By: Paddie, et al. (Senate Sponsor - Schwertner)	H.B. No. 100
	(In the Senate - Received from the House April 24, 2017;
	May 9, 2017, read first time and referred to Committee on State
	Affairs; May 12, 2017, reported favorably by the following vote:
	Yeas 8, Nays 1; May 12, 2017, sent to printer.)
Click here to see the committee vote

	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 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.
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