HLS 18RS-1589 REENGROSSED 2018 Regular Session HOUSE BILL NO. 749 BY REPRESENTATIVES BARRAS, ABRAHAM, AMEDEE, BACALA, BAGLEY, BERTHELOT, BISHOP, CHAD BROWN, TERRY BROWN, CARMODY, STEVE CARTER, CHANEY, CROMER, DEVILLIER, DWIGHT, EDMONDS, FALCONER, FOIL, GISCLAIR, GUINN, LANCE HARRIS, HAVARD, HAZEL, HENSGENS, HOFFMANN, HORTON, HUVAL, JENKINS, NANCY LANDRY, TERRY LANDRY, MAGEE, MCFARLAND, MIGUEZ, JIM MORRIS, NORTON, PIERRE, PUGH, PYLANT, SCHEXNAYDER, SEABAUGH, SHADOIN, STEFANSKI, STOKES, THIBAUT, THOMAS, WHITE, AND ZERINGUE AND SENATORS APPEL, CHABERT, CORTEZ, ERDEY, HEWITT, LAFLEUR, MIZELL, PEACOCK, AND WHITE TRANSPORTATION: Provides relative to transportation network company requirements 1 AN ACT 2To amend and reenact R.S. 45:201.6(G)(2) and to enact Part III of Chapter 30 of Title 3 of 3 the Louisiana Revised Statutes of 1950, to be comprised of R.S. 3:4741.1 through 4 4741.15, relative to transportation network companies; to provide for public records 5 exceptions; to provide for transportation network company requirements; to provide 6 for definitions; to provide for insurance requirements; to provide for an effective 7 date; to provide for fees; and to provide for related matters. 8Be it enacted by the Legislature of Louisiana: 9 Section 1. R.S. 45:201.6(G)(2) is hereby amended and reenacted to read as follows: 10 §201.6. Requirements for insurance. 11 * * * 12 G. A policy of insurance procured pursuant to this Section: 13 * * * Page 1 of 18 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 18RS-1589 REENGROSSED HB NO. 749 1 (2) May be placed with an authorized insurer or with a surplus lines insurer 2 pursuant to R.S. 22:432. that has a rating of no less than A- from A.M. Best or an A 3 from Demotech, Inc. or a similar rating from another rating agency recognized by 4 the Department of Insurance. 5 * * * 6 Section 2. Part III of Chapter 30 of Title 3 of the Louisiana Revised Statutes 7 of 1950, comprised of R.S. 3:4741.1 through 4741.15 are hereby enacted to read as 8 follows: 9 PART III. TRANSPORTATION NETWORK COMPANY REQUI REMENTS 10 §4741.1. Definitions 11 The following terms, as used in this Part, shall have the meanings ascribed 12 to them in this Section except where a different meaning is expressly stated or 13 clearly indicated by context: 14 (1) "Bodily injury" means claims for general and special damages for 15 personal injury arising under Civil Code Article 2315. 16 (2) "Department" means the Louisiana Department of Agriculture and 17 Forestry. 18 (3) "Digital network" means any online-enabled application, software, 19 website or system offered or utilized by a transportation network company that 20 enables the prearrangement of rides with transportation network company drivers. 21 (4) "Gross trip fare" means the base fare plus any time or distance charges, 22 excluding any additional charges such as airport or venue fees. 23 (5) "Prearranged ride" means the provision of transportation by a driver to 24 a rider that commences when a driver accepts a ride requested by a person through 25 a digital network controlled by a transportation network company, continues during 26 the driver transporting a requesting rider, and ends when the last requesting rider 27 departs from the personal vehicle. A prearranged ride does not include shared 28 expense van pool services, as defined pursuant to R.S. 45:162(18), or shared expense 29 car pool services, as defined pursuant to R.S. 45:162(1), transportation provided Page 2 of 18 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 18RS-1589 REENGROSSED HB NO. 749 1 using a vehicle subject to Part A or B of the Motor Carrier law as provided for in 2 R.S. 45:161 et seq. or engaged solely in interstate commerce. 3 (6) "Local governmental subdivision" means any parish or municipality as 4 defined in Article VI, Section 44(1) of the Constitution of Louisiana. 5 (7) "Pre-trip acceptance period" means any period of time during which a 6 driver is logged on to the transportation network company's digital network and is 7 available to receive transportation requests but is not engaged in an intrastate 8 prearranged ride as defined in Paragraph (4) of this Section. 9 (8) "Transportation network company" or "company" means a person, 10 whether natural or juridical, that uses a digital network to connect transportation 11 network company riders to transportation network company drivers who provide 12 prearranged rides, or a person, whether natural or juridical, that provides a 13 technology platform to a transportation network company rider that enables the 14 transportation network company rider to schedule an intrastate prearranged ride. 15 (9) "Transportation network company driver" or "driver" means a person 16 who receives connections to potential passengers and related services from a 17 transportation network company in exchange for payment of a fee to the 18 transportation network company, and who uses a personal vehicle to offer or provide 19 a prearranged ride to persons upon connection through a digital network controlled 20 by a transportation network company in return for compensation or payment of a fee. 21 (10) "Transportation network company rider" or "rider" means a person who 22 uses a transportation network company’s digital network to connect with a 23 transportation network driver who provides intrastate prearranged rides to the rider 24 in the driver's personal vehicle between points chosen by the rider. 