Amended IN Assembly April 08, 2025 CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Assembly Bill No. 1340Introduced by Assembly Member Members Wicks and BermanFebruary 21, 2025An act to amend Section 66516.5 of the Government Code, relating to transportation. add Chapter 10.7 (commencing with Section 7470) to Division 3 of the Business and Professions Code, relating to transportation.LEGISLATIVE COUNSEL'S DIGESTAB 1340, as amended, Wicks. Metropolitan Transportation Commission: duties. Transportation network company drivers: labor relations.Existing law declares the public policy of the state regarding labor organization, including, among other things, that it is necessary for a worker to have full freedom of association, self-organization, and designation of representatives of their own choosing, to negotiate the terms and conditions of their employment, and to be free from the interference, restraint, or coercion of employers of labor, or their agents, in the designation of such representatives or in self-organization or in other concerted activities for the purpose of collective bargaining or other mutual aid or protection. Existing law, the Protect App-Based Drivers and Services Act, added by Proposition 22, as approved by the voters at the November 3, 2020, statewide general election (the initiative), categorizes app-based drivers for network companies, as defined, as independent contractors if certain conditions are met. Existing law requires, among other things, that the network company provide a health care subsidy to qualifying app-based drivers, provide a minimum level of compensation for app-based drivers, and not restrict app-based drivers from working in any other lawful occupation or business. Existing case law holds that specified provisions of the initiative are invalid on separation of powers grounds; however, the court severed the unconstitutional provisions, allowing the rest of the initiative to remain in effect.Existing law also establishes the Labor and Workforce Development Agency in state government under the supervision of the Secretary of Labor and Workforce Development, and charges the agency with oversight of specified departments, boards, and panels. This bill, the Transportation Network Company Drivers Labor Relations Act, would establish that transportation network company (TNC) drivers have the right to form, join, and participate in the activities of TNC driver organizations of their own choosing to engage in other concerted activities for the purpose of collective bargaining or other mutual aid or protection. The bill would provide that TNC drivers also have the right to refuse to join or participate in the activities of TNC driver organizations. The bill would require the Labor and Workforce Development Agency to enforce these provisions. The bill would define various terms for purposes of the act and would make related legislative policy statements. The Metropolitan Transportation Commission Act establishes the Metropolitan Transportation Commission to provide comprehensive regional transportation planning for the San Francisco Bay area, as provided. Existing law requires the commission to establish a regional transit coordinating council to better coordinate routes, schedules, fares, and transfers among the San Francisco Bay area transit operators and to explore potential advantages of joint ventures in certain areas. The act authorizes the commission, in consultation with the regional transit coordinating council, to identify functions performed by individual public transit systems that could be consolidated to improve the efficiency of regional transit service, and recommend that those functions be consolidated and performed through inter-operator agreements or as services contracted to a single entity.This bill would require the commission to consult with the general manager from each transit operator, instead of the regional transit coordinating council, when identifying functions that could be consolidated and recommending their consolidation, as described above. To the extent that this bill would impose additional duties on transit operators, it would impose a state-mandated local program.The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YESNO Bill TextThe people of the State of California do enact as follows:SECTION 1. Chapter 10.7 (commencing with Section 7470) is added to Division 3 of the Business and Professions Code, to read: CHAPTER 10.7. Transportation Network Company Drivers Labor Relations Act7470. This chapter shall be known, and may be cited as, the Transportation Network Company Drivers Labor Relations Act.7470.1. (a) It is the policy of the State of California to encourage and protect the right of transportation network drivers to full freedom of association, self-organization, and designation of representatives of their own choosing to negotiate the compensation that they receive as well as other terms and conditions of their agreements with transportation network companies.(b) The benefit to the states economy from negotiated compensation agreements between drivers and the transportation network companies, including where those agreements are multiparty, sectoral agreements, outweighs the anticompetitive effect of those agreements. It is the states intent that the state action antitrust exemption to the application of federal and state antitrust laws shall apply to the activities of transportation network company drivers, transportation network company driver organizations, bargaining representatives for transportation network company drivers, and transportation network companies when they are participating in collective negotiations and other activities as authorized or regulated by this chapter.(c) The purposes of this chapter are to provide transportation network drivers the opportunity to self-organize and designate representatives of their own choosing in order to bargain collectively with transportation network companies, to facilitate the prevention or prompt resolution of disputes between transportation network companies and drivers, and to improve the working conditions of transportation network drivers and therefore the services provided to the general public.7470.2. For purposes of this chapter, the following definitions apply:(a) Active TNC driver means a transportation network company (TNC) driver who has driven at least the median number of rides during the past six months of all TNC drivers who have completed at least ____ rides during that time period.(b) Agency means the Labor and Workforce Development Agency.(c) Certified driver bargaining organization means an organization that has submitted authorizations from ____ percent of active TNC drivers or, if a representation election is held, has received a majority of the valid votes cast in that election by active TNC drivers, and has been certified as the representative of TNC drivers.(d) (1) Company union means any committee, employee representation plan, or association of TNC drivers or others that exists for the purpose, in whole or in part, of dealing with TNCs concerning grievances or terms and conditions of work for TNC drivers, for which either or both of the following is true:(A) A TNC has initiated or created the union, or proposed its initiation or creation, or participated in the formulation of its governing rules or policies, or participated in or supervised its management, operations, or elections.