Bill Text: TX HB2440 | 2015-2016 | 84th Legislature | Comm Sub
Bill Title: Relating to transportation network companies; imposing and authorizing fees; requiring an occupational permit; authorizing a civil penalty.
Spectrum: Moderate Partisan Bill (Republican 15-2)
Status: (Introduced - Dead) 2015-05-04 - Committee report sent to Calendars [HB2440 Detail]
Download: Texas-2015-HB2440-Comm_Sub.html
84R22029 JTS-F | |||
By: Paddie, Larson, Kuempel, | H.B. No. 2440 | ||
Rodriguez of Bexar, Fletcher, et al. | |||
Substitute the following for H.B. No. 2440: | |||
By: Pickett | C.S.H.B. No. 2440 |
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relating to transportation network companies; imposing and | ||
authorizing fees; requiring an occupational permit; authorizing a | ||
civil penalty. | ||
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) "Board" means the board of the department. | ||
(2) "Department" means the Texas Department of Motor | ||
Vehicles. | ||
(3) "Digital network" means any online-enabled | ||
application, software, website, or system offered or used by a | ||
transportation network company that enables the prearrangement of a | ||
ride with a transportation network driver. | ||
(4) "Personal vehicle" means a vehicle that is used by | ||
a transportation network driver and is: | ||
(A) owned, leased, or otherwise authorized for | ||
use by the driver; and | ||
(B) not a taxicab, limousine, or similar for-hire | ||
vehicle. | ||
(5) "Transportation network company" means a | ||
corporation, partnership, sole proprietorship, or other entity | ||
operating in this state that uses a digital network to connect a | ||
transportation network rider to transportation network services | ||
provided by a transportation network driver. The term does not | ||
include an entity arranging nonemergency medical transportation | ||
under a contract with the state or a managed care organization for | ||
individuals qualifying for Medicaid or Medicare. | ||
(6) "Transportation network driver" means an | ||
individual who: | ||
(A) receives connections to potential | ||
transportation network riders and related services from a | ||
transportation network company in exchange for payment of a fee to | ||
the company; and | ||
(B) uses a personal vehicle to offer or provide | ||
transportation network services to a transportation network rider | ||
on connection with the rider through a digital network controlled | ||
by the company in exchange for compensation or payment of a fee. | ||
(7) "Transportation network rider" means an | ||
individual who uses a transportation network company's digital | ||
network to connect with a transportation network driver who | ||
provides transportation network services to the individual in the | ||
driver's personal vehicle between points chosen by the individual. | ||
(8) "Transportation network services" means | ||
transportation provided by a transportation network driver to a | ||
transportation network rider, beginning at the time the driver | ||
accepts a ride requested by the rider through a digital network | ||
controlled by a transportation network company, continuing while | ||
the driver transports the rider, and ending at the time the last | ||
requesting rider departs from the driver's personal vehicle. The | ||
term does not include transportation provided using a taxicab, | ||
limousine, or other similar for-hire vehicle authorized to be | ||
licensed under Section 215.004, Local Government Code, or Section | ||
22.081, Transportation Code. | ||
Sec. 2402.002. NATURE OF TRANSPORTATION NETWORK COMPANIES, | ||
DRIVERS, AND VEHICLES. (a) Transportation network companies and | ||
transportation network drivers: | ||
(1) are not common carriers, contract carriers, or | ||
motor carriers; and | ||
(2) do not provide: | ||
(A) taxicab, limousine, or similar for-hire | ||
service; or | ||
(B) street hail service. | ||
(b) A transportation network company: | ||
(1) except as agreed by written contract: | ||
(A) does not control, direct, or manage a | ||
transportation network driver who connects to the company's digital | ||
network; and | ||
(B) does not own, control, operate, or manage | ||
personal vehicles used by transportation network drivers; and | ||
(2) is not a taxicab company or for-hire vehicle | ||
owner. | ||
Sec. 2402.003. CONTROLLING AUTHORITY. (a) 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 board under this chapter. | ||
Except as provided by Subsection (b) or (c), 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. | ||
(b) This chapter does not supersede a municipal, county, or | ||
other local government regulation regarding transportation network | ||
services at an airport. | ||
(c) This chapter does not prohibit a municipality from | ||
requiring by ordinance a transportation network company to access | ||
