Texas 2015 84th Regular

Texas House Bill HB2440 House Committee Report / Bill

Filed 02/02/2025

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                    84R22029 JTS-F
 By: Paddie, Larson, Kuempel, H.B. No. 2440
 Rodriguez of Bexar, Fletcher, et al.
 Substitute the following for H.B. No. 2440:
 By:  Pickett C.S.H.B. No. 2440


 A BILL TO BE ENTITLED
 AN ACT
 relating to transportation network companies; imposing and
 authorizing fees; requiring an occupational permit; authorizing a
 civil penalty.
 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 SECTION 1.  Subtitle C, Title 14, Occupations Code, is
 amended by adding Chapter 2402 to read as follows:
 CHAPTER 2402. TRANSPORTATION NETWORK COMPANIES
 SUBCHAPTER A. GENERAL PROVISIONS
 Sec. 2402.001.  DEFINITIONS. In this chapter:
 (1)  "Board" means the board of the department.
 (2)  "Department" means the Texas Department of Motor
 Vehicles.
 (3)  "Digital network" means any online-enabled
 application, software, website, or system offered or used by a
 transportation network company that enables the prearrangement of a
 ride with a transportation network driver.
 (4)  "Personal vehicle" means a vehicle that is used by
 a transportation network driver and is:
 (A)  owned, leased, or otherwise authorized for
 use by the driver; and
 (B)  not a taxicab, limousine, or similar for-hire
 vehicle.
 (5)  "Transportation network company" means a
 corporation, partnership, sole proprietorship, or other entity
 operating in this state that uses a digital network to connect a
 transportation network rider to transportation network services
 provided by a transportation network driver.  The term does not
 include an entity arranging nonemergency medical transportation
 under a contract with the state or a managed care organization for
 individuals qualifying for Medicaid or Medicare.
 (6)  "Transportation network driver" means an
 individual who:
 (A)  receives connections to potential
 transportation network riders and related services from a
 transportation network company in exchange for payment of a fee to
 the company; and
 (B)  uses a personal vehicle to offer or provide
 transportation network services to a transportation network rider
 on connection with the rider through a digital network controlled
 by the company in exchange for compensation or payment of a fee.
 (7)  "Transportation network rider" means an
 individual who uses a transportation network company's digital
 network to connect with a transportation network driver who
 provides transportation network services to the individual in the
 driver's personal vehicle between points chosen by the individual.
 (8)  "Transportation network services" means
 transportation provided by a transportation network driver to a
 transportation network rider, beginning at the time the driver
 accepts a ride requested by the rider through a digital network
 controlled by a transportation network company, continuing while
 the driver transports the rider, and ending at the time the last
 requesting rider departs from the driver's personal vehicle. The
 term does not include transportation provided using a taxicab,
 limousine, or other similar for-hire vehicle authorized to be
 licensed under Section 215.004, Local Government Code, or Section
 22.081, Transportation Code.
 Sec. 2402.002.  NATURE OF TRANSPORTATION NETWORK COMPANIES,
 DRIVERS, AND VEHICLES. (a) Transportation network companies and
 transportation network drivers:
 (1)  are not common carriers, contract carriers, or
 motor carriers; and
 (2)  do not provide:
 (A)  taxicab, limousine, or similar for-hire
 service; or
 (B)  street hail service.
 (b)  A transportation network company:
 (1)  except as agreed by written contract:
 (A)  does not control, direct, or manage a
 transportation network driver who connects to the company's digital
 network; and
 (B)  does not own, control, operate, or manage
 personal vehicles used by transportation network drivers; and
 (2)  is not a taxicab company or for-hire vehicle
 owner.
 Sec. 2402.003.  CONTROLLING AUTHORITY. (a) Notwithstanding
 any other provision of law, transportation network companies and
 transportation network drivers are governed exclusively by this
 chapter and any rules adopted by the board under this chapter.
 Except as provided by Subsection (b) or (c), a municipality or other
 local entity may not:
 (1)  impose a tax on or require a license for a
 transportation network company or a transportation network driver;
 or
 (2)  subject a transportation network company or
 transportation network driver to the municipality's or other local
 entity's rate, entry, operational, or other requirements.
