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HOUSE OF REPRESENTATIVES - FLOOR VERSION
STATE OF OKLAHOMA
1st Session of the 58th Legislature (2021)
COMMITTEE SUBSTITUTE
FOR
HOUSE BILL NO. 1798 By: Miller
COMMITTEE SUBSTITUTE
An Act relating to consumer protection; creating the
Network Company Services Act; defining terms;
authorizing Attorney General to enforce; imposing
certain requirements on network companies; requiring
certain policies; protecting consumer information;
providing for codification; and providing an
effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 800.1 of Title 15, unless there
is created a duplication in numbering, reads as follows:
This act shall be known and may be cited as the "Network Company
Services Act".
SECTION 2. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 800.2 of Title 15, unless there
is created a duplication in numbering, reads as follows:
As used in the Network Company Services Act:
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1. "Digital network" means any online -enabled application,
software, website or system offered or utilized by a network company
that enables the prearrangement of networ k company services;
2. "Network company" means a business entity operating in
Oklahoma that uses a digital network or software application service
to connect network company consumers to network company services
provided by network company service provide rs;
3. "Network company services" shall include, but is not limited
to, such services as delivery of consumer goods, groceries and food
from restaurants. Network company services shall not include
transportation of passengers;
4. "Network company servic e provider" means an individual who:
a. receives connections to potential network company
consumers from a network company in exchange for
payment of a fee to the network company, and
b. uses a personal vehicle to provide network company
services upon connection through a digital network
controlled by a network company in return for
compensation or payment of a fee.
A network company service provider includes individuals classified
as either an employee or independent contractor of the network
company; and
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5. "Network company consumer" means a person or persons who use
a digital network to connect with a network company to obtain
network company services.
SECTION 3. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 800.3 of Title 15, unless there
is created a duplication in numbering, reads as follows:
A. The Attorney General shall have the authority to examine the
records of network companies for the purpose of enforcement of this
act. Records obtained by the Attorney General pursuant to this act
shall not be subject to disclosure under the Oklahoma Open Records
Act and shall be kept confidential by the Attorney General, except
as may be required in a proceeding.
B. Failure of a network company to comp ly with the provisions
of this act shall be a violation of the Oklahoma Consumer Protection
Act.
SECTION 4. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 800.4 of Title 15, unless there
is created a duplication in numbering, reads as follows:
A. Prior to permitting an individual to act as a network
company service provider on its digital network, the network company
shall:
1. Require the individual to submit an application to the
network company, which includes information regarding the
individual's address, age, driver license, driving history, motor
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vehicle registration, automobile liability insurance and other
information required by the network company; and
2. Conduct, or have a third party con duct, a local and national
criminal background check for each applicant that shall include a
check of:
a. the Multi-State/Multi-Jurisdictional Criminal Records
Locator or other similar commercial nationwide
database with validation through a primary source
search,
b. the National Sex Offender Registry database, and
c. the Oklahoma Sex and Violent Offender Registry
database.
B. Network companies shall not permit an individual to act as a
network company service provider on its digital network who:
1. Has been convicted, within the past two (2) years, of
driving under the influence of drugs or alcohol;
2. Has been convicted, within the past seven (7) years, of
fraud, sexual offenses, use of a motor vehicle to commit a felony, a
crime involving property dama ge, theft, acts of violence or acts of
terror;
3. Is a match in the National Sex Offender Registry or Oklahoma
Sex and Violent Offender Registry database;
4. Does not possess a valid driver license;
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5. Does not possess current proof of motor vehicle reg istration
for the motor vehicle(s) used to provide network company services;
6. Does not possess proof of the automobile liability insurance
required by law or rule for the motor vehicle(s) used to provide
network company services; or
7. Is not at least eighteen (18) years of age.
C. Network companies shall implement a procedure for periodic
information updates for each network company service provider
required by subsection A of this section to ensure continued
compliance by each network company service provider with the
requirements of subsection B of this section.
SECTION 5. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 800.5 of Title 15, unless there
is created a duplication in numbering, reads as follows:
A network company's software application or website shall
display a current picture of the network company service provider
and the license plate number, make, model and color of the motor
vehicle utilized for providing network company service s.
SECTION 6. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 800.6 of Title 15, unless there
is created a duplication in numbering, reads as follows:
A. Network companies shall implement a zero -tolerance policy
against network company service providers from permitting persons
other than the authorized network company service provider from
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providing network company services including the assembling, picking
up, transportation and delivery of network c ompany services.
B. The network company shall implement a procedure for periodic
identification checks to verify that the authorized network company
service provider is providing the network company services.
C. The network company shall provide notice o f its zero-
tolerance policy on its digital network, as well as procedures to
report a complaint about an unauthorized person providing network
company services. Upon receipt of a complaint from a network
company consumer alleging a violation of the zero -tolerance policy,
the network company shall immediately suspend such network company
service provider's access to the network company's digital network,
and shall conduct an investigation into the reported incident. The
suspension shall last the duration o f the investigation.
D. Network companies shall maintain records relevant to the
enforcement of this requirement for a period of at least two (2)
years from the date that a complaint is received by the network
company.
SECTION 7. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 800.7 of Title 15, unless there
is created a duplication in numbering, reads as follows:
A. Network companies shall not disclose a network company
consumer's personally identif iable information to a third party
unless:
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1. The network company consumer consents;
2. Disclosure is required by a legal obligation; or
3. Disclosure is required to protect or defend the terms of use
of the service or to investigate violations of those terms.
B. Network companies shall be permitted to share a network
service consumer's name, telephone number, and address with the
network company service provider providing network company services
only to facilitate correct identification of the network company
consumer by the network company service provider or to facilitate
communication between the network company consumer and the network
company service provider.
C. Network companies shall prohibit the use by network company
service providers of a n etwork company consumer's name, telephone
number, address or other personal information for any purpose other
than those listed in this section. Network companies shall
implement policies and procedures to enforce this prohibition as
well as to prevent ne twork company service providers from retaining
or disclosing such information to other persons.
SECTION 8. This act shall become effective November 1, 2021.
COMMITTEE REPORT BY: COMMITTEE ON JUDICIARY - CIVIL, dated
02/18/2021 - DO PASS, As Amended.