2015 -- H 5487

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LC001165

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2015

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A N   A C T

RELATING TO PUBLIC UTILITIES AND CARRIERS - TRANSPORTATION NETWORK

COMPANY SERVICES

     

     Introduced By: Representatives Palangio, Carnevale, Gallison, Kennedy, and O`Grady

     Date Introduced: February 12, 2015

     Referred To: House Corporations

     It is enacted by the General Assembly as follows:

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     SECTION 1. Title 39 of the General Laws entitled "PUBLIC UTILITIES AND

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CARRIERS" is hereby amended by adding thereto the following chapter:

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CHAPTER 14.2

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TRANSPORTATION NETWORK COMPANY SERVICES

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     39-14.2-1. Definitions. -- Terms used in this chapter shall be construed as follows, unless

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another meaning is expressed or is clearly apparent from the language or context:

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     (1) "Division" means the division of public utilities and carriers;

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     (2) "Person" means and includes any individual, partnership, corporations, or other

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association of individuals;

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     (3) "Transportation network company" or "TNC" means an entity licensed pursuant to

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this chapter and operating in the state that uses a digital network or software application service to

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connect passengers to transportation network company services provided by the TNC drivers. A

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TNC is not deemed to own, control, operate or manage the vehicles used by the TNC drivers. A

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TNC is not a jitney, as defined in § 39-13-1, a taxicab or limited public motor vehicle, as defined

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in § 39-14-1, or a public motor vehicle, as defined in § 39-14.1-1. A TNC is not a common

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carrier as defined in title 39;

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     (4) "Transportation network company services or "TNC services" means transportation of

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a passenger between points chosen by the passenger and prearranged with the TNC driver

 

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through the use of a digital network or software application. TNC services shall begin when the

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TNC driver accepts a request for transportation received through the digital network or software

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application service, continue while the TNC driver transports the passenger in the vehicle, and

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end when the passenger exits the vehicle. TNC service is not a jitney, taxicab, for-hire vehicle or

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street hail service.

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     (5) "Transportation network driver" or "TNC driver" means an individual who operates a

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motor vehicle that is:

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     (i) Owned, leased or otherwise authorized for use by the individual;

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     (ii) Not a jitney, a taxicab or limited public motor vehicle, or a public motor vehicle; and

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     (iii) Used to provide TNC services.

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     39-14.2-2. Not other carriers. – TNCs or TNC drivers are not common carriers, as

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defined in title 39; jitneys, as defined in § 39-13-1; taxicabs or limited public motor vehicles, as

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defined in § 39-14-1; or public motor vehicles, as defined in § 39-14.1-1. In addition, a TNC

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driver shall not be required to register the vehicle such driver uses for TNC services as a

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commercial or for-hire vehicle.

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     39-14.2-3. Permit required for transportation network company vehicle operation. –

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(a) A person shall not operate a TNC in the state until that person obtains a permit from the

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division.

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     (b) The division shall issue a permit to each applicant that meets the requirements for a

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TNC set forth in this chapter and pays an annual permit fee of five thousand dollars ($5,000) to

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the division. All revenues received under this section shall be deposited as general revenues.

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     39-14.2-4. Agent. – The TNC must maintain an agent for service of process in the state.

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     39-14.2-5. Fare charged for services provided. – A TNC may charge a fare for the

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services provided to the passengers; provided that, if a fare is charged, the TNC shall disclose to

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the passengers the fare calculation method on its website or within the software application

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service. The TNC shall also provide passengers with the applicable rates being charged and the

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option to receive an estimated fare before the passenger enters the TNC driver's vehicle.

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     39-14.2-6. Identification of TNC vehicles and TNC drivers. – The TNC's software

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application or website shall display a picture of the TNC driver, and the license plate number of

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the vehicle utilized for providing the TNC service before the passenger enters the TNC driver's

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vehicle.

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     39-14.2-7. Electronic receipt. – Within a reasonable period of time following the

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completion of a trip, a TNC shall transmit an electronic receipt to the passenger that lists: (1) The

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origin and destination of the trip; (2) The total time and distance of the trip; and (3) An

 

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itemization of the total fare paid, if any.

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     39-14.2-8. Proof of financial responsibility. – (a) On or before ninety (90) days after the

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effective date of this chapter and thereafter, TNCs and TNC drivers shall comply with the

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automobile liability insurance requirements of this chapter

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     (b) The following automobile liability insurance requirements shall apply during the time

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that a TNC driver is logged into the TNC's digital network and available to receive requests for

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transportation, but is not providing TNC services:

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     (1) Automobile liability insurance that meets at least the minimum liability coverage

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requirements set by the Rhode Island department of business regulations pursuant to § 31-47-

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2(13)(i).

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     (2) Automobile liability insurance that provides the minimum coverage requirements for

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uninsured and underinsured motorist coverage where required by the Rhode Island department of

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business regulation pursuant to §§ 27-7-2.1 and 31-31-7.

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     (3) Automobile liability insurance in the amounts required in subsection (b)(1) of this

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section shall be maintained by a TNC and provide coverage in the event a participating TNC

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driver's own automobile liability policy excludes coverage according to its policy terms or does

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not provide coverage of at least the limits required in subsection (b)(1) of this section.