 (b)  This chapter does not supersede a municipal, county, or
 other local government regulation regarding transportation network
 services at an airport.
 (c)  This chapter does not prohibit a municipality from
 requiring by ordinance a transportation network company to access
 the electronic clearinghouse and subscription service under
 Section 411.0845, Government Code, for transportation network
 drivers.
 Sec. 2402.004.  DRIVER AS COMMERCIAL TRANSPORTATION
 COMPANY. A transportation network driver is a commercial
 transportation company for the purposes of Chapter 660, Government
 Code.
 SUBCHAPTER B.  PERMIT REQUIRED
 Sec. 2402.051.  PERMIT REQUIRED. (a) A person may not
 operate a transportation network company in this state without
 obtaining and maintaining a permit issued by the department.
 (b)  The department shall issue a permit to each applicant
 that meets the requirements of this chapter and pays the fee
 required by Section 2402.052.
 Sec. 2402.052.  FEE. (a) A transportation network company
 must pay a fee of $115,000 annually to the department to maintain a
 permit under this chapter.
 (b)  A fee collected by the department under this section
 shall be deposited to the credit of the Texas Department of Motor
 Vehicles fund.
 Sec. 2402.053.  PERMIT APPLICATION. (a) An application for
 a transportation network company permit must be on a form
 prescribed by the department. The application must include
 information that meets the requirements of this chapter and
 information the board by rule determines is necessary to determine
 the applicant's qualifications to adequately serve the public.
 (b)  The applicant shall notify the department of any
 material change in the information included in an application not
 later than the 10th calendar day after the date the change occurs.
 The department shall prescribe a form for the disclosure of
 material changes.
 Sec. 2402.054.  TERM; RENEWAL. (a) A permit issued under
 this chapter is valid for two years. The department shall prescribe
 the form and requirements necessary to apply for a renewal of a
 permit.
 (b)  The department shall notify each person holding a permit
 under this chapter of the date of permit expiration and the amount
 of the fee required for permit renewal. The department shall send
 the notice not later than the 30th day before the date of the permit
 expiration.
 SUBCHAPTER C.  OPERATION OF TRANSPORTATION NETWORK COMPANIES
 Sec. 2402.101.  AGENT. A transportation network company
 shall maintain an agent for service of process in this state.
 Sec. 2402.102.  FARES. A transportation network company
 charging a fare for its services shall:
 (1)  disclose to transportation network riders the fare
 calculation method within the company's software application
 service or on the company's Internet website; and
 (2)  before a transportation network rider enters the
 transportation network driver's personal vehicle, provide the
 rider with:
 (A)  the applicable rates being charged for the
 service; and
 (B)  the option to receive an estimated fare.
 Sec. 2402.103.  IDENTIFICATION OF VEHICLES AND DRIVERS. The
 transportation network company's software application or Internet
 website must display, before a transportation network rider enters
 the transportation network driver's personal vehicle:
 (1)  a picture of the transportation network driver;
 and
 (2)  the vehicle's license plate number.
 Sec. 2402.104.  ELECTRONIC RECEIPT. Within a reasonable
 period of time following the completion of a trip, a transportation
 network company shall transmit an electronic receipt to the
 transportation network rider that lists:
 (1)  the origin and destination of the trip;
 (2)  the total time and distance of the trip; and
 (3)  an itemization of the total fare paid, if any.
 Sec. 2402.105.  INSURANCE. Insurance requirements for
 transportation network companies and transportation network
 drivers are governed by Chapter 1954, Insurance Code.
 Sec. 2402.106.  ZERO-TOLERANCE POLICY FOR DRUG OR ALCOHOL
 USE. (a) A transportation network company shall:
 (1)  implement a zero-tolerance policy that prohibits a
 transportation network driver from using or being under the
 influence of drugs or alcohol when the driver:
 (A)  is providing transportation network
 services; or
 (B)  is logged on to the transportation network
 company's digital network but is not providing transportation
 network services; and
 (2)  post on its Internet website:
 (A)  notice of the policy; and
 (B)  procedures to report a complaint about a
 driver with whom a transportation network rider was matched and who
 the rider reasonably suspects was using or was under the influence
 of drugs or alcohol during the course of the trip.
