Bill Text: TX HB100 | 2017-2018 | 85th Legislature | Enrolled
Bill Title: Relating to the regulation of transportation network companies; requiring an occupational permit; authorizing a fee.
Spectrum: Moderate Partisan Bill (Republican 62-12)
Status: (Passed) 2017-05-29 - Effective immediately [HB100 Detail]
Download: Texas-2017-HB100-Enrolled.html
H.B. No. 100 |
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relating to the regulation of transportation network companies; | ||
requiring an occupational permit; authorizing a fee. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Subtitle C, Title 14, Occupations Code, is | ||
amended by adding Chapter 2402 to read as follows: | ||
CHAPTER 2402. TRANSPORTATION NETWORK COMPANIES | ||
SUBCHAPTER A. GENERAL PROVISIONS | ||
Sec. 2402.001. DEFINITIONS. In this chapter: | ||
(1) "Department" means the Texas Department of | ||
Licensing and Regulation. | ||
(2) "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. | ||
(3) "Digitally prearranged ride" means a ride in a | ||
personal vehicle between points chosen by the passenger that is | ||
prearranged through a digital network. | ||
(4) "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. | ||
(5) "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) street-hail taxicab services; | ||
(B) limousine or other car services arranged by a | ||
method other than through a digital network; | ||
(C) shared expense carpool or vanpool | ||
arrangements; or | ||
(D) 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. 2402.002. 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. 2402.003. CONTROLLING AUTHORITY. (a) Notwithstanding | ||
any other provision of law, and except as provided by Subsections | ||
(b) and (c), 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 or other | ||
local entity, including by: | ||
(A) imposing a tax; | ||
(B) requiring an additional license or permit; | ||
(C) setting rates; | ||
(D) imposing operational or entry requirements; | ||
or | ||
(E) imposing other requirements. | ||
(b) An airport owner or operator may impose regulations, | ||
including a reasonable fee, on a transportation network company | ||
that provides digitally prearranged rides to or from the airport. | ||
(c) The governing body of a governmental entity with | ||
jurisdiction over a cruise ship terminal may impose regulations, | ||
including a reasonable fee, on a transportation network company | ||
that provides digitally prearranged rides to or from the terminal. | ||
(d) Regulations under Subsections (b) and (c) may not: | ||
(1) conflict with the requirements of this chapter; or | ||
(2) include requirements for drivers in addition to | ||
those under Section 2402.107. | ||
(e) This chapter does not affect the ability of a local | ||
authority, as defined by Section 541.002, Transportation Code, to: | ||
(1) take an action described by Section 542.202, | ||
Transportation Code, or otherwise authorized by Subtitle C, Title | ||
7, Transportation Code, that allows the local authority to adopt | ||
traffic rules in the jurisdiction of the authority if the rules are | ||
applied to transportation network company vehicles and drivers in | ||
the same manner as non-transportation network company vehicles and | ||
drivers; or | ||
(2) enforce a provision of Subtitle C, Title 7, | ||
Transportation Code, or any other state law relating to the | ||
operation of traffic on public roads. | ||
Sec. 2402.004. 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. PERMIT REQUIRED | ||
Sec. 2402.051. PERMIT REQUIRED. (a) A person may not | ||
operate a transportation network company in this state without | ||
obtaining and maintaining a permit issued under this chapter. | ||
(b) The department shall issue a permit to each applicant | ||
that meets the requirements of this chapter and pays the fee | ||
required by Section 2402.052. | ||
Sec. 2402.052. FEE. (a) A transportation network company | ||
shall annually pay to the department a fee to maintain a permit | ||
under this chapter in an amount determined by department rule to | ||
cover the costs of administering this chapter. | ||
(b) The department may not impose a fee for: | ||
(1) drivers authorized to use a transportation network | ||
company's digital network; or | ||
(2) vehicles used to provide digitally prearranged | ||
rides. | ||
SUBCHAPTER C. OPERATION OF TRANSPORTATION NETWORK COMPANIES | ||
Sec. 2402.101. INSURANCE REQUIRED. The requirements of | ||
Chapter 1954, Insurance Code, apply to transportation network | ||
companies and drivers logged in to a digital network. | ||
Sec. 2402.102. SHARED RIDES. A digitally prearranged ride | ||
may be wholly or partly shared by multiple passengers if the | ||
