Florida Senate - 2017                                     SB 340
       
       
        
       By Senator Brandes
       
       24-00314C-17                                           2017340__
    1                        A bill to be entitled                      
    2         An act relating to transportation network companies;
    3         creating s. 316.68, F.S.; defining terms; providing
    4         for construction; providing that a transportation
    5         network company (TNC) driver is not required to
    6         register certain vehicles as commercial motor vehicles
    7         or for-hire vehicles; requiring a TNC to designate and
    8         maintain an agent for service of process in this
    9         state; providing fare requirements; providing
   10         requirements for a TNC’s digital network; providing
   11         for an electronic receipt, subject to certain
   12         requirements; providing automobile insurance
   13         requirements for a TNC and a TNC driver; providing
   14         requirements for specified proof of coverage for a TNC
   15         driver under certain circumstances; providing certain
   16         disclosure requirements for a TNC driver in the event
   17         of an accident; requiring a TNC to cause its insurer
   18         to issue certain payments directly to certain parties;
   19         requiring a TNC to make specified disclosures in
   20         writing to TNC drivers under certain circumstances;
   21         authorizing specified insurers to exclude certain
   22         coverage; providing that the right to exclude coverage
   23         applies to any coverage included in an automobile
   24         insurance policy; providing applicability; providing
   25         for construction; providing that specified automobile
   26         insurers have a right of contribution against other
   27         insurers that provide automobile insurance to the same
   28         TNC drivers in satisfaction of certain coverage
   29         requirements under certain circumstances; requiring a
   30         TNC to provide specified information upon request by
   31         certain parties during a claims coverage
   32         investigation; requiring certain insurers to disclose
   33         specified information upon request by any other
   34         insurer involved in the particular claim; providing
   35         that TNC drivers are independent contractors if
   36         specified conditions are met; providing retroactive
   37         applicability; requiring a TNC to implement a zero
   38         tolerance policy for drug or alcohol use; providing
   39         TNC driver requirements; requiring a TNC to conduct a
   40         certain background check for a TNC driver after a
   41         specified period; prohibiting a TNC driver from
   42         accepting certain rides or soliciting or accepting
   43         street hails; requiring a TNC to adopt a policy of
   44         nondiscrimination with respect to riders and potential
   45         riders and to notify TNC drivers of such policy;
   46         requiring TNC drivers to comply with the
   47         nondiscrimination policy and certain applicable laws
   48         regarding nondiscrimination and accommodation of
   49         service animals; prohibiting a TNC from imposing
   50         additional charges for providing services to persons
   51         who have physical disabilities; requiring a TNC to
   52         maintain specified records; providing legislative
   53         intent; specifying that TNCs, TNC drivers, and TNC
   54         vehicles are governed exclusively by state law;
   55         prohibiting local governmental entities and
   56         subdivisions from taking specified actions; providing
   57         construction; providing an effective date.
   58          
   59  Be It Enacted by the Legislature of the State of Florida:
   60  
   61         Section 1. Section 316.68, Florida Statutes, is created to
   62  read:
   63         316.68 Transportation network companies.—
   64         (1) DEFINITIONS.—As used in this section, the term:
   65         (a) “Digital network” means any online-enabled technology
   66  application service, website, or system offered or used by a
   67  transportation network company which enables the prearrangement
   68  of rides with transportation network company drivers.
   69         (b) “Prearranged ride” means the provision of
   70  transportation by a TNC driver to a rider, beginning when a TNC
   71  driver accepts a ride requested by a rider through a digital
   72  network controlled by a transportation network company,
   73  continuing while the TNC driver transports the requesting rider,
   74  and ending when the last requesting rider departs from the TNC
   75  vehicle. The term does not include a taxicab, for-hire vehicle,
   76  or street hail service and does not include ridesharing as
   77  defined in s. 341.031, carpool as defined s. 450.28, or any
   78  other type of service in which the driver receives a fee that
   79  does not exceed the driver’s cost to provide the ride.
   80         (c) “Rider” means an individual who uses a digital network
   81  to connect with a TNC driver in order to obtain a prearranged
   82  ride in the TNC driver’s TNC vehicle between points chosen by
   83  the rider.
   84         (d) “Street hail” means an immediate arrangement on a
   85  street with a driver by a person using any method other than a
   86  digital network to seek immediate transportation.
   87         (e) “Transportation network company” or “TNC” means an
   88  entity operating in this state pursuant to this section using a
   89  digital network to connect a rider to a TNC driver, who provides
   90  prearranged rides. A TNC is not deemed to own, control, operate,
   91  direct, or manage the TNC vehicles or TNC drivers that connect
   92  to its digital network, except where agreed to by written
   93  contract, and is not a taxicab association or for-hire vehicle
   94  owner.
   95         (f) “Transportation network company driver” or “TNC driver”
   96  means an individual who:
   97         1. Receives connections to potential riders and related
   98  services from a transportation network company; and
   99         2. In return for compensation, uses a TNC vehicle to offer
