77112285 - 1 -

COM/MI1/avs !"#!#$%& &%()$)#* +,-./0 )& 1233425"-67 89

:;0<=>?-,=<@0A=6-
4B24B3C2D )A-E D4

Decision !"#!#$%& &%()$)#* #F (#GG)$$)#*%" !%%H%I
5G0=@-/ JBDCB3C2D9

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Oidei Insliluling RuIenaking on ReguIalions
ReIaling lo Iassengei Caiiieis, Rideshaiing, and
Nev OnIine-LnalIed Tianspoilalion Seivices.


RuIenaking 12-12-O11
(IiIed Decenlei 2O, 2O12)




DECISION ADOPTING RULES AND REGULATIONS TO
PROTECT PUBLIC SAFETY WHILE ALLOWING NEW ENTRANTS
TO THE TRANSPORTATION INDUSTRY

R.12-12-O11 COM/MI1/avs !"#!#$%& &%()$)#* 5"-67 89


- i -
K+L?% #F (#*K%*K$
K=A@- !0,-

DLCISION ADOITINC RULLS AND RLCULATIONS TO IROTLCT IULIC
SAILTY WHILL ALLOWINC NLW LNTRANTS TO THL TRANSIORTATION
INDUSTRY ........................................................................................................................ 2
Sunnaiy ........................................................................................................................ 2
1. IioceduiaI Hisloiy .................................................................................................. 4
2. }uiisdiclion ................................................................................................................ 7
2.1. Connenls on lhe RuIenaking ........................................................................ 8
2.2. Discussion ......................................................................................................... 11
2.2.1. Neilhei lhe IedeiaI TeIeconnunicalions Acl of 1996 noi IulIic
UliIilies Code Seclion 71O Lxenpls TNCs fion Slale }uiisdiclion ............. 12
2.2.2. TNCs Tianspoil Iassengeis foi Conpensalion .................................... 18
2.2.3. TNCs Opeiale on a Iieaiianged asis ................................................... 2O
2.2.4. The Connission Has lhe }uiisdiclion and lhe Duly lo LslalIish
ReguIalions Coveining lhe Iiovision of TNC Seivices ................................. 21
3. Safely ....................................................................................................................... 35
3.1. Connenls on lhe RuIenaking ...................................................................... 36
3.2. Discussion ......................................................................................................... 39
4. Rideshaiing ............................................................................................................. 44
4.1. Connenls on lhe RuIenaking ...................................................................... 44
4.2. Discussion ......................................................................................................... 48
5. Tianspoilalion Access ........................................................................................... 52
5.1. Connenls on lhe RuIenaking ...................................................................... 52
5.2. Discussion ......................................................................................................... 54
6. Insuiance ................................................................................................................. 56
6.1. Connenls on lhe RuIenaking ...................................................................... 57
6.2. Discussion ......................................................................................................... 58
7. Woikshop Repoil................................................................................................... 59
7.1. Discussion ......................................................................................................... 62
8. Connenls on Iioposed Decision ....................................................................... 63
9. Assignnenl of Iioceeding ................................................................................... 64
Iindings of Iacl ........................................................................................................... 64
ConcIusions of Lav .................................................................................................... 7O
ORDLR ............................................................................................................................. 72



R.12-12-O11 COM/MI1/avs/IiI !"#!#$%& &%()$)#* 5"-67 89



DECISION ADOPTING RULES AND REGULATIONS
TO PROTECT PUBLIC SAFETY WHILE ALLOWING NEW ENTRANTS
TO THE TRANSPORTATION INDUSTRY

Summary
This decision adopls iuIes and ieguIalions foi Nev OnIine LnalIed
Tianspoilalion Seivices, iefeiied lo heieaflei as a Tianspoilalion Nelvoik
Conpany
1
(TNC), lo ensuie lhal pulIic safely is nol conpionised ly lhe
opeialion of lhis nev lianspoilalion lusiness nodeI. TNCs aie nol jusl Lyfl,
SideCai, InslanlCal, and UleiX.
2
This Connission defines a TNC as an
oiganizalion vhelhei a coipoialion, pailneiship, soIe piopiieloi, oi olhei foin,
opeialing in CaIifoinia lhal piovides pieaiianged lianspoilalion seivices foi
conpensalion using an onIine-enalIed appIicalion (app) oi pIalfoin lo connecl
passengeis vilh diiveis using lheii peisonaI vehicIes.
3
Anong olhei

1
In lhe RuIenaking, ve iefeiied lo lhese conpanies as Nev OnIine-LnalIed
Tianspoilalion Seivices (NOLTS). We aie changing lhe acionyn lo Tianspoilalion
Nelvoik Conpany (TNC) foi ease of use.
2
The Commissions Safety and Enforcement Division issued cease and desist letters
and $2O,OOO cilalions againsl Ulei, Lyfl, and SideCai foi opeialing vilhoul aulhoiily
and olhei vioIalions of slale Iav. Hovevei, in 2O13, lhe Safely and Lnfoicenenl
Division enleied inlo sellIenenl agieenenls inlended lo ensuie lhe pulIic safely of
lolh iideis and diiveis vilh Ulei, Lyfl, and SideCai, aIIoving lhe conpanies lo opeiale
while the Commissions TNC rulemaking is underway.
hllp://vvv.cpuc.ca.gov/IUC/lianspoilalion/Iassengeis/CaiiieiInvesligalions/.
3
Theie aie eIeven exenplions lo lhe Iassengei Chailei-party Carriers Act contained in
IulIic UliIilies Code 5353. Oui definilion of a TNC does nol in any vay usuip lhose
exisling exenplions. Ioi exanpIe, one of lhe exenplions is passengei vehicIes caiiying
passengeis on a non-conneiciaI enleipiise lasis. This exceplion has leen defined ly
lhe Connission lo nean non-piofil oiganizalions. See D.91.-O6-025 (The term
noncommercial enterprise basis in PU Code Section 5353(f) includes operations
conducled on a nol-foi-piofil, lax-exenpl lasis, as authorized by federal or state law.).
Anolhei exenplion is lhe iideshaie exenplion ilseIf, vhich exenpls: Tianspoilalion of

!""#$"#% '"$#($)%* "$ $%+# ,-.%
R.12-12-O11 COM/MI1/avs !"#!#$%& &%()$)#* 5"-67 89


- 3 -
iequiienenls eslalIished in lhis decision, ve iequiie each TNC (nol lhe
individuaI diiveis) lo ollain a peinil fion lhe CaIifoinia IulIic UliIilies
Connission (Connission), iequiie ciininaI lackgiound checks foi each diivei,
eslalIish a diivei liaining piogian, inpIenenl a zeio-loIeiance poIicy on diugs
and aIcohoI, and iequiie insuiance coveiage as delaiIed leIov.
This decision oideis a second phase lo lhis pioceeding lo ieviev lhe
Commissions existing regulations over Iinousines and olhei chailei-paily
caiiieis lo ensuie lhal lhe pulIic safely iuIes aie up lo dale, and lhal lhe iuIes aie
responsive to the needs of todays transportation market. In addilion, lhe second
phase viII considei lhe polenliaI inpacl of any IegisIalive changes lhal couId
affecl oui aliIily lo ieguIale lhe TNC indusliy. When lhe second phase is
complete, the Commission will initiate the Commissions resolution piocess lo
updale lhe CeneiaI Oidei (CO) 115 and 157 seiies lo incIude lhe nev ieguIalions
ieIaling lo lhe chailei-paily caiiiei sulcIass of TNC.
IinaIIy, lhe Connission is avaie lhal TNCs aie a nascenl indusliy.
Innovation does not, however, alter the Commissions obligation to protect
pulIic safely, especiaIIy vheie, as heie, lhe coie seivice leing piovided --
passengei lianspoilalion on pulIic ioadvays -- has safely inpacls foi lhiid
pailies and piopeily. The Connission is faniIiai vilh and confidenl in ils
aliIily lo piolecl pulIic safely in lhe face of iapid lechnoIogicaI change.
ConsequenlIy, vhiIe lhe Connission adopls lhese iuIes and ieguIalions, il viII

peisons lelveen hone and voik Iocalions oi of peisons having a connon
voik-ieIaled liip puipose in a vehicIe having a sealing capacily of 15 passengeis oi Iess,
incIuding lhe diivei, vhich aie used foi lhe puipose of iideshaiing, as defined in
Seclion 522 of lhe VehicIe Code, vhen lhe iideshaiing is incidenlaI lo anolhei puipose
of lhe diivei.
R.12-12-O11 COM/MI1/avs !"#!#$%& &%()$)#* 5"-67 89


- 4 -
aIso Iook foi fuilhei guidance fion lhe IegisIaluie shouId il decide lhal lheie is a
need foi IegisIalion lo piovide guidance in ieguIaling lhis nev indusliy.
1. ProceduraI History
On Decenlei 2O, 2O12, lhe Connission opened lhis RuIenaking in oidei
lo deleinine vhelhei and hov TNC seivices aiianged lhiough onIine-enalIed
apps such as Ulei, SideCai, and Lyfl nighl affecl pulIic safely.
4

In lhe Oidei Insliluling RuIenaking (RuIenaking), lhe Connission slaled
lhal:
We iniliale lhis pioceeding lo piolecl pulIic safely and
encouiage innovalois lo use lechnoIogy lo inpiove lhe Iives
of CaIifoinians.
5
The puipose of lhis RuIenaking is nol lo
slifIe innovalion and lhe piovision of nev seivices lhal
consuneis vanl, lul ialhei lo assess pulIic safely iisks, and
lo ensuie lhal lhe safely of lhe pulIic is nol conpionised in
lhe opeialion of lhese lusiness nodeIs. The Connission
inviles aII inleiesled pailies lo pailicipale in lhis pioceeding lo
ensuie lhal ieguIalion is nol a hindiance, lul conlinues lo le
lhe safely nel lhal lhe pulIic can ieIy on foi ils pioleclion.
6

The Connission soughl connenl on issues incIuding: hov lhe
Commissions existing juiisdiclion shouId le appIied lo lusinesses such as Ulei,
SideCai, and Lyfl, lhe consunei pioleclion and safely inpIicalions of lhese nev

4
The Commissions Safety and Enforcement Division issued cease and desisl Ielleis
and $2O,OOO cilalions againsl Ulei, Lyfl, and SideCai foi opeialing vilhoul aulhoiily
and olhei vioIalions of slale Iav. Hovevei, in 2O13, lhe Safely and Lnfoicenenl
Division enleied inlo sellIenenl agieenenls inlended lo ensuie lhe pulIic safely of
lolh iideis and diiveis vilh Ulei, Lyfl, and SideCai, aIIoving lhe conpanies lo opeiale
while the Commissions TNC rulemaking is underway.
hllp://vvv.cpuc.ca.gov/IUC/lianspoilalion/Iassengeis/CaiiieiInvesligalions/.
5
R.12-12-O11, RuIenaking al 1.
6
R.12-12-O11, RuIenaking al 2.
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- 5 -
nelhods foi aiianging lianspoilalion seivices, vhelhei and hov lhe nev
lianspoilalion lusiness nodeIs diffei fion Iongslanding foins of iideshaiing,
and the new transportation business models potential effect on insurance and
lianspoilalion access.
On }anuaiy 28, 2O13, opening connenls veie fiIed ly: WiIIie L. iovn,
}i., Luxoi Cal Conpany, Ciealei CaIifoinia Liveiy Associalion, San Iiancisco
Aiipoil Connission, InleinalionaI Associalion of Tianspoilalion ReguIalois,
Ulei TechnoIogies, IeisonaI Insuiance Iedeialion of CaIifoinia (IIIC), Cenlei
foi AccessilIe TechnoIogy (CfoiAT), Ziniide, TiansIoin, SideCai TechnoIogies,
San Iiancisco MunicipaI Tianspoilalion Agency, Ld HeaIy, Uniled Taxical
Woikeis, San Iiancisco Cal Diiveis Associalion, Taxical Linousine and
Iaialiansil Associalion, and Taxical Iaialiansil Associalion of CaIifoinia.
On Ieliuaiy 11, 2O13, iepIy connenls veie fiIed ly: LIeclionic Iionliei
Ioundalion, InleinalionaI Associalion of Tianspoilalion ReguIalois, Uniled
Taxical Woikeis, Ziniide, CfoiAT, Luxoi Cal Conpany, San Iiancisco
MunicipaI Tianspoilalion Agency, Tiansfoin, SideCai TechnoIogies, Taxical
Iaialiansil Associalion of CaIifoinia, Ld HeaIy, WiIIie }. iovn, }i., eRideshaie,
and San Iiancisco Cal Diiveis Associalion.
On Ieliuaiy 15, 2O13, lhe Connission heId a Iieheaiing Confeience in
oidei lo, ($#%/ -0(-, eslalIish lhe seivice Iisl, deleinine lhe posilions of lhe pailies,
idenlify issues foi incIusion in lhe ApiiI 2, 2O13 Assigned Connissionei and
Administrative Law Judges Scoping Memo and Ruling (Scoping Memo), and
discuss lhe pioceduiaI scheduIe. Iieheaiing Confeience Slalenenls veie fiIed
ly: Uniled Taxical Woikeis, InleinalionaI Associalion of Tianspoilalion
ReguIalois, WiIIie }. iovn, }i., Tiansfoin, Taxical Iaialiansil Associalion of
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- 6 -
CaIifoinia, San Iiancisco MunicipaI Tianspoilalion Agency, Ziniide, Ulei
TechnoIogies, CfoiAT, and San Iiancisco Aiipoil Connission.
On Maich 7, 2O13, lhe Adninislialive Lav }udge (AL}) issued a nolice lo
lhe pailies via e-naiI, selling a voikshop scheduIe and diiecling pailies lo fiIe
voikshop slalenenls ansveiing specific queslions aloul lhe foIIoving issues:
TNC opeialions, juiisdiclion, pulIic safely, insuiance, lackgiound checks,
accessiliIily and equaI access, and hov Connission ieguIalions nay enhance oi
inpede access lo pulIic ioadvays.
On ApiiI 2, 2O13, lhe assigned Connissionei and AL} issued lhe Scoping
Meno vhich eslalIished lhe scope and scheduIe of lhe RuIenaking, calegoiized
lhe RuIenaking as quasi-IegisIalive, and deleinined lhal heaiings veie nol
necessaiy.
On ApiiI 3, 2O13, voikshop slalenenls veie fiIed ly: WiIIie L. iovn, }i.,
The UliIily Refoin Nelvoik, San Iiancisco Cal Diiveis Associalion, Ziniide,
SideCai TechnoIogies, TiansIoin, San Iiancisco Aiipoil Connission and
San Iiancisco MunicipaI Tianspoilalion Agency, Ulei TechnoIogies, Taxical
Iaialiansil Associalion of CaIifoinia, Uniled Taxical Woikeis, Luxoi Cal
Conpany, and CfoiAT.
On ApiiI 1O and 11, 2O13, lhe Connission heId a voikshop lo faciIilale
diaIogue anong lhe pailies on issues incIuding: juiisdiclion, pulIic safely,
accessiliIily, insuiance, and pioposed nodificalions foi CaIifoinia slalules oi
Connission ieguIalions. Tvo pailies, TiansIoin and Taxical Iaialiansil
Associalion of CaIifoinia, look noles duiing lhe voikshop and piepaied a diafl
report summarizing all parties positions as articulated during the workshop.
Iailies ievieved lhe diafl iepoil lo ensuie lhal lheii posilions veie capluied
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- 7 -
coiieclIy, and on May 17, 2O13, TiansIoin and Taxical Iaialiansil Associalion
of CaIifoinia fiIed lhe finaI voikshop iepoil vilh lhe Connission.
On ApiiI 25, 2O13, CfoiAT fiIed a nolion iequesling an addilionaI iound of
connenls on lhe issues iaised in lhe Scoping Meno. On May 1O, 2O13, lhe AL}
gianled lhe nolion, deleinining lhal opening connenls veie due on
}une 3, 2O13 and iepIy connenls veie due on }une 1O, 2O13. On }uIy 17, 2O13,
lhe CaIifoinia Highvay IalioI (CHI) fiIed ils connenls.
7

The puipose of lhis RuIenaking is nol lo slifIe innovalion and lhe
piovision of nev seivices lhal consuneis vanl, lul ialhei lo assess pulIic safely
iisks, and lo ensuie lhal lhe safely of lhe pulIic is nol conpionised in lhe
opeialion of lhese lusiness nodeIs. The Connission inviled aII inleiesled
pailies lo pailicipale in lhis pioceeding lo ensuie lhal ieguIalion is nol a
hindiance, lul conlinues lo le lhe safely nel lhal lhe pulIic can ieIy on foi ils
pioleclion.
8

2. Jurisdiction
As noled in lhe RuIenaking,
9
the Commissions jurisdiction over
chailei-paily caiiieis is cIeai. NeveilheIess, nev lechnoIogy and innovalion
iequiie lhal lhe Connission conlinuaIIy ieviev ils ieguIalions and poIicies lo
ensure that the law and the Commissions safety oversight reflect the current
slale of lhe indusliy and lhal lhese ieguIalions aie jusl and faii foi aII passengei
caiiieis.