(B) A TNC has maintained, financed, controlled, dominated, or assisted in maintaining or financing the union, unless required to do so by this chapter or any regulations implementing this chapter, whether by compensating anyone for services performed in its behalf or by donating free services, equipment, materials, office or meeting space, or anything else of value, or by any other means.(2) A TNC driver organization shall not be deemed a company union solely because any of the following are true:(A) It has negotiated or been granted the right to designate TNC drivers to be released with pay for the purpose of providing representational services in labor-management affairs on behalf of TNC drivers represented by the TNC driver organization.(B) In the course of providing representational services to workers for whom it is the certified driver bargaining organization, a TNC has allowed agents of the TNC driver organization to meet with drivers at the TNCs premises.(C) It has received from a TNC the voluntary membership dues deductions of TNC drivers.(e) Secretary means the Secretary of Labor and Workforce Development.(f) Transportation network company or TNC is a person or company that falls under the definition set forth in subdivision (c) of Section 5431 of the Public Utilities Code. A TNC is covered by this chapter only if it provides more than ____ rides per year of prearranged transportation services in the state and connects passengers with TNC drivers and only with respect to those TNC drivers.(g) Transportation network company driver or TNC driver means any person who uses a vehicle in connection with a transportation network companys online-enabled application or platform to connect with passengers. However, this term does not include any person who is an employee within the meaning of 29 U.S.C. Sec. 152(3).7470.3. (a) TNC drivers have the right to form, join, and participate in the activities of TNC driver organizations of their own choosing to engage in other concerted activities for the purpose of collective bargaining or other mutual aid or protection.(b) TNC drivers also have the right to refuse to join or participate in the activities of TNC driver organizations.(c) This chapter shall not be interpreted to prohibit TNC drivers from exercising the right to confer with TNCs at any time, provided that during any conference there is no attempt by the TNC, directly or indirectly, to interfere with, restrain, or coerce workers in the exercise of the rights guaranteed by this section.(d) The agency shall enforce this chapter.SECTION 1.Section 66516.5 of the Government Code is amended to read:66516.5.The commission may do the following:(a)In consultation with the general manager from each transit operator, identify those functions performed by individual public transit systems that could be consolidated to improve the efficiency of regional transit service, and recommend that those functions be consolidated and performed through inter-operator agreements or as services contracted to a single entity.(b)Improve service coordination and effectiveness in those transit corridors identified as transit corridors of regional significance by the commission in consultation with the regional transit coordinating council by recommending improvements in those corridors, including, but not limited to, reduction of duplicative service and institution of coordinated service across public transit system boundaries.SEC. 2.If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code. Amended IN Assembly April 08, 2025 CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Assembly Bill No. 1340Introduced by Assembly Member Members Wicks and BermanFebruary 21, 2025An act to amend Section 66516.5 of the Government Code, relating to transportation. add Chapter 10.7 (commencing with Section 7470) to Division 3 of the Business and Professions Code, relating to transportation.LEGISLATIVE COUNSEL'S DIGESTAB 1340, as amended, Wicks. Metropolitan Transportation Commission: duties. Transportation network company drivers: labor relations.Existing law declares the public policy of the state regarding labor organization, including, among other things, that it is necessary for a worker to have full freedom of association, self-organization, and designation of representatives of their own choosing, to negotiate the terms and conditions of their employment, and to be free from the interference, restraint, or coercion of employers of labor, or their agents, in the designation of such representatives or in self-organization or in other concerted activities for the purpose of collective bargaining or other mutual aid or protection. Existing law, the Protect App-Based Drivers and Services Act, added by Proposition 22, as approved by the voters at the November 3, 2020, statewide general election (the initiative), categorizes app-based drivers for network companies, as defined, as independent contractors if certain conditions are met. Existing law requires, among other things, that the network company provide a health care subsidy to qualifying app-based drivers, provide a minimum level of compensation for app-based drivers, and not restrict app-based drivers from working in any other lawful occupation or business. Existing case law holds that specified provisions of the initiative are invalid on separation of powers grounds; however, the court severed the unconstitutional provisions, allowing the rest of the initiative to remain in effect.Existing law also establishes the Labor and Workforce Development Agency in state government under the supervision of the Secretary of Labor and Workforce Development, and charges the agency with oversight of specified departments, boards, and panels. This bill, the Transportation Network Company Drivers Labor Relations Act, would establish that transportation network company (TNC) drivers have the right to form, join, and participate in the activities of TNC driver organizations of their own choosing to engage in other concerted activities for the purpose of collective bargaining or other mutual aid or protection. The bill would provide that TNC drivers also have the right to refuse to join or participate in the activities of TNC driver organizations. The bill would require the Labor and Workforce Development Agency to enforce these provisions. The bill would define various terms for purposes of the act and would make related legislative policy statements. The Metropolitan Transportation Commission Act establishes the Metropolitan Transportation Commission to provide comprehensive regional transportation planning for the San Francisco Bay area, as provided. Existing law requires the commission to establish a regional transit coordinating council to better coordinate routes, schedules, fares, and transfers among the San Francisco Bay area transit operators and to explore potential advantages of joint ventures in certain areas. The act authorizes the commission, in consultation with the regional transit coordinating council, to identify functions performed by individual public transit systems that could be consolidated to improve the efficiency of regional transit service, and recommend that those functions be consolidated and performed through inter-operator agreements or as services contracted to a single entity.This bill would require