§ 7470.17. — 7470.17. (Added by Stats. 2025, Ch. 335, Sec. 1.)

California § 7470.17.

• Jurisdiction: California
• Code BPC: Business and Professions Code - BPC
• Div. 3.: DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY
• Ch. 10.7.: CHAPTER 10.7. Transportation Network Company Drivers Labor Relations Act

Text

(a)
After a sectoral agreement has been approved by the parties or recommended by an arbitrator, the agreement shall be submitted to the board for approval or disapproval.
(b)
The general counsel of the board shall review the proposed agreement to determine whether:
(1)
The agreement addresses the mandatory subjects established in subdivision (a) of Section 7470.13 that were not mutually waived.
(2)
The agreement does not contain any terms prohibited by subdivision (c) of Section 7470.13.
(3)
The agreement advances the public policy goals stated
in Section 7470.1.
(4)
The agreement will not have anticompetitive effects on the industry beyond those contemplated by this act.
(5)
The agreement was the product of fair, arm’s-length negotiation or arbitration under the procedures of this chapter.
(c)
The general counsel has the right to gather and consider any necessary additional evidence, including by requesting additional information from the certified driver bargaining organization and the covered TNC, to review the proposed agreement.
(d)
The general counsel shall issue a recommended determination as to whether the agreement should be approved or disapproved. If the general counsel recommends that the agreement be disapproved, the general counsel shall provide reasons for the disapproval and
identify any provisions that the general counsel determined were not consistent with the standards in subdivision (b). If the general counsel recommends approval of the agreement, the general counsel shall provide a written opinion identifying the reasons for the approval. Absent good cause, the general counsel shall issue the determination within 60 days of receipt of the recommended agreement.
(e)
The general counsel’s recommendation shall be served on the board and the parties to the agreement. Within 21 days of the general counsel’s recommendation, the board shall issue a final order that approves or disapproves the agreement.
(f)
If a final order of the board disapproves of the proposed sectoral agreement, the certified driver bargaining organization and covered TNCs shall bargain in good faith to reach agreement on a revised sectoral agreement for submission to the board. If
the proposed sectoral agreement was recommended by an arbitrator or modified by the parties after an arbitrator recommended a sectoral agreement, either the certified driver bargaining organization or the covered TNCs may request that the board remand the matter to the arbitrator for resolution of any disputes and the issuance of a revised recommended sectoral agreement for submission to the board. A revised agreement shall be submitted to the board for review pursuant to this section.
(g)
(1)
If the proposed sectoral agreement includes binding terms that were recommended by an arbitrator and not mutually accepted by the certified driver bargaining organization and covered TNCs, the general counsel shall recommend disapproval of the proposed agreement if a party demonstrates that the arbitrator’s recommendations were procured by corruption, fraud, or other undue means, there was corruption by the arbitrator, the rights of
the party were substantially prejudiced by the misconduct of the arbitrator, or the arbitrator’s recommendation was arbitrary or capricious in light of the record. Absent good cause, the general counsel shall issue the determination within 60 days of receipt of the recommended agreement.
(2)
The general counsel’s recommendation pursuant to this subdivision shall be served on the board and the parties to the agreement. Within 21 days of the general counsel’s recommendation, the board shall issue a final order that approves or disapproves the agreement.
(3)
If a final order of the board disapproves a proposed agreement pursuant to this subdivision, the parties shall bargain in good faith to reach agreement on a sectoral agreement for submission to the board. Either side may request that the board conduct a new process to select a new arbitrator and refer the parties to arbitration
pursuant to Section 7470.14.
(h)
Upon approval of a sectoral agreement by the final order of the board, the agreement shall be final and binding on the certified driver bargaining organization and the TNC drivers it represents and on all covered TNCs. The terms of the agreement shall thereby become enforceable commitments for each covered TNC to implement with respect to TNC drivers. Each covered TNC shall adhere to the terms as minimum standards for all TNC drivers using its platform in the state for the duration of the agreement. In the event of any conflict between an approved sectoral agreement and a term of service or contract between an individual TNC driver and a covered TNC, the sectoral agreement shall prevail for covered matters, except that nothing in the sectoral agreement shall reduce rights or benefits already secured by law or individual contract.
(i)
During the
term of a sectoral agreement, the agreement may be reopened, amended, or modified by mutual agreement of the certified driver bargaining organization and the covered TNCs. Any such amendments or modifications must be submitted to the board for approval or disapproval pursuant to this section and shall become effective only upon approval of the board.
(j)
For purposes of this section, any decision or action by the covered TNCs means a decision or action approved by covered TNCs that includes at least 80 percent of the industry measured by rideshare volume on the most recent quarterly report filed with the board and that includes at least the two largest covered TNCs.

Legislative History

Added by Stats. 2025, Ch. 335, Sec. 1. (AB 1340) Effective January 1, 2026.