25 (11) "Personal vehicle" means a vehicle that is used by a transportation 26 network company driver and is owned, leased, or otherwise authorized for use by the 27 transportation network company driver. A personal vehicle is not a vehicle subject 28 to Parts A and B of the Motor Carrier law as provided for in R.S. 45:161 et seq. or 29 engaged solely in interstate commerce." Page 3 of 18 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 18RS-1589 REENGROSSED HB NO. 749 1 (12) "Intrastate prearranged ride" means any prearranged ride, as provided 2 for in this Section, originating within the jurisdiction of the local governmental 3 subdivision. 4 (13) "Transportation network company vehicle" or "vehicle" has the same 5 meaning as "personal vehicle" as provided for in this Section. 6 §4741.2. Classification of carriers 7 A company or a driver shall not be considered a common carrier, contract 8 carrier, or motor carrier, and does not provide taxi or for hire vehicle service. In 9 addition, a driver is not required to register the vehicle that the driver uses to provide 10 prearranged rides as a commercial motor vehicle or a for hire vehicle. 11 §4741.3. Transportation network company permits 12 A. A person shall not operate a company in the state of Louisiana without 13 first obtaining a permit from the department. However, if a company has been 14 operating in this state prior to the effective date of this Part, they may continue 15 operating until the department creates a permit process and sets a registration 16 deadline. As a part of the permit process, a company shall be required to provide the 17 department with a certificate of insurance verifying compliance with R.S. 45:201.6 18 and listing the department as a certificate holder. 19 B. The department shall issue a permit to each applicant that meets the 20 requirements applicable to a company as provided for in this Part. 21 §4741.4. Service of process 22 A company shall maintain an agent for service of process in the state of 23 Louisiana. 24 §4741.5. Fare transparency 25 If a fare is collected from a rider, the company shall disclose to the rider the 26 fare or fare calculation method located on its website or within the online-enabled 27 technology application service prior to the start of the prearranged ride. If the fare 28 is not disclosed to the rider prior to the beginning of the prearranged ride, the rider Page 4 of 18 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 18RS-1589 REENGROSSED HB NO. 749 1 shall have the option to receive an estimated fare before the start of the prearranged 2 ride. 3 §4741.6. Identification of transportation network company vehicles and drivers 4 The company's digital network shall display a picture of the driver and the 5 license plate number of the motor vehicle used for providing the prearranged ride 6 before the rider enters the driver's vehicle. 7 §4741.7. Electronic receipt 8 Within a reasonable amount of time following the completion of a 9 prearranged ride, a company shall transmit an electronic receipt to the rider on behalf 10 of the driver. The receipt shall include all of the following: 11 (1) The origin and destination of the trip. 12 (2) The duration and distance of the trip. 13 (3) The total fare paid for the trip. 14 §4741.8. Zero tolerance policy 15 A. The company shall implement a zero tolerance policy regarding a driver's 16 activities while accessing the company's digital network. The zero tolerance policy 17 shall address the use of drugs or alcohol while a driver is providing prearranged rides 18 or is logged into the company's digital network but is not providing prearranged 19 rides. The company shall provide notice of this policy on its website as well as 20 procedures to report a complaint about a driver with whom a rider was matched and 21 whom the rider reasonably suspects was under the influence of drugs or alcohol 22 during the course of the prearranged ride. 23 B. Upon receipt of a rider's complaint alleging a violation of the zero 24 tolerance policy, the company shall suspend the alleged driver's ability to accept trip 25 requests through the company's digital network immediately, and shall conduct an 26 investigation into the reported incident. The suspension shall last the duration of the 27 investigation. Page 5 of 18 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 18RS-1589 REENGROSSED HB NO. 749 1 C. The company shall maintain records relevant to the enforcement of this 2 requirement for a period of at least two years from the date that a rider's complaint 3 is received by the company. 4 §4741.9. Transportation network company driver requirements 5 A. Before an individual is authorized to accept trip requests through a 6 transportation network company's digital network, the following conditions shall be 7 met: 8 (1) The individual shall submit an application to the company, which 9 includes information regarding his address, age, driver's license, motor vehicle 10 registration, insurance, and any other information required by the company. 11 (2) The company or a third party shall conduct a local and national criminal 12 background check for each applicant that includes the following: 13 (a) A multi-state and multi-jurisdiction criminal records locator or other 14 similar commercial nationwide database with validation of any records through 15 primary source search. 16 (b) A search of the national sex offender public website maintained by the 17 United States Department of Justice. 18 (3) The company or a third party shall obtain and review a driving history 19 research report for each applicant. 20 B. The company or a third party shall conduct the background check and 21 driving history research report set forth in Paragraphs (A)(2) and (A)(3) of this 22 Section at least once every two years. 