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Texas Senate Bill SB361

Texas 2017 - 85th Regular

Texas Senate Bill SB361 Compare Versions

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11 By: Nichols, Campbell S.B. No. 361
22 (In the Senate - Filed December 19, 2016; February 1, 2017,
33 read first time and referred to Committee on Business & Commerce;
44 March 22, 2017, reported favorably by the following vote: Yeas 7,
55 Nays 1; March 22, 2017, sent to printer.)
66 Click here to see the committee vote
77
88
99 A BILL TO BE ENTITLED
1010 AN ACT
1111 relating to transportation network companies.
1212 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1313 SECTION 1. The heading to Subtitle F, Title 7,
1414 Transportation Code, is amended to read as follows:
1515 SUBTITLE F. COMMERCIAL MOTOR VEHICLES AND PERSONAL VEHICLES USED
1616 FOR COMMERCIAL PURPOSES
1717 SECTION 2. Subtitle F, Title 7, Transportation Code, is
1818 amended by adding Chapter 649 to read as follows:
1919 CHAPTER 649. TRANSPORTATION NETWORK COMPANIES
2020 SUBCHAPTER A. GENERAL PROVISIONS
2121 Sec. 649.001. DEFINITIONS. In this chapter:
2222 (1) "Digital network" means any online-enabled
2323 application, website, or system offered or used by a transportation
2424 network company that enables the prearrangement of rides between
2525 passengers and drivers.
2626 (2) "Digitally prearranged ride" means a ride in a
2727 personal vehicle between points chosen by the passenger that is
2828 prearranged through a digital network.
2929 (3) "Personal vehicle" means a vehicle that:
3030 (A) is owned, leased, or otherwise authorized for
3131 use by a driver; and
3232 (B) is not a taxicab, limousine, or other vehicle
3333 regulated by a municipality under Section 215.004, Local Government
3434 Code, or a joint airport board under Section 22.081, Transportation
3535 Code.
3636 (4) "Transportation network company" means a
3737 corporation, partnership, sole proprietorship, or other entity
3838 that, for compensation, enables a passenger to prearrange with a
3939 driver, exclusively through the entity's digital network, a
4040 digitally prearranged ride. The term does not include an entity
4141 that provides:
4242 (A) in addition to digitally prearranged rides:
4343 (i) street-hail taxicab services; or
4444 (ii) limousine or other car services
4545 arranged by a method other than through a digital network;
4646 (B) shared expense carpool or vanpool
4747 arrangements; or
4848 (C) a type of ride service for which:
4949 (i) the fee received by the driver does not
5050 exceed the driver's costs of providing the ride; or
5151 (ii) the driver receives a fee that exceeds
5252 the driver's costs associated with providing the ride but makes not
5353 more than three round-trips per day between the driver's or
5454 passenger's place of employment and the driver's or passenger's
5555 home.
5656 Sec. 649.002. NATURE OF TRANSPORTATION NETWORK COMPANIES,
5757 DRIVERS, AND VEHICLES. Transportation network companies and
5858 drivers logged in to the company's digital network are not common
5959 carriers, contract carriers, or motor carriers.
6060 Sec. 649.003. CONTROLLING AUTHORITY. (a) Notwithstanding
6161 any other provision of law, and except as provided by Subsection
6262 (b), the regulation of transportation network companies, drivers
6363 logged in to a digital network, and vehicles used to provide
6464 digitally prearranged rides:
6565 (1) is an exclusive power and function of this state;
6666 and
6767 (2) may not be regulated by a municipality, state
6868 agency, or other state or local entity, including by:
6969 (A) imposing a tax;
7070 (B) requiring a license;
7171 (C) setting rates;
7272 (D) imposing operational requirements; or
7373 (E) imposing other requirements.
7474 (b) An airport owner or operator may impose a reasonable fee
7575 on a transportation network company that provides digitally
7676 prearranged rides to or from the airport.
7777 Sec. 649.004. PROVISIONS APPLICABLE TO DRIVERS LOGGED IN TO
7878 DIGITAL NETWORK. A provision of this chapter that applies to a
7979 driver logged in to a digital network applies while the driver is
8080 logged in to receive requests for digitally prearranged rides and
8181 while the driver is logged in and providing a digitally prearranged
8282 ride.