the electronic clearinghouse and subscription service under | ||
Section 411.0845, Government Code, for transportation network | ||
drivers. | ||
Sec. 2402.004. DRIVER AS COMMERCIAL TRANSPORTATION | ||
COMPANY. A transportation network driver is a commercial | ||
transportation company for the purposes of Chapter 660, Government | ||
Code. | ||
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 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 Section 2402.052. | ||
Sec. 2402.052. FEE. (a) A transportation network company | ||
must pay a fee of $115,000 annually to the department to maintain a | ||
permit under this chapter. | ||
(b) A fee collected by the department under this section | ||
shall be deposited to the credit of the Texas Department of Motor | ||
Vehicles fund. | ||
Sec. 2402.053. PERMIT APPLICATION. (a) An application for | ||
a transportation network company permit must be on a form | ||
prescribed by the department. The application must include | ||
information that meets the requirements of this chapter and | ||
information the board by rule determines is necessary to determine | ||
the applicant's qualifications to adequately serve the public. | ||
(b) The applicant shall notify the department of any | ||
material change in the information included in an application not | ||
later than the 10th calendar day after the date the change occurs. | ||
The department shall prescribe a form for the disclosure of | ||
material changes. | ||
Sec. 2402.054. TERM; RENEWAL. (a) A permit issued under | ||
this chapter is valid for two years. The department shall prescribe | ||
the form and requirements necessary to apply for a renewal of a | ||
permit. | ||
(b) The department shall notify each person holding a permit | ||
under this chapter of the date of permit expiration and the amount | ||
of the fee required for permit renewal. The department shall send | ||
the notice not later than the 30th day before the date of the permit | ||
expiration. | ||
SUBCHAPTER C. OPERATION OF TRANSPORTATION NETWORK COMPANIES | ||
Sec. 2402.101. AGENT. A transportation network company | ||
shall maintain an agent for service of process in this state. | ||
Sec. 2402.102. FARES. A transportation network company | ||
charging a fare for its services shall: | ||
(1) disclose to transportation network riders the fare | ||
calculation method within the company's software application | ||
service or on the company's Internet website; and | ||
(2) before a transportation network rider enters the | ||
transportation network driver's personal vehicle, provide the | ||
rider with: | ||
(A) the applicable rates being charged for the | ||
service; and | ||
(B) the option to receive an estimated fare. | ||
Sec. 2402.103. IDENTIFICATION OF VEHICLES AND DRIVERS. The | ||
transportation network company's software application or Internet | ||
website must display, before a transportation network rider enters | ||
the transportation network driver's personal vehicle: | ||
(1) a picture of the transportation network driver; | ||
and | ||
(2) the vehicle's license plate number. | ||
Sec. 2402.104. 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 | ||
transportation network rider 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. 2402.105. INSURANCE. Insurance requirements for | ||
transportation network companies and transportation network | ||
drivers are governed by Chapter 1954, Insurance Code. | ||
Sec. 2402.106. 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 on to 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 transportation network rider was matched and who | ||
the rider reasonably suspects was using or was under the influence | ||
of drugs or alcohol during the course of the trip. | ||
(b) On receipt of a 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. 2402.107. 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 | ||
individual'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 individual that | ||
includes the use of: | ||
(A) a commercial multistate and | ||
multijurisdiction 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 individual's driving record. | ||
(b) The transportation network company may not permit to act | ||
as a transportation network driver on its digital network an | ||
individual 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) evading arrest or detention under | ||
Section 38.04, Penal 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; | ||
(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; or | ||
(D) an offense listed in Section 3g(a)(1), | ||
Article 42.12, Code of Criminal Procedure; | ||
(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. 2402.108. 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. 2402.109. 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. 2402.110. NO CASH TRIPS. The transportation network | ||
