By: Paddie, Thompson of Harris, Nevárez, H.B. No. 100
Kuempel, Morrison, et al.
A BILL TO BE ENTITLED
AN ACT
relating to the regulation of transportation network companies;
requiring an occupational permit; authorizing a fee.
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) "Department" means the Texas Department of
Licensing and Regulation.
(2) "Digital network" means any online-enabled
application, website, or system offered or used by a transportation
network company that enables the prearrangement of rides between
passengers and drivers.
(3) "Digitally prearranged ride" means a ride in a
personal vehicle between points chosen by the passenger that is
prearranged through a digital network.
(4) "Personal vehicle" means a vehicle that:
(A) is owned, leased, or otherwise authorized for
use by a driver; and
(B) is not a taxicab, limousine, or other vehicle
regulated by a municipality under Section 215.004, Local Government
Code, or a joint airport board under Section 22.081, Transportation
Code.
(5) "Transportation network company" means a
corporation, partnership, sole proprietorship, or other entity
that, for compensation, enables a passenger to prearrange with a
driver, exclusively through the entity's digital network, a
digitally prearranged ride. The term does not include an entity
that provides:
(A) street-hail taxicab services;
(B) limousine or other car services arranged by a
method other than through a digital network;
(C) shared expense carpool or vanpool
arrangements; or
(D) a type of ride service for which:
(i) the fee received by the driver does not
exceed the driver's costs of providing the ride; or
(ii) the driver receives a fee that exceeds
the driver's costs associated with providing the ride but makes not
more than three round-trips per day between the driver's or
passenger's place of employment and the driver's or passenger's
home.
Sec. 2402.002. NATURE OF TRANSPORTATION NETWORK COMPANIES,
DRIVERS, AND VEHICLES. Transportation network companies and
drivers logged in to the company's digital network are not common
carriers, contract carriers, or motor carriers.
Sec. 2402.003. CONTROLLING AUTHORITY. (a) Notwithstanding
any other provision of law, and except as provided by Subsections
(b) and (c), the regulation of transportation network companies,
drivers logged in to a digital network, and vehicles used to provide
digitally prearranged rides:
(1) is an exclusive power and function of this state;
and
(2) may not be regulated by a municipality or other
local entity, including by:
(A) imposing a tax;
(B) requiring an additional license or permit;
(C) setting rates;
(D) imposing operational or entry requirements;
or
(E) imposing other requirements.
(b) An airport owner or operator may impose regulations,
including a reasonable fee, on a transportation network company
that provides digitally prearranged rides to or from the airport.
(c) The governing body of a governmental entity with
jurisdiction over a cruise ship terminal may impose regulations,
including a reasonable fee, on a transportation network company
that provides digitally prearranged rides to or from the terminal.
(d) Regulations under Subsections (b) and (c) may not:
(1) conflict with the requirements of this chapter; or
(2) include requirements for drivers in addition to
those under Section 2402.107.
(e) This chapter does not affect the ability of a local
authority, as defined by Section 541.002, Transportation Code, to:
(1) take an action described by Section 542.202,
Transportation Code, or otherwise authorized by Subtitle C, Title
7, Transportation Code, that allows the local authority to adopt
traffic rules in the jurisdiction of the authority if the rules are
applied to transportation network company vehicles and drivers in
the same manner as non-transportation network company vehicles and
drivers; or
(2) enforce a provision of Subtitle C, Title 7,
Transportation Code, or any other state law relating to the
operation of traffic on public roads.
Sec. 2402.004. PROVISIONS APPLICABLE TO DRIVERS LOGGED IN
TO DIGITAL NETWORK. A provision of this chapter that applies to a
driver logged in to a digital network applies while the driver is
logged in to receive requests for digitally prearranged rides and
while the driver is logged in and providing a digitally prearranged
ride.
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 under this chapter.
(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
shall annually pay to the department a fee to maintain a permit
under this chapter in an amount determined by department rule to
cover the costs of administering this chapter.
(b) The department may not impose a fee for:
(1) drivers authorized to use a transportation network
company's digital network; or
(2) vehicles used to provide digitally prearranged
rides.
SUBCHAPTER C. OPERATION OF TRANSPORTATION NETWORK COMPANIES
Sec. 2402.101. INSURANCE REQUIRED. The requirements of
Chapter 1954, Insurance Code, apply to transportation network
companies and drivers logged in to a digital network.
