Bill Text: TX HB2039 | 2023-2024 | 88th Legislature | Introduced

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Bill Title: Relating to automobile liability insurance for digital network company drivers.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2023-03-08 - Referred to Insurance [HB2039 Detail]

Download: Texas-2023-HB2039-Introduced.html

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88R9273 SCL-D
By: Hull H.B. No. 2039

A BILL TO BE ENTITLED
AN ACT
relating to automobile liability insurance for digital network
company drivers.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. The heading to Chapter 1954, Insurance Code, is
amended to read as follows:
CHAPTER 1954. INSURANCE FOR DIGITAL [TRANSPORTATION] NETWORK
COMPANY DRIVERS
SECTION 2. Section 1954.001, Insurance Code, is amended to
read as follows:
Sec. 1954.001. DEFINITIONS. In this chapter:
(1) "Delivery available period" means the period when
a driver:
(A) has logged on to a digital network and is
available to receive requests to provide delivery services from a
delivery network company;
(B) is operating a personal vehicle; and
(C) is not providing delivery services or
operating in the delivery service period.
(2) "Delivery network company" means a corporation,
partnership, sole proprietorship, or other entity operating in this
state that uses a digital network to connect a delivery network
company customer to a delivery network company driver to provide
delivery services.
(3) "Delivery network company customer" means a person
who orders the delivery of goods that are delivered by a delivery
network company driver at the direction of the person.
(4) "Delivery network company driver" means an
individual who provides delivery services through a delivery
network company's digital network using a personal vehicle.
(5) "Delivery service period" means the period:
(A) beginning when a delivery network company
driver begins operating a personal vehicle on the way to pick up
goods for a delivery or series of deliveries as documented through a
digital network controlled by a delivery network company;
(B) continuing while the driver transports the
requested goods; and
(C) ending on delivery of the requested goods to:
(i) the delivery network company customer
or the last customer in a series of deliveries;
(ii) a location designated by the customer
or arrival at the last location designated in a series of
deliveries; or
(iii) a location designated by the company,
including for purposes of returning the goods.
(6) "Delivery services" means the fulfillment of
delivery requests made by a delivery network company customer
through a digital network, including the pickup and delivery of
goods. The term includes a series of deliveries to different
customers or to different locations at the direction of a customer.
(7) "Digital network" means any online-enabled
application, software, website, or system offered or used by a
digital [transportation] network company that enables:
(A) a prearranged ride with a transportation
network company driver; or
(B) delivery services from a delivery network
company driver.
(8) "Digital network company" means a delivery network
company or transportation network company.
(9) "Digital network company driver" means a delivery
network company driver or transportation network company driver.
(10) [(2)] "Personal vehicle" means a vehicle that is
used by a digital [transportation] network company driver and is:
(A) owned, leased, or otherwise authorized for
use by the driver; and
(B) not a taxicab, limousine, or similar for-hire
vehicle.
(11) [(3)] "Prearranged ride" means transportation
provided by a transportation network company driver to a
transportation network company rider, beginning at the time a
driver accepts a ride requested by a rider through a digital network
controlled by a transportation network company and ending at the
time the last requesting rider departs from the driver's personal
vehicle. The term does not include:
(A) a shared expense carpool or vanpool
arrangement or service; or
(B) transportation provided using a taxicab,
limousine, or similar for-hire vehicle.
(12) [(4)] "Transportation network company" means a
corporation, partnership, sole proprietorship, or other entity
operating in this state that uses a digital network to connect a
transportation network company rider to a transportation network
company driver for a prearranged ride.
(13) [(5)] "Transportation network company driver"
means an individual who:
(A) receives connections to potential
transportation network company riders and related services from a
transportation network company in exchange for payment of a fee to
the company; and
(B) uses a personal vehicle to offer or provide a
prearranged ride to a transportation network company rider on
connection with the rider through a digital network controlled by
the company in exchange for compensation or payment of a fee.
(14) [(6)] "Transportation network company rider"
means an individual who uses a transportation network company's
digital network to connect with a transportation network company
driver who provides a prearranged ride to the individual in the
driver's personal vehicle between points chosen by the individual.
