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Texas House Bill HB2440

Texas 2015 - 84th Regular

Texas House Bill HB2440 Compare Versions

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11 84R22029 JTS-F
22 By: Paddie, Larson, Kuempel, H.B. No. 2440
33 Rodriguez of Bexar, Fletcher, et al.
44 Substitute the following for H.B. No. 2440:
55 By: Pickett C.S.H.B. No. 2440
66
77
88 A BILL TO BE ENTITLED
99 AN ACT
1010 relating to transportation network companies; imposing and
1111 authorizing fees; requiring an occupational permit; authorizing a
1212 civil penalty.
1313 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1414 SECTION 1. Subtitle C, Title 14, Occupations Code, is
1515 amended by adding Chapter 2402 to read as follows:
1616 CHAPTER 2402. TRANSPORTATION NETWORK COMPANIES
1717 SUBCHAPTER A. GENERAL PROVISIONS
1818 Sec. 2402.001. DEFINITIONS. In this chapter:
1919 (1) "Board" means the board of the department.
2020 (2) "Department" means the Texas Department of Motor
2121 Vehicles.
2222 (3) "Digital network" means any online-enabled
2323 application, software, website, or system offered or used by a
2424 transportation network company that enables the prearrangement of a
2525 ride with a transportation network driver.
2626 (4) "Personal vehicle" means a vehicle that is used by
2727 a transportation network driver and is:
2828 (A) owned, leased, or otherwise authorized for
2929 use by the driver; and
3030 (B) not a taxicab, limousine, or similar for-hire
3131 vehicle.
3232 (5) "Transportation network company" means a
3333 corporation, partnership, sole proprietorship, or other entity
3434 operating in this state that uses a digital network to connect a
3535 transportation network rider to transportation network services
3636 provided by a transportation network driver. The term does not
3737 include an entity arranging nonemergency medical transportation
3838 under a contract with the state or a managed care organization for
3939 individuals qualifying for Medicaid or Medicare.
4040 (6) "Transportation network driver" means an
4141 individual who:
4242 (A) receives connections to potential
4343 transportation network riders and related services from a
4444 transportation network company in exchange for payment of a fee to
4545 the company; and
4646 (B) uses a personal vehicle to offer or provide
4747 transportation network services to a transportation network rider
4848 on connection with the rider through a digital network controlled
4949 by the company in exchange for compensation or payment of a fee.
5050 (7) "Transportation network rider" means an
5151 individual who uses a transportation network company's digital
5252 network to connect with a transportation network driver who
5353 provides transportation network services to the individual in the
5454 driver's personal vehicle between points chosen by the individual.
5555 (8) "Transportation network services" means
5656 transportation provided by a transportation network driver to a
5757 transportation network rider, beginning at the time the driver
5858 accepts a ride requested by the rider through a digital network
5959 controlled by a transportation network company, continuing while
6060 the driver transports the rider, and ending at the time the last
6161 requesting rider departs from the driver's personal vehicle. The
6262 term does not include transportation provided using a taxicab,
6363 limousine, or other similar for-hire vehicle authorized to be
6464 licensed under Section 215.004, Local Government Code, or Section
6565 22.081, Transportation Code.
6666 Sec. 2402.002. NATURE OF TRANSPORTATION NETWORK COMPANIES,
6767 DRIVERS, AND VEHICLES. (a) Transportation network companies and
6868 transportation network drivers:
6969 (1) are not common carriers, contract carriers, or
7070 motor carriers; and
7171 (2) do not provide:
7272 (A) taxicab, limousine, or similar for-hire
7373 service; or
7474 (B) street hail service.
7575 (b) A transportation network company:
7676 (1) except as agreed by written contract:
7777 (A) does not control, direct, or manage a
7878 transportation network driver who connects to the company's digital
7979 network; and
8080 (B) does not own, control, operate, or manage
8181 personal vehicles used by transportation network drivers; and
8282 (2) is not a taxicab company or for-hire vehicle
8383 owner.
