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SECTION 1. Subtitle C, Title
14, Occupations Code, is amended by adding Chapter 2402 to read as follows:
CHAPTER 2402.
TRANSPORTATION NETWORK COMPANIES
Sec. 2402.001.
DEFINITIONS. In this chapter:
(1) "Department"
means the Texas Department of Motor Vehicles.
(2) "Transportation
network company" means an entity
that uses a digital network or software
application service to connect passengers
to transportation network services provided by transportation network
drivers.
(3) "Transportation
network driver" means an individual who operates
a motor vehicle that is:
(A) owned, leased, or otherwise authorized for use by the
individual; and
(B) used to provide transportation network services.
(4) "Transportation
network services" means transportation of
a passenger between points chosen by the passenger and prearranged with a
transportation network driver through the use of a transportation network
company's digital network or software
application. The term includes services beginning from the
acceptance of a request for transportation received through the
transportation network company's digital network or software application
service and terminating when the passenger exits the transportation network
driver's vehicle.
Sec. 2402.002. NATURE OF
TRANSPORTATION NETWORK COMPANIES, DRIVERS, AND VEHICLES. (a)
Transportation network companies and transportation network drivers are not
common carriers, contract carriers, or motor carriers and do not provide
taxicab, for-hire, or street hail service.
(b) A transportation
network company:
(1) does not own,
control, operate, or manage vehicles used by transportation network
drivers; and
(2) is not a taxicab
company or for-hire vehicle owner.
Sec. 2402.003. PERMIT
REQUIRED; FEE. (a) A person may not operate a transportation network
company in this state without obtaining and maintaining a permit issued by
the department.
(b) The department shall
issue a permit to each applicant that meets the requirements of this
chapter and pays the fee required by Subsection (c).
(c) A transportation
network company must pay a fee of $5,000
annually to the department to maintain a permit under this chapter.
(d) The department may suspend or revoke a permit issued to a
transportation network company that violates a provision of this chapter.
Sec. 2402.004. AGENT. A
transportation network company shall maintain an agent for service of process
in this state.
Sec. 2402.005. FARES. A
transportation network company charging a fare for its services shall:
(1) disclose to passengers the fare calculation method on
the company's Internet website or within the company's software application
service; and
(2) before a passenger enters the transportation
network driver's vehicle, provide the passenger
with:
(A) the applicable rates
being charged for the service; and
(B) the option to receive
an estimated fare.
Sec. 2402.006.
IDENTIFICATION OF VEHICLES AND DRIVERS. The transportation network
company's software application or Internet website must display, before the passenger enters the transportation
network driver's vehicle:
(1) a picture of the
transportation network driver; and
(2) the vehicle's license
plate number.
Sec. 2402.007. ELECTRONIC
RECEIPT. Within a reasonable period of time following the completion of a
trip, a transportation network company shall transmit an electronic receipt
to the passenger that lists:
(1) the origin and destination
of the trip;
(2) the total time and
distance of the trip; and
(3) an itemization of the
total fare paid, if any.
Sec. 2402.008. INSURANCE. (a) During the time that a
transportation network driver is logged into a transportation network company's
digital network but not providing transportation network services,
financial responsibility for the driver's vehicle must be established as
required under Chapter 601, Transportation Code, except that the motor
vehicle liability insurance policy must be an owner's or operator's policy
that is issued by:
(1) an insurance company authorized to write motor vehicle
liability insurance in this state; or
(2) a surplus lines insurer under Chapter 981, Insurance Code.
(b) The requirements of Subsection (a) may be satisfied by a
combination of insurance policies maintained by the transportation network
company or transportation network driver, including a motor vehicle
liability insurance policy that provides coverage in the event the driver's
policy excludes coverage according to its terms.
(c) During the time that a transportation network driver is
providing transportation network services, the transportation network
company must establish financial responsibility for the driver's vehicle
through a motor vehicle liability insurance policy that:
(1) provides coverage of at least $1 million per accident for
bodily injury and property damage; and
(2) is issued by an insurer described by Subsection (a).
(d) The requirements of Subsection (c) may be satisfied by a
combination of insurance policies maintained by the transportation network
company or transportation network driver.
(e) A transportation network driver involved in an accident while
providing transportation network services shall:
(1) provide proof that the vehicle involved in the accident is
insured as required by this section at the time of the accident; and
(2) notify the transportation network company of the accident.
Sec. 2402.009.
