Bill Text: NH HB1697 | 2016 | Regular Session | Chaptered


Bill Title: Relative to the operation and insurance of transportation network companies.

Spectrum: Bipartisan Bill

Status: (Passed) 2016-06-22 - Signed by Governor Hassan 06/21/2016; Chapter 290; Eff. 6/21/2016 [HB1697 Detail]

Download: New_Hampshire-2016-HB1697-Chaptered.html

CHAPTER 290

HB 1697-FN - FINAL VERSION

4Feb2016... 0176h

4Feb2016... 0405h

10Mar2016... 0876h

04/28/2016   1510s

1June2016... 2071CofC

2016 SESSION

16-2957

06/04

 

HOUSE BILL 1697-FN

 

AN ACT relative to the operation and insurance of transportation network companies.

 

SPONSORS: Rep. Hunt, Ches. 11; Rep. J. Belanger, Hills. 27; Rep. Steven Smith, Sull. 11; Sen. Soucy, Dist 18; Sen. Fuller Clark, Dist 21

 

COMMITTEE: Transportation

 

-----------------------------------------------------------------

 

ANALYSIS

 

This bill requires the department of safety to regulate the operation and insurance of transportation network companies.

 

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

 

Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

4Feb2016... 0176h 16-2957

4Feb2016... 0405h 06/04

10Mar2016... 0876h

04/28/2016   1510s

1June2016... 2071CofC

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Sixteen

 

AN ACT relative to the operation and insurance of transportation network companies.

 

Be it Enacted by the Senate and House of Representatives in General Court convened:

 

290:1  New Chapter; Transportation Network Company.  Amend RSA by inserting after chapter 376 the following new chapter:

CHAPTER 376-A

TRANSPORTATION NETWORK COMPANY

376-A:1  Definitions.  In this chapter:

I.  "Department" means the department of safety.

II.  "Digital network" means any online enabled technology application service, website, or system offered or utilized by a transportation network company that enables the prearrangement of rides with transportation network company drivers.

III.  "Personal vehicle" means a vehicle that is used by a transportation network company driver to provide a prearranged ride and is:

(a)  Owned, leased, or otherwise authorized for use by the transportation network company driver; and

(b)  Not a motor carrier or taxicab under RSA 376:2.

IV.  "Prearranged ride" means the provision of transportation by a driver to a rider, beginning when a driver accepts a ride requested by a rider through a digital network controlled by a transportation network company, continuing while the driver transports a requesting rider, and ending when the last requesting rider departs from the personal vehicle.  A prearranged ride does not include transportation provided through any of the following:

(a)  A motor carrier or taxicab as defined in RSA 376:2.

(b)  Shared expense carpool or vanpool arrangements.

(c)  A regional transportation provider.

V.  "Transportation network company" (TNC) means a corporation, partnership, sole proprietorship, or other entity, that has a permit issued by the department and is operating in New Hampshire, that uses a digital network to connect transportation network company riders to transportation network company drivers who provide prearranged rides.  A transportation network company shall not be deemed to control, direct, or manage the personal vehicles or transportation network company drivers that connect to its digital network, except where agreed to by written contract.

VI.  "Transportation network company driver" (TNC driver) means an individual who:

(a)  Receives connections to potential passengers and related services from a transportation network company in exchange for payment of a fee to the transportation network company; and

(b)  Uses a personal vehicle to offer or provide a prearranged ride to riders upon connection through a digital network controlled by a transportation network company in return for compensation or payment of a fee.

VII.  "Transportation network company rider" (rider) means a person who uses a transportation network company's digital network to connect with a transportation network driver who provides prearranged rides to the rider in the driver's personal vehicle between points chosen by the rider.

376-A:2  Not Other Carriers.  No TNC or TNC driver is a motor carrier, nor do they provide taxicab services pursuant to RSA 376:2.  No TNC or TNC driver shall be required to:

I.  Apply for a common carrier certificate under RSA 376:4 or a contract carrier permit under RSA 376:7; or

II.  Register personal vehicles under RSA 376:24.

376-A:3  TNC Permit Required.  No person shall operate a TNC in New Hampshire without first having obtained a permit from the department, provided that any transportation network company operating in the state before the effective date of this chapter may continue to operate in the state until the department establishes a permit process and provides a reasonable period in which to apply for and obtain a permit.  The department shall issue a permit to each applicant that meets the requirements for a TNC under this chapter, and pays an annual permit fee of $500 to the department.  The permit shall be issued annually and shall be effective on the date of issue.

376-A:4  Agent.  Every TNC shall appoint an agent for service of process in the state of New Hampshire.