23 C. The company shall not authorize an individual to act as a driver if the 24 individual's driving history report reveals the individual received more than three 25 moving violations within the three-year period prior to applying to the company. 26 D. The company shall not authorize an individual to act as a driver if the 27 individual's initial background check or any subsequent background check reveals 28 the individual: Page 6 of 18 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 18RS-1589 REENGROSSED HB NO. 749 1 (1) Has had more than one of the following violations within the three-year 2 period prior to applying to the company: 3 (a) Flight from an officer or aggravated flight from an officer as provided for 4 in R.S. 14:108.1. 5 (b) Reckless operation of a vehicle as provided for in R.S. 14:99. 6 (c) Operating a vehicle while under suspension for certain prior offenses as 7 provided for in R.S. 14:98.8. 8 (2) Has been convicted, within the past seven years, of: 9 (a) Any enumerated felony as provided for in Title 14 of the Louisiana 10 Revised Statutes of 1950, comprised of R.S. 14:1 through 601. 11 (b) Operating a vehicle while intoxicated as provided for in R.S. 14:98 12 through 98.4. 13 (c) Hit and run driving as provided for in R.S. 14:100. 14 (d) Any crime of violence as defined in R.S. 14:2(B). 15 (3) Is listed as an offender in the national sex offender public website 16 maintained by the United States Department of Justice. 17 (4) Does not possess a valid driver's license to operate a personal vehicle. 18 (5) Does not possess the required registration to operate a motor vehicle used 19 to provide prearranged rides. 20 §4741.10. Prohibited conduct 21 A driver may not accept a trip for compensation other than a trip arranged 22 through a company's digital network. 23 §4741.11. Nondiscrimination; accessibility 24 A. The company shall adopt a nondiscrimination policy with respect to riders 25 and potential riders and shall inform drivers of such policy. 26 B. Drivers shall comply with all applicable nondiscrimination laws. 27 C. Drivers shall comply with all applicable laws relating to transporting 28 service animals. Page 7 of 18 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 18RS-1589 REENGROSSED HB NO. 749 1 D. A company shall not impose any additional charges for providing services 2 to persons with physical disabilities. 3 §4741.12. Records 4 A company shall maintain the following records: 5 (1) Individual trip records for at least three years from the date each trip was 6 provided. 7 (2) Individual records of drivers for at least three years after the date which 8 a driver's relationship with the company has ended. 9 §4741.13. Audit procedures; confidentiality of records 10 A. For the sole purpose of verifying that a company is in compliance with 11 the requirements of this Part, annually at most, the department shall have the right 12 to visually inspect a sample of records that the company is required to maintain. The 13 sample shall consist of required records pertaining to up to one hundred drivers. If, 14 after the initial review, the department has a reasonable basis to conclude that the 15 company is not in compliance with the requirements of this Part, the department 16 may, upon reasonable notice, conduct a supplemental audit of records for an 17 additional selection of drivers. The audit shall take place at a location in Baton 18 Rouge. Any record furnished to the department may, as appropriate, exclude 19 information that would identify specific drivers or riders. 20 B. The governing body of a local governmental subdivision may request 21 from the department a report on the results of the audit performed by the commission 22 pursuant to Subsection A of this Section. 23 C. In response to a specific complaint against any driver or company, the 24 department is authorized to inspect records held by the company that are necessary 25 to investigate and resolve the complaint. The company and department shall 26 endeavor to have the inspection take place at a mutually agreed upon location in the 27 state. Any record furnished to the department may exclude information that would 28 identify specific drivers or riders, unless the identity of a driver or rider is relevant 29 to the complaint. Page 8 of 18 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 18RS-1589 REENGROSSED HB NO. 749 1 D. Any records inspected by the department pursuant to this Section are 2 designated confidential and are not subject to disclosure to a third party by the 3 department without prior written consent of the company. Nothing in this Section 4 shall be construed as applying to other department records related to its regulation 5 of transportation network companies if such records do not include information that 6 is otherwise designated confidential. 7 §4741.14. Local fees 8 A. A local governmental subdivision that enacted a transportation network 9 company ordinance prior to March 1, 2018, that included a per-trip fee and has a 10 company operating within the corporate limits of the local governmental subdivision 11 as of March 1, 2018, is authorized to impose a fee up to or equal to the per-trip fee 12 imposed by the local governmental subdivision's transportation network company 13 ordinance as of March 1, 2018, on each intrastate prearranged ride originating within 14 the corporate limits of the local governmental subdivision. Nothing in this 15 Subsection shall be construed to allow a local governmental subdivision to impose 16 any fees or requirements other than the per-trip fee specified in this Subsection. 