ZERO-TOLERANCE POLICY FOR DRUG OR ALCOHOL USE. (a) A transportation
network company shall:
(1) implement a
zero-tolerance policy that prohibits a transportation network driver from
using or being under the influence of drugs or alcohol when the driver:
(A) is providing
transportation network services; or
(B) is logged into the
transportation network company's digital network but is not providing
transportation network services; and
(2) post on its Internet
website:
(A) notice of the policy;
and
(B) procedures to report
a complaint about a driver with whom a passenger
was matched and who the passenger
reasonably suspects was using or was under the influence of drugs or
alcohol during the course of the trip.
(b) On receipt of a passenger complaint alleging a violation
of the zero-tolerance policy, the transportation network company shall:
(1) conduct an
investigation into the reported incident; and
(2) immediately suspend
the transportation network driver's access to the company's digital network
for the duration of the investigation.
(c) The transportation network
company shall maintain records relevant to a complaint for a period of at
least two years after the date the complaint is received.
Sec. 2402.010. DRIVER
REQUIREMENTS. (a) Before allowing an individual to act as a transportation
network driver on its digital network, a transportation network company
shall:
(1) require the
individual to submit an application to the company, which must include
information regarding the
person's address, age, driver's license, driving history, motor vehicle
registration, motor vehicle liability insurance, and other information
required by the company;
(2) conduct, or have a
third party conduct, a local and national criminal background check for
each applicant that includes the use of:
(A) a commercial
multistate and multi-jurisdiction criminal records locator with primary
source validation; and
(B) the national sex
offender registry database maintained by the United States Department of
Justice or successor agency; and
(3) obtain and review the
person's driving record.
(b) The transportation
network company may not permit to act as a transportation network driver on
its digital network a person who:
(1) has been convicted
of:
(A) more than three
offenses classified by the Department of Public Safety as moving violations
in the preceding three-year period; or
(B) one of the following
offenses in the preceding three-year period:
(i) fleeing or attempting to elude a police officer
under Section 545.421, Transportation Code;
(ii) reckless driving
under Section 545.401, Transportation Code;
(iii) driving without a
valid driver's license under Section 521.025, Transportation Code; or
(iv) driving with an
invalid driver's license under Section 521.457, Transportation Code;
(2) has been convicted,
in the preceding seven-year period, of driving while intoxicated under
Section 49.04 or 49.045, Penal Code;
(3) has been convicted at
any time of:
(A) fraud;
(B) a sexual offense; or
(C) use of a motor
vehicle to commit:
(i) a felony;
(ii) a crime involving
property damage;
(iii) theft;
(iv) an act of violence;
or
(v) an offense of making
a terroristic threat;
(4) is a match in the
national sex offender registry database;
(5) does not possess a
valid driver's license;
(6) does not possess
proof of registration or financial responsibility for the motor vehicle
used to provide transportation network services; or
(7) is younger than 19
years of age.
Sec. 2402.011. VEHICLE
SAFETY AND EMISSIONS. A transportation network company shall require that
each motor vehicle that a transportation network driver will use to provide
transportation network services meets the requirements of Chapter 548,
Transportation Code.
Sec. 2402.012. NO STREET
HAILS. A transportation network driver may accept only rides booked
through a transportation network company's digital network or software
application service and may not solicit or accept street hails.
Sec. 2402.013. NO CASH
TRIPS. The transportation network company shall prohibit solicitation or
acceptance of cash payments from passengers
and notify transportation network drivers of the prohibition. A
transportation network driver may not solicit or accept cash payments from passengers. Payment for transportation
network services may be made only electronically using the transportation
network company's digital network or software application.
Sec. 2402.014. NO
DISCRIMINATION; ACCESSIBILITY. (a) A transportation network company shall
adopt a policy of nondiscrimination on the
basis of destination, race, color, national origin, religious belief or
affiliation, sex, disability, age, sexual orientation, or gender identity
with respect to passengers and potential passengers and notify
transportation network drivers of the policy.
(b) A transportation
network driver shall comply with all
applicable laws regarding
nondiscrimination against passengers or
potential passengers on the basis of destination, race, color, national
origin, religious belief or affiliation, sex, disability, age, sexual
orientation, or gender identity.
(c) A transportation
network driver shall comply with all applicable laws relating to
accommodation of service animals.
(d) A transportation
network company may not impose additional charges for providing services to
persons with physical disabilities because of those disabilities.
(e) A transportation
network company shall provide passengers
an opportunity to indicate whether they require a wheelchair-accessible
vehicle. If a transportation network company is unable to arrange
wheelchair-accessible transportation network service, the company shall
direct the passenger to an alternate
provider of wheelchair-accessible service, if available.
Sec. 2402.015. ACCESSIBLE
TRANSPORTATION; SURCHARGE. (a) The department may impose a fee, not to
exceed $10,000 annually, on transportation network companies, taxicab
companies, and limousine and other for-hire vehicle companies that do not
provide wheelchair-accessible service and deposit the fees into an account in the general revenue fund
to provide grants to transportation
network companies, taxicab companies, and limousine and other for-hire
vehicle companies that provide wheelchair-accessible service.
