Texas 2015 - 84th Regular

Texas House Bill HB1733 Compare Versions

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1		-	By: Smithee (Senate Sponsor - Watson) H.B. No. 1733
2		-	(In the Senate - Received from the House May 14, 2015;
3		-	May 14, 2015, read first time and referred to Committee on Business
4		-	and Commerce; May 22, 2015, reported favorably by the following
5		-	vote: Yeas 7, Nays 0; May 22, 2015, sent to printer.)
6		-	Click here to see the committee vote
	1	+	H.B. No. 1733
7	2
8	3
9		-	A BILL TO BE ENTITLED
10	4		AN ACT
11	5		relating to automobile liability insurance for transportation
12	6		network company drivers.
13	7		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
14	8		SECTION 1. Subtitle C, Title 10, Insurance Code, is amended
15	9		by adding Chapter 1954 to read as follows:
16	10		CHAPTER 1954. INSURANCE FOR TRANSPORTATION NETWORK COMPANY DRIVERS
17	11		SUBCHAPTER A. GENERAL PROVISIONS
18	12		Sec. 1954.001. DEFINITIONS. In this chapter:
19	13		(1) "Digital network" means any online-enabled
20	14		application, software, website, or system offered or used by a
21	15		transportation network company that enables a prearranged ride with
22	16		a transportation network company driver.
23	17		(2) "Personal vehicle" means a vehicle that is used by
24	18		a transportation network company driver and is:
25	19		(A) owned, leased, or otherwise authorized for
26	20		use by the driver; and
27	21		(B) not a taxicab, limousine, or similar for-hire
28	22		vehicle.
29	23		(3) "Prearranged ride" means transportation provided
30	24		by a transportation network company driver to a transportation
31	25		network company rider, beginning at the time a driver accepts a ride
32	26		requested by a rider through a digital network controlled by a
33	27		transportation network company and ending at the time the last
34	28		requesting rider departs from the driver's personal vehicle. The
35	29		term does not include:
36	30		(A) a shared expense carpool or vanpool
37	31		arrangement or service; or
38	32		(B) transportation provided using a taxicab,
39	33		limousine, or similar for-hire vehicle.
40	34		(4) "Transportation network company" means a
41	35		corporation, partnership, sole proprietorship, or other entity
42	36		operating in this state that uses a digital network to connect a
43	37		transportation network company rider to a transportation network
44	38		company driver for a prearranged ride. The term does not include an
45	39		entity arranging nonemergency medical transportation under a
46	40		contract with the state or a managed care organization for
47	41		individuals qualifying for Medicaid or Medicare.
48	42		(5) "Transportation network company driver" means an
49	43		individual who:
50	44		(A) receives connections to potential
51	45		transportation network company riders and related services from a
52	46		transportation network company in exchange for payment of a fee to
53	47		the company; and
54	48		(B) uses a personal vehicle to offer or provide a
55	49		prearranged ride to a transportation network company rider on
56	50		connection with the rider through a digital network controlled by
57	51		the company in exchange for compensation or payment of a fee.
58	52		(6) "Transportation network company rider" means an
59	53		individual who uses a transportation network company's digital
60	54		network to connect with a transportation network company driver who
61	55		provides a prearranged ride to the individual in the driver's
62	56		personal vehicle between points chosen by the individual.
63	57		Sec. 1954.002. APPLICABILITY OF CHAPTER. This chapter
64	58		applies to automobile insurance policies in this state, including
65	59		policies issued by a Lloyd's plan, a reciprocal or interinsurance
66	60		exchange, and a county mutual insurance company.
67	61		SUBCHAPTER B. INSURANCE REQUIREMENTS
68	62		Sec. 1954.051. GENERAL INSURANCE REQUIREMENT. (a) A
69	63		transportation network company driver or transportation network
70	64		company on the driver's behalf shall maintain primary automobile
71	65		insurance as required by this subchapter.
72	66		(b) Insurance maintained under this subchapter must allow a
73	67		transportation network company driver to use a personal vehicle to
74	68		transport transportation network company riders for compensation
75	69		and cover the driver while:
76	70		(1) the driver is logged on to the transportation
77	71		network company's digital network as provided by Section 1954.052;
78	72		or
79	73		(2) the driver is engaged in a prearranged ride as
80	74		provided by Section 1954.053.
81	75		(c) Insurance maintained under this subchapter must comply
82	76		with the law applicable to personal automobile insurance in this
83	77		state, including this subtitle and Chapter 601, Transportation
84	78		Code.
85	79		(d) The coverage requirements of this subchapter may be
86	80		satisfied by:
87	81		(1) automobile insurance maintained by the
88	82		transportation network company driver;
89	83		(2) automobile insurance maintained by the
90	84		transportation network company; or
91	85		(3) a combination of Subdivisions (1) and (2).