7
R.12-12-O11, RuIenaking al 1.
8
R.12-12-O11, RuIenaking al 2.
9
R.12-12-O11, RuIenaking al 2-3.
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- 8 -
The Commission sought comment on how the Commissions existing
juiisdiclion puisuanl lo lhe CaIifoinia Conslilulion and lhe IulIic UliIilies Code
(IU Code) shouId le appIied lo lusinesses Iike Ulei, Sidecai, and Lyfl and lhe
diiveis enpIoyed oi uliIized ly lhese oi siniIai enlilies. The Connission aIso
soughl connenl on vhelhei any exisling IegisIalion shouId le nodified oi if
nev IegisIalion shouId le enacled.
3727 Comments on the RuIemaking
The pailies lhal fiIed opening connenls aII addiessed juiisdiclion in
vaiying degiees. The sunnaiies of lhe posilions of pailies leIov capluie aII lhe
posilions lhal have leen voiced in lhis RuIenaking on lhe suljecl of juiisdiclion.
The CHI asseils lhal TNCs faII undei exisling Connission juiisdiclion,
lecause lhe CHI vievs TNCs as foi-hiie passengei caiiieis.
1O
The CHI vievs a
donalion foi lianspoilalion seivice equivaIenl lo diiecl conpensalion, lecause
lhe inlenl is lo conducl a foi-hiie opeialion.
11

Luxoi Cal asseils lhal lhese lusinesses shouId le ieguIaled lhe sane as aII
olhei passengei caiiieis. Iuilheinoie, il asseils lhal lhe piesence of nev
lechnoIogy foi sunnoning a cai does nol in any vay change lhe naluie of lhe
lusiness lhal lhey aie engaged in.
12

Ciealei CaIifoinia Liveiy Associalion (CCLA) asseils lhal, lased on lheii
expeiience, lhese lianspoilalion lechnoIogy conpanies shouId le suljecl lo lhe
sane Connission ieguIalion and enfoicenenl as chailei paily caiiieis.
13


1O
CaIifoinia Highvay IalioI connenls fiIed on O7/17/13 al 1-2.
11
CaIifoinia Highvay IalioI connenls fiIed on O7/17/13 al 1.
12
Luxoi Cal Opening Connenls fiIed on O1/28/13 al 1.
13
CCLA Opening Connenls fiIed on O1/28/13 al 2.
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- 9 -
Ulei suggesls lhal lhe Connission does nol cuiienlIy have juiisdiclion
ovei Ulei lecause Ulei is nol a chailei-paily caiiiei vilhin lhe neaning of
IU Code 5351 %# 1%2. Iuilhei, Ulei advocales againsl exlending lhe
Commissions jurisdiction to companies like Uber because: 1) no public policy or
pulIic inleiesl is advanced ly such an exlension of lhe Iav, 2) lhe LegisIaluie has
iecenlIy enacled nev IegisIalion exenpling Inleinel IiolocoI-enalIed
(II-enalIed) seivices fion ieguIalion ly lhe Connission, and 3) exlending
Connission ieguIalion lo Ulei vouId confIicl vilh IedeiaI and Slale poIicies
pionoling fuilhei deveIopnenl of, and innovalion in, infoinalion seivices
piovided ovei lhe Inleinel ly piohililing ieguIalion of infoinalion seivices
piovideis.
14

TiansIoin acknovIedges lhal lhe Connission has juiisdiclion ovei
chailei-paily caiiieis nol neeling lhe slaluloiy exenplions foi laxicals and
voik-ieIaled iideshaiing, and has exeicised lhis juiisdiclion lo ensuie consunei
pioleclion and safely foi liadilionaI chaileied lianspoilalion seivices.
15

TiansIoin fuilhei asseils lhal lhe Connission shouId exeicise ils juiisdiclion
caiefuIIy so lhal il is appIied in a vay lhal aIIovs giovlh of lechnoIogy-enalIed
iideshaiing seivices ialhei lhan eIininaling an innovalive looI lo heIp addiess
lianspoilalion access and cIinale change. The Connission shouId ieconnend
lo lhe IegisIaluie any necessaiy nodificalions lo exisling slaluloiy exenplions lo
cieale a coheienl ieguIaloiy fianevoik lhal aIIovs foi iideshaiing seivices lo
giov, vhiIe ensuiing lhal consunei pioleclion and safely is addiessed. Al lhe
sane line il is inpoilanl foi high-voIune seivices lo consuIl and cooidinale

14
Ulei Opening Connenls fiIed on O1/28/13 al 5.
15
TiansIoin Opening Connenls fiIed on O1/28/13 al 2.
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- 1O -
vilh IocaI cilies, counlies, and pulIic liansil agencies lo avoid polenliaI
inpacls.
16

The San Iiancisco MunicipaI Tianspoilalion Aulhoiily (SIMTA) says slale
Iav defines a chailei-party carrier as any person engaged in the transportation
of peisons ly noloi vehicIe foi conpensalion, vhelhei in connon oi conliacl
carriage, over any public highway in this state.
17
Diiveis affiIialed vilh
lusinesses Iike Lyfl and Sidecai diive passengeis lo deslinalions of lheii choice
in exchange foi paynenl. These lusinesses coIIecl paynenls fion passengeis,
shaie ievenue vilh lhe diiveis, and nanage lhe exchange of infoinalion
lelveen passengeis and diiveis lo faciIilale inleiaclions and conneice lelveen
diiveis and passengeis. SIMTA goes on lo say lhal aIlhough ceilain
lianspoilalion piovideis lhal vouId olheivise neel lhe definilion of a
charter-party carrier are exempted by statute from the Commissions
ieguIaloiy oveisighl, seivices Iike Lyfl and SideCai do nol faII vilhin any of
lhese exenplions.
18

SideCai asseils lhal il is neilhei a chailei-paily caiiiei noi a lianspoilalion
seivice, lul ialhei il is a lechnoIogy pIalfoin lhal faciIilales exenpl iideshaiing
and, lo lhal exlenl, shouId le exenpl fion Connission juiisdiclion undei
IU Code 5353(f) and (h).
19


16
TiansIoin Opening Connenls fiIed on O1/28/13 al 4.
17
SIMTA Opening Connenls fiIed on O1/28/13 al 2, ciling IU Code 536O.
18
SIMTA Opening Connenls fiIed on O1/28/13 al 2.
19
SideCai Opening Connenls fiIed on O1/28/13 al 9.
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- 11 -
Lyfl asseils lhal lhe Connission shouId soIeIy focus on ieguIalion
necessaiy lo fuIfiII ils iesponsiliIily foi pulIic safely.
2O
Lyfl caulions lhe
Connission lo nol foice-fil exisling ieguIalions onlo such an eneiging indusliy.
InleinalionaI Associalion of Tianspoilalion ReguIalois (IATR)
ieconnends lhal lhe Connission shouId conducl fuilhei invesligalion lo
deleinine vhelhei TNCs opeiale vilhoul a piofil. IATR leIieves lhal
conpanies lhal opeiale foi-piofil, and lhal use on-Iine apps lhal diieclIy connecl
passengers to drivers, clearly fall under the Commissions definition of a
chailei-paily caiiiei, and shouId le suljecl lo aII lhe exisling ieguIalions.
21

Taxical Iaialiansil Associalion of CaIifoinia asseils lhal TNCs opeiale as
on denand seivices and lheiefoie faiI lo conpIy vilh lhe IegaI iequiienenls foi
opeialion as a Tianspoilalion Chailei Iaily (TCI).
22

2.2. Discussion
CaIifoinia Iav cuiienlIy iecognizes and ieguIales lhiee nodes of
passengei lianspoilalion foi conpensalion: laxi seivices, ieguIaled ly cilies
and/oi counlies, and chailei-paily caiiiei seivices, and passengei-slage
conpanies, ieguIaled ly lhe Connission. In iecenl yeais, lhe connunicalions
ievoIulion in viieIess seivice, snailphones, and on-Iine apps has fuilhei
faciIilaled lhe deveIopnenl and adoplion of passengei lianspoilalion foi
conpensalion lo a poinl vheie passengeis seeking iides can le ieadiIy
connecled vilh diiveis viIIing lo piovide iides in piivale vehicIes. This

2O
Ziniide (Lyfl) Opening Connenls fiIed on O1/28/13 al 4.
21
IATR Opening Connenls fiIed on O1/28/13 al 3.
22
TIAC Opening Connenls fiIed on O2/O4/13 al 5. The lein TCI is defined and
discussed, ($3/-, in lhis Decision.
R.12-12-O11 COM/MI1/avs !"#!#$%& &%()$)#* 5"-67 89


- 12 -
deveIopnenl in passengei lianspoilalion foi conpensalion, iefeiied lo in lhis
pioceeding as TNCs and associaled vilh conpanies incIuding UleiX, Lyfl, and
Sidecai, does nol fil nealIy inlo lhe convenlionaI undeislandings of eilhei laxis oi
limousines, but that does not mean that this Commissions responsibilily lo
pulIic safely in lhe lianspoilalion indusliy shouId le ignoied and/oi Iefl foi
individuaI conpanies oi lhe naikel pIace lo conlioI.
2.2.1. Neither the FederaI TeIecommunications Act of
1996 nor PubIic UtiIities Code Section 710
Exempts TNCs from State Jurisdiction
We reject Ubers assertion that TNCs are nothing more than an application
on snail phones, ialhei lhan pail of lhe lianspoilalion indusliy. Ulei is lhe
neans ly vhich lhe lianspoilalion seivice is aiianged, and peifoins essenliaIIy
lhe sane funclion as a Iinousine oi shullIe conpany dispalch office.
Accordingly, Uber is not exempt from the Commissions jurisdiction ovei
chailei-paily caiiieis. NonelheIess, lecause of lhe noveIly of lhese nev seivices,
we will address Ubers jurisdictional aigunenls heie.
As Ulei noles in ils connenls, lhe 1996 IedeiaI TeIeconnunicalions Acl
23

(ITA) dislinguishes between telecommunications and information services.
In so doing, Congiess codified lhe IedeiaI Connunicalions Connissions (ICC)
hisloiical determination that basic services were to be treated differently fron
enhanced services. Uber seeks to convince lhe Connission fuilhei vilh a
delaiIed discussion of a Vonage case, in vhich lhe ICC concIuded lhal nonadic
Voice ovei Inleinel IiolocoI (VoII) seivice is a puieIy inleislale seivice, nol
suljecl lo slale juiisdiclion. Ulei iecounls a CaIifoinia Couil of AppeaI case

23
I.L. No. 1O4-1O4, 11O Slal. 56 (1996).
R.12-12-O11 COM/MI1/avs !"#!#$%& &%()$)#* 5"-67 89


- 13 -
invoIving aclions lioughl againsl eay, vheie lhe couil heId eay innune fion
slale causes of aclion.
In addilion, Ulei noles passage of Senale iII 1161 in 2O11 codified 239
and 710 of the PU Code. Section 710 prohibits the Commission from exercising
any regulatory jurisdiction over VoIP or IP-enalIed seivices, suljecl lo a
deIegalion of fedeiaI aulhoiily, olhei expiess slaluloiy aulhoiily, oi exceplions
conlained in 71O.
Ubers citations are beside the point as none of the ciled slalules oi
piecedenls pievenl lhis Connission fion ieguIaling passengei lianspoilalion
ovei pulIic ioadvays. SpecificaIIy, ve iejecl lhe aigunenl lhal TNCs aie sinpIy
piovideis of II-enalIed seivices and lheiefoie exenpl fion oui juiisdiclion. We
find lhis aigunenl lo le facluaIIy and IegaIIy fIaved and, lheiefoie, do nol
accepl lhal lhe nelhod ly vhich infoinalion is connunicaled, oi lhe
lianspoilalion seivice aiianged, changes lhe undeiIying naluie of lhe
lianspoilalion seivice leing offeied.
Iiisl, lhe Connission is nol allenpling lo enacl iuIes lhal vouId inpose
ieguIalions on lhe snail phone appIicalions used lo connecl passengeis vilh
diiveis. Inslead, lhe Connission is pionuIgaling iuIes lhal viII govein lhe
lianspoilalion seivice ilseIf. Second, ve do nol leIieve lhal lhis Connission
Ioses ils juiisdiclion ovei lianspoilalion seivices sinpIy lecause a snail phone
appIicalion is used lo faciIilale lhe lianspoilalion seivice. Nolhing Ulei has
ciled in CaIifoinia oi fedeiaI Iav vouId nandale lhal iesuIl lased on lhe facls
heie. Indeed Uber and Sidecars position would effectively obviale lhe
Commissions authority under PU Code 5371.6(a) to prevent TCPs from
opeialing iIIegaIIy in oidei lo piolecl lhe pulIic and pievenl unfaii conpelilion:
R.12-12-O11 COM/MI1/avs !"#!#$%& &%()$)#* 5"-67 89


- 14 -
The LegisIaluie finds and decIaies lhal adveilising and
use of leIephone seivice is essenliaI foi chailei-paily
caiiieis of passengeis lo ollain lusiness and lo conducl
inliaslale passengei lianspoilalion seivices. UnIavfuI
adveilisenenls ly unIicensed chailei-paily caiiieis of
passengeis has iesuIled in piopeiIy Iicensed and
ieguIaled chailei-paily caiiieis of passengeis
conpeling vilh unIicensed chailei-paily caiiieis of
passengeis using unfaii lusiness piaclices. UnIicensed
chailei-paily caiiieis of passengeis have aIso exposed
cilizens of lhe slale lo unsciupuIous peisons vho
poiliay lhenseIves as piopeiIy Iicensed, quaIified, and
insuied chailei-paily caiiieis of passengeis. Many of
lhese unIicensed chailei-paily caiiieis of passengeis
have leen found lo have opeialed lheii vehicIes
vilhoul insuiance oi in an unsafe nannei, pIacing lhe
cilizens of lhe slale al iisk.
SiniIaiIy, lhe LegisIaluie has ciealed addilionaI safeguaids in Coveinnenl
Code 53075.8(b)(1) that allow for the termination of a taxicabs telephone
seivice if lhe laxi is opeialing vilhoul piopei aulhoiily:
The LegisIaluie fuilhei finds and decIaies lhal lhe
leininalion of leIephone seivice uliIized ly laxicals
opeialing vilhoul piopei aulhoiily is essenliaI lo
ensuie lhe pulIic safely and veIfaie. Theiefoie, IocaI
agencies shouId lake enfoicenenl aclion, as specified in
lhis seclion, lo disconnecl leIephone seivice of
unaulhoiized laxical opeialois vho unIavfuIIy
adveilise passengei lianspoilalion seivices in yeIIov
page diiecloiies and olhei pulIicalions. The
enfoicenenl aclions piovided foi ly lhis seclion aie
consislenl vilh lhe decision of lhe CaIifoinia Supiene
Couil in CoIdin v. IulIic UliIilies Connission (1979)
23 CaI. 3d 638.
We deen il is inconsislenl vilh oui gianl of aulhoiily ovei lianspoilalion
seivices lo le laiied fion ieguIaling a lianspoilalion seivice piovided ly TNCs
lased on lhe neans of connunicalion used lo aiiange lhe seivice.
R.12-12-O11 COM/MI1/avs !"#!#$%& &%()$)#* 5"-67 89


- 15 -
Moieovei, lo dale neilhei lhe ICC, noi a couil of highei juiisdiclion, has
iuIed lhal lhis Connission, oi any olhei slale connission, is piecIuded ly lhe
ITA fion ieguIaling TNCs. Il is inleiesling lo nole lhal lhe IedeiaI Tiade
Connission (ITC) has inleivened in slale pioceedings ly fiIing connenls lul
has nol, lo dale, gone so fai as lo cIain lhal slale-ieguIaloiy effoils lo asseil
juiisdiclion ovei TNCs is pieenpled ly lhe ITA. Ioi inslance, on }une 7, 2O13,
lhe ITC senl a Iellei lo CeneiaI CounseI of lhe Disliicl of CoIunlia Taxical
Connission lhal offeied connenls in lhe pioposed TNC-ieIaled iuIenaking.
IieviousIy, lhe ITC fiIed connenls in TNC-ieIaled iuIenaking pioceedings in
AIaska
24
and CoIoiado.
25
TeIIingIy, neilhei lhe ITC noi lhe ICC has cIained lhal
lhe slale ieguIaloiy lodies aie pieenpled fion pionuIgaling ieguIalions lo deaI
vilh lhe gioving TNC lusiness.
In iesponse lo lhe pioposed decision, Ulei conlinued ils aigunenl ly
conpaiing ilseIf lo CoogIe IoveiMelei. In ils Augusl 19, 2O13 connenls lo lhis
decision, Ulei slaled lhal in lhe sane vay lhal CoogIe did nol lecone an eneigy
uliIily ly deveIoping lhe CoogIe IoveiMelei soflvaie appIicalion, Ulei does
nol lecone a lianspoilalion conpany ly deveIoping lhe Ulei Soflvaie
AppIicalion. The najoi diffeience lelveen Ulei and CoogIe IoveiMelei is lhal
Ulei conlioIs lhe financiaI liansaclion lelveen lhe cuslonei and lhe conpany.
Ulei ieceives lhe cuslonei faie and lhen liansfeis lhose funds lo lhe diivei

24
ITC connenls daled ApiiI 19, 2O13 lo lhe HonoialIe Dellie Ossiandei Conceining
AO NO. 2O13-36 Regaiding lhe ReguIaloiy Iianevoik foi lhe Licensing and Ieinilling
of Taxicals, Linousines, and Olhei VehicIes foi Hiie in Anchoiage, AIaska.
25
ITC connenls daled Maich 6, 2O13 lo lhe CoIoiado IulIic UliIilies Connission 4$
56% 7-##%/ "3 #6% 8/","1%* 9)0%1 9%.)0-#($. 5/-$1,"/#-#("$ :; 7"#"/ <%6('0%, 4 Code of
CoIoiado ReguIalions 723-6.
R.12-12-O11 COM/MI1/avs !"#!#$%& &%()$)#* 5"-67 89


- 16 -
ninus ils shaie, vhiIe CoogIe IoveiMelei does nol lake any noney fion lhe
cuslonei. CoogIe IoveiMelei vas a looI lhal aIIoved an eIecliicily consunei lo
viev his oi hei eIecliicily usage. The dala dispIayed ly CoogIe IoveiMelei vas
neasuied ly a neasuienenl device inslaIIed ly lhe cuslonei vilh his oi hei
consenl. The goaI of lhe CoogIe IoveiMelei vas lo infoin lhe eneigy cusloneis
of lheii eneigy use, vhich couId heIp lhe consunei idenlify vays lo save
eneigy. The cuslonei vas nol chaiged a faie, and CoogIe did nol geneiale olhei
ievenues fion lhe looI. If aII Ulei did vas lo shov cusloneis naps of avaiIalIe
cais, vilhoul giving lhen a vay lo look a iide and vilhoul conlioIIing oi laking
a shaie of lhe faie, lhen lhe anaIogy nighl le noie appiopiiale.
The Connission eIecls lo use a noie appiopiiale anaIogy invoIving
CoogIe. CoogIe Seaich is an app and a soflvaie pIalfoin, and uses lhal soflvaie
lo piovide a pioducl: seaich Iislings. In 2O11, CoogIe agieed lo pay a sellIenenl
of $5OO niIIion foi aIIoving fiauduIenl phainaceulicaI adveilisenenls.
26
In lhe
case of phainaceulicaI Iislings, CoogIe Seaich vas connecling peopIe vilh
pioducls lhal veie hainfuI oi fiauduIenl, and vhich iepiesenled a lhieal lo
pulIic safely. The peopIe seIIing lhe iIIegaI diugs had lo le heId accounlalIe, lul
so did lhe soflvaie pIalfoin lhal connecled peopIe vilh lhe iIIegaI diugs. The
sane is liue vilh Ulei. The Ulei liand is nov a knovn liand foi cai seivice. Il
is expecled lhal a passengei iequesling an Ulei cai viII gel a lIack lovn cai oi
sonelhing of siniIai slaluie. Il is expecled lhal lhis seivice nay cosl noie, lul il
is a highei seivice vilh piofessionaI diiveis. Iassengeis nay caII Ulei noie
fiequenlIy lecause of ils nane iecognilion . Ulei ly ils nane aIone is seIIing a

26
=%% hll://vvv.vired.com/lhrealIeveI/2013/05/googIe-harma-vhilaker-sling/aII/.
R.12-12-O11 COM/MI1/avs !"#!#$%& &%()$)#* 5"-67 89


- 17 -
lype of cai seivice. ecause Ulei is piofiling fion lhis seivice il shouId aIso le
heId iesponsilIe if lhe diivei is negIigenl oi nol appIying Ulei safe piaclices.
The sane vay CoogIe vas heId iesponsilIe foi aIIoving fiauduIenl
adveilisenenls is lhe sane ieason vhy Ulei shouId le heId iesponsilIe foi ils
diiveis.
Ulei aigues lhal lhe laxi cals and Iinousines lhal aiiange iides on lhe
Ulei pIalfoin aie aIieady ieguIaled and insuied, and lhal no addilionaI
ieguIalion of Ulei ilseIf is necessaiy lo piolecl lhe pulIic inleiesl. IeiveiseIy,
hovevei, lhe facl lhal ieguIaled foins of lianspoilalion aiiange iides lhiough
lhe Ulei pIalfoin injecls a consideialIe degiee of unceilainly inlo lhe queslion
of whether a taxi cab or limousines insurance coverage would cover a clain. Ioi
example, if a limousine driver uses Ubers method of fare calculation and liIIing
ialhei lhan lhe nelhod olheivise iequiied ly TCI iuIes oi Iinousine conpany
poIicy, in lhe evenl of an incidenl the limousines existing insurance poIicy nay
deny a cIain on lhe giounds lhal lhe Iinousine had slopped opeialing, sliiclIy
speaking, and foi insuiance puiposes, as a coveied vehicIe. In lhis sane
hypolhelicaI incidenl, based on Ubers comments in this proceeding, we
anlicipale lhal Ulei vouId deny lhal il has any olIigalion lo insuie lhe pailies
injuied in lhe accidenl, on lhe giounds lhal Ulei is an app and lhe Iinousine
diivei vas aIieady insuied.
UnliI lhis Decision lecones effeclive, lheie is a ieaI possiliIily lhal pailies
suffeiing Iosses in an incidenl vouId find lhal lheie is no insuiance avaiIalIe lo
covei lheii polenliaI cIain.
Due lo lhe consideialIe unceilainly lhal exisls conceining lhe insuiance
coveiage appIicalIe lo iides (olhei lhan UleiX iides) aiianged lhiough lhe Ulei
app, and lhe lhieal lo pulIic safely and veII-leing ciealed ly lhis unceilainly,
R.12-12-O11 COM/MI1/avs !"#!#$%& &%()$)#* 5"-67 89