(b) A grant distributed
under Subsection (a):
(1) may be in an amount
not to exceed $15,000; and
(2) may be distributed
only to a company that meets a minimum level of service as determined by department rule.
Sec. 2402.016. RECORDS.
A transportation network company shall maintain:
(1) individual trip
records for at least one year after the date the trip was provided; and
(2) transportation
network driver records at least until the first anniversary of the date on
which a transportation network driver's activation on the company's digital
network has ended.
Sec. 2402.017. PERSONALLY
IDENTIFIABLE INFORMATION. (a) A transportation network company may not
disclose a passenger's personally
identifiable information to a third party unless:
(1) the passenger consents to the disclosure;
(2) disclosure is
required by a legal obligation; or
(3) disclosure is
required to:
(A) protect or defend the
terms of use of the service; or
(B) investigate
violations of those terms.
(b) In addition to the
disclosures authorized under Subsection (a), a transportation network
company may share a passenger's name
or telephone number with the transportation network driver providing
transportation network services to the passenger to facilitate correct
identification of the passenger by
the transportation network driver or to facilitate communication between
the passenger and the transportation
network driver.
Sec. 2402.018.
CONTROLLING AUTHORITY. Notwithstanding any other provision of law,
transportation network companies and transportation network drivers are
governed exclusively by this chapter and any rules adopted by the
department under this chapter. A municipality or other local entity may
not:
(1) impose a tax on, or
require a license for, a transportation network company or a transportation
network driver; or
(2) subject a
transportation network company or transportation network driver to the
municipality's or other local entity's rate, entry, operational, or other
requirements.
No
equivalent provision.
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SECTION 1. Subtitle C, Title
14, Occupations Code, is amended by adding Chapter 2402 to read as follows:
CHAPTER 2402.
TRANSPORTATION NETWORK COMPANIES
SUBCHAPTER A. GENERAL
PROVISIONS
Sec. 2402.001.
DEFINITIONS. In this chapter:
(1) "Board" means the board of the department.
(2)
"Department" means the Texas Department of Motor Vehicles.
(3) "Digital network" means any online-enabled
application, software, website, or system offered or used by a
transportation network company that enables the prearrangement of a ride
with a transportation network driver.
(4) "Personal vehicle" means a vehicle that is used by a
transportation network driver and is:
(A) owned, leased, or otherwise authorized for use by the driver;
and
(B) not a taxicab, limousine, or similar for-hire vehicle.
(5) "Transportation
network company" means a corporation,
partnership, sole proprietorship, or other entity operating in this state
that uses a digital network to connect a
transportation network rider to transportation network services
provided by a transportation network driver. The
term does not include an entity arranging nonemergency medical
transportation under a contract with the state or a managed care
organization for individuals qualifying for Medicaid or Medicare.
(6) "Transportation
network driver" means an individual who:
(A) receives connections to potential transportation network
riders and related services from a transportation network company in
exchange for payment of a fee to the company; and
(B) uses a personal vehicle to offer or provide transportation
network services to a transportation network rider on connection with the
rider through a digital network controlled by the company in exchange for
compensation or payment of a fee.
(7) "Transportation network rider" means an individual
who uses a transportation network company's digital network to connect with
a transportation network driver who provides transportation network
services to the individual in the driver's personal vehicle between points
chosen by the individual.
(8) "Transportation
network services" means transportation provided
by a transportation network driver to a transportation network rider,
beginning at the time the driver accepts a ride
requested by the rider through a digital network controlled by a
transportation network company, continuing while the driver transports the
rider, and ending at the time the last requesting rider departs from the
driver's personal vehicle. The term does
not include transportation provided using a taxicab, limousine, or other
similar for-hire vehicle authorized to be licensed under Section 215.004,
Local Government Code, or Section 22.081, Transportation Code.
Sec. 2402.002. NATURE OF
TRANSPORTATION NETWORK COMPANIES, DRIVERS, AND VEHICLES. (a)
Transportation network companies and transportation network drivers:
(1) are not common
carriers, contract carriers, or motor carriers; and
(2) do not provide:
(A) taxicab, limousine, or similar for-hire service; or
(B) street hail service.
(b) A transportation
network company:
(1) except as agreed by written contract:
(A) does not control, direct, or manage a transportation network
driver who connects to the company's digital network; and
(B) does not own,
control, operate, or manage personal vehicles used by transportation
network drivers; and
(2) is not a taxicab
company or for-hire vehicle owner.
(See text of Sec.