8484 Sec. 2402.003. CONTROLLING AUTHORITY. (a) Notwithstanding
8585 any other provision of law, transportation network companies and
8686 transportation network drivers are governed exclusively by this
8787 chapter and any rules adopted by the board under this chapter.
8888 Except as provided by Subsection (b) or (c), a municipality or other
8989 local entity may not:
9090 (1) impose a tax on or require a license for a
9191 transportation network company or a transportation network driver;
9292 or
9393 (2) subject a transportation network company or
9494 transportation network driver to the municipality's or other local
9595 entity's rate, entry, operational, or other requirements.
9696 (b) This chapter does not supersede a municipal, county, or
9797 other local government regulation regarding transportation network
9898 services at an airport.
9999 (c) This chapter does not prohibit a municipality from
100100 requiring by ordinance a transportation network company to access
101101 the electronic clearinghouse and subscription service under
102102 Section 411.0845, Government Code, for transportation network
103103 drivers.
104104 Sec. 2402.004. DRIVER AS COMMERCIAL TRANSPORTATION
105105 COMPANY. A transportation network driver is a commercial
106106 transportation company for the purposes of Chapter 660, Government
107107 Code.
108108 SUBCHAPTER B. PERMIT REQUIRED
109109 Sec. 2402.051. PERMIT REQUIRED. (a) A person may not
110110 operate a transportation network company in this state without
111111 obtaining and maintaining a permit issued by the department.
112112 (b) The department shall issue a permit to each applicant
113113 that meets the requirements of this chapter and pays the fee
114114 required by Section 2402.052.
115115 Sec. 2402.052. FEE. (a) A transportation network company
116116 must pay a fee of $115,000 annually to the department to maintain a
117117 permit under this chapter.
118118 (b) A fee collected by the department under this section
119119 shall be deposited to the credit of the Texas Department of Motor
120120 Vehicles fund.
121121 Sec. 2402.053. PERMIT APPLICATION. (a) An application for
122122 a transportation network company permit must be on a form
123123 prescribed by the department. The application must include
124124 information that meets the requirements of this chapter and
125125 information the board by rule determines is necessary to determine
126126 the applicant's qualifications to adequately serve the public.
127127 (b) The applicant shall notify the department of any
128128 material change in the information included in an application not
129129 later than the 10th calendar day after the date the change occurs.
130130 The department shall prescribe a form for the disclosure of
131131 material changes.
132132 Sec. 2402.054. TERM; RENEWAL. (a) A permit issued under
133133 this chapter is valid for two years. The department shall prescribe
134134 the form and requirements necessary to apply for a renewal of a
135135 permit.
136136 (b) The department shall notify each person holding a permit
137137 under this chapter of the date of permit expiration and the amount
138138 of the fee required for permit renewal. The department shall send
139139 the notice not later than the 30th day before the date of the permit
140140 expiration.
141141 SUBCHAPTER C. OPERATION OF TRANSPORTATION NETWORK COMPANIES
142142 Sec. 2402.101. AGENT. A transportation network company
143143 shall maintain an agent for service of process in this state.
144144 Sec. 2402.102. FARES. A transportation network company
145145 charging a fare for its services shall:
146146 (1) disclose to transportation network riders the fare
147147 calculation method within the company's software application
148148 service or on the company's Internet website; and
149149 (2) before a transportation network rider enters the
150150 transportation network driver's personal vehicle, provide the
151151 rider with:
152152 (A) the applicable rates being charged for the
153153 service; and
154154 (B) the option to receive an estimated fare.
155155 Sec. 2402.103. IDENTIFICATION OF VEHICLES AND DRIVERS. The
156156 transportation network company's software application or Internet
157157 website must display, before a transportation network rider enters
158158 the transportation network driver's personal vehicle:
159159 (1) a picture of the transportation network driver;
160160 and
161161 (2) the vehicle's license plate number.