- 18 -
lhe Connission is sliongIy incIined lo iequiie Ulei lo ollain a TCI peinil in
oidei lo conlinue opeialing in CaIifoinia. As discussed eIsevheie in lhis
Decision, lhe Connission inlends lo open a second phase of lhis pioceeding
(Ihase II) lo considei lhe iuIes appIicalIe lo TCIs in CaIifoinia. In oidei lo
ensuie lhe giealesl possilIe evidenliaiy iecoid, lhe Connission vouId piefei lo
Ieave aII non-TCN issues, including Ubers potential TCP status, to Phase II.
Hovevei, lhe Connission viII nol aIIov lhe unceilainly iegarding Ubers
insuiance lo peisisl duiing lhe pendency of Ihase II. We iequiie Ulei lo
denonsliale lo lhe Connission vilhin 3O days of lhe issuance of lhis decision
lhal il nainlains conneiciaI IialiIily insuiance poIicies pioviding nol Iess lhan
$1,OOO,OOO (one niIIion doIIais) pei-incidenl coveiage foi incidenls invoIving
vehicIes and diiveis in liansil lo oi duiing liips aiianged lhiough lhe Ulei app,
lhe Connission ieseives lhe iighl lo iequiie Ulei lo ollain a TCI peinil
lhiough Connission iesoIulion. vhiIe lhey aie pioviding Ulei seivices. The
insuiance coveiage shaII le avaiIalIe lo covei cIains iegaidIess of vhelhei an
Ulei diivei nainlains insuiance adequale lo covei any poilion of lhe cIain.
2.2.2. TNCs Transport Passengers for Compensation
IulIic UliIilies Code 536O slales in pail:
Subject to the exclusions of Section 5353, charter-paily
carrier of passengers means every person engaged in
lhe lianspoilalion of peisons ly noloi vehicIe foi
conpensalion, vhelhei in connon oi conliacl caiiiage,
ovei any pulIic highvay in lhis slale.
We iejecl lhe aigunenls nade ly Lyfl and SideCai lhal any paynenl foi
iides aiianged lhiough lheii apps is voIunlaiy and find lhal cuiienl TNCs aie
engaged in lhe lianspoilalion of peisons foi conpensalion. AIlhough lhe phiase
for compensation is not defined by PU Code 5360, the plain-neaning
R.12-12-O11 COM/MI1/avs !"#!#$%& &%()$)#* 5"-67 89


- 19 -
inleipielalion of IU Code 536O in D. 69231 (}une 15, 1965) infoins oui decision
in lhis pioceeding.
In D.69231, a skale aiena ovnei vas oideied lo cease and desisl
lianspoiling passengeis lo his skale aiena unliI he ollained his TCI ceilificale.
WhiIe lhe iecoid vas uncIeai as lo vhelhei lhe ovnei vouId chaige a fee foi lhe
pioposed seivice, lhe Connission deleinined lhal even if lhe lianspoilalion
was for free, transpoilalion fuinished ly lusiness enleipiises vilhoul chaige is
also for compensation if the organization sponsoring the trip receives a business
benefit.
27
The Connission ieileialed lhis inleipielalion in D.818O5
(Augusl 28, 1973) where we reasoned that it was not necessary for the staff to
piove lhal iespondenl acluaIIy ieceived noney consideialion foi lhe
lianspoilalion in queslion. Il is enough lhal he received an economic benefit.
28

CIeaiIy each TNC is ieceiving eilhei an econonic lenefil oi a lusiness
lenefil. Al a nininun, lhey aie ieceiving incieased palionage vilh lhe giovlh
of lheii lusinesses. This possiliIily vas an inpoilanl facloi foi lhe Connission
in iendeiing ils decision in D.69231 lhal the skate arena owners slalus vas a
TCP: Applicant would receive a business benefit and compensation from the

27
D.69231 al 4O9.
28
D.69231 al 493. The Connission has ieached a siniIai concIusion vilh iespecl lo fiee
seivice piovided ly ISCs, finding lhal lhe seivice vas foi conpensalion. (=%%
8%#%/ >? <-$ @":%$ =%01 A<-00%; 5/-$1(# @($%1B C? D?>? =E(#6 %# -0?F '",-/#$%/1 AG-0? 5/-$1(#
@($%1B, 49 CaI. I.U.C. 29O (195O), and Richard Chala v. Morris Gordon of Gordons Outlet
=#"/%F %# -0?F Decision No. 57356 in Case No. 6152 (1958), uniepoiled. Oui ieasoning is
also similar the Legislatures when it added Seclion 1751O.1 lo lhe usiness and
Iiofessions Code: As used in this article, sale shall include a gift made with the hope
or expectation of monetary compensation. Thus, a donalion oi a gifl can sliII le
consideied a foin of conpensalion.
R.12-12-O11 COM/MI1/avs !"#!#$%& &%()$)#* 5"-67 89


- 2O -
incieased palionage foi his skale aiena lusiness iesuIling fion lhe
advertising.
29

2.2.3. TNCs Operate on a Prearranged Basis
UnIike laxi cals, vhich nay pick up passengeis via slieel haiIs, IU Code
536O.5 iequiies lhal chailei paily caiiieis opeiale on a pieaiianged lasis.
We find lhal TNCs opeiale on a pieaiianged lasis. IU Code 536O.5 does
not define prearranged, and we are reluctant to impose a minimum time
iequiienenl as sone olhei juiisdiclions have done.
3O
Inslead, ve aie guided ly
the plain meaning of prearranged as something arranged in advance, which
has leen oui cuslon and practice in interpreting prearranged at the
Connission. Ioi exanpIe, oui infoinalion packel foi piospeclive TCI
appIicanls says lhal aII lianspoilalion peifoined ly TCIs nusl le aiianged
lefoiehand, and lhe diivei nusl have a conpIeled vayliII in his oi hei
possession al aII lines duiing lhe liip.
31

We believe TNCs satisfy the prearranged requirement in lvo vays: fiisl,
lefoie a passengei can iequesl a iide, lhe passengei nusl dovnIoad lhe app and
agiee lo lhe TNC seivice agieenenl. LxanpIes can le found in lhe TNC viillen

29
4O9.
3O
Ioi exanpIe, lhe Washinglon Adninislialive Code iequiies lhal foi-hiie vehicIes
nusl le pieaiianged foi al Ieasl 15 ninules. (Washinglon Rev. Code Seclion 3O8-83-
2OO.) The InleinalionaI Associalion of Tianspoilalion ReguIalois issued pioposed
nodeI ieguIalions foi snailphone appIicalions in lhe foi-hiie indusliy and suggesled
that the prearranged or prearrangement should require a minimum of thirty (30)
ninules lelveen lhe iequesl foi lianspoilalion seivice and lhe aiiivaI of lhe vehicIe al
lhe lianspoilation origin location.
31
asic Infoinalion foi passengei caiiieis and appIicanls (Rev. /28/11) issued ly lhe
Tianspoilalion License Seclion of lhe Connission.
R.12-12-O11 COM/MI1/avs !"#!#$%& &%()$)#* 5"-67 89


- 21 -
leins of use.
32
Ulei nakes oui poinl cIeaiIy in ils desciiplion of ils seivice lhal
persons who use the Uber App to request ,/%-//-$.%* #/-$1,"/#-#("$1 have soIe
discretion over whether or not to use the Uber App, if ever.
33
Second, foi a
pailicuIai liip, lhe passengei nusl inpul infoinalion such as cuiienl Iocalion. A
TNC diivei cannol le haiIed Iike a cal vheie no infoinalion is exchanged unliI
lhe passengei enleis lhe vehicIe. As such, each TNC is offeiing lianspoilalion on
a prearranged basis.
Iieaiiangenenl has lypicaIIy leen veiified lhiough lhe use of a vayliII.
TCIs nusl possess a vayliII foi each iide lhal incIudes infoinalion on lhe
drivers name, vehicle license plate number, and time and date when the charter
vas aiianged, and siniIai infoinalion.
34
Iuisuanl lo noie iecenl IegisIalion,
vayliIIs nay le kepl in an eIeclionic foinal leginning }anuaiy 1, 2O14.
35
In
oidei lo conpIy vilh lhe appIicalIe slalules and ieguIalions, aII TNC diiveis
nusl le alIe lo piove lhal a iide vas nalched on lhe TNC soflvaie appIicalion
as evidence of pieaiiangenenl. In olhei voids, infoinalion in lhe soflvaie
appIicalion nusl le lhe equivaIenl of an eIeclionic vayliII.
2.2.4. The Commission Has the Jurisdiction and the Duty
to EstabIish ReguIations Governing the Provision
of TNC Services
ased on lhe iecoid in lhis pioceeding, and as lhe RuIenaking oiiginaIIy
nade cIeai, lhis Connission ieguIales chailei paily passengei caiiieis puisuanl

32
=%% Lxhilils (Ulei), D (SideCai), I (Lyfl), and H (Tickengo) lo lhe Woikshop liief,
fiIed on ApiiI 3 ly TIAC.
33
Iie-Woikshop Slalenenl, 4, fiIed on ApiiI 3, 2O13 ly Ulei. (4#-0('1 added.)
34
CeneiaI Oidei 157-D, Iail 3.O1.
35
=%% IU Code 5381.5.
R.12-12-O11 COM/MI1/avs !"#!#$%& &%()$)#* 5"-67 89


- 22 -
lo AilicIe XII of lhe CaIifoinia Conslilulion and lhe Chailei-party Carriers Acl,
IU Code 5351 %# 1%2? (lhe Acl). Seclion 536O slales in pail:
Subject to the exclusions of Section 5353, charter-paily
carrier of passengers means every person engaged in
lhe lianspoilalion of peisons ly noloi vehicIe foi
conpensalion, vhelhei in connon oi conliacl caiiiage,
ovei any pulIic highvay in lhis slale.
Seclion 5381 slales in pail:
(t)he commission may supervise and regulate every
chailei-paily caiiiei of passengeis in lhe Slale and nay
do all thingsnecessary and convenienl in lhe exeicise
of such povei and juiisdiclion.
We aie peisuaded ly lhe connenls nade ly lhe CHI, TiansIoin, and lo
a ceilain exlenl Lyfl. Oui focus is pulIic safely and secondaiiIy ensuiing lhal
ieguIalions iefIecl changing lechnoIogy and vays of doing lusiness lo ensuie
lhal iuIes aie in pIace lo inpiove lhe Iives of CaIifoinians. We agiee vilh lhe
CHP that a donation for passenger transportation service is equivalent to
diiecl conpensalion foi lhe seivice piovided, vhich faIIs undei lhe juiisdiclion
of lhis Connission. TiansIoin slales in lheii connenls in pail:
TiansIoin leIieves lhal aII peopIe deseive affoidalIe,
safe, and easy access lo jols, housing, seivices, and
naluie on fool, licycIe, oi pulIic lianspoilalion.
TiansIoin envisions lhal in lhe fuluie lianspoilalion
viII le iedefined in leins of access and suslainaliIily,
and iesidenls viII le alIe lo quickIy gel vheie lhey
vanl lo go in vays lhal fuIIy neel lheii needs, vhelhei
lhese needs aie heaIlh, happiness, saving line, oi
saving noney. Oui lianspoilalion syslen viII piovide
lhe pulIic vilh choices lhal anounl lo a syslen lhal is
exceplionaI and slale-of-lhe-ail.
TiansIoin leIieves lhal iideshaie seivices have lhe
polenliaI lo advance seveiaI CaIifoinia poIicy goaIs,
incIuding inpioving lianspoilalion access, ieducing
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- 23 -
gieenhouse gas enissions, ieducing vehicIe niIes
liaveIIed, and ieducing congeslion. When lhe
IegisIaluie passed lhe Iandnaik lianspoilalion Iav
S 375 in 2008, the legislature found that [w]ithout
inpioved Iand use and lianspoilalion poIicy, CaIifoinia
will not be able to achieve the goals of AB 32, the
CIolaI Waining SoIulions Acl. The IegisIaluie aIso
found lhal lhe lianspoilalion secloi conliilules ovei
4O peicenl of lhe gieenhouse gas enissions in lhe Slale
of CaIifoinia, lhe Iaigesl of any secloi, vilh aulonoliIes
and Iighl liucks aIone conliiluling aInosl 3O peicenl.
The CaIifoinia Aii Resouices oaid, in selling iegionaI
gieenhouse gas ieduclion laigels, adopled laigels
requiring each regions SustainabIe Connunilies
Slialegy and RegionaI Tianspoilalion IIan lo achieve
specified ieduclions in lhe lianspoilalion secloi ly lhe
yeais 2O2O and 2O35.
36

We agiee vilh TiansIoin vilh iespecl lo lhe alove lvo poinls.
AddilionaIIy, Lyfl has leen lhe onIy TNC lhal has acknovIedged lhal safely is
nol onIy a piioiily, lul lheie shouId aIso le sone oveiaiching iuIes and
ieguIalions. We appIaud Lyfl foi ils Ieadeiship in lhis aiea and ve ceilainIy
agiee vilh Lyfl in lhis aiea.
Ioi lhe ieasons discussed 1),/-, ve find lhal TNCs aie chailei-paily
passengei caiiieis, and lheiefoie ve viII exeicise oui exisling juiisdiclion
puisuanl lo AilicIe XII of lhe CaIifoinia Conslilulion and lhe Iassengei
Chailei-party Carriers Act, PU Code 5351, %# 1%2? (lhe Acl). AddilionaIIy, lhe
Connission has veiy lioad poveis undei IU Code 7O1 vhich gives lhe
Connission lhe aliIily (via a iuIenaking piocess) lo deveIop nev calegoiies of
ieguIalion vhen a nev lechnoIogy is inlioduced inlo an exisling indusliy. In

36
TiansIoin Opening Connenls fiIed on O1/28/13 al 1.
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- 24 -
lhis Decision, undei lhe lioad gianl of aulhoiily puisuanl lo IU Code 5381
and 7O1, ve cieale lhe calegoiy of Tianspoilalion Nelvoik Conpany (TNC) lo
acconpany lhe exisling calegoiy of TCI.
37
Again, a TNC is defined as an
oiganizalion, vhelhei a coipoialion, pailneiship, soIe piopiieloi, oi olhei foin,
opeialing in CaIifoinia lhal piovides lianspoilalion seivices foi conpensalion
using an onIine-enalIed app oi pIalfoin lo connecl passengeis vilh diiveis
using lheii peisonaI vehicIes. The piinaiy dislinclion lelveen a TNC and olhei
TCIs is lhal a TNC connecls iideis lo diiveis vho diive lheii peisonaI vehicIe,
nol a vehicIe such as a Iinousine puichased piinaiiIy foi a conneiciaI puipose.
To lhal end, a TNC is nol peinilled lo ilseIf ovn vehicIes used in ils opeialion oi
ovn fIeels of vehicIes.
Wilh lhis definilion in nind, lhe Connission finds lhal Ulei (in conliasl
lo UleiX) is nol a TNC. Ulei connecls iideis vilh diiveis vho do nol diive lheii
ovn peisonaI vehicIe, lul lypicaIIy opeiale in lovn cais oi Iinousines, vhich lhe
diivei nay oflen as veII use lo lianspoil cusloneis foi anolhei Iinousine/lovn
cai conpany. As such, Ulei does nol neel lhe definilion of a TNC. As
discussed eIsevheie in lhis Decision, lhe Connission inlends lo open a second
phase of lhis pioceeding (Ihase II) lo considei lhe iuIes appIicalIe lo TCIs in

37
The Connission has pieviousIy deveIoped nev lypes of lianspoilalion seivices vilh
unique iuIes ieIevanl lo lhal specific foin of lianspoilalion. NaneIy, in D.97-O7-O63, lhe
Commission adopt[ed] rules for a new niche form of passenger stage corporation
(ISC) lhal speciaIizes in lhe connon caiiiage of infants and children . . . The
Connission iequiied such caiiieis lo appIy foi a ISC peinil, lul deveIoped a speciaI
sel of iuIes appIicalIe lo lhese foins of lianspoilalion. D.97-O7-O63 slaled, This is a
iesliicled cIass of ISC caiiiei nol pieviousIy designaled ly lhis Connission, and
speciaI iequiienenls need lo be imposed on these carriers. In ciealing lhese nev iuIes,
lhe Connission ieIied on ils lioad povei undei 7O1, and lhe Iassengei-Slage
Coipoialion piovisions of lhe IulIic UliIilies Code 5351.
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- 25 -
CaIifoinia. In oidei lo ensuie lhe giealesl possilIe evidenliaiy iecoid, lhe
Connission vouId piefei lo Ieave aII non-TNC issues, including Ubers
polenliaI TCI slalus, lo Ihase II. UleiX, hovevei, does neel lhe TNC definilion
and nusl appIy foi a TNC Iicense.
A conpany oi individuaI vishing lo piovide lianspoilalion oi faciIilale
lianspoilalion of passengeis can choose lo eilhei gel a TCI ceilificale/peinil oi
a TNC peinil.
38
Iuilhei, TNCs need nol appIy foi a ceilificale of pulIic
convenience and necessily puisuanl lo IU Code 5371. TNCs aie exenpled
fion lhis iequiienenl, as aie nany chailei-paily caiiieis ieguIaled ly lhe
Connission, puisuanl lo IU Code 5384(l), vhich aulhoiizes lhe Connission
lo issue peinils lo passengei caiiiei opeialions vho use onIy vehicIes vilh
sealing capacilies of undei 15-passengeis. TNC peinils viII onIy le gianled lo
conpanies uliIizing snail phone lechnoIogy appIicalions lo faciIilale
lianspoilalion of passengers in the drivers personal vehicle.
Within 45 days after the effective date of this Decision, the Commissions
Safely Lnfoicenenl Division (SLD) viII posl a TNC AppIicalion Iackel on ils
velsile, and TNCs cuiienlIy opeialing in CaIifoinia aie iequiied lo fiIe lheii
TNC AppIicalions vilh SLD 6O days lheieaflei if lhey vish lo conlinue
opeialing. The TCI iequiienenls aie aIieady in pIace, aIlhough as suggesled
1),/- lhe Connission viII open a second phase lo lhis RuIenaking lo updale
lhose iuIes and ieguIalions lo ensuie lhal safely iequiienenls aie up lo dale.
ased on lhe iecoid of lhis pioceeding and lhe safely and olhei conceins
expiessed ly pailies, lhe sellIenenl agieenenls lhal veie enleied inlo vilh Lyfl,

38
Theie is aIso a lhiid choice and lhal is lo appIy foi a laxical Iicense.
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- 26 -
SideCai, and Ulei, and oui exisling TCI iuIes ve have ciealed lhe foIIoving
iuIes and ieguIalions foi aII TNCs. The foIIoving iuIes and ieguIalions shaII le
appIied foi aII TNCs effeclive innedialeIy:
Safety Requirements
a) TNCs shaII nainlain conneiciaI IialiIily insuiance
poIicies pioviding nol Iess lhan $1,OOO,OOO (one
niIIion doIIais) pei-incidenl coveiage foi incidenls
invoIving vehicIes and diiveis vhiIe lhey aie
pioviding TNC seivices. The insuiance coveiage
shaII le avaiIalIe lo covei cIains iegaidIess of
vhelhei a TNC diivei nainlains insuiance adequale
lo covei any poilion of lhe cIain.
39

l) TNC diiveis shaII le iequiied lo piovide pioof of
lolh lheii peisonaI insuiance and lhe conneiciaI
insuiance in lhe case of an accidenl.
c) TNCs shaII peifoin ciininaI lackgiound checks on
each TNC diivei lefoie lhe diivei legins offeiing
seivice. In oidei lo piolecl pulIic safely, any peison
vho has leen convicled, vilhin lhe pasl seven yeais,
of diiving undei lhe infIuence of diugs oi aIcohoI,
fiaud, sexuaI offenses, use of a noloi vehicIe lo
connil a feIony, a ciine invoIving piopeily
danage, and/oi lhefl, acls of vioIence, oi acls of
leiioi shaII nol le peinilled lo piovide TNC
seivices.
d) TNCs shaII inslilule a zeio loIeiance inloxicaling
sulslance poIicy vilh iespecl lo diiveis as foIIovs:
1. The TNC shaII incIude on ils velsile, noliIe
application and riders receipts,
notice/information on the TNCs zero-loIeiance