17 B. Any local governmental subdivision not included in Subsection A of this 18 Section is authorized to impose a fee of up to one percent of the gross trip fare for 19 each intrastate prearranged ride. A local governmental subdivision that imposes a 20 per-trip fee pursuant to Subsection A of this Section shall not also impose a fee 21 pursuant to this Subsection. Nothing in this Subsection shall be construed to allow 22 a local governmental subdivision to impose any fees or requirements other than the 23 fee specified in this Subsection. 24 C. A local governmental subdivision authorized to impose a fee pursuant to 25 Subsection B of this Section may impose the specified fee that complies with 26 Subsection B of this Section by passing an ordinance. The ordinance shall impose 27 the specified fee that complies with Subsection B of this Section on each company 28 permitted by the department in accordance with R.S. 3:4741.3. A municipality's fee 29 may apply only to intrastate prearranged rides originating within the incorporated Page 9 of 18 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 18RS-1589 REENGROSSED HB NO. 749 1 limits of the municipality. A parish's fee may apply only to intrastate prearranged 2 rides originating within the unincorporated portions of the parish. 3 D. A local governmental subdivision shall provide, at least thirty days prior, 4 written notice to each company permitted by the department, in accordance with R.S. 5 3:4741.3, of an initial hearing, reading, or consideration of an ordinance imposing 6 a fee pursuant to this Section. A local governmental subdivision shall also provide 7 written notice within ten days of the passage of any ordinance imposing a fee 8 pursuant to this Section. A fee imposed pursuant to this Section shall not go into 9 effect until the first day of the month that is at least thirty days after passage of the 10 ordinance imposing the fee. 11 E. If a local governmental subdivision passes an ordinance imposing a fee 12 pursuant to this Section, a company shall collect the fee on behalf of drivers for each 13 intrastate prearranged ride. Each company shall remit the total fee to the local 14 governmental subdivision on a quarterly basis within thirty days after the end of the 15 calendar quarter. 16 F. The department shall have the sole audit authority with respect to fees 17 remitted by a company to a local governmental subdivision. A company shall keep 18 accurate books and records reflecting its accounting and payment of fees, pursuant 19 to this Section, in accordance with generally accepted accounting principles. For 20 each local governmental subdivision that passes an ordinance imposing a fee 21 pursuant to this Section, the department may, at its discretion, upon reasonable prior 22 written request, and no more than annually, conduct an audit by visually inspecting 23 a company's books and records related to its accounting and payment of fees to the 24 local governmental subdivision. Such an audit shall be limited to a single calendar 25 quarter, which may be chosen by the department, for each local governmental 26 subdivision. The department shall endeavor to have any such audits for a particular 27 company occur within the same calendar quarter. If the local governmental 28 subdivision has a reasonable basis to suspect a material underpayment by a company, 29 the local governmental subdivision shall request that the department initiate an audit Page 10 of 18 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 18RS-1589 REENGROSSED HB NO. 749 1 pursuant to this Subsection. If an underpayment of over fifty dollars to any local 2 governmental subdivision is identified in an audit conducted by the department, the 3 company shall remit the underpaid fees to the local governmental subdivision within 4 thirty days of the conclusion of the department's audit. A local governmental 5 subdivision shall not add additional audit authority by ordinance. Any record 6 furnished or disclosed to the department may, as appropriate, exclude information 7 that would identify specific drivers or riders. 8 G. The governing body of a local governmental subdivision may request to 9 review the results of an audit conducted pursuant to Subsection F of this Section with 10 respect to fees remitted by a company to the local governmental subdivision. 11 H. The total fee remitted to any local governmental subdivision by a 12 company, any records maintained by a company pursuant to this Section that are 13 obtained by a local governmental subdivision, the department, or any other public 14 body, and any records that incorporate information from records maintained pursuant 15 to this Section are designated confidential and are not subject to disclosure to a third 16 party without prior written consent of the company. Nothing in this Subsection shall 17 prohibit the department from communicating the results of an audit pursuant to 18 Subsection F of this Section to the local governmental subdivision of which the fees 19 were the subject of the audit. 20 §4741.15. Controlling authority 21 A. It is the intent of the legislature to provide uniform laws to govern 22 companies, drivers, and vehicles throughout the state in order to protect and promote 23 the safety and welfare of the residents of Louisiana. 