Texas 2017 - 85th Regular

Texas House Bill HB100 Compare Versions

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Old	New		Differences
1		-	By: Paddie, et al. (Senate Sponsor - Schwertner) H.B. No. 100
2		-	(In the Senate - Received from the House April 24, 2017;
3		-	May 9, 2017, read first time and referred to Committee on State
4		-	Affairs; May 12, 2017, reported favorably by the following vote:
5		-	Yeas 8, Nays 1; May 12, 2017, sent to printer.)
6		-	Click here to see the committee vote
	1	+	H.B. No. 100
7	2
8	3
9		-	A BILL TO BE ENTITLED
10	4		AN ACT
11	5		relating to the regulation of transportation network companies;
12	6		requiring an occupational permit; authorizing a fee.
13	7		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
14	8		SECTION 1. Subtitle C, Title 14, Occupations Code, is
15	9		amended by adding Chapter 2402 to read as follows:
16	10		CHAPTER 2402. TRANSPORTATION NETWORK COMPANIES
17	11		SUBCHAPTER A. GENERAL PROVISIONS
18	12		Sec. 2402.001. DEFINITIONS. In this chapter:
19	13		(1) "Department" means the Texas Department of
20	14		Licensing and Regulation.
21	15		(2) "Digital network" means any online-enabled
22	16		application, website, or system offered or used by a transportation
23	17		network company that enables the prearrangement of rides between
24	18		passengers and drivers.
25	19		(3) "Digitally prearranged ride" means a ride in a
26	20		personal vehicle between points chosen by the passenger that is
27	21		prearranged through a digital network.
28	22		(4) "Personal vehicle" means a vehicle that:
29	23		(A) is owned, leased, or otherwise authorized for
30	24		use by a driver; and
31	25		(B) is not a taxicab, limousine, or other vehicle
32	26		regulated by a municipality under Section 215.004, Local Government
33	27		Code, or a joint airport board under Section 22.081, Transportation
34	28		Code.
35	29		(5) "Transportation network company" means a
36	30		corporation, partnership, sole proprietorship, or other entity
37	31		that, for compensation, enables a passenger to prearrange with a
38	32		driver, exclusively through the entity's digital network, a
39	33		digitally prearranged ride. The term does not include an entity
40	34		that provides:
41	35		(A) street-hail taxicab services;
42	36		(B) limousine or other car services arranged by a
43	37		method other than through a digital network;
44	38		(C) shared expense carpool or vanpool
45	39		arrangements; or
46	40		(D) a type of ride service for which:
47	41		(i) the fee received by the driver does not
48	42		exceed the driver's costs of providing the ride; or
49	43		(ii) the driver receives a fee that exceeds
50	44		the driver's costs associated with providing the ride but makes not
51	45		more than three round-trips per day between the driver's or
52	46		passenger's place of employment and the driver's or passenger's
53	47		home.
54	48		Sec. 2402.002. NATURE OF TRANSPORTATION NETWORK COMPANIES,
55	49		DRIVERS, AND VEHICLES. Transportation network companies and
56	50		drivers logged in to the company's digital network are not common
57	51		carriers, contract carriers, or motor carriers.
58	52		Sec. 2402.003. CONTROLLING AUTHORITY. (a) Notwithstanding
59	53		any other provision of law, and except as provided by Subsections
60	54		(b) and (c), the regulation of transportation network companies,
61	55		drivers logged in to a digital network, and vehicles used to provide
62	56		digitally prearranged rides:
63	57		(1) is an exclusive power and function of this state;
64	58		and
65	59		(2) may not be regulated by a municipality or other
66	60		local entity, including by:
67	61		(A) imposing a tax;
68	62		(B) requiring an additional license or permit;
69	63		(C) setting rates;
70	64		(D) imposing operational or entry requirements;
71	65		or
72	66		(E) imposing other requirements.
73	67		(b) An airport owner or operator may impose regulations,
74	68		including a reasonable fee, on a transportation network company
75	69		that provides digitally prearranged rides to or from the airport.
76	70		(c) The governing body of a governmental entity with
77	71		jurisdiction over a cruise ship terminal may impose regulations,
78	72		including a reasonable fee, on a transportation network company
79	73		that provides digitally prearranged rides to or from the terminal.