Sec. 2402.102. SHARED RIDES. A digitally prearranged ride
may be wholly or partly shared by multiple passengers if the
passengers consent to sharing the ride.
Sec. 2402.103. FARES. A transportation network company
that charges a fare for a digitally prearranged ride shall:
(1) disclose to passengers the fare calculation method
on the digital network; and
(2) before the passenger enters the vehicle for the
ride, provide through the digital network to the passenger
requesting the ride:
(A) the applicable rates being charged; and
(B) the option to receive an estimated fare.
Sec. 2402.104. DIGITAL NETWORK IDENTIFICATION OF DRIVERS
AND VEHICLES TO PASSENGERS. A transportation network company
shall, before a passenger enters a vehicle for a digitally
prearranged ride, provide through the company's digital network to
the passenger requesting the ride:
(1) the driver's first name and picture; and
(2) the make, model, and license plate number of the
driver's vehicle.
Sec. 2402.105. ELECTRONIC RECEIPT. Within a reasonable
time following the completion of a digitally prearranged ride, the
transportation network company whose digital network was used to
prearrange the ride shall transmit, through electronic mail or text
message, a receipt to the passenger who requested the ride that
includes:
(1) the origin and destination of the ride;
(2) the total time and distance of the ride; and
(3) an itemization of the total fare paid, if any.
Sec. 2402.106. INTOXICATING SUBSTANCE POLICY. (a) A
transportation network company shall implement an intoxicating
substance policy that prohibits a driver who is logged in to the
company's digital network from any amount of intoxication.
(b) A transportation network company shall include on its
Internet website:
(1) a notice concerning the company's intoxicating
substance policy; and
(2) the means to make a complaint about a suspected
violation of the policy.
(c) On receipt of a passenger complaint alleging a violation
of the intoxicating substance policy, a transportation network
company shall:
(1) conduct an investigation into the reported
incident; and
(2) immediately suspend the driver's access to the
company's digital network for the duration of the investigation.
(d) A 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 permitting
an individual to log in as a driver on the company's digital
network, a transportation network company must:
(1) confirm that the individual:
(A) is at least 18 years of age;
(B) maintains a valid driver's license issued by
this state, another state, or the District of Columbia; and
(C) possesses proof of registration and
automobile financial responsibility for each motor vehicle to be
used to provide digitally prearranged rides;
(2) conduct, or cause to be conducted, a local, state,
and national criminal background check for the individual that
includes the use of:
(A) a commercial multistate and
multijurisdiction criminal records locator or other similar
commercial nationwide database; and
(B) the national sex offender public website
maintained by the United States Department of Justice or a
successor agency; and
(3) obtain and review the individual's driving record.
(b) A transportation network company may not permit an
individual to log in as a driver on the company's digital network if
the individual:
(1) has been convicted in the three-year period
preceding the issue date of the driving record obtained under
Subsection (a)(3) of:
(A) more than three offenses classified by the
Department of Public Safety as moving violations; or
(B) one or more of the following offenses:
(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 any of the following:
(A) driving while intoxicated under Section
49.04 or 49.045, Penal Code;
(B) use of a motor vehicle to commit a felony;
(C) a felony crime involving property damage;
(D) fraud;
(E) theft;
(F) an act of violence; or
(G) an act of terrorism; or
(3) is found to be registered in the national sex
offender public website maintained by the United States Department
of Justice or a successor agency.
(c) A transportation network company shall conduct or cause
to be conducted an annual criminal background check described by
Subsection (a)(2) for each driver authorized to access the
company's digital network.
Sec. 2402.108. DIGITALLY PREARRANGED RIDES ONLY. A driver
who is logged in to a digital network may not solicit or provide a
ride for compensation unless the passenger has been matched to the
driver through the digital network.
Sec. 2402.109. PASSENGER ACTING IN UNLAWFUL, DISORDERLY, OR
ENDANGERING MANNER. A driver who has accepted a digitally
prearranged ride may refuse to transport a passenger acting in an
unlawful, disorderly, or endangering manner.
Sec. 2402.110. DISPLAY OF DIGITAL IDENTIFICATION. (a) In
this section, "digital identification" means information stored on
a digital network that may be accessed by a driver and that:
(1) serves as proof of the identity of the driver;
(2) serves as proof that the insurance coverage
requirements of Chapter 1954, Insurance Code, are satisfied;
(3) displays a photo of the driver;
(4) displays an image of the driver's vehicle; and
(5) identifies the make, model, and license plate
number of the vehicle used by the driver.
