GREEN SHEET REDIGEST
HB 575 2019 Regular Session Magee
TRANSPORTATION: Establishes requirements for transportation network
companies.
DIGEST
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 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 Transportation and Development.
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. Specifies that 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. Specifies that a prearranged ride does not include shared expense van pool
services, as defined in present law, shared expense car pool services, as defined in 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.
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Prepared by Martha Hess. 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 a 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 further
provides that the department shall not charge a fee for the permit.
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 a driver to present his physical driver's license or
digitized driver's license to a rider prior to the start of each prearranged ride upon request.
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
address the use of drugs or alcohol while a driver is providing prearranged rides or is logged
into the company's digital network regardless of whether the driver is 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 two years from the date that a rider's
complaint is received by the company.
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Prepared by Martha Hess. 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 at least three years after each trip or dissolution of a relationship with a driver.
Proposed law establishes requirements and procedures for an audit of records of a company
by the department. Proposed law further provides that a dispute arising in this state involving
the company or a driver under proposed law shall not be governed by the laws of another
jurisdiction and shall not be resolved outside of this state, unless agreed to by all parties in
writing after the dispute has arisen.
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 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
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Prepared by Martha Hess. 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 provides that on a quarterly basis, each company shall remit to the Louisiana
Department of Revenue an assessment fee equal to one percent of the gross trip fare for all
prearranged rides that originate in this state in accordance with proposed law. The assessment
fee shall be remitted on or before thirty days after the close of each calendar quarter and shall
be submitted with a report, on forms prescribed by the secretary of the Department of
Revenue, showing the gross trip fares that originated in the state during the reporting quarter.
Proposed law further provides that funds received by the Department of Revenue in the form
of assessment fees authorized in Subsection shall be deposited immediately upon receipt into
the state treasury. After compliance with the requirements of Article VII, Section 9(B) of the
Constitution of Louisiana relative to the Bond Security and Redemption Fund, an amount
equal to that deposited as required by proposed law shall be credited to the department and
shall be used solely for the expenses of the operations of the department in regulating
transportation network companies, and only in the amounts appropriated by the legislature.
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 of revenue sole audit authority with respect to the fees
remitted by a company to a local governmental subdivision and the department of revenue
and provides procedures.
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
of revenue initiate an audit pursuant to proposed law. To be material, the underpayment to
the local governmental subdivision must be greater than ten percent of the amount required
to be remitted 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
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Prepared by Martha Hess. 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 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 does not prohibit a police department of a local governmental subdivision from
contracting with a company operating in that jurisdiction for the purpose of coordination of
pick-up and drop-off zones associated with large events occurring in that jurisdiction.
Provides that "large event" means any event designated as SEAR-1, under the Federal
Special Event Assessment Rating system, or as a National Special Security Event.
Proposed law provides that the contract associated with a "large event" shall not exclude any
company holding a permit under proposed law from providing services at the event; shall
have comparable terms for each company, taxi cabs, limousines, or any other for-hire
vehicles providing services at the large event; and, shall not preclude the police department
from enforcing traffic laws.
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.
Proposed law requires 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. 48:2191 - 2205)
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Transportation,
Highways and Public Works to the original bill:
1. Makes technical changes.
2. Changes the governing authority for transportation network companies from the
Dept. of Agriculture and Forestry to the Dept. of Transportation and
Development.
The House Floor Amendments to the engrossed bill:
1. Makes technical changes.
2. Requires a driver to present his physical or digitized driver's license to a rider
prior to the start of each prearranged ride upon the request of the rider.
3. Deletes the provision that required all records inspected by the department be
designated confidential and the provision that prohibited any records inspected
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Prepared by Martha Hess. by the department from being subject to third party disclosure without prior
written consent of the company.
4. Deletes the provision that provided that the total fee remitted to any local
governmental subdivision by a company, any records maintained by a company
that are obtained by a local governmental subdivision, the department, or any
other public body, and any records that incorporate information from records
maintained are designated confidential and are not subject to disclosure to a third
party without prior written consent of the company.
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Judiciary A to the
reengrossed bill
1. Provides relative to audit and Department of Revenue procedures.
2. Adds provisions relative to parishes with certain populations.
3. Provides relative to disputes.
Committee Amendments Proposed by Senate Committee on Finance to the reengrossed
bill
1. Removes provision that any parish having a population between 340,000 and
430,000 shall maintain the current minimum fare for a trip to and from an airport
to the central business district of the parish.
2. Removes provision that provided that proposed law shall not prohibit the
implementation and enforcement of company or driver regulations within the
parish, or the setting of company or driver routes and vehicle access during major
events within the parish, by any parish having a population of more than 340,000
but less than 430,000. For the purpose of such actions by the parish, all for hire
vehicles shall be treated in the same manner.
3. Provides that a police department of a local governmental subdivision may
contract with a company operating in that jurisdiction for the purpose of
coordination of pick-up and drop-off zones associated with large events occurring
in that jurisdiction. Provides that "large event" means any event designated as
SEAR-1, under the Federal Special Event Assessment Rating system, or as a
National Special Security Event.
4. Provides that the contract associated with a "large event" shall not exclude any
company holding a permit under proposed law from providing services at the
event; shall have comparable terms for each company, taxi cabs, limousines, or
any other for-hire vehicles providing services at the large event; and shall not
preclude the police department from enforcing traffic laws.
5. Requires DOTD to promulgate rules and regulations to implement and enforce
proposed law.
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Prepared by Martha Hess.