84R5723 JTS-F
By: Paddie H.B. No. 2440
A BILL TO BE ENTITLED
AN ACT
relating to the regulation of transportation network companies;
imposing and authorizing fees; requiring an occupational permit.
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
Sec. 2402.001. DEFINITIONS. In this chapter:
(1) "Department" means the Texas Department of Motor
Vehicles.
(2) "Transportation network company" means an entity
that uses a digital network or software application service to
connect passengers to transportation network services provided by
transportation network drivers.
(3) "Transportation network driver" means an
individual who operates a motor vehicle that is:
(A) owned, leased, or otherwise authorized for
use by the individual; and
(B) used to provide transportation network
services.
(4) "Transportation network services" means
transportation of a passenger between points chosen by the
passenger and prearranged with a transportation network driver
through the use of a transportation network company's digital
network or software application. The term includes services
beginning from the acceptance of a request for transportation
received through the transportation network company's digital
network or software application service and terminating when the
passenger exits the transportation network driver's vehicle.
Sec. 2402.002. NATURE OF TRANSPORTATION NETWORK COMPANIES,
DRIVERS, AND VEHICLES. (a) Transportation network companies and
transportation network drivers are not common carriers, contract
carriers, or motor carriers and do not provide taxicab, for-hire,
or street hail service.
(b) A transportation network company:
(1) does not own, control, operate, or manage vehicles
used by transportation network drivers; and
(2) is not a taxicab company or for-hire vehicle
owner.
Sec. 2402.003. PERMIT REQUIRED; FEE. (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 Subsection (c).
(c) A transportation network company must pay a fee of
$5,000 annually to the department to maintain a permit under this
chapter.
(d) The department may suspend or revoke a permit issued to
a transportation network company that violates a provision of this
chapter.
Sec. 2402.004. AGENT. A transportation network company
shall maintain an agent for service of process in this state.
Sec. 2402.005. FARES. A transportation network company
charging a fare for its services shall:
(1) disclose to passengers the fare calculation method
on the company's Internet website or within the company's software
application service; and
(2) before a passenger enters the transportation
network driver's vehicle, provide the passenger with:
(A) the applicable rates being charged for the
service; and
(B) the option to receive an estimated fare.
Sec. 2402.006. IDENTIFICATION OF VEHICLES AND DRIVERS. The
transportation network company's software application or Internet
website must display, before the passenger enters the
transportation network driver's vehicle:
(1) a picture of the transportation network driver;
and
(2) the vehicle's license plate number.
Sec. 2402.007. 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
passenger 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. 2402.008. INSURANCE. (a) During the time that a
transportation network driver is logged into a transportation
network company's digital network but not providing transportation
network services, financial responsibility for the driver's
vehicle must be established as required under Chapter 601,
Transportation Code, except that the motor vehicle liability
insurance policy must be an owner's or operator's policy that is
issued by:
(1) an insurance company authorized to write motor
vehicle liability insurance in this state; or
(2) a surplus lines insurer under Chapter 981,
Insurance Code.
(b) The requirements of Subsection (a) may be satisfied by a
combination of insurance policies maintained by the transportation
network company or transportation network driver, including a motor
vehicle liability insurance policy that provides coverage in the
event the driver's policy excludes coverage according to its terms.
(c) During the time that a transportation network driver is
providing transportation network services, the transportation
network company must establish financial responsibility for the
driver's vehicle through a motor vehicle liability insurance policy
that:
(1) provides coverage of at least $1 million per
accident for bodily injury and property damage; and
(2) is issued by an insurer described by Subsection
(a).
(d) The requirements of Subsection (c) may be satisfied by a
combination of insurance policies maintained by the transportation
network company or transportation network driver.
(e) A transportation network driver involved in an accident
while providing transportation network services shall:
(1) provide proof that the vehicle involved in the
accident is insured as required by this section at the time of the
accident; and
(2) notify the transportation network company of the
accident.
Sec. 2402.009. 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 into 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 passenger was matched and who the passenger
reasonably suspects was using or was under the influence of drugs or
alcohol during the course of the trip.
(b) On receipt of a passenger 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. 2402.010. 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 person'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 applicant that includes
the use of:
(A) a commercial multistate and
multi-jurisdiction 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 person's driving record.
(b) The transportation network company may not permit to act
as a transportation network driver on its digital network a person
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) fleeing or attempting to elude a police
officer under Section 545.421, Transportation 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; or
(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;
(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. 2402.011. 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. 2402.012. 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. 2402.013. NO CASH TRIPS. The transportation network
company shall prohibit solicitation or acceptance of cash payments
from passengers and notify transportation network drivers of the
prohibition. A transportation network driver may not solicit or
accept cash payments from passengers. Payment for transportation
network services may be made only electronically using the
transportation network company's digital network or software
application.
Sec. 2402.014. NO DISCRIMINATION; ACCESSIBILITY. (a) A
transportation network company shall adopt a policy of
nondiscrimination on the basis of destination, race, color,
national origin, religious belief or affiliation, sex, disability,
age, sexual orientation, or gender identity with respect to
passengers and potential passengers and notify transportation
network drivers of the policy.
(b) A transportation network driver shall comply with all
applicable laws regarding nondiscrimination against passengers or
potential passengers on the basis of destination, race, color,
national origin, religious belief or affiliation, sex, disability,
age, sexual orientation, or gender identity.
(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
passengers 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 passenger to an alternate
provider of wheelchair-accessible service, if available.
Sec. 2402.015. 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 deposit the fees into an account
in the general revenue fund 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 department rule.
Sec. 2402.016. 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. 2402.017. PERSONALLY IDENTIFIABLE INFORMATION. (a) A
transportation network company may not disclose a passenger's
personally identifiable information to a third party unless:
(1) the passenger 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
passenger's name or telephone number with the transportation
network driver providing transportation network services to the
passenger to facilitate correct identification of the passenger by
the transportation network driver or to facilitate communication
between the passenger and the transportation network driver.
Sec. 2402.018. CONTROLLING AUTHORITY. 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 department under this chapter.
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.
SECTION 2. This Act takes effect September 1, 2015.