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     (c) The following automobile liability insurance requirements shall apply while a TNC

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driver is providing TNC services:

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     (1) Provides a primary automobile liability insurance that recognizes the TNC driver's

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provision of TNC services;

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     (2) Provides automobile liability insurance of at least one million dollars ($1,000,000) for

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death, personal injury and property damage;

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     (3) Provides uninsured motorist coverage where required by the Rhode Island department

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of business regulation pursuant to §§ 27-7-2.1 and 31-31-7.

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     (4) The coverage requirements of this subsection (c) may be satisfied by any of the

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following:

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     (i) Automobile liability insurance maintained by the TNC driver; or

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     (ii) Automobile liability insurance maintained by the TNC; or

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     (iii) Any combination of paragraphs (i) and (ii) of this subdivision.

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     (d) In every instance where insurance maintained by a TNC driver to fulfill the insurance

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requirements of this section has lapsed, failed to provide the required coverage, denied a claim for

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the required coverage or otherwise ceased to exist, insurance maintained by a TNC shall provide

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the coverage required by this section beginning with the first dollar of a claim.

 

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     (e) Insurance required by this section may be placed with an insurer authorized to do

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business in the state or with a surplus lines insurer eligible under § 27-3-40. Insurance required

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by this section shall be deemed to satisfy the financial responsibility requirement for a motor

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vehicle under § 31-47-2(13)(i)(A).

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     39-14.2-9. TNC and insurer disclosure requirements. – (a) The TNC shall disclose in

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writing to TNC drivers the following before they are allowed to accept a request for TNC services

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on the TNC's digital network:

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     (1) The insurance coverage and limits of liability that the TNC provides while the TNC

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driver uses a personal vehicle in connection with a TNC's digital network; and

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     (2) That the TNC driver's own insurance policy may not provide coverage while the TNC

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driver uses a vehicle in connection with a TNC's digital network depending on its terms.

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     (b) Insurers that write automobile liability insurance in Rhode Island may:

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     (1) Exclude any and all coverage and the duty to defend afforded under the owner's

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insurance policy for any loss or injury that occurs while an insured vehicle provides or is

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available to provide TNC services, provided such exclusion is expressly set forth in the policy

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and approved for sale in Rhode Island. This right to exclude coverage and the duty to indemnify

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and defend may apply to any coverage included in an automobile liability insurance policy

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including, but not limited to:

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     (i) Liability coverage for bodily injury and property damage;

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     (ii) Uninsured and underinsured motorist coverage;

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     (iii) Medical payments coverage;

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     (iv) Comprehensive physical damage coverage;

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     (v) Collision physical damage coverage; and

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     (vi) Medical payments coverage.

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     (c) The insurer must notify an insured after receiving notice of loss, and within the time

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required by the Rhode Island department of business regulation pursuant to § 27-9.1-1 et sq., that

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the insurer has no duty to defend or indemnify any person or organization for liability for a loss

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that is properly excluded pursuant to the terms of the applicable primary or excess insurance

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police.

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     (d) Insurers that write automobile liability insurance in Rhode Island shall disclose on its

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application for insurance, in a prominent place, whether or not the insurance policy provides

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coverage while an insured vehicle provides or is available to provide TNC services. If an

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automobile liability insurance policy contains an exclusion for TNC services, the insurer or its

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agent must disclose in writing the exact language of such exclusion to the applicant during the

 

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application process.

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     (e) In a claims coverage investigation, TNCs and any insurer providing coverage under §

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39-14.2-7 shall cooperate to facilitate the exchange of information, including the precise times

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that a TNC driver logged on and off of the TNC's digital network in the twenty-four (24) hour

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period immediately preceding the accident and disclose to one another a clear description of the

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coverage, exclusions and limits provided under any insurance policy each party issued or

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maintained.

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     39-14.2-10. Zero tolerance for drug and alcohol use. – (a) The TNC shall implement a

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zero tolerance policy on the use of drugs or alcohol while a TNC driver is providing TNC

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services or is logged into the digital network, but is not providing TNC services, and shall provide

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notice of this policy on its website, as well as procedures to report a complaint about a TNC

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driver with whom a passenger was matched and whom the passenger reasonably suspects was

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under the influence of drugs or alcohol during the course of the trip.

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     (b) Upon receipt of such passenger complaint alleging a violation of the zero tolerance

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policy, the TNC shall immediately suspend such TNC driver's access to the digital network and

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shall conduct an investigation into the reported incident. The suspension shall last the duration of

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the investigation.

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     (c) The TNC shall maintain records relevant to the enforcement of this requirement for a

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period of at least two (2) years from the date that a passenger complaint is received by the TNC.

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     39-14.2-11. TNC Driver requirements. – (a) Prior to permitting an individual to act as a

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TNC driver on its digital website and software application, the TNC shall:

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      (1) Require the individual to submit an application to the TNC which includes

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information regarding his or her address, age, driver's license, driving history, motor vehicle

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registration, automobile liability insurance, and other information as may be required by the

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TNC;

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     (2) Conduct, or have a third party conduct, a local and national criminal background

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check for each applicant that shall include:

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     (i) Multi-state/multi-jurisdiction criminal records locator or other similar commercial

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nationwide database with validation (primary source search); and

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     (ii) National sex offender registry database.

