89R10345 AND-F

By: Hunter H.B. No. 4215

A BILL TO BE ENTITLED

AN ACT

relating to the regulation of delivery network companies; requiring an occupational permit; authorizing a fee.

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

SECTION 1. The heading to Chapter 2402, Occupations Code, is amended to read as follows:

CHAPTER 2402. TRANSPORTATION NETWORK AND DELIVERY NETWORK

COMPANIES

SECTION 2. Section 2402.001, Occupations Code, is amended by amending Subdivisions (1) and (2) and adding Subdivisions (1-a), (1-b), (1-c), (2-a), and (3-a) to read as follows:

(1) "Delivery customer" means an individual who prearranges a delivery through a delivery network company's digital network that will be undertaken by a delivery person.

(1-a) "Delivery network company" means a corporation, partnership, sole proprietorship, or other entity operating in this state that maintains a digital network to facilitate a delivery customer's arrangement of a digitally prearranged delivery by a delivery person.

(1-b) "Delivery person" means an individual who undertakes a digitally prearranged delivery to deliver goods to a delivery customer.

(1-c) "Department" means the Texas Department of Licensing and Regulation.

(2) "Digital network" means any online-enabled application, website, or system offered or used by:

(A) a transportation network company that enables the prearrangement of rides between passengers and drivers; or

(B) a delivery network company that enables a delivery customer to prearrange the delivery of goods by a delivery person.

(2-a) "Digitally prearranged delivery" means the transport of goods, using a passenger vehicle, a bicycle, a scooter, walking, public transportation, or other means of transportation, between points provided by the customer that is prearranged through a digital network.

(3-a) "Driver" means an individual who undertakes a digitally prearranged ride between points chosen by a passenger.

SECTION 3. Section 2402.002, Occupations Code, is amended to read as follows:

Sec. 2402.002. NATURE OF TRANSPORTATION NETWORK AND DELIVERY NETWORK COMPANIES, DRIVERS, DELIVERY PERSONS, AND VEHICLES. Transportation network companies, delivery network companies, and drivers or delivery persons logged in to the company's digital network are not common carriers, contract carriers, or motor carriers.

SECTION 4. Section 2402.003(a), Occupations Code, is amended to read as follows:

(a) Notwithstanding any other provision of law, and except as provided by Subsections (b) and (c), the regulation of transportation network companies, delivery network companies, drivers or delivery persons logged in to a digital network, and vehicles used to provide digitally prearranged rides or deliveries:

(1) is an exclusive power and function of this state; and

(2) may not be regulated by a municipality or other local entity, including by:

(A) imposing a tax;

(B) requiring an additional license or permit;

(C) setting rates;

(D) imposing operational or entry requirements; or

(E) imposing other requirements.

SECTION 5. Section 2402.004, Occupations Code, is amended to read as follows:

Sec. 2402.004. PROVISIONS APPLICABLE TO DRIVERS AND DELIVERY PERSONS LOGGED IN TO DIGITAL NETWORK. A provision of this chapter that applies to a driver or delivery person logged in to a digital network applies while the driver or delivery person is logged in to receive requests for digitally prearranged rides or deliveries and while the driver or delivery person is logged in and providing a digitally prearranged ride or delivery.

SECTION 6. Section 2402.051(a), Occupations Code, is amended to read as follows:

(a) A person may not operate a transportation network company or delivery network company in this state without obtaining and maintaining a permit issued under this chapter.

SECTION 7. Section 2402.052, Occupations Code, is amended to read as follows:

Sec. 2402.052. FEE. (a) A transportation network company or delivery network company shall annually pay to the department a fee to maintain a permit under this chapter in an amount determined by department rule to cover the costs of administering this chapter.

(b) The department may not impose a fee for:

(1) drivers or delivery persons authorized to use a transportation network company's or delivery network company's digital network; or

(2) vehicles used to provide digitally prearranged rides or deliveries.

SECTION 8. Chapter 2402, Occupations Code, is amended by adding Subchapter C-1 to read as follows:

SUBCHAPTER C-1. OPERATION OF DELIVERY NETWORK COMPANIES

Sec. 2402.131. INTOXICATING SUBSTANCE POLICY. (a) A delivery network company shall implement an intoxicating substance policy that prohibits a delivery person who is logged in to the company's digital network from any amount of intoxication.

(b) A delivery network company shall include on its Internet website:

(1) a notice concerning the company's intoxicating substance policy; and

(2) the means to make a complaint about a suspected violation of the policy.

(c) A delivery 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. 2402.132. DELIVERY PERSON REQUIREMENTS. (a) Before permitting an individual to log in as a delivery person on the company's digital network, a delivery network company must:

(1) confirm that the individual:

(A) is at least 18 years of age;

(B) maintains a valid driver's license issued by this state, another state, or the District of Columbia; and

(C) if the individual will undertake digitally prearranged deliveries by motor vehicle, possesses proof of registration and automobile financial responsibility for each motor vehicle to be used to provide digitally prearranged deliveries;

(2) conduct, or cause to be conducted, a local, state, and national criminal background check for the individual that includes the use of:

(A) a commercial multistate and multijurisdiction criminal records locator or other similar commercial nationwide database; and

(B) the national sex offender public website maintained by the United States Department of Justice or a successor agency; and

(3) if the individual will undertake digitally prearranged deliveries by motor vehicle, obtain and review the individual's driving record.

