88R9273 SCL-D

By: Hull H.B. No. 2039

A BILL TO BE ENTITLED

AN ACT

relating to automobile liability insurance for digital network company drivers.

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

SECTION 1. The heading to Chapter 1954, Insurance Code, is amended to read as follows:

CHAPTER 1954. INSURANCE FOR DIGITAL [TRANSPORTATION] NETWORK

COMPANY DRIVERS

SECTION 2. Section 1954.001, Insurance Code, is amended to read as follows:

Sec. 1954.001. DEFINITIONS. In this chapter:

(1) "Delivery available period" means the period when a driver:

(A) has logged on to a digital network and is available to receive requests to provide delivery services from a delivery network company;

(B) is operating a personal vehicle; and

(C) is not providing delivery services or operating in the delivery service period.

(2) "Delivery network company" means a corporation, partnership, sole proprietorship, or other entity operating in this state that uses a digital network to connect a delivery network company customer to a delivery network company driver to provide delivery services.

(3) "Delivery network company customer" means a person who orders the delivery of goods that are delivered by a delivery network company driver at the direction of the person.

(4) "Delivery network company driver" means an individual who provides delivery services through a delivery network company's digital network using a personal vehicle.

(5) "Delivery service period" means the period:

(A) beginning when a delivery network company driver begins operating a personal vehicle on the way to pick up goods for a delivery or series of deliveries as documented through a digital network controlled by a delivery network company;

(B) continuing while the driver transports the requested goods; and

(C) ending on delivery of the requested goods to:

(i) the delivery network company customer or the last customer in a series of deliveries;

(ii) a location designated by the customer or arrival at the last location designated in a series of deliveries; or

(iii) a location designated by the company, including for purposes of returning the goods.

(6) "Delivery services" means the fulfillment of delivery requests made by a delivery network company customer through a digital network, including the pickup and delivery of goods. The term includes a series of deliveries to different customers or to different locations at the direction of a customer.

(7) "Digital network" means any online-enabled application, software, website, or system offered or used by a digital [transportation] network company that enables:

(A) a prearranged ride with a transportation network company driver; or

(B) delivery services from a delivery network company driver.

(8) "Digital network company" means a delivery network company or transportation network company.

(9) "Digital network company driver" means a delivery network company driver or transportation network company driver.

(10) [(2)] "Personal vehicle" means a vehicle that is used by a digital [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.

(11) [(3)] "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.

(12) [(4)] "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.

(13) [(5)] "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.

(14) [(6)] "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.

SECTION 3. Subchapter A, Chapter 1954, Insurance Code, is amended by adding Sections 1954.003 and 1954.004 to read as follows:

Sec. 1954.003. APPLICABILITY OF OTHER LAW. This chapter does not limit the scope of federal or state law regarding delivery or transport of goods. A person providing a delivery service that is subject to other law shall comply with the other law. In the event of a conflict between this chapter and the other law, the other law prevails.

Sec. 1954.004. CONSTRUCTION OF CHAPTER. This chapter may not be construed to invalidate, limit, or restrict:

(1) an automobile insurer's ability under the law to write an insurance policy; or

(2) an automobile insurer's ability under the law to cancel or not renew an insurance policy.

SECTION 4. Section 1954.051, Insurance Code, is amended by amending Subsections (a) and (d) and adding Subsection (b-1) to read as follows:

(a) A digital [transportation] network company driver or digital [transportation] network company on the driver's behalf shall maintain primary automobile insurance as required by this subchapter.

(b-1) Insurance maintained under this subchapter must allow a delivery network company driver to use a personal vehicle to provide delivery services for compensation and cover the driver during the delivery available period, if applicable, and delivery service period.

(d) The coverage requirements of this subchapter may be satisfied by:

(1) automobile insurance maintained by the digital [transportation] network company driver;

(2) automobile insurance maintained by the digital [transportation] network company; or

(3) a combination of Subdivisions (1) and (2).

SECTION 5. Subchapter B, Chapter 1954, Insurance Code, is amended by adding Section 1954.0535 to read as follows:

Sec. 1954.0535. INSURANCE REQUIREMENTS: DELIVERY AVAILABLE PERIOD AND DELIVERY SERVICE PERIOD. During the delivery available period and delivery service period, the automobile insurance policy must provide:

(1) the following minimum amounts of liability insurance coverage:

(A) $50,000 for bodily injury to or death of 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.

