On October 13, Governor Jerry Brown signed into law Senate Bill 182, a bill which marks a big step forward for ridesharing in California. SB 182 will ease administrative and financial burdens on transportation network company (TNC) drivers by allowing them to obtain only a single business license in order to operate in the entire state.
California’s current business licensure requirements do not meet today’s reality of internet-enabled ridesharing. Drivers for TNC platforms are inherently mobile and often cross through multiple municipal jurisdictions when picking up and dropping off riders. As a result, drivers unknowingly may have been subject to different business licenses, fees, and requirements as they drive through multiple cities. These licensing laws did not anticipate the advent of internet-enabled ridesharing and have created serious compliance burdens for Californians who are using these platforms to help make ends meet.
SB 182 provides the solution by allowing TNC drivers to obtain a single business license where they are domiciled in order to operate in California.
SB 182 also protects the privacy of drivers by preventing the personal information they’ve submitted to a local jurisdiction to get a business license from being disclosed on a public website. Combined, these changes will help modernize the state’s business license laws to meet the realities of the digital age and protect workers in the 21st Century workforce.
Internet-enabled ridesharing has made transportation more affordable, convenient, and accessible than ever before. SB 182’s updates to existing business license requirements will ensure that outdated business license laws do not put this important economic lifeline at risk for drivers throughout California.
Internet Association was pleased to sponsor SB 182 and sincerely thanks Senator Steven Bradford for his great leadership throughout the legislative process and Governor Jerry Brown for approving the measure.