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 Bill Text - SB-623 Automobile accidents: civil actions: transportation network companies.

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 |Add To My Favorites |Track Bill | Version: 06/25/26 - Chaptered
 06/25/26 - Enrolled
 06/22/26 - Amended Assembly
 06/18/26 - Amended Assembly
 06/03/26 - Amended Assembly
 02/20/25 - Introduced

 SB-623 Automobile accidents: civil actions: transportation network companies.(2025-2026)

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 Date Published: 06/25/2026 09:00 PM

SB623:v94#DOCUMENTBill Start

 Senate Bill

 No. 623

 CHAPTER 17

An act to add Section 3333.9 to the Civil Code, and to amend Section 5445.2 of, and to add Section 5451 to, the Public Utilities Code, relating to
 transportation.

 [
 Approved by

 Governor
 June 25, 2026.

 Filed with

 Secretary of State
 June 25, 2026.
 ]

LEGISLATIVE COUNSEL'S DIGEST

SB 623, Umberg.
 Automobile accidents: civil actions: transportation network companies.

(1) Existing law provides that in an action for the breach of an obligation not arising from contract, the measure of damages, except as provided, is the amount that will compensate for all the detriment proximately caused thereby, whether it could have been anticipated or not.

This bill, with respect to a civil case, claim, action, or arbitration against a network company, its subsidiary, or an app-based driver, as defined, arising from an automobile accident, would, except as specified, prohibit the maximum recovery of a plaintiff for damages for any medical expense for services rendered by a lien-based provider, as defined, from exceeding the 70th percentile of FAIR Health, Inc.’s billed charges, or the 70th percentile of a comparable
 commercially recognized billed charges database for the same or similar service in the applicable geographic area at the time the service was rendered. The bill would prohibit certain evidence from being introduced that exceeds the recoverable amount.

This bill would provide that if a medical lien, as defined, receivable, or right to payment has been sold or otherwise transferred, the maximum recoverable medical expense damages shall not exceed the total consideration paid or payable in connection with the transaction to acquire the lien, receivable, or right to payment, as provided. The bill would require any agreement relating to the sale or transfer of a medical lien, receivable, or right to payment, and the consideration paid or payable therefor, to be discoverable, and would prohibit an undisclosed lien sale or transfer from being asserted against a defendant, insurer, settlement, judgment, or settlement proceeds. The bill would also require certain medical
 lien financial relationships and attorney referral information to be discoverable.

This bill would make it unlawful for an attorney representing a plaintiff under a contingency fee agreement in a civil claim, action, or arbitration, as described above, to refer a client to a health care provider in which the attorney or a member of the attorney’s immediate family has a direct ownership interest. The bill would also make it unlawful for an attorney to fee split or receive other specified compensation in connection with the furnishing of lien-based provider medical treatment for a plaintiff and would make it unlawful for an attorney or law firm to provide specified compensation for referrals of clients to lien-based providers for lien-based treatment. The bill would also make other actions related to the reduction of a medical lien unlawful, as specified.

This bill would provide that these provisions are severable.

(2) The Passenger Charter-party Carriers’ Act defines a transportation network company as an organization, whether a corporation, partnership, sole proprietor, or other form, operating in California that provides prearranged transportation services for compensation using an online-enabled platform to connect passengers with drivers using a personal vehicle. Existing law requires a transportation network company to conduct, or have a third party conduct, a local and national criminal background check for each participating driver, as specified, and prohibits a transportation network company from contracting with, employing, or retaining a driver if the driver, among other things, is currently registered on the United States Department of Justice National Sex Offender Public website, has been convicted of any of certain terrorism-related or human trafficking felonies or a violent