 (b)  On receipt of a complaint alleging a violation of the
 zero-tolerance policy, the transportation network company shall:
 (1)  conduct an investigation into the reported
 incident; and
 (2)  immediately suspend the transportation network
 driver's access to the company's digital network for the duration of
 the investigation.
 (c)  The transportation network company shall maintain
 records relevant to a complaint for a period of at least two years
 after the date the complaint is received.
 Sec. 2402.107.  DRIVER REQUIREMENTS. (a) Before allowing an
 individual to act as a transportation network driver on its digital
 network, a transportation network company shall:
 (1)  require the individual to submit an application to
 the company, which must include information regarding the
 individual's address, age, driver's license, driving history, motor
 vehicle registration, motor vehicle liability insurance, and other
 information required by the company;
 (2)  conduct, or have a third party conduct, a local and
 national criminal background check for each individual that
 includes the use of:
 (A)  a commercial multistate and
 multijurisdiction criminal records locator with primary source
 validation; and
 (B)  the national sex offender registry database
 maintained by the United States Department of Justice or successor
 agency; and
 (3)  obtain and review the individual's driving record.
 (b)  The transportation network company may not permit to act
 as a transportation network driver on its digital network an
 individual who:
 (1)  has been convicted of:
 (A)  more than three offenses classified by the
 Department of Public Safety as moving violations in the preceding
 three-year period; or
 (B)  one of the following offenses in the
 preceding three-year period:
 (i)  evading arrest or detention under
 Section 38.04, Penal Code;
 (ii)  reckless driving under Section
 545.401, Transportation Code;
 (iii)  driving without a valid driver's
 license under Section 521.025, Transportation Code; or
 (iv)  driving with an invalid driver's
 license under Section 521.457, Transportation Code;
 (2)  has been convicted, in the preceding seven-year
 period, of driving while intoxicated under Section 49.04 or 49.045,
 Penal Code;
 (3)  has been convicted at any time of:
 (A)  fraud;
 (B)  a sexual offense;
 (C)  use of a motor vehicle to commit:
 (i)  a felony;
 (ii)  a crime involving property damage;
 (iii)  theft;
 (iv)  an act of violence; or
 (v)  an offense of making a terroristic
 threat; or
 (D)  an offense listed in Section 3g(a)(1),
 Article 42.12, Code of Criminal Procedure;
 (4)  is a match in the national sex offender registry
 database;
 (5)  does not possess a valid driver's license;
 (6)  does not possess proof of registration or
 financial responsibility for the motor vehicle used to provide
 transportation network services; or
 (7)  is younger than 19 years of age.
 Sec. 2402.108.  VEHICLE SAFETY AND EMISSIONS. A
 transportation network company shall require that each motor
 vehicle that a transportation network driver will use to provide
 transportation network services meets the requirements of Chapter
 548, Transportation Code.
 Sec. 2402.109.  NO STREET HAILS. A transportation network
 driver may accept only rides booked through a transportation
 network company's digital network or software application service
 and may not solicit or accept street hails.
 Sec. 2402.110.  NO CASH TRIPS. The transportation network
 company shall prohibit solicitation or acceptance of cash payments
 from transportation network riders and notify transportation
 network drivers of the prohibition. A transportation network
 driver may not solicit or accept cash payments from riders.  Payment
 for transportation network services may be made only electronically
 using the transportation network company's digital network or
 software application.
 Sec. 2402.111.  NO DISCRIMINATION; ACCESSIBILITY. (a) A
 transportation network company shall adopt policies concerning
 nondiscrimination that comply with state and federal law.
 (b)  A transportation network driver shall follow all
 policies concerning nondiscrimination and accessibility that
 comply with state and federal law.
 (c)  A transportation network driver shall comply with all
 applicable laws relating to accommodation of service animals.
 (d)  A transportation network company may not impose
 additional charges for providing services to persons with physical
 disabilities because of those disabilities.