80	74		(d) Regulations under Subsections (b) and (c) may not:
81	75		(1) conflict with the requirements of this chapter; or
82	76		(2) include requirements for drivers in addition to
83	77		those under Section 2402.107.
84	78		(e) This chapter does not affect the ability of a local
85	79		authority, as defined by Section 541.002, Transportation Code, to:
86	80		(1) take an action described by Section 542.202,
87	81		Transportation Code, or otherwise authorized by Subtitle C, Title
88	82		7, Transportation Code, that allows the local authority to adopt
89	83		traffic rules in the jurisdiction of the authority if the rules are
90	84		applied to transportation network company vehicles and drivers in
91	85		the same manner as non-transportation network company vehicles and
92	86		drivers; or
93	87		(2) enforce a provision of Subtitle C, Title 7,
94	88		Transportation Code, or any other state law relating to the
95	89		operation of traffic on public roads.
96	90		Sec. 2402.004. PROVISIONS APPLICABLE TO DRIVERS LOGGED IN
97	91		TO DIGITAL NETWORK. A provision of this chapter that applies to a
98	92		driver logged in to a digital network applies while the driver is
99	93		logged in to receive requests for digitally prearranged rides and
100	94		while the driver is logged in and providing a digitally prearranged
101	95		ride.
102	96		SUBCHAPTER B. PERMIT REQUIRED
103	97		Sec. 2402.051. PERMIT REQUIRED. (a) A person may not
104	98		operate a transportation network company in this state without
105	99		obtaining and maintaining a permit issued under this chapter.
106	100		(b) The department shall issue a permit to each applicant
107	101		that meets the requirements of this chapter and pays the fee
108	102		required by Section 2402.052.
109	103		Sec. 2402.052. FEE. (a) A transportation network company
110	104		shall annually pay to the department a fee to maintain a permit
111	105		under this chapter in an amount determined by department rule to
112	106		cover the costs of administering this chapter.
113	107		(b) The department may not impose a fee for:
114	108		(1) drivers authorized to use a transportation network
115	109		company's digital network; or
116	110		(2) vehicles used to provide digitally prearranged
117	111		rides.
118	112		SUBCHAPTER C. OPERATION OF TRANSPORTATION NETWORK COMPANIES
119	113		Sec. 2402.101. INSURANCE REQUIRED. The requirements of
120	114		Chapter 1954, Insurance Code, apply to transportation network
121	115		companies and drivers logged in to a digital network.
122	116		Sec. 2402.102. SHARED RIDES. A digitally prearranged ride
123	117		may be wholly or partly shared by multiple passengers if the
124	118		passengers consent to sharing the ride.
125	119		Sec. 2402.103. FARES. A transportation network company
126	120		that charges a fare for a digitally prearranged ride shall:
127	121		(1) disclose to passengers the fare calculation method
128	122		on the digital network; and
129	123		(2) before the passenger enters the vehicle for the
130	124		ride, provide through the digital network to the passenger
131	125		requesting the ride:
132	126		(A) the applicable rates being charged; and
133	127		(B) the option to receive an estimated fare.
134	128		Sec. 2402.104. DIGITAL NETWORK IDENTIFICATION OF DRIVERS
135	129		AND VEHICLES TO PASSENGERS. A transportation network company
136	130		shall, before a passenger enters a vehicle for a digitally
137	131		prearranged ride, provide through the company's digital network to
138	132		the passenger requesting the ride:
139	133		(1) the driver's first name and picture; and
140	134		(2) the make, model, and license plate number of the
141	135		driver's vehicle.
142	136		Sec. 2402.105. ELECTRONIC RECEIPT. Within a reasonable
143	137		time following the completion of a digitally prearranged ride, the
144	138		transportation network company whose digital network was used to
145	139		prearrange the ride shall transmit, through electronic mail or text
146	140		message, a receipt to the passenger who requested the ride that
147	141		includes:
148	142		(1) the origin and destination of the ride;
149	143		(2) the total time and distance of the ride; and
150	144		(3) an itemization of the total fare paid, if any.