SECTION 3. Subchapter A, Chapter 1954, Insurance Code, is
amended by adding Sections 1954.003 and 1954.004 to read as
follows:
Sec. 1954.003. APPLICABILITY OF OTHER LAW. This chapter
does not limit the scope of federal or state law regarding delivery
or transport of goods. A person providing a delivery service that is
subject to other law shall comply with the other law. In the event
of a conflict between this chapter and the other law, the other law
prevails.
Sec. 1954.004. CONSTRUCTION OF CHAPTER. This chapter may
not be construed to invalidate, limit, or restrict:
(1) an automobile insurer's ability under the law to
write an insurance policy; or
(2) an automobile insurer's ability under the law to
cancel or not renew an insurance policy.
SECTION 4. Section 1954.051, Insurance Code, is amended by
amending Subsections (a) and (d) and adding Subsection (b-1) to
read as follows:
(a) A digital [transportation] network company driver or
digital [transportation] network company on the driver's behalf
shall maintain primary automobile insurance as required by this
subchapter.
(b-1) Insurance maintained under this subchapter must allow
a delivery network company driver to use a personal vehicle to
provide delivery services for compensation and cover the driver
during the delivery available period, if applicable, and delivery
service period.
(d) The coverage requirements of this subchapter may be
satisfied by:
(1) automobile insurance maintained by the digital
[transportation] network company driver;
(2) automobile insurance maintained by the digital
[transportation] network company; or
(3) a combination of Subdivisions (1) and (2).
SECTION 5. Subchapter B, Chapter 1954, Insurance Code, is
amended by adding Section 1954.0535 to read as follows:
Sec. 1954.0535. INSURANCE REQUIREMENTS: DELIVERY AVAILABLE
PERIOD AND DELIVERY SERVICE PERIOD. During the delivery available
period and delivery service period, the automobile insurance policy
must provide:
(1) the following minimum amounts of liability
insurance coverage:
(A) $50,000 for bodily injury to or death of each
person in an incident;
(B) $100,000 for bodily injury to or death of a
person per incident; and
(C) $25,000 for damage to or destruction of
property of others in an incident;
(2) uninsured or underinsured motorist coverage where
required by Section 1952.101; and
(3) personal injury protection coverage where
required by Section 1952.152.
SECTION 6. Sections 1954.054 and 1954.055, Insurance Code,
are amended to read as follows:
Sec. 1954.054. LAPSE OF OR INSUFFICIENT COVERAGE. If an
insurance policy maintained by a digital [transportation] network
company driver under this subchapter has lapsed or does not provide
the coverage required by this subchapter, the digital
[transportation] network company shall provide the coverage
required by this subchapter beginning with the first dollar of a
claim against the driver.
Sec. 1954.055. RELATION TO PERSONAL AUTOMOBILE
INSURANCE. Coverage under an automobile insurance policy
maintained by a digital [the transportation] network company is not
contingent on a digital [transportation] network company driver's
personal automobile insurer initially denying a claim.
SECTION 7. Section 1954.056(b), Insurance Code, is amended
to read as follows:
(b) A digital [transportation] network company driver shall
carry proof of insurance that satisfies Sections 1954.052 and
1954.053 or Section 1954.0535, as applicable, with the driver when
the driver uses a vehicle in connection with a digital
[transportation] network company's digital network. In the event
of an accident, a driver shall provide the proof of insurance to a
directly interested person, automobile insurer, and investigating
peace officer on request under Section 601.053, Transportation
Code. On request, a driver shall also disclose to a directly
interested person, automobile insurer, and investigating peace
officer whether, at the time of the accident, the driver was, as
applicable:
(1) logged on to the transportation network company's
digital network[;] or
[(2)] engaged in a prearranged ride; or
(2) logged on to the delivery network company's
digital network during a delivery available period or delivery
service period.