162162 Sec. 2402.104. ELECTRONIC RECEIPT. Within a reasonable
163163 period of time following the completion of a trip, a transportation
164164 network company shall transmit an electronic receipt to the
165165 transportation network rider that lists:
166166 (1) the origin and destination of the trip;
167167 (2) the total time and distance of the trip; and
168168 (3) an itemization of the total fare paid, if any.
169169 Sec. 2402.105. INSURANCE. Insurance requirements for
170170 transportation network companies and transportation network
171171 drivers are governed by Chapter 1954, Insurance Code.
172172 Sec. 2402.106. ZERO-TOLERANCE POLICY FOR DRUG OR ALCOHOL
173173 USE. (a) A transportation network company shall:
174174 (1) implement a zero-tolerance policy that prohibits a
175175 transportation network driver from using or being under the
176176 influence of drugs or alcohol when the driver:
177177 (A) is providing transportation network
178178 services; or
179179 (B) is logged on to the transportation network
180180 company's digital network but is not providing transportation
181181 network services; and
182182 (2) post on its Internet website:
183183 (A) notice of the policy; and
184184 (B) procedures to report a complaint about a
185185 driver with whom a transportation network rider was matched and who
186186 the rider reasonably suspects was using or was under the influence
187187 of drugs or alcohol during the course of the trip.
188188 (b) On receipt of a complaint alleging a violation of the
189189 zero-tolerance policy, the transportation network company shall:
190190 (1) conduct an investigation into the reported
191191 incident; and
192192 (2) immediately suspend the transportation network
193193 driver's access to the company's digital network for the duration of
194194 the investigation.
195195 (c) The transportation network company shall maintain
196196 records relevant to a complaint for a period of at least two years
197197 after the date the complaint is received.
198198 Sec. 2402.107. DRIVER REQUIREMENTS. (a) Before allowing an
199199 individual to act as a transportation network driver on its digital
200200 network, a transportation network company shall:
201201 (1) require the individual to submit an application to
202202 the company, which must include information regarding the
203203 individual's address, age, driver's license, driving history, motor
204204 vehicle registration, motor vehicle liability insurance, and other
205205 information required by the company;
206206 (2) conduct, or have a third party conduct, a local and
207207 national criminal background check for each individual that
208208 includes the use of:
209209 (A) a commercial multistate and
210210 multijurisdiction criminal records locator with primary source
211211 validation; and
212212 (B) the national sex offender registry database
213213 maintained by the United States Department of Justice or successor
214214 agency; and
215215 (3) obtain and review the individual's driving record.
216216 (b) The transportation network company may not permit to act
217217 as a transportation network driver on its digital network an
218218 individual who:
219219 (1) has been convicted of:
220220 (A) more than three offenses classified by the
221221 Department of Public Safety as moving violations in the preceding
222222 three-year period; or
223223 (B) one of the following offenses in the
224224 preceding three-year period:
225225 (i) evading arrest or detention under
226226 Section 38.04, Penal Code;
227227 (ii) reckless driving under Section
228228 545.401, Transportation Code;
229229 (iii) driving without a valid driver's
230230 license under Section 521.025, Transportation Code; or
231231 (iv) driving with an invalid driver's
232232 license under Section 521.457, Transportation Code;
233233 (2) has been convicted, in the preceding seven-year
234234 period, of driving while intoxicated under Section 49.04 or 49.045,
235235 Penal Code;
236236 (3) has been convicted at any time of:
237237 (A) fraud;
238238 (B) a sexual offense;
239239 (C) use of a motor vehicle to commit:
240240 (i) a felony;
241241 (ii) a crime involving property damage;
242242 (iii) theft;
243243 (iv) an act of violence; or
244244 (v) an offense of making a terroristic
245245 threat; or
246246 (D) an offense listed in Section 3g(a)(1),
247247 Article 42.12, Code of Criminal Procedure;
248248 (4) is a match in the national sex offender registry
249249 database;
250250 (5) does not possess a valid driver's license;
251251 (6) does not possess proof of registration or
252252 financial responsibility for the motor vehicle used to provide
253253 transportation network services; or
254254 (7) is younger than 19 years of age.