 (e)  A transportation network company shall provide
 transportation network riders an opportunity to indicate whether
 they require a wheelchair-accessible vehicle. If a transportation
 network company is unable to arrange wheelchair-accessible
 transportation network service, the company shall direct the rider
 to an alternate provider of wheelchair-accessible service, if
 available.
 (f)  A transportation network driver may not discriminate in
 the provision of transportation network services based on the
 geographic location of a departure point or destination, except
 that a driver may refuse a request for a ride that is farther than 30
 miles between the departure point and the destination.
 Sec. 2402.112.  ACCESSIBLE TRANSPORTATION; SURCHARGE. (a)
 The department may impose a fee, not to exceed $10,000 annually, on
 transportation network companies, taxicab companies, and limousine
 and other for-hire vehicle companies that do not provide
 wheelchair-accessible service and remit the fees to the comptroller
 for deposit in a trust fund outside the state treasury to be held by
 the comptroller and administered by the department to provide
 grants to transportation network companies, taxicab companies, and
 limousine and other for-hire vehicle companies that provide
 wheelchair-accessible service.
 (b)  A grant distributed under Subsection (a):
 (1)  may be in an amount not to exceed $15,000; and
 (2)  may be distributed only to a company that meets a
 minimum level of service as determined by board rule.
 (c)  The department shall implement a program in conjunction
 with any transportation network company operating in Austin on
 September 1, 2015, that desires to participate to conduct a pilot
 project to offer services to persons with disabilities.
 (d)  Not later than January 1, 2017, the department, in
 conjunction with any transportation network company that
 participated in the pilot project, shall report to the public and
 the legislature on the findings of the program implemented under
 Subsection (c) regarding:
 (1)  the average fares for providing the services;
 (2)  costs incurred in providing the services;
 (3)  the average response time for providing the
 services; and
 (4)  other information useful to the legislature in
 developing public policy related to transportation network
 companies.
 Sec. 2402.113.  RECORDS. A transportation network company
 shall maintain:
 (1)  individual trip records for at least one year
 after the date the trip was provided; and
 (2)  transportation network driver records at least
 until the first anniversary of the date on which a transportation
 network driver's activation on the company's digital network has
 ended.
 Sec. 2402.114.  PERSONALLY IDENTIFIABLE INFORMATION. (a) A
 transportation network company may not disclose a transportation
 network rider's personally identifiable information to a third
 party unless:
 (1)  the rider consents to the disclosure;
 (2)  disclosure is required by a legal obligation; or
 (3)  disclosure is required to:
 (A)  protect or defend the terms of use of the
 service; or
 (B)  investigate violations of those terms.
 (b)  In addition to the disclosures authorized under
 Subsection (a), a transportation network company may share a
 transportation network rider's name or telephone number with the
 transportation network driver providing transportation network
 services to the rider to facilitate correct identification of the
 rider by the transportation network driver or to facilitate
 communication between the rider and the transportation network
 driver.
 SUBCHAPTER D. ENFORCEMENT
 Sec. 2402.151.  RECORD AUDITS. (a) The department may audit
 the records of a transportation network company in connection with
 the performance of its duties under this chapter through:
 (1)  investigations of specific alleged violations; or
 (2)  a random sample of the transportation network
 company's records related to transportation network drivers.
 (b)  A transportation network company whose place of
 business is located outside of this state may choose to make records
 available at a location outside of this state if:
 (1)  the company and the department agree on the
 location; and
 (2)  the company agrees to reimburse the department
 for:
 (A)  necessary travel expenses; and
 (B)  a per diem as set by the state for each day
 that an inspection or investigation related to the records is
 conducted.
 (c)  Records maintained by a transportation network company
 regarding transportation network driver background checks under
 Section 2402.107 or transportation network riders' personally
 identifiable information are not subject to release under Chapter
 552, Government Code, and the department does not have a right of
 access to those records for purposes of that chapter.
 (d)  Failure to provide records as required by this section
 is a violation of this chapter.
 Sec. 2402.152.  HEARINGS. (a) A hearing arising under this
 chapter or a board rule adopted under this chapter must be conducted
 in accordance with this chapter, any order, decision, or rule of the
 board, and Chapter 2001, Government Code.
