Revises provisions relating to transportation. (BDR 57-1138)
AB 523 lowers the required insurance minimum for transportation network companies (like ride-sharing apps) and delivery services from $1.5 million to $1 million per incident when drivers are actively providing services. It directly affects companies such as Uber, Lyft, and delivery platforms, reducing their financial liability requirements. The bill clarifies that transportation network companies and delivery companies are not responsible for drivers' actions (e.g., accidents or property damage) under any legal theory, provided they maintain the $1 million insurance policy. It specifically defines "delivery services" as items delivered within 50 miles using a digital platform, with the $1 million insurance requirement applying to these companies. The changes apply to both active service periods and when drivers are logged into apps but not yet providing service.
Bill status
signed
all 5 stages cleared
Introduction
Mar 2025
Committee Review
May 2025
Assembly Passage
May 2025
Senate Passage
May 2025
Signed into Law
May 2025
Introduced Mar 24, 2025
Signed May 19, 2025
Maddy AI version diff · 2 comparisons
What changed between versions
Reprint 1
→
As Enrolled
·
4 edits
·
May 19, 2025
MODERATE
This bill lowers the mandatory insurance coverage for ride-share drivers and autonomous vehicle operators from $1.5 million to $1 million while they are actively working. It also introduces new rules limiting the legal liability of delivery companies for accidents caused by their drivers, provided the companies carry sufficient insurance.
Scope change
The bill expands the scope to include 'delivery network companies' and defines new terms related to their operations, while modifying the financial requirements for existing transportation network companies.
REQUIREMENT
Reduced the minimum liability insurance required for ride-share drivers and autonomous vehicle providers from $1,500,000 to $1,000,000.
Added specific insurance coverage tiers for accidents involving multiple people or property damage while a driver is logged into the app but not actively transporting a passenger.
DEFINITION
Added a new definition for 'delivery network company' to cover entities using digital networks to connect customers with drivers for deliveries.
ELIGIBILITY
Established that delivery network companies are not vicariously liable for driver actions if they maintain a minimum $1,000,000 insurance policy.
Floor votes · Assembly Apr 22, 2025
How they voted
This bill passed the Senate by voice vote (no roll call recorded).
Full legislative history
Actions timeline
Total actions
13
Key actions
7
Committee
3
May 19, 2025
Signed into law
Approved by the Governor. Chapter 5.
executive
May 14, 2025
Lower · Passed
In Assembly. To enrollment.
lower
May 12, 2025
Upper · Passed
Read third time. Passed. Title approved. (Yeas: 19, Nays: 1, Excused: 1.) To Assembly.
upper
May 7, 2025
Upper · Passed
From committee: Do pass.
upper
Apr 22, 2025
Lower · Passed
Read third time. Passed, as amended. Title approved, as amended. (Yeas: 42, Nays: None.)
To printer.
lower
Apr 21, 2025
Lower · Passed
From committee: Amend, and do pass as amended.
Placed on Second Reading File.
Read second time. Amended. (Amend. No. 3.)
Dispensed with reprinting.
lower
Mar 26, 2025
Lower · Passed
From printer. To committee.
lower
0 primary · 0 co-sponsors
Sponsors
No sponsor information available.
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