255255 Sec. 2402.108. VEHICLE SAFETY AND EMISSIONS. A
256256 transportation network company shall require that each motor
257257 vehicle that a transportation network driver will use to provide
258258 transportation network services meets the requirements of Chapter
259259 548, Transportation Code.
260260 Sec. 2402.109. NO STREET HAILS. A transportation network
261261 driver may accept only rides booked through a transportation
262262 network company's digital network or software application service
263263 and may not solicit or accept street hails.
264264 Sec. 2402.110. NO CASH TRIPS. The transportation network
265265 company shall prohibit solicitation or acceptance of cash payments
266266 from transportation network riders and notify transportation
267267 network drivers of the prohibition. A transportation network
268268 driver may not solicit or accept cash payments from riders. Payment
269269 for transportation network services may be made only electronically
270270 using the transportation network company's digital network or
271271 software application.
272272 Sec. 2402.111. NO DISCRIMINATION; ACCESSIBILITY. (a) A
273273 transportation network company shall adopt policies concerning
274274 nondiscrimination that comply with state and federal law.
275275 (b) A transportation network driver shall follow all
276276 policies concerning nondiscrimination and accessibility that
277277 comply with state and federal law.
278278 (c) A transportation network driver shall comply with all
279279 applicable laws relating to accommodation of service animals.
280280 (d) A transportation network company may not impose
281281 additional charges for providing services to persons with physical
282282 disabilities because of those disabilities.
283283 (e) A transportation network company shall provide
284284 transportation network riders an opportunity to indicate whether
285285 they require a wheelchair-accessible vehicle. If a transportation
286286 network company is unable to arrange wheelchair-accessible
287287 transportation network service, the company shall direct the rider
288288 to an alternate provider of wheelchair-accessible service, if
289289 available.
290290 (f) A transportation network driver may not discriminate in
291291 the provision of transportation network services based on the
292292 geographic location of a departure point or destination, except
293293 that a driver may refuse a request for a ride that is farther than 30
294294 miles between the departure point and the destination.
295295 Sec. 2402.112. ACCESSIBLE TRANSPORTATION; SURCHARGE. (a)
296296 The department may impose a fee, not to exceed $10,000 annually, on
297297 transportation network companies, taxicab companies, and limousine
298298 and other for-hire vehicle companies that do not provide
299299 wheelchair-accessible service and remit the fees to the comptroller
300300 for deposit in a trust fund outside the state treasury to be held by
301301 the comptroller and administered by the department to provide
302302 grants to transportation network companies, taxicab companies, and
303303 limousine and other for-hire vehicle companies that provide
304304 wheelchair-accessible service.
305305 (b) A grant distributed under Subsection (a):
306306 (1) may be in an amount not to exceed $15,000; and
307307 (2) may be distributed only to a company that meets a
308308 minimum level of service as determined by board rule.
309309 (c) The department shall implement a program in conjunction
310310 with any transportation network company operating in Austin on
311311 September 1, 2015, that desires to participate to conduct a pilot
312312 project to offer services to persons with disabilities.
313313 (d) Not later than January 1, 2017, the department, in
314314 conjunction with any transportation network company that
315315 participated in the pilot project, shall report to the public and
316316 the legislature on the findings of the program implemented under
317317 Subsection (c) regarding:
318318 (1) the average fares for providing the services;
319319 (2) costs incurred in providing the services;
320320 (3) the average response time for providing the
321321 services; and
322322 (4) other information useful to the legislature in
323323 developing public policy related to transportation network
324324 companies.
325325 Sec. 2402.113. RECORDS. A transportation network company
326326 shall maintain:
327327 (1) individual trip records for at least one year
328328 after the date the trip was provided; and
329329 (2) transportation network driver records at least
330330 until the first anniversary of the date on which a transportation
331331 network driver's activation on the company's digital network has
332332 ended.
