Who regulates rideshare companies in California?

What the Law Says

California law explicitly designates rideshare companies as 'transportation network companies' (TNCs) and grants the California Public Utilities Commission (CPUC) exclusive authority to regulate them.

The legal framework for TNC regulation was established by Assembly Bill 2293 in 2013 and codified in the California Public Utilities Code and the California Code of Regulations.

TNCs must obtain a CPUC license, comply with vehicle and driver requirements, maintain specific insurance levels, and submit to ongoing background checks and safety audits.

The CPUC’s regulatory authority preempts local governments from licensing or regulating TNC operations — though cities may enforce traffic, parking, and zoning laws that apply equally to all vehicles.

Statutory Text

‘Transportation network company’ means an organization operating in California that uses an online-enabled application or platform to connect passengers with drivers using their personal vehicles for transportation.

— Cal. Pub. Util. Code § 5460(a) — Definitions

Statutory Text

The commission has exclusive authority to regulate transportation network companies… including but not limited to matters relating to rates, charges, services, insurance, safety, and driver background checks.

— Cal. Pub. Util. Code § 5461(a) — Regulatory Authority

Statutory Text

Every transportation network company shall maintain commercial liability insurance… in the amount of one million dollars ($1,000,000) per incident.

— Cal. Code Regs. tit. 13, § 150.2(c)(1) — Insurance Requirements

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