AB 371

Bill Subjects

Abstract

Existing law requires a shared mobility service provider, as defined, to enter into an agreement with, or obtain a permit from, the city or county with jurisdiction over the area of use. Existing law defines shared mobility device to mean an electrically motorized board, motorized scooter, electric bicycle, bicycle, or other similar personal transportation device, except as provided. Existing law requires a city or county that authorizes a shared mobility device provider to operate within its jurisdiction to adopt operation, parking, and maintenance rules, as provided, regarding the use of the shared mobility devices in its jurisdiction before the provider may offer shared mobility devices for rent or use. This bill would require a shared mobility service provider to affix to each shared mobility device a tactile sign containing raised characters and accompanying Braille, as specified, to identify the device for the purpose of reporting illegal or negligent activity. Existing law requires that the shared mobility provider maintain a specified amount of commercial general liability insurance that, among other things, must be with a carrier doing business in California, in a user agreement before distributing a shared mobility device within that jurisdiction. This bill, rather than require the shared mobility service provider to maintain commercial general liability insurance with a carrier doing business in California, would require the coverage to be with an admitted insurer or a nonadmitted insurer, as specified. Starting July 1, 2023, this bill would require a shared mobility service provider or user of a shared mobility device to offer or make available, or to confirm a user of a shared mobility device maintains, $10,000 of coverage for any bodily injury or death suffered by a pedestrian in any one accident when the injury or death involves, in whole or in part, the negligent conduct of the shared mobility device user, and $1,000 of coverage for any property damage to an assistive technology device, as defined. The bill would prohibit a shared mobility service provider from allowing a user or individual to operate or utilize a shared mobility device without the coverage, and would exempt bicycles propelled exclusively by human power and specified electric bicycles from these requirements. The bill would authorize a provider to partner with an insurer to provide coverage that meets or exceeds those requirements to its users via its digital application or other electronic or digital platform, and fund the cost of providing coverage in its standard fee or through a separate charge to users. The bill would require the shared mobility service provider to maintain coverage if a user does not maintain the required insurance coverage. The bill would authorize a provider to enter into agreements with users that maintain their own coverage that meets or exceeds the above requirements to exclude the user from the provider's coverage. The bill would also require a provider to keep an up-to-date list of its users that maintain their own coverage and transmit annually, to the Department of Insurance, information on the percentage of total users in the state that maintain their own coverage and the total number of users, as specified. The bill would specify that it does not prohibit a provider from requiring a user to enter into an indemnity contract, and would specify certain requirements that the indemnity contract would be required to meet. The bill would prohibit parties from waiving or modifying any of its provisions by contractual agreement, act, or omission. The bill would require a shared mobility service provider to disclose, in a specified manner, prior to allowing the user to initiate their first use of a device, that the customer's existing homeowner's, renter's, or automobile insurance policies might not provide coverage for liability resulting from the use of shared mobility devices and that the customer should contact their insurance company or insurance agent to determine if coverage is provided. This bill would require, no later than December 31, 2026, the Department of Insurance to submit to the Legislature and insurance committees, as specified, a study that includes, among other things, recommendations to update shared mobility device insurance coverage requirements, how to strengthen the market for individual mobility device liability coverage, and whether there is a need for insurance coverage for injuries involving bicycles propelled exclusively by human power and specified electric bicycles.