39
TNCs nusl nake lheii ceilificale of insuiance pulIic and lhe Connission viII pul
lhis ceilificale on ils velsile.
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- 27 -
poIicy and lhe nelhods lo iepoil a diivei vhon
lhe iidei ieasonalIy suspecls vas undei lhe
infIuence of diugs oi aIcohoI duiing lhe couise of
lhe iide.
2. The velsile and noliIe appIicalion nusl incIude
a phone nunlei oi in-app caII funclion and enaiI
addiess lo conlacl lo iepoil lhe zeio-loIeiance
conpIainl.
3. IionplIy aflei a zeio-loIeiance conpIainl is fiIed,
lhe TNC shaII suspend lhe diivei foi fuilhei
invesligalion.
4. The velsile and noliIe appIicalion nusl aIso
incIude lhe phone nunlei and enaiI addiess of
the Commissions Passenger Section: 1-8OO-894-
9444 and CIU_inlakecpuc.ca.gov.
e) TNCs shall obtain each TNC drivers driving record
lefoie lhe diivei legins pioviding seivice and
quaileiIy lheieaflei. Diiveis vilh conviclions foi
ieckIess diiving, diiving undei lhe infIuence, hil and
iun, oi diiving vilh a suspended oi ievoked Iicense
shaII nol le peinilled lo le a TNC diivei. Diiveis
nay have a naxinun of lvo poinls on lheii diiving
iecoids foi Iessei offenses, e.g., equipnenl piolIens,
speeding, oi chiId safely seal vioIalions.
f) TNCs shaII eslalIish a diivei liaining piogian lo
ensuie lhal aII diiveis aie safeIy opeialing lhe
vehicIe piioi lo lhe diivei leing alIe lo offei seivice.
This piogian nusl le fiIed vilh lhe Connission
vilhin 45 days of lhe adoplion of lhis decision.
TNCs nusl iepoil lo lhe Connission on an annuaI
lasis lhe nunlei of diiveis lhal lecane eIigilIe and
conpIeled lhe couise.
g) TNC drivers must possess a valid California drivers
Iicense, le al Ieasl 21 yeais of age, and nusl piovide
al Ieasl one yeai of diiving hisloiy lefoie pioviding
TNC seivices.
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- 28 -
h) TNCs nay onIy use slieel-IegaI coupes, sedans, oi
Iighl-duly vehicIes incIuding vans, ninivans, spoil
uliIily vehicIes (SUVs) and pickup liucks.
Halchlacks and conveililIes aie acceplalIe.
i) TNC diiveis aie piohililed fion lianspoiling noie
lhan 7 passengeis on any given iide.
4O

j) The a used ly a TNC lo connecl diiveis and
passengeis nusl dispIay foi lhe passengei: 1) a
picluie of lhe diivei, and 2) a picluie of lhe vehicIe
lhe diivei is appioved lo use, incIuding lhe Iicense
pIale nunlei lo idenlify lhe vehicIe.
k) TNC vehicIes shaII nol le significanlIy nodified
from factory specifications, e.g., no stretch
vehicIes.
I) Iiioi lo aIIoving each TNC diivei lo opeiale a
vehicIe, and annuaIIy lheieaflei, a TNC nusl inspecl
lhe drivers vehicIe, oi have lhe vehicIe inspecled al
a faciIily Iicensed ly lhe CaIifoinia uieau of
Aulonolive Repaii, and nainlain conpIele
docunenlalion of such inspeclions. A TNC diiveis
vehicIe nusl, al a nininun, pass a 19 poinl
inspeclion piioi lo aIIoving lhe diivei lo opeiale lhe
vehicIe under the TNCs platform:
1. Iool liakes,
2. Lneigency liakes,
3. Sleeiing nechanisn,
4. WindshieId,

4O
If a TNC eIecls lo caiiy insuiance up lo $1.5 niIIion pei incidenl foi aII of ils diiveis,
lhen puisuanl lo IU Code 5391 and CeneiaI Oidei 115-I, lhe TNC vehicIes can
incIude up lo 1O peopIe incIuding lhe diivei. Hovevei, no TNC diivei is peinilled lo
operate a bus, which is defined by California Vehicle Code 233(b) as a vehicle
designed, used, oi nainlained foi caiiying noie lhan 1O peisons, incIuding lhe diivei,
which is used to transport persons for compensation or profit . . .
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- 29 -
5. Reai vindov and olhei gIass,
6. WindshieId vipeis,
7. HeadIighls,
8. TaiI Iighls,
9. Tuin indicaloi Iighls,
1O. Slop Iighls,
11. Iionl seal adjuslnenl nechanisn,
12. Doois (open, cIose, Iock),
13. Hoin,
14. Speedonelei,
15. unpeis,
16. MuffIei and exhausl syslen,
17. Condilion of liies, incIuding liead deplh,
18. Inleiioi and exleiioi ieai viev niiiois, and
19. Safely leIls foi diivei and passengei(s).
ReguIatory Requirements
Ioi aII iepoils idenlified leIov iequiied lo le piovided ly TNCs,
lhe iepoils nusl le veiified. Veiificalion consisls of piovision of a signaluie of a
coipoiale officei of lhe TNC veiifying undei penaIly of peijuiy undei lhe Iavs of
lhe Slale of CaIifoinia lhal lhe iepoil is accuiale and conlains no naleiiaI
onissions.
a. TNCs (nol lhe diiveis) nusl le peinilled ly lhis
Connission lefoie opeialing as a TNC.
41

l. TNCs shaII cIeaiIy discIose, on lheii app and
velsile, lhal TNCs faciIilale iides lelveen

41
Theie aie six lypes of chailei paily caiiiei peinils/ceilificales. TNCs shaII appIy foi
a cIass I peinil.
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- 3O -
passengeis and piivale diiveis using lheii ovn
peisonaI vehicIes. AddilionaIIy, lhe discIosuie
shouId slale lhal each TNC is iequiied lo nainlain
insuiance poIicies pioviding a nininun of
$1,OOO,OOO (one niIIion doIIais) pei-incidenl
coveiage foi incidenls invoIving vehicIes and diiveis
vhiIe lhey aie pioviding TNC seivices.
c. TNC diiveis nay onIy lianspoil passengeis on a
pieaiianged lasis. Ioi lhe puipose of TNC seivices,
a iide is consideied pieaiianged if lhe iide is
soIiciled and accepled via a TNC digilaI pIalfoin
lefoie lhe iide connences. TNC diiveis aie sliiclIy
piohililed fion accepling slieel haiIs.
d. TNCs shaII pailicipale in lhe CaIifoinia Depailnenl
of Motor Vehicles Employer Pull Notice Program to
ollain lineIy nolice vhen any of lhe foIIoving aie
added to a TNC drivers driving record:
i. Conviclions,
ii. Accidenls,
iii. IaiIuies lo appeai,
iv. Drivers license suspension or revocation; and
v. Any olhei aclion laken againsl lhe diiving
piiviIege.
e. TNCs shaII ollain pioof of insuiance fion each TNC
diivei lefoie lhe diivei legins pioviding seivice and
foi as Iong as lhe diivei ienains avaiIalIe lo piovide
seivice.
f. TNCs shaII aIIov passengeis lo indicale vhelhei
lhey iequiie a vheeIchaii-accessilIe vehicIe oi a
vehicIe olheivise accessilIe lo individuaIs vilh
disaliIilies.
g. One yeai fion lhe effeclive dale of lhese iuIes and
annuaIIy lheieaflei, each TNC shaII sulnil lo lhe
Safely and Lnfoicenenl Division a iepoil delaiIing
lhe nunlei and peicenlage of lheii cusloneis vho
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- 31 -
iequesled accessilIe vehicIes, and hov oflen lhe
TNC vas alIe lo conpIy vilh iequesls foi accessilIe
vehicIes.
h. TNC vehicIes shaII dispIay consislenl liade diess
(i.e., dislinclive signage oi dispIay on lhe vehicIe)
vhen pioviding TNC seivices lhal is sufficienlIy
Iaige and coIoi conliasled as lo le ieadalIe duiing
dayIighl houis al a dislance of al Ieasl 5O feel. The
liade diess shaII le sufficienl lo aIIov a passengei,
goveinnenl officiaI, oi nenlei of lhe pulIic lo
associale a vehicIe vilh a pailicuIai TNC (oi Iicensed
lianspoilalion piovidei). AcceplalIe foins of liade
diess incIude, lul aie nol Iiniled lo, synloIs oi
signs on vehicIe doois, ioofs, oi giiIIs. Magnelic oi
ienovalIe liade diess is acceplalIe. TNC shaII fiIe a
phologiaph of lheii liade diess vilh lhe Safely and
Lnfoicenenl Division.
i. AIlhough TNCs nay piovide pIalfoins aIIoving
drivers and passengers to rate each other, TNCs
shaII ensuie lhal such ialings aie nol lased on
unIavfuI disciininalion, and lhal diiveis do nol
disciininale againsl passengeis oi polenliaI
passengeis on lhe lasis of geogiaphic endpoinls of
lhe iide, iace, coIoi, nalionaI oiigin, ieIigion, sex,
disaliIily, age, oi sexuaI oiienlalion/idenlily.
j. One yeai fion lhe effeclive dale of lhese iuIes and
annuaIIy lheieaflei, each TNC shaII sulnil lo lhe
Safely and Lnfoicenenl Division a veiified iepoil
delaiIing lhe nunlei of iides iequesled and
accepled ly TNC diiveis vilhin each zip code vheie
lhe TNC opeiales, and lhe nunlei of iides lhal veie
iequesled lul nol accepled ly TNC diiveis vilhin
each zip code vheie lhe TNC opeiales. The veiified
iepoil piovided ly TNCs nusl conlain lhe alove
iide infoinalion in eIeclionic LxceI oi olhei
spieadsheel foinal vilh infoinalion, sepaialed ly
coIunns, of lhe dale, line, and zip code of each
iequesl and lhe conconilanl dale, line, and zip code
R.12-12-O11 COM/MI1/avs !"#!#$%& &%()$)#* 5"-67 89


- 32 -
of each iide lhal vas sulsequenlIy accepled oi nol
accepled. In addilion, foi each iide lhal vas
iequesled and accepled, lhe infoinalion nusl aIso
conlain a coIunn lhal dispIays lhe zip code of vheie
lhe iide legan, a coIunn vheie lhe iide ended, lhe
niIes liaveIIed, and lhe anounl paid/donaled.
AIso, each iepoil nusl conlain infoinalion
aggiegaled ly zip code and ly lolaI CaIifoinia of lhe
nunlei of iides iequesled and accepled ly TNC
diiveis vilhin each zip code vheie lhe TNC
opeiales and lhe nunlei of iides lhal veie
iequesled lul nol accepled ly TNC diiveis.
k. One yeai fion lhe effeclive dale of lhese iuIes and
annuaIIy lheieaflei, each TNC shaII sulnil lo lhe
Safely and Lnfoicenenl Division a veiified iepoil in
eIeclionic LxceI oi olhei spieadsheel foinal
delaiIing lhe nunlei of diiveis lhal veie found lo
have connilled a vioIalion and/oi suspended,
incIuding a Iisl of zeio loIeiance conpIainls and lhe
oulcone of lhe invesligalion inlo lhose conpIainls.
Lach TNC shaII aIso piovide a veiified iepoil, in
eIeclionic LxceI oi olhei spieadsheel foinal, of each
accidenl oi olhei incidenl lhal invoIved a TNC
diivei and vas iepoiled lo lhe TNC, lhe cause of lhe
incidenl, and lhe anounl paid, if any, foi
conpensalion lo any paily in each incidenl. The
veiified iepoil viII conlain infoinalion of lhe dale of
lhe incidenl, lhe line of lhe incidenl, and lhe anounl
that was paid by the drivers insurance, the TNCs
insuiance, oi any olhei souice. AIso, lhe iepoil viII
piovide lhe lolaI nunlei of incidenls duiing lhe
yeai.
I. One yeai fion lhe effeclive dale of lhese iuIes and
annuaIIy lheieaflei, each TNC shaII sulnil lo lhe
Safely and Lnfoicenenl Division a veiified iepoil
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- 33 -
delaiIing lhe aveiage and nean nunlei of houis
and niIes each TNC diivei spenl diiving foi lhe
TNC.
42

n. Upon iequesl, diiveis shaII dispIay lo Connission
oi aiipoil enfoicenenl officeis, Iav enfoicenenl, oi
cily oi counly officiaIs a physicaI oi eIeclionic iecoid
of a iide in piogiess sufficienl lo eslalIish lhal il vas
pieaiianged. To lhe exlenl lhal liip iecoids aie
conlained on eIeclionic devices, TNC diiveis aie nol
iequiied lo ieIinquish cuslody of lhe devices in
oidei lo nake lhe iequiied dispIay.
n. If a passengei fiIes a conpIainl againsl a TNC oi
TNC diivei vilh lhe Connission, Connission slaff
shaII have lhe iighl lo inspecl TNC iecoids and
vehicIes as necessaiy lo invesligale and iesoIve lhe
conpIainl lo lhe sane exlenl lhe Connission and
Connission slaff is peinilled lo inspecl aII olhei
chailei-paily caiiieis.
o. Opeialions al Aiipoils. TNCs shaII nol conducl any
opeialions on lhe piopeily of oi inlo any aiipoil
unIess such opeialions aie aulhoiized ly lhe aiipoil
aulhoiily invoIved.
p. SiniIai lo oui ieguIalions ovei Iinousines one-lhiid
of one peicenl of lhe lolaI ievenues fion TNC
seivices in CaIifoinia shaII le coIIecled ly lhis
Connission on a quaileiIy lasis as pail of oveiaII
fees.
The Connission viII convene a voikshop one yeai aflei lhe issuance of
lhis decision lo heai fion aII slakehoIdeis on lhe inpacls of lhis nev node of
lianspoilalion and lhe acconpanying ieguIalions. Woikshops lopics viII

42
Ioi lhe iequesled iepoiling iequiienenls, TNCs shaII fiIe lhese iepoils confidenliaIIy
unIess in Ihase II of lhis decision ve iequiie pulIic iepoiling fion TCI conpanies as
veII.
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- 34 -
incIude, lul nol necessaiiIy le Iiniled lo, a consideialion of safely, conpelilion,
innovalion, accessiliIily, congeslion, lhe CaIifoinia LnviionnenlaI QuaIily Acl,
and olhei poIIulion ieIaled issues. SpecificaIIy, lhe Connission viII le
inleiesled lo gel an updale on TNCs conneiciaI insuiance poIicies and hov
lhese poIicies have peifoined. The Connission nay choose lo open a nev
pioceeding lo updale ils iuIes lased on lhe infoinalion Ieained in lhis
voikshop.
TNCs lhal faiI lo adheie lo lhese iequiienenls nay have lheii peinils
ievoked oi le olheivise suljecl lo sanclions ly lhe Connission. The
Connission is aulhoiized lo conducl inspeclions of chailei-paily caiiieis
including TNCs. For instance, PU Code 5371.5 states that: Upon receipt of a
conpIainl conlaining sufficienl infoinalion lo vaiianl conducling an
invesligalion, lhe connission shaII invesligale any lusiness lhal adveilises
Iinousine-foi-hiie oi passengei chailei lianspoilalion seivice foi conpensalion
in motor vehicles. Therefore, each TNC nusl keep iecoids of aII liips nade ly
ils TNC drivers. The Commission is also authorized to cancel, revoke, or
suspend any operating permit or certificate if the carrier violates any of the
piovisions of lhe Acl, piovisions of lhe opeialing peinil oi ceilificale issued
lheieundei, oi any oidei, decision, iuIe, ieguIalion, diieclion, denand, oi
iequiienenl eslalIished ly lhe Connission.43 The Connission is aIso
aulhoiized lo issue fines.
44

Seclions 5411 lo 542O of lhe Acl conlain ieIevanl piovisions iegaiding
issuing fines and penaIlies. In addilion, lhe Connission has eslalIished a

43
IU Code 5378.
44
=%% %?.?F IU Code 5378(l).
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cilalion piogian in ResoIulion AL}-187, vhich piovides a piocess ly vhich lhe
Connission nay issue fines, caiiieis nay appeaI fines, and lhe Connission
nay hoId a heaiing puisuanl lo lhal appeaI.
These piovisions aulhoiizing lhe Connission lo inspecl, invesligale, and
issue fines and olhei penaIlies appIy in equaI neasuie lo aII TNCs as lhey do lo
olhei chailei-paily caiiieis. Theiefoie, lhe Connission nusl have access lo a
TNCs records whenever it requesls lhen.
Iailies have iaised a nunlei of conceins iegaiding lhe Teins &
Condilions used ly ceilain TNCs, vhich incIude geneiaI discIaineis of IialiIily.
No Term & Condition in a TNCs Terms of Service or elsewhere, can be
inconsislenl vilh lhis decisions conneiciaI IialiIily insuiance iequiienenls foi
TNCs. Noi can any Tein & Condition in a TNCs Terms of Service le used oi
ieIied on ly lhe TNC lo deny insuiance coveiage, oi olheivise evade lhe
insuiance iequiienenls eslalIished in lhis decision. Moieovei, lhe Teins of
Seivice does nol alsoIve lhe TNC of ils iesponsiliIilies lo conpIy vilh lhe slaled
ieguIalions in lhis decision lo ensuie safely of lhe pulIic. As slaled eaiIiei in lhis
decision, lhe Connission viII open a Ihase II lo considei updaling ils
ieguIalions ovei TCI ceilificale hoIdeis. Ihase II viII aIso considei lhe slandaid
and appiopiiale Ianguage foi Teins & Condilions foi lolh TCI and TNC
ceilificale hoIdeis.
3. Safety
The Connission opened lhis pioceeding lo piolecl pulIic safely and
secondaiiIy encouiage innovalois lo use lechnoIogy lo inpiove lhe Iives of
CaIifoinians. The Connission has a iesponsiliIily foi deleinining vhelhei and
hov pulIic safely nighl le affecled ly lhese TNCs. In opening lhis RuIenaking,
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- 36 -
lhe Connission vanled lo assess pulIic safely iisks, and lo ensuie lhal lhe
safely of lhe pulIic is nol conpionised in lhe opeialion of TNCs.
3.1. Comments on the RuIemaking
As vilh lhe issue of juiisdiclion a nunlei of pailies fiIed connenls aloul
lhe effecl of TNC seivice on pulIic safely. In lhis seclion ve viII sunnaiize aII
lhe posilions fiIed.
The CHI asseils lhal il is loo eaiIy lo deleinine lhe effecl of lhis lype of
seivice on lolh lhe passengeis and pulIic safely. Il goes on lo caulion, hovevei,
lhal passengei lianspoilalion Iefl unieguIaled unnecessaiiIy incieases lhe
polenliaI foi opeialion of unsafe vehicIes, unquaIified diiveis, and uninsuied
lianspoilalion diiveis.
45

Luxor Cabs comments focus more on the need to keep drivers safe. Luxor
Cal asseils lhal laxical diiveis have lhe highesl iisk of occupalionaI honicide of
aII US occupalions, and lhal lhis is vhy laxi ieguIalois iequiie safely equipnenl
such as luIIel-iesislanl paililions and digilaI secuiily caneias, as veII as ciine-
pievenlion liaining foi diiveis.
46

The CCLA leIieves lhal lhe lianspoilalion lechnoIogy conpanies can pul
lhe pulIic al iisk of polenliaI dangeis aiising fion having unieguIaled and
peihaps even unIicensed diiveis and unsafe vehicIes pioviding foi-hiie
lianspoilalion seivices vilhoul oveisighl oi enfoicenenl.
47

The San Iiancisco Aiipoil Connission leIieves lhal Iack of adequale
IialiIily insuiance, ciininaI lackgiound checks, diivei liaining and ieguIai

45
CHI Connenls fiIed on 7/17/13 al 2.
46
Luxoi Cal Connenls fiIed on O1/28/13 al 2.
47
CCLA Connenls fiIed on O1/28/13 al 2.
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- 37 -
vehicIe inspeclions aII deciease pulIic safely, and aIlhough sone TNCs iepiesenl
lhal lhey do aII of lhe alove, lhe Aiipoil Connission is asking foi ieguIaloiy
veiificalion.
48