8383 SUBCHAPTER B. OPERATION OF TRANSPORTATION NETWORK COMPANIES
8484 Sec. 649.051. INSURANCE REQUIRED. The requirements of
8585 Chapter 1954, Insurance Code, apply to transportation network
8686 companies and drivers logged in to a digital network.
8787 Sec. 649.052. SHARED RIDES. A digitally prearranged ride
8888 may be wholly or partly shared by multiple passengers if the
8989 passengers consent to sharing the ride.
9090 Sec. 649.053. FARES. A transportation network company that
9191 charges a fare for a digitally prearranged ride shall:
9292 (1) disclose to passengers the fare calculation method
9393 on the digital network; and
9494 (2) before the passenger enters the vehicle for the
9595 ride, provide through the digital network to the passenger
9696 requesting the ride:
9797 (A) the applicable rates being charged; and
9898 (B) the option to receive an estimated fare.
9999 Sec. 649.054. DIGITAL NETWORK IDENTIFICATION OF DRIVERS AND
100100 VEHICLES TO PASSENGERS. A transportation network company shall,
101101 before a passenger enters a vehicle for a digitally prearranged
102102 ride, provide through the company's digital network to the
103103 passenger requesting the ride:
104104 (1) the driver's first name and picture; and
105105 (2) the make, model, and license plate number of the
106106 driver's vehicle.
107107 Sec. 649.055. PAYMENT; ELECTRONIC RECEIPT. (a) A driver
108108 providing a digitally prearranged ride shall accept payment for the
109109 ride only through the digital network.
110110 (b) Within a reasonable time following the completion of a
111111 digitally prearranged ride, the transportation network company
112112 whose digital network was used to prearrange the ride shall
113113 transmit, through electronic mail or text message, a receipt to the
114114 passenger who requested the ride that includes:
115115 (1) the origin and destination of the ride;
116116 (2) the total time and distance of the ride; and
117117 (3) an itemization of the total fare paid, if any.
118118 Sec. 649.056. INTOXICATING SUBSTANCE POLICY. (a) A
119119 transportation network company shall implement an intoxicating
120120 substance policy that prohibits a driver who is logged in to the
121121 company's digital network from any amount of intoxication.
122122 (b) A transportation network company shall include on its
123123 Internet website:
124124 (1) a notice concerning the company's intoxicating
125125 substance policy; and
126126 (2) the means to make a complaint about a suspected
127127 violation of the policy.
128128 (c) On receipt of a passenger complaint alleging a violation
129129 of the intoxicating substance policy, a transportation network
130130 company shall:
131131 (1) conduct an investigation into the reported
132132 incident; and
133133 (2) immediately suspend the driver's access to the
134134 company's digital network for the duration of the investigation.
135135 (d) A transportation network company shall maintain records
136136 relevant to a complaint for a period of at least two years after the
137137 date the complaint is received.
138138 Sec. 649.057. DRIVER REQUIREMENTS. (a) Before permitting
139139 an individual to log in as a driver on the company's digital
140140 network, a transportation network company must:
141141 (1) confirm that the individual:
142142 (A) is at least 19 years of age;
143143 (B) maintains a valid driver's license; and
144144 (C) possesses proof of registration and
145145 automobile financial responsibility for each motor vehicle to be
146146 used to provide digitally prearranged rides;
147147 (2) conduct, or cause to be conducted, a local, state,
148148 and national criminal background check for the individual that
149149 includes the use of:
150150 (A) a commercial multistate and
151151 multijurisdiction criminal records locator or other similar
152152 commercial nationwide database; and
153153 (B) the national sex offender registry database
154154 maintained by the United States Department of Justice or a
155155 successor agency; and
156156 (3) obtain and review the individual's driving record.
157157 (b) A transportation network company shall not permit an
158158 individual to log in as a driver on the company's digital network if
159159 the individual:
160160 (1) has been convicted in the three-year period
161161 preceding the issue date of the driving record obtained under
162162 Subsection (a)(3) of:
163163 (A) more than three offenses classified by the
164164 Department of Public Safety as moving violations; or
165165 (B) one or more of the following offenses:
166166 (i) fleeing or attempting to elude a police
167167 officer under Section 545.421;
168168 (ii) reckless driving under Section
169169 545.401;
170170 (iii) driving without a valid driver's
171171 license under Section 521.025; or
172172 (iv) driving with an invalid driver's
173173 license under Section 521.457;
174174 (2) has been convicted in the preceding seven-year
175175 period of any of the following:
176176 (A) driving while intoxicated under Section
177177 49.04 or 49.045, Penal Code;
178178 (B) use of a motor vehicle to commit a felony;
179179 (C) a crime involving felony property damage;
180180 (D) felony fraud;
181181 (E) felony theft;