2402.003, Occupations Code, below.)
Sec. 2402.004. DRIVER AS COMMERCIAL TRANSPORTATION COMPANY. A
transportation network driver is a commercial transportation company for
the purposes of Chapter 660, Government Code.
SUBCHAPTER B. PERMIT
REQUIRED
Sec. 2402.051. PERMIT
REQUIRED. (a) A person may not operate a transportation network company in
this state without obtaining and maintaining a permit issued by the
department.
(b) The department shall
issue a permit to each applicant that meets the requirements of this
chapter and pays the fee required by Section 2402.052.
Sec. 2402.052. FEE. (a) A
transportation network company must pay a fee of $115,000 annually to the department to maintain a permit
under this chapter.
(b) A fee collected by the department under this section shall be
deposited to the credit of the Texas Department of Motor Vehicles fund.
Sec. 2402.053. PERMIT APPLICATION. (a) An application for a
transportation network company permit must be on a form prescribed by the
department. The application must include information that meets the
requirements of this chapter and information the board by rule determines
is necessary to determine the applicant's qualifications to adequately
serve the public.
(b) The applicant shall notify the department of any material
change in the information included in an application not later than the
10th calendar day after the date the change occurs. The department shall
prescribe a form for the disclosure of material changes.
Sec. 2402.054. TERM; RENEWAL. (a) A permit issued under this
chapter is valid for two years. The department shall prescribe the form and
requirements necessary to apply for a renewal of a permit.
(b) The department shall notify each person holding a permit under
this chapter of the date of permit expiration and the amount of the fee
required for permit renewal. The department shall send the notice not later
than the 30th day before the date of the permit expiration.
SUBCHAPTER C. OPERATION
OF TRANSPORTATION NETWORK COMPANIES
Sec. 2402.101. AGENT. A
transportation network company shall maintain an agent for service of
process in this state.
Sec. 2402.102. FARES. A
transportation network company charging a fare for its services shall:
(1) disclose to transportation network riders the fare
calculation method within the company's software application service or on
the company's Internet website; and
(2) before a transportation network rider enters the
transportation network driver's personal
vehicle, provide the rider with:
(A) the applicable rates
being charged for the service; and
(B) the option to receive
an estimated fare.
Sec. 2402.103.
IDENTIFICATION OF VEHICLES AND DRIVERS. The transportation network
company's software application or Internet website must display, before a transportation network rider enters the
transportation network driver's personal
vehicle:
(1) a picture of the
transportation network driver; and
(2) the vehicle's license
plate number.
Sec. 2402.104. ELECTRONIC
RECEIPT. Within a reasonable period of time following the completion of a
trip, a transportation network company shall transmit an electronic receipt
to the transportation network rider
that lists:
(1) the origin and
destination of the trip;
(2) the total time and
distance of the trip; and
(3) an itemization of the
total fare paid, if any.
Sec. 2402.105. INSURANCE. Insurance requirements for
transportation network companies and transportation network drivers are
governed by Chapter 1954, Insurance Code.
Sec. 2402.106.
ZERO-TOLERANCE POLICY FOR DRUG OR ALCOHOL USE. (a) A transportation
network company shall:
(1) implement a
zero-tolerance policy that prohibits a transportation network driver from
using or being under the influence of drugs or alcohol when the driver:
(A) is providing
transportation network services; or
(B) is logged on to the
transportation network company's digital network but is not providing
transportation network services; and
(2) post on its Internet
website:
(A) notice of the policy;
and
(B) procedures to report
a complaint about a driver with whom a transportation
network rider was matched and who the rider
reasonably suspects was using or was under the influence of drugs or
alcohol during the course of the trip.
(b) On receipt of a
complaint alleging a violation of the zero-tolerance policy, the
transportation network company shall:
(1) conduct an
investigation into the reported incident; and
(2) immediately suspend
the transportation network driver's access to the company's digital network
for the duration of the investigation.
(c) The transportation
network company shall maintain records relevant to a complaint for a period
of at least two years after the date the complaint is received.
Sec. 2402.107. DRIVER
REQUIREMENTS. (a) Before allowing an individual to act as a transportation
network driver on its digital network, a transportation network company
shall:
(1) require the
individual to submit an application to the company, which must include
information regarding the individual's address, age, driver's license,
driving history, motor vehicle registration, motor vehicle liability
insurance, and other information required by the company;
(2) conduct, or have a
third party conduct, a local and national criminal background check for
each individual that includes the use of:
(A) a commercial
multistate and multijurisdiction criminal records locator with primary
source validation; and
(B) the national sex
offender registry database maintained by the United States Department of
Justice or successor agency; and
(3) obtain and review the
individual's driving record.