The SIMTA asseils lhal TNCs have a negalive effecl on pulIic safely
lecause of a Iack of ieguIaloiy oveisighl. The SIMTA asseils lhal al lhe slale
and IocaI IeveI, CaIifoinia ieguIalois of laxi and Iinousine seivice piolecl lhe
pulIic vilh lhe foIIoving kinds of iequiienenls:
1. CiininaI lackgiound checks of diiveis,
2. Diug and aIcohoI lesling of diiveis,
3. DMV pull notice checks to enable suspension of
diiveis vilh nev safely ieIaled noving vioIalions,
4. Diivei liaining foi IocaI geogiaphy, liaffic safely and
cuslonei seivice vaIues,
5. VehicIe age and niIeage Iinilalions,
6. Rouline, piofessionaI vehicIe inspeclions, and
7. Tianspaienl piicing ieguIalions.49
The San Iiancisco Cal Diiveis Associalion asseils lhal lhe pioIifeialion
and acceplance of piivale vehicIes and unIicensed pulIic passengei diiveis foi
hiie cieales a faIse sense of liusl ly lhe geneiaI pulIic. Iuilheinoie, il asseils
lhal lhey aie vilnessing piivale vehicIes leing fIagged dovn and soIiciling
passengeis on lhe slieel vhich viII iesuIl in an assauIl oi voise, on a passengei
oi a diivei, unpiolecled ly secuiily caneias, dispalch oi a shieId, and no ieadiIy
idenlifialIe naikings on lhe vehicIe.
5O


48
San Iiancisco Aiipoil Connission Opening Connenls fiIed on O1/28/13 al 2.
49
SIMTA Opening Connenls fiIed on O1/28/13 al 8.
5O
San Francisco Cab Associations Opening Comments filed on 01/29/13 at 2.
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- 38 -
In lheii connenls, Lyfl noles lhal iideshaiing is nolhing nev and has leen
occuiiing on a ieIaliveIy Iaige scaIe foi nany decades fion casuaI caipooIs and
luIIelin loaids lo noie iecenl on-Iine foiuns vilhoul any ieguIalion and vilh
fev if any inslilulionaI safely nechanisns. Lyfl goes on lo say lhal ialhei lhan
ciealing a nev aclivily iequiiing sciuliny as a pulIic safely concein, iesponsilIe
peei-lo-peei pIalfoins such as Lyfl have inlioduced innovalive and highIy
effeclive inslilulionaI safely nechanisns lhal inciease pulIic safely ovei exisling
aIleinalives. Nev looIs nade avaiIalIe ly nodein lechnoIogies onIine ciininaI
lackgiound checks, noliIe appIicalion pholo idenlificalion, and CIolaI
Iosilioning Syslen (CIS) posilioning can advance pulIic safely leyond
exisling neasuies.
51

SideCai asseils lhal TNCs aie nission-diiven and have sliong incenlives
lo piolecl lhe liusl and safely of lheii connunilies and lhe pulIic. SideCai goes
on lo cIain lhal ils safely piogian and iuIes ain lo ieduce and pievenl accidenls
oi olhei incidenls, and il has inpIenenled a 1O-poinl safely piogian lo cieale a
safe expeiience foi diiveis and iideis aIike. Undei lhis safely piogian, aII
diiveis aie iequiied lo undeigo lhoiough lackgiound checks and safely
liaining.
52

Uniled Taxical Woikeis asseil lhal TNCs piovide seivice lhiough non-
piofessionaI diiveis of piivale vehicIes, and since lhey cIain lhal lhey aie nol
ieguIaled ly lhe slale oi IocaI aulhoiilies, lhe pulIic can onIy lake lhe void of
lhe conpany. Uniled Taxical Woikeis go on lo nole lhal safely is lhe paianounl
concein in lhe laxi ieguIalion and lhal laxis aie inspecled ieguIaiIy and aie

51
Lyfl Opening Connenls fiIed on O1/28/13 al 4-5.
52
SideCai Opening Connenls fiIed on O1/28/13 al 17.
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- 39 -
suljecl lo age and niIeage iequiienenls. Iuilheinoie, diiveis ieceive liaining
and nusl go lhiough lackgiound checks piioi lo leconing a laxi diivei.
53

In ils connenls, TIAC asseils lhal lhe piinaiy ieason foi ieguIalion of lhe
passengei lianspoilalion indusliy is lhe need lo ensuie safely. Il goes on lo say
lhal pulIic safely is pionoled lhiough lhe scieening of diiveis, and ly ensuiing
lhal lhose vho lake on lhe iesponsiliIily of lianspoiling passengeis can le heId
accounlalIe foi lheii aclions.
54

3.2. Discussion
We agiee lhal piolecling and enhancing pulIic safely is lhe paianounl
puipose lehind ieguIaling lhis indusliy. We inilialed lhis RuIenaking foi lhe
soIe puipose of deleinining hov TNCs affecl pulIic safely. We fuilhei agiee
vilh lhe CHI, lhe San Iiancisco Aiipoil Connission, lhe SIMTA, and olhei
pailies vho have uiged us lo adopl safely iuIes and ieguIalions lhal viII hoId
TNCs accounlalIe foi safely. We aIso agiee vilh Lyfl lhal iideshaiing is nolhing
nev and has leen occuiiing on a ieIaliveIy Iaige scaIe foi nany decades fion
casuaI caipooIs and luIIelin loaids lo noie iecenl on-Iine foiuns. We nole,
hovevei, lhal lheie is a specific exenplion foi lhe liue foin of iideshaiing in lhe
IU Code. IU Code 5353(h) exenpls:
Tianspoilalion of peisons lelveen hone and voik
Iocalions oi of peisons having a connon voik-ieIaled liip
in a vehicIe having a sealing capacily of 15 passengeis oi
Iess, incIuding lhe diivei, vhich aie used foi lhe puipose
of iideshaiing, as defined in Seclion 522 of lhe VehicIe
Code, vhen lhe iideshaiing is incidenlaI lo anolhei
puipose of lhe diivei.

53
Uniled Taxical Woikeis Opening Connenls fiIed on O1/29/13 al 4-5.
54
TIAC Opening Connenls fiIed on O2/O4/13 al 6.
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- 4O -
The seclion aIso slales:
This exenplion does nol appIy if lhe piinaiy puipose foi
lhe lianspoilalion of lhose peisons is lo nake a piofil.
Profit, as used in this subdivision does not include the
iecoveiy of acluaI cosls incuiied in ovning and opeialing
a vanpooI vehicIe, as defined in Seclion 668 of lhe VehicIe
Code.
In oui viev lhe Connission fiinIy leIieves lhal TNCs do nol neel lhe
iideshaie exenplion and acluaIIy aie pioviding lianspoilalion seivices foi
conpensalion.
Lyfl and SideCai have lolh enleied inlo sellIenenl agieenenls vilh lhe
Commissions Safety and Enforcement Division as stated above and have
conpIied vilh lhe safely iequiienenls in lhose agieenenls. Theiefoie, il is nol
enliieIy coiiecl lo slale (as sone pailies have in lheii connenls) lhal lhe pulIic
must only rely on the companys word. These agreements, however, are interim
aiiangenenls pending lhe concIusion of lhis RuIenaking. Theiefoie, in lhis
decision ve adopl sliicl safely ieguIalions and guideIines lhal aie siniIai in
naluie and in sone cases noie sliingenl lhan cuiienl and pasl piaclice in lhe
lianspoilalion indusliy as a vhoIe. The ieguIalions foi TNCs viII iequiie lhe
conpany lo conducl ciininaI lackgiound checks, eslalIish a diivei liaining
piogian, nainlain a zeio-loIeiance poIicy on diugs and aIcohoI, iegislei in lhe
Depailnenl of Moloi VehicIe (DMV) IuII Nolice piogian, conducl a 19-poinl
cai inspeclion, and iequiie a one-yeai diiving hisloiy fion lhe diivei. These
ieguIalions aIong vilh olhei iequiienenls aie slaled alove in lhe sunnaiy
seclion as veII as lhe juiisdiclion seclion.
Regaiding lhe ciininaI lackgiound checks, ve viII iequiie each TNC lo
conducl a ciininaI lackgiound check foi each diivei piioi lo lhal appIicanl
leconing a TNC diivei. The ciininaI lackgiound check nusl le a nalionaI
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- 41 -
ciininaI lackgiound check incIuding lhe nalionaI sex offendei dalalase. The
criminal background check should be using the applicants social security
number and not just the applicants name. Any felony criminal conviclion
vilhin seven yeais piioi lo lhe dale of lhe lackgiound check foi vioIenl ciine, a
sexuaI offense, a ciine invoIving piopeily danage, and/oi lhefl viII nake lhe
appIicanl ineIigilIe lo le a TNC diivei.
Regaiding lhe 19-poinl vehicIe inspeclion, ve iequiie lhe TNC oi an
aulhoiized lhiid paily faciIily Iicensed ly lhe CaIifoinia uieau of Aulonolive
Repaii lo conducl lhe cai inspeclions and foi lhe TNC lo nainlain lhe iecoid of
such inspeclions in case of an audil.
Regaiding lhe DMV IuII Nolice Iiogian, ve aie avaie lhal lhe CaIifoinia
DMV does nol cuiienlIy peinil TNCs lo enioII non-enpIoyee diiveis in lhe
LnpIoyei IuII Nolice Iiogian. We aie aIso avaie lhal il vas eslalIished lo
piovide enpIoyeis and ieguIaloiy agencies vilh a neans of pionoling diivei
safely lhiough lhe ongoing ieviev of diivei iecoids. An enpIoyei enioIIed in
lhe piogian is assigned a iequeslei code. The iequeslei code is added lo an
enpIoyee's diivei Iicense (DL) iecoid. When an enpIoyee's DL is updaled lo
iecoid an aclion/aclivily, a check is nade eIeclionicaIIy lo deleinine if a puII
nolice is on fiIe. If lhe aclion/aclivily is one lhal is specified lo le iepoiled undei
lhe piogian, a diivei iecoid is geneialed and naiIed lo lhal enpIoyei. The
DMV IuII Nolice piogian aIIovs a lianspoilalion conpany lo noniloi DL
iecoids of enpIoyees. This noniloiing acconpIishes lhe foIIoving:
Inpioves pulIic safely,
Deleinines if each diivei has a vaIid DL,
ReveaIs piolIen diiveis oi diiving lehavioi, and
HeIps lo nininize lhe liansportation companys liability.
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- 42 -
The Connission legan enioIIing ovnei opeialois inlo lhis piogian in
199O. We aie siniIaiIy hopefuI lhal lhe DMV is alIe lo anend lhe iequiienenls
of lhe piogian lo aIIov TNCs lo pailicipale aulonalicaIIy in lhe piogian once
lhey have conpIeled lhe olhei iequiienenls foi lhe diivei lo legin pioviding
seivice. SpecificaIIy, ve encouiage lhe DMV lo nodify lhe Ianguage aloul
enpIoyeis leing lhe onIy enlily lo quaIify foi lhis aulonalic seivice. We
undeisland lhal cuiienlIy TNCs can nanuaIIy enlei inlo lhe piogian, lul
aulonalic enioIInenl inpioves pulIic safely in lhal lhe nolificalion lo TNCs viII
le aulonalic and lineIy. We aie hoping lo voik vilh lhe DMV lo find a
soIulion lhal inpioves pulIic safely as ve have added nev iuIes and ieguIalions
lo aIIov TNCs lo piovide lianspoilalion seivices. UnliI lhe DMV LnpIoyei IuII
Nolice Iiogian is avaiIalIe foi use ly TNCs, TNCs shaII peifoin, piioi lo
aIIoving a diivei on lhe pIalfoin and quaileiIy lheieaflei, diiving iecoid checks
lhiough lhe DMV in oidei lo ensuie lhal diiveis neel appIicalIe iequiienenls.
The DMV check ciileiia shaII piovide lhal a usei nay have no noie lhan lhiee
poinls vilhin lhe pieceding lhiee years, no major violations (reckless driving,
hil and iun, oi diiving vilh a suspended Iicense conviclion) vilhin lhe pieceding
lhiee yeais, and no diiving undei lhe infIuence conviclion vilhin lhe pasl seven
yeais.
Regaiding lhe accessiliIily pIan vhich each TNC is iequiied lo fiIe vilhin
45 days of lhe issuance of lhis decision, each pIan shaII incIude lhe foIIoving:
a. A lineIine foi nodifying apps so lhal lhey aIIov
passengeis lo indicale lheii access needs, incIuding lul nol
Iiniled lo lhe need foi a vheeIchaii accessilIe vehicIe. A
passengei shouId le aIIoved lo slale olhei access needs,
eilhei fion a diop-dovn nenu vilh ioon foi connenls oi
lhiough a fieId iequesling infoinalion.
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- 43 -
l. A pIan foi hov lhe TNC viII voik lo piovide appiopiiale
vehicIes foi passengeis vho specify access needs,
incIuding lul nol Iiniled lo a pIan lo piovide incenlive lo
individuaIs vilh accessilIe vehicIes lo lecone TNC
diiveis.
c. A lineIine foi nodifying apps and TNC velsiles so lhal
lhey neel accessiliIily slandaids. The ieIevanl slandaid
foi vel access is WCAC 2.O AA. Cuidance on accessiliIily
slandaids foi iIhone apps can le found al
hllp://deveIopei.appIe.con/Iiliaiy/ios/docunenlalion/
UseiLxpeiience/ConcepluaI/iIhone AccessiliIily and
hllp://deveIopei.appIe.con/Iiliaiy/ios/docunenlalion/
UseiLxpeiience/ConcepluaI/iIhone AccessiliIily/Making
AppIicalion AccessilIe/Making AppIicalion
AccessilIe.hlnI. Cuidance on accessiliIily slandaids foi
Andioid apps can le found al
hllp://deveIopei.andioid.con/liaining/accessiliIily/acce
ssilIe-app.hlnI.
d. A lineIine foi nodifying apps so lhal lhey aIIov
passengeis lo indicale lhal lhey aie acconpanied ly a
seivice aninaI, and foi adopling a poIicy lhal seivice
aninaIs viII le acconnodaled.
e. A plan for ensuring that drivers review of customers wilI
nol le used in a nannei lhal iesuIls in disciininalion,
incIuding any poIicies lhal viII le adopled and any
noniloiing lhal viII lake pIace ly lhe TNC lo enfoice lhis
iequiienenl.
Lach aspecl of lhe accessiliIily pIan viII le addiessed in lhe annuaI iepoils
iequiied of each TNC iegaiding conpIiance, necessaiy inpiovenenls (if any)
and addilionaI sleps lo le laken ly lhe TNC lo ensuie lhal lheie is no divide
lelveen seivice piovided lo lhe alIe and disalIed connunilies. These iepoils
viII le seived ly SLD on lhe seivice Iisl foi lhis pioceeding, and inpul fion
inlerested parties will be invited. Based on SEDs review of the annual reports as
veII as inpul fion inleiesled pailies, lhe Connission viII deleinine vhal, if
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- 44 -
any, changes need lo le nade in lhe TNC lusiness nodeI, oi nev ieguIalions
adopled, in oidei lo ensuie lhal TNCs aie accessilIe lo, and do nol disciininale
againsl, peisons vilh disaliIilies.
4. Ridesharing
The definilion of iideshaiing does nol peinil lianspoilalion peifoined foi
piofil.
55
Recoveiy of acluaI cosls incuiied onIy appIies lo vanpooI vehicIes,
vhich is defined ly lhe VehicIe Code as sealing noie lhan 1O passengeis, lul
Iess lhan 15 passengeis, incIuding lhe diivei. The Connission soughl connenl
on whether the TNCs business modeIs quaIify as iideshaiing foi lhe puipose of
lhe IU Code 5353(h) exenplion and, vilh iespecl lo ils passengei caiiiei
ieguIalion, vhelhei lhe Connission shouId ieconnend a lioadei oi naiiovei
definilion of iideshaiing lhan lhal conlained in lhe CaIifoinia VehicIe Code.
4.1. Comments on the RuIemaking
Vaiious pailies fiIed connenls in iesponse lo lhe queslions asked in lhe
RuIenaking. This seclion viII sunnaiize aII lhe vaiious posilions. We nay nol
cile eveiy paily lhal fiIed connenls, lul ve viII cile eveiy posilion.
Opening connenls fiIed ly foinei San Iiancisco Mayoi WiIIie L. iovn
}i. pioposes a nandaloiy cap on TNC diivei eainings and an updaled definilion
lhal incIudes lhis cap in lhe IU Code 5353 (f).
56
These connenls fuilhei slale
lhal lhe issue foi siles such as Tickengo and 511.oig is lhal lheie is no cIeai
definilion of vehicIes caiiying passengeis on a nonconneiciaI enleipiise lasis,
and lhal a cIeai definilion of iideshaiing vouId heIp eIininale confusion vilh
TCIs, fiII enply seals in cais, and ieduce poIIulion and congeslion vhiIe

55
RuIenaking al 7.
56
Connenls fion WiIIie iovn fiIed on O1/18/13 al 1-2.
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- 45 -
Ioveiing lhe cosl of dooi-lo-dooi lianspoilalion.
57
Tickengo pioposes lhal ve
Iinil lhe naxinun shaie-lhe-expense caipooI anounl diiveis can coIIecl on a
yearly basis to the American Automobile Associations (AAA) officiaI annuaI
cosl of vehicIe ovneiship (cuiienlIy $8,776 pei yeai).
58

Luxoi Cal, on lhe olhei hand, asseils lhal lhe slaluloiy definilion of
iideshaiing is adequale, lul vhal is Iacking is conpIiance vilh ieguIalions ly
unIicensed foi-hiie TNCs.
59
Luxoi Cal fuilhei connenls lhal Iegilinale
iideshaiing does nol incIude lhe lianspoilalion of a passengei on a liip lhe
diivei vas nol olheivise pIanning lo lake. Luxoi asseils lhal il is lhe veiy naluie
of laxical seivice lhal lhe iide is offeied on denand and in accoidance vilh lhe
passengers desired location. Finally, Luxor Cab comments that the amount of
conpensalion shouId nol deleinine lhe need foi conpIiance vilh ieguIalions,
lul ialhei il is lhe naluie of lhe seivice lhal oughl lo le deleininalive.
6O

The SIMTA asseils lhal lheie is no ieason foi lhe Connission lo change
lhe definilion of iideshaiing undei lhe VehicIe Code in oidei lo acconnodale
foi-piofil lianspoilalion seivices deIiveied lhiough snailphone appIicalions. Il
fuilhei asseils lhal there is nothing about the new business model of offering
foi-hiie lianspoilalion seivices lhiough lhe nechanisn of a snailphone
appIicalion lhal juslifies alandoning lhe fundanenlaI ieguIaloiy infiasliucluie
of lhe lianspoilalion foi-hiie indusliy, oi lhal changes lhe IeveI of ieguIaloiy
concein vhen nenleis of lhe pulIic pIace lhenseIves in lhe caie and conlioI of

57
Connenls of WiIIie iovn fiIed on O1/18/13 al 2.
58
Connenls of WiIIie iovn fiIed on O1/18/13 al 3.
59
Luxoi Cal connenls fiIed on O1/28/13 al 3.
6O
Luxoi Cal connenls fiIed on O1/28/13 al 3.
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- 46 -
a piivale individuaI vho lhey pay lo caiiy lhen safeIy lo lheii deslinalion in a
noloi vehicIe ovei lhe pulIic iighl of vay.
61

Lyfl asseils lhal lhe Connission is ieading lhe IU Code loo naiiovIy and
ieconnends lhal lhe Connission expIicilIy acknovIedge and cIaiify lhal: 1) a
voIunlaiy donalion, iegaidIess of lhe anounl, does nol conslilule
compensation as the term is used in 5360 and that 2) the primary purpose
of any diivei lhal onIy ieceives voIunlaiy donalions fion iideis and no olhei
pay from the company operating the rideshare platform is not to make a profit,
as defined in 5353(h). Lyfl aIso suggesls lhal lhe Connission considei
ieconnending lhal lhe LegisIaluie cIaiify oi lioaden lhe definilion of
iideshaiing.
62