(b) A delivery network company may not permit an individual to log in as a delivery person on the company's digital network if:

(1) the individual has been convicted in the preceding seven-year period of any of the following:

(A) driving while intoxicated under Section 49.04 or 49.045, Penal Code;

(B) use of a motor vehicle to commit a felony;

(C) a felony crime involving property damage;

(D) fraud;

(E) theft;

(F) an act of violence; or

(G) an act of terrorism;

(2) the individual is found to be registered in the national sex offender public website maintained by the United States Department of Justice or a successor agency; or

(3) for an individual who will undertake digitally prearranged deliveries by motor vehicle, the individual has been convicted in the three-year period preceding the issue date of the driving record obtained under Subsection (a)(3) of:

(A) more than three offenses classified by the Department of Public Safety as moving violations; or

(B) one or more of the following offenses:

(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.

(c) A delivery network company shall conduct or cause to be conducted an annual criminal background check described by Subsection (a)(2) for each delivery person authorized to access the company's digital network.

Sec. 2402.133. NONDISCRIMINATION. (a) A delivery network company shall adopt a policy that prohibits a delivery person logged in to the company's digital network from discriminating on the basis of a delivery customer's or potential delivery customer's location or destination, race, color, national origin, religious belief or affiliation, sex, disability, or age.

(b) For the purposes of Subsection (a), "sex" means the physical condition of being male or female.

(c) A delivery network company shall notify each person authorized to log in as a delivery person on the company's digital network of the nondiscrimination policy. A delivery person logged in to the company's digital network shall comply with the nondiscrimination policy.

(d) A delivery network company may not impose an additional charge for delivery to individuals with physical disabilities because of those disabilities.

Sec. 2402.134. DELIVERY PERSONS AS INDEPENDENT CONTRACTORS. A delivery person who is authorized to log in to a delivery network company's digital network is considered an independent contractor for all purposes, and not an employee of the company in any manner, if:

(1) the company does not:

(A) prescribe the specific hours during which the delivery person is required to be logged in to the company's digital network;

(B) impose restrictions on the delivery person's ability to use other delivery network companies' digital networks;

(C) limit the territory within which the delivery person may provide deliveries; or

(D) restrict the delivery person from engaging in another occupation or business; and

(2) the company and the delivery person agree in writing that the delivery person is an independent contractor.

SECTION 9. Section 2402.151(a), Occupations Code, is amended to read as follows:

(a) A transportation network company or delivery network company shall maintain:

(1) records evidencing compliance with the requirements of this chapter for a period of two years;

(2) individual ride and delivery records for at least five years after the date the ride or delivery was provided; and

(3) driver or delivery person records for at least five years after the date the driver or delivery person ceases to be authorized to log in as a driver or delivery person on the company's digital network.

SECTION 10. Section 2402.152, Occupations Code, is amended to read as follows:

Sec. 2402.152. COLLECTION, USE, OR DISCLOSURE OF RECORDS AND OTHER COMPANY INFORMATION. (a) Any records, data, or other information disclosed to a public entity in this state, including the department, by a transportation network company or delivery network company, including names, addresses, and any other personally identifiable information of drivers or delivery persons is not subject to disclosure under Chapter 552, Government Code.

(b) A public entity, including the department, may not disclose any records, data, or other information provided by a transportation network company or delivery network company under this chapter to a third party except in compliance with a court order or subpoena. If information provided under this chapter is sought through a court order or subpoena, the public entity shall promptly notify the transportation network company or delivery network company to afford the company the opportunity to take actions to prevent disclosure.

(c) In collecting, using, or disclosing any records, data, or other information submitted by a transportation network company or delivery network company under this chapter, a public entity, including the department, shall:

(1) consider the potential risks to the privacy of the individuals whose information is being collected, used, or disclosed;

(2) ensure that the information to be collected, used, or disclosed is necessary, relevant, and appropriate to the proper administration of this chapter; and

(3) take all reasonable measures and make all reasonable efforts to protect, secure, and, where appropriate, encrypt or limit access to the information.

(d) A transportation network company or delivery network company required to submit, disclose, or otherwise provide personally identifiable information of drivers or delivery persons to a public entity of this state, including the department, is not liable in any civil or criminal action for any unauthorized disclosure, misuse, alteration, destruction, access or acquisition, or use of the information that occurs while the information is in the possession of any public entity of this state.

SECTION 11. Section 2402.153, Occupations Code, is amended to read as follows:

Sec. 2402.153. DISCLOSURE OF PASSENGER OR DELIVERY CUSTOMER INFORMATION. (a) A transportation network company or delivery network company may disclose a passenger's or delivery customer's personal identifying information to a third party only if:

(1) the passenger or delivery customer consents;

(2) the disclosure is required by a legal obligation; or

(3) the disclosure is required to:

(A) protect or defend the terms of use of the transportation network company or delivery network company service; or

(B) investigate a violation of those terms.

(b) Notwithstanding Subsection (a), a transportation network company or delivery network company may share a passenger's or delivery customer's name with a driver accessing the company's digital network to facilitate:

(1) identification of the passenger or delivery customer by the driver; or

(2) communication between the passenger or delivery customer and the driver.

SECTION 12. Section 2402.154, Occupations Code, is amended to read as follows:

Sec. 2402.154. DATA SHARING WITH MUNICIPALITY. A municipality and a transportation network company or delivery network company may voluntarily enter into an agreement under which the company shares the company's data with the municipality.

SECTION 13. Section 2402.201, Occupations Code, is amended to read as follows:

Sec. 2402.201. PERMIT SUSPENSION OR REVOCATION. The department may suspend or revoke a permit issued to a transportation network company or delivery network company that violates a provision of this chapter.

SECTION 14. This Act takes effect September 1, 2025.