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.