 (b)  A hearing may be informally disposed of in accordance
 with Chapter 2001, Government Code.
 (c)  A hearing under this chapter must be held by an
 administrative law judge of the State Office of Administrative
 Hearings.
 (d)  An administrative law judge has all of the board's
 authority as provided by this chapter to conduct hearings arising
 under this chapter, including the power to:
 (1)  hold a hearing;
 (2)  administer an oath;
 (3)  receive pleadings and evidence;
 (4)  issue a subpoena to compel the attendance of a
 witness;
 (5)  compel the production of papers and documents;
 (6)  issue an interlocutory order, including a cease
 and desist order in the form of a temporary restraining order or a
 temporary injunction;
 (7)  make findings of fact and conclusions of law; and
 (8)  issue a proposal for decision and recommend a
 final order.
 Sec. 2402.153.  DISCIPLINARY ACTION; CIVIL PENALTY. (a)
 The department, after notice and opportunity for hearing, may deny
 an application for a permit or suspend or revoke a permit if the
 applicant or permit holder:
 (1)  makes a material misrepresentation or omission in
 any application or other information filed under this chapter or
 board rules;
 (2)  violates this chapter or a board rule or order;
 (3)  violates any law relating to the operation of a
 transportation network company; or
 (4)  fails to maintain the qualifications for a permit.
 (b)  A proceeding under this section is subject to Chapter
 2001, Government Code.
 (c)  In addition to the authority under Subsection (a), the
 board, after notice and opportunity for hearing, may request that
 the attorney general bring an action against a person that has
 violated this chapter or board rules to collect a civil penalty in
 an amount not to exceed $10,000 for each violation. Each act in
 violation of this chapter and board rules and each day a violation
 continues is a separate violation. In determining the amount of
 the penalty, the board shall consider:
 (1)  the seriousness of the violation, including the
 nature, circumstances, extent, and gravity of any prohibited act,
 and the harm or potential harm to the safety of the public;
 (2)  the economic damage to the public caused by the
 violation;
 (3)  the history of previous violations;
 (4)  the amount necessary to deter a future violation;
 (5)  efforts to correct the violation; and
 (6)  any other matter that justice may require.
 (d)  Notwithstanding any other law to the contrary, a civil
 penalty recovered under this section shall be deposited in the
 state treasury to the credit of the Texas Department of Motor
 Vehicles fund.
 Sec. 2402.154.  COMPLAINT PROCEDURE AND NOTICE. (a) A
 transportation network company shall establish and maintain a
 complaint procedure through which any transportation network rider
 or other person using the transportation network service may submit
 a complaint with the department about the company, the
 transportation network service, a transportation network driver,
 or another affiliate of the company.
 (b)  A transportation network company shall provide notice
 of the complaint procedure provided by this section to each
 transportation network rider and to each person that contacts the
 company to inquire about transportation network services.
 (c)  A transportation network company shall provide notice
 of the complaint procedure under this section on each electronic
 receipt required by Section 2402.104.
 (d)  The department shall approve the content and manner of
 delivery of the notice required by Subsections (a), (b), and (c).
 (e)  Failure to provide notice as required by this section is
 a violation of this chapter.
 SECTION 2.  Subtitle C, Title 10, Insurance Code, is amended
 by adding Chapter 1954 to read as follows:
 CHAPTER 1954. INSURANCE FOR TRANSPORTATION NETWORK DRIVERS
 SUBCHAPTER A. GENERAL PROVISIONS
 Sec. 1954.001.  DEFINITIONS. In this chapter, the following
 terms have the meanings assigned by Section 2402.001, Occupations
 Code:
 (1)  "digital network";
 (2)  "personal vehicle";
 (3)  "transportation network company";
 (4)  "transportation network driver";
 (5)  "transportation network rider"; and
 (6)  "transportation network services".
 Sec. 1954.002.  APPLICABILITY OF CHAPTER. This chapter
 applies to automobile insurance policies in this state, including
 policies issued by a Lloyd's plan, a reciprocal or interinsurance
 exchange, and a county mutual insurance company.