24 B. Except as provided in R.S. 3:4741.14 and 4741.15(D), and 25 notwithstanding any other provision of law to the contrary, companies, drivers, and 26 vehicles are governed exclusively by state law, including Part C of the Motor Carrier 27 law as provided for in R.S. 45:161 et. seq., this Part, and any rules promulgated by 28 the department consistent with this Part. 29 C. A local governmental subdivision shall not do any of the following: Page 11 of 18 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 18RS-1589 REENGROSSED HB NO. 749 1 (1) Impose a tax on, or require a license for, a company, a driver, or a vehicle 2 if such tax or license relates to providing prearranged rides, except as provided in 3 R.S. 3:4741.14 or 4741.15(D). 4 (2) Require a company or a driver to obtain a business license or any other 5 type of similar authorization to operate within the jurisdiction. 6 (3) Subject a company, a driver, or a vehicle to any rate, entry, operation, or 7 other requirement of the governing authority, except as provided in R.S. 3:4741.14 8 or 4741.15(D). 9 D. The provisions of this Section do not prohibit an airport from charging 10 pick-up fees for the use of the airport's facilities or designating locations for staging, 11 pick-up, and other similar operations at the airport. An airport pick-up fee is not a 12 local fee subject to the provisions of R.S. 3:4741.14. 13 E. Nothing in this Section may be construed to prohibit the state from 14 maintaining, enforcing, prescribing, or continuing in effect any law or regulation 15 regarding the sale, distribution, repair, or service of vehicles pursuant to Title 32 of 16 the Louisiana Revised Statutes of 1950. 17 Section 3. The department shall also have the authority to promulgate rules and 18regulations to implement and enforce this Act, including the imposition of fees as are 19necessary to cover the cost of administration of this Act. The rules and regulations may be 20more stringent than the requirements set forth in this Act, provided that they are consistent 21with the requirements of this Act. Additionally, the department shall report to the Joint 22Legislative Committee on Transportation, Highways and Public Works for review and 23approval of any rules or regulations promulgated by the department. 24 Section 4. This Act shall become effective July 1, 2018. Page 12 of 18 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 18RS-1589 REENGROSSED HB NO. 749 DIGEST The digest printed below was prepared by House Legislative Services. It constitutes no part of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)] HB 749 Reengrossed 2018 Regular Session Barras Abstract: Provides relative to transportation network company requirements. Proposed law provides definitions for "transportation network company", "bodily injury", "digital network", "personal vehicle", "prearranged ride", "transportation network company driver", "transportation network company rider", "pre-trip acceptance period", "intrastate prearranged ride", "department", "gross trip fare", "local governmental subdivision", and "transportation network company vehicle" Proposed law defines "transportation network company" as a person, whether natural or juridical, that uses a digital network to connect transportation network company riders to transportation network company drivers who provide prearranged rides, or a person, whether natural or juridical, that provides a technology platform to a transportation network company rider that enables the transportation network company rider to schedule an intrastate prearranged ride. Proposed law defines "bodily injury" as claims for general and special damages for personal injury arising under present law (Civil Code Article 2315). Proposed law defines "digital network" as any online-enabled application, software, website or system offered or utilized by a transportation network company that enables the prearrangement of rides with transportation network company drivers. Proposed law defines "personal vehicle" as a vehicle that is used by a transportation network company driver and is owned, leased, or otherwise authorized for use by the transportation network company driver. A personal vehicle is not a vehicle subject to Parts A and B of the Motor Carrier law as provided for in R.S. 45:161 et seq. or engaged solely in interstate commerce. Proposed law defines "prearranged ride" as the provision of transportation by a driver to a rider that commences when a driver accepts a ride requested by a person through a digital network controlled by a transportation network company, continues during the driver transporting a requesting rider, and ends when the last requesting rider departs from the personal vehicle. A prearranged ride does not include shared expense van pool services, as defined pursuant to R.S. 45:162(18), or shared expense car pool services, as defined pursuant to R.S. 45:162(1), transportation provided using a vehicle subject to Part A or B of the Motor Carrier law as provided for in R.S. 45:161 et seq. or engaged solely in interstate commerce. Proposed law defines "transportation network company driver" as a person who receives connections to potential passengers and related services from a transportation network company in exchange for payment of a fee to the transportation network company, and who uses a personal vehicle to offer or provide a prearranged ride to persons upon connection through a digital network controlled by a transportation network company in return for compensation or payment of a fee. Proposed law defines "transportation network company rider" as a person who uses a transportation network company’s digital network to connect with a transportation network driver who provides intrastate prearranged rides to the rider in the driver's personal vehicle between points chosen by the rider. Page 13 of 18 