By: Schwertner  S.B. No. 2154
         (In the Senate - Filed March 10, 2025; March 24, 2025, read
  first time and referred to Committee on Business & Commerce;
  April 22, 2025, reported adversely, with favorable Committee
  Substitute by the following vote:  Yeas 11, Nays 0; April 22, 2025,
  sent to printer.)
Click here to see the committee vote
 
  COMMITTEE SUBSTITUTE FOR S.B. No. 2154 By:  Schwertner
 
 
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 orders
  or receives a digitally prearranged delivery through a delivery
  network company's digital network undertaken by a delivery person.
               (1-a)  "Delivery network company" means a business
  entity that offers or uses a digital network to arrange for the
  delivery of food, beverages, or consumer goods from a restaurant or
  retail establishment to a delivery customer.  The term does not
  include an entity that only delivers products that the entity
  produces or stores on the entity's premises.
               (1-b)  "Delivery person" means an individual who
  undertakes a digitally prearranged delivery in this state using a
  delivery network company's digital network.
               (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
  digitally prearranged deliveries.
               (2-a)  "Digitally prearranged delivery" means the
  transport and delivery or attempted delivery of goods to a delivery
  customer that is prearranged through a delivery network company's
  digital network.  The term may include the selection or collection
  of items for delivery by an individual using a delivery network
  company's digital network and other tasks incidental to delivery.
               (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:
               (1)  to receive requests for digitally prearranged
  rides or deliveries; or
               (2)  [and] while [the driver 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 or digital network application:
               (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 a
  delivery network company authorizes an individual to access the
  company's digital network as a delivery person, the company must:
               (1)  confirm that the individual:
                     (A)  is at least 18 years of age; and
                     (B)  maintains:
                           (i)  valid government-issued photo
  identification; or
                           (ii)  if the individual indicates an
  intention to undertake digitally prearranged deliveries by motor
  vehicle, a valid driver's license issued by this state or another
  state;
               (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 indicates an intention to
  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 is authorized to 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 four 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 a criminal background check before authorizing a delivery
  person to access the company's digital network.
         (d)  A delivery network company shall restrict a delivery
  person's access to the company's digital network at the request of
  law enforcement or on receipt of a court order.
         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
  geographical 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 is considered an independent
  contractor for all purposes, and not an employee of a delivery
  network 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)  prescribe 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, Occupations Code, is amended
  by adding Subsection (a-1) to read as follows:
         (a-1)  A delivery network company shall maintain records
  evidencing compliance with the requirements of this chapter for a
  period of two years.
         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 or delivery person 
  accessing the company's digital network to facilitate:
               (1)  identification of the passenger or delivery
  customer by the driver or delivery person; or
               (2)  communication between the passenger or delivery
  customer and the driver or delivery person.
         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.
 
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