151	145		Sec. 2402.106. INTOXICATING SUBSTANCE POLICY. (a) A
152	146		transportation network company shall implement an intoxicating
153	147		substance policy that prohibits a driver who is logged in to the
154	148		company's digital network from any amount of intoxication.
155	149		(b) A transportation network company shall include on its
156	150		Internet website:
157	151		(1) a notice concerning the company's intoxicating
158	152		substance policy; and
159	153		(2) the means to make a complaint about a suspected
160	154		violation of the policy.
161	155		(c) On receipt of a passenger complaint alleging a violation
162	156		of the intoxicating substance policy, a transportation network
163	157		company shall:
164	158		(1) conduct an investigation into the reported
165	159		incident; and
166	160		(2) immediately suspend the driver's access to the
167	161		company's digital network for the duration of the investigation.
168	162		(d) A transportation network company shall maintain records
169	163		relevant to a complaint for a period of at least two years after the
170	164		date the complaint is received.
171	165		Sec. 2402.107. DRIVER REQUIREMENTS. (a) Before permitting
172	166		an individual to log in as a driver on the company's digital
173	167		network, a transportation network company must:
174	168		(1) confirm that the individual:
175	169		(A) is at least 18 years of age;
176	170		(B) maintains a valid driver's license issued by
177	171		this state, another state, or the District of Columbia; and
178	172		(C) possesses proof of registration and
179	173		automobile financial responsibility for each motor vehicle to be
180	174		used to provide digitally prearranged rides;
181	175		(2) conduct, or cause to be conducted, a local, state,
182	176		and national criminal background check for the individual that
183	177		includes the use of:
184	178		(A) a commercial multistate and
185	179		multijurisdiction criminal records locator or other similar
186	180		commercial nationwide database; and
187	181		(B) the national sex offender public website
188	182		maintained by the United States Department of Justice or a
189	183		successor agency; and
190	184		(3) obtain and review the individual's driving record.
191	185		(b) A transportation network company may not permit an
192	186		individual to log in as a driver on the company's digital network if
193	187		the individual:
194	188		(1) has been convicted in the three-year period
195	189		preceding the issue date of the driving record obtained under
196	190		Subsection (a)(3) of:
197	191		(A) more than three offenses classified by the
198	192		Department of Public Safety as moving violations; or
199	193		(B) one or more of the following offenses:
200	194		(i) fleeing or attempting to elude a police
201	195		officer under Section 545.421, Transportation Code;
202	196		(ii) reckless driving under Section
203	197		545.401, Transportation Code;
204	198		(iii) driving without a valid driver's
205	199		license under Section 521.025, Transportation Code; or
206	200		(iv) driving with an invalid driver's
207	201		license under Section 521.457, Transportation Code;
208	202		(2) has been convicted in the preceding seven-year
209	203		period of any of the following:
210	204		(A) driving while intoxicated under Section
211	205		49.04 or 49.045, Penal Code;
212	206		(B) use of a motor vehicle to commit a felony;
213	207		(C) a felony crime involving property damage;
214	208		(D) fraud;
215	209		(E) theft;
216	210		(F) an act of violence; or
217	211		(G) an act of terrorism; or
218	212		(3) is found to be registered in the national sex
219	213		offender public website maintained by the United States Department
220	214		of Justice or a successor agency.
221	215		(c) A transportation network company shall conduct or cause
222	216		to be conducted an annual criminal background check described by
223	217		Subsection (a)(2) for each driver authorized to access the
224	218		company's digital network.
225	219		Sec. 2402.108. DIGITALLY PREARRANGED RIDES ONLY. A driver
226	220		who is logged in to a digital network may not solicit or provide a
227	221		ride for compensation unless the passenger has been matched to the
228	222		driver through the digital network.
229	223		Sec. 2402.109. PASSENGER ACTING IN UNLAWFUL, DISORDERLY, OR
230	224		ENDANGERING MANNER. A driver who has accepted a digitally
231	225		prearranged ride may refuse to transport a passenger acting in an
232	226		unlawful, disorderly, or endangering manner.
