limousine is equipped with the special license plates
issued and distributed by the Department of Motor Vehicles pursuant
to Section 5011.5 of the Vehicle Code.
(b) The commission shall issue to each charter-party carrier
operating limousines a permit or certificate for the number of
vehicles verified by the carrier as employed in providing limousine
service. The permit or certificate shall be submitted to the
Department of Motor Vehicles, which will issue to each verified
vehicle a set of unique, identifying license plates. The department
shall maintain a record of each set of plates it issues and provide a
copy of each record to the commission.
(c) The commission shall recover from any carrier whose permit or
certificate is cancelled, suspended, or revoked any and all plates
issued pursuant to this section.
(d) The special license plate shall be in lieu of the decal
required to be issued and displayed pursuant to Section 5385.5.
SEC. 6. Section 5391 of the Public Utilities
Code is amended to read:
5391. (a) 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.
The requirements for these assurances of protection against liability
shall be primary and shall be carried by the permit or certificate
holder. The minimum requirements for these assurances of protection
against liability shall not be less than the requirements that are
applicable to operations conducted under certificates of public
convenience and necessity issued pursuant to the provisions of
Article 2 (commencing with Section 1031), Chapter 5, Part 1, Division
1, of this code, and the rules and regulations prescribed pursuant
thereto shall apply to charter-party carriers of passengers.
(b) The commission shall develop a standard disclosure agreement
with respect to drivers who make themselves available for services
with charter-party carriers of passengers that utilize an
online-enabled application or platform to connect passengers with
drivers. The standard disclosure agreement shall be part of a written
agreement between the driver and the charter-party carrier of
passengers, and shall provide information to the driver about
insurance coverage and limits of liability coverage and advise the
driver that their personal automobile insurance policy may not
provide coverage when they are operating a vehicle as part of that
charter-party carrier of passengers operation. The standard
disclosure agreement shall be in writing and shall be signed by each
driver participating in this type of arrangement with a charter-party
carrier of passengers. Standard disclosure agreement records of
charter-party carriers of passengers shall be subject to review and
audit by the commission at its discretion.
SEC. 7. SEC. 6. 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.