Texas Senate Bill SB176

Texas 2017 - 85th Regular

• Filed: 11/14/16

Caption

Relating to the regulation of transportation network companies; requiring an occupational permit; authorizing a fee.

Impact

The legislation intends to standardize the operations of TNCs, which predominantly use digital platforms to connect drivers with passengers. By requiring permits and regular fees based on company size, it ensures that TNCs engage in practices that promote passenger safety and accountability. Moreover, TNCs must implement anti-discrimination policies and drug and alcohol use policies. The law also emphasizes ensuring accessibility for passengers needing wheelchair accommodations, which may incentivize TNCs to expand their service offerings in this area.

Summary

SB176 establishes a regulatory framework for transportation network companies (TNCs) in Texas, mandating that they obtain an occupational permit to operate. The bill outlines the responsibilities of TNCs, which include maintaining certain operational standards and providing transparent pricing information to passengers. It specifically prohibits local governments from imposing their own regulations, taxes, or licensing requirements on TNCs, effectively centralizing authority at the state level. This aims to create a uniform operating environment for TNCs across Texas, promoting business consistency and allowing for easier compliance for companies with multiple locations within the state.

Contention

One notable point of contention regarding SB176 is its preemption of local control. Critics argue that by preventing municipalities from imposing regulations, the bill undermines local governance and may limit cities' ability to address specific community needs, such as fare structures and safety measures tailored to local conditions. Supporters of the bill contend that a uniform statewide approach is essential for the smooth operation of TNCs and will foster a business-friendly environment. However, the debate highlights a tension between state-level regulation and local autonomy in addressing transportation issues.