84R5723 JTS-F
	By: Paddie	H.B. No. 2440

	A BILL TO BE ENTITLED
	AN ACT
	relating to the regulation of transportation network companies;
	imposing and authorizing fees; requiring an occupational permit.
	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
	Sec. 2402.001.  DEFINITIONS. In this chapter:
	(1)  "Department" means the Texas Department of Motor
	Vehicles.
	(2)  "Transportation network company" means an entity
	that uses a digital network or software application service to
	connect passengers to transportation network services provided by
	transportation network drivers.
	(3)  "Transportation network driver" means an
	individual who operates a motor vehicle that is:
	(A)  owned, leased, or otherwise authorized for
	use by the individual; and
	(B)  used to provide transportation network
	services.
	(4)  "Transportation network services" means
	transportation of a passenger between points chosen by the
	passenger and prearranged with a transportation network driver
	through the use of a transportation network company's digital
	network or software application. The term includes services
	beginning from the acceptance of a request for transportation
	received through the transportation network company's digital
	network or software application service and terminating when the
	passenger exits the transportation network driver's vehicle.
	Sec. 2402.002.  NATURE OF TRANSPORTATION NETWORK COMPANIES,
	DRIVERS, AND VEHICLES. (a) Transportation network companies and
	transportation network drivers are not common carriers, contract
	carriers, or motor carriers and do not provide taxicab, for-hire,
	or street hail service.
	(b)  A transportation network company:
	(1)  does not own, control, operate, or manage vehicles
	used by transportation network drivers; and
	(2)  is not a taxicab company or for-hire vehicle
	owner.
	Sec. 2402.003.  PERMIT REQUIRED; FEE. (a) A person may not
	operate a transportation network company in this state without
	obtaining and maintaining a permit issued by the department.
	(b)  The department shall issue a permit to each applicant
	that meets the requirements of this chapter and pays the fee
	required by Subsection (c).
	(c)  A transportation network company must pay a fee of
	$5,000 annually to the department to maintain a permit under this
	chapter.
	(d)  The department may suspend or revoke a permit issued to
	a transportation network company that violates a provision of this
	chapter.
	Sec. 2402.004.  AGENT. A transportation network company
	shall maintain an agent for service of process in this state.
	Sec. 2402.005.  FARES. A transportation network company
	charging a fare for its services shall:
	(1)  disclose to passengers the fare calculation method
	on the company's Internet website or within the company's software
	application service; and
	(2)  before a passenger enters the transportation
	network driver's vehicle, provide the passenger with:
	(A)  the applicable rates being charged for the
	service; and
	(B)  the option to receive an estimated fare.
	Sec. 2402.006.  IDENTIFICATION OF VEHICLES AND DRIVERS. The
	transportation network company's software application or Internet
	website must display, before the passenger enters the
	transportation network driver's vehicle:
	(1)  a picture of the transportation network driver;
	and
	(2)  the vehicle's license plate number.
	Sec. 2402.007.  ELECTRONIC RECEIPT. Within a reasonable
	period of time following the completion of a trip, a transportation
	network company shall transmit an electronic receipt to the
	passenger that lists:
	(1)  the origin and destination of the trip;
	(2)  the total time and distance of the trip; and
	(3)  an itemization of the total fare paid, if any.
	Sec. 2402.008.  INSURANCE. (a)  During the time that a
	transportation network driver is logged into a transportation
	network company's digital network but not providing transportation
	network services, financial responsibility for the driver's
	vehicle must be established as required under Chapter 601,
	Transportation Code, except that the motor vehicle liability
	insurance policy must be an owner's or operator's policy that is
	issued by:
	(1)  an insurance company authorized to write motor
	vehicle liability insurance in this state; or
	(2)  a surplus lines insurer under Chapter 981,
	Insurance Code.