376-A:5  Fare.  On behalf of a TNC driver, a TNC may charge a fare for the services provided to riders provided that if a fare is collected from a rider, the TNC shall disclose to the rider the fare or the fare calculation method on its website, within the vehicle, or on the online application service.  The TNC shall also provide riders with the applicable rates being charged and the option to receive an estimated fare before the rider enters the TNC driver's vehicle.

376-A:6  Identification of TNC Vehicles and Drivers.  The TNC’s digital network or website shall display a picture of the TNC driver, and the license plate number of the motor vehicle utilized for providing the prearranged ride before the rider enters the TNC driver’s vehicle.

376-A:7  Receipt.  Within a reasonable period of time following the completion of a trip, a TNC shall transmit an itemized receipt to the rider on behalf of the TNC driver.

376-A:8  Financial Responsibility of TNCs.  On the effective date of this chapter and thereafter:

I.  Every TNC driver, or TNC on behalf of the driver, shall maintain primary motor vehicle insurance that recognizes that the driver is a TNC driver or otherwise uses a vehicle to transport passengers for compensation and covers the driver:

(a)  While the driver is logged on to the TNC's digital network; or

(b)  While the driver is engaged in a prearranged ride.

II.  The following motor vehicle insurance requirements shall apply while a participating TNC driver is logged on to the TNC's digital network but is not engaged in a prearranged ride:

(a)  Primary motor vehicle liability insurance, consistent with RSA 259:61, in the amount of at least $50,000 for death and bodily injury per person; $100,000 for death and bodily injury per incident; and $25,000 for property damage, including the duty to defend.

(b)  Coverage consistent with New Hampshire financial responsibility laws.

III.  The coverage requirements of paragraph II may be satisfied by any of the following:

(a)  Motor vehicle insurance maintained by the TNC driver;

(b)  Motor vehicle insurance maintained by the TNC; or

(c)  Any combination of subparagraphs (a) and (b).

IV.  The following motor vehicle insurance requirements shall apply while a TNC driver is engaged in a prearranged ride:

(a)  Primary automobile liability insurance that provides at least $300,000 for death, bodily injury, and property damage.

(b)  Coverage consistent with New Hampshire financial responsibility laws.

V.  The coverage requirements of paragraph IV may be satisfied by any of the following:

(a)  Motor vehicle insurance maintained by the TNC driver;

(b)  Motor vehicle insurance maintained by the TNC; or

(c)  Any combination of subparagraphs (a) and (b).

VI.  If insurance maintained by the TNC driver in paragraphs II and IV has lapsed or does not provide the required coverage, insurance maintained by the TNC shall provide the coverage required by this section beginning with the first dollar of a claim and shall have the duty to defend and indemnify such claim.

VII.  Coverage under a motor vehicle insurance policy maintained by the TNC shall not be dependent on a personal motor vehicle insurer first denying a claim nor shall a personal motor vehicle insurance policy be required to first deny a claim.

VIII.  Insurance required by this section shall be placed with an admitted insurer that has the requisite certificate of authority to write motor vehicle insurance pursuant to RSA 401:1.  Insurance required under this section may be placed with an unadmitted surplus lines insurer consistent with the provisions of RSA 405:24 through RSA 405:31, that has a credit rating of no less than "A-" from A.M. Best or "A" from Demotech or a similar rating from another rating agency recognized by the insurance department.

IX.  Every TNC driver shall carry physical or electronic proof of coverage satisfying paragraphs II and IV with him or her at all times during his or her use of a vehicle in connection with a TNC's digital network.  In the event of an accident, a TNC driver shall provide this insurance coverage information to the directly interested parties, automobile insurers, and investigating police officers.  Upon request, a TNC driver shall also disclose to directly interested parties, automobile insurers, and investigating police officers, whether he or she was logged on to the TNC's digital network or on a prearranged ride at the time of an accident.

376-A:9  Disclosures.  Every TNC shall disclose in writing to the TNC driver the following:

I.  The insurance coverage, including the types of coverage and the limits for each coverage, that the TNC provides while the TNC driver uses a personal vehicle in connection with a TNC's digital network.

II.  That the TNC driver's own motor vehicle insurance policy might not provide any coverage while the TNC driver is logged on to the TNC's digital network or is engaged in a prearranged ride, depending on its terms.

III.  That the TNC driver shall contact the driver's personal vehicle insurer or insurance producer and lienholder to advise the insurer or producer and lienholder that the driver will be providing TNC services.

IV.  That if the personal vehicle that the TNC driver uses to provide TNC services has a lien against it, using the personal vehicle for TNC services without physical damage coverage may violate the terms of the contract with the lienholder.

