When two interest groups draft the law themselves instead of letting voters decide, Vietnamese drivers and accident victims lose their most direct voice.
The settlement mechanism: Who wins, who compromises?
According to CalMatters, SB 623 emerged from negotiations between Uber and the California Consumer Attorneys Association — a deal where both sides had to swallow some bitter pills. Uber initially wanted to cap attorney fees based on a percentage (contingency fee — compensation collected only upon winning a case) across all car accident lawsuits statewide. The lawyers fought back with a ballot measure proposal that would significantly expand Uber's legal liability in sexual assault cases. According to Bloomberg Law News, each side spent more than 70 million USD on lobbying campaigns before qualifying for the ballot — and both agreed to withdraw after SB 623 passed.
The result: Uber did not win the comprehensive attorney fee cap it hoped for. Lawyers did not impose the expanded liability standards on Uber for sexual assault cases. What both sides achieved was avoiding an extremely costly and uncertain ballot battle.
What SB 623 actually does — and doesn't do
Los Angeles Times reported that the law applies to accident cases, limits the amount doctors can charge when patients are involved in rideshare-related litigation, and tightens the profit margins of third-party investors who purchase medical liens (the right to claim priority reimbursement from lawsuit settlements). This is the core point: the medical lien system has long been accused of inflating treatment costs to increase case value, harming both victims and companies like Uber.
According to CalMatters, the law bans the sale and purchase of medical liens and prohibits attorneys from referring clients to medical facilities with which they have close financial relationships. This measure directly targets the web of conflicting interests that led Uber to sue two Downtown L.A. law firms — Law Group and Law Offices of Jacob Emrani — for inflating medical bills.
However, the law does not cap attorney contingency fees — what Uber wanted most. And the law applies only to rideshare vehicles, not all car accidents in California.
Vietnamese-American Uber drivers: Added burden or added protection?
This is the most tangible point of contact with the Vietnamese community. The Vietnamese community in Southern California — particularly Orange County and the Little Saigon area — has a substantial workforce driving for Uber and Lyft as a primary or secondary income source. SB 623 imposes annual background checks and expands the list of crimes that disqualify drivers from the platform.
Benzinga reported that Uber will strengthen background checks and apply additional safety standards under this agreement. This means Vietnamese drivers — even those without criminal records — need to prepare for a more rigorous vetting process each year. For those with serious traffic violations or any criminal history, no matter how minor, the risk of contract termination is real.
On the other hand, if you are a driver injured in an accident and have a valid lawsuit, the revised medical lien system could better protect you from lien investors eating into your settlement.
The bigger picture: When money replaces ballots
There is something more troubling than SB 623 itself: the precedent it sets. As hsjchronicle.com noted, the agreement between Uber and the attorneys' group replaced two ballot measures that had qualified for the November ballot. California voters — including hundreds of thousands of Vietnamese Americans — will not have the direct opportunity to decide on policies that directly affect them as accident victims, riders, or drivers themselves.
Instead, two interest groups — each spending over 75 million USD according to CalMatters — sat down together, negotiated a law that preserved their core interests, and then asked the state legislature to pass it and the governor to sign it. According to Benzinga, the California State Assembly passed SB 623 on an expedited schedule before the deadline to remove the ballot measures from the November election.
This is not California's first time handling major policy conflicts this way. But the financial scale — over 50 million USD in television advertising alone — demonstrates how far major corporations are willing to go to control outcomes rather than accept the risk posed by voters.
What to watch for starting January 1, 2027
The law takes effect for accidents occurring from the start of 2027. Vietnamese drivers should monitor notifications from the Uber app about new background check procedures. Those who have or may be involved in rideshare accident litigation should consult an attorney about how the new medical lien rules affect their case — especially if they are receiving treatment through medical facilities referred by their own attorneys.
Read the original reports at the source links below.