333333 Sec. 2402.114. PERSONALLY IDENTIFIABLE INFORMATION. (a) A
334334 transportation network company may not disclose a transportation
335335 network rider's personally identifiable information to a third
336336 party unless:
337337 (1) the rider consents to the disclosure;
338338 (2) disclosure is required by a legal obligation; or
339339 (3) disclosure is required to:
340340 (A) protect or defend the terms of use of the
341341 service; or
342342 (B) investigate violations of those terms.
343343 (b) In addition to the disclosures authorized under
344344 Subsection (a), a transportation network company may share a
345345 transportation network rider's name or telephone number with the
346346 transportation network driver providing transportation network
347347 services to the rider to facilitate correct identification of the
348348 rider by the transportation network driver or to facilitate
349349 communication between the rider and the transportation network
350350 driver.
351351 SUBCHAPTER D. ENFORCEMENT
352352 Sec. 2402.151. RECORD AUDITS. (a) The department may audit
353353 the records of a transportation network company in connection with
354354 the performance of its duties under this chapter through:
355355 (1) investigations of specific alleged violations; or
356356 (2) a random sample of the transportation network
357357 company's records related to transportation network drivers.
358358 (b) A transportation network company whose place of
359359 business is located outside of this state may choose to make records
360360 available at a location outside of this state if:
361361 (1) the company and the department agree on the
362362 location; and
363363 (2) the company agrees to reimburse the department
364364 for:
365365 (A) necessary travel expenses; and
366366 (B) a per diem as set by the state for each day
367367 that an inspection or investigation related to the records is
368368 conducted.
369369 (c) Records maintained by a transportation network company
370370 regarding transportation network driver background checks under
371371 Section 2402.107 or transportation network riders' personally
372372 identifiable information are not subject to release under Chapter
373373 552, Government Code, and the department does not have a right of
374374 access to those records for purposes of that chapter.
375375 (d) Failure to provide records as required by this section
376376 is a violation of this chapter.
377377 Sec. 2402.152. HEARINGS. (a) A hearing arising under this
378378 chapter or a board rule adopted under this chapter must be conducted
379379 in accordance with this chapter, any order, decision, or rule of the
380380 board, and Chapter 2001, Government Code.
381381 (b) A hearing may be informally disposed of in accordance
382382 with Chapter 2001, Government Code.
383383 (c) A hearing under this chapter must be held by an
384384 administrative law judge of the State Office of Administrative
385385 Hearings.
386386 (d) An administrative law judge has all of the board's
387387 authority as provided by this chapter to conduct hearings arising
388388 under this chapter, including the power to:
389389 (1) hold a hearing;
390390 (2) administer an oath;
391391 (3) receive pleadings and evidence;
392392 (4) issue a subpoena to compel the attendance of a
393393 witness;
394394 (5) compel the production of papers and documents;
395395 (6) issue an interlocutory order, including a cease
396396 and desist order in the form of a temporary restraining order or a
397397 temporary injunction;
398398 (7) make findings of fact and conclusions of law; and
399399 (8) issue a proposal for decision and recommend a
400400 final order.
401401 Sec. 2402.153. DISCIPLINARY ACTION; CIVIL PENALTY. (a)
402402 The department, after notice and opportunity for hearing, may deny
403403 an application for a permit or suspend or revoke a permit if the
404404 applicant or permit holder:
405405 (1) makes a material misrepresentation or omission in
406406 any application or other information filed under this chapter or
407407 board rules;
408408 (2) violates this chapter or a board rule or order;
409409 (3) violates any law relating to the operation of a
410410 transportation network company; or
411411 (4) fails to maintain the qualifications for a permit.
412412 (b) A proceeding under this section is subject to Chapter
413413 2001, Government Code.