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     (3) Obtain and review a driving history research report for such individual.

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     (b) The TNC shall not permit an individual to act as a TNC driver for its digital website

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who:

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     (1) Has had more than three (3) moving violations in the prior three (3) year period, or

 

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one major violation in the prior three (3) year period (including, but not limited to, attempting to

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evade the police, reckless driving, or driving on a suspended or revoked license);

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     (2) Has been convicted, within the past seven (7) years, of driving under the influence of

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drugs or alcohol, fraud, sexual offenses, use of motor vehicle to commit a felony, a crime

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involving property damage, and/or theft, acts of violence or acts or terror;

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     (3) Is found in the national sex offender registry database;

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     (4) Does not possess a valid driver's license;

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     (5) Does not possess proof of registration for the motor vehicle(s) used to provide TNC

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services;

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     (6) Does not possess proof of automobile liability insurance for the motor vehicle(s) used

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to provide TNC services; or

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     (7) Is not at least nineteen (19) years of age.

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     39-14.2-12. Safety and sanitary condition of vehicles. – A TNC shall require that any

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motor vehicle(s) that a TNC driver will use to provide TNC services meets the vehicle safety

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and/or emissions requirements for a private motor vehicle in Rhode Island or the state in which

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the vehicle is registered.

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     39-14.2-13. Operations of vehicles. – A TNC driver shall exclusively accept rides

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booked through a TNC's digital network or software application service and shall not solicit or

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accept street hails.

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     39-14.2-14. No cash trips. – The TNC shall adopt a policy prohibiting solicitation or

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acceptance of cash payments from passengers and notify TNC drivers of such policy. TNC

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drivers shall not solicit or accept cash payments from passengers. Any payment for TNC services

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shall be made only electronically using the digital network or software applications.

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     39-14.2-15. No discrimination - accessibility. – (a) The TNC shall adopt a policy of

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non-discrimination on the basis of pick up location, destination, race, color, national origin,

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religious belief or affiliation, sex, disability, age, sexual orientation/identity, or gender identity

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with respect to passengers and potential passengers and notify TNC drivers of such policy.

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     (b) TNC drivers shall comply with all applicable laws regarding non-discrimination

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against passengers or potential passengers on the basis of pick up location, destination, race,

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color, national origin, religious belief or affiliation, sex, disability, age, sexual orientation, or

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gender identity.

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     (c) TNC drivers shall comply with all applicable laws relating to accommodation of

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service animals.

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     (d) A TNC shall not impose additional charges for providing services to persons with

 

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physical disabilities because of those disabilities.

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     (e) A TNC shall provide passengers an opportunity to indicate whether they require a

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wheelchair accessible vehicle. If a TNC cannot arrange wheelchair accessible TNC service in any

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instance, it shall direct the passenger to an alternate provider of wheelchair accessible service, if

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available.

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     39-14.2-16. Accessible transportation fund. – There shall be established and set up on

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the books of the state a separate fund to be known as the Rhode Island accessible transportation

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fund. The fund shall consist of an annual surcharge fee of no more than ten thousand dollars

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($10,000) per year by any TNC that does not provide wheelchair-accessible service and all other

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monies credited or transferred to the fund from any other source under law. The division shall be

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the trustee of the fund and may only expend monies in the fund, without further appropriation, to

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enhance wheelchair-accessible service within the TNC industry.

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     39-14.2-17. Records. – A TNC shall maintain: (1) Individual trip records for at least one

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year from the date each trip was provided; and (2) TNC driver records at least until the one year

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anniversary of the date on which a TNC driver's activation on the digital network has ended.

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     39-14.2-18. Personally identifiable information. – A TNC shall not disclose a

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passenger's personally identifiable information to a third party unless: the passenger consents,

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disclosure is required by a legal obligation, or disclosure is required to protect or defend the terms

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of use of the service or to investigate violations of those terms. In addition to the foregoing, a

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TNC shall be permitted to share a passenger's name and/or telephone number with the TNC

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driver providing TNC services to such passenger in order to facilitate correct identification of the

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passenger by the TNC driver or to facilitate communication between the passenger and the TNC

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driver.

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     39-14.2-19. Controlling authority. – Notwithstanding any other provisions of law,

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TNCs and TNC drivers are governed exclusively by this chapter and any rules promulgated by

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the division consistent with this chapter. No municipality or other local entity may impose a tax

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on, or require a license for, a TNC, TNC driver, or a vehicle used by a TNC driver where such tax

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or license is related to providing TNC services, or subject a TNC to the municipality or other

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local entity's rate, entry, operation or other requirements.

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     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO PUBLIC UTILITIES AND CARRIERS - TRANSPORTATION NETWORK

COMPANY SERVICES

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     This act would create a comprehensive regulatory scheme for motor vehicle passenger

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services provided by transportation network companies which use digital network as software

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application services to connect passengers to transportation providers.

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     This act would take effect upon passage.

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LC001165

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