V.  That if a TNC's insurer makes a payment for a claim covered under comprehensive coverage or collision coverage, the TNC shall cause its insurer to issue the payment directly to the business repairing the personal vehicle or jointly to the owner of the personal vehicle and the primary lienholder on the covered personal vehicle.

376-A:10  Motor Vehicle Insurance Provisions.

I.(a)  Insurers that write motor vehicle insurance in New Hampshire may exclude any and all coverage afforded under the policy issued to an owner or operator of a personal vehicle for any loss or injury that occurs while a TNC driver is logged on to a TNC's digital network or while a driver provides a prearranged ride.  The right to exclude all coverage may apply to any coverage included in a motor vehicle insurance policy including, but not limited to:

(1)  Liability coverage for bodily injury and property damage.

(2)  Uninsured and under insured motorist coverage.

(3)  Medical payments coverage.

(4)  Comprehensive physical damage coverage.

(5)  Collision physical damage coverage.

(b)  If the coverage has been excluded under this paragraph, and the insurance required to be maintained by the TNC driver under RSA 376-A:8, II and IV has lapsed or does not provide the required coverage, the state financial responsibility requirements in RSA 259:61, I, including costs of defense, shall be satisfied by the TNC's motor vehicle insurance policy, beginning with the first dollar of a claim.  Nothing in this section implies or requires that a personal motor vehicle insurance policy provide coverage while the TNC driver is logged on to the TNC's digital network, while the TNC driver is engaged in a prearranged ride, or while the TNC driver otherwise uses a vehicle to transport passengers for compensation.  Nothing in this section shall be construed to require an insurer to use any particular policy language or reference to this section in order to exclude any and all coverage for any loss or injury that occurs while a driver is logged on to a TNC's digital network or while a TNC driver provides a prearranged ride.  Nothing in this section shall be deemed to preclude an insurer from providing primary or excess coverage for the TNC driver's vehicle, if it chooses to do so by contract or endorsement.

II.  No automobile insurer that excludes the coverage described in RSA 376-A:8 shall have a duty to defend or indemnify any claim expressly excluded thereunder.  Nothing in this section shall be deemed to invalidate or limit an exclusion contained in a policy, including any policy in use or approved for use in New Hampshire prior to the enactment of this chapter, that excludes coverage for vehicles used to carry persons or property for a charge or available for hire by the public.  An automobile insurer that defends or indemnifies a claim against a driver that is excluded under the terms of its policy, shall have a right of contribution against other insurers that provide automobile insurance to the same driver in satisfaction of the coverage requirements of RSA 376-A:8 at the time of loss.

III.  In a claims coverage investigation, TNCs shall immediately provide, upon request by 3 directly involved parties or any insurer of the TNC driver if applicable, the precise times that a TNC driver logged on and off of the TNC's digital network in the 12-hour period immediately preceding and in the 12-hour period immediately following the accident.  Insurers under RSA 376-A:8 shall disclose, upon request by any other insurer involved in the particular claim, the applicable coverage, exclusions, and limits provided under any automobile insurance maintained under RSA 376-A:8.

376-A:11  Zero Tolerance for Drug or Alcohol Use.

I.  The TNC shall implement a zero tolerance policy regarding a TNC driver's activities while accessing the TNC's digital platform.  The zero tolerance policy shall address the use of drugs or alcohol while a TNC driver is providing prearranged rides or is logged into the TNC's digital  network but is not providing prearranged rides, and the TNC shall provide notice of this policy on its website, as well as procedures to report a complaint about a TNC driver with whom a rider was matched and whom the rider reasonably suspects was under the influence of drugs or alcohol during the course of the trip.

II.  Upon receipt of such rider complaint alleging a violation of the zero tolerance policy, the TNC shall suspend such TNC driver's access to the TNC's digital platform as soon as possible, and shall conduct an investigation into the reported incident.  The suspension shall last the duration of the investigation.

III.  The TNC shall maintain records relevant to the enforcement of this requirement for a period of at least 2 years from the date that a rider complaint is received by the TNC.  The suspension shall last the duration of the investigation.

376-A:12  TNC Driver Requirements.

I.  Before allowing an individual to accept trip requests through a TNC's digital platform:

(a)  The individual shall submit an application to the TNC, which includes information regarding his or her address, age, driver's license, motor vehicle registration, automobile liability insurance, and other information required by the TNC.

(b)  The TNC shall conduct, or have a third party conduct, a local and national criminal background check for each applicant that shall include:

(1)  Multi-state/multi-jurisdiction criminal records locator or other similar commercial nationwide database with validation (primary source search); and

(2)  U.S. Department of Justice National Sex Offender Public Website.