company shall prohibit solicitation or acceptance of cash payments | ||
from transportation network riders and notify transportation | ||
network drivers of the prohibition. A transportation network | ||
driver may not solicit or accept cash payments from riders. Payment | ||
for transportation network services may be made only electronically | ||
using the transportation network company's digital network or | ||
software application. | ||
Sec. 2402.111. NO DISCRIMINATION; ACCESSIBILITY. (a) A | ||
transportation network company shall adopt policies concerning | ||
nondiscrimination that comply with state and federal law. | ||
(b) A transportation network driver shall follow all | ||
policies concerning nondiscrimination and accessibility that | ||
comply with state and federal law. | ||
(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 | ||
transportation network riders 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 rider | ||
to an alternate provider of wheelchair-accessible service, if | ||
available. | ||
(f) A transportation network driver may not discriminate in | ||
the provision of transportation network services based on the | ||
geographic location of a departure point or destination, except | ||
that a driver may refuse a request for a ride that is farther than 30 | ||
miles between the departure point and the destination. | ||
Sec. 2402.112. 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 remit the fees to the comptroller | ||
for deposit in a trust fund outside the state treasury to be held by | ||
the comptroller and administered by the department 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 board rule. | ||
(c) The department shall implement a program in conjunction | ||
with any transportation network company operating in Austin on | ||
September 1, 2015, that desires to participate to conduct a pilot | ||
project to offer services to persons with disabilities. | ||
(d) Not later than January 1, 2017, the department, in | ||
conjunction with any transportation network company that | ||
participated in the pilot project, shall report to the public and | ||
the legislature on the findings of the program implemented under | ||
Subsection (c) regarding: | ||
(1) the average fares for providing the services; | ||
(2) costs incurred in providing the services; | ||
(3) the average response time for providing the | ||
services; and | ||
(4) other information useful to the legislature in | ||
developing public policy related to transportation network | ||
companies. | ||
Sec. 2402.113. 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. 2402.114. PERSONALLY IDENTIFIABLE INFORMATION. (a) A | ||
transportation network company may not disclose a transportation | ||
network rider's personally identifiable information to a third | ||
party unless: | ||
(1) the rider 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 | ||
transportation network rider's name or telephone number with the | ||
transportation network driver providing transportation network | ||
services to the rider to facilitate correct identification of the | ||
rider by the transportation network driver or to facilitate | ||
communication between the rider and the transportation network | ||
driver. | ||
SUBCHAPTER D. ENFORCEMENT | ||
Sec. 2402.151. RECORD AUDITS. (a) The department may audit | ||
the records of a transportation network company in connection with | ||
the performance of its duties under this chapter through: | ||
(1) investigations of specific alleged violations; or | ||
(2) a random sample of the transportation network | ||
company's records related to transportation network drivers. | ||
(b) A transportation network company whose place of | ||
business is located outside of this state may choose to make records | ||
available at a location outside of this state if: | ||
(1) the company and the department agree on the | ||
location; and | ||
(2) the company agrees to reimburse the department | ||
for: | ||
(A) necessary travel expenses; and | ||
(B) a per diem as set by the state for each day | ||
that an inspection or investigation related to the records is | ||
conducted. | ||
(c) Records maintained by a transportation network company | ||
regarding transportation network driver background checks under | ||
Section 2402.107 or transportation network riders' personally | ||
identifiable information are not subject to release under Chapter | ||
552, Government Code, and the department does not have a right of | ||
access to those records for purposes of that chapter. | ||
(d) Failure to provide records as required by this section | ||
is a violation of this chapter. | ||
Sec. 2402.152. HEARINGS. (a) A hearing arising under this | ||
chapter or a board rule adopted under this chapter must be conducted | ||
