By: Paddie, Thompson of Harris, Nevárez, H.B. No. 100       Kuempel, Morrison, et al.     A BILL TO BE ENTITLED   AN ACT   relating to the regulation of transportation network companies;   requiring an occupational permit; authorizing a fee.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Subtitle C, Title 14, Occupations Code, is   amended by adding Chapter 2402 to read as follows:   CHAPTER 2402. TRANSPORTATION NETWORK COMPANIES     SUBCHAPTER A.  GENERAL PROVISIONS          Sec. 2402.001.  DEFINITIONS. In this chapter:                (1)  "Department" means the Texas Department of   Licensing and Regulation.                (2)  "Digital network" means any online-enabled   application, website, or system offered or used by a transportation   network company that enables the prearrangement of rides between   passengers and drivers.                (3)  "Digitally prearranged ride" means a ride in a   personal vehicle between points chosen by the passenger that is   prearranged through a digital network.                (4)  "Personal vehicle" means a vehicle that:                      (A)  is owned, leased, or otherwise authorized for   use by a driver; and                      (B)  is not a taxicab, limousine, or other vehicle   regulated by a municipality under Section 215.004, Local Government   Code, or a joint airport board under Section 22.081, Transportation   Code.                (5)  "Transportation network company" means a   corporation, partnership, sole proprietorship, or other entity   that, for compensation, enables a passenger to prearrange with a   driver, exclusively through the entity's digital network, a   digitally prearranged ride. The term does not include an entity   that provides:                      (A)  street-hail taxicab services;                      (B)  limousine or other car services arranged by a   method other than through a digital network;                      (C)  shared expense carpool or vanpool   arrangements; or                      (D)  a type of ride service for which:                            (i)  the fee received by the driver does not   exceed the driver's costs of providing the ride; or                            (ii)  the driver receives a fee that exceeds   the driver's costs associated with providing the ride but makes not   more than three round-trips per day between the driver's or   passenger's place of employment and the driver's or passenger's   home.          Sec. 2402.002.  NATURE OF TRANSPORTATION NETWORK COMPANIES,   DRIVERS, AND VEHICLES.  Transportation network companies and   drivers logged in to the company's digital network are not common   carriers, contract carriers, or motor carriers.          Sec. 2402.003.  CONTROLLING AUTHORITY. (a)  Notwithstanding   any other provision of law, and except as provided by 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.