414414 (c) In addition to the authority under Subsection (a), the
415415 board, after notice and opportunity for hearing, may request that
416416 the attorney general bring an action against a person that has
417417 violated this chapter or board rules to collect a civil penalty in
418418 an amount not to exceed $10,000 for each violation. Each act in
419419 violation of this chapter and board rules and each day a violation
420420 continues is a separate violation. In determining the amount of
421421 the penalty, the board shall consider:
422422 (1) the seriousness of the violation, including the
423423 nature, circumstances, extent, and gravity of any prohibited act,
424424 and the harm or potential harm to the safety of the public;
425425 (2) the economic damage to the public caused by the
426426 violation;
427427 (3) the history of previous violations;
428428 (4) the amount necessary to deter a future violation;
429429 (5) efforts to correct the violation; and
430430 (6) any other matter that justice may require.
431431 (d) Notwithstanding any other law to the contrary, a civil
432432 penalty recovered under this section shall be deposited in the
433433 state treasury to the credit of the Texas Department of Motor
434434 Vehicles fund.
435435 Sec. 2402.154. COMPLAINT PROCEDURE AND NOTICE. (a) A
436436 transportation network company shall establish and maintain a
437437 complaint procedure through which any transportation network rider
438438 or other person using the transportation network service may submit
439439 a complaint with the department about the company, the
440440 transportation network service, a transportation network driver,
441441 or another affiliate of the company.
442442 (b) A transportation network company shall provide notice
443443 of the complaint procedure provided by this section to each
444444 transportation network rider and to each person that contacts the
445445 company to inquire about transportation network services.
446446 (c) A transportation network company shall provide notice
447447 of the complaint procedure under this section on each electronic
448448 receipt required by Section 2402.104.
449449 (d) The department shall approve the content and manner of
450450 delivery of the notice required by Subsections (a), (b), and (c).
451451 (e) Failure to provide notice as required by this section is
452452 a violation of this chapter.
453453 SECTION 2. Subtitle C, Title 10, Insurance Code, is amended
454454 by adding Chapter 1954 to read as follows:
455455 CHAPTER 1954. INSURANCE FOR TRANSPORTATION NETWORK DRIVERS
456456 SUBCHAPTER A. GENERAL PROVISIONS
457457 Sec. 1954.001. DEFINITIONS. In this chapter, the following
458458 terms have the meanings assigned by Section 2402.001, Occupations
459459 Code:
460460 (1) "digital network";
461461 (2) "personal vehicle";
462462 (3) "transportation network company";
463463 (4) "transportation network driver";
464464 (5) "transportation network rider"; and
465465 (6) "transportation network services".
466466 Sec. 1954.002. APPLICABILITY OF CHAPTER. This chapter
467467 applies to automobile insurance policies in this state, including
468468 policies issued by a Lloyd's plan, a reciprocal or interinsurance
469469 exchange, and a county mutual insurance company.
470470 SUBCHAPTER B. INSURANCE REQUIREMENTS
471471 Sec. 1954.051. GENERAL INSURANCE REQUIREMENT. (a) A
472472 transportation network driver or transportation network company on
473473 the driver's behalf shall maintain primary automobile insurance as
474474 required by this subchapter.
475475 (b) Insurance maintained under this subchapter must allow a
476476 transportation network driver to use a personal vehicle to
477477 transport transportation network riders for compensation and cover
478478 the driver while:
479479 (1) the driver is logged on to the transportation
480480 network company's digital network as provided by Section 1954.052;
481481 or
482482 (2) the driver is providing transportation network
483483 services as provided by Section 1954.053.
484484 (c) Insurance maintained under this subchapter must comply
485485 with the law applicable to personal automobile insurance in this
486486 state, including this subtitle and Chapter 601, Transportation
487487 Code.
488488 (d) The coverage requirements of this subchapter may be
489489 satisfied by:
490490 (1) automobile insurance maintained by the
491491 transportation network driver;
492492 (2) automobile insurance maintained by the
493493 transportation network company; or
494494 (3) a combination of Subdivisions (1) and (2).
