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.

Spectrum: Partisan Bill (Democrat 1-0)

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 SENATE  JUNE 19, 2014
	AMENDED IN ASSEMBLY  MAY 15, 2014
	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   Article 7 
(commencing with Section 5430) to  Chapter 8 of  Division 2
of the Public Utilities Code, relating to transportation.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2293, as amended, Bonilla. Transportation network companies:
insurance coverage. 
   Under existing 
    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.   provides for the regulation of
charter-party carriers of passengers by the Public Utilities
Commission, and makes it unlawful for a charter-party carrier to
operate without first obtaining a permit or c   ertificate,
from the commission, except as specified. The act requires a
charter-party carrier to, among other things, comply with specified
vehicle identification and accident liability protection
requirements. A violation of the act is generally a misdemeanor,
punishable by a specified fine or term of imprisonment, or both,
depending on the violation.  
   This bill would similarly define "transportation network company"
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.
 
   This bill would impose specified requirements relating to
insurance coverage, indemnity, and liability on transportation
network companies, as defined, including requiring a transportation
network company to disclose to participating drivers the company's
insurance coverage and limits of liability. The bill would specify
that the transportation network company's insurance is primary, and
would impose a duty to defend and indemnify on the transportation
network company. The bill would require the commission and the
Department of Insurance to collaborate on a study of transportation
network company insurance, as specified, and would prohibit a
transportation network company from disclosing the personally
identifiable information of a passenger, except as specified. The
bill would specify the Legislature's intent relating to expediting
the approval of transportation network company insurance products,
and would set forth related legislative findings and declarations.
 
    Because a violation of the bill's provisions would be a crime,
the bill would impose a state-mandated local program.  
   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:  no
  yes  . State-mandated local program:  no
  yes  .


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


   SECTION 1.    Article 7 (commencing with Section
5430) is added to Chapter 8 of Division 2 of the   Public
Utilities Code   , to read: 

      Article  7.    Transportation Network Companies



   5430.  Notwithstanding any other provision of this chapter, this
article shall apply to transportation network companies. 
    5430.   5431.   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.  (1) 
    5432.   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.  
   5433.  (a) Regarding insurance, both of the following shall apply
from the moment a participating driver logs on to the transportation
network company's application program until the driver logs off from
that application program:
   (1) Transportation network company insurance shall be primary.
   (2) Transportation network company insurance shall have the duty
to defend and indemnify.
   (b) Transportation network company liability insurance coverage
shall be required at a lower amount from the moment a participating
driver logs on to the transportation network company application
program until that driver has a passenger match accepted. This lower
amount shall be at least fifty thousand dollars ($50,000) for death
and personal injury, at least one hundred thousand dollars ($100,000)
for death and personal injury of two or more persons, and at least
thirty thousand dollars ($30,000) for property damage, all per
incident. The requirements for this coverage may be satisfied by any
of the following:
   (1) A primary personal automobile liability insurance policy that
recognizes the driver's provision of transportation network company
services.
   (2) An automobile liability insurance policy maintained by the
transportation network company that provides primary coverage in the
event a driver's personal automobile insurance policy does not
recognize the driver's provision of transportation network company
services.
   (3) A combination of a primary automobile liability insurance
policy that recognizes the driver's provision of transportation
network company services and an automobile liability insurance policy
maintained by the transportation network company.
   (c) This section shall not limit the liability of a transportation
network company arising out of an automobile accident involving a
participating driver in any action for damages against a
transportation network company for an amount above the required
insurance coverage.  
   5434.  The commission and the Department of Insurance shall
collaborate on a study of transportation network company insurance to
assess whether coverage requirements are appropriate to the risk of
transportation network company services in order to promote
data-driven decisions on insurance requirements.  
   5435.  A transportation network company shall not disclose to a
third party any personally identifiable information of a
transportation network company passenger unless one of the following
apply:
   (1) The customer knowingly consents.
   (2) Pursuant to a legal obligation.
   (3) The disclosure is to the commission in order to investigate a
complaint filed with the commission against a transportation network
company or a participating driver and the commission treats the
information under confidentiality protections.  
   5436.  It is the intent of the Legislature that the Department of
Insurance expedite review of any application for approval of
transportation network company insurance products.  
   5437.  The Legislature makes the following findings:
   (a) The commission has initiated regulation of transportation
network companies as a new category of charter-party carriers and
continues to develop appropriate regulations for this new service.
   (b) Given the rapidly evolving transportation network company
service, it is the intent of the Legislature to continue ongoing
oversight of the commission's regulation of these services in order
to enact legislation to adjust commission authority and impose
specific requirements or prohibitions as deemed necessary as these
services evolve. 
    5434.   5438.   Notwithstanding Section
11580.9 of the Insurance Code, or any other law affecting whether
one or more policies of insurance that may apply with respect to an
occurrence is primary or excess, this  chapter 
article  determines the obligations under insurance policies
issued to transportation network companies and, if applicable,
drivers providing transportation network services for transportation
network companies.
   SEC. 2.    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.                                  
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