Amended in Senate May 29, 2014

Amended in Assembly March 19, 2013

California Legislature—2013–14 Regular Session

Assembly Bill No. 612

Introduced by Assembly Member Nazarian

February 20, 2013

begin delete An act to amend Section 21455.7 of the Vehicle Code, relating to vehicles. end delete begin insert An act to amend Sections 5360, 5374, 5385.5, 5385.6, and 5391 of, and to add Section 5374.4 to, the Public Utilities Code, relating to transportation. end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 612, as amended, Nazarian. begin delete Automated enforcement systems. end delete begin insert Charter-party carriers of passengers: online-enabled application or platform. end insert

begin insert

(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.

end insert begin insert

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.

end insert begin insert

This bill would define a charter-party carrier of passengers to include a person that uses 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 used in transportation for compensation under the act to furnish to the Department of Justice a full set of fingerprints to conduct criminal history record checks and to cause the results to be reported to the Public Utilities Commission.

end insert begin insert

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 that utilize an online-enabled application or platform to connect passengers with drivers.

end insert begin insert

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.

end insert begin insert

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

end insert begin insert

(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.

end insert begin insert

This bill would provide that no reimbursement is required by this act for a specified reason.

end insert begin delete

Existing law requires the minimum yellow light change interval at an intersection at which there is an automated enforcement system in operation to be established in accordance with the Traffic Manual of the Department of Transportation. Existing law provides that the minimum yellow light change intervals relating to designated approach speeds provided in the manual are mandatory minimum yellow light change intervals.

end delete begin delete

This bill, instead, would require the minimum yellow light change interval for all movements at an intersection at which there is an automated enforcement system in operation to be established at one second beyond the yellow light change intervals relating to designated approach speeds provided in the California Manual on Uniform Traffic Control Devices, or its successor. The bill would provide that those minimum yellow light change intervals are mandatory minimum yellow light change intervals, and that a citation issued by a law enforcement agency shall be dismissed if the local governmental agency or local authority has not established the yellow light change intervals in compliance with the requirements of this section.

end delete

Vote: majority. Appropriation: no. Fiscal committee:  begin delete no end delete begin insert yes end insert . State-mandated local program:  begin delete no end delete begin insert yes end insert .

The people of the State of California do enact as follows:

begin insert

begin insert SECTION 1. end insert   

end insert

begin insert Section 5360 of the end insert begin insert Public Utilities Code end insert begin insert is
amended to read: end insert

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 begin insert , and includes any person that uses an online-enabled
application or platform to connect passengers with drivers end insert .
“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.

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert Section 5374 of the end insert begin insert Public Utilities Code end insert begin insert is amended
to read: end insert

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 begin delete a program end delete begin insert the Department of Motor
Vehicle’s Employer Pull Notice Program end insert to regularly check the
driving records of all persons, whether employees or subcarriers,
operating vehicles used in transportation for compensation.

(E) It has a safety education and training program in effect for
all employees or subcarriers operating vehicles used in
transportation for compensation.

(F) 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) It has filed with the commission the certificate of workers’
compensation insurance coverage or statement required by Section
5378.1.

(H) 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) Subparagraphs (C), (F), and (H) 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) 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.

begin insert

begin insert SEC. 3. end insert   

end insert

begin insert Section 5374.4 is added to the end insert begin insert Public Utilities Code end insert begin insert ,
to read: end insert

begin insert

begin insert 5374.4. end insert   

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.

end insert

begin insert

begin insert SEC. 4. end insert   

end insert

begin insert Section 5385.5 of the end insert begin insert Public Utilities Code end insert begin insert is amended
to read: end insert

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 begin insert , including any carrier that uses an
online-enabled application or platform to connect passengers with
drivers end insert . 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.

begin insert

begin insert SEC. 5. end insert   

end insert

begin insert Section 5385.6 of the end insert begin insert Public Utilities Code end insert begin insert is amended
to read: end insert

5385.6.  

(a) No charter-party carrier begin insert , including any carrier that
uses an online-enabled application or platform to connect
passengers with drivers, end insert 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.

begin delete

(e) This section shall become operative on July 1, 1995.

end delete

begin insert

begin insert SEC. 6. end insert   

end insert

begin insert Section 5391 of the end insert begin insert Public Utilities Code end insert begin insert is amended
to read: end insert

5391.  

begin insert (a) end insert begin insert   end insert 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. begin insert The
requirements for these assurances of protection against liability
shall be primary and shall be end insert begin insert carried by the permit or certificate
holder. end insert The minimum requirements for begin delete such end delete begin insert these end insert assurances of
protection against liability shall not be less than the requirements
begin delete which end delete begin insert that end insert 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.

begin insert

(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.

end insert

begin insert

begin insert SEC. 7. end insert   

end insert begin insert

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.

end insert

begin delete

SECTION 1.  

Section 21455.7 of the Vehicle Code is amended
to read:

21455.7.  

(a) At an intersection at which there is an automated
enforcement system in operation, the minimum yellow light change
interval for all movements shall be established at one second
beyond the yellow light change intervals relating to designated
approach speeds provided in the California Manual on Uniform
Traffic Control Devices, or its successor.

(b) The minimum yellow light change intervals established
pursuant to subdivision (a) are mandatory minimum yellow light
change intervals. A citation issued by a law enforcement agency
shall be dismissed if the local governmental agency or local
authority has not established the yellow light change intervals in
compliance with the requirements of this section.

(c) A yellow light change interval may exceed the minimum
interval established pursuant to subdivision (a).

end delete