(b) The transportation
network company may not permit to act as a transportation network driver on
its digital network an individual who:
(1) has been convicted
of:
(A) more than three
offenses classified by the Department of Public Safety as moving violations
in the preceding three-year period; or
(B) one of the following
offenses in the preceding three-year period:
(i) evading arrest or detention under Section 38.04,
Penal Code;
(ii) reckless driving
under Section 545.401, Transportation Code;
(iii) driving without a
valid driver's license under Section 521.025, Transportation Code; or
(iv) driving with an
invalid driver's license under Section 521.457, Transportation Code;
(2) has been convicted,
in the preceding seven-year period, of driving while intoxicated under
Section 49.04 or 49.045, Penal Code;
(3) has been convicted at
any time of:
(A) fraud;
(B) a sexual offense;
(C) use of a motor
vehicle to commit:
(i) a felony;
(ii) a crime involving
property damage;
(iii) theft;
(iv) an act of violence;
or
(v) an offense of making
a terroristic threat; or
(D) an offense listed in Section 3g(a)(1), Article 42.12, Code of
Criminal Procedure;
(4) is a match in the
national sex offender registry database;
(5) does not possess a
valid driver's license;
(6) does not possess
proof of registration or financial responsibility for the motor vehicle used
to provide transportation network services; or
(7) is younger than 19
years of age.
Sec. 2402.108. VEHICLE
SAFETY AND EMISSIONS. A transportation network company shall require that
each motor vehicle that a transportation network driver will use to provide
transportation network services meets the requirements of Chapter 548,
Transportation Code.
Sec. 2402.109. NO STREET
HAILS. A transportation network driver may accept only rides booked
through a transportation network company's digital network or software
application service and may not solicit or accept street hails.
Sec. 2402.110. NO CASH
TRIPS. The transportation network company shall prohibit solicitation or
acceptance of cash payments from transportation
network riders and notify transportation network drivers of the
prohibition. A transportation network driver may not solicit or accept
cash payments from riders. Payment
for transportation network services may be made only electronically using
the transportation network company's digital network or software
application.
Sec. 2402.111. NO
DISCRIMINATION; ACCESSIBILITY. (a) A transportation network company shall
adopt policies concerning nondiscrimination that
comply with state and federal law.
(b) A transportation
network driver shall follow all policies concerning nondiscrimination and accessibility that comply with state and
federal law.
(c) A transportation
network driver shall comply with all applicable laws relating to
accommodation of service animals.
(d) A transportation network
company may not impose additional charges for providing services to persons
with physical disabilities because of those disabilities.
(e) A transportation
network company shall provide transportation
network riders an opportunity to indicate whether they require a
wheelchair-accessible vehicle. If a transportation network company is
unable to arrange wheelchair-accessible transportation network service, the
company shall direct the rider to an
alternate provider of wheelchair-accessible service, if available.
(f) A transportation network driver may not discriminate in the
provision of transportation network services based on the geographic
location of a departure point or destination, except that a driver may
refuse a request for a ride that is farther than 30 miles between the
departure point and the destination.
Sec. 2402.112. ACCESSIBLE
TRANSPORTATION; SURCHARGE. (a) The department may impose a fee, not to
exceed $10,000 annually, on transportation network companies, taxicab
companies, and limousine and other for-hire vehicle companies that do not
provide wheelchair-accessible service and remit the fees to the comptroller for deposit in a trust fund
outside the state treasury to be held by the comptroller and administered
by the department to provide grants to transportation network
companies, taxicab companies, and limousine and other for-hire vehicle
companies that provide wheelchair-accessible service.
(b) A grant distributed
under Subsection (a):
(1) may be in an amount
not to exceed $15,000; and
(2) may be distributed
only to a company that meets a minimum level of service as determined by board rule.
(c) The department shall implement a program in conjunction with
any transportation network company operating in Austin on September 1,
2015, that desires to participate to conduct a pilot project to offer
services to persons with disabilities.
(d) Not later than January 1, 2017, the department, in conjunction
with any transportation network company that participated in the pilot
project, shall report to the public and the legislature on the findings of
the program implemented under Subsection (c) regarding:
(1) the average fares for providing the services;
(2) costs incurred in providing the services;
(3) the average response time for providing the services; and
(4) other information useful to the legislature in developing
public policy related to transportation network companies.
Sec. 2402.113. RECORDS.
A transportation network company shall maintain:
(1) individual trip
records for at least one year after the date the trip was provided; and
(2) transportation
network driver records at least until the first anniversary of the date on
which a transportation network driver's activation on the company's digital
network has ended.