 SUBCHAPTER B. INSURANCE REQUIREMENTS
 Sec. 1954.051.  GENERAL INSURANCE REQUIREMENT. (a) A
 transportation network driver or transportation network company on
 the driver's behalf shall maintain primary automobile insurance as
 required by this subchapter.
 (b)  Insurance maintained under this subchapter must allow a
 transportation network driver to use a personal vehicle to
 transport transportation network riders for compensation and cover
 the driver while:
 (1)  the driver is logged on to the transportation
 network company's digital network as provided by Section 1954.052;
 or
 (2)  the driver is providing transportation network
 services as provided by Section 1954.053.
 (c)  Insurance maintained under this subchapter must comply
 with the law applicable to personal automobile insurance in this
 state, including this subtitle and Chapter 601, Transportation
 Code.
 (d)  The coverage requirements of this subchapter may be
 satisfied by:
 (1)  automobile insurance maintained by the
 transportation network driver;
 (2)  automobile insurance maintained by the
 transportation network company; or
 (3)  a combination of Subdivisions (1) and (2).
 (e)  Insurance required under this subchapter may be placed
 with an automobile insurer authorized to engage in business in this
 state or with an eligible surplus lines insurer.
 Sec. 1954.052.  INSURANCE REQUIREMENTS:  WHEN NOT PROVIDING
 SERVICES. At the time a transportation network driver is logged on
 to the transportation network company's digital network and is
 available to receive transportation network requests but is not
 providing transportation network services, the automobile
 insurance policy must provide:
 (1)  the following minimum amounts of liability
 insurance coverage:
 (A)  $50,000 for bodily injury to or death for
 each person in an incident;
 (B)  $100,000 for bodily injury to or death of a
 person per incident; and
 (C)  $25,000 for damage to or destruction of
 property of others in an incident;
 (2)  uninsured or underinsured motorist coverage where
 required by Section 1952.101; and
 (3)  personal injury protection coverage where
 required by Section 1952.152.
 Sec. 1954.053.  INSURANCE REQUIREMENTS:  WHILE PROVIDING
 SERVICES. At the time a transportation network driver is providing
 transportation network services, the automobile insurance policy
 must provide, at minimum:
 (1)  coverage with a total aggregate limit of liability
 of $1 million for death, bodily injury, and property damage for each
 incident;
 (2)  uninsured or underinsured motorist coverage where
 required by Section 1952.101; and
 (3)  personal injury protection coverage where
 required by Section 1952.152.
 Sec. 1954.054.  LAPSE OF OR INSUFFICIENT COVERAGE. If an
 insurance policy maintained by a transportation network driver
 under this subchapter has lapsed or does not provide the coverage
 required by this subchapter, the transportation network company
 shall provide the coverage required by this subchapter beginning
 with the first dollar of a claim against the driver.
 Sec. 1954.055.  RELATION TO PERSONAL AUTOMOBILE INSURANCE.
 Coverage under an automobile insurance policy maintained by the
 transportation network company is not contingent on a
 transportation network driver's personal automobile insurer
 initially denying a claim.
 Sec. 1954.056.  FINANCIAL RESPONSIBILITY. (a) Insurance
 satisfying the requirements of this subchapter satisfies the
 financial responsibility requirement for an automobile under
 Chapter 601, Transportation Code.
 (b)  A transportation network driver shall carry proof of
 insurance that satisfies Sections 1954.052 and 1954.053 with the
 driver when the driver uses a personal vehicle in connection with a
 transportation network company's digital network. In the event of
 an accident, a driver shall provide the proof of insurance to a
 directly interested person, automobile insurer, and investigating
 peace officer on request under Section 601.053, Transportation
 Code. On request, a driver shall also disclose to a directly
 interested person, automobile insurer, and investigating peace
 officer whether, at the time of the accident, the driver was:
 (1)  logged on to the company's digital network; or
 (2)  providing transportation network services.
 Sec. 1954.057.  PAYMENT DIRECTLY TO REPAIRING BUSINESS.  If
 a transportation network company's insurer makes a payment for a
 claim covered under comprehensive or collision coverage, the
 transportation network company shall cause its insurer to issue the
 payment directly to the business repairing the vehicle or jointly
 to the owner of the vehicle and the primary lienholder on the
 covered vehicle.