495495 (e) Insurance required under this subchapter may be placed
496496 with an automobile insurer authorized to engage in business in this
497497 state or with an eligible surplus lines insurer.
498498 Sec. 1954.052. INSURANCE REQUIREMENTS: WHEN NOT PROVIDING
499499 SERVICES. At the time a transportation network driver is logged on
500500 to the transportation network company's digital network and is
501501 available to receive transportation network requests but is not
502502 providing transportation network services, the automobile
503503 insurance policy must provide:
504504 (1) the following minimum amounts of liability
505505 insurance coverage:
506506 (A) $50,000 for bodily injury to or death for
507507 each person in an incident;
508508 (B) $100,000 for bodily injury to or death of a
509509 person per incident; and
510510 (C) $25,000 for damage to or destruction of
511511 property of others in an incident;
512512 (2) uninsured or underinsured motorist coverage where
513513 required by Section 1952.101; and
514514 (3) personal injury protection coverage where
515515 required by Section 1952.152.
516516 Sec. 1954.053. INSURANCE REQUIREMENTS: WHILE PROVIDING
517517 SERVICES. At the time a transportation network driver is providing
518518 transportation network services, the automobile insurance policy
519519 must provide, at minimum:
520520 (1) coverage with a total aggregate limit of liability
521521 of $1 million for death, bodily injury, and property damage for each
522522 incident;
523523 (2) uninsured or underinsured motorist coverage where
524524 required by Section 1952.101; and
525525 (3) personal injury protection coverage where
526526 required by Section 1952.152.
527527 Sec. 1954.054. LAPSE OF OR INSUFFICIENT COVERAGE. If an
528528 insurance policy maintained by a transportation network driver
529529 under this subchapter has lapsed or does not provide the coverage
530530 required by this subchapter, the transportation network company
531531 shall provide the coverage required by this subchapter beginning
532532 with the first dollar of a claim against the driver.
533533 Sec. 1954.055. RELATION TO PERSONAL AUTOMOBILE INSURANCE.
534534 Coverage under an automobile insurance policy maintained by the
535535 transportation network company is not contingent on a
536536 transportation network driver's personal automobile insurer
537537 initially denying a claim.
538538 Sec. 1954.056. FINANCIAL RESPONSIBILITY. (a) Insurance
539539 satisfying the requirements of this subchapter satisfies the
540540 financial responsibility requirement for an automobile under
541541 Chapter 601, Transportation Code.
542542 (b) A transportation network driver shall carry proof of
543543 insurance that satisfies Sections 1954.052 and 1954.053 with the
544544 driver when the driver uses a personal vehicle in connection with a
545545 transportation network company's digital network. In the event of
546546 an accident, a driver shall provide the proof of insurance to a
547547 directly interested person, automobile insurer, and investigating
548548 peace officer on request under Section 601.053, Transportation
549549 Code. On request, a driver shall also disclose to a directly
550550 interested person, automobile insurer, and investigating peace
551551 officer whether, at the time of the accident, the driver was:
552552 (1) logged on to the company's digital network; or
553553 (2) providing transportation network services.
554554 Sec. 1954.057. PAYMENT DIRECTLY TO REPAIRING BUSINESS. If
555555 a transportation network company's insurer makes a payment for a
556556 claim covered under comprehensive or collision coverage, the
557557 transportation network company shall cause its insurer to issue the
558558 payment directly to the business repairing the vehicle or jointly
559559 to the owner of the vehicle and the primary lienholder on the
560560 covered vehicle.
