Bill Text: CA AB2293 | 2013-2014 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Transportation network companies: insurance coverage.

Status: (Passed) 2014-09-17 - Chaptered by Secretary of State - Chapter 389, Statutes of 2014. [AB2293 Detail]

Download: California-2013-AB2293-Amended.html
BILL NUMBER: AB 2293	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 10, 2014
	AMENDED IN ASSEMBLY  MARCH 28, 2014

INTRODUCED BY   Assembly Member Bonilla

                        FEBRUARY 21, 2014

   An act to add Chapter 8.5 (commencing with Section 5430) to
Division 2 of the Public Utilities Code, relating to transportation.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2293, as amended, Bonilla. Transportation network companies:
insurance  coverage: disclosure.   coverage.

   Under existing law, the Passenger Charter-party Carriers' Act, the
Public Utilities Commission has adopted rules and regulations
relating to public safety risks in the operation of transportation
services utilizing transportation network companies. Those
regulations define a transportation network company as an
organization operating in California that provides prearranged
transportation services for compensation using an online-enabled
platform to connect passengers with drivers using their personal
vehicles. Existing regulations of the commission require, among other
things, a transportation network company to acquire a commercial
liability policy for incidents involving transportation network
company vehicles and drivers in transit to or during a transportation
network company trip.
   This bill would  more broadly   similarly
 define "transportation network company"  by excluding
the requirement that a transportation network company trip be
prearranged  and would require a transportation network
company to disclose in writing to participating drivers, as part of
its agreement with those drivers, the insurance coverage and limits
of liability provided by the transportation network company and to
advise a participating driver in writing that the driver's personal
automobile insurance policy may not provide coverage while the driver
makes himself or herself available for transportation network
company services. 
   The bill would require a transportation network company's
insurance policy to apply, as the primary coverage, in the event of a
loss or injury when a participating driver is logged on to the
transportation network company's application program.  
   The bill would also require the transportation network company's
insurance company to defend and indemnify the participating driver
and the person to whom the personal motor vehicle is registered in a
civil action for a loss or injury that occurs when the personal motor
vehicle is made available for transportation network services. 

   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Chapter 8.5 (commencing with Section 5430) is added to
Division 2 of the Public Utilities Code, to read:
      CHAPTER 8.5.  TRANSPORTATION NETWORK COMPANIES


   5430.  As used in this chapter, a "transportation network company"
is an organization, including, but not limited to, a corporation,
partnership, or sole proprietor, operating in California that
provides  prearranged transportation services for
compensation using an online-enabled application or platform to
connect passengers with drivers using their personal vehicles.
   5431.   A   (1)     A 
transportation network company shall disclose in writing to
participating drivers, as part of its agreement with those drivers,
the insurance coverage and limits of liability that the
transportation network company provides while a driver makes himself
or herself available for transportation network company services, and
shall advise a participating driver in writing that the driver's
personal automobile insurance policy may not provide coverage while
the driver makes himself or herself available for transportation
network company services. 
   (2) A transportation network company's insurance policy is the
primary policy coverage. If an applicable personal automobile
insurance policy exists, the coverage of that policy is excess. 

   5432.  For purposes of determining insurance coverage, a
transportation network company's insurance policy shall apply in the
event of a loss or injury when a participating driver logs on to the
transportation network company's application program. Coverage under
the transportation network company's insurance policy ceases when the
driver logs off from the transportation network company's
application program.  
   5433.  If a participating driver or the person to whom the
personal motor vehicle is registered is named a party in a civil
action for a loss or injury that occurs during any time period when
the personal motor vehicle is made available for transportation
network services, the transportation network company's insurance
company shall have the duty to defend and indemnify the participating
driver and the person to whom the personal motor vehicle is
registered.                             
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