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 18RS-1589 REENGROSSED HB NO. 749 Proposed law defines "pre-trip acceptance period" as any period of time during which a driver is logged on to the transportation network company's digital network and is available to receive transportation requests but is not engaged in an intrastate prearranged ride. Proposed law defines "intrastate prearranged ride" as any prearranged ride originating within the jurisdiction of the local governmental subdivision. Proposed law defines "department" as the La. Dept. of Agriculture and Forestry. Proposed law defines "gross trip fare" as the base fare plus any time or distance charges, excluding any additional charges such as airport or venue fees. Proposed law defines "local governmental subdivision" as any parish or municipality as defined in Article VI, Section 44(1) of the Constitution of Louisiana. Proposed law provides that a "transportation network company vehicle" shall have the same meaning as "personal vehicle". Proposed law establishes a classification of carriers; specifically, provides that a company or driver is not a common carrier, contract carrier, or motor carrier. Proposed law prohibits a person from operating a company without first obtaining a permit from the department and further provides requirements for the permit. Proposed law provides an exception to this requirement for companies that have been operating in this state prior to the effective date of proposed law. Proposed law requires the department to issue a permit to each applicant that meets the requirements applicable to a company as provided for in proposed law. Proposed law requires a company to maintain an agent for service of process in this state. Proposed law requires companies to disclose the fare or the fare calculation method located on their website or within the online-enabled technology application service to the rider prior to the prearranged ride if a fare is collected from the rider. Proposed law requires the company's digital network to display a picture of the driver and the license plate number of the vehicle that will be used prior to the rider entering the car for a prearranged ride. Proposed law requires the transmission of an electronic receipt to the rider on behalf of a driver within a reasonable time following the completion of a prearranged ride. Proposed law requires that the origin and destination of the trip, the duration and distance of the trip, and the total fare paid for the trip be included on the receipt. Proposed law requires a company to implement a zero tolerance policy regarding a driver's activities while accessing the company's digital network. Proposed law requires the policy to address the use of drugs or alcohol while a driver is providing prearranged rides or is logged into the company's digital network but is not providing prearranged rides, and requires the company to provide notice of this policy on its website as well as procedures to report a complaint about a driver with whom a rider was matched and whom the rider reasonably suspects was under the influence of drugs or alcohol during the course of the prearranged ride. Proposed law requires a company to suspend a driver's ability to accept trip requests through the company's digital network immediately upon receipt of a rider's complaint alleging a violation of the zero tolerance policy. Proposed law further requires the company to conduct an investigation into the reported incident and mandates that the suspension must last until the investigation is complete. Proposed law requires the company to maintain records Page 14 of 18 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 18RS-1589 REENGROSSED HB NO. 749 relevant to the complaint for a period of two years from the date that a rider's complaint is received by the company. Proposed law establishes application, background check, and driving history requirements that an individual must meet prior to being authorized to accept trip requests through a company's digital network. Proposed law requires the application include information regarding the applicant's address, age, driver's license, motor vehicle registration, insurance, and any other information required by the company. Proposed law requires the company or a third party conduct a local and national criminal background check for each applicant that includes: a multi-state and multi-jurisdictional criminal records locator or other similar commercial nationwide database, a search of the national sex offender public website maintained by the U.S. Dept. of Justice, and the applicant's driving history. Proposed law further requires the company to conduct the background check or driving history research report at least once every two years. Proposed law requires a company to prohibit an individual from acting as a driver if, within the three-year period prior to applying to the company, the individual's driving history report reveals more than three moving violations, or the individual's initial background check or any subsequent background check reveals the individual has had at least one of the following violations: flight from an officer or aggravated flight from an officer, reckless operation of a vehicle, or operating a vehicle while under suspension. Proposed law requires a company to prohibit an individual from acting as a driver if the individual has been convicted, within the past seven years, of any enumerated felony in present law, operating a vehicle while intoxicated, hit and run driving, or any crime of violence as provided for in present law. Proposed law further