233	227		Sec. 2402.110. DISPLAY OF DIGITAL IDENTIFICATION. (a) In
234	228		this section, "digital identification" means information stored on
235	229		a digital network that may be accessed by a driver and that:
236	230		(1) serves as proof of the identity of the driver;
237	231		(2) serves as proof that the insurance coverage
238	232		requirements of Chapter 1954, Insurance Code, are satisfied;
239	233		(3) displays a photo of the driver;
240	234		(4) displays an image of the driver's vehicle; and
241	235		(5) identifies the make, model, and license plate
242	236		number of the vehicle used by the driver.
243	237		(b) On request of a law enforcement officer or a government
244	238		official enforcing or administering this chapter, a driver
245	239		providing a digitally prearranged ride shall:
246	240		(1) display the driver's digital identification; and
247	241		(2) display electronic proof that the ride was matched
248	242		through the digital network.
249	243		(c) This section does not require a driver to relinquish
250	244		possession of the electronic device containing the digital
251	245		identification.
252	246		Sec. 2402.111. VEHICLE REQUIREMENTS. (a) A transportation
253	247		network company shall, for each motor vehicle used by a driver to
254	248		provide digitally prearranged rides through the company's digital
255	249		network:
256	250		(1) require the vehicle to meet the requirements of
257	251		Chapter 548, Transportation Code; and
258	252		(2) confirm that the vehicle has:
259	253		(A) four doors; and
260	254		(B) a maximum passenger capacity of not more than
261	255		eight people, including the driver.
262	256		(b) A vehicle used to provide digitally prearranged rides
263	257		may be owned, leased, or rented by, or otherwise made available to,
264	258		the driver.
265	259		(c) Section 547.607, Transportation Code, does not apply to
266	260		a personal vehicle used to provide digitally prearranged rides.
267	261		Sec. 2402.112. NONDISCRIMINATION; ACCESSIBILITY. (a) A
268	262		transportation network company shall adopt a policy that prohibits
269	263		a driver logged in to the company's digital network from:
270	264		(1) discriminating on the basis of a passenger's or
271	265		potential passenger's location or destination, race, color,
272	266		national origin, religious belief or affiliation, sex, disability,
273	267		or age; and
274	268		(2) refusing to provide service to a potential
275	269		passenger with a service animal.
276	270		(b) For the purposes of Subsection (a), "sex" means the
277	271		physical condition of being male or female.
278	272		(c) A transportation network company shall notify each
279	273		person authorized to log in as a driver on the company's digital
280	274		network of the nondiscrimination policy. A driver logged in to the
281	275		company's digital network shall comply with the nondiscrimination
282	276		policy.
283	277		(d) A transportation network company may not impose an
284	278		additional charge for transportation of individuals with physical
285	279		disabilities because of those disabilities.
286	280		(e) A transportation network company shall provide a
287	281		passenger an opportunity to indicate whether the passenger requires
288	282		a wheelchair-accessible vehicle. If a wheelchair-accessible
289	283		vehicle cannot be provided, the company shall direct the requesting
290	284		passenger to an alternate provider of wheelchair-accessible
291	285		service, if available.
292	286		Sec. 2402.113. ACCESSIBILITY PILOT PROGRAM. (a) Each
293	287		transportation network company shall conduct, for a period of two
294	288		years beginning not later than the 90th day after the date the
295	289		company is issued a permit under Section 2402.051, an accessibility
296	290		pilot program in one of the four largest markets in which the
297	291		company operates in this state to:
298	292		(1) offer their services to disabled persons,
299	293		including disabled persons using a fixed-frame wheelchair; and
300	294		(2) ensure that, if necessary, referrals to alternate
301	295		providers of wheelchair-accessible service are made in a manner
302	296		that does not unreasonably delay the provision of service.
303	297		(a-1) Notwithstanding Subsection (a), a transportation
304	298		network company that is issued a permit under Section 2402.051 on or
305	299		before January 1, 2018, shall begin the pilot program under
306	300		Subsection (a) not later than that date. This subsection expires
307	301		January 1, 2020.
308	302		(b) Not later than the 100th day after the date a
309	303		transportation network company begins a pilot program under
310	304		Subsection (a), the company shall submit to the department a report
311	305		demonstrating the company's compliance with Subsection (a).