SideCai uiges lhe Connission lo cIaiify lhe iideshaie exenplion in
IU Code 5353(h) and establish a bright line safe harbor for ridesharing
diiveis and aulhenlic peei-lo-peei iideshaie lechnoIogy piovideis. Il goes on lo
say lhal vhiIe lhe IulIic UliIilies Code cuiienlIy has no piovision foi lhe
iecoveiy of lhe cosls incuiied in ovning and opeialing a vehicIe, excepl a
vanpooI vehicIe, SideCai leIieves lhal a slandaid shouId le adopled foi
iideshaiing in ieguIai passengei vehicIes.
63

The San Iiancisco Cal Diiveis Associalion asseils lhal lusinesses Iike
Sidecai and Lyfl cIeaiIy do nol quaIify foi exenplion fion chailei caiiiei Iavs
undei lhe definilion of iideshaiing as defined in 522 of lhe VehicIe Code. This
lianspoilalion is nol lelveen hone and voik Iocalions oi of peisons having a

61
SIMTA connenls fiIed on O1/28/13 al 9.
62
Lyfl connenls fiIed on O1/28/13 al 7.
63
SideCai connenls fiIed on O1/28/13 al 11.
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- 47 -
connon voik-ieIaled liip. The soIe puipose of lhese liips is lo convey
passengeis lo lheii iequesled deslinalion, foi piofil.
64

IATR asseils lhal vhiIe lhe IU Code exenpls fion ieguIalion passengei
vehicles that carry passengers on a noncommercial enterprise basis, this term is
nol defined. Il goes on lo say lhal TNCs faiI lo neel lhe definilion foi
iideshaiing (as lhey opeiale oulside of sliiclIy voik and hone Iocalions, and
lianspoil passengeis on liips lhal aie NOT incidenlaI lo lhe diivei) and faiI lo
quaIify foi lhe Connission exenplion lecause lhey aie opeialing foi
piofil/conpensalion.
65
IATR fuilhei suggesls lhal lhe definilion of iideshaiing
le naiioved vheieas Lyfl says lhal lhe Connission is ieading lhe definilion loo
naiiovIy. IATR says lhal lhe Connission shouId acl lo cIaiify lhe ieguIaloiy
exenplion and lo nake cIeai lhal lo quaIify foi lhe exenplion, a diivei is
piohililed fion naking any piofil and/oi accepling conpensalion.
66

The CHP asserts that the term ridesharing is a lein-of-ail vilhin lhe
Iexicon of lianspoilalion nolvilhslanding lhe vehicIe used, iideshaiing is
essenliaIIy deened lo le ieseived foi Iike-ninded individuaIs vilh a
lianspoilalion nolivalion incidenlaI lo anolhei puipose and nol sealed in
piofil-naking deiived fion lhe lianspoilalion.
67


64
San Iiancisco Cal Diiveis Associalion connenls fiIed on O1/28/13 al 3.
65
IATR Connenls fiIed on O1/28/13 al 4.
66
IATR Connenls fiIed on O1/28/13 al 5.
67
CHI connenls fiIed on 7/17/13 al 4-5.
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- 48 -
4.2. Discussion
We agiee vilh lhe vasl najoiily of lhe pailies lhal fiIed connenls lhal
TNCs do nol quaIify foi lhe iideshaie exenplion undei IU Code 5353(h).
IU Code 5353(h) exenpls fion Connission ieguIalion:
Tianspoilalion of peisons lelveen hone and voik
Iocalions oi of peisons having a connon voik-ieIaled liip
puipose in a vehicIe having a sealing capacily of
15 passengeis oi Iess, incIuding lhe diivei, vhich aie used
foi lhe puipose of iideshaiing, as defined in Seclion 522 of
lhe VehicIe Code, vhen lhe iideshaiing is incidenlaI lo
anolhei puipose of lhe diivei. This exenplion aIso appIies
lo a vehicIe having a sealing capacily of noie lhan
15 passengeis if lhe diivei fiIes vilh lhe connission
evidence of IialiIily insuiance pioleclion in lhe sane
anounl and in lhe sane nannei as iequiied foi a
passengei slage coipoialion, and lhe vehicIe undeigoes
and passes an annuaI safely inspeclion ly lhe Depailnenl
of lhe CaIifoinia Highvay IalioI. The insuiance fiIing
shaII le acconpanied ly a one-line fiIing fee of
sevenly-five doIIais ($75). This exenplion does nol appIy
if lhe piinaiy puipose foi lhe lianspoilalion of lhose
peisons is lo nake a piofil. "Iiofil," as used in lhis
suldivision, does nol incIude lhe iecoveiy of lhe acluaI
cosls incuiied in ovning and opeialing a vanpooI vehicIe,
as defined in Seclion 668 of lhe VehicIe Code.
68


68
Vehicle Code 522 defines ridesharing as two or more peisons liaveIing ly any
node, incIuding, lul nol Iiniled lo, caipooIing, vanpooIing, lus pooIing, laxi pooIing,
jitney, and public transit.
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- 49 -
Seclion 5353(h) piovides lvo oppoilunilies lo quaIify foi lhe iideshaie
exenplion:
Tianspoilalion of peisons lelveen hone and voik Iocalions
oi of peisons having a connon voik-ieIaled liip puipose in a
vehicIe having a sealing capacily of 15 passengeis oi Iess,
incIuding lhe diivei, vhich aie used foi lhe puipose of
iideshaiing, as defined in Seclion 522 of lhe VehicIe Code,
vhen lhe iideshaiing is incidenlaI lo anolhei puipose of lhe
diivei.
TNCs faiI lo salisfy eilhei of lhese iequiienenls.
In oui ieviev of lhe fiIings and suppoiling docunenls, lheie is no
evidence lhal TNC diiveis have a connon voik-ieIaled oi incidenlaI puipose
vilh lheii passengeis. Inslead, diiveis lianspoil passengeis enliieIy al lhe
convenience of lhe passengei:
Lyft is recruiting drivers with the following language: Be a
Lyft Driver material states that drivers are making up to
$35/houi + choosing lheii ovn houis!
69

Ubers service is defined as your on-denand piivale
diivei.
7O

SideCai offeis lhe foIIoving pilch lo ils piospeclive diiveis:
Drive where you want, when you want, and who you want.
You aie youi ovn loss. Sone of oui SideCai diiveis aie
eaining $3O+ pei houi.
71

InstantCab tells prospective drivers that it makes it easy for
customers and cab drivers to find each other. Were looking
foi diiveis lo heIp us Iaunch and piovide high quaIily seivice
to anyone who needs a taxi. Were not a taxi company, you

69
hllp://vvv.Iyfl.ne/diiveis.
7O
Lxhilil A, 34, Woikshop iief, fiIed ly TIAC on ApiiI 3, 2O13.
71
Lxhilil C, 48, Woikshop iief, fiIed ly TIAC on ApiiI 3, 2O13.
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- 5O -
can voik foi any exisling laxi conpany and use oui app lo
find guaianleed customers.
72

Tickengo tells its prospective drivers that they can accept any
iide if you vanl lo go lo lhe sane deslinalionF "/ (3 ;") H)1#
I-$# #" 6%0,.
73

Seivices piovided ly TNCs aie lhus veiy diffeienl fion liadilionaI,
Iongslanding foins of iideshaiing.
74
TNCs aie cIeaiIy designed lo piovide a cai
seivice foi conpensalion. Theie is no iequiienenl lhal lheie le a connon
puipose. Inslead, TNCs opeiale as an aIleinalive lo olhei liadilionaI cai seivices.
SeveiaI pailies in connenls on lhe pioposed decision expiessed concein lhal lhe
pioposed decision vouId, as foinei San Iiancisco Mayoi iovn desciiled in his
comments, limit the ability of a regular citizen [to] request a ride from a family
nenlei vho nay vish lo give lhen a iide lo lhe aiipoil foi fiee.
75
SiniIaiIy,
eRideShaie, vhich has piovided an onIine caipooI nalching seivice since 1999,
expiessed conceins lhal lhe pioposed decision vouId oveiiide exisling slaluloiy
exenplions foi iideshaiing seivices.
76
These conceins aie iII founded. We
ieileiale lhal oui Decision in no vay inpacls lhe exenplions in Seclion 5353 of
lhe IulIic UliIilies Code. To lhe exlenl lhal seivices such as Rideshaie neel

72
hllps://inslanlcal.voidpiess.con/join/.
73
hllps://lickengo.con/a/leconediivei/. (IlaIics added.)
74
The TNCs shouId le conliasled vilh hllp://vvv.511.oig, a iideshaiing seivice
vhich is nanaged ly a pailneiship of pulIic agencies Ied ly lhe MeliopoIilan
Tianspoilalion Connission, lhe CaIifoinia Highvay IalioI, and lhe CaIifoinia
Depailnenl of Tianspoilalion. Theie aie no iefeiences lo Teins and Condilions,
donalions, and olhei foins of conpensalion.
75
Connenls on Iioposed Decision fion foinei San Iiancisco Mayoi WiIIie L.
iovn }i. on 8/12/2O13.
76
IinaI Opening Connenls of eRideShaie Inc. on O8/19/2O13.
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- 51 -
either the non-commercial enterprise or rideshare exemption undei Seclion
5353, oi olhei exenplions as appIicalIe, such seivices vouId le exenpl fion
Connission ieguIalion. The Connission has nevei ieguIaled lhe aliIily of a
regular citizen [to] request a ride from a family member who may vish lo give
them a ride to the airport for free, and nothing in lhe IulIic UliIilies Code oi
oui Decision would extend the Commissions juiisdiclionaI ieach lo such
Ienglhs. Iuilhei, lhe Connission vouId again nole lhal lhe lasis foi ieguIaling
TNCs is lhal lhey neel lhe definilion of a chailei-paily caiiiei undei lhe IulIic
Utilities Code. That is, they are engaged in lhe lianspoilalion of peisons ly
noloi vehicIe foi conpensalion.
77

We agiee vilh SIMTA lhal lheie is no ieason foi lhe Connission lo
change lhe definilion of iideshaiing undei lhe VehicIe Code in oidei lo
acconnodale foi-piofil lianspoilalion seivices deIiveied lhiough snailphone
applications. Furthermore, there is nothing about the new business model of
offeiing lianspoilalion seivices foi conpensalion lhiough lhe nechanisn of a
snailphone appIicalion lhal juslifies alandoning lhe fundanenlaI ieguIaloiy
infiasliucluie of lhe lianspoilalion foi conpensalion indusliy, oi lhal changes
lhe IeveI of ieguIaloiy concein. The undeiIying piincipaI conlinues lo le
ensuiing pulIic safely. ReguIalion is lhe safely nel lhal lhe pulIic shouId ieIy on
foi ils pioleclion. We aie nol peisuaded ly lhe TNCs lhal vouId Iike us lo cieale
a ieguIaloiy gap lecause lhey aie using a snailphone lo faciIilale lianspoilalion
foi conpensalion. We aie, hovevei, encouiaged by the TNCs embrace of

77
IU Code 536O (enphasis added).
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- 52 -
lechnoIogy and innovalion lo liing choice and convenience lo lhe pulIic in a
safe nannei.
5. Transportation Access
The Commissions authority over passenger carriers is grounded in the
need to protect the publics safe and relialIe access to Californias roadways.
Seclion 5352 of lhe Acl slales:
The use of lhe pulIic highvays foi lhe lianspoilalion of
passengeis foi conpensalion is a lusiness affecled vilh a
pulIic inleiesl. Il is lhe puipose of lhis chaplei lo pieseive foi
lhe pulIic fuII lenefil and use of pulIic highvays consislenl
vilh lhe needs of conneice vilhoul unnecessaiy congeslion
oi veai and leai upon lhe highvays, lo secuie lo lhe peopIe
adequale and dependalIe lianspoilalion ly caiiieis opeialing
upon lhe highvays, lo secuie fuII and uniesliicled fIov of
liaffic ly noloi caiiieis ovei lhe highvays vhich viII
adequaleIy neel ieasonalIe pulIic denands ly pioviding foi
lhe ieguIalion of aII lianspoilalion agencies vilh iespecl lo
accidenl indennily so lhal adequale and dependalIe seivice
ly aII necessaiy lianspoilalion agencies shaII le nainlained
and lhe fuII use of lhe highvays pieseived lo lhe pulIic, and
lo pionole caiiiei and pulIic safely lhiough ils safely
enfoicenenl ieguIalions.
IU Code 5352 pIaces pulIic safely as a key goaI in ensuiing lhal lhe
pulIic enjoys fuII access lo lhe ioadvays. In lhis RuIenaking lhe Connission
soughl connenl on lhe vays lhal safely ieguIalions nay enhance oi inpede
pulIic access lo lhe ioadvays.
5.1. Comments on the RuIemaking
Many pailies fiIed connenls in iesponse lo lhis issue and lheie veie sone
lhal ienained siIenl. We viII sunnaiize lhose posilions lhal veie sulnilled in
lhis seclion.
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- 53 -
Luxoi Cal asseils lhal unIicensed foi-hiie caiiieis such as Ulei, Lyfl, and
SideCai do nol invesl in safely equipnenl and ciine-pievenlion liaining foi
diiveis. Il goes on lo say lhal TNCs and lheii diiveis liy lo conpensale foi lhe
Iack of piofessionaI safely neasuies ly cheiiy-picking lhe cusloneis vhon lhey
leIieve aie safesl lo convey. Luxoi Cal lhen caulions lhal lhe iesuIl of lhis lype
of cheiiy-picking is de faclo ied-Iining of Iov-incone neighloihoods and
discrimination against customers based on drivers profiling that may be little
noie lhan sleieolyping accoiding lo elhnicily oi disaliIily. Luxoi Cal aIso says
lhal such piaclices aie iIIegaI foi Iicensed opeialois lecause lhey have lhe effecl
of ieducing pulIic access lo lhe ioadvays.
78

The CHP asserts that the Commissions oversight responsibilities relative
lo lianspoilalion access aie iooled in lvo essenliaI aieas. Iiisl, lhe ieguIalion of
accidenl indennily lo ensuie adequale and dependalIe seivice ly lianspoilalion
opeialois and pieseivalion of fuII use of lhe highvays, and secondIy, lo pionole
pulIic and opeialoi safely lhiough enfoicenenl ieguIalions.
79

Ieihaps lhe nosl delaiIed and focused connenls on lhis issue cane fion
Cenlei foi AccessilIe TechnoIogy (CfoiAT). CfoiAT iighlIy ieninds us lhal any
denand-iesponse liansil seivice nusl aIso conpIy vilh slale and fedeiaI anli-
disciininalion slalules, incIuding iequiienenls lhal such seivices le accessilIe
lo peopIe vilh disaliIilies.
8O

San Iiancisco Cal Diiveis Associalion asseils lhal lhey have peisonaIIy
vilnessed an alundance of Lyfl and olhei piivale vehicIes lianspoiling peopIe in

78
Luxoi Cal opening connenls fiIed on O1/28/13 al 3-4.
79
CHI connenls fiIed on O7/17/13 al 3.
8O
CfoiAT connenls fiIed on O1/28/13 al 1-2.
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- 54 -
lhe lack seal, lIocking up liaffic and naking iIIegaI naneuveis, vhiIe IegaI
laxicals diive aiound enply. They go on lo say lhal lhis adds lo liaffic
congeslion. AddilionaIIy, lhe asseilion is nade lhal a Lyfl diivei neaiIy ian inlo
lhe individuaI head-on vhiIe naking an iIIegaI Iefl luin acioss Van Ness Avenue
in San Iiancisco onlo CaIifoinia Slieel and a piofessionaI diivei vouId nol do
lhal.
81

5.2. Discussion
We agiee vilh CfoiAT lhal TNCs nusl endeavoi lo piovide equaI access
lo aII consuneis. ecause TNCs aie in lheii infancy ve cannol deleinine al lhis
poinl vhelhei equaI access is leing hanpeied. As a lhieshoId nallei, TNCs
nusl do lhe foIIoving:
a. TNCs shaII aIIov passengeis lo indicale vhelhei lhey
iequiie a vheeIchaii-accessilIe vehicIe oi a vehicIe
olheivise accessilIe lo individuaIs vilh disaliIilies.
l. One yeai fion lhe effeclive dale of lhese iuIes and
annuaIIy lheieaflei, each TNC shaII sulnil lo lhe Safely
and Lnfoicenenl Division a iepoil delaiIing lhe nunlei
and peicenlage of lheii cusloneis vho iequesled
accessilIe vehicIes, and hov oflen lhe TNC vas alIe lo
conpIy vilh iequesls foi accessilIe vehicIes. Upon
ieceipl lhis iepoil shaII le nade pulIic ly lhe Safely
and Lnfoicenenl Division. This iepoil shaII aIso
conlain a desciiplion of any inslances oi conpIainls of
unfaii liealnenl oi disciininalion of peisons vilh
disaliIilies.
The alove infoinalion viII le used ly lhe Connission lo deleinine vhal, if
any, changes need lo le nade lo lhe ieguIalions in oidei lo ensuie lhal TNCs
aie accessilIe lo, and do nol disciininale againsl, peisons vilh disaliIilies. The

81
San Iiancisco Cal Diiveis Associalion connenls fiIed on O1/29/13 al 3-4.
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- 55 -
Connission aIso noles il cuiienlIy has fev piovisions oi pioleclions lo ensuie
equaI access foi passengeis vilh disaliIilies undei ils cuiienl TCI ieguIalions.
82

Updaling any ieguIalions in lhis aiea, as found lo le needed, nay aIso le
sonelhing lhe Connission shouId considei in Ihase 2 of lhis iuIenaking.
We aIso agiee vilh lhe CHI lhal lhe Connission nusl ieguIale TNCs lo
ensuie adequale and dependalIe seivice ly lianspoilalion opeialois and lo
pionole pulIic and opeialoi safely. ConsequenlIy, ve iequiie TNCs lo foIIov
lhe safely and ieguIaloiy iequiienenls slaled alove in seclion 3.2 of lhis
decision.
And ve aIso agiee vilh Luxoi Cal lhal disciininalion againsl cusloneis
based on drivers profiling that may be little more than stereotyping by ethnicity,
disaliIily, oi econonic cIass, viII nol le loIeialed. Il is nolevoilhy lhal,
aIlhough nol a paily lo lhis pioceeding, HonoliIes vas ciealed lo seive a
connunily lhal nay nol have leen adequaleIy seived ly lhe exisling
transportation forms. According to Homobiles website, it was formed to serve
undeiseived connunilies vho expeiience sliess oi disciininalion on vaiious
foins of lianspoilalion foi hiie due lo lheii gendei oi sexuaI idenlily.
83
The
Connission noles lhal vhiIe sone pailies aigue lhal TNCs such as Lyfl, UleiX,
and SideCai nusl le ieguIaled eilhei as laxi cals oi Iinousines in oidei lo
ensuie nondisciininalion and pulIic safely, HonoliIes vas foined lo neel lhe
needs of consuneis vhose lianspoilalion needs aie nol leing adequaleIy nel ly

82
Ioi inslance, lhe Connission iequiies eveiy caiiiei lo nainlain on fiIe vilh lhe
Connission an equipnenl Iisl of aII vehicIes in use incIuding vhelhei each vehicIe is
handicap accessilIe. (CO 157-D, Seclion 4.O1.)
83
hllp://vvv.honoliIes.oig/leins/.
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eilhei laxi cals oi Iinousines. We appIaud lhe foundeis of HonoliIes foi
eslalIishing a non-piofil 5O1(c)(3) voIunleei oiganizalion lhal caleis lo lhe
undeiseived connunilies of San Iiancisco.
We agiee vilh CfoiAT lhal lhe Connission shouId le infoined ly lhe
Iegacy of liansil disciininalion and shouId voik lo ensuie lhal lhe nev seivices
naik a lieak fion lhis piolIenalic hisloiy. }usl as il vouId le unacceplalIe lo
aIIov any foin of liansil seivice lo opeiale if il veie lo engage in iaciaI
disciininalion, nev foins of onIine-enalIed liansil seivices cannol le peinilled
lo excIude peopIe vilh disaliIilies. We agiee. Theiefoie, ve diiecl TNCs lo
sulnil a pIan vilhin 9O days of lhe effeclive dale of lhis decision lo leII us hov
lhey pIan lo ensuie lhal TNCs viII avoid ciealing a divide lelveen lhe alIe and
disalIed connunilies. TNCs nusl expIain hov lhey pIan lo piovide incenlives
lo individuaIs vilh accessilIe vehicIes lo lecone TNC diiveis. Iuilheinoie,
TNCs shouId ensuie accessiliIily acconnodalions foi lheii apps and velsiles lo
enalIe lhe disalIed pulIic access lo lhe sane seivices as cIienls vho aie nol
disalIed.
84