the commission to consult with the general manager from each transit operator, instead of the regional transit coordinating council, when identifying functions that could be consolidated and recommending their consolidation, as described above. To the extent that this bill would impose additional duties on transit operators, it would impose a state-mandated local program.The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YESNO Amended IN Assembly April 08, 2025 Amended IN Assembly April 08, 2025 CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Assembly Bill No. 1340 Introduced by Assembly Member Members Wicks and BermanFebruary 21, 2025 Introduced by Assembly Member Members Wicks and Berman February 21, 2025 An act to amend Section 66516.5 of the Government Code, relating to transportation. add Chapter 10.7 (commencing with Section 7470) to Division 3 of the Business and Professions Code, relating to transportation. LEGISLATIVE COUNSEL'S DIGEST ## LEGISLATIVE COUNSEL'S DIGEST AB 1340, as amended, Wicks. Metropolitan Transportation Commission: duties. Transportation network company drivers: labor relations. Existing law declares the public policy of the state regarding labor organization, including, among other things, that it is necessary for a worker to have full freedom of association, self-organization, and designation of representatives of their own choosing, to negotiate the terms and conditions of their employment, and to be free from the interference, restraint, or coercion of employers of labor, or their agents, in the designation of such representatives or in self-organization or in other concerted activities for the purpose of collective bargaining or other mutual aid or protection. Existing law, the Protect App-Based Drivers and Services Act, added by Proposition 22, as approved by the voters at the November 3, 2020, statewide general election (the initiative), categorizes app-based drivers for network companies, as defined, as independent contractors if certain conditions are met. Existing law requires, among other things, that the network company provide a health care subsidy to qualifying app-based drivers, provide a minimum level of compensation for app-based drivers, and not restrict app-based drivers from working in any other lawful occupation or business. Existing case law holds that specified provisions of the initiative are invalid on separation of powers grounds; however, the court severed the unconstitutional provisions, allowing the rest of the initiative to remain in effect.Existing law also establishes the Labor and Workforce Development Agency in state government under the supervision of the Secretary of Labor and Workforce Development, and charges the agency with oversight of specified departments, boards, and panels. This bill, the Transportation Network Company Drivers Labor Relations Act, would establish that transportation network company (TNC) drivers have the right to form, join, and participate in the activities of TNC driver organizations of their own choosing to engage in other concerted activities for the purpose of collective bargaining or other mutual aid or protection. The bill would provide that TNC drivers also have the right to refuse to join or participate in the activities of TNC driver organizations. The bill would require the Labor and Workforce Development Agency to enforce these provisions. The bill would define various terms for purposes of the act and would make related legislative policy statements. The Metropolitan Transportation Commission Act establishes the Metropolitan Transportation Commission to provide comprehensive regional transportation planning for the San Francisco Bay area, as provided. Existing law requires the commission to establish a regional transit coordinating council to better coordinate routes, schedules, fares, and transfers among the San Francisco Bay area transit operators and to explore potential advantages of joint ventures in certain areas. The act authorizes the commission, in consultation with the regional transit coordinating council, to identify functions performed by individual public transit systems that could be consolidated to improve the efficiency of regional transit service, and recommend that those functions be consolidated and performed through inter-operator agreements or as services contracted to a single entity.This bill would require the commission to consult with the general manager from each transit operator, instead of the regional transit coordinating council, when identifying functions that could be consolidated and recommending their consolidation, as described above. To the extent that this bill would impose additional duties on transit operators, it would impose a state-mandated local program.The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above. Existing law declares the public policy of the state regarding labor organization, including, among other things, that it is necessary for a worker to have full freedom of association, self-organization, and designation of representatives of their own choosing, to negotiate the terms and conditions of their employment, and to be free from the interference, restraint, or coercion of employers of labor, or their agents, in the designation of such representatives or in self-organization or in other concerted activities for the purpose of collective bargaining or other mutual aid or protection. Existing law, the Protect App-Based Drivers and Services Act, added by Proposition 22, as approved by the voters at the November 3, 2020, statewide general election (the initiative), categorizes app-based drivers for network companies, as defined, as independent contractors if certain conditions are met. Existing law requires, among other things, that the network company provide a health care subsidy to qualifying app-based drivers, provide a minimum level of compensation for app-based drivers, and not restrict app-based drivers from working in any other lawful occupation or business. Existing case law holds that specified provisions of the initiative are invalid on separation of powers grounds; however, the court severed the unconstitutional provisions, allowing the rest of the initiative to remain in effect. Existing law also establishes the Labor and Workforce Development Agency in state government under the supervision of the Secretary of Labor and Workforce Development, and charges the agency with oversight of specified departments, boards, and panels. This bill, the Transportation Network Company Drivers Labor Relations Act, would establish that transportation network company (TNC) drivers have the right to form, join, and participate in the activities of TNC driver organizations of their own choosing to engage in other concerted activities for the purpose of collective bargaining or other mutual aid or protection. The bill would provide that TNC drivers also have the right to refuse to join or participate in the activities of TNC driver organizations. The bill would require the Labor and Workforce Development Agency to enforce these provisions. The bill would define various terms for purposes of the act and would make related legislative policy statements. The Metropolitan Transportation Commission Act establishes the Metropolitan Transportation Commission to provide comprehensive regional transportation planning for the San