BILL NUMBER: AB 24 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 22, 2015
AMENDED IN ASSEMBLY APRIL 14, 2015
AMENDED IN ASSEMBLY MARCH 16, 2015
INTRODUCED BY Assembly Member Nazarian
DECEMBER 1, 2014
An act to amend Section 5374 of, and to add Section 5444 to, the
Public Utilities Code, and to amend Section 1808.1 of the Vehicle
Code, relating to transportation.
LEGISLATIVE COUNSEL'S DIGEST
AB 24, as amended, Nazarian. Transportation network companies:
public safety requirements.
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 requires, as a condition to
obtaining a certificate or permit, that the applicant, among other
things, participate in a program to regularly check the driving
records of all vehicle operators and provide a mandatory controlled
substance and alcohol testing certification program. A violation of
the act is generally a misdemeanor. Existing law defines a
transportation network company as an organization, whether a
corporation, partnership, sole proprietor, or other form, operating
in California that provides prearranged transportation services for
compensation using an online-enabled platform to connect passengers
with drivers using their personal vehicles.
This bill would prohibit the commission from issuing or renewing a
permit or certificate to a charter-party carrier of passengers
unless the applicant, in addition to existing requirements,
participates in the Department of Motor Vehicles
Vehicles ' pull-notice system. This bill would
specifically require a transportation network company to comply with
this provision and to provide for a mandatory controlled substance
and alcohol testing certification program. The bill would also
require a transportation network company to register any vehicle used
in the transportation of passengers for compensation with the
commission and display an identifying decal issued
symbol prescribed by the commission on the vehicle.
The bill would require that drivers hired or initially retained by
a transportation network company on or after January 1, 2016, be
subject to mandatory drug and alcohol testing prior to employment or
retention and that drivers hired or initially retained before January
1, 2016, complete a drug and alcohol test before January 1, 2017.
Because a violation of these 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: yes.
State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
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 pull-notice system pursuant to Section
1808.1 of the Vehicle Code 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.
SEC. 2. Section 5444 is added to the Public Utilities Code, to
read:
5444. (a) A transportation network company shall do all of the
following:
(1) Participate in a pull-notice system pursuant to Section 1808.1
of the Vehicle Code to regularly check the driving records of all
participating drivers.
(2) Provide for a mandatory controlled substance and alcohol
testing certification program as adopted by the commission pursuant
to Section 1032.1.
(3) Register any vehicle used in the transportation of passengers
for compensation with the commission and display on the vehicle
a suitable decal with an identifying symbol
issued prescribed by the
commission. commission pursuant to Section 5385.
(b) Drivers hired or initially retained by a transportation
network company on or after January 1, 2016, shall be subject to
mandatory drug and alcohol testing prior to employment or retention.
Drivers hired or initially retained before January 1, 2016, shall
complete a drug and alcohol test before January 1, 2017.
SEC. 3. Section 1808.1 of the Vehicle Code is amended to read:
1808.1. (a) The prospective employer of a driver who drives a
vehicle specified in subdivision (k) shall obtain a report showing
the driver's current public record as recorded by the department. For
purposes of this subdivision, a report is current if it was issued
less than 30 days prior to the date the employer employs the driver.
The report shall be reviewed, signed, and dated by the employer and
maintained at the employer's place of business until receipt of the
pull-notice system report pursuant to subdivisions (b) and (c). These
reports shall be presented upon request to an authorized
representative of the Department of the California Highway Patrol
during regular business hours.
(b) The employer of a driver who drives a vehicle specified in
subdivision (k) shall participate in a pull-notice system, which is a
process for the purpose of providing the employer with a report
showing the driver's current public record as recorded by the
department, and any subsequent convictions, failures to appear,
accidents, driver's license suspensions, driver's license
revocations, or any other actions taken against the driving privilege
or certificate, added to the driver's record while the employer's
notification request remains valid and uncanceled. As used in this
section, participation in the pull-notice system means obtaining a
requester code and enrolling all employed drivers who drive a vehicle
specified in subdivision (k) under that requester code.
(c) The employer of a driver of a vehicle specified in subdivision
(k) shall, additionally, obtain a periodic report from the
department at least every 12 months. The employer shall verify that
each employee's driver's license has not been suspended or revoked,
the employee's traffic violation point count, and whether the
employee has been convicted of a violation of Section 23152 or 23153.
The report shall be signed and dated by the employer and maintained
at the employer's principal place of business. The report shall be
presented upon demand to an authorized representative of the
Department of the California Highway Patrol during regular business
hours.
(d) Upon the termination of a driver's employment, the employer
shall notify the department to discontinue the driver's enrollment in
the pull-notice system.
