The New Law That Might Kill Scooter and Bike Share In California - And How It Might Come For Us

The new proposal entitled, Assembly Bill 1286 would functionally ban scooters, electric bikes and all other electric-assisted transport from the road unless it is contested.

The Golden State is on the brink of passing a bill that could kill bike and scooter share in the state and could cause other states to follow, potentially changing crash-liability laws for the worse. Bill 1286 would make it illegal for electric bike, e-scooter and other electric mobility transport rental companies to require their users to sign a liability waiver as part of their terms of service. However, this ban would not affect car-rental or taxi companies which currently require them. This change would make the rental company liability for almost all rider injuries, even in cases of driver misconduct and rider negligence, as well as poor road designs on behalf of the state. Currently, the waiver means that the users acknowledge the risk associated with the transport and accept responsibility for any damages.

If AB 1286 passes, it might undo years of work towards creating a sustainable and ecological transport system by making the private automobile the only realistic mode of transportation. This is because without liability waivers, liability-insurance companies won’t be able to insure scooter and e-bike rental companies — and because Californian cities require micromoibility companies to carry that type of insurance, Lime, Bird and all other rental micro mobility rental companies would be forced to shut down.

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A letter from Apollo Syndicate management, an insurance company,  indicated that as a direct effect of AB 1286 they would not be able to insure any of the California micromobility industry for the foreseeable future including Lime, Bird, Razr, Spin, Jump and more. Industry leaders say, contrary to the claims of the bill’s proponents, there are not any insurance companies that would cover a micromobility company that fails to secure rider waivers, even if the company agrees to pay more for its policy. This proposal comes at a difficult time for California who are currently struggling to contain the single largest Coronavirus outbreak in the US. With thousands of residents nervous about taking public transport, California had planned for micromobility to be a solution to the mobility issues caused by COVID-19.

Another concern of AB1286 is that it appears to benefit ambulance chasers and injury lawyers who are increasingly flocking to the micromobility sector and scrutinising it for potential payouts. The bill would require mobility providers attain at least $1,000,000 in liability insurance for “each incident”. This is only if these companies could even acquire this figure, which is double the current amount. 

Without advocates displaying support for micromobility, experts say it could completely disrupt the national discussion about who we should hold responsible for traffic violence.  However, supporters stressed that they believe micromobility should bear some responsibility for keeping both road and rider users safe