312	306		(c) A transportation network company shall provide a report
313	307		on the findings of the company's pilot program to each legislative
314	308		standing committee with primary jurisdiction over transportation
315	309		not later than the 75th day after the date the program ends. At a
316	310		minimum, the report must include information regarding:
317	311		(1) the number of vehicles equipped to accommodate a
318	312		passenger with a fixed-frame wheelchair that were available through
319	313		the company's digital network in the market in which the pilot
320	314		program was conducted at the time the program ended;
321	315		(2) the average time elapsed between the time a
322	316		fixed-frame wheelchair-bound passenger requested a ride and the
323	317		time the ride began;
324	318		(3) the number of rides provided to fixed-frame
325	319		wheelchair-bound passengers during the duration of the program; and
326	320		(4) the number of instances in which the company
327	321		referred a fixed-frame wheelchair-bound passenger to another
328	322		provider because the passenger could not be accommodated by the
329	323		company.
330	324		(d) The department:
331	325		(1) shall:
332	326		(A) by rule establish requirements for a report
333	327		under Subsection (b); and
334	328		(B) provide the transportation network company
335	329		with notice of those requirements at the time the department issues
336	330		the company's permit; and
337	331		(2) may revoke the company's permit for failure to
338	332		timely submit a report required under this section.
339	333		Sec. 2402.114. DRIVERS AS INDEPENDENT CONTRACTORS. A
340	334		driver who is authorized to log in to a transportation network
341	335		company's digital network is considered an independent contractor
342	336		for all purposes, and not an employee of the company in any manner,
343	337		if:
344	338		(1) the company does not:
345	339		(A) prescribe the specific hours during which the
346	340		driver is required to be logged in to the company's digital network;
347	341		(B) impose restrictions on the driver's ability
348	342		to use other transportation network companies' digital networks;
349	343		(C) limit the territory within which the driver
350	344		may provide digitally prearranged rides; or
351	345		(D) restrict the driver from engaging in another
352	346		occupation or business; and
353	347		(2) the company and the driver agree in writing that
354	348		the driver is an independent contractor.
355	349		Sec. 2402.115. AGREEMENTS WITH LOCAL ENTITIES FOR LARGE
356	350		EVENTS. Notwithstanding Section 2402.003, a municipality or other
357	351		local entity may contract with a transportation network company
358	352		operating in the municipality's or entity's jurisdiction for the
359	353		coordination of large events occurring in the municipality's or
360	354		entity's jurisdiction. An agreement under this section:
361	355		(1) may not exclude a transportation network company
362	356		holding a permit under this chapter from providing services at the
363	357		event; and
364	358		(2) must have comparable terms for each company
365	359		providing services at the event.
366	360		SUBCHAPTER D. RECORDS AND OTHER INFORMATION
367	361		Sec. 2402.151. RETENTION AND SUBMISSION OF RECORDS. (a) A
368	362		transportation network company shall maintain:
369	363		(1) records evidencing compliance with the
370	364		requirements of this chapter for a period of two years;
371	365		(2) individual ride records for at least five years
372	366		after the date the ride was provided; and
373	367		(3) driver records for at least five years after the
374	368		date the driver ceases to be authorized to log in as a driver on the
375	369		company's digital network.
376	370		(b) The department shall provide a means for information
377	371		required to be submitted for the purposes of this chapter to be
378	372		submitted electronically.
379	373		Sec. 2402.152. COLLECTION, USE, OR DISCLOSURE OF RECORDS
380	374		AND OTHER COMPANY INFORMATION. (a) Any records, data, or other
381	375		information disclosed to a public entity in this state, including
382	376		the department, by a transportation network company, including
383	377		names, addresses, and any other personally identifiable
384	378		information of drivers is not subject to disclosure under Chapter
385	379		552, Government Code.
386	380		(b) A public entity, including the department, may not
387	381		disclose any records, data, or other information provided by a
388	382		transportation network company under this chapter to a third party
389	383		except in compliance with a court order or subpoena. If information
390	384		provided under this chapter is sought through a court order or
391	385		subpoena, the public entity shall promptly notify the
392	386		transportation network company to afford the company the
393	387		opportunity to take actions to prevent disclosure.