6. Insurance
CaIifoinia Insuiance Code 1158O.1(l) iequiies lhal non-conneiciaI
vehicIes have a nininun IialiIily coveiage of $15,OOO foi injuiy/dealh lo one
peison, $3O,OOO foi injuiy/dealh lo noie lhan one peison, and $5,OOO foi danage
to property. The Commissions GO 115-I iequiies lhal any chailei paily caiiiei
vehicIe vilh a sealing capacily of seven passengeis oi fevei have a nininun

84
TilIe III of lhe Aneiicans vilh DisaliIilies Acl (ADA) iequiies lhal lusinesses and
nonpiofil seivices piovideis nake accessiliIily acconnodalions lo enalIe lhe disalIed
pulIic lo access lhe sane seivices as cIienls vho aie nol disalIed.
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conneiciaI coveiage of $75O,OOO. In lhe RuIenaking, lhe Connission soughl
connenls on, ($#%/ -0(-, lhe insuiance aspecls of lhis nev lianspoilalion nodeI.
Ioi inslance, if a vehicIe is insuied as a piivale vehicIe, lul invoIved in an
incidenl vhiIe lianspoiling passengeis foi conpensalion, lhe RuIenaking asked
vhal lype of coveiage vouId lhe insuiance offei foi injuiies/danages lo lhe
diivei, lhe paying passengei, and any olhei peopIe oi piopeily invoIved in lhe
incidenl, and vhelhei lhe insuiance indusliy had an opinion on lhe insuiance
coveiage avaiIalIe foi piivale vehicIes used lo lianspoil passengeis foi
conpensalion.
6.1. Comments on the RuIemaking
This RuIenaking has al Ieasl 18 pailies vho fiIed connenls. No paily
cIained lhal TNCs shouId nol have insuiance oi lhal IialiIily insuiance in lhe
lianspoilalion lusiness vas nol a key conponenl of lheii lusiness nodeI. In lhis
seclion ve viII nole lhe IIFCs connenls.
85
We aIso nole lhal nany pailies
cIained eilhei in lheii connenls oi duiing lhe voikshop lhal TNCs aie
uninsuied.
In ils connenls, IIIC asseils lhal il suiveyed ils nenlei insuiance
companies, finding that the industry standard for personal aulo insuiance
poIicy conliacls is lo exenpl fion insuiance coveiage cIains invoIving vehicIes
used for transporting passengers for a charge.
86
IIIC goes on lo say lhal in
silualions vheie a vehicIe is insuied as a piivale vehicIe and is used lo lianspoil

85
Accoiding lo connenls fiIed ly IIIC on O1/28/13, lhe IIIC nenleis
represent six of the nations largest insurance companies (State Farm, Farmers,
Lileily MuluaI Cioup, Iiogiessive, AIIslale and Meicuiy) vhich coIIecliveIy viile a
najoiily of lhe peisonaI Iines of aulo insuiance in CaIifoinia.
86
IIIC connenls fiIed on O1/28/13 al 1-2.
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passengeis foi a fee, no insuiance coveiage vouId exisl.
87
The Connission aIso
inquiied aloul lhe sufficiency of lhe nininun IialiIily coveiage iequiied undei
CaIifoinia Insuiance Code 1158.1(l). IIIC asseils lhal since lheie vouId le no
coveiage foi lhe lype of silualions al issue, lhe nininun anounl of coveiage
vouId le iiieIevanl.
88
IinaIIy, vilh iespecl lo CaIifoinia Insuiance Code
1158O.24, IIIC noles lhal lhe IegisIaluie encouiaged cai shaiing piogians (i.e.,
renting out ones personal vehicle lo anolhei diivei), as Iong as lhe ovnei does
nol eain noie lhan lhe annuaI cosl of ovning lhe vehicIe fion lhe cai shaiing
piogian. IIIC goes on lo say lhal in doing so, il shieIds piivale passengei cai
insuieis fion any IialiIily ly shifling lhe iesponsiliIily foi coveiage lo lhe
piivale vehicIe iideshaiing piogian. The IIIC noles lhal lhe issue lefoie lhe
Connission is nol iideshaiing, lul inslead il is one of using a piivale passengei
vehicIe in a Iiveiy seivice. This is cIeaiIy nol coveied undei a slandaid poIicy, if
an incidenl occuis, coveiage vouId nol exisl.
89

6.2. Discussion
We viII iequiie TNCs lo nainlain conneiciaI IialiIily insuiance poIicies
pioviding nol Iess lhan $1,OOO,OOO (one niIIion doIIais) pei-incidenl coveiage foi
incidenls invoIving vehicIes and diiveis vhiIe lhey aie pioviding TNC seivices.
The insuiance coveiage shaII le avaiIalIe lo covei cIains iegaidIess of vhelhei a
TNC diivei nainlains insuiance adequale lo covei any poilion of lhe cIain. This
IeveI of IialiIily insuiance is alove vhal lhe Connission cuiienlIy iequiies of

87
IIIC connenls fiIed on O1/28/13 al 1-2.
88
4*.
89
4*.
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TCI diiveis. Il is equaI lo lhe insuiance lhal lhe SIMTA iequiies of laxical
conpanies.
We iejecl lhe cIain lhal Lyfl, SideCai, and Ulei/UleiX do nol have
insuiance. The Commissions Safety & Enforcemenl Division, in enleiing inlo
sellIenenl agieenenls vilh lhese enlilies, nade suie lhal each of lhese
conpanies nainlained excess IialiIily insuiance poIicies pioviding a nininun
of $1 million per incident. We note PIFCs comments in this Rulemaking, and
note that, even if a TNC drivers personal insurance does not apply in the event
of an accidenl, lhe insuiance iequiied ly lhe Connission viII appIy.
We iequiie lhal each TNC fiIe lheii insuiance poIicies undei seaI vilh lhe
Connission as pail of appIying foi a Iicense. Iuilheinoie, lhe Iicense foi lhe
TNC viII aulonalicaIIy expiie upon expiialion of lhe insuiance poIicy unIess
and unliI lhe TNC piovides an updaled insuiance poIicy and appIies lo ienev ils
Iicense. In Ihase II of lhis pioceeding ve viII considei vhelhei lhese poIicies foi
lolh TCI as veII as TNC ceilificale hoIdeis shouId le nade pulIic and incIuded
in the Commissions website.
7. Workshop Report
As pail of lhe Scoping Meno, pailies veie inviled lo allend a voikshop lo
considei issues incIuding lul nol Iiniled lo juiisdiclion, safely, lianspoilalion
access, and pioposed nodificalions lo exisling iuIes and ieguIalions. On
ApiiI 10 and 11, 2013, the parties attended the Commissions workshop in
San Iiancisco al lhe Connissions offices. The workshop sessions were publicly
noliced and open lo lhe pulIic.
Two parties that wed like to thank and extend our appreciation to for
diafling lhe voikshop iepoil aie TIAC and TiansIoin. On May 17lh lhese
lvo pailies fiIed lhe Woikshop Repoil on lehaIf of lhose pailies vho allended
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- 6O -
lhe voikshop.
9O
The Woikshop Repoil sunnaiizes paily posilions as
ailicuIaled duiing lhe voikshop.
Mosl of lhe issues such as juiisdiclion, safely, access, and lhe definilion of
iideshaiing have aIieady leen discussed in lhe alove seclions of lhis decision.
Theie aie, hovevei, lvo issues nol addiessed alove lhal ve viII addiess in lhis
seclion.
Duiing lhe voikshop, Connission slaff asked vhelhei lheie vas a lhiid
vay lo ieguIale TNCs lhal piolecled pulIic safely, lul aIso aIIoved innovalion
and lechnoIogy lo liing choice and convenience lo lhe pulIic. The
SIMTA/IATR slaled lhal lhe idea lhal lheie is sone lhiid vay lo ieguIale lhese
TNCs is offensive lo lhe nen and vonen vho voik as ieguIalois lo piolecl
pulIic safely and access. The SIMTA/IATR poinled oul lhal lhe laxi indusliy is
a highIy nanaged lianspoilalion nelvoik lhal iequiies ieguIalions lo ensuie
univeisaI access lo dooi lo dooi lianspoilalion in an uilan enviionnenl.
91
TIAC
slaled lhal il leIieved lhal lhe Connission had inappiopiialeIy piovided
pieappiovaI lo a lhiid-vay ieguIaloiy appioach via ils sellIenenl agieenenls
vilh conpanies such as Ulei and Lyfl. TIAC slaled lhal lhe lhiid-vay
regulatory approach affected by the TNCs settlement agieenenls anounled lo
lhe deieguIalion of lhe laxical indusliy, and as such vioIaled slale Iav.
92

CounseI foi lhe SIMTA and lhe San Iiancisco Aiipoil Connission slaled lhal

9O
TIAC, TiansIoin, CfoiAT, CCLA, Luxoi Cal, IATR, IIIC, lhe San Iiancisco Cal
Diiveis Associalion, lhe San Iiancisco Lino Union, lhe San Iiancisco MedaIIion
Associalion, SIMTA, The San Iiancisco Aiipoil Connission, SideCai, Tickengo, Ulei,
The Uniled Taxical Woikeis, TURN, and Lyfl.
91
Woikshop Repoil al 14.
92
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TNCs have piesenled no ciedilIe aigunenl foi a lhiid vay. The SIMTA and
San Iiancisco Aiipoil Connission slaled lhal lheie aie lvo possilIe ieguIaloiy
schenes, lhe IocaI syslen foi laxicals and lhe slale syslen foi chailei-paily
caiiieis, lul lheie is no juslificalion foi suljecling TNCs lo Iessei slandaids lhan
lhose appIicalIe lo aII olhei chailei paily caiiieis.
93
Luxoi Cal slaled lhal lhe
lopic of a lhiid vay lo ieguIale TNCs is nisIeading lecause il assunes lhal lheie
is sonelhing nev aloul lhe TNCs, vhen laxi conpanies have leen using siniIai
lechnoIogicaI seivices foi seveiaI yeais lefoie lhe inceplion of Ulei, Lyfl, and
SideCai.
94
SideCai asseiled lhe need foi ieguIaloiy iecognilion of lhe innovalive
conlinalion of seivices offeied ly connunicalions pIalfoins such as SideCai, in
conlinalion vilh nonconneiciaI iideshaiing.
95
Lyfl slaled lhal, lo lhe exlenl lhe
Connission finds lhal il shouId ieguIale lo piolecl pulIic safely inleiesls, il is
suppoilive of a lhiid vay ieguIaloiy appioach lecause, if appIied lo TNCs, lhe
cuiienl ieguIaloiy schene vouId cieale unieasonalIe laiiieis foi iideshaiing
seivices lo enlei lhe naikel.
96

A second issue lhal vas discussed duiing lhe voikshops and does nol
nealIy fil inlo any of lhe discussion alove is lhe nolion of faii conpelilion anong
ieguIaled and unieguIaled enlilies. TIAC connenled lhal lhe goaI of lhe
Connission shouId le lo cieale a faii syslen. They aigue lhal vheie lolh a
ieguIaled syslen and an unieguIaled syslen exisl, lhe naluiaI incIinalion of lhe
indusliy viII le lo nove lovaids deieguIalion in oidei lo avoid aII of lhe cosls of

93
Woikshop Repoil al 15.
94
4*.
95
4*.
96
4*.
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ieguIaloiy conpIiance. ConsequenlIy lheie viII le no ioon Iefl foi a ieguIaled
indusliy.
97

SeveiaI pailies incIuding lhe SIMTA, San Iiancisco Aiipoil Connission,
TIAC, Uniled Taxical Woikeis, and lhe SI Cal Diiveis Associalion conlend lhal
ieguIaled laxis cannol conpele vilh TNCs. Uniled Taxical Woikeis aigue lhal
lo aIIov TNCs lo exisl in lheii cuiienl unieguIaled foin oi suljecl lo nininaI
ieguIalion essenliaIIy cieales a iace lovaids lhe lollon vilh negalive inpacl on
safely and seivice. These gioups conlended lhal piofessionaI diiveis viII le
pushed lovaids lhe TNC lusiness nodeI lecause of Iovei opeialionaI cosls.
The iepiesenlalive fion lhe SIMTA/IATR slales lhal vhen lhis unieguIaled
syslen devaslales lhe ieguIaled enviionnenl, no one viII le Iefl lo piovide safe
and accessilIe dooi lo dooi seivice lo cily iesidenls and visilois.
98

7.1. Discussion
We aie nol peisuaded ly lhe posilion laken ly lhe SIMTA lhal updaling
ieguIalion is offensive lo lhose cuiienlIy voiking lo ieguIale pulIic safely and
access. ReguIaloiy lodies nusl aIvays Iook lo updale lheii iuIes and
regulations in order to keep pace with time and technology. The Commissions
goaI in lhis RuIenaking is lo sliike lhe piopei laIance lelveen safely and
innovalion, so lhal ieguIalion piovides a safely nel lhal lhe pulIic can ieIy on foi
ils pioleclion vhiIe nev lusinesses innovale and use lechnoIogy lo lellei lhe
Iives of CaIifoinians. The ieguIalions lhal ve aie adopling foi TNCs aie siniIai
lo vhal lhe SIMTA iequiies of laxical diiveis. NaneIy, ve iequiie a Iicense foi
each TNC, iequiie a ciininaI lackgiound check lo le conpIeled foi each diivei,