561561 SUBCHAPTER C. REQUIRED DISCLOSURES TO TRANSPORTATION NETWORK
562562 DRIVER
563563 Sec. 1954.101. REQUIRED DISCLOSURES. Before a
564564 transportation network driver may accept a request for
565565 transportation network services on a transportation network
566566 company's digital network, the company shall disclose in writing
567567 the following:
568568 (1) the insurance policy, including the types of
569569 coverage and the limits for the policy, that the company provides
570570 while a driver uses a personal vehicle in connection with the
571571 company's digital network; and
572572 (2) that the driver's personal automobile insurance
573573 policy may not provide coverage, depending on the policy's terms,
574574 while the driver is logged on to the company's digital network and
575575 is available to receive transportation requests or is engaged in
576576 transportation network services.
577577 SUBCHAPTER D. PERSONAL AUTOMOBILE INSURANCE
578578 Sec. 1954.151. AUTHORIZED EXCLUSIONS FROM COVERAGE. (a)
579579 An insurer may exclude from coverage under a personal automobile
580580 insurance policy issued to an owner or operator of a personal
581581 vehicle any loss or injury that occurs while a transportation
582582 network driver using the personal vehicle:
583583 (1) is logged on to a transportation network company's
584584 digital network; or
585585 (2) is providing transportation network services.
586586 (b) Subsection (a) applies to any coverage included in a
587587 personal automobile insurance policy, including:
588588 (1) liability coverage for bodily injury and property
589589 damage;
590590 (2) personal injury protection coverage under
591591 Subchapter D, Chapter 1952;
592592 (3) uninsured and underinsured motorist coverage;
593593 (4) medical payment coverage;
594594 (5) comprehensive physical damage coverage; and
595595 (6) collision physical damage coverage.
596596 (c) An exclusion authorized under this section applies
597597 notwithstanding a financial responsibility requirement under
598598 Chapter 601, Transportation Code.
599599 (d) This subchapter may not be construed to invalidate or
600600 limit an exclusion contained in a policy form, including a policy
601601 form in use or approved for use in this state before September 1,
602602 2015, that excludes coverage for automobiles used to carry persons
603603 or property for compensation or available for hire by the public.
604604 Sec. 1954.152. COVERAGE UNDER PERSONAL AUTOMOBILE
605605 INSURANCE NOT REQUIRED. (a) This subchapter does not require a
606606 personal automobile insurance policy to cover a transportation
607607 network driver while:
608608 (1) the driver is logged on to a transportation
609609 network company's digital network;
610610 (2) the driver is providing transportation network
611611 services; or
612612 (3) the driver otherwise uses a vehicle to transport
613613 passengers for compensation.
614614 (b) This section does not prevent an insurer from providing
615615 coverage that may be excluded under this section if the insurer
616616 elects to provide the coverage in the policy or by endorsement.
617617 Sec. 1954.153. DEFENSE OR INDEMNIFICATION OF CLAIM. (a) An
618618 automobile insurer that issues a personal automobile insurance
619619 policy that includes an exclusion from coverage authorized by
620620 Section 1954.151 does not have a duty to defend or indemnify a claim
621621 arising from an event subject to the exclusion.
622622 (b) An automobile insurer that defends or indemnifies a
623623 claim against a transportation network driver for which coverage is
624624 excluded under the terms of the policy as authorized by this
625625 subchapter has a right of contribution against another insurer that
626626 provides automobile insurance to the driver in satisfaction of the
627627 coverage requirements under Section 1954.052 or 1954.053, as
628628 applicable.
629629 Sec. 1954.154. ASSISTANCE IN CLAIM INVESTIGATION. In an
630630 insurance claim investigation, a transportation network company
631631 and any insurer providing coverage under Subchapter B shall assist
632632 each insurer involved in the claim by providing information to
633633 directly interested persons and an insurer of the transportation
634634 network driver. Information provided under this section must
635635 include:
636636 (1) the precise times that a driver logged on and off
637637 of the transportation network company's digital network in the
638638 12-hour period immediately preceding and the 12-hour period
639639 immediately following the accident; and
640640 (2) a clear description of the coverage, exclusions,
641641 and limits provided under an automobile insurance policy maintained
642642 under Subchapter B.
643643 SECTION 3. This Act takes effect September 1, 2015.