Francisco Bay area, as provided. Existing law requires the commission to establish a regional transit coordinating council to better coordinate routes, schedules, fares, and transfers among the San Francisco Bay area transit operators and to explore potential advantages of joint ventures in certain areas. The act authorizes the commission, in consultation with the regional transit coordinating council, to identify functions performed by individual public transit systems that could be consolidated to improve the efficiency of regional transit service, and recommend that those functions be consolidated and performed through inter-operator agreements or as services contracted to a single entity. This bill would require the commission to consult with the general manager from each transit operator, instead of the regional transit coordinating council, when identifying functions that could be consolidated and recommending their consolidation, as described above. To the extent that this bill would impose additional duties on transit operators, it would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above. ## Digest Key ## Bill Text The people of the State of California do enact as follows:SECTION 1. Chapter 10.7 (commencing with Section 7470) is added to Division 3 of the Business and Professions Code, to read: CHAPTER 10.7. Transportation Network Company Drivers Labor Relations Act7470. This chapter shall be known, and may be cited as, the Transportation Network Company Drivers Labor Relations Act.7470.1. (a) It is the policy of the State of California to encourage and protect the right of transportation network drivers to full freedom of association, self-organization, and designation of representatives of their own choosing to negotiate the compensation that they receive as well as other terms and conditions of their agreements with transportation network companies.(b) The benefit to the states economy from negotiated compensation agreements between drivers and the transportation network companies, including where those agreements are multiparty, sectoral agreements, outweighs the anticompetitive effect of those agreements. It is the states intent that the state action antitrust exemption to the application of federal and state antitrust laws shall apply to the activities of transportation network company drivers, transportation network company driver organizations, bargaining representatives for transportation network company drivers, and transportation network companies when they are participating in collective negotiations and other activities as authorized or regulated by this chapter.(c) The purposes of this chapter are to provide transportation network drivers the opportunity to self-organize and designate representatives of their own choosing in order to bargain collectively with transportation network companies, to facilitate the prevention or prompt resolution of disputes between transportation network companies and drivers, and to improve the working conditions of transportation network drivers and therefore the services provided to the general public.7470.2. For purposes of this chapter, the following definitions apply:(a) Active TNC driver means a transportation network company (TNC) driver who has driven at least the median number of rides during the past six months of all TNC drivers who have completed at least ____ rides during that time period.(b) Agency means the Labor and Workforce Development Agency.(c) Certified driver bargaining organization means an organization that has submitted authorizations from ____ percent of active TNC drivers or, if a representation election is held, has received a majority of the valid votes cast in that election by active TNC drivers, and has been certified as the representative of TNC drivers.(d) (1) Company union means any committee, employee representation plan, or association of TNC drivers or others that exists for the purpose, in whole or in part, of dealing with TNCs concerning grievances or terms and conditions of work for TNC drivers, for which either or both of the following is true:(A) A TNC has initiated or created the union, or proposed its initiation or creation, or participated in the formulation of its governing rules or policies, or participated in or supervised its management, operations, or elections.(B) A TNC has maintained, financed, controlled, dominated, or assisted in maintaining or financing the union, unless required to do so by this chapter or any regulations implementing this chapter, whether by compensating anyone for services performed in its behalf or by donating free services, equipment, materials, office or meeting space, or anything else of value, or by any other means.(2) A TNC driver organization shall not be deemed a company union solely because any of the following are true:(A) It has negotiated or been granted the right to designate TNC drivers to be released with pay for the purpose of providing representational services in labor-management affairs on behalf of TNC drivers represented by the TNC driver organization.(B) In the course of providing representational services to workers for whom it is the certified driver bargaining organization, a TNC has allowed agents of the TNC driver organization to meet with drivers at the TNCs premises.(C) It has received from a TNC the voluntary membership dues deductions of TNC drivers.(e) Secretary means the Secretary of Labor and Workforce Development.(f) Transportation network company or TNC is a person or company that falls under the definition set forth in subdivision (c) of Section 5431 of the Public Utilities Code. A TNC is covered by this chapter only if it provides more than ____ rides per year of prearranged transportation services in the state and connects passengers with TNC drivers and only with respect to those TNC drivers.(g) Transportation network company driver or TNC driver means any person who uses a vehicle in connection with a transportation network companys online-enabled application or platform to connect with passengers. However, this term does not include any person who is an employee within the meaning of 29 U.S.C. Sec. 152(3).7470.3. (a) TNC drivers have the right to form, join, and participate in the activities of TNC driver organizations of their own choosing to engage in other concerted activities for the purpose of collective bargaining or other mutual aid or protection.(b) TNC drivers also have the right to refuse to join or participate in the activities of TNC driver organizations.(c) This chapter shall not be interpreted to prohibit TNC drivers from exercising the right to confer with TNCs at any time, provided that during any conference there is no attempt by the TNC, directly or indirectly, to interfere with, restrain, or coerce workers in the exercise of the rights guaranteed by this section.(d) The agency shall enforce this chapter.SECTION 1.Section 66516.5 of the Government Code is amended to read:66516.5.The commission may do the following:(a)In consultation with the general manager from each transit operator, identify those functions performed by individual public transit systems that could be consolidated to improve the efficiency of regional transit service, and recommend that those functions be consolidated and performed through inter-operator agreements or as services contracted to a single entity.