182182 (F) an act of violence; or
183183 (G) an act of terrorism; or
184184 (3) is found to be in the national sex offender
185185 registry database maintained by the United States Department of
186186 Justice or a successor agency.
187187 Sec. 649.058. DIGITALLY PREARRANGED RIDES ONLY. A driver
188188 who is logged in to a digital network shall not solicit or provide a
189189 ride for compensation unless the passenger has been matched to the
190190 driver through the digital network.
191191 Sec. 649.059. PAYMENT ONLY THROUGH DIGITAL NETWORK. A
192192 driver may receive payment for a digitally prearranged ride only
193193 through the digital network and shall not solicit or accept cash
194194 payments from a passenger.
195195 Sec. 649.060. PASSENGER ACTING IN UNLAWFUL, DISORDERLY, OR
196196 ENDANGERING MANNER. A driver who has accepted a digitally
197197 prearranged ride may refuse to transport a passenger acting in an
198198 unlawful, disorderly, or endangering manner.
199199 Sec. 649.061. DIGITAL IDENTIFICATION TO LAW ENFORCEMENT
200200 OFFICER. (a) In this section, "digital identification" means
201201 information stored on a digital network that may be accessed by a
202202 driver and that:
203203 (1) serves as proof of the identity of the driver;
204204 (2) serves as proof that the insurance coverage
205205 requirements of Chapter 1954, Insurance Code, are satisfied;
206206 (3) displays a photo of the driver;
207207 (4) displays an image of the driver's vehicle; and
208208 (5) identifies the make, model, and license plate
209209 number of the vehicle used by the driver.
210210 (b) On request of a law enforcement officer, a driver
211211 providing a digitally prearranged ride shall:
212212 (1) display the driver's digital identification; and
213213 (2) display electronic proof that the ride was matched
214214 through the digital network.
215215 (c) This section does not require a driver to relinquish
216216 possession of the electronic device containing the digital
217217 identification.
218218 Sec. 649.062. VEHICLE REQUIREMENTS. (a) A transportation
219219 network company shall, for each motor vehicle used by a driver to
220220 provide digitally prearranged rides through the company's digital
221221 network:
222222 (1) require the vehicle to meet the requirements of
223223 Chapter 548; and
224224 (2) confirm that the vehicle has:
225225 (A) four doors; and
226226 (B) a maximum passenger capacity of not more than
227227 eight people, including the driver.
228228 (b) A vehicle used to provide digitally prearranged rides:
229229 (1) may be owned, leased, or rented by the driver; and
230230 (2) may not also be used to provide street-hail
231231 taxicab service, limousine service, or other similar for-hire
232232 service regulated by a municipality under Section 215.004, Local
233233 Government Code, or a joint airport board under Section 22.081,
234234 Transportation Code.
235235 Sec. 649.063. NONDISCRIMINATION; ACCESSIBILITY. (a) A
236236 transportation network company shall adopt a policy that prohibits
237237 a driver logged in to the company's digital network from:
238238 (1) discriminating on the basis of a passenger's or
239239 potential passenger's location or destination, race, color,
240240 national origin, religious belief or affiliation, sex, disability,
241241 or age; and
242242 (2) refusing to provide service to a potential
243243 passenger with a service animal unless the driver has a medically
244244 documented condition that prevents the driver from transporting
245245 animals.
246246 (b) A transportation network company shall notify each
247247 person authorized to log in as a driver on the company's digital
248248 network of the nondiscrimination policy. A driver logged in to the
249249 company's digital network shall comply with the nondiscrimination
250250 policy.
251251 (c) A transportation network company shall not impose an
252252 additional charge for transportation of individuals with physical
253253 disabilities because of those disabilities.
254254 (d) A transportation network company shall provide a
255255 passenger an opportunity to indicate whether the passenger requires
256256 a wheelchair-accessible vehicle. If a wheelchair-accessible
257257 vehicle cannot be provided, the company shall direct the requesting
258258 passenger to an alternate provider of wheelchair-accessible
259259 service, if available.