(b) On request of a law enforcement officer or a government
official enforcing or administering this chapter, a driver
providing a digitally prearranged ride shall:
(1) display the driver's digital identification; and
(2) display electronic proof that the ride was matched
through the digital network.
(c) This section does not require a driver to relinquish
possession of the electronic device containing the digital
identification.
Sec. 2402.111. VEHICLE REQUIREMENTS. (a) A transportation
network company shall, for each motor vehicle used by a driver to
provide digitally prearranged rides through the company's digital
network:
(1) require the vehicle to meet the requirements of
Chapter 548, Transportation Code; and
(2) confirm that the vehicle has:
(A) four doors; and
(B) a maximum passenger capacity of not more than
eight people, including the driver.
(b) A vehicle used to provide digitally prearranged rides
may be owned, leased, or rented by, or otherwise made available to,
the driver.
(c) Section 547.607, Transportation Code, does not apply to
a personal vehicle used to provide digitally prearranged rides.
Sec. 2402.112. NONDISCRIMINATION; ACCESSIBILITY. (a) A
transportation network company shall adopt a policy that prohibits
a driver logged in to the company's digital network from:
(1) discriminating on the basis of a passenger's or
potential passenger's location or destination, race, color,
national origin, religious belief or affiliation, sex, disability,
or age; and
(2) refusing to provide service to a potential
passenger with a service animal.
(b) For the purposes of Subsection (a), "sex" means the
physical condition of being male or female.
(c) A transportation network company shall notify each
person authorized to log in as a driver on the company's digital
network of the nondiscrimination policy. A driver logged in to the
company's digital network shall comply with the nondiscrimination
policy.
(d) A transportation network company may not impose an
additional charge for transportation of individuals with physical
disabilities because of those disabilities.
(e) A transportation network company shall provide a
passenger an opportunity to indicate whether the passenger requires
a wheelchair-accessible vehicle. If a wheelchair-accessible
vehicle cannot be provided, the company shall direct the requesting
passenger to an alternate provider of wheelchair-accessible
service, if available.
Sec. 2402.113. ACCESSIBILITY PILOT PROGRAM. (a) Each
transportation network company shall conduct, for a period of two
years beginning not later than the 90th day after the date the
company is issued a permit under Section 2402.051, an accessibility
pilot program in one of the four largest markets in which the
company operates in this state to:
(1) offer their services to disabled persons,
including disabled persons using a fixed-frame wheelchair; and
(2) ensure that, if necessary, referrals to alternate
providers of wheelchair-accessible service are made in a manner
that does not unreasonably delay the provision of service.
(a-1) Notwithstanding Subsection (a), a transportation
network company that is issued a permit under Section 2402.051 on or
before January 1, 2018, shall begin the pilot program under
Subsection (a) not later than that date. This subsection expires
January 1, 2020.
(b) Not later than the 100th day after the date a
transportation network company begins a pilot program under
Subsection (a), the company shall submit to the department a report
demonstrating the company's compliance with Subsection (a).
(c) A transportation network company shall provide a report
on the findings of the company's pilot program to each legislative
standing committee with primary jurisdiction over transportation
not later than the 75th day after the date the program ends. At a
minimum, the report must include information regarding:
(1) the number of vehicles equipped to accommodate a
passenger with a fixed-frame wheelchair that were available through
the company's digital network in the market in which the pilot
program was conducted at the time the program ended;
(2) the average time elapsed between the time a
fixed-frame wheelchair-bound passenger requested a ride and the
time the ride began;
(3) the number of rides provided to fixed-frame
wheelchair-bound passengers during the duration of the program; and
(4) the number of instances in which the company
referred a fixed-frame wheelchair-bound passenger to another
provider because the passenger could not be accommodated by the
company.
(d) The department:
(1) shall:
(A) by rule establish requirements for a report
under Subsection (b); and
(B) provide the transportation network company
with notice of those requirements at the time the department issues
the company's permit; and
(2) may revoke the company's permit for failure to
timely submit a report required under this section.
Sec. 2402.114. DRIVERS AS INDEPENDENT CONTRACTORS. A
driver who is authorized to log in to a transportation network
company's digital network is considered an independent contractor
for all purposes, and not an employee of the company in any manner,
if:
(1) the company does not:
(A) prescribe the specific hours during which the
driver is required to be logged in to the company's digital network;
(B) impose restrictions on the driver's ability
to use other transportation network companies' digital networks;
(C) limit the territory within which the driver
may provide digitally prearranged rides; or
(D) restrict the driver from engaging in another
occupation or business; and
(2) the company and the driver agree in writing that
the driver is an independent contractor.