92	86		(e) Insurance required under this subchapter may be placed
93	87		with an automobile insurer authorized to engage in business in this
94	88		state or with an eligible surplus lines insurer.
95	89		Sec. 1954.052. INSURANCE REQUIREMENTS: BETWEEN PREARRANGED
96	90		RIDES. At the time a transportation network company driver is
97	91		logged on to the transportation network company's digital network
98	92		and is available to receive transportation network requests but is
99	93		not engaged in a prearranged ride, the automobile insurance policy
100	94		must provide:
101	95		(1) the following minimum amounts of liability
102	96		insurance coverage:
103	97		(A) $50,000 for bodily injury to or death for
104	98		each person in an incident;
105	99		(B) $100,000 for bodily injury to or death of a
106	100		person per incident; and
107	101		(C) $25,000 for damage to or destruction of
108	102		property of others in an incident;
109	103		(2) uninsured or underinsured motorist coverage where
110	104		required by Section 1952.101; and
111	105		(3) personal injury protection coverage where
112	106		required by Section 1952.152.
113	107		Sec. 1954.053. INSURANCE REQUIREMENTS: DURING PREARRANGED
114	108		RIDES. At the time a transportation network company driver is
115	109		engaged in a prearranged ride, the automobile insurance policy must
116	110		provide, at a minimum:
117	111		(1) coverage with a total aggregate limit of liability
118	112		of $1 million for death, bodily injury, and property damage for each
119	113		incident;
120	114		(2) uninsured or underinsured motorist coverage where
121	115		required by Section 1952.101; and
122	116		(3) personal injury protection coverage where
123	117		required by Section 1952.152.
124	118		Sec. 1954.054. LAPSE OF OR INSUFFICIENT COVERAGE. If an
125	119		insurance policy maintained by a transportation network company
126	120		driver under this subchapter has lapsed or does not provide the
127	121		coverage required by this subchapter, the transportation network
128	122		company shall provide the coverage required by this subchapter
129	123		beginning with the first dollar of a claim against the driver.
130	124		Sec. 1954.055. RELATION TO PERSONAL AUTOMOBILE INSURANCE.
131	125		Coverage under an automobile insurance policy maintained by the
132	126		transportation network company is not contingent on a
133	127		transportation network company driver's personal automobile
134	128		insurer initially denying a claim.
135	129		Sec. 1954.056. FINANCIAL RESPONSIBILITY. (a) Insurance
136	130		satisfying the requirements of this subchapter satisfies the
137	131		financial responsibility requirement for an automobile under
138	132		Chapter 601, Transportation Code.
139	133		(b) A transportation network company driver shall carry
140	134		proof of insurance that satisfies Sections 1954.052 and 1954.053
141	135		with the driver when the driver uses a vehicle in connection with a
142	136		transportation network company's digital network. In the event of
143	137		an accident, a driver shall provide the proof of insurance to a
144	138		directly interested person, automobile insurer, and investigating
145	139		peace officer on request under Section 601.053, Transportation
146	140		Code. On request, a driver shall also disclose to a directly
147	141		interested person, automobile insurer, and investigating peace
148	142		officer whether, at the time of the accident, the driver was:
149	143		(1) logged on to the company's digital network; or
150	144		(2) engaged in a prearranged ride.
151	145		SUBCHAPTER C. RELATIONSHIP BETWEEN TRANSPORTATION NETWORK COMPANY
152	146		AND TRANSPORTATION NETWORK COMPANY DRIVER
153	147		Sec. 1954.101. REQUIRED DISCLOSURES. Before a
154	148		transportation network company driver may accept a request for a
155	149		prearranged ride on a transportation network company's digital
156	150		network, the company shall disclose in writing the following:
157	151		(1) the insurance policy, including the types of
158	152		coverage and the limits for the policy, that the company provides
159	153		while a driver uses a personal vehicle in connection with the
160	154		company's digital network; and
161	155		(2) that the driver's personal automobile insurance
162	156		policy may not provide coverage, depending on the policy's terms,
163	157		while the driver is logged on to the company's digital network and
164	158		is available to receive transportation requests or is engaged in a
165	159		prearranged ride.
166	160		Sec. 1954.102. CONTROL OF TRANSPORTATION NETWORK COMPANY
167	161		DRIVERS. A transportation network company does not control,
168	162		direct, or manage a personal vehicle or a transportation network
169	163		company driver who connects to the company's digital network except
170	164		as agreed by written contract.