(b)Improve service coordination and effectiveness in those transit corridors identified as transit corridors of regional significance by the commission in consultation with the regional transit coordinating council by recommending improvements in those corridors, including, but not limited to, reduction of duplicative service and institution of coordinated service across public transit system boundaries.SEC. 2.If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code. The people of the State of California do enact as follows: ## The people of the State of California do enact as follows: SECTION 1. Chapter 10.7 (commencing with Section 7470) is added to Division 3 of the Business and Professions Code, to read: CHAPTER 10.7. Transportation Network Company Drivers Labor Relations Act7470. This chapter shall be known, and may be cited as, the Transportation Network Company Drivers Labor Relations Act.7470.1. (a) It is the policy of the State of California to encourage and protect the right of transportation network drivers to full freedom of association, self-organization, and designation of representatives of their own choosing to negotiate the compensation that they receive as well as other terms and conditions of their agreements with transportation network companies.(b) The benefit to the states economy from negotiated compensation agreements between drivers and the transportation network companies, including where those agreements are multiparty, sectoral agreements, outweighs the anticompetitive effect of those agreements. It is the states intent that the state action antitrust exemption to the application of federal and state antitrust laws shall apply to the activities of transportation network company drivers, transportation network company driver organizations, bargaining representatives for transportation network company drivers, and transportation network companies when they are participating in collective negotiations and other activities as authorized or regulated by this chapter.(c) The purposes of this chapter are to provide transportation network drivers the opportunity to self-organize and designate representatives of their own choosing in order to bargain collectively with transportation network companies, to facilitate the prevention or prompt resolution of disputes between transportation network companies and drivers, and to improve the working conditions of transportation network drivers and therefore the services provided to the general public.7470.2. For purposes of this chapter, the following definitions apply:(a) Active TNC driver means a transportation network company (TNC) driver who has driven at least the median number of rides during the past six months of all TNC drivers who have completed at least ____ rides during that time period.(b) Agency means the Labor and Workforce Development Agency.(c) Certified driver bargaining organization means an organization that has submitted authorizations from ____ percent of active TNC drivers or, if a representation election is held, has received a majority of the valid votes cast in that election by active TNC drivers, and has been certified as the representative of TNC drivers.(d) (1) Company union means any committee, employee representation plan, or association of TNC drivers or others that exists for the purpose, in whole or in part, of dealing with TNCs concerning grievances or terms and conditions of work for TNC drivers, for which either or both of the following is true:(A) A TNC has initiated or created the union, or proposed its initiation or creation, or participated in the formulation of its governing rules or policies, or participated in or supervised its management, operations, or elections.(B) A TNC has maintained, financed, controlled, dominated, or assisted in maintaining or financing the union, unless required to do so by this chapter or any regulations implementing this chapter, whether by compensating anyone for services performed in its behalf or by donating free services, equipment, materials, office or meeting space, or anything else of value, or by any other means.(2) A TNC driver organization shall not be deemed a company union solely because any of the following are true:(A) It has negotiated or been granted the right to designate TNC drivers to be released with pay for the purpose of providing representational services in labor-management affairs on behalf of TNC drivers represented by the TNC driver organization.(B) In the course of providing representational services to workers for whom it is the certified driver bargaining organization, a TNC has allowed agents of the TNC driver organization to meet with drivers at the TNCs premises.(C) It has received from a TNC the voluntary membership dues deductions of TNC drivers.(e) Secretary means the Secretary of Labor and Workforce Development.(f) Transportation network company or TNC is a person or company that falls under the definition set forth in subdivision (c) of Section 5431 of the Public Utilities Code. A TNC is covered by this chapter only if it provides more than ____ rides per year of prearranged transportation services in the state and connects passengers with TNC drivers and only with respect to those TNC drivers.(g) Transportation network company driver or TNC driver means any person who uses a vehicle in connection with a transportation network companys online-enabled application or platform to connect with passengers. However, this term does not include any person who is an employee within the meaning of 29 U.S.C. Sec. 152(3).7470.3. (a) TNC drivers have the right to form, join, and participate in the activities of TNC driver organizations of their own choosing to engage in other concerted activities for the purpose of collective bargaining or other mutual aid or protection.(b) TNC drivers also have the right to refuse to join or participate in the activities of TNC driver organizations.(c) This chapter shall not be interpreted to prohibit TNC drivers from exercising the right to confer with TNCs at any time, provided that during any conference there is no attempt by the TNC, directly or indirectly, to interfere with, restrain, or coerce workers in the exercise of the rights guaranteed by this section.(d) The agency shall enforce this chapter. SECTION 1. Chapter 10.7 (commencing with Section 7470) is added to Division 3 of the Business and Professions Code, to read: ### SECTION 1. CHAPTER 10.7. Transportation Network Company Drivers Labor Relations Act7470. This chapter shall be known, and may be cited as, the Transportation Network Company Drivers Labor Relations Act.7470.1. (a) It is the policy of the State of California to encourage and protect the right of transportation network drivers to full freedom of association, self-organization, and designation of representatives of their own choosing to negotiate the compensation that they receive as well as other terms and conditions of their agreements with transportation network companies.(b) The benefit to the states economy from negotiated compensation agreements between drivers and the transportation network companies, including where those agreements are multiparty, sectoral agreements, outweighs the anticompetitive effect of those agreements. It is the states intent that the state action antitrust exemption to the application of federal and state antitrust laws shall apply to the activities of transportation network company drivers, transportation network company driver organizations, bargaining representatives for transportation network company drivers, and transportation network companies when they are participating in collective negotiations and other activities as authorized or regulated by this chapter.