Sec. 2402.115. AGREEMENTS WITH LOCAL ENTITIES FOR LARGE
EVENTS. Notwithstanding Section 2402.003, a municipality or other
local entity may contract with a transportation network company
operating in the municipality's or entity's jurisdiction for the
coordination of large events occurring in the municipality's or
entity's jurisdiction. An agreement under this section:
(1) may not exclude a transportation network company
holding a permit under this chapter from providing services at the
event; and
(2) must have comparable terms for each company
providing services at the event.
SUBCHAPTER D. RECORDS AND OTHER INFORMATION
Sec. 2402.151. RETENTION AND SUBMISSION OF RECORDS. (a) A
transportation network company shall maintain:
(1) records evidencing compliance with the
requirements of this chapter for a period of two years;
(2) individual ride records for at least five years
after the date the ride was provided; and
(3) driver records for at least five years after the
date the driver ceases to be authorized to log in as a driver on the
company's digital network.
(b) The department shall provide a means for information
required to be submitted for the purposes of this chapter to be
submitted electronically.
Sec. 2402.152. COLLECTION, USE, OR DISCLOSURE OF RECORDS
AND OTHER COMPANY INFORMATION. (a) Any records, data, or other
information disclosed to a public entity in this state, including
the department, by a transportation network company, including
names, addresses, and any other personally identifiable
information of drivers is not subject to disclosure under Chapter
552, Government Code.
(b) A public entity, including the department, may not
disclose any records, data, or other information provided by a
transportation network company under this chapter to a third party
except in compliance with a court order or subpoena. If information
provided under this chapter is sought through a court order or
subpoena, the public entity shall promptly notify the
transportation network company to afford the company the
opportunity to take actions to prevent disclosure.
(c) In collecting, using, or disclosing any records, data,
or other information submitted by a transportation network company
under this chapter, a public entity, including the department,
shall:
(1) consider the potential risks to the privacy of the
individuals whose information is being collected, used, or
disclosed;
(2) ensure that the information to be collected, used,
or disclosed is necessary, relevant, and appropriate to the proper
administration of this chapter; and
(3) take all reasonable measures and make all
reasonable efforts to protect, secure, and, where appropriate,
encrypt or limit access to the information.
(d) A transportation network company required to submit,
disclose, or otherwise provide personally identifiable information
of drivers to a public entity of this state, including the
department, is not liable in any civil or criminal action for any
unauthorized disclosure, misuse, alteration, destruction, access
or acquisition, or use of the information that occurs while the
information is in the possession of any public entity of this state.
Sec. 2402.153. DISCLOSURE OF PASSENGER INFORMATION. (a) A
transportation network company may disclose a passenger's personal
identifying information to a third party only if:
(1) the passenger consents;
(2) the disclosure is required by a legal obligation;
or
(3) the disclosure is required to:
(A) protect or defend the terms of use of the
transportation network company service; or
(B) investigate a violation of those terms.
(b) Notwithstanding Subsection (a), a transportation
network company may share a passenger's name with a driver
accessing the company's digital network to facilitate:
(1) identification of the passenger by the driver; or
(2) communication between the passenger and the
driver.
Sec. 2402.154. DATA SHARING WITH MUNICIPALITY. A
municipality and a transportation network company may voluntarily
enter into an agreement under which the company shares the
company's data with the municipality.
SUBCHAPTER E. ENFORCEMENT
Sec. 2402.201. PERMIT SUSPENSION OR REVOCATION. The
department may suspend or revoke a permit issued to a
transportation network company that violates a provision of this
chapter.
SECTION 2. A transportation network company operating under
a municipal ordinance in a municipality of this state immediately
before the effective date of this Act may operate at any location in
this state without the permit required under Section 2402.051,
Occupations Code, as added by this Act, until the later of:
(1) the 30th day after the date rules adopted by the
Texas Department of Licensing and Regulation to administer Section
2402.051 become effective; or
(2) the date the company's application for a permit
under Section 2402.051 submitted to the department before the date
described by Subdivision (1) of this section is approved or denied.
SECTION 3. On the effective date of this Act, any
municipality's or other local entity's ordinance or policy related
to transportation network companies or drivers authorized to access
transportation network companies' digital networks is void and has
no effect.
SECTION 4. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2017.