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
begin delete defineend delete a charter-party carrier of passengers begin delete to include a person that usesend delete 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 begin delete persons operating vehiclesend delete used in transportation for compensation under the act to furnish to the Department of Justice begin delete a full set of fingerprintsend delete to conduct criminal history begin delete record checks and to cause the results to be reported to the Public Utilities Commissionend delete.
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
begin delete charter-party carriers of passengersend delete 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
begin delete decals and special license platesend delete.
(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 5360 of the Public Utilities Code is
2amended to read:
Subject to the exclusions of Section 5353, “charter-party
4carrier of passengers” means every person engaged in the
5transportation of persons by motor vehicle for compensation,
6whether in common or contract carriage, over any public highway
7in this state, and includes any person that uses an online-enabled
8application or platform to connect passengers with drivers.
9“Charter-party carrier of passengers” includes any person,
10corporation, or other entity engaged in the provision of a hired
11driver service when a rented motor vehicle is being operated by a
Section 5374 of the Public Utilities Code is
15amended to read:
(a) (1) Before a permit or certificate is issued or
17renewed, the commission shall require the applicant to establish
18reasonable fitness and financial responsibility to initiate and
19conduct or continue to conduct the proposed or existing
20transportation services. The commission shall not issue or renew
21a permit or certificate pursuant to this chapter unless the applicant
22meets all of the following requirements:
23(A) It is financially and organizationally capable of conducting
24an operation that complies with the rules and regulations of the
25Department of the California Highway Patrol governing highway
27(B) It is committed to observing the hours of service regulations
28of state and, where applicable, federal law, for all persons, whether
29employees or subcarriers, operating vehicles in transportation for
30compensation under the certificate.
31(C) It has a preventive maintenance program in effect for its
32vehicles used in transportation for compensation that conforms to
P4 1regulations of the Department of the California Highway Patrol
2in Title 13 of the California Code of Regulations.
3(D) It participates in the Department of Motor Vehicle’s
4Employer Pull Notice Program to regularly check the driving
5records of all persons, whether employees or subcarriers, operating
6vehicles used in transportation for compensation.
8 It has a safety education and training program in effect for
9all employees or subcarriers operating vehicles used in
10transportation for compensation.
12 It will maintain its vehicles used in transportation for
13compensation in a safe operating condition and in compliance with
14the Vehicle Code and with regulations contained in Title 13 of the
15California Code of Regulations relative to motor vehicle safety.
17 It has filed with the commission the certificate of workers’
18compensation insurance coverage or statement required by Section
21 It has provided the commission an address of an office or
22terminal where documents supporting the factual matters specified
23in the showing required by this subdivision may be inspected by
24the commission and the Department of the California Highway
26(I) It provides for a mandatory controlled substance and alcohol
27testing certification program as adopted by the commission
28pursuant to Section 1032.1.
30 Subparagraphs (C),
begin delete (F), and (H)end delete do not apply
31to a charter-party carrier of passengers engaged in the provision
32of a hired driver service when a rented motor vehicle is being
33operated by the hired driver.
34(2) With respect to subparagraphs (B) and
begin delete (F)end delete of paragraph
35(1), the commission may base a finding on a certification by the
36commission that an applicant has filed, with the commission, a
37sworn declaration of ability to comply and intent to comply.
38(3) The commission may require, as a precondition to the
39issuance of a permit or certificate, the procurement of a
40performance bond sufficient to facilitate the collection of fines,
P5 1penalties, and restitution related to enforcement actions that can
2be taken against the applicant.
3(b) In addition to the requirements in subdivision (a),
4charter-party carriers shall meet all other state and, where
5applicable, federal regulations as prescribed.
6(c) The commission may delegate to its executive director or
7that executive director’s designee the authority to issue, renew, or
8authorize the transfer of, charter-party carrier permits or certificates
9and to make the findings specified in subdivision (a) that are
10necessary to that delegated authority.
For motor vehicles designed to carry not more than
18eight passengers, including the driver, the commission shall issue
19a suitable decal for purposes of Section 5385, for each vehicle
20registered with the commission and operated by a charter-party
21carrier of passengers holding a valid permit or certificate of public
22convenience and necessity. The decal with an identifying symbol
23shall be a minimum size of two and one-half inches by six inches,
24and shall be affixed to the lower right hand corner of the rear
25bumper of the vehicle.
