By: Rodriguez of Travis H.B. No. 4028

A BILL TO BE ENTITLED

AN ACT

relating to the issuance of a transportation network company driver's license; requiring an occupational license; authorizing a fee; providing a civil penalty.

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

SECTION 1. The heading to Subtitle F, Title 7, Transportation Code, is amended to read as follows:

SUBTITLE F. COMMERCIAL MOTOR VEHICLES AND PERSONAL VEHICLES USED

FOR COMMERCIAL PURPOSES

SECTION 2. Subtitle F, Title 7, Transportation Code, is amended by adding Chapter 649 to read as follows:

CHAPTER 649. TRANSPORTATION NETWORK COMPANY DRIVER'S LICENSES

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 649.001. DEFINITIONS. In this chapter:

(1) "Department" means the Texas Department of Motor Vehicles.

(2) "Digital network" means any online-enabled application, software, website, or system offered or used by a transportation network company that enables a prearranged ride with a transportation network company driver.

(3) "Personal vehicle" means a vehicle that is used by a transportation network company 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.

(4) "Prearranged ride" means transportation provided by a transportation network company driver to a transportation network company rider, beginning at the time a driver accepts a ride requested by a rider through a digital network controlled by a transportation network company and ending at the time the last requesting rider departs from the driver's personal vehicle. The term does not include:

(A) a shared expense carpool or vanpool arrangement or service; or

(B) transportation provided using 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 company rider to a transportation network company driver for a prearranged ride. 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 company driver" means an individual who:

(A) receives connections to potential transportation network company 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 a prearranged ride to a transportation network company 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 company rider" means an individual who uses a transportation network company's digital network to connect with a transportation network company driver who provides a prearranged ride to the individual in the driver's personal vehicle between points chosen by the individual.

SUBCHAPTER B. DEPARTMENT POWERS AND DUTIES

Sec. 649.010. ISSUANCE OF LICENSE. The department shall issue a license to a person who meets the requirements of this chapter and rules adopted under this chapter.

Sec. 649.011. REGISTRY. The department by rule shall adopt procedures to create and maintain a registry of all persons issued a license under this chapter.

Sec. 649.012. GENERAL POWERS AND DUTIES. The department may take action as necessary to administer and enforce this chapter.

Sec. 649.013. RULEMAKING. The department shall adopt rules for licensing transportation network company drivers and other rules as necessary to implement this chapter.

Sec. 649.014. FEES. The department by rule shall set the fees imposed under this chapter in an amount sufficient to recover costs of administering this chapter.

Sec. 649.015. CRIMINAL HISTORY RECORD. The department shall obtain from the Federal Bureau of Investigation criminal history record information on each applicant for a license under this chapter.

SUBCHAPTER C. REGULATION OF TRANSPORTATION NETWORK COMPANY DRIVERS

Sec. 649.021. LICENSE REQUIRED. A person may not act as a transportation network company driver unless the person holds a license under this chapter.

Sec. 649.022. LICENSE APPLICATION. (a) The department by rule shall establish a license application.

(b) The requirements for a license must include that the applicant:

(1) submit an application in a form prescribed by the department;

(2) pay the required fee;

(3) disclose any transportation network company whose digital network the applicant will use to provide a prearranged ride to a transportation network company rider;

(4) provide evidence of the applicant's personal financial responsibility for any personal vehicle the applicant will use to provide a prearranged ride to a transportation network company rider; and

(5) submit a complete and legible set of the applicant's fingerprints in a form prescribed by the department.

Sec. 649.023. TERM; RENEWAL. (a) A license issued under this chapter expires on the first anniversary of the date of issuance.

(b) A person may renew a license issued under this chapter if the person:

(1) submits a renewal application in a form prescribed by the department;

(2) pays a renewal fee; and

(3) satisfies any other requirements for renewal adopted by the department.

Sec. 649.024. DISPLAY OF LICENSE. The department by rule shall adopt requirements for the conspicuous display of a transportation network company driver's license inside the cab of any personal vehicle operated by a transportation network company driver to provide prearranged rides to a transportation network company rider.

Sec. 649.025. DISPLAY OF INSIGNIA ON VEHICLE. The department by rule shall adopt requirements for the display of transportation network company insignia on any personal vehicle operated by a transportation network company driver to provide prearranged rides to a transportation network company rider.

Sec. 649.026. REPORT OF ACCIDENT. A transportation network company driver shall report to the department any accident involving the driver while the driver is logged on to a digital network not more than one month after the date of the accident.

Sec. 649.027. INSURANCE. A person acting as a transportation network company driver under this chapter must possess evidence of financial responsibility in a form approved by the department as required under:

(1) Chapter 601 of this code; and

(2) Chapter 1954, Insurance Code.

SUBCHAPTER D. ENFORCEMENT

Sec. 649.051. SUSPENSION OR REVOCATION OF LICENSE. The department may suspend or revoke a license issued under this chapter for a violation of this chapter or a rule adopted under this chapter.

Sec. 649.052. CIVIL PENALTY. A person who violates this chapter or a rule adopted under this chapter is subject to a civil penalty in an amount set by the department of not more than $1,000 per violation.

SECTION 3. Not later than December 1, 2017, the Texas Department of Motor Vehicles shall adopt rules necessary to implement Chapter 649, Transportation Code, as added by this Act.

SECTION 4. This Act takes effect September 1, 2018.