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Thanks to CalBike and the “all-powerful bicycle lobby,” AB 371, the Kill Bike Share Bill, has halted its journey through the California legislature. The bill included a burdensome and unfair insurance requirement for bike and scooter sharing systems that would have ended shared micromobility in California. The bad news is that we might have to fight this fight all over again next year.

Kill Bike Share Bill could return in 2022

AB 371 isn’t technically dead — it is a two-year bill, which gives it another chance to pass the legislature in the 2022 legislative session.

A lot could happen between now and 2022. The bill’s author could decide not to bring it back, or he could revise it to remove the insurance requirement. CalBike will continue to work hard for one of those outcomes.

However, unprecedented bike share operator indemnity seems to be a zombie idea that just won’t die. CalBike and our allies succeeded in excising a similar insurance requirement from a bill in 2020, and yet it came back again in AB 371.

Contradictory California policies

California desperately needs more carbon-free transportation options to mitigate the worst impacts of climate change. To further that goal, the state’s recently-announced Clean Mobility Opportunity (CMO) grants included several bike sharing programs.

Ironically, the insurance requirements in AB 371 are at odds with the state’s policies because they would put an end to all bike share in California. The insurance requirement, as currently written, would make system operators liable not only for accidents related to equipment failure but for those caused by bike share users. Such an insurance policy doesn’t currently exist and, if it did, it would be so expensive that it would make bike and scooter sharing systems impossible to operate. This would not only put venture capital-backed systems like Lime and Lyft out of business; it would also end the LA Metro municipal bike share and close down the very projects California’s CMO has funded.

Bike sharing systems have a tremendous safety record. A 2016 study found that bike share riders are less likely to get into accidents than people on their own bikes. If legislators are worried about traffic injuries not covered by insurance, shared micromobility is not the target with the most significant impact.

About 16.6% of California motorists are uninsured — the tenth highest rate in the nation. That’s almost 2.5 million uninsured, 3000-pound, gas-powered vehicles on our streets. There’s a problem worth solving.

FOR IMMEDIATE RELEASE

Contact: Dave Snyder dave@calbike.org 916-251-9433

Sacramento, August 27, 2020: The California Bicycle Coalition (CalBike) announced a victory today in its campaign to protect bike share systems from a threat from the California State Senate. An amendment to Assembly Bill 1286 removed a provision that would have transferred all liability for any impact onto providers of shared bikes and scooters. The provision would have made it impossible for shared mobility systems to get insurance and likely forced the removal of such systems throughout the state.

In a letter to the legislature, CalBike’s Executive Director Dave Snyder thanked the author of the bill, Assembly Member Al Muratsuchi (D-South Bay), for “his support of this low-cost, low-impact form of transportation.” Snyder said that his organization wants to see expansion of shared micromobility through greater public support of the services and integration with public transit. AB 1286 threatened that expansion until the removal of the liability provision, a change that was made at the very last hour that amendments were allowed.

“Shared bikes and scooters are fun, affordable, and eco-friendly ways to get around, reducing car trips and air pollution,” said Assembly Member Muratsuchi. “AB 1286 will make these devices safer for both users and the general public, with basic consumer protections for users.”

“In a matter of days we put together a coalition of local bicycling advocacy organizations and environmental groups that helped to convince the Assembly Member to pull that provision,” said Snyder. “We’re strong when we act together,” added Eli Akira Kaufman, Executive Director of the Los Angeles County Bicycle Coalition.

CalBike had objected to other aspects of the bill, as well. One provision will increase the amount of insurance a provider must carry. Snyder said this will drive up the cost of providing shared mobility but isn’t a reason to oppose the bill because it has its benefits for users. Another mandates that a provider acquire a permit before operating. CalBike supports the intent of this provision but is concerned that some cities may use it disingenuously to effectively ban shared mobility. Snyder said that “we can deal with that if and when it happens.”

Floor Alert – AB 1286 neutrality

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