SECTION 8. The heading to Subchapter C, Chapter 1954,
Insurance Code, is amended to read as follows:
SUBCHAPTER C. RELATIONSHIP BETWEEN DIGITAL [TRANSPORTATION]
NETWORK COMPANY AND DIGITAL [TRANSPORTATION] NETWORK COMPANY
DRIVER
SECTION 9. Sections 1954.101 and 1954.102, Insurance Code,
are amended to read as follows:
Sec. 1954.101. REQUIRED DISCLOSURES. Before a digital
[transportation] network company driver may accept a request for a
prearranged ride or delivery services on a digital [transportation]
network company's digital network, the company shall disclose in
writing the following:
(1) the insurance policy, including the types of
coverage and the limits for the policy, that the company provides
while a driver uses a personal vehicle in connection with the
company's digital network; and
(2) that the driver's personal automobile insurance
policy may not provide coverage, depending on the policy's terms,
while the driver is logged on to, as applicable:
(A) the transportation network company's digital
network and is available to receive transportation requests or is
engaged in a prearranged ride; or
(B) the delivery network company's digital
network during the delivery available period or delivery service
period.
Sec. 1954.102. CONTROL OF DIGITAL [TRANSPORTATION] NETWORK
COMPANY DRIVERS. A digital [transportation] network company does
not control, direct, or manage a personal vehicle or a digital
[transportation] network company driver who connects to the
company's digital network except as agreed by written contract.
SECTION 10. Section 1954.151(a), Insurance Code, is amended
to read as follows:
(a) An insurer may exclude from coverage under a personal
automobile insurance policy issued to an owner or operator of a
personal vehicle any loss or injury that occurs while a digital
[transportation] network company driver using the personal
vehicle, as applicable:
(1) is logged on to a transportation network company's
digital network [;] or
[(2)] is engaged in a prearranged ride; or
(2) is logged on to a delivery network company's
digital network during a delivery available period or delivery
service period.
SECTION 11. Section 1954.152(a), Insurance Code, is amended
to read as follows:
(a) This subchapter does not require a personal automobile
insurance policy to cover a digital [transportation] network
company driver while:
(1) the driver is logged on to a transportation
network company's digital network;
(2) the driver is engaged in a prearranged ride; [or]
(3) the driver is logged on to a delivery network
company's digital network during a delivery available period or
delivery service period; or
(4) the driver otherwise uses a vehicle to transport
passengers for compensation.
SECTION 12. Section 1954.153(b), Insurance Code, is amended
to read as follows:
(b) An automobile insurer that defends or indemnifies a
claim against a digital [transportation] network company driver for
which coverage is excluded under the terms of the policy as
authorized by this subchapter has a right of contribution against
another insurer that provides automobile insurance to the driver in
satisfaction of the coverage requirements under Section 1954.052,
[or] 1954.053, or 1954.0535, as applicable.
SECTION 13. Sections 1954.154 and 1954.155, Insurance Code,
are amended to read as follows:
Sec. 1954.154. ASSISTANCE IN CLAIM INVESTIGATION. In an
insurance claim investigation, a digital [transportation] network
company and any insurer providing coverage under Subchapter B shall
assist each insurer involved in the claim by providing information
to directly interested persons and an insurer of the digital
[transportation] network company driver. Information provided
under this section must include:
(1) the precise times that, as applicable:
(A) a driver logged on and off of the
transportation network company's digital network in the 12-hour
period immediately preceding and the 12-hour period immediately
following the accident; or
(B) a driver began and ended the delivery
available period and delivery service period on the delivery
network company's digital network in the 12-hour period immediately
preceding and the 12-hour period immediately following the
accident; and
(2) a clear description of the coverage, exclusions,
and limits provided under an automobile insurance policy maintained
under Subchapter B.
Sec. 1954.155. PAYMENT OF CERTAIN CLAIMS. If there is a
lien on a personal vehicle and the digital [transportation] network
company's insurer covers a claim arising out of an incident that
occurred during a prearranged ride or delivery available period or
delivery service period, as applicable, the insurer shall issue
payment for the claim:
(1) directly to the person who is repairing the
vehicle; or
(2) jointly to the owner of the personal vehicle and
the primary lienholder.
SECTION 14. This Act takes effect January 1, 2024.