Sec. 2402.114. PERSONALLY
IDENTIFIABLE INFORMATION. (a) A transportation network company may not
disclose a transportation network rider's
personally identifiable information to a third party unless:
(1) the rider consents to the disclosure;
(2) disclosure is required
by a legal obligation; or
(3) disclosure is
required to:
(A) protect or defend the
terms of use of the service; or
(B) investigate
violations of those terms.
(b) In addition to the
disclosures authorized under Subsection (a), a transportation network
company may share a transportation network
rider's name or telephone number with the transportation network
driver providing transportation network services to the rider to facilitate
correct identification of the rider
by the transportation network driver or to facilitate communication between
the rider and the transportation
network driver.
Sec. 2402.003.
CONTROLLING AUTHORITY. (a) Notwithstanding any other provision of law,
transportation network companies and transportation network drivers are governed
exclusively by this chapter and any rules adopted by the board under this
chapter. Except as provided by Subsection
(b) or (c), a municipality or other local entity may not:
(1) impose a tax on or
require a license for a transportation network company or a transportation
network driver; or
(2) subject a
transportation network company or transportation network driver to the
municipality's or other local entity's rate, entry, operational, or other
requirements.
(b) This chapter does not supersede a municipal, county, or other
local government regulation regarding transportation network services at an
airport.
(c) This chapter does not prohibit a municipality from requiring
by ordinance a transportation network company to access the electronic clearinghouse
and subscription service under Section 411.0845, Government Code, for
transportation network drivers.
SUBCHAPTER
D. ENFORCEMENT
Sec.
2402.151. RECORD AUDITS. (a) The department may audit the records
of a transportation network company in connection with the performance of
its duties under this chapter through:
(1) investigations of
specific alleged violations; or
(2) a random sample of
the transportation network company's records related to transportation
network drivers.
(b) A transportation
network company whose place of business is located outside of this state
may choose to make records available at a location outside of this state
if:
(1) the company and the
department agree on the location; and
(2) the company agrees to
reimburse the department for:
(A) necessary travel
expenses; and
(B) a per diem as set by
the state for each day that an inspection or investigation related to the
records is conducted.
(c) Records maintained by
a transportation network company regarding transportation network driver
background checks under Section 2402.107 or transportation network riders'
personally identifiable information are not subject to release under
Chapter 552, Government Code, and the department does not have a right of
access to those records for purposes of that chapter.
(d) Failure to provide
records as required by this section is a violation of this chapter.
Sec. 2402.152. HEARINGS.
(a) A hearing arising under this chapter or a board rule adopted under this
chapter must be conducted in accordance with this chapter, any order,
decision, or rule of the board, and Chapter 2001, Government Code.
(b) A hearing may be
informally disposed of in accordance with Chapter 2001, Government Code.
(c) A hearing under this
chapter must be held by an administrative law judge of the State Office of
Administrative Hearings.
(d) An administrative law
judge has all of the board's authority as provided by this chapter to
conduct hearings arising under this chapter, including the power to:
(1) hold a hearing;
(2) administer an oath;
(3) receive pleadings and
evidence;
(4) issue a subpoena to
compel the attendance of a witness;
(5) compel the production
of papers and documents;
(6) issue an
interlocutory order, including a cease and desist order in the form of a
temporary restraining order or a temporary injunction;
(7) make findings of fact
and conclusions of law; and
(8) issue a proposal for
decision and recommend a final order.
Sec. 2402.153.
DISCIPLINARY ACTION; CIVIL PENALTY. (a) The department, after notice and
opportunity for hearing, may deny an application for a permit or suspend or
revoke a permit if the applicant or permit holder:
(1) makes a material
misrepresentation or omission in any application or other information filed
under this chapter or board rules;
(2) violates this chapter
or a board rule or order;
(3) violates any law
relating to the operation of a transportation network company; or
(4) fails to maintain the
qualifications for a permit.
(b) A proceeding under
this section is subject to Chapter 2001, Government Code.
(c) In addition to the
authority under Subsection (a), the board, after notice and opportunity for
hearing, may request that the attorney general bring an action against a
person that has violated this chapter or board rules to collect a civil
penalty in an amount not to exceed $10,000 for each violation. Each act in
violation of this chapter and board rules and each day a violation
continues is a separate violation. In determining the amount of the penalty,
the board shall consider:
(1) the seriousness of
the violation, including the nature, circumstances, extent, and gravity of
any prohibited act, and the harm or potential harm to the safety of the
public;
(2) the economic damage
to the public caused by the violation;
(3) the history of
previous violations;
(4) the amount necessary
to deter a future violation;
(5) efforts to correct
the violation; and
(6) any other matter that
justice may require.