 SUBCHAPTER C. REQUIRED DISCLOSURES TO TRANSPORTATION NETWORK
 DRIVER
 Sec. 1954.101.  REQUIRED DISCLOSURES. Before a
 transportation network driver may accept a request for
 transportation network services on a transportation network
 company's digital network, the company shall disclose in writing
 the following:
 (1)  the insurance policy, including the types of
 coverage and the limits for the policy, that the company provides
 while a driver uses a personal vehicle in connection with the
 company's digital network; and
 (2)  that the driver's personal automobile insurance
 policy may not provide coverage, depending on the policy's terms,
 while the driver is logged on to the company's digital network and
 is available to receive transportation requests or is engaged in
 transportation network services.
 SUBCHAPTER D. PERSONAL AUTOMOBILE INSURANCE
 Sec. 1954.151.  AUTHORIZED EXCLUSIONS FROM COVERAGE. (a)
 An insurer may exclude from coverage under a personal automobile
 insurance policy issued to an owner or operator of a personal
 vehicle any loss or injury that occurs while a transportation
 network driver using the personal vehicle:
 (1)  is logged on to a transportation network company's
 digital network; or
 (2)  is providing transportation network services.
 (b)  Subsection (a) applies to any coverage included in a
 personal automobile insurance policy, including:
 (1)  liability coverage for bodily injury and property
 damage;
 (2)  personal injury protection coverage under
 Subchapter D, Chapter 1952;
 (3)  uninsured and underinsured motorist coverage;
 (4)  medical payment coverage;
 (5)  comprehensive physical damage coverage; and
 (6)  collision physical damage coverage.
 (c)  An exclusion authorized under this section applies
 notwithstanding a financial responsibility requirement under
 Chapter 601, Transportation Code.
 (d)  This subchapter may not be construed to invalidate or
 limit an exclusion contained in a policy form, including a policy
 form in use or approved for use in this state before September 1,
 2015, that excludes coverage for automobiles used to carry persons
 or property for compensation or available for hire by the public.
 Sec. 1954.152.  COVERAGE UNDER PERSONAL AUTOMOBILE
 INSURANCE NOT REQUIRED.  (a)  This subchapter does not require a
 personal automobile insurance policy to cover a transportation
 network driver while:
 (1)  the driver is logged on to a transportation
 network company's digital network;
 (2)  the driver is providing transportation network
 services; or
 (3)  the driver otherwise uses a vehicle to transport
 passengers for compensation.
 (b)  This section does not prevent an insurer from providing
 coverage that may be excluded under this section if the insurer
 elects to provide the coverage in the policy or by endorsement.
 Sec. 1954.153.  DEFENSE OR INDEMNIFICATION OF CLAIM. (a) An
 automobile insurer that issues a personal automobile insurance
 policy that includes an exclusion from coverage authorized by
 Section 1954.151 does not have a duty to defend or indemnify a claim
 arising from an event subject to the exclusion.
 (b)  An automobile insurer that defends or indemnifies a
 claim against a transportation network driver for which coverage is
 excluded under the terms of the policy as authorized by this
 subchapter has a right of contribution against another insurer that
 provides automobile insurance to the driver in satisfaction of the
 coverage requirements under Section 1954.052 or 1954.053, as
 applicable.
 Sec. 1954.154.  ASSISTANCE IN CLAIM INVESTIGATION. In an
 insurance claim investigation, a transportation network company
 and any insurer providing coverage under Subchapter B shall assist
 each insurer involved in the claim by providing information to
 directly interested persons and an insurer of the transportation
 network driver. Information provided under this section must
 include:
 (1)  the precise times that a driver logged on and off
 of the transportation network company's digital network in the
 12-hour period immediately preceding and the 12-hour period
 immediately following the accident; and
 (2)  a clear description of the coverage, exclusions,
 and limits provided under an automobile insurance policy maintained
 under Subchapter B.
 SECTION 3.  This Act takes effect September 1, 2015.