SECTION 6. Sections 1954.054 and 1954.055, Insurance Code, are amended to read as follows:

Sec. 1954.054. LAPSE OF OR INSUFFICIENT COVERAGE. If an insurance policy maintained by a digital [transportation] network company driver under this subchapter has lapsed or does not provide the coverage required by this subchapter, the digital [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 a digital [the transportation] network company is not contingent on a digital [transportation] network company driver's personal automobile insurer initially denying a claim.

SECTION 7. Section 1954.056(b), Insurance Code, is amended to read as follows:

(b) A digital [transportation] network company driver shall carry proof of insurance that satisfies Sections 1954.052 and 1954.053 or Section 1954.0535, as applicable, with the driver when the driver uses a vehicle in connection with a digital [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, as applicable:

(1) logged on to the transportation network company's digital network[;] or

[(2)] engaged in a prearranged ride; or

(2) logged on to the delivery network company's digital network during a delivery available period or delivery service period.

SECTION 8. The heading to Subchapter C, Chapter 1954, Insurance Code, is amended to read as follows:

SUBCHAPTER C. RELATIONSHIP BETWEEN DIGITAL [TRANSPORTATION]

NETWORK COMPANY AND DIGITAL [TRANSPORTATION] NETWORK COMPANY

DRIVER

SECTION 9. Sections 1954.101 and 1954.102, Insurance Code, are amended to read as follows:

Sec. 1954.101. REQUIRED DISCLOSURES. Before a digital [transportation] network company driver may accept a request for a prearranged ride or delivery services on a digital [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, as applicable:

(A) the transportation network company's digital network and is available to receive transportation requests or is engaged in a prearranged ride; or

(B) the delivery network company's digital network during the delivery available period or delivery service period.

Sec. 1954.102. CONTROL OF DIGITAL [TRANSPORTATION] NETWORK COMPANY DRIVERS. A digital [transportation] network company does not control, direct, or manage a personal vehicle or a digital [transportation] network company driver who connects to the company's digital network except as agreed by written contract.

SECTION 10. Section 1954.151(a), Insurance Code, is amended to read as follows:

(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 digital [transportation] network company driver using the personal vehicle, as applicable:

(1) is logged on to a transportation network company's digital network [;] or

[(2)] is engaged in a prearranged ride; or

(2) is logged on to a delivery network company's digital network during a delivery available period or delivery service period.

SECTION 11. Section 1954.152(a), Insurance Code, is amended to read as follows:

(a) This subchapter does not require a personal automobile insurance policy to cover a digital [transportation] network company driver while:

(1) the driver is logged on to a transportation network company's digital network;

(2) the driver is engaged in a prearranged ride; [or]

(3) the driver is logged on to a delivery network company's digital network during a delivery available period or delivery service period; or

(4) the driver otherwise uses a vehicle to transport passengers for compensation.

SECTION 12. Section 1954.153(b), Insurance Code, is amended to read as follows:

(b) An automobile insurer that defends or indemnifies a claim against a digital [transportation] network company 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, or 1954.0535, as applicable.

SECTION 13. Sections 1954.154 and 1954.155, Insurance Code, are amended to read as follows:

Sec. 1954.154. ASSISTANCE IN CLAIM INVESTIGATION. In an insurance claim investigation, a digital [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 digital [transportation] network company driver. Information provided under this section must include:

(1) the precise times that, as applicable:

(A) 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; or

(B) a driver began and ended the delivery available period and delivery service period on the delivery 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.

Sec. 1954.155. PAYMENT OF CERTAIN CLAIMS. If there is a lien on a personal vehicle and the digital [transportation] network company's insurer covers a claim arising out of an incident that occurred during a prearranged ride or delivery available period or delivery service period, as applicable, the insurer shall issue payment for the claim:

(1) directly to the person who is repairing the vehicle; or

(2) jointly to the owner of the personal vehicle and the primary lienholder.

SECTION 14. This Act takes effect January 1, 2024.