(e) For the purposes of the pull-notice system and periodic report
process required by subdivisions (b) and (c), an owner, other than
an owner-operator as defined in Section 34624, and an employer who
drives a vehicle described in subdivision (k) shall be enrolled as if
he or she were an employee. A family member and a volunteer driver
who drives a vehicle described in subdivision (k) shall also be
enrolled as if he or she were an employee.
(f) An employer who, after receiving a driving record pursuant to
this section, employs or continues to employ as a driver a person
against whom a disqualifying action has been taken regarding his or
her driving privilege or required driver's certificate, is guilty of
a public offense, and upon conviction thereof, shall be punished by
confinement in a county jail for not more than six months, by a fine
of not more than one thousand dollars ($1,000), or by both that
confinement and fine.
(g) As part of its inspection of bus maintenance facilities and
terminals required at least once every 13 months pursuant to
subdivision (c) of Section 34501, the Department of the California
Highway Patrol shall determine whether each transit operator, as
defined in Section 99210 of the Public Utilities Code, is then in
compliance with this section and Section 12804.6, and shall certify
each operator found to be in compliance. Funds shall not be allocated
pursuant to Chapter 4 (commencing with Section 99200) of Part 11 of
Division 10 of the Public Utilities Code to a transit operator that
the Department of the California Highway Patrol has not certified
pursuant to this section.
(h) (1) A request to participate in the pull-notice system
established by this section shall be accompanied by a fee determined
by the department to be sufficient to defray the entire actual cost
to the department for the notification service. For the receipt of
subsequent reports, the employer shall also be charged a fee
established by the department pursuant to Section 1811. An employer
who qualifies pursuant to Section 1812 shall be exempt from any fee
required pursuant to this section. Failure to pay the fee shall
result in automatic cancellation of the employer's participation in
the notification services.
(2) A regularly organized fire department, having official
recognition of the city, county, city and county, or district in
which the department is located, shall participate in the pull-notice
program and shall not be subject to the fee established pursuant to
this subdivision.
(3) The Board of Pilot Commissioners for Monterey Bay and the Bays
of San Francisco, San Pablo, and Suisun, and its port agent shall
participate in the pull-notice system established by this section,
subject to Section 1178.5 of the Harbors and Navigation Code, and
shall not be subject to the fees established pursuant to this
subdivision.
(i) The department, as soon as feasible, may establish an
automatic procedure to provide the periodic reports to an employer by
mail or via an electronic delivery method, as required by
subdivision (c), on a regular basis without the need for individual
requests.
(j) (1) The employer of a driver who is employed as a casual
driver is not required to enter that driver's name in the pull-notice
system, as otherwise required by subdivision (a). However, the
employer of a casual driver shall be in possession of a report of the
driver's current public record as recorded by the department, prior
to allowing a casual driver to drive a vehicle specified in
subdivision (k). A report is current if it was issued less than six
months prior to the date the employer employs the driver.
(2) For the purposes of this subdivision, a driver is employed as
a casual driver when the employer has employed the driver less than
30 days during the preceding six months. "Casual driver" does not
include a driver who operates a vehicle that requires a passenger
transportation endorsement.
(k) This section applies to a vehicle for the operation of which
the driver is required to have a class A or class B driver's license,
a class C license with a hazardous materials endorsement, a class C
license issued pursuant to Section 12814.7, or a certificate issued
pursuant to Section 12517, 12519, 12520, 12523, 12523.5, or 12527, or
a passenger vehicle having a seating capacity of not more than 10
persons, including the driver, operated for compensation by a
charter-party carrier of passengers, transportation network company,
or passenger stage corporation pursuant to a certificate of public
convenience and necessity or a permit issued by the Public Utilities
Commission.
( l ) (1) For purposes of this section, the term
"employer" or "prospective employer" includes a transportation
network company whose permit or certificate, including any renewal of
that permit or certificate, is subject to the requirements of
Article 7 (commencing with Section 5430) of Chapter 8 of Division 2
of the Public Utilities Code.
(2) This section shall not be construed to change the definition
of "employer," "employee," or "independent contractor" for any other
purpose.
(m) A motor carrier who contracts with a person to drive a vehicle
described in subdivision (k) that is owned by, or leased to, that
motor carrier, shall be subject to subdivisions (a), (b), (c), (d),
(f), (j), (k), and ( l ) and the employer obligations in
those subdivisions.
(n) Reports issued pursuant to this section, but only those for a
driver of a taxicab engaged in transportation services as described
in subdivision (a) of Section 53075.5 of the Government Code, shall
be presented upon request, during regular business hours, to an
authorized representative of the administrative agency responsible
for issuing permits to taxicab transportation services pursuant to
Section 53075.5 of the Government Code.
SEC. 4. 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.