(d) Notwithstanding any
other law to the contrary, a civil penalty recovered under this section
shall be deposited in the state treasury to the credit of the Texas
Department of Motor Vehicles fund.
Sec. 2402.154. COMPLAINT
PROCEDURE AND NOTICE. (a) A transportation network company shall establish
and maintain a complaint procedure through which any transportation network
rider or other person using the transportation network service may submit a
complaint with the department about the company, the transportation network
service, a transportation network driver, or another affiliate of the
company.
(b) A transportation
network company shall provide notice of the complaint procedure provided by
this section to each transportation network rider and to each person that
contacts the company to inquire about transportation network services.
(c) A transportation
network company shall provide notice of the complaint procedure under this
section on each electronic receipt required by Section 2402.104.
(d) The department shall
approve the content and manner of delivery of the notice required by
Subsections (a), (b), and (c).
(e) Failure to provide
notice as required by this section is a violation of this chapter.
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No
equivalent provision.
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SECTION 2. Subtitle C, Title
10, Insurance Code, is amended by adding Chapter 1954 to read as follows:
CHAPTER 1954. INSURANCE
FOR TRANSPORTATION NETWORK DRIVERS
SUBCHAPTER A. GENERAL
PROVISIONS
Sec. 1954.001.
DEFINITIONS. In this chapter, the following terms have the meanings
assigned by Section 2402.001, Occupations Code:
(1) "digital
network";
(2) "personal
vehicle";
(3) "transportation
network company";
(4) "transportation
network driver";
(5) "transportation
network rider"; and
(6) "transportation
network services".
Sec. 1954.002.
APPLICABILITY OF CHAPTER. This chapter applies to automobile insurance
policies in this state, including policies issued by a Lloyd's plan, a
reciprocal or interinsurance exchange, and a county mutual insurance
company.
SUBCHAPTER B. INSURANCE
REQUIREMENTS
Sec. 1954.051. GENERAL
INSURANCE REQUIREMENT. (a) A transportation network driver or
transportation network company on the driver's behalf shall maintain
primary automobile insurance as required by this subchapter.
(b) Insurance maintained
under this subchapter must allow a transportation network driver to use a
personal vehicle to transport transportation network riders for
compensation and cover the driver while:
(1) the driver is logged
on to the transportation network company's digital network as provided by
Section 1954.052; or
(2) the driver is
providing transportation network services as provided by Section 1954.053.
(c) Insurance maintained
under this subchapter must comply with the law applicable to personal
automobile insurance in this state, including this subtitle and Chapter
601, Transportation Code.
(d) The coverage
requirements of this subchapter may be satisfied by:
(1) automobile insurance
maintained by the transportation network driver;
(2) automobile insurance
maintained by the transportation network company; or
(3) a combination of
Subdivisions (1) and (2).
(e) Insurance required
under this subchapter may be placed with an automobile insurer authorized
to engage in business in this state or with an eligible surplus lines
insurer.
Sec. 1954.052. INSURANCE
REQUIREMENTS: WHEN NOT PROVIDING SERVICES. At the time a transportation
network driver is logged on to the transportation network company's digital
network and is available to receive transportation network requests but is
not providing transportation network services, the automobile insurance
policy must provide:
(1) the following minimum
amounts of liability insurance coverage:
(A) $50,000 for bodily
injury to or death for each person in an incident;
(B) $100,000 for bodily
injury to or death of a person per incident; and
(C) $25,000 for damage to
or destruction of property of others in an incident;
(2) uninsured or
underinsured motorist coverage where required by Section 1952.101; and
(3) personal injury
protection coverage where required by Section 1952.152.
Sec. 1954.053. INSURANCE
REQUIREMENTS: WHILE PROVIDING SERVICES. At the time a transportation
network driver is providing transportation network services, the automobile
insurance policy must provide, at minimum:
(1) coverage with a total
aggregate limit of liability of $1 million for death, bodily injury, and
property damage for each incident;
(2) uninsured or
underinsured motorist coverage where required by Section 1952.101; and
(3) personal injury
protection coverage where required by Section 1952.152.
Sec. 1954.054. LAPSE OF
OR INSUFFICIENT COVERAGE. If an insurance policy maintained by a
transportation network driver under this subchapter has lapsed or does not
provide the coverage required by this subchapter, the transportation network
company shall provide the coverage required by this subchapter beginning
with the first dollar of a claim against the driver.
Sec. 1954.055. RELATION
TO PERSONAL AUTOMOBILE INSURANCE. Coverage under an automobile insurance
policy maintained by the transportation network company is not contingent
on a transportation network driver's personal automobile insurer initially
denying a claim.
