Boosting Car-Sharing in California: A Deep Dive into Assembly Bill 2743 with Blanca Pacheco
Published Date: 08/03/2024
Boosting Car-Sharing in California: A Deep Dive into Assembly Bill 2743 with Assemblymember Blanca Pacheco
California stands at a crossroads where innovation, regulation, and economic opportunity meet. The rise of peer-to-peer car sharing — a model where individuals rent out their personal vehicles through platforms like Turo and Getaround — has opened new doors for residents seeking flexibility, affordability, and extra income.
But it’s also highlighted how quickly the modern economy can outgrow outdated laws. Enter Assembly Bill 2743 (AB 2743), championed by Assemblymember Blanca Pacheco (D–Downey).
AB 2743 aims to preserve fair insurance standards for peer-to-peer car sharing and ensure this fast-growing sector remains viable in California. Without it, an unintended change in state law scheduled for 2025 could make it prohibitively expensive for these businesses — and the Californians who rely on them — to operate.
In her recent conversation on Insurance Hour with host Karl Susman, Assemblymember Pacheco discussed the bill’s progress, the legislative process, and why this measure is crucial for the state’s economy and innovation ecosystem.
A Bill Near the Finish Line
As the discussion began, Susman noted how close AB 2743 is to becoming law.
“It’s just close to the finish line,” he said. “Would you say there’s been a lot of opposition, or has everyone been on board?”
“For the most part, everyone’s been on board,” Pacheco replied. “It’s received bipartisan support, so we’ve been fortunate. But that doesn’t mean we haven’t worked hard — we’ve worked hard from the very beginning.”
That bipartisan momentum is no small feat. In an era when legislative gridlock is common, AB 2743 has attracted cooperation from both sides of the aisle because its core principle — protecting innovation while maintaining fairness — resonates across party lines.
What AB 2743 Actually Does
At its heart, AB 2743 is a clarification bill — one designed to fix an unintended consequence in California law.
A previous piece of legislation (SB 1107, authored by Senator Bill Dodd) raised minimum insurance requirements for most motorists. But in doing so, it inadvertently increased the financial responsibility limits for peer-to-peer car-sharing platforms far beyond what’s reasonable.
“It would ensure car-sharing businesses stay viable here in the state of California,” Pacheco explained. “Consumers should be allowed to rent out their vehicles — it’s a good source of income and helps many families and constituents.”
Under existing law, car-sharing platforms must already maintain insurance coverage three times higher than a personal auto policy. If the 2025 increase takes effect, those limits could rise even further, potentially driving companies like Turo and Getaround out of California.
“Most importantly,” Pacheco emphasized, “this bill will keep businesses like Turo here in California. And that’s what’s important.”
The Stakes: California’s Innovation Reputation
California has long been known as a hub for innovation — but also as one of the most complex regulatory environments in the country.
“There’s nothing more important than trying to make California more attractive to business,” Susman said. “We don’t exactly have the reputation for being super business-friendly.”
“Yes,” Pacheco agreed, “we have our challenges.”
If insurance costs and liability standards continue to escalate unchecked, California risks losing not just specific companies, but entire emerging industries — and the jobs and revenue that come with them.
“This is about keeping our economy competitive,” Pacheco said. “If we want innovation to stay here, we have to make it possible to do business here.”
What Happens Next: From the Senate to the Governor’s Desk
As of the conversation, AB 2743 had already cleared the Assembly and was moving through the California Senate, where it had passed multiple committees with bipartisan support. The next step: a vote on the Senate floor before heading to Governor Gavin Newsom’s desk.
Susman asked the question many Californians wonder when they hear that phrase — “sitting on the governor’s desk.”
“You hear that all the time,” he said. “It’s sitting on the governor’s desk waiting for his signature, as if he’s pacing the room doing nothing else but looking at a stack of bills. How long can it actually sit there?”
Pacheco clarified:
“The governor has 30 days to sign or veto bills. The last date to sign or veto all bills this year is September 30th.”
That means once AB 2743 reaches the governor’s desk, the countdown begins.
“Some bills get signed earlier,” she added, “but the governor has up until September 30th to act.”
Encouraging Public Participation
One of the most refreshing parts of the conversation came when Susman asked how ordinary Californians could make their voices heard.
“Anyone that wants to get their opinion in should certainly reach out to you,” he said. “Do you want to provide some contact information for people who want to reach out or maybe contact the governor’s office?”