97
Woikshop Repoil al 26.
98
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iequiie lhal each TNC eslalIish a diivei liaining piogian, and iequiie IialiIily
insuiance lhal is equaI lo vhal lhe SIMTA iequiies of laxical diiveis. We viII
nol, hovevei, neddIe inlo lheii lusiness nodeI ly foicing TNCs lo designale
each diivei an enpIoyee oi conliacloi. Again, oui ioIe is lo piolecl pulIic safely,
nol lo diclale lhe lusiness nodeIs of lhese conpanies.
We reject TPACs allegation that a third way of regulation is the sane as
deieguIalion. The sellIenenl agieenenls lhal SLD enleied inlo vilh lhiee of lhe
conpanies veie a fiisl slep lovaid ieguIalion. The ieguIalions lhal ve eslalIish
in this decision will ensure that safety is foundational to a TNCs business.
AddilionaIIy, ve suppoil choice nol onIy foi passengeis, lul aIso diiveis. Coing
foivaid, a conpany nay eilhei appIy foi a TNC Iicense oi a TCI Iicense vilh lhe
Connission.
We accept those partys comments calling for regulation of TNCs. As
such, in lhis decision ve exeicise oui exisling juiisdiclion puisuanl lo AilicIe XII
of lhe CaIifoinia Conslilulion and lhe Acl. In lhis decision undei lhe lioad gianl
of aulhoiily puisuanl lo IU Code 5381, ve cieale lhe calegoiy of TNC lo
acconpany lhe exisling calegoiy of TCI. A conpany oi individuaI vishing lo
piovide lianspoilalion oi faciIilale lianspoilalion of passengeis can choose lo
eilhei gel a TCI Iicense oi a TNC Iicense. The TCI iequiienenls aie aIieady in
pIace, aIlhough as indicaled, 1),/-F lhe Connission viII open a second phase lo
lhis RuIenaking lo updale lhose iuIes and ieguIalions lo ensuie lhal safely
iequiienenls aie up lo dale.
8. Comments on Proposed Decision
The pioposed decision of Connissionei MichaeI R. Ieevey in lhis nallei
vas naiIed lo lhe pailies in accoidance vilh Seclion 311 of lhe IulIic UliIilies
Code and comments were allowed under Rule 14.3 of the Commissions Rules of
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Iiaclice and Iioceduie. Connenls veie fiIed on Augusl 19, 2O13 ly Tickengo,
CfoiAT, SideCai, Lyfl, Ulei, TIAC, IATR, Los AngeIes Depailnenl of
Tianspoilalion, CCLA, TiansIoin, Luxoi Cal, eRideshaie, SIMTA, CaIifoinia
Aiipoils CounciI, TLIA, San Iiancisco Cal Diiveis Associalion (SICDA), Uniled
Taxical Woikeis, SIMTA/SIO, IIIC and Consunei Alloineys of CaIifoinia,
and iepIy connenls veie fiIed on Augusl 26, 2O13 ly TIAC, Luxoi Cal, Uniled
Taxical Woikeis, Lyfl, IATR, CfoiAT, TLIA, SIMTA/SIO, SideCai, Ulei, IIIC
and SICDA.
In iesponse lo connenls, lhe pioposed decision has leen ievised lo
fuilhei expIain lhe definilion of vhal conslilules a TNC. Il is fuilhei noled lhal
the existing exemptions under the Commissions Charter Party Carrier authority
aie nol usuiped ly lhe ciealion of lhis nev calegoiy. AII of lhe exisling eIeven
exenplions sliII appIy. The pioposed decision has aIso leen ievised lo cIaiify
vhal kind of a ciininaI lackgiound check is expecled, lhe insuiance
iequiienenls and vhal specifics shouId le incIuded in lhe TNC pIans lo ensuie
accessiliIily. Olhei ievisions in iesponse lo connenls have leen nade as
appiopiiale.
9. Assignment of Proceeding
MichaeI R. Ieevey is lhe assigned Connissionei and Roleil Mason III is
lhe assigned AL} in lhis pioceeding.
Findings of Fact
1. The Connission opened lhis RuIenaking on Decenlei 2O, 2O12, lo piolecl
pulIic safely and lo encouiage innovalois lo use lechnoIogy lo inpiove lhe Iives
of CaIifoinians.
2. The Connission has a iesponsiliIily foi deleinining vhelhei and hov
pulIic safely nighl le affecled ly lhese TNCs.
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3. Iailies fiIed connenls in lhis pioceeding on }anuaiy 28, 2O13 and iepIy
connenls veie fiIed on Ieliuaiy 11, 2O13.
4. On Ieliuaiy 15, 2O13, lhe Connission heId a Iieheaiing Confeience and
on ApiiI 2, 2O13, lhe assigned Connissionei and AL} issued a Scoping Meno.
5. Woikshops veie held on April 11 and 12, 2013, at the Commissions
audiloiiun.
6. In lhe RuIenaking ve iefeiied lo lhese conpanies as Nev OnIine-LnalIed
Tianspoilalion Seivices. We aie changing lhe allievialion lo TNC foi ease of
use.
7. TNCs aie nol jusl Lyfl, SideCai, InslanlCal, and UleiX.
8. A TNC is defined as an oiganizalion vhelhei a coipoialion, pailneiship,
soIe piopiieloi, oi olhei foin, opeialing in CaIifoinia lhal piovides pieaiianged
lianspoilalion seivices foi conpensalion using an onIine-enalIed appIicalion
(app) oi pIalfoin lo connecl passengeis vilh diiveis using lheii peisonaI
vehicIes.
9. CaIifoinia Iav cuiienlIy iecognizes and ieguIales lhiee nodes of
passengei lianspoilalion foi conpensalion: laxi seivices, ieguIaled ly cilies
and/oi counlies, and chailei paily caiiiei seivices, and passengei slage
conpanies, ieguIaled ly lhe CaIifoinia IulIic UliIilies Connission.
1O. Il is ieasonalIe lo concIude lhal in iecenl yeais, lhe connunicalions
ievoIulion in viieIess seivice, snailphones and apps has fuilhei faciIilaled lhe
deveIopnenl and adoplion of passengei lianspoilalion foi conpensalion, lo a
poinl vheie passengeis seeking iides aie ieadiIy connecled vilh diiveis viIIing
lo piovide iides in piivale vehicIes.
11. Il is ieasonalIe lo concIude lhal cuiienl TNCs aie pioviding passengei
lianspoilalion foi conpensalion.
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12. TNCs do nol fil nealIy inlo lhe convenlionaI undeislandings oi slaluloiy
definilions of eilhei laxis oi Iinousines, lul lhal does nol nean lhal lhis
Commissions responsibility lo pulIic safely in lhe lianspoilalion indusliy
shouId le ignoied and/oi Iefl foi individuaI conpanies lo diclale.
13. TNCs opeiale on a pieaiianged lasis lecause 1) lefoie a passengei can
iequesl a iide, lhe passengei nusl dovnIoad lhe soflvaie appIicalion, piovide
idenlificalion infoinalion and agiee lo lhe TNC seivice agieenenl, and 2) foi a
pailicuIai liip, lhe passengei nusl inpul infoinalion iegaiding cuiienl Iocalion,
and finaIIy 3) a TNC diivei cannol le haiIed on lhe slieel siniIai lo a laxical
vheie no infoinalion is shaied unliI lhe passengei enleis lhe vehicIe.
14. In oidei lo conpIy vilh lhe appIicalIe slalules and ieguIalions, aII TNC
diiveis nusl le alIe lo piove lhal a iide vas nalched on lhe TNC soflvaie
appIicalion as evidence of pieaiiangenenl.
15. The CaIifoinia DMV does nol cuiienlIy peinil TNCs lo enioII non-
enpIoyee diiveis in lhe LnpIoyei IuII Nolice Iiogian. UnliI lhe DMV
LnpIoyei IuII Nolice Iiogian is avaiIalIe foi use ly TNCs, TNCs shouId
peifoin, piioi lo aIIoving a diivei on lhe pIalfoin and quaileiIy lheieaflei,
diiving iecoid checks lhiough DMV in oidei lo ensuie lhal diiveis neel
appIicalIe iequiienenls. The DMV check ciileiia shaII piovide lhal a usei nay
have no noie lhan 3 poinls vilhin the preceding 3 years, no major violations
(ieckIess diiving, hil and iun, oi diiving vilh a suspended Iicense conviclion)
vilhin lhe pieceding 3 yeais, and no diiving undei lhe infIuence conviclion
vilhin lhe pasl 7 yeais.
16. Il is ieasonalIe lo concIude lhal TNCs aie chailei paily passengei caiiieis,
and lheiefoie ve viII exeicise oui exisling juiisdiclion ovei lhese seivices
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puisuanl lo AilicIe XII of lhe CaIifoinia Conslilulion and lhe Iassengei
Chailei-party Carriers Act, PU Code 5351 %# 1%2?
17. It is reasonable to exercise this Commissions broad gianl of aulhoiily
puisuanl lo IU Codes 5381 and 7O1 lo cieale lhe calegoiy of TNC lo
acconpany lhe exisling calegoiy of TCI. A conpany oi individuaI vishing lo
piovide lianspoilalion oi faciIilale lianspoilalion of passengeis can choose lo
eilhei gel a TCI Iicense oi a TNC peinil.
18. The definilion of iideshaiing does nol peinil lianspoilalion peifoined foi
piofil.
19. Recoveiy of acluaI cosls incuiied onIy appIies lo vanpooI vehicIes, vhich
is defined ly lhe VehicIe Code as sealing noie lhan 1O passengeis, lul Iess lhan
15 passengeis, incIuding lhe diivei.
2O. Il is ieasonalIe lo concIude lhal TNCs do nol quaIify foi lhe iideshaie
exenplion undei IU Code 5353(h), lecause 5353(h) piovides
lvo oppoilunilies lo quaIify foi lhe iideshaie exenplion: eilhei lhe
lianspoilalion nusl have a connon voik-ieIaled puipose, oi lhe lianspoilalion
nusl le incidenlaI lo anolhei puipose of lhe diivei. TNCs faiI lo salisfy eilhei of
lhese iequiienenls.
21. Iursuant to PU Code 5352 the Commissions authority over passenger
carriers is grounded in the need to protect the publics safe and reliable access to
Californias roadways.
22. IU Code 5352 posilions pulIic safely as a key goaI in ensuiing lhal lhe
pulIic enjoys fuII access lo lhe ioadvays.
23. The piinaiy dislinclion lelveen a TNC and olhei TCIs is lhal a TNC
connecls iideis lo diiveis vho diive lheii peisonaI vehicIe, nol a vehicIe such as
a Iinousine puichased piinaiiIy foi a conneiciaI puipose.
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24. A TNC shaII nol le peinilled lo accepl slieel haiIs.
25. A TNC is nol peinilled lo ilseIf ovn vehicIes used in ils opeialion oi ovn
fIeels of vehicIes. Wilh lhis definilion in nind, lhe Connission finds lhal Ulei
(in conliasl lo UleiX) is nol a TNC.
26. Ulei connecls iideis vilh diiveis vho do nol diive lheii ovn peisonaI
vehicIe, lul lypicaIIy opeiale in lovn cais oi Iinousines, vhich lhe diivei nay
oflen as veII use lo lianspoil cusloneis foi anolhei Iinousine/lovn cai
conpany.
27. In oidei lo ensuie lhe giealesl possilIe evidenliaiy iecoid, lhe
Connission vouId piefei lo Ieave aII non-TNC issues, including Ubers
polenliaI TCI slalus, lo Ihase II.
28. The Commission will not allow the uncertainty regarding Ubers
insuiance lo peisisl duiing lhe pendency of Ihase II.Ulei shouId le iequiied lo
denonsliale lo lhe Connission vilhin 3O days of lhe issuance of lhis decision
lhal il nainlains conneiciaI IialiIily insuiance poIicies pioviding nol Iess lhan
$1,OOO,OOO (one niIIion doIIais) pei-incidenl coveiage foi incidenls invoIving
vehicIes and diiveis vhiIe lhey aie pioviding Ulei seivices. The insuiance
coveiage shaII le avaiIalIe lo covei cIains iegaidIess of vhelhei an Ulei diivei
nainlains insuiance adequale lo covei any poilion of lhe cIain.
29. UleiX does neel lhe TNC definilion and shouId appIy foi a TNC Iicense.
3O. In lhis decision ve viII iequiie TNCs lo nainlain conneiciaI IialiIily
insuiance poIicies pioviding nol Iess lhan $1,OOO,OOO (one niIIion doIIais) pei-
incidenl coveiage foi incidenls invoIving vehicIes and diiveis vhiIe lhey aie
pioviding TNC seivices. The insuiance coveiage shaII le avaiIalIe lo covei
cIains iegaidIess of vhelhei a TNC diivei nainlains insuiance adequale lo
covei any poilion of lhe cIain.
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31. The ciininaI lackgiound check nusl le a nalionaI ciininaI lackgiound
check incIuding lhe nalionaI sex offendei dalalase. The ciininaI lackgiound
check should be using the applicants social security number and not just the
applicants name. Any feIony ciininaI conviclion vilhin seven yeais piioi lo lhe
dale of lhe lackgiound check foi vioIenl ciine, a sexuaI offense, a ciine
invoIving piopeily danage, and/oi lhefl viII nake lhe appIicanl ineIigilIe lo le
a TNC diivei.
32. The Connission is aulhoiized lo conducl inspeclions of chailei-paily
caiiieis vhich viII nov incIude TNCs. Ioi inslance, 5371.5 of lhe Acl slales
that: Upon receipt of a complaint containing sufficient information to warranl
conducling an invesligalion, lhe connission shaII invesligale any lusiness lhal
adveilises Iinousine-foi-hiie oi passengei chailei lianspoilalion seivice foi
conpensalion in noloi vehicIes.
33. The Connission is aIso aulhoiized lo issue fines puisuanl lo IU Code
5378(l).
34. IU Code 5411 lo 542O of lhe Acl conlain ieIevanl piovisions iegaiding
issuing fines and penaIlies. These piovisions aIIov lhe Connission lo issue
fines lo caiiieis vho have vioIaled one oi noie piovisions of lhe CaIifoinia
IulIic UliIilies Code. In addilion, lhe Connission has eslalIished a cilalion
piogian in ResoIulion AL}-187.
35. The Commissions purpose in this Rulemaking is to ensure that regulation
is lhe safely nel lhal lhe pulIic ieIies on foi ils pioleclion and secondaiiIy
encouiaging innovalion and uliIizalion of lechnoIogy lo lellei lhe Iives of
CaIifoinians.
36. No Tein and Condilion in a TNCs Terms of Service or elsewhere, can be
inconsistent with this decisions commercial liability insurance requirements for
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TNCs. Noi can any Term and Condition in a TNCs Terms of Seivice le used oi
ieIied on ly lhe TNC lo deny insuiance coveiage, oi olheivise evade lhe
insuiance iequiienenls eslalIished in lhis decision.
37. The Connission viII open a Ihase II lo considei updaling ils ieguIalions
ovei TCI ceilificale hoIdeis. Ihase II viII aIso considei lhe slandaid and
appiopiiale Ianguage foi Teins & Condilions foi lolh TCI and TNC ceilificale
hoIdeis.
ConcIusions of Law
1. The IedeiaI TeIeconnunicalions Acl of 1996 and iecenlIy adopled
CaIifoinia IegisIalion (Senale iII 1161 aulhoied ly Senaloi AIex IadiIIa) Iinil
Californias ability to ieguIale II-enalIed seivices, lul lhey do nol pievenl
CaIifoinia fion ieguIaling passengei lianspoilalion ovei pulIic ioadvays.
2. TNCs aie nol piovideis of II-enalIed seivices and aie nol exenpl fion
oui juiisdiclion.
3. To dale neilhei lhe ICC, noi a couil of highei juiisdiclion, has iuIed lhal
lhis Connission, oi any olhei slale connission, is piecIuded ly lhe IedeiaI
TeIeconnunicalion Acl of 1996 fion ieguIaling TNCs.
4. The Connission ieguIales chailei paily passengei caiiieis puisuanl lo
AilicIe XII of lhe CaIifoinia Conslilulion and lhe Iassengei Chailei-paily
Carriers Act, PU Code, 5351, %# 1%2? Seclion 536O slales in pail:
Subject to the exclusions of Section 5353, charter-paily caiiiei
of passengers means every person engaged in the
lianspoilalion of peisons ly noloi vehicIe foi conpensalion,
vhelhei in connon oi conliacl caiiiage, ovei any pulIic
highvay in lhis slale.
Seclion 5381 slales in pail:
(t)he commission may supervise and regulate every
chailei-paily caiiiei of passengeis in lhe Slale and nay do aII
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thingsnecessary and convenient in the exercise of such
povei and juiisdiclion.
5. The Connission has veiy lioad poveis undei IU Code 7O1 vhich
suggesls lhal lhe Connission has lhe aliIily (via a iuIenaking piocess) lo
deveIop nev calegoiies of ieguIalion vhen a nev lechnoIogy disiupls an
exisling indusliy.
6. We find lhal TNCs aie chailei paily passengei caiiieis, and lheiefoie ve
viII exeicise oui exisling juiisdiclion puisuanl lo AilicIe XII of lhe CaIifoinia
Conslilulion and lhe Iassengei Chailei-party Carriers Act, PU Code 5351
%# 1%2? (lhe Acl). In lhis decision, undei lhe lioad gianl of aulhoiily puisuanl lo
IU Codes 5381 and 7O1, ve cieale lhe calegoiy of TNC lo acconpany lhe
exisling calegoiy of TCI.
7. Seclion 5353(h) piovides lvo oppoilunilies lo quaIify foi lhe iideshaie
exenplion: Tianspoilalion of peisons lelveen hone and voik Iocalions oi of
peisons having a connon voik-ieIaled liip puipose in a vehicIe having a
sealing capacily of 15 passengeis oi Iess, incIuding lhe diivei, vhich aie used foi
lhe puipose of iideshaiing, as defined in 522 of lhe VehicIe Code, vhen lhe
iideshaiing is incidenlaI lo anolhei puipose of lhe diivei.
8. IU Code 5353(h) exenpls lianspoilalion of peisons lelveen hone and
voik Iocalions oi of peisons having a connon voik-ieIaled liip in a vehicIe
having a sealing capacily of 15 passengeis oi Iess, incIuding lhe diivei, vhich aie
used foi lhe puipose of iideshaiing, as defined in 522 of lhe VehicIe Code,
vhen lhe iideshaiing is incidenlaI lo anolhei puipose of lhe diivei.
9. The seclion aIso slales lhe exenplion does nol appIy if lhe piinaiy
purpose for the transportation of those persons is to make a profit. Profit, as
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used in lhis suldivision does nol incIude lhe iecoveiy of acluaI cosls incuiied in
ovning and opeialing a vanpooI vehicIe, as defined in 668 of lhe VehicIe Code.
1O. Cuiienl TNCs do nol fuIfiII lhe iideshaie exenplion and acluaIIy aie
pioviding lianspoilalion seivices foi conpensalion.
11. IU Code 5352 posilions pulIic safely as a key goaI in ensuiing lhal lhe
pulIic enjoys fuII access lo lhe ioadvays.

# " & % "

)K )$ #"&%"%& lhal:
1. Tianspoilalion Nelvoik Conpanies shaII foIIov lhe safely and ieguIaloiy
iequiienenls as delaiIed in Seclion 2.2.4 of lhis decision.
2. AII iepoils iequiied ly lhis decision lo le sulnilled ly Tianspoilalion
Nelvoik Conpanies nusl le veiified ly lhe piovision of a signaluie of an officei
of lhe coipoialion slaling undei penaIly of peijuiy undei lhe Iavs of lhe Slale of
CaIifoinia lhal lhe iepoil is accuiale and conlains no naleiiaI onissions.
3. Lach Tianspoilalion Nelvoik Conpany (TNC) (nol lhe diivei) nusl have
a Iicense vilh lhis Connission. Theie aie six lypes of chailei paily caiiiei
peinils/ceilificales. TNCs shaII appIy foi a cIass I peinil.
4. Lach Tianspoilalion Nelvoik Conpany (TNC) is iequiied lo conducl a
ciininaI lackgiound check foi each diivei piioi lo lhal appIicanl leconing a
TNC diivei. The ciininaI lackgiound check nusl le a nalionaI ciininaI
lackgiound check incIuding lhe nalionaI sex offendei dalalase. The ciininaI
background check must use the applicants social security number and not jusl
lhe applicants name. Any felony criminal conviction within seven years prior to
lhe dale of lhe lackgiound check foi diiving undei lhe infIuence of diugs oi
aIcohoI, fiaud, use of a noloi vehicIe lo connil a feIony, a vioIenl ciine oi acl of
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leiioi, a sexuaI offense, a ciine invoIving piopeily danage, and/oi lhefl viII
nake lhe appIicanl ineIigilIe lo le a TNC diivei.
5. We iequiie lhe Tianspoilalion Nelvoik Conpany (TNC) oi an aulhoiized
lhiid paily faciIily Iicensed ly lhe CaIifoinia uieau of Aulonolive Repaii lo
conducl and ensuie lhal each vehicIe passes a 19-poinl vehicIe inspeclion piioi lo
allowing a vehicle to be driven as part of the TNCs service, and annually
lheieaflei, and foi lhe TNC lo nainlain lhe iecoid of such inspeclions in case of
an audil.
6. We iequiie TNCs lo nainlain conneiciaI IialiIily insuiance poIicies
pioviding nol Iess lhan $1,OOO,OOO (one niIIion doIIais) pei-incidenl coveiage foi
incidenls invoIving vehicIes and diiveis vhiIe lhey aie pioviding TNC seivices.
The insuiance coveiage shaII le avaiIalIe lo covei cIains iegaidIess of vhelhei a
TNC diivei nainlains insuiance adequale lo covei any poilion of lhe cIain. This
insuiance iequiienenl shaII le discIosed on each TNCs app and website.
7. UnliI lhe Depailnenl of Moloi VehicIe (DMV) LnpIoyei IuII Nolice
Iiogian is avaiIalIe foi use ly Tianspoilalion Nelvoik Conpanies (TNC),
TNCs shaII peifoin, piioi lo aIIoving a diivei on lhe pIalfoin and quaileiIy
lheieaflei, diiving iecoid checks lhiough lhe DMV in oidei lo ensuie lhal
diiveis neel appIicalIe iequiienenls. The DMV check ciileiia shaII piovide lhal
a user may have no more than 3 points within the preceding 3 years, no majoi
violations (reckless driving, hit and run, or driving with a suspended license
conviclion) vilhin lhe pieceding 3 yeais, and no diiving undei lhe infIuence
conviclion vilhin lhe pasl 7 yeais.
8. Diiveis foi Tianspoilalion Nelvoik Conpanies aie piohililed fion
accepling slieel haiIs fion polenliaI passengeis.
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9. This decision oideis a second phase lo lhis pioceeding lo ieviev lhe
Commissions existing regulations over limousines and other charter party
caiiieis in oidei lo ensuie lhal lhese iuIes have kepl pace vilh lhe needs of
todays transportation market, and that the public safety rules are up to date. In
addilion, lhe second phase viII considei lhe polenliaI inpacl of any IegisIalive
changes lhal couId affecl oui aliIily lo ieguIale lhe Tianspoilalion Nelvoik
Conpany indusliy.
1O. The Connission viII convene a voikshop one yeai aflei lhe issuance of
lhis decision lo heai fion aII slakehoIdeis on lhe inpacls of lhis nev node of
lianspoilalion and acconpanying ieguIalions. Woikshops lopics viII incIude,
lul nol necessaiiIy le Iiniled lo, a consideialion of safely, conpelilion,
innovalion, accessiliIily, congeslion, lhe CaIifoinia LnviionnenlaI QuaIily Acl,
and olhei poIIulion ieIaled issues.
11. Tianspoilalion Nelvoik Conpanies nusl sulnil a pIan vilhin 9O days of
lhe issuance of lhis decision lo lhe Safely and Lnfoicenenl Division lo expIain
hov lhey pIan lo ensuie lhal lhis nev foin of lianspoilalion seivice does nol
cieale a divide lelveen lhe alIe and disalIed connunilies.
12. Wilhin 45 days aflei lhe effeclive dale of lhis Decision, lhe Connission
viII posl a Tianspoilalion Nelvoik Conpany AppIicalion Iackel on ils velsile,
and Tianspoilalion Nelvoik Conpanies cuiienlIy opeialing in CaIifoinia nusl
fiIe lheii Tianspoilalion Nelvoik Conpany AppIicalions vilh lhe Safely and
Lnfoicenenl Division 6O days lheieaflei if lhey vish lo conlinue opeialing.
13. Ulei is iequiied lo denonsliale lo lhe Connission vilhin 3O days of lhe
issuance of lhis decision lhal il nainlains conneiciaI IialiIily insuiance poIicies
pioviding nol Iess lhan $1,OOO,OOO (one niIIion doIIais) pei-incidenl coveiage foi
incidenls invoIving vehicIes and diiveis vhiIe lhey aie pioviding Ulei seivices.
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The insuiance coveiage shaII le avaiIalIe lo covei cIains iegaidIess of vhelhei
an Ulei diivei nainlains insuiance adequale lo covei any poilion of lhe cIain.
14. UleiX neels lhe Tianspoilalion Nelvoik Conpany (TNC) definilion and
nusl appIy foi a TNC Iicense.
15. No Term and Condition in a TNCs Terms of Service or elsewhere, can be
inconsistent with this decisions commercial liability insurance requirements for
TNCs. Nor can any Term and Condition in a TNCs Terms of Seivice le used oi
ieIied on ly lhe TNC lo deny insuiance coveiage, oi olheivise evade lhe
insuiance iequiienenls eslalIished in lhis decision.
16. Taxicab Paratransit Association of Californias motion to compeI discoveiy
is denied vilhoul piejudice.
17. RuIenaking 12-12-O11 ienains open.
This oidei is effeclive loday.
Daled , al San Iiancisco, CaIifoinia.