(c) The purposes of this chapter are to provide transportation network drivers the opportunity to self-organize and designate representatives of their own choosing in order to bargain collectively with transportation network companies, to facilitate the prevention or prompt resolution of disputes between transportation network companies and drivers, and to improve the working conditions of transportation network drivers and therefore the services provided to the general public.7470.2. For purposes of this chapter, the following definitions apply:(a) Active TNC driver means a transportation network company (TNC) driver who has driven at least the median number of rides during the past six months of all TNC drivers who have completed at least ____ rides during that time period.(b) Agency means the Labor and Workforce Development Agency.(c) Certified driver bargaining organization means an organization that has submitted authorizations from ____ percent of active TNC drivers or, if a representation election is held, has received a majority of the valid votes cast in that election by active TNC drivers, and has been certified as the representative of TNC drivers.(d) (1) Company union means any committee, employee representation plan, or association of TNC drivers or others that exists for the purpose, in whole or in part, of dealing with TNCs concerning grievances or terms and conditions of work for TNC drivers, for which either or both of the following is true:(A) A TNC has initiated or created the union, or proposed its initiation or creation, or participated in the formulation of its governing rules or policies, or participated in or supervised its management, operations, or elections.(B) A TNC has maintained, financed, controlled, dominated, or assisted in maintaining or financing the union, unless required to do so by this chapter or any regulations implementing this chapter, whether by compensating anyone for services performed in its behalf or by donating free services, equipment, materials, office or meeting space, or anything else of value, or by any other means.(2) A TNC driver organization shall not be deemed a company union solely because any of the following are true:(A) It has negotiated or been granted the right to designate TNC drivers to be released with pay for the purpose of providing representational services in labor-management affairs on behalf of TNC drivers represented by the TNC driver organization.(B) In the course of providing representational services to workers for whom it is the certified driver bargaining organization, a TNC has allowed agents of the TNC driver organization to meet with drivers at the TNCs premises.(C) It has received from a TNC the voluntary membership dues deductions of TNC drivers.(e) Secretary means the Secretary of Labor and Workforce Development.(f) Transportation network company or TNC is a person or company that falls under the definition set forth in subdivision (c) of Section 5431 of the Public Utilities Code. A TNC is covered by this chapter only if it provides more than ____ rides per year of prearranged transportation services in the state and connects passengers with TNC drivers and only with respect to those TNC drivers.(g) Transportation network company driver or TNC driver means any person who uses a vehicle in connection with a transportation network companys online-enabled application or platform to connect with passengers. However, this term does not include any person who is an employee within the meaning of 29 U.S.C. Sec. 152(3).7470.3. (a) TNC drivers have the right to form, join, and participate in the activities of TNC driver organizations of their own choosing to engage in other concerted activities for the purpose of collective bargaining or other mutual aid or protection.(b) TNC drivers also have the right to refuse to join or participate in the activities of TNC driver organizations.(c) This chapter shall not be interpreted to prohibit TNC drivers from exercising the right to confer with TNCs at any time, provided that during any conference there is no attempt by the TNC, directly or indirectly, to interfere with, restrain, or coerce workers in the exercise of the rights guaranteed by this section.(d) The agency shall enforce this chapter. CHAPTER 10.7. Transportation Network Company Drivers Labor Relations Act7470. This chapter shall be known, and may be cited as, the Transportation Network Company Drivers Labor Relations Act.7470.1. (a) It is the policy of the State of California to encourage and protect the right of transportation network drivers to full freedom of association, self-organization, and designation of representatives of their own choosing to negotiate the compensation that they receive as well as other terms and conditions of their agreements with transportation network companies.(b) The benefit to the states economy from negotiated compensation agreements between drivers and the transportation network companies, including where those agreements are multiparty, sectoral agreements, outweighs the anticompetitive effect of those agreements. It is the states intent that the state action antitrust exemption to the application of federal and state antitrust laws shall apply to the activities of transportation network company drivers, transportation network company driver organizations, bargaining representatives for transportation network company drivers, and transportation network companies when they are participating in collective negotiations and other activities as authorized or regulated by this chapter.(c) The purposes of this chapter are to provide transportation network drivers the opportunity to self-organize and designate representatives of their own choosing in order to bargain collectively with transportation network companies, to facilitate the prevention or prompt resolution of disputes between transportation network companies and drivers, and to improve the working conditions of transportation network drivers and therefore the services provided to the general public.7470.2. For purposes of this chapter, the following definitions apply:(a) Active TNC driver means a transportation network company (TNC) driver who has driven at least the median number of rides during the past six months of all TNC drivers who have completed at least ____ rides during that time period.(b) Agency means the Labor and Workforce Development Agency.(c) Certified driver bargaining organization means an organization that has submitted authorizations from ____ percent of active TNC drivers or, if a representation election is held, has received a majority of the valid votes cast in that election by active TNC drivers, and has been certified as the representative of TNC drivers.(d) (1) Company union means any committee, employee representation plan, or association of TNC drivers or others that exists for the purpose, in whole or in part, of dealing with TNCs concerning grievances or terms and conditions of work for TNC drivers, for which either or both of the following is true:(A) A TNC has initiated or created the union, or proposed its initiation or creation, or participated in the formulation of its governing rules or policies, or participated in or supervised its management, operations, or elections.