260260 Sec. 649.064. DRIVERS AS INDEPENDENT CONTRACTORS. A driver
261261 who is authorized to log in to a transportation network company's
262262 digital network is considered an independent contractor, and not an
263263 employee of the company, if:
264264 (1) the company does not:
265265 (A) prescribe the specific hours during which the
266266 driver is required to be logged in to the company's digital network;
267267 (B) impose restrictions on the driver's ability
268268 to use other transportation network companies' digital networks;
269269 (C) limit the territory within which the driver
270270 may provide digitally prearranged rides; or
271271 (D) restrict the driver from engaging in another
272272 occupation or business; and
273273 (2) the company and the driver agree in writing that
274274 the driver is an independent contractor.
275275 Sec. 649.065. FIRE EXTINGUISHER. Section 547.607 does not
276276 apply to a vehicle used to provide digitally prearranged rides.
277277 SUBCHAPTER C. RECORDS AND OTHER INFORMATION
278278 Sec. 649.101. RETENTION OF RECORDS. A transportation
279279 network company shall maintain:
280280 (1) records evidencing compliance with the
281281 requirements of this chapter for a period of two years;
282282 (2) individual ride records for at least one year
283283 after the date the ride was provided; and
284284 (3) driver records for at least one year after the date
285285 the driver ceases to be authorized to log in as a driver on the
286286 company's digital network.
287287 Sec. 649.102. COLLECTION, USE, OR DISCLOSURE OF RECORDS AND
288288 OTHER COMPANY INFORMATION. (a) Any records, data, or other
289289 information disclosed to a public entity in this state by a
290290 transportation network company, including names, addresses, and
291291 any other personally identifiable information of drivers, is not
292292 subject to disclosure under Chapter 552, Government Code.
293293 (b) A public entity may not disclose any records, data, or
294294 other information provided by a transportation network company
295295 under this chapter to a third party except in compliance with a
296296 court order or subpoena. If information provided under this
297297 chapter is sought through a court order or subpoena, the public
298298 entity shall promptly notify the transportation network company to
299299 afford the company the opportunity to take actions to prevent
300300 disclosure.
301301 (c) In collecting, using, or disclosing any records, data,
302302 or other information submitted by a transportation network company
303303 under this chapter, a public entity shall:
304304 (1) consider the potential risks to the privacy of the
305305 individuals whose information is being collected, used, or
306306 disclosed;
307307 (2) ensure that the information to be collected, used,
308308 or disclosed is necessary, relevant, and appropriate to the proper
309309 administration of this chapter; and
310310 (3) take all reasonable measures and make all
311311 reasonable efforts to protect, secure, and, where appropriate,
312312 encrypt or limit access to the information.
313313 (d) A transportation network company required to submit,
314314 disclose, or otherwise provide personally identifiable information
315315 of drivers to a public entity of this state is not liable in any
316316 civil or criminal action for any unauthorized disclosure, misuse,
317317 alteration, destruction, access or acquisition, or use of the
318318 information that occurs while the information is in the possession
319319 of any public entity of this state.
320320 Sec. 649.103. DISCLOSURE OF PASSENGER INFORMATION. (a) A
321321 transportation network company may disclose a passenger's personal
322322 identifying information to a third party only if:
323323 (1) the passenger consents;
324324 (2) the disclosure is required by a legal obligation;
325325 or
326326 (3) the disclosure is required to:
327327 (A) protect or defend the terms of use of the
328328 transportation network company service; or
329329 (B) investigate a violation of those terms.
330330 (b) Notwithstanding Subsection (a), a transportation
331331 network company may share a passenger's name with a driver
332332 accessing the company's digital network to facilitate:
333333 (1) identification of the passenger by the driver; or
334334 (2) communication between the passenger and the
335335 driver.
336336 SECTION 3. On the effective date of this Act, any
337337 municipality's or other local entity's ordinance or policy related
338338 to transportation network companies or drivers authorized to access
339339 transportation network companies' digital networks that
340340 contradicts or is otherwise inconsistent with this Act is void and
341341 has no effect.
342342 SECTION 4. This Act takes effect immediately if it receives
343343 a vote of two-thirds of all the members elected to each house, as
344344 provided by Section 39, Article III, Texas Constitution. If this
345345 Act does not receive the vote necessary for immediate effect, this
346346 Act takes effect September 1, 2017.
347347 * * * * *