84R5723 JTS-F

By: Paddie H.B. No. 2440

A BILL TO BE ENTITLED

AN ACT

relating to the regulation of transportation network companies; imposing and authorizing fees; requiring an occupational permit.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

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.

SECTION 2. This Act takes effect September 1, 2015.