	(b)  The requirements of Subsection (a) may be satisfied by a
	combination of insurance policies maintained by the transportation
	network company or transportation network driver, including a motor
	vehicle liability insurance policy that provides coverage in the
	event the driver's policy excludes coverage according to its terms.
	(c)  During the time that a transportation network driver is
	providing transportation network services, the transportation
	network company must establish financial responsibility for the
	driver's vehicle through a motor vehicle liability insurance policy
	that:
	(1)  provides coverage of at least $1 million per
	accident for bodily injury and property damage; and
	(2)  is issued by an insurer described by Subsection
	(a).
	(d)  The requirements of Subsection (c) may be satisfied by a
	combination of insurance policies maintained by the transportation
	network company or transportation network driver.
	(e)  A transportation network driver involved in an accident
	while providing transportation network services shall:
	(1)  provide proof that the vehicle involved in the
	accident is insured as required by this section at the time of the
	accident; and
	(2)  notify the transportation network company of the
	accident.
	Sec. 2402.009.  ZERO-TOLERANCE POLICY FOR DRUG OR ALCOHOL
	USE. (a) A transportation network company shall:
	(1)  implement a zero-tolerance policy that prohibits a
	transportation network driver from using or being under the
	influence of drugs or alcohol when the driver:
	(A)  is providing transportation network
	services; or
	(B)  is logged into the transportation network
	company's digital network but is not providing transportation
	network services; and
	(2)  post on its Internet website:
	(A)  notice of the policy; and
	(B)  procedures to report a complaint about a
	driver with whom a passenger was matched and who the passenger
	reasonably suspects was using or was under the influence of drugs or
	alcohol during the course of the trip.
	(b)  On receipt of a passenger complaint alleging a violation
	of the zero-tolerance policy, the transportation network company
	shall:
	(1)  conduct an investigation into the reported
	incident; and
	(2)  immediately suspend the transportation network
	driver's access to the company's digital network for the duration of
	the investigation.
	(c)  The 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. 2402.010.  DRIVER REQUIREMENTS. (a) Before allowing an
	individual to act as a transportation network driver on its digital
	network, a transportation network company shall:
	(1)  require the individual to submit an application to
	the company, which must include information regarding the person's
	address, age, driver's license, driving history, motor vehicle
	registration, motor vehicle liability insurance, and other
	information required by the company;
	(2)  conduct, or have a third party conduct, a local and
	national criminal background check for each applicant that includes
	the use of:
	(A)  a commercial multistate and
	multi-jurisdiction criminal records locator with primary source
	validation; and
	(B)  the national sex offender registry database
	maintained by the United States Department of Justice or successor
	agency; and
	(3)  obtain and review the person's driving record.
	(b)  The transportation network company may not permit to act
	as a transportation network driver on its digital network a person
	who:
	(1)  has been convicted of:
	(A)  more than three offenses classified by the
	Department of Public Safety as moving violations in the preceding
	three-year period; or
	(B)  one of the following offenses in the
	preceding three-year period:
	(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 driving while intoxicated under Section 49.04 or 49.045,
	Penal Code;
	(3)  has been convicted at any time of:
	(A)  fraud;
	(B)  a sexual offense; or
	(C)  use of a motor vehicle to commit:
	(i)  a felony;
	(ii)  a crime involving property damage;
	(iii)  theft;
	(iv)  an act of violence; or
	(v)  an offense of making a terroristic
	threat;
	(4)  is a match in the national sex offender registry
	database;
	(5)  does not possess a valid driver's license;
	(6)  does not possess proof of registration or
	financial responsibility for the motor vehicle used to provide
	transportation network services; or
	(7)  is younger than 19 years of age.
	Sec. 2402.011.  VEHICLE SAFETY AND EMISSIONS. A
	transportation network company shall require that each motor
	vehicle that a transportation network driver will use to provide
	transportation network services meets the requirements of Chapter
	548, Transportation Code.