in accordance with this chapter, any order, decision, or rule of the | ||
board, and Chapter 2001, Government Code. | ||
(b) A hearing may be informally disposed of in accordance | ||
with Chapter 2001, Government Code. | ||
(c) A hearing under this chapter must be held by an | ||
administrative law judge of the State Office of Administrative | ||
Hearings. | ||
(d) An administrative law judge has all of the board's | ||
authority as provided by this chapter to conduct hearings arising | ||
under this chapter, including the power to: | ||
(1) hold a hearing; | ||
(2) administer an oath; | ||
(3) receive pleadings and evidence; | ||
(4) issue a subpoena to compel the attendance of a | ||
witness; | ||
(5) compel the production of papers and documents; | ||
(6) issue an interlocutory order, including a cease | ||
and desist order in the form of a temporary restraining order or a | ||
temporary injunction; | ||
(7) make findings of fact and conclusions of law; and | ||
(8) issue a proposal for decision and recommend a | ||
final order. | ||
Sec. 2402.153. DISCIPLINARY ACTION; CIVIL PENALTY. (a) | ||
The department, after notice and opportunity for hearing, may deny | ||
an application for a permit or suspend or revoke a permit if the | ||
applicant or permit holder: | ||
(1) makes a material misrepresentation or omission in | ||
any application or other information filed under this chapter or | ||
board rules; | ||
(2) violates this chapter or a board rule or order; | ||
(3) violates any law relating to the operation of a | ||
transportation network company; or | ||
(4) fails to maintain the qualifications for a permit. | ||
(b) A proceeding under this section is subject to Chapter | ||
2001, Government Code. | ||
(c) In addition to the authority under Subsection (a), the | ||
board, after notice and opportunity for hearing, may request that | ||
the attorney general bring an action against a person that has | ||
violated this chapter or board rules to collect a civil penalty in | ||
an amount not to exceed $10,000 for each violation. Each act in | ||
violation of this chapter and board rules and each day a violation | ||
continues is a separate violation. In determining the amount of | ||
the penalty, the board shall consider: | ||
(1) the seriousness of the violation, including the | ||
nature, circumstances, extent, and gravity of any prohibited act, | ||
and the harm or potential harm to the safety of the public; | ||
(2) the economic damage to the public caused by the | ||
violation; | ||
(3) the history of previous violations; | ||
(4) the amount necessary to deter a future violation; | ||
(5) efforts to correct the violation; and | ||
(6) any other matter that justice may require. | ||
(d) Notwithstanding any other law to the contrary, a civil | ||
penalty recovered under this section shall be deposited in the | ||
state treasury to the credit of the Texas Department of Motor | ||
Vehicles fund. | ||
Sec. 2402.154. COMPLAINT PROCEDURE AND NOTICE. (a) A | ||
transportation network company shall establish and maintain a | ||
complaint procedure through which any transportation network rider | ||
or other person using the transportation network service may submit | ||
a complaint with the department about the company, the | ||
transportation network service, a transportation network driver, | ||
or another affiliate of the company. | ||
(b) A transportation network company shall provide notice | ||
of the complaint procedure provided by this section to each | ||
transportation network rider and to each person that contacts the | ||
company to inquire about transportation network services. | ||
(c) A transportation network company shall provide notice | ||
of the complaint procedure under this section on each electronic | ||
receipt required by Section 2402.104. | ||
(d) The department shall approve the content and manner of | ||
delivery of the notice required by Subsections (a), (b), and (c). | ||
(e) Failure to provide notice as required by this section is | ||
a violation of this chapter. | ||
SECTION 2. Subtitle C, Title 10, Insurance Code, is amended | ||
by adding Chapter 1954 to read as follows: | ||
CHAPTER 1954. INSURANCE FOR TRANSPORTATION NETWORK DRIVERS | ||
SUBCHAPTER A. GENERAL PROVISIONS | ||
Sec. 1954.001. DEFINITIONS. In this chapter, the following | ||
terms have the meanings assigned by Section 2402.001, Occupations | ||
Code: | ||
(1) "digital network"; | ||
(2) "personal vehicle"; | ||
(3) "transportation network company"; | ||
(4) "transportation network driver"; | ||
(5) "transportation network rider"; and | ||
(6) "transportation network services". | ||
Sec. 1954.002. APPLICABILITY OF CHAPTER. This chapter | ||
applies to automobile insurance policies in this state, including | ||
policies issued by a Lloyd's plan, a reciprocal or interinsurance | ||