requires a company to prohibit an individual from acting as a driver if the individual is listed as an offender on the national sex offender public website maintained by the U.S. Dept. of Justice, or does not possess a valid driver's license or the required registration to operate a motor vehicle. Proposed law prohibits a driver from accepting a trip for compensation if it is not arranged through the company's digital network. Proposed law requires a company to adopt a nondiscrimination policy with respect to riders and potential riders and to inform its drivers of this policy. Proposed law requires the drivers to comply with all applicable nondiscrimination laws and all applicable laws relating to transporting service animals. Proposed law prohibits a company from imposing any additional charges for providing services to persons with physical disabilities. Proposed law requires a company to keep individual trip records and individual driver records for three years after each trip or dissolution of a relationship with a driver. Proposed law provides requirements and procedures for an audit of a company by the department. Specifies that the audit procedures are to include the right by the department to visually inspect a sample of records, pertaining up to one hundred drivers, that the company is required to maintain. Proposed law further provides that if the department has a reasonable basis to conclude that the company is not in compliance with the requirements of present law after initial review, the department may conduct a supplemental audit of records for an additional selection of drivers at a location in Baton Rouge; the identity of specific drivers or riders may be excluded, as appropriate, from the records. Page 15 of 18 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 18RS-1589 REENGROSSED HB NO. 749 Proposed law grants the governing body of a local governmental subdivision the ability to request a report from the department on the results of an audit performed by the commission pursuant to present law. Proposed law authorizes the department to inspect records held by the company that are necessary to investigate and resolve a specific complaint against a driver or the company. Requires the inspection to take place at a mutually agreed upon place by the department and the company. Specifies that the identity of a driver or rider may be excluded unless it is relevant to the complaint. Proposed law provides that any records inspected by the department pursuant to proposed law are designated confidential and are not subject to disclosure to a third party without written consent. Proposed law provides an exclusion from this designation if such records do not include information that is otherwise designated confidential. Proposed law authorizes a local governmental subdivision that has enacted a company ordinance that includes a per-trip fee prior to March 1, 2018, and has a company operating within the corporate limits of a local governmental subdivision as of March 1, 2018, to impose a fee up to or equal to the per-trip fee imposed by the local governmental subdivision's company ordinance as of March 1, 2018, on each intrastate prearranged ride within the corporate limits of the local governmental subdivision. Proposed law authorizes a local governmental subdivision to impose a per-trip fee up to one percent of the gross trip fare for each intrastate prearranged ride. Further provides that the local governmental subdivision may impose such a fee by passing an ordinance that imposes the fee on each company permitted by the department in accordance with present law. Proposed law prohibits a local governmental subdivision that imposes a per-trip fee pursuant to proposed law from imposing any fees or requirements other than the fee specified in proposed law. Proposed law requires a local governmental subdivision provide written notice to each company at least 30 days prior to an initial hearing, reading, or consideration of an ordinance imposing a fee pursuant to proposed law. Further provides that a local governmental subdivision must also provide written notice within 10 days of the passage of any ordinance imposing a fee pursuant to proposed law, and such ordinance cannot go into effect until the first day of the month that it is at least 30 days after passage of the ordinance. Proposed law requires a company to collect the fee on behalf of the drivers and remit the total fee to the local governmental subdivision on a quarterly basis within 30 days of the end of the calender quarter. Proposed law grants the department sole audit authority with respect to the fees remitted by a company to a local governmental subdivision; requires a company to keep accurate books and records reflecting its accounting and payment of fees; and upon reasonable prior written request, no more than annually, authorizes the department to conduct an audit by visually inspecting a company's books and records relating to its accounting and payment of fees to the local governmental subdivision, with the audit limited to a single calender year, which may be chosen by the department. Proposed law provides that if a local governmental subdivision has a reasonable basis to suspect underpayment, the local governmental subdivision must request that the department initiate an audit pursuant to proposed law, and if underpayment is over fifty dollars, requires the company to remit the underpaid fees to the local governmental subdivision within 30 days. Proposed law provides that any record furnished or disclosed to the department may, as appropriate, exclude information