	Sec. 2402.012.  NO STREET HAILS. A transportation network
	driver may accept only rides booked through a transportation
	network company's digital network or software application service
	and may not solicit or accept street hails.
	Sec. 2402.013.  NO CASH TRIPS. The transportation network
	company shall prohibit solicitation or acceptance of cash payments
	from passengers and notify transportation network drivers of the
	prohibition. A transportation network driver may not solicit or
	accept cash payments from passengers. Payment for transportation
	network services may be made only electronically using the
	transportation network company's digital network or software
	application.
	Sec. 2402.014.  NO DISCRIMINATION; ACCESSIBILITY. (a) A
	transportation network company shall adopt a policy of
	nondiscrimination on the basis of destination, race, color,
	national origin, religious belief or affiliation, sex, disability,
	age, sexual orientation, or gender identity with respect to
	passengers and potential passengers and notify transportation
	network drivers of the policy.
	(b)  A transportation network driver shall comply with all
	applicable laws regarding nondiscrimination against passengers or
	potential passengers on the basis of destination, race, color,
	national origin, religious belief or affiliation, sex, disability,
	age, sexual orientation, or gender identity.
	(c)  A transportation network driver shall comply with all
	applicable laws relating to accommodation of service animals.
	(d)  A transportation network company may not impose
	additional charges for providing services to persons with physical
	disabilities because of those disabilities.
	(e)  A transportation network company shall provide
	passengers an opportunity to indicate whether they require a
	wheelchair-accessible vehicle. If a transportation network company
	is unable to arrange wheelchair-accessible transportation network
	service, the company shall direct the passenger to an alternate
	provider of wheelchair-accessible service, if available.
	Sec. 2402.015.  ACCESSIBLE TRANSPORTATION; SURCHARGE. (a)
	The department may impose a fee, not to exceed $10,000 annually, on
	transportation network companies, taxicab companies, and limousine
	and other for-hire vehicle companies that do not provide
	wheelchair-accessible service and deposit the fees into an account
	in the general revenue fund to provide grants to transportation
	network companies, taxicab companies, and limousine and other
	for-hire vehicle companies that provide wheelchair-accessible
	service.
	(b)  A grant distributed under Subsection (a):
	(1)  may be in an amount not to exceed $15,000; and
	(2)  may be distributed only to a company that meets a
	minimum level of service as determined by department rule.
	Sec. 2402.016.  RECORDS. A transportation network company
	shall maintain:
	(1)  individual trip records for at least one year
	after the date the trip was provided; and
	(2)  transportation network driver records at least
	until the first anniversary of the date on which a transportation
	network driver's activation on the company's digital network has
	ended.
	Sec. 2402.017.  PERSONALLY IDENTIFIABLE INFORMATION. (a) A
	transportation network company may not disclose a passenger's
	personally identifiable information to a third party unless:
	(1)  the passenger consents to the disclosure;
	(2)  disclosure is required by a legal obligation; or
	(3)  disclosure is required to:
	(A)  protect or defend the terms of use of the
	service; or
	(B)  investigate violations of those terms.
	(b)  In addition to the disclosures authorized under
	Subsection (a), a transportation network company may share a
	passenger's name or telephone number with the transportation
	network driver providing transportation network services to the
	passenger to facilitate correct identification of the passenger by
	the transportation network driver or to facilitate communication
	between the passenger and the transportation network driver.
	Sec. 2402.018.  CONTROLLING AUTHORITY. Notwithstanding any
	other provision of law, transportation network companies and
	transportation network drivers are governed exclusively by this
	chapter and any rules adopted by the department under this chapter.
	A municipality or other local entity may not:
	(1)  impose a tax on, or require a license for, a
	transportation network company or a transportation network driver;
	or
	(2)  subject a transportation network company or
	transportation network driver to the municipality's or other local
	entity's rate, entry, operational, or other requirements.
	SECTION 2.  This Act takes effect September 1, 2015.