85R5818 JTS-F
 
  By: Paddie, Thompson of Harris, Nevárez, H.B. No. 100
      Kuempel, et al.
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  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 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 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.
  Regulations under this subsection may not:
               (1)  conflict with the requirements of this chapter; or
               (2)  include requirements for drivers in addition to
  those under Section 2402.107.
         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 of $5,000 to maintain a
  permit under 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.  PAYMENT; ELECTRONIC RECEIPT. (a) A driver
  providing a digitally prearranged ride may 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. 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; 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 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 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 in the national sex offender
  registry database maintained by the United States Department of
  Justice or a successor agency.
         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.  PAYMENT ONLY THROUGH DIGITAL NETWORK. A
  driver may receive payment for a digitally prearranged ride only
  through the digital network and may not solicit or accept cash
  payments from a passenger.
         Sec. 2402.110.  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. 2402.111.  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. 2402.112.  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:
               (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. 2402.113.  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 may 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. 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,
  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.
  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 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.
         (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.
  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.  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 3.  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.