The commission shall, in granting permits or a certificate
28pursuant to this chapter, require the charter-party carrier of
29passengers to procure, and to continue in effect during the life of
30the permit or certificate, adequate protection against liability
31imposed by law upon the charter-party carrier of passengers for
32the payment of damages for personal bodily injuries, including
33death resulting therefrom, protection against a total liability of the
34charter-party carrier of passengers on account of bodily injuries
35to, or death of, more than one person as a result of any one accident,
36and protection against damage or destruction of property. The
37minimum requirements for such assurances of protection against
38liability shall not be less than the requirements which are applicable
39to operations conducted under certificates of public convenience
40and necessity issued pursuant to the provisions of Article 2
P9 1(commencing with Section 1031), Chapter 5, Part 1, Division 1,
2of this code, and the rules and regulations prescribed pursuant
3thereto shall apply to charter-party carriers of passengers.
Section 5374.4 is added to the Public Utilities Code,
Notwithstanding any other law, the commission shall
7require all persons, whether employees or subcarriers, operating
8vehicles used in transportation for compensation under this chapter
9to furnish to the Department of Justice a full set of fingerprints for
10purposes of conducting criminal history record checks, and to
11cause the results of those record checks to be reported to the
Section 5385.5 of the Public Utilities Code is amended
For motor vehicles designed to carry not more than
16eight passengers, including the driver, the commission shall issue
17a suitable decal for purposes of Section 5385, for each vehicle
18registered with the commission and operated by a charter-party
19carrier of passengers holding a valid permit or certificate of public
20convenience and necessity, including any carrier that uses an
21online-enabled application or platform to connect passengers with
22drivers. The decal with an identifying symbol shall be a minimum
23size of two and one-half inches by six inches, and shall be affixed
24to the lower right hand corner of the rear bumper of the vehicle.
Section 5385.6 of the Public Utilities Code is amended
(a) No charter-party carrier, including any carrier that
28uses an online-enabled application or platform to connect
29passengers with drivers, shall operate a limousine as defined by
30Section 5371.4 unless the limousine is equipped with the special
31license plates issued and distributed by the Department of Motor
32Vehicles pursuant to Section 5011.5 of the Vehicle Code.
33(b) The commission shall issue to each charter-party carrier
34operating limousines a permit or certificate for the number of
35vehicles verified by the carrier as employed in providing limousine
36service. The permit or certificate shall be submitted to the
37 Department of Motor Vehicles, which will issue to each verified
38vehicle a set of unique, identifying license plates. The department
39shall maintain a record of each set of plates it issues and provide
40a copy of each record to the commission.
P10 1(c) The commission shall recover from any carrier whose permit
2or certificate is cancelled, suspended, or revoked any and all plates
3issued pursuant to this section.
4(d) The special license plate shall be in lieu of the decal required
5to be issued and displayed pursuant to Section 5385.5.
Section 5391 of the Public Utilities Code is amended
(a) The commission shall, in granting permits or a
9certificate pursuant to this chapter, require the charter-party carrier
10of passengers to procure, and to continue in effect during the life
11of the permit or certificate, adequate protection against liability
12imposed by law upon the charter-party carrier of passengers for
13the payment of damages for personal bodily injuries, including
14death resulting therefrom, protection against a total liability of the
15charter-party carrier of passengers on account of bodily injuries
16to, or death of, more than one person as a result of any one accident,
17and protection against damage or destruction of property. The
18 requirements for these assurances of protection against liability
19shall be primary and shall be carried by the permit or certificate
20holder. The minimum requirements for these assurances of
21protection against liability shall not be less than the requirements
22that are applicable to operations conducted under certificates of
23public convenience and necessity issued pursuant to the provisions
24of Article 2 (commencing with Section 1031), Chapter 5, Part 1,
25Division 1, of this code, and the rules and regulations prescribed
26pursuant thereto shall apply to charter-party carriers of passengers.
27(b) The commission shall develop a standard disclosure
28agreement with respect to drivers who make themselves available
29for services with charter-party carriers of passengers that utilize
30an online-enabled application or platform to connect passengers
31with drivers. The standard disclosure agreement shall be part of a
32written agreement between the driver and the charter-party carrier
33of passengers, and shall provide information to the driver about
34insurance coverage and limits of liability coverage and advise the
35driver that their personal automobile insurance policy may not
36provide coverage when they are operating a vehicle as part of that
37charter-party carrier of passengers operation. The standard
38disclosure agreement shall be in writing and shall be signed by
39each driver participating in this type of arrangement with a
40charter-party carrier of passengers. Standard disclosure agreement
P11 1records of charter-party carriers of passengers shall be subject to
2review and audit by the commission at its discretion.
No reimbursement is required by this act pursuant to
5Section 6 of Article XIII B of the California Constitution because
6the only costs that may be incurred by a local agency or school
7district will be incurred because this act creates a new crime or
8infraction, eliminates a crime or infraction, or changes the penalty
9for a crime or infraction, within the meaning of Section 17556 of
10the Government Code, or changes the definition of a crime within
11the meaning of Section 6 of Article XIII B of the California