(c)  The TNC shall obtain and review, or have a third party obtain and review, a driving history research report from such individual.

II.  No individual shall act as a TNC driver on the TNC's digital platform who:

(a)  Has had more than 3 moving violations in the prior 3-year period, or one major violation in the prior 3-year period, including, but not limited to, attempting to evade the police, reckless driving, or driving with a suspended or revoked license.

(b)  Has been convicted, within the past 7 years, of driving under the influence of drugs or alcohol, fraud, sexual offenses, use of a motor vehicle to commit a felony, a crime involving property damage, and/or theft, acts of violence, or acts of terror.

(c)  Is a match on the United States Department of Justice National Sex Offender Public Website.

(d)  Does not possess a valid driver's license.

(e)  Does not possess proof of registration for the motor vehicle used to provide prearranged rides.

(f)  Does not possess proof of automobile liability insurance for the motor vehicle used to provide prearranged rides.

(g)  Is not at least 19 years of age.

376-A:13  Vehicle Safety.  Prior to permitting a TNC driver to accept trip requests through the TNC's digital platform, the TNC shall ensure that the TNC driver's personal vehicle meets New Hampshire's vehicle safety requirements for private motor vehicles.

378-A:14  Street Hails Prohibited.  No TNC driver shall solicit or accept street hails.

376-A:15  Discrimination Prohibited; Accessibility.

I.  The TNC 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 riders and potential riders and notify TNC drivers of such policy.

II.  TNC drivers shall comply with all applicable laws regarding nondiscrimination against riders or potential riders on the basis of destination, race, color, national origin, religious belief or affiliation, sex, disability, age, sexual orientation, or gender identity.

III.  TNC drivers shall comply with all applicable laws relating to accommodation of service animals.

IV.  No TNC shall impose additional charges for providing services to persons with physical disabilities because of such disabilities.

V.  Every TNC shall provide riders an opportunity to indicate whether they require a wheelchair accessible vehicle.  If a TNC cannot arrange a wheelchair accessible prearranged ride in any instance, it shall direct the rider to an alternate provider of wheelchair accessible service, if available.

376-A:16  Records.  Every TNC shall maintain the following customer records:

I.  Individual trip records for at least one year from the date each trip was provided.

II.  TNC driver records at least until the one year anniversary of the date on which a TNC driver's customer relationship with the TNC has ended.

376-A:17  Controlling Authority.  Notwithstanding any other provision of law, TNCs and TNC drivers are governed exclusively by this chapter and any rules by the department of safety consistent with this chapter.  No municipality or other local entity may impose a tax on, or require a license for, a TNC, a TNC driver, or a vehicle used by a TNC driver where such tax or licenses relates to providing prearranged rides, or subject a TNC to the municipality's or other local entity's rate, entry, operational, or other requirements.

376-A:18  Penalties.  The department shall adopt rules pursuant to RSA 541-A for penalties, including:

I.  The department may assess an administrative penalty for violations of this chapter in an amount not to exceed $500 for a first offense and $1,000 for a subsequent offense.  Failure to pay such a penalty shall result in revocation of the TNC permit.

II.  The department may suspend or revoke the TNC permit for repeated violations of this chapter.

III.  Any person who subverts the intent and purposes of this chapter by filing false, misleading, or substantially inaccurate statements with the department shall be guilty of a violation.

376-A:19  General Duties and Powers of the Commissioner; Rulemaking; Confidentiality of TNC Records.

I.  The commissioner shall regulate transportation network companies.

II.  The commissioner shall administer and enforce RSA 376-A and shall adopt rules, pursuant to RSA 541-A, relative to the administration of RSA 376-A.

III.  The commissioner may adopt rules, pursuant to RSA 541-A, relative to:

(a)  Audits for compliance with this chapter and rules relative to the administration of RSA 376-A;

(b)  Procedures for permit application and renewal;

(c)  Account and record systems;

(d)  Preservation of records and accounts; and

(e)  Procedures for investigating and disposing of complaints, including a hearing process.

IV.  Any rider, driver, trip, or financial records inspected by the department or any duly authorized representative of the department under this chapter are designated confidential, are not subject to disclosure to a third party by the department or duly authorized representative of the department without the prior written consent of the transportation network company, and are exempt from disclosure under the RSA 91-A.  Nothing in this section shall be construed as limiting the applicability of any other exemptions under RSA 91-A.

290:2  Effective Date.  This act shall take effect upon its passage.

Approved: June 21, 2016

Effective Date: June 21, 2016

 

 

 

feedback