exchange, and a county mutual insurance company. | ||
SUBCHAPTER B. INSURANCE REQUIREMENTS | ||
Sec. 1954.051. GENERAL INSURANCE REQUIREMENT. (a) A | ||
transportation network driver or transportation network company on | ||
the driver's behalf shall maintain primary automobile insurance as | ||
required by this subchapter. | ||
(b) Insurance maintained under this subchapter must allow a | ||
transportation network driver to use a personal vehicle to | ||
transport transportation network riders for compensation and cover | ||
the driver while: | ||
(1) the driver is logged on to the transportation | ||
network company's digital network as provided by Section 1954.052; | ||
or | ||
(2) the driver is providing transportation network | ||
services as provided by Section 1954.053. | ||
(c) Insurance maintained under this subchapter must comply | ||
with the law applicable to personal automobile insurance in this | ||
state, including this subtitle and Chapter 601, Transportation | ||
Code. | ||
(d) The coverage requirements of this subchapter may be | ||
satisfied by: | ||
(1) automobile insurance maintained by the | ||
transportation network driver; | ||
(2) automobile insurance maintained by the | ||
transportation network company; or | ||
(3) a combination of Subdivisions (1) and (2). | ||
(e) Insurance required under this subchapter may be placed | ||
with an automobile insurer authorized to engage in business in this | ||
state or with an eligible surplus lines insurer. | ||
Sec. 1954.052. INSURANCE REQUIREMENTS: WHEN NOT PROVIDING | ||
SERVICES. At the time a transportation network driver is logged on | ||
to the transportation network company's digital network and is | ||
available to receive transportation network requests but is not | ||
providing transportation network services, the automobile | ||
insurance policy must provide: | ||
(1) the following minimum amounts of liability | ||
insurance coverage: | ||
(A) $50,000 for bodily injury to or death for | ||
each person in an incident; | ||
(B) $100,000 for bodily injury to or death of a | ||
person per incident; and | ||
(C) $25,000 for damage to or destruction of | ||
property of others in an incident; | ||
(2) uninsured or underinsured motorist coverage where | ||
required by Section 1952.101; and | ||
(3) personal injury protection coverage where | ||
required by Section 1952.152. | ||
Sec. 1954.053. INSURANCE REQUIREMENTS: WHILE PROVIDING | ||
SERVICES. At the time a transportation network driver is providing | ||
transportation network services, the automobile insurance policy | ||
must provide, at minimum: | ||
(1) coverage with a total aggregate limit of liability | ||
of $1 million for death, bodily injury, and property damage for each | ||
incident; | ||
(2) uninsured or underinsured motorist coverage where | ||
required by Section 1952.101; and | ||
(3) personal injury protection coverage where | ||
required by Section 1952.152. | ||
Sec. 1954.054. LAPSE OF OR INSUFFICIENT COVERAGE. If an | ||
insurance policy maintained by a transportation network driver | ||
under this subchapter has lapsed or does not provide the coverage | ||
required by this subchapter, the transportation network company | ||
shall provide the coverage required by this subchapter beginning | ||
with the first dollar of a claim against the driver. | ||
Sec. 1954.055. RELATION TO PERSONAL AUTOMOBILE INSURANCE. | ||
Coverage under an automobile insurance policy maintained by the | ||
transportation network company is not contingent on a | ||
transportation network driver's personal automobile insurer | ||
initially denying a claim. | ||
Sec. 1954.056. FINANCIAL RESPONSIBILITY. (a) Insurance | ||
satisfying the requirements of this subchapter satisfies the | ||
financial responsibility requirement for an automobile under | ||
Chapter 601, Transportation Code. | ||
(b) A transportation network driver shall carry proof of | ||
insurance that satisfies Sections 1954.052 and 1954.053 with the | ||
driver when the driver uses a personal vehicle in connection with a | ||
transportation network company's digital network. In the event of | ||
an accident, a driver shall provide the proof of insurance to a | ||
directly interested person, automobile insurer, and investigating | ||
peace officer on request under Section 601.053, Transportation | ||
Code. On request, a driver shall also disclose to a directly | ||
interested person, automobile insurer, and investigating peace | ||
officer whether, at the time of the accident, the driver was: | ||
(1) logged on to the company's digital network; or | ||
(2) providing transportation network services. | ||
Sec. 1954.057. PAYMENT DIRECTLY TO REPAIRING BUSINESS. If | ||
a transportation network company's insurer makes a payment for a | ||
claim covered under comprehensive or collision coverage, the | ||