394	388		(c) In collecting, using, or disclosing any records, data,
395	389		or other information submitted by a transportation network company
396	390		under this chapter, a public entity, including the department,
397	391		shall:
398	392		(1) consider the potential risks to the privacy of the
399	393		individuals whose information is being collected, used, or
400	394		disclosed;
401	395		(2) ensure that the information to be collected, used,
402	396		or disclosed is necessary, relevant, and appropriate to the proper
403	397		administration of this chapter; and
404	398		(3) take all reasonable measures and make all
405	399		reasonable efforts to protect, secure, and, where appropriate,
406	400		encrypt or limit access to the information.
407	401		(d) A transportation network company required to submit,
408	402		disclose, or otherwise provide personally identifiable information
409	403		of drivers to a public entity of this state, including the
410	404		department, is not liable in any civil or criminal action for any
411	405		unauthorized disclosure, misuse, alteration, destruction, access
412	406		or acquisition, or use of the information that occurs while the
413	407		information is in the possession of any public entity of this state.
414	408		Sec. 2402.153. DISCLOSURE OF PASSENGER INFORMATION. (a) A
415	409		transportation network company may disclose a passenger's personal
416	410		identifying information to a third party only if:
417	411		(1) the passenger consents;
418	412		(2) the disclosure is required by a legal obligation;
419	413		or
420	414		(3) the disclosure is required to:
421	415		(A) protect or defend the terms of use of the
422	416		transportation network company service; or
423	417		(B) investigate a violation of those terms.
424	418		(b) Notwithstanding Subsection (a), a transportation
425	419		network company may share a passenger's name with a driver
426	420		accessing the company's digital network to facilitate:
427	421		(1) identification of the passenger by the driver; or
428	422		(2) communication between the passenger and the
429	423		driver.
430	424		Sec. 2402.154. DATA SHARING WITH MUNICIPALITY. A
431	425		municipality and a transportation network company may voluntarily
432	426		enter into an agreement under which the company shares the
433	427		company's data with the municipality.
434	428		SUBCHAPTER E. ENFORCEMENT
435	429		Sec. 2402.201. PERMIT SUSPENSION OR REVOCATION. The
436	430		department may suspend or revoke a permit issued to a
437	431		transportation network company that violates a provision of this
438	432		chapter.
439	433		SECTION 2. A transportation network company operating under
440	434		a municipal ordinance in a municipality of this state immediately
441	435		before the effective date of this Act may operate at any location in
442	436		this state without the permit required under Section 2402.051,
443	437		Occupations Code, as added by this Act, until the later of:
444	438		(1) the 30th day after the date rules adopted by the
445	439		Texas Department of Licensing and Regulation to administer Section
446	440		2402.051 become effective; or
447	441		(2) the date the company's application for a permit
448	442		under Section 2402.051 submitted to the department before the date
449	443		described by Subdivision (1) of this section is approved or denied.
450	444		SECTION 3. On the effective date of this Act, any
451	445		municipality's or other local entity's ordinance or policy related
452	446		to transportation network companies or drivers authorized to access
453	447		transportation network companies' digital networks is void and has
454	448		no effect.
455	449		SECTION 4. This Act takes effect immediately if it receives
456	450		a vote of two-thirds of all the members elected to each house, as
457	451		provided by Section 39, Article III, Texas Constitution. If this
458	452		Act does not receive the vote necessary for immediate effect, this
459	453		Act takes effect September 1, 2017.
460		-	* * * * *
	454	+	______________________________ ______________________________
	455	+	President of the Senate Speaker of the House
	456	+	I certify that H.B. No. 100 was passed by the House on April
	457	+	20, 2017, by the following vote: Yeas 110, Nays 35, 2
	458	+	present, not
	459	+	voting.
	460	+	______________________________
	461	+	Chief Clerk of the House
	462	+	I certify that H.B. No. 100 was passed by the Senate on May
	463	+	17, 2017, by the following vote: Yeas 21, Nays 9.
	464	+	______________________________
	465	+	Secretary of the Senate
	466	+	APPROVED: _____________________
	467	+	Date
	468	+	_____________________
	469	+	Governor