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 572 Original 2019 Regular Session Barras
Abstract: Provides relative to transportation network company requirements.
Proposed law provides definitions for, "bodily injury", "department", "digital network", "gross trip
fare", "intrastate prearranged ride", "local governmental subdivision", "personal vehicle",
"prearranged ride", "pre-trip acceptance period", "transportation network company","transportation
network company driver", "transportation network company rider", and "transportation network
company vehicle".
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 "department" as the La. Dept. of Agriculture and Forestry.
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 "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 "intrastate prearranged ride" as any prearranged ride originating within the
jurisdiction of the local governmental subdivision.
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 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 present law, shared expense car pool services, as defined pursuant to present law, or transportation provided using a vehicle subject
to Part A or B of the Motor Carrier law or engaged solely in interstate commerce.
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 "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 "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.
Proposed law provides that a "transportation network company vehicle" has 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 and exempts a driver from having to
register the vehicle as a commercial motor vehicle or for hire vehicle.
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 relevant to the complaint for a period of at
least 2 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 2 years.
Proposed law requires a company to prohibit an individual from acting as a driver if, within the 3
year period prior to applying to the company, the individual's driving history report reveals more than
3 moving violations, or the individual's initial background check or any subsequent background
check reveals the individual has had at least 1 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 7 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
at least 3 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 100 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.
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, 2019, and has a company operating within the corporate
limits of a local governmental subdivision as of March 1, 2019, 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,
2019, 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 1% 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 specifies that a municipality's fee may apply only to intrastate prearranged rides
originating within the incorporated limits of the municipality and a parish's fee may apply only to
intrastate prearranged rides originating within the unincorporated portions of the parish.
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 1st 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 $50, requires the company to remit the
underpaid fees to the local governmental subdivision within 30 days.
Proposed law prohibits a local governmental subdivision from adding audit authority by ordinance.
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 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 on imposing taxes, 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.
Proposed law provides that nothing in proposed law is to 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.
Present law authorizes a policy of insurance procured pursuant to present law to be placed with an
authorized insurer or with a surplus lines insurer pursuant to present law.
Proposed law retains present law but requires that the authorized insurer or surplus lines insurer have
a rating of no less than an A- from A.M. Best, an A from Demotech, Inc., or a similar rating from
another rating agency recognized by the Dept. of Insurance.
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, 2019.
(Amends R.S. 45:201.6(G)(2); Adds R.S. 3:4741.1 - 4741.15)