transportation network company shall cause its insurer to issue the | ||
payment directly to the business repairing the vehicle or jointly | ||
to the owner of the vehicle and the primary lienholder on the | ||
covered vehicle. | ||
SUBCHAPTER C. REQUIRED DISCLOSURES TO TRANSPORTATION NETWORK | ||
DRIVER | ||
Sec. 1954.101. REQUIRED DISCLOSURES. Before a | ||
transportation network driver may accept a request for | ||
transportation network services on a transportation network | ||
company's digital network, the company shall disclose in writing | ||
the following: | ||
(1) the insurance policy, including the types of | ||
coverage and the limits for the policy, that the company provides | ||
while a driver uses a personal vehicle in connection with the | ||
company's digital network; and | ||
(2) that the driver's personal automobile insurance | ||
policy may not provide coverage, depending on the policy's terms, | ||
while the driver is logged on to the company's digital network and | ||
is available to receive transportation requests or is engaged in | ||
transportation network services. | ||
SUBCHAPTER D. PERSONAL AUTOMOBILE INSURANCE | ||
Sec. 1954.151. AUTHORIZED EXCLUSIONS FROM COVERAGE. (a) | ||
An insurer may exclude from coverage under a personal automobile | ||
insurance policy issued to an owner or operator of a personal | ||
vehicle any loss or injury that occurs while a transportation | ||
network driver using the personal vehicle: | ||
(1) is logged on to a transportation network company's | ||
digital network; or | ||
(2) is providing transportation network services. | ||
(b) Subsection (a) applies to any coverage included in a | ||
personal automobile insurance policy, including: | ||
(1) liability coverage for bodily injury and property | ||
damage; | ||
(2) personal injury protection coverage under | ||
Subchapter D, Chapter 1952; | ||
(3) uninsured and underinsured motorist coverage; | ||
(4) medical payment coverage; | ||
(5) comprehensive physical damage coverage; and | ||
(6) collision physical damage coverage. | ||
(c) An exclusion authorized under this section applies | ||
notwithstanding a financial responsibility requirement under | ||
Chapter 601, Transportation Code. | ||
(d) This subchapter may not be construed to invalidate or | ||
limit an exclusion contained in a policy form, including a policy | ||
form in use or approved for use in this state before September 1, | ||
2015, that excludes coverage for automobiles used to carry persons | ||
or property for compensation or available for hire by the public. | ||
Sec. 1954.152. COVERAGE UNDER PERSONAL AUTOMOBILE | ||
INSURANCE NOT REQUIRED. (a) This subchapter does not require a | ||
personal automobile insurance policy to cover a transportation | ||
network driver while: | ||
(1) the driver is logged on to a transportation | ||
network company's digital network; | ||
(2) the driver is providing transportation network | ||
services; or | ||
(3) the driver otherwise uses a vehicle to transport | ||
passengers for compensation. | ||
(b) This section does not prevent an insurer from providing | ||
coverage that may be excluded under this section if the insurer | ||
elects to provide the coverage in the policy or by endorsement. | ||
Sec. 1954.153. DEFENSE OR INDEMNIFICATION OF CLAIM. (a) An | ||
automobile insurer that issues a personal automobile insurance | ||
policy that includes an exclusion from coverage authorized by | ||
Section 1954.151 does not have a duty to defend or indemnify a claim | ||
arising from an event subject to the exclusion. | ||
(b) An automobile insurer that defends or indemnifies a | ||
claim against a transportation network driver for which coverage is | ||
excluded under the terms of the policy as authorized by this | ||
subchapter has a right of contribution against another insurer that | ||
provides automobile insurance to the driver in satisfaction of the | ||
coverage requirements under Section 1954.052 or 1954.053, as | ||
applicable. | ||
Sec. 1954.154. ASSISTANCE IN CLAIM INVESTIGATION. In an | ||
insurance claim investigation, a transportation network company | ||
and any insurer providing coverage under Subchapter B shall assist | ||
each insurer involved in the claim by providing information to | ||
directly interested persons and an insurer of the transportation | ||
network driver. Information provided under this section must | ||
include: | ||
(1) the precise times that a driver logged on and off | ||
of the transportation network company's digital network in the | ||
12-hour period immediately preceding and the 12-hour period | ||
immediately following the accident; and | ||
(2) a clear description of the coverage, exclusions, | ||
and limits provided under an automobile insurance policy maintained | ||
under Subchapter B. | ||
SECTION 3. This Act takes effect September 1, 2015. |