passengers consent to sharing the ride. | ||
Sec. 2402.103. 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. 2402.104. 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. 2402.105. ELECTRONIC RECEIPT. 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. 2402.106. 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. 2402.107. 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 18 years of age; | ||
(B) maintains a valid driver's license issued by | ||
this state, another state, or the District of Columbia; 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 public website | ||
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 may 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, Transportation Code; | ||
(ii) reckless driving under Section | ||
545.401, Transportation Code; | ||
(iii) driving without a valid driver's | ||
license under Section 521.025, Transportation Code; or | ||
(iv) driving with an invalid driver's | ||
license under Section 521.457, Transportation Code; | ||
(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 felony crime involving property damage; | ||
(D) fraud; | ||
(E) theft; | ||
(F) an act of violence; or | ||
(G) an act of terrorism; or | ||
(3) is found to be registered in the national sex | ||
offender public website maintained by the United States Department | ||
of Justice or a successor agency. | ||
(c) A transportation network company shall conduct or cause | ||
to be conducted an annual criminal background check described by | ||
Subsection (a)(2) for each driver authorized to access the | ||
company's digital network. | ||
Sec. 2402.108. DIGITALLY PREARRANGED RIDES ONLY. A driver | ||
who is logged in to a digital network may not solicit or provide a | ||
ride for compensation unless the passenger has been matched to the | ||
driver through the digital network. | ||
Sec. 2402.109. 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. 2402.110. DISPLAY OF DIGITAL IDENTIFICATION. (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 or a government | ||
official enforcing or administering this chapter, 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. 2402.111. 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, Transportation Code; 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 | ||
may be owned, leased, or rented by, or otherwise made available to, | ||
the driver. | ||
(c) Section 547.607, Transportation Code, does not apply to | ||
a personal vehicle used to provide digitally prearranged rides. | ||
Sec. 2402.112. 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. | ||
(b) For the purposes of Subsection (a), "sex" means the | ||
physical condition of being male or female. | ||
(c) 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. | ||
(d) A transportation network company may not impose an | ||
additional charge for transportation of individuals with physical | ||
disabilities because of those disabilities. | ||
(e) 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. 2402.113. ACCESSIBILITY PILOT PROGRAM. (a) Each | ||
transportation network company shall conduct, for a period of two | ||
years beginning not later than the 90th day after the date the | ||
company is issued a permit under Section 2402.051, an accessibility | ||
pilot program in one of the four largest markets in which the | ||
company operates in this state to: | ||
(1) offer their services to disabled persons, | ||
including disabled persons using a fixed-frame wheelchair; and | ||
(2) ensure that, if necessary, referrals to alternate | ||
providers of wheelchair-accessible service are made in a manner | ||
that does not unreasonably delay the provision of service. | ||
(a-1) Notwithstanding Subsection (a), a transportation | ||
network company that is issued a permit under Section 2402.051 on or | ||
before January 1, 2018, shall begin the pilot program under | ||
Subsection (a) not later than that date. This subsection expires | ||
January 1, 2020. | ||
(b) Not later than the 100th day after the date a | ||
transportation network company begins a pilot program under | ||
Subsection (a), the company shall submit to the department a report | ||
demonstrating the company's compliance with Subsection (a). | ||
(c) A transportation network company shall provide a report | ||
on the findings of the company's pilot program to each legislative | ||
standing committee with primary jurisdiction over transportation | ||
not later than the 75th day after the date the program ends. At a | ||
minimum, the report must include information regarding: | ||
(1) the number of vehicles equipped to accommodate a | ||
passenger with a fixed-frame wheelchair that were available through | ||