(B) A TNC has maintained, financed, controlled, dominated, or assisted in maintaining or financing the union, unless required to do so by this chapter or any regulations implementing this chapter, whether by compensating anyone for services performed in its behalf or by donating free services, equipment, materials, office or meeting space, or anything else of value, or by any other means.(2) A TNC driver organization shall not be deemed a company union solely because any of the following are true:(A) It has negotiated or been granted the right to designate TNC drivers to be released with pay for the purpose of providing representational services in labor-management affairs on behalf of TNC drivers represented by the TNC driver organization.(B) In the course of providing representational services to workers for whom it is the certified driver bargaining organization, a TNC has allowed agents of the TNC driver organization to meet with drivers at the TNCs premises.(C) It has received from a TNC the voluntary membership dues deductions of TNC drivers.(e) Secretary means the Secretary of Labor and Workforce Development.(f) Transportation network company or TNC is a person or company that falls under the definition set forth in subdivision (c) of Section 5431 of the Public Utilities Code. A TNC is covered by this chapter only if it provides more than ____ rides per year of prearranged transportation services in the state and connects passengers with TNC drivers and only with respect to those TNC drivers.(g) Transportation network company driver or TNC driver means any person who uses a vehicle in connection with a transportation network companys online-enabled application or platform to connect with passengers. However, this term does not include any person who is an employee within the meaning of 29 U.S.C. Sec. 152(3).7470.3. (a) TNC drivers have the right to form, join, and participate in the activities of TNC driver organizations of their own choosing to engage in other concerted activities for the purpose of collective bargaining or other mutual aid or protection.(b) TNC drivers also have the right to refuse to join or participate in the activities of TNC driver organizations.(c) This chapter shall not be interpreted to prohibit TNC drivers from exercising the right to confer with TNCs at any time, provided that during any conference there is no attempt by the TNC, directly or indirectly, to interfere with, restrain, or coerce workers in the exercise of the rights guaranteed by this section.(d) The agency shall enforce this chapter. CHAPTER 10.7. Transportation Network Company Drivers Labor Relations Act CHAPTER 10.7. Transportation Network Company Drivers Labor Relations Act 7470. This chapter shall be known, and may be cited as, the Transportation Network Company Drivers Labor Relations Act. 7470. This chapter shall be known, and may be cited as, the Transportation Network Company Drivers Labor Relations Act. 7470.1. (a) It is the policy of the State of California to encourage and protect the right of transportation network drivers to full freedom of association, self-organization, and designation of representatives of their own choosing to negotiate the compensation that they receive as well as other terms and conditions of their agreements with transportation network companies.(b) The benefit to the states economy from negotiated compensation agreements between drivers and the transportation network companies, including where those agreements are multiparty, sectoral agreements, outweighs the anticompetitive effect of those agreements. It is the states intent that the state action antitrust exemption to the application of federal and state antitrust laws shall apply to the activities of transportation network company drivers, transportation network company driver organizations, bargaining representatives for transportation network company drivers, and transportation network companies when they are participating in collective negotiations and other activities as authorized or regulated by this chapter.(c) The purposes of this chapter are to provide transportation network drivers the opportunity to self-organize and designate representatives of their own choosing in order to bargain collectively with transportation network companies, to facilitate the prevention or prompt resolution of disputes between transportation network companies and drivers, and to improve the working conditions of transportation network drivers and therefore the services provided to the general public. 7470.1. (a) It is the policy of the State of California to encourage and protect the right of transportation network drivers to full freedom of association, self-organization, and designation of representatives of their own choosing to negotiate the compensation that they receive as well as other terms and conditions of their agreements with transportation network companies. (b) The benefit to the states economy from negotiated compensation agreements between drivers and the transportation network companies, including where those agreements are multiparty, sectoral agreements, outweighs the anticompetitive effect of those agreements. It is the states intent that the state action antitrust exemption to the application of federal and state antitrust laws shall apply to the activities of transportation network company drivers, transportation network company driver organizations, bargaining representatives for transportation network company drivers, and transportation network companies when they are participating in collective negotiations and other activities as authorized or regulated by this chapter. (c) The purposes of this chapter are to provide transportation network drivers the opportunity to self-organize and designate representatives of their own choosing in order to bargain collectively with transportation network companies, to facilitate the prevention or prompt resolution of disputes between transportation network companies and drivers, and to improve the working conditions of transportation network drivers and therefore the services provided to the general public. 7470.2. For purposes of this chapter, the following definitions apply:(a) Active TNC driver means a transportation network company (TNC) driver who has driven at least the median number of rides during the past six months of all TNC drivers who have completed at least ____ rides during that time period.(b) Agency means the Labor and Workforce Development Agency.(c) Certified driver bargaining organization means an organization that has submitted authorizations from ____ percent of active TNC drivers or, if a representation election is held, has received a majority of the valid votes cast in that election by active TNC drivers, and has been certified as the representative of TNC drivers.(d) (1) Company union means any committee, employee representation plan, or association of TNC drivers or others that exists for the purpose, in whole or in part, of dealing with TNCs concerning grievances or terms and conditions of work for TNC drivers, for which either or both of the following is true:(A) A TNC has initiated or created the union, or proposed its initiation or creation, or participated in the formulation of its governing rules or policies, or participated in or supervised its management, operations, or elections.