By: Nichols, Campbell S.B. No. 361
(In the Senate - Filed December 19, 2016; February 1, 2017,
read first time and referred to Committee on Business & Commerce;
March 22, 2017, reported favorably by the following vote: Yeas 7,
Nays 1; March 22, 2017, sent to printer.)
Click here to see the committee vote
A BILL TO BE ENTITLED
AN ACT
relating to transportation network companies.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. The heading to Subtitle F, Title 7,
Transportation Code, is amended to read as follows:
SUBTITLE F. COMMERCIAL MOTOR VEHICLES AND PERSONAL VEHICLES USED
FOR COMMERCIAL PURPOSES
SECTION 2. Subtitle F, Title 7, Transportation Code, is
amended by adding Chapter 649 to read as follows:
CHAPTER 649. TRANSPORTATION NETWORK COMPANIES
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 649.001. DEFINITIONS. In this chapter:
(1) "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.
(2) "Digitally prearranged ride" means a ride in a
personal vehicle between points chosen by the passenger that is
prearranged through a digital network.
(3) "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.
(4) "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) in addition to digitally prearranged rides:
(i) street-hail taxicab services; or
(ii) limousine or other car services
arranged by a method other than through a digital network;
(B) shared expense carpool or vanpool
arrangements; or
(C) 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. 649.002. 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. 649.003. CONTROLLING AUTHORITY. (a) Notwithstanding
any other provision of law, and except as provided by Subsection
(b), 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, state
agency, or other state or local entity, including by:
(A) imposing a tax;
(B) requiring a license;
(C) setting rates;
(D) imposing operational requirements; or
(E) imposing other requirements.
(b) An airport owner or operator may impose a reasonable fee
on a transportation network company that provides digitally
prearranged rides to or from the airport.
Sec. 649.004. 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. OPERATION OF TRANSPORTATION NETWORK COMPANIES
Sec. 649.051. INSURANCE REQUIRED. The requirements of
Chapter 1954, Insurance Code, apply to transportation network
companies and drivers logged in to a digital network.
Sec. 649.052. SHARED RIDES. A digitally prearranged ride
may be wholly or partly shared by multiple passengers if the
passengers consent to sharing the ride.
Sec. 649.053. 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. 649.054. 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. 649.055. PAYMENT; ELECTRONIC RECEIPT. (a) A driver
providing a digitally prearranged ride shall accept payment for the
ride only through the digital network.
(b) 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. 649.056. 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. 649.057. 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 19 years of age;
(B) maintains a valid driver's license; 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 registry database
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 shall 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;
(ii) reckless driving under Section
545.401;
(iii) driving without a valid driver's
license under Section 521.025; or
(iv) driving with an invalid driver's
license under Section 521.457;
(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 crime involving felony property damage;
(D) felony fraud;
(E) felony theft;
(F) an act of violence; or
(G) an act of terrorism; or
(3) is found to be in the national sex offender
registry database maintained by the United States Department of
Justice or a successor agency.
Sec. 649.058. DIGITALLY PREARRANGED RIDES ONLY. A driver
who is logged in to a digital network shall not solicit or provide a
ride for compensation unless the passenger has been matched to the
driver through the digital network.
Sec. 649.059. PAYMENT ONLY THROUGH DIGITAL NETWORK. A
driver may receive payment for a digitally prearranged ride only
through the digital network and shall not solicit or accept cash
payments from a passenger.
Sec. 649.060. 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. 649.061. DIGITAL IDENTIFICATION TO LAW ENFORCEMENT
OFFICER. (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, 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. 649.062. 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; 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:
(1) may be owned, leased, or rented by the driver; and
(2) may not also be used to provide street-hail
taxicab service, limousine service, or other similar for-hire
service regulated by a municipality under Section 215.004, Local
Government Code, or a joint airport board under Section 22.081,
Transportation Code.
Sec. 649.063. 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 unless the driver has a medically
documented condition that prevents the driver from transporting
animals.
(b) 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.
(c) A transportation network company shall not impose an
additional charge for transportation of individuals with physical
disabilities because of those disabilities.
(d) 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. 649.064. 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, and not an
employee of the company, 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. 649.065. FIRE EXTINGUISHER. Section 547.607 does not
apply to a vehicle used to provide digitally prearranged rides.
SUBCHAPTER C. RECORDS AND OTHER INFORMATION
Sec. 649.101. RETENTION OF RECORDS. 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 one year
after the date the ride was provided; and
(3) driver records for at least one year after the date
the driver ceases to be authorized to log in as a driver on the
company's digital network.
Sec. 649.102. 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 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 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 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 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. 649.103. 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.
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 that
contradicts or is otherwise inconsistent with this Act 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.
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