Sec. 1954.056. FINANCIAL
RESPONSIBILITY. (a) Insurance satisfying the requirements of this
subchapter satisfies the financial responsibility requirement for an
automobile under Chapter 601, Transportation Code.
(b) A transportation
network driver shall carry proof of insurance that satisfies Sections
1954.052 and 1954.053 with the driver when the driver uses a personal
vehicle in connection with a transportation network company's digital
network. In the event of an accident, a driver shall provide the proof of
insurance to a directly interested person, automobile insurer, and
investigating peace officer on request under Section 601.053,
Transportation Code. On request, a driver shall also disclose to a
directly interested person, automobile insurer, and investigating peace
officer whether, at the time of the accident, the driver was:
(1) logged on to the
company's digital network; or
(2) providing
transportation network services.
Sec. 1954.057. PAYMENT
DIRECTLY TO REPAIRING BUSINESS. If a transportation network company's
insurer makes a payment for a claim covered under comprehensive or
collision coverage, the transportation network company shall cause its
insurer to issue the payment directly to the business repairing the vehicle
or jointly to the owner of the vehicle and the primary lienholder on the
covered vehicle.
SUBCHAPTER C. REQUIRED
DISCLOSURES TO TRANSPORTATION NETWORK DRIVER
Sec. 1954.101. REQUIRED
DISCLOSURES. Before a transportation network driver may accept a request
for transportation network services on a transportation network company's
digital network, the company shall disclose in writing the following:
(1) the insurance policy,
including the types of coverage and the limits for the policy, that the
company provides while a driver uses a personal vehicle in connection with
the company's digital network; and
(2) that the driver's
personal automobile insurance policy may not provide coverage, depending on
the policy's terms, while the driver is logged on to the company's digital
network and is available to receive transportation requests or is engaged
in transportation network services.
SUBCHAPTER
D. PERSONAL AUTOMOBILE INSURANCE
Sec.
1954.151. AUTHORIZED EXCLUSIONS FROM COVERAGE. (a) An insurer may
exclude from coverage under a personal automobile insurance policy issued
to an owner or operator of a personal vehicle any loss or injury that occurs
while a transportation network driver using the personal vehicle:
(1) is logged on to a
transportation network company's digital network; or
(2) is providing
transportation network services.
(b) Subsection (a)
applies to any coverage included in a personal automobile insurance policy,
including:
(1) liability coverage
for bodily injury and property damage;
(2) personal injury
protection coverage under Subchapter D, Chapter 1952;
(3) uninsured and
underinsured motorist coverage;
(4) medical payment
coverage;
(5) comprehensive
physical damage coverage; and
(6) collision physical
damage coverage.
(c) An exclusion
authorized under this section applies notwithstanding a financial
responsibility requirement under Chapter 601, Transportation Code.
(d) This subchapter may
not be construed to invalidate or limit an exclusion contained in a policy
form, including a policy form in use or approved for use in this state
before September 1, 2015, that excludes coverage for automobiles used to
carry persons or property for compensation or available for hire by the
public.
Sec. 1954.152. COVERAGE
UNDER PERSONAL AUTOMOBILE INSURANCE NOT REQUIRED. (a) This subchapter
does not require a personal automobile insurance policy to cover a
transportation network driver while:
(1) the driver is logged
on to a transportation network company's digital network;
(2) the driver is
providing transportation network services; or
(3) the driver otherwise
uses a vehicle to transport passengers for compensation.
(b) This section does not
prevent an insurer from providing coverage that may be excluded under this
section if the insurer elects to provide the coverage in the policy or by
endorsement.
Sec. 1954.153. DEFENSE OR
INDEMNIFICATION OF CLAIM. (a) An automobile insurer that issues a
personal automobile insurance policy that includes an exclusion from
coverage authorized by Section 1954.151 does not have a duty to defend or
indemnify a claim arising from an event subject to the exclusion.
(b) An automobile insurer
that defends or indemnifies a claim against a transportation network driver
for which coverage is excluded under the terms of the policy as authorized
by this subchapter has a right of contribution against another insurer that
provides automobile insurance to the driver in satisfaction of the coverage
requirements under Section 1954.052 or 1954.053, as applicable.
Sec. 1954.154. ASSISTANCE
IN CLAIM INVESTIGATION. In an insurance claim investigation, a
transportation network company and any insurer providing coverage under
Subchapter B shall assist each insurer involved in the claim by providing
information to directly interested persons and an insurer of the
transportation network driver. Information provided under this section
must include:
(1) the precise times
that a driver logged on and off of the transportation network company's
digital network in the 12-hour period immediately preceding and the 12-hour
period immediately following the accident; and
(2) a clear description
of the coverage, exclusions, and limits provided under an automobile
insurance policy maintained under Subchapter B.
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