Pacheco, always transparent, provided both her phone number and email address at the Capitol:
“If they want to reach out to me, my phone number is 916-319-2064,” she said. “And my email is assemblymember.pacheco@assembly.ca.gov.”
She encouraged all Californians — not just those in her district — to participate.
“Although I represent a particular area, the legislation that I write or support affects the entire state,” she said. “Anybody paying attention who wants to have a voice or ask a question should feel comfortable reaching out.”
Susman agreed, pointing out that civic engagement is a crucial part of how democracy functions — and that policymakers like Pacheco benefit from hearing real stories about how legislation affects families, small business owners, and drivers.
The Human Side of Legislation
While the technicalities of insurance law can seem dense, Pacheco’s conversation with Susman reminded listeners that policymaking is, at its core, a human process. It’s about balancing interests, solving problems, and creating opportunities for people.
“I think it’s important that everyone knows they have a voice,” Susman said. “Even though you represent Downey and your local area, this is an issue that impacts the entire state.”
“Exactly,” Pacheco replied. “And that’s why I keep an open-door policy.”
That open-door approach — which she’s emphasized in several Insurance Hour interviews — has been key to the bill’s success. By listening to both supporters and critics early in the process, Pacheco was able to refine the language, ease concerns, and ensure that AB 2743 met the needs of consumers, regulators, and business owners alike.
Inside the Legislative Process: “Do Lawmakers Actually Read the Bills?”
At one point, Susman couldn’t resist asking a question that many citizens wonder about:
“How long is it? Ten pages? Thirty pages? How long would it take the average Assemblyperson or Senator to actually go through and read it — and do they really read it all?”
Pacheco laughed.
“Well, I hope they do,” she said. “But we all receive the bill language and an analysis of what the bill does. In each committee, we review those analyses, which help us understand the intent and implications of the legislation.”
She added, with good humor:
“Not everyone is an attorney — and not everyone is an insurance expert like you.”
It was a lighthearted exchange that highlighted both the complexity of policymaking and the importance of expertise. Legislative analyses ensure that even non-specialists can make informed decisions on technical subjects like insurance, finance, and infrastructure.
The Economic and Consumer Impact
AB 2743 isn’t just a technical fix — it’s a policy with tangible benefits for families, small businesses, and the broader economy.
By keeping insurance requirements stable, it ensures that:
- Consumers continue to have affordable access to rental vehicles through peer-to-peer platforms.
- Vehicle owners can safely rent out their cars and earn supplemental income.
- Technology companies like Turo and Getaround can keep operating — employing staff, paying taxes, and contributing to California’s economy.
- Insurers and regulators maintain clarity and consistency without overburdening participants.
“This bill helps many families,” Pacheco said. “It supports small entrepreneurs while protecting consumers.”
Looking Ahead: The Importance of Policy Agility
Pacheco’s efforts reflect a larger truth about governance in the 21st century: laws must evolve as fast as innovation does.
“California has to remain a place where new ideas can thrive,” she said. “We can’t let unintended consequences push businesses or consumers out.”
That’s the essence of AB 2743 — not deregulation, but smart regulation. It’s about ensuring that consumer safety and economic opportunity can coexist.
“Good legislation fixes problems before they grow,” Pacheco explained. “That’s what we’ve done here.”
The Bigger Picture: Making California Work for Everyone
As Susman closed the interview, he summed up the discussion with a message that extends beyond one bill.
“There’s nothing more important than trying to make California more attractive to business,” he said. “And you’re helping do that.”
Pacheco’s response captured the spirit of her work:
“California is the best state ever,” she said. “We have our challenges, but we also have the creativity, the people, and the potential to solve them.”
Her optimism, grounded in policy and pragmatism, reminds Californians that progress doesn’t always require sweeping reforms — sometimes, it just takes one thoughtful bill, written with care and guided by collaboration.
Key Takeaways
- Assembly Bill 2743 preserves fair insurance standards for California’s peer-to-peer car-sharing platforms.
- The bill prevents unintended insurance hikes set for 2025, ensuring businesses like Turo and Getaround can continue operating in the state.
- It has received bipartisan support and is moving through the Senate toward the governor’s desk.
- Assemblymember Blanca Pacheco’s open-door approach has helped bridge political divides and address industry concerns.
- The legislation protects consumers, small business owners, and California’s reputation as a global hub of innovation.
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