that would identify specific drivers or riders. Further Page 16 of 18 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 18RS-1589 REENGROSSED HB NO. 749 provides that the governing body of a local governmental subdivision may request to review the results of an audit conducted pursuant to proposed law with respect to fees remitted by a company to the local governmental subdivision. Proposed law provides that the total fee remitted to any local governmental subdivision by a company, any records maintained by a company pursuant to proposed law that are obtained by a local governmental subdivision, the department, or any other public body, and any records that incorporate information from records maintained pursuant to proposed law are designated confidential and are not subject to disclosure to a third party without prior written consent of the company. Proposed law provides that it is the intent of the legislature to provide for the uniformity of laws to govern transportation network companies, along with any rules promulgated by the department. Further provides restrictions to the governing authorities relating to taxing a company, requiring a company to acquire a local business license or other type of authorization to operate, or subject a company to any rate, entry, operation or other requirement except as provided for in proposed law. Proposed law provides that proposed law does not prohibit an airport from charging pick-up fees for the use of the airport's facilities or designating locations for staging, pick-up, and other similar operations at the airport. Further provides that nothing in proposed law may be construed to prohibit the state from maintaining, enforcing, prescribing, or continuing in effect any law or regulation regarding the sale, distribution, repair, or service of vehicles. Proposed law authorizes the department to promulgate rules and regulations to implement and enforce proposed law and specifies that the rules may be more stringent than the requirements set forth in proposed law. Mandates that the department report to the Joint Legislative Committee on Transportation, Highways and Public Works for review and approval of any rules or regulations promulgated by the department. Effective July 1, 2018. (Amends R.S. 45:201.6(G)(2); Adds R.S. 3:4741.1 - 4741.15) Summary of Amendments Adopted by House The Committee Amendments Proposed by House Committee on Transportation, Highways and Public Works to the original bill: 1. Remove the Public Records law, references to the Public Records law and exceptions to the Public Records law from the bill. 2. Make technical changes. 3. Change "covered intrastate prearranged rides" to "intrastate prearranged rides" and modifies the definition to reflect "intrastate prearranged ride". 4. Change the amount of drivers for which the company is required to maintain records for audit purposes from 50 to 100. 5. Authorize the governing body of a local governmental subdivision to request a report from the department on the results on an audit performed by the commission. 6. Specify that a local governmental subdivision's authority to enact local ordinances or fees for companies and provides for the time period within the ordinance or fee will become effective. Page 17 of 18 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 18RS-1589 REENGROSSED HB NO. 749 7. Specify that the audit provision in proposed law require the visual inspection of certain books and records kept by the companies. 8. Specify that certain records furnished or disclosed to the department may exclude information specific to the identification of drivers. 9. Designate certain records obtained by a local governmental subdivision, the department, or any other public body as confidential and exempt from disclosure to a third party without prior written consent of the company. 10.Authorize the request of an audit with respect to fees by the governing body of a local governmental subdivision. Specify that if an underpayment of $50, instead of 1%, to any local governmental subdivision occurs the company must remit the underpaid fees to the local governmental subdivision within 30 days of the audit. 11.Specify that any record furnished or disclosed to the department my exclude appropriate information that would identify specific drivers or riders. 12.Clarify that records maintained by a company and obtained by the department are confidential and not subject to disclosure to a third party without the written consent of the company. 13.Grant airports the authority to charge pick-up fees and designate locations for staging, pick-up and other similar operations at the airport. 14.Clarify that proposed law cannot be construed as prohibiting the state from maintaining, enforcing, prescribing, or continuing in effect any law or regulation regarding the sale, distribution, repair or service of vehicles. 15.Authorize the department to promulgate rules and regulations to implement the provisions of proposed law. The House Floor Amendments to the engrossed bill: 1. Make technical changes. 2. Move proposed law provisions governing transportation network company requirements from Part D of Chapter 4 of Title 45 of the La. Revised Statutes of 1950 to Part III of Chapter 30 of Title 3 of the La. Revised Statutes of 1950. 3. Add definitions for bodily injury, digital network, prearranged ride, pre-trip acceptance period, transportation network company driver, transportation network company rider, and personal vehicle. Page 18 of 18 CODING: Words in struck through type are deletions from existing law; words underscored are additions.