Today's Law As Amended


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AB-371 Shared mobility devices: insurance and tracking.(2021-2022)



As Amends the Law Today


SECTION 1.

 Section 2505 of the Civil Code is amended to read:

2505.
 (a) For purposes of this title:
(1) “Shared mobility device” means an electrically motorized board as defined in Section 313.5 of the Vehicle Code, motorized scooter as defined in Section 407.5 of the Vehicle Code, electric bicycle as defined in Section 312.5 of the Vehicle Code, bicycle as defined in Section 231 of the Vehicle Code, or other similar personal transportation device, except as provided in subdivision (b) of Section 415 of the Vehicle Code, that is made available to the public by a shared mobility service provider for shared use and transportation in exchange for financial compensation via a digital application or other electronic or digital platform.
(2) “Shared mobility service provider” or “provider” means a person or entity that offers, makes available, or provides a shared mobility device in exchange for financial compensation or membership via a digital application or other electronic or digital platform.
(b) (1)  Before distribution of a shared mobility device, a shared mobility service provider shall enter into an agreement with, or obtain a permit from, the city or county with jurisdiction over the area of use. The agreement or permit shall, at a minimum, require that the shared mobility service provider maintain commercial general liability insurance coverage with a carrier doing business in California, with  an admitted insurer, or a nonadmitted insurer that is eligible to insure a home state insured under Chapter 6 (commencing with Section 1760) of Part 2 of Division 1 of the Insurance Code, with  limits not less than one million dollars ($1,000,000) for each occurrence for bodily injury or property damage, including contractual liability, personal injury, and product liability and completed operations, and not less than five million dollars ($5,000,000) aggregate for all occurrences during the policy period. The insurance shall not exclude coverage for injuries or damages caused by the shared mobility service provider to the shared mobility device user.
(2) Notwithstanding any other law, effective January 1, 2023, the insurance coverage required pursuant to paragraph (1) shall include coverage for any personal injury or property damage suffered by a pedestrian when the injury involves, in whole or in part, the negligent conduct of the shared mobility device user, of at least one hundred thousand dollars ($100,000) for each occurrence for bodily injury or property damage, and five hundred thousand dollars ($500,000) in the aggregate for all occurrences in the policy period.
(3) Effective January 1, 2023, nothing in this section shall prohibit a provider from requiring a user to enter into an indemnity contract whereby the user will indemnify the provider for the user’s proportionate share of liability. The indemnity contract shall not require the user to defend or indemnify the provider for the provider’s negligence or willful misconduct. This section shall not be waived or modified by contractual agreement, act, or omission of the parties.
(c) (1) A city or county that authorizes a provider to operate within its jurisdiction on or after January 1, 2021, shall adopt rules for the operation, parking, and maintenance of shared mobility devices before a provider may offer any shared mobility device for rent or use in the city or county by any of the following:
(A) Ordinance.
(B) Agreement.
(C) Permit terms.
(2) A city or county that authorized a provider to operate within its jurisdiction before January 1, 2021, and continues to provide that authorization shall adopt rules for the operation, parking, and maintenance of shared mobility devices by January 1, 2022, by any of the following:
(A) Ordinance.
(B) Agreement.
(C) Permit terms.
(3) A provider shall comply with all applicable rules, agreements, and permit terms established pursuant to this subdivision.
(d) Nothing in this section shall prohibit a city or county from adopting any ordinance or regulation that is not inconsistent with this title.
(e) On or before January 1, 2023, a shared mobility service provider shall disclose to its customers 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.
(1) The disclosure shall meet both of the following requirements:
(A) The disclosure is made to, and acknowledged by, the customer via the provider’s digital application or electronic platform in a manner that contains no information other than the disclosure, each time the device is released to the customer for their use.
(B) The disclosure is affixed to each shared mobility device in a location readily accessible to a customer.
(2) The disclosure shall include the following language in capital letters:

“YOUR HOMEOWNER’S, RENTER’S, OR AUTOMOBILE INSURANCE POLICIES MIGHT NOT PROVIDE COVERAGE FOR ACCIDENTS INVOLVING THE USE OF THIS DEVICE. TO DETERMINE IF COVERAGE IS PROVIDED YOU SHOULD CONTACT YOUR INSURANCE COMPANY OR AGENT.”

SEC. 2.

 Section 2506 is added to the Civil Code, to read:

2506.
 A shared mobility service provider shall affix to each shared mobility device a readily accessible, single, unique, and clearly displayed tactile sign containing raised characters and accompanying Braille, complying with Section 11B-703 of the Building Code, to identify the device for the purpose of reporting illegal or negligent activity. The sign shall minimally consist of the company name of the service provider and an alphanumeric ID assigned by the service provider that is visible a minimum of five feet and not obfuscated by branding or other markings.