Governor Gavin Newsom signed a legislative compromise between Uber and the Consumer Attorneys of California. This deal eliminates two competing initiatives previously set for the November ballot. Both sides had reportedly allocated over $75 million each for their respective campaigns.
The new law, SB 623, establishes new liability standards for ride-hailing accidents. Uber must now conduct annual criminal background checks on all drivers. The legislation also expands the list of criminal offenses that disqualify individuals from driving.
The agreement limits how much plaintiffs can recover for medical costs from specific providers. It further prohibits lawyers from referring clients to medical providers with whom they share financial ties. The law does not include a cap on attorney fees.