(B) A TNC has maintained, financed, controlled, dominated, or assisted in maintaining or financing the union, unless required to do so by this chapter or any regulations implementing this chapter, whether by compensating anyone for services performed in its behalf or by donating free services, equipment, materials, office or meeting space, or anything else of value, or by any other means.(2) A TNC driver organization shall not be deemed a company union solely because any of the following are true:(A) It has negotiated or been granted the right to designate TNC drivers to be released with pay for the purpose of providing representational services in labor-management affairs on behalf of TNC drivers represented by the TNC driver organization.(B) In the course of providing representational services to workers for whom it is the certified driver bargaining organization, a TNC has allowed agents of the TNC driver organization to meet with drivers at the TNCs premises.(C) It has received from a TNC the voluntary membership dues deductions of TNC drivers.(e) Secretary means the Secretary of Labor and Workforce Development.(f) Transportation network company or TNC is a person or company that falls under the definition set forth in subdivision (c) of Section 5431 of the Public Utilities Code. A TNC is covered by this chapter only if it provides more than ____ rides per year of prearranged transportation services in the state and connects passengers with TNC drivers and only with respect to those TNC drivers.(g) Transportation network company driver or TNC driver means any person who uses a vehicle in connection with a transportation network companys online-enabled application or platform to connect with passengers. However, this term does not include any person who is an employee within the meaning of 29 U.S.C. Sec. 152(3). 7470.2. For purposes of this chapter, the following definitions apply: (a) Active TNC driver means a transportation network company (TNC) driver who has driven at least the median number of rides during the past six months of all TNC drivers who have completed at least ____ rides during that time period. (b) Agency means the Labor and Workforce Development Agency. (c) Certified driver bargaining organization means an organization that has submitted authorizations from ____ percent of active TNC drivers or, if a representation election is held, has received a majority of the valid votes cast in that election by active TNC drivers, and has been certified as the representative of TNC drivers. (d) (1) Company union means any committee, employee representation plan, or association of TNC drivers or others that exists for the purpose, in whole or in part, of dealing with TNCs concerning grievances or terms and conditions of work for TNC drivers, for which either or both of the following is true: (A) A TNC has initiated or created the union, or proposed its initiation or creation, or participated in the formulation of its governing rules or policies, or participated in or supervised its management, operations, or elections. (B) A TNC has maintained, financed, controlled, dominated, or assisted in maintaining or financing the union, unless required to do so by this chapter or any regulations implementing this chapter, whether by compensating anyone for services performed in its behalf or by donating free services, equipment, materials, office or meeting space, or anything else of value, or by any other means. (2) A TNC driver organization shall not be deemed a company union solely because any of the following are true: (A) It has negotiated or been granted the right to designate TNC drivers to be released with pay for the purpose of providing representational services in labor-management affairs on behalf of TNC drivers represented by the TNC driver organization. (B) In the course of providing representational services to workers for whom it is the certified driver bargaining organization, a TNC has allowed agents of the TNC driver organization to meet with drivers at the TNCs premises. (C) It has received from a TNC the voluntary membership dues deductions of TNC drivers. (e) Secretary means the Secretary of Labor and Workforce Development. (f) Transportation network company or TNC is a person or company that falls under the definition set forth in subdivision (c) of Section 5431 of the Public Utilities Code. A TNC is covered by this chapter only if it provides more than ____ rides per year of prearranged transportation services in the state and connects passengers with TNC drivers and only with respect to those TNC drivers. (g) Transportation network company driver or TNC driver means any person who uses a vehicle in connection with a transportation network companys online-enabled application or platform to connect with passengers. However, this term does not include any person who is an employee within the meaning of 29 U.S.C. Sec. 152(3). 7470.3. (a) TNC drivers have the right to form, join, and participate in the activities of TNC driver organizations of their own choosing to engage in other concerted activities for the purpose of collective bargaining or other mutual aid or protection.(b) TNC drivers also have the right to refuse to join or participate in the activities of TNC driver organizations.(c) This chapter shall not be interpreted to prohibit TNC drivers from exercising the right to confer with TNCs at any time, provided that during any conference there is no attempt by the TNC, directly or indirectly, to interfere with, restrain, or coerce workers in the exercise of the rights guaranteed by this section.(d) The agency shall enforce this chapter. 7470.3. (a) TNC drivers have the right to form, join, and participate in the activities of TNC driver organizations of their own choosing to engage in other concerted activities for the purpose of collective bargaining or other mutual aid or protection. (b) TNC drivers also have the right to refuse to join or participate in the activities of TNC driver organizations. (c) This chapter shall not be interpreted to prohibit TNC drivers from exercising the right to confer with TNCs at any time, provided that during any conference there is no attempt by the TNC, directly or indirectly, to interfere with, restrain, or coerce workers in the exercise of the rights guaranteed by this section. (d) The agency shall enforce this chapter. The commission may do the following: (a)In consultation with the general manager from each transit operator, identify those functions performed by individual public transit systems that could be consolidated to improve the efficiency of regional transit service, and recommend that those functions be consolidated and performed through inter-operator agreements or as services contracted to a single entity. (b)Improve service coordination and effectiveness in those transit corridors identified as transit corridors of regional significance by the commission in consultation with the regional transit coordinating council by recommending improvements in those corridors, including, but not limited to, reduction of duplicative service and institution of coordinated service across public transit system boundaries. If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.