By Denise S. Bazzano, Stephanie Gutierrez, Chad W. Harrington, Thomas D. Jex, and Erica L. Vega, Burke, Williams & Sorensen, LLP, Courtesy California Joint Powers Insurance Authority
On September 18, 2020, the Governor signed Assembly Bill 1286, which impacts how shared mobility service providers (e.g. scooter companies like Lime or Bird) operate within a city or county, and requires cities and counties (by ordinance, agreement, or permit terms) to adopt operation, parking, and maintenance rules when such providers are operating within the city’s jurisdiction.
Starting January 1, 2021, before distributing any shared mobility device for use, a shared mobility service provider will be required to 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 must, at a minimum, require that the shared mobility service provider maintain commercial general liability insurance coverage with limits not less than one million dollars ($1,000,000) for each occurrence and not less than five million dollars ($5,000,000) aggregate for all occurrences during the policy period. Under the new law, a shared mobility device is defined as an electrically motorized board, motorized scooter, electric bicycle, bicycle, or other similar personal transportation device.
The new law also requires a city or county that authorizes a shared mobility device provider to operate within its jurisdiction on or after January 1, 2021, to adopt (by ordinance, agreement, or permit terms) operation, parking, and maintenance rules regarding the use of the devices in its jurisdiction before the provider may offer any devices for rent or use. Cities or counties that authorized a provider to operate within its jurisdiction before January 1, 2021, and continue to provide that authorization, must adopt operation, parking, and maintenance rules by January 1, 2022. AB 1286 does not contain specific direction as to the terms or provisions that must be included in the operation, parking, and maintenance rules required by the law.
Providing innovative risk management solutions for its public agency partners for more than 40 years, the California Joint Powers Insurance Authority (California JPIA) is one of the largest municipal self-insurance pools in the state, with more than 120 member cities and other governmental agencies. Members actively participate in shaping the organization to provide important coverage for their operations. The California JPIA provides innovative risk management solutions through a comprehensive portfolio of programs and services, including liability, workers’ compensation, pollution, property, and earthquake coverage, as well as extensive risk management training and loss control services. For more information, please visit the California JPIA’s website at www.cjpia.org.