the company's digital network in the market in which the pilot | ||
program was conducted at the time the program ended; | ||
(2) the average time elapsed between the time a | ||
fixed-frame wheelchair-bound passenger requested a ride and the | ||
time the ride began; | ||
(3) the number of rides provided to fixed-frame | ||
wheelchair-bound passengers during the duration of the program; and | ||
(4) the number of instances in which the company | ||
referred a fixed-frame wheelchair-bound passenger to another | ||
provider because the passenger could not be accommodated by the | ||
company. | ||
(d) The department: | ||
(1) shall: | ||
(A) by rule establish requirements for a report | ||
under Subsection (b); and | ||
(B) provide the transportation network company | ||
with notice of those requirements at the time the department issues | ||
the company's permit; and | ||
(2) may revoke the company's permit for failure to | ||
timely submit a report required under this section. | ||
Sec. 2402.114. 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 | ||
for all purposes, and not an employee of the company in any manner, | ||
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. 2402.115. AGREEMENTS WITH LOCAL ENTITIES FOR LARGE | ||
EVENTS. Notwithstanding Section 2402.003, a municipality or other | ||
local entity may contract with a transportation network company | ||
operating in the municipality's or entity's jurisdiction for the | ||
coordination of large events occurring in the municipality's or | ||
entity's jurisdiction. An agreement under this section: | ||
(1) may not exclude a transportation network company | ||
holding a permit under this chapter from providing services at the | ||
event; and | ||
(2) must have comparable terms for each company | ||
providing services at the event. | ||
SUBCHAPTER D. RECORDS AND OTHER INFORMATION | ||
Sec. 2402.151. RETENTION AND SUBMISSION OF RECORDS. (a) 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 five years | ||
after the date the ride was provided; and | ||
(3) driver records for at least five years after the | ||
date the driver ceases to be authorized to log in as a driver on the | ||
company's digital network. | ||
(b) The department shall provide a means for information | ||
required to be submitted for the purposes of this chapter to be | ||
submitted electronically. | ||
Sec. 2402.152. 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, including | ||
the department, 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, including the department, 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, including the department, | ||
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, including the | ||
department, 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. 2402.153. 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. | ||
Sec. 2402.154. DATA SHARING WITH MUNICIPALITY. A | ||
municipality and a transportation network company may voluntarily | ||
enter into an agreement under which the company shares the | ||
company's data with the municipality. | ||
SUBCHAPTER E. ENFORCEMENT | ||
Sec. 2402.201. PERMIT SUSPENSION OR REVOCATION. The | ||
department may suspend or revoke a permit issued to a | ||
transportation network company that violates a provision of this | ||
chapter. | ||
SECTION 2. A transportation network company operating under | ||
a municipal ordinance in a municipality of this state immediately | ||
before the effective date of this Act may operate at any location in | ||
this state without the permit required under Section 2402.051, | ||
Occupations Code, as added by this Act, until the later of: | ||
(1) the 30th day after the date rules adopted by the | ||
Texas Department of Licensing and Regulation to administer Section | ||
2402.051 become effective; or | ||
(2) the date the company's application for a permit | ||
under Section 2402.051 submitted to the department before the date | ||
described by Subdivision (1) of this section is approved or denied. | ||
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 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. | ||
______________________________ | ______________________________ | |
President of the Senate | Speaker of the House | |
I certify that H.B. No. 100 was passed by the House on April | ||
20, 2017, by the following vote: Yeas 110, Nays 35, 2 | ||
present, not | ||
voting. | ||
______________________________ | ||
Chief Clerk of the House | ||
I certify that H.B. No. 100 was passed by the Senate on May | ||
17, 2017, by the following vote: Yeas 21, Nays 9. | ||
______________________________ | ||
Secretary of the Senate | ||
APPROVED: _____________________ | ||
Date | ||
_____________________ | ||
Governor |