171	165		SUBCHAPTER D. PERSONAL AUTOMOBILE INSURANCE
172	166		Sec. 1954.151. AUTHORIZED EXCLUSIONS FROM COVERAGE. (a)
173	167		An insurer may exclude from coverage under a personal automobile
174	168		insurance policy issued to an owner or operator of a personal
175	169		vehicle any loss or injury that occurs while a transportation
176	170		network company driver using the personal vehicle:
177	171		(1) is logged on to a transportation network company's
178	172		digital network; or
179	173		(2) is engaged in a prearranged ride.
180	174		(b) Subsection (a) applies to any coverage included in a
181	175		personal automobile insurance policy, including:
182	176		(1) liability coverage for bodily injury and property
183	177		damage;
184	178		(2) personal injury protection coverage under
185	179		Subchapter D, Chapter 1952;
186	180		(3) uninsured and underinsured motorist coverage;
187	181		(4) medical payment coverage;
188	182		(5) comprehensive physical damage coverage; and
189	183		(6) collision physical damage coverage.
190	184		(c) An exclusion authorized under this section applies
191	185		notwithstanding a financial responsibility requirement under
192	186		Chapter 601, Transportation Code.
193	187		(d) This subchapter may not be construed to invalidate or
194	188		limit an exclusion contained in a policy form, including a policy
195	189		form in use or approved for use in this state before January 1,
196	190		2016, that excludes coverage for automobiles used to carry persons
197	191		or property for compensation or available for hire by the public.
198	192		Sec. 1954.152. COVERAGE UNDER PERSONAL AUTOMOBILE
199	193		INSURANCE NOT REQUIRED. (a) This subchapter does not require a
200	194		personal automobile insurance policy to cover a transportation
201	195		network company driver while:
202	196		(1) the driver is logged on to a transportation
203	197		network company's digital network;
204	198		(2) the driver is engaged in a prearranged ride; or
205	199		(3) the driver otherwise uses a vehicle to transport
206	200		passengers for compensation.
207	201		(b) This section does not prevent an insurer from providing
208	202		coverage that may be excluded under this section if the insurer
209	203		elects to provide the coverage in the policy or by endorsement.
210	204		Sec. 1954.153. DEFENSE OR INDEMNIFICATION OF CLAIM. (a) An
211	205		automobile insurer that issues a personal automobile insurance
212	206		policy that includes an exclusion from coverage authorized by
213	207		Section 1954.151 does not have a duty to defend or indemnify a claim
214	208		arising from an event subject to the exclusion.
215	209		(b) An automobile insurer that defends or indemnifies a
216	210		claim against a transportation network company driver for which
217	211		coverage is excluded under the terms of the policy as authorized by
218	212		this subchapter has a right of contribution against another insurer
219	213		that provides automobile insurance to the driver in satisfaction of
220	214		the coverage requirements under Section 1954.052 or 1954.053, as
221	215		applicable.
222	216		Sec. 1954.154. ASSISTANCE IN CLAIM INVESTIGATION. In an
223	217		insurance claim investigation, a transportation network company
224	218		and any insurer providing coverage under Subchapter B shall assist
225	219		each insurer involved in the claim by providing information to
226	220		directly interested persons and an insurer of the transportation
227	221		network company driver. Information provided under this section
228	222		must include:
229	223		(1) the precise times that a driver logged on and off
230	224		of the transportation network company's digital network in the
231	225		12-hour period immediately preceding and the 12-hour period
232	226		immediately following the accident; and
233	227		(2) a clear description of the coverage, exclusions,
234	228		and limits provided under an automobile insurance policy maintained
235	229		under Subchapter B.
236	230		Sec. 1954.155. PAYMENT OF CERTAIN CLAIMS. If there is a
237	231		lien on a personal vehicle and the transportation network company's
238	232		insurer covers a claim arising out of an incident that occurred
239	233		during a prearranged ride, the insurer shall issue payment for the
240	234		claim:
241	235		(1) directly to the person who is repairing the
242	236		vehicle; or
243	237		(2) jointly to the owner of the personal vehicle and
244	238		the primary lienholder.
245	239		SECTION 2. This Act takes effect January 1, 2016.
246		-	* * * * *
	240	+	______________________________ ______________________________
	241	+	President of the Senate Speaker of the House
	242	+	I certify that H.B. No. 1733 was passed by the House on May
	243	+	13, 2015, by the following vote: Yeas 136, Nays 7, 3 present, not
	244	+	voting.
	245	+	______________________________
	246	+	Chief Clerk of the House
	247	+	I certify that H.B. No. 1733 was passed by the Senate on May
	248	+	26, 2015, by the following vote: Yeas 30, Nays 1.
	249	+	______________________________
	250	+	Secretary of the Senate
	251	+	APPROVED: _____________________
	252	+	Date
	253	+	_____________________
	254	+	Governor