  100  or provide a prearranged ride to a rider upon connection through
  101  a digital network.
  102         (g) “Transportation network company vehicle” or “TNC
  103  vehicle” means a vehicle that is not a taxicab, jitney,
  104  limousine, or for-hire vehicle as defined in s. 320.01(15) and
  105  that is:
  106         1. Used by a TNC driver to offer or provide a prearranged
  107  ride; and
  108         2. Owned, leased, or otherwise authorized to be used by the
  109  TNC driver.
  110  
  111  Notwithstanding any other provision of law, a vehicle that is
  112  let or rented to another for consideration may be used as a TNC
  113  vehicle.
  114         (2) NOT OTHER CARRIERS.—A TNC or TNC driver is not a common
  115  carrier, contract carrier, or motor carrier and does not provide
  116  taxicab or for-hire vehicle service. In addition, a TNC driver
  117  is not required to register the vehicle that the TNC driver uses
  118  to provide prearranged rides as a commercial motor vehicle or a
  119  for-hire vehicle.
  120         (3) AGENT.—A TNC must designate and maintain an agent for
  121  service of process in this state.
  122         (4) FARE TRANSPARENCY.—If a fare is collected from a rider,
  123  the TNC must disclose to the rider the fare or fare calculation
  124  method on its website or within the online-enabled technology
  125  application service before the beginning of the prearranged
  126  ride. If the fare is not disclosed to the rider before the
  127  beginning of the prearranged ride, the rider must have the
  128  option to receive an estimated fare before the beginning of the
  129  prearranged ride.
  130         (5) IDENTIFICATION OF TNC VEHICLES AND DRIVERS.—The TNC’s
  131  digital network must display a photograph of the TNC driver and
  132  the license plate number of the TNC vehicle used for providing
  133  the prearranged ride before the rider enters the TNC driver’s
  134  vehicle.
  135         (6) ELECTRONIC RECEIPT.—Within a reasonable period after
  136  the completion of a ride, the TNC shall transmit an electronic
  137  receipt to the rider on behalf of the TNC driver which lists:
  138         (a) The origin and destination of the ride;
  139         (b) The total time and distance of the ride; and
  140         (c) The total fare paid.
  141         (7) TRANSPORTATION NETWORK COMPANY AND TNC DRIVER INSURANCE
  142  REQUIREMENTS.—
  143         (a)Beginning July 1, 2017, a TNC driver or a TNC on behalf
  144  of the TNC driver shall maintain primary automobile insurance
  145  that:
  146         1. Recognizes that the TNC driver is a TNC driver or
  147  otherwise uses a vehicle to transport riders for compensation;
  148  and
  149         2. Covers the TNC driver while the TNC driver is logged on
  150  to the digital network of the TNC or while the TNC driver is
  151  engaged in a prearranged ride.
  152         (b) The following automobile insurance requirements apply
  153  while a participating TNC driver is logged on to the digital
  154  network but is not engaged in a prearranged ride:
  155         1. Automobile insurance that provides:
  156         a.A primary automobile liability coverage of at least
  157  $50,000 for death and bodily injury per person, $100,000 for
  158  death and bodily injury per incident, and $25,000 for property
  159  damage; and
  160         b. Personal injury protection benefits that meet the
  161  minimum coverage amounts required under ss. 627.730-627.7405.
  162         2. The coverage requirements of this paragraph may be
  163  satisfied by any of the following:
  164         a. Automobile insurance maintained by the TNC driver;
  165         b. Automobile insurance maintained by the TNC; or
  166         c. A combination of sub-subparagraphs a. and b.
  167         (c) The following automobile insurance requirements apply
  168  while a TNC driver is engaged in a prearranged ride:
  169         1. Automobile insurance that provides:
  170         a.A primary automobile liability coverage of at least $1
  171  million for death, bodily injury, and property damage; and
  172         b. Personal injury protection benefits that meet the
  173  minimum coverage amounts required of a limousine under ss.
  174  627.730-627.7405.
  175         2. The coverage requirements of this paragraph may be
  176  satisfied by any of the following:
  177         a. Automobile insurance maintained by the TNC driver;
  178         b. Automobile insurance maintained by the TNC; or
  179         c. A combination of sub-subparagraphs a. and b.
  180         (d) If the TNC driver’s insurance under paragraph (b) or
  181  paragraph (c) has lapsed or does not provide the required
  182  coverage, the insurance maintained by the TNC must provide the
  183  coverage required under this subsection, beginning with the
  184  first dollar of a claim, and have the duty to defend such claim.
  185         (e) Coverage under an automobile insurance policy
  186  maintained by the TNC must not be dependent on a personal
  187  automobile insurer first denying a claim, and a personal
  188  automobile insurance policy is not required to first deny a
  189  claim.
  190         (f) Insurance required under this subsection must be
  191  provided by an insurer authorized to do business in this state
  192  which is a member of the Florida Insurance Guaranty Association
  193  or an eligible surplus lines insurer that has a superior,
  194  excellent, exceptional, or equivalent financial strength rating
  195  by a rating agency acceptable to the Office of Insurance
  196  Regulation of the Financial Services Commission.
  197         (g) Insurance satisfying the requirements under this
  198  subsection is deemed to satisfy the financial responsibility
  199  requirement for a motor vehicle under chapter 324 and the
  200  security required under s. 627.733.
  201         (h) A TNC driver shall carry proof of coverage satisfying
  202  paragraphs (b) and (c) with him or her at all times during his
  203  or her use of a TNC vehicle in connection with a digital
  204  network. In the event of an accident, a TNC driver shall provide
  205  this insurance coverage information to directly interested
  206  parties, automobile insurers, and investigating police officers.
  207  Proof of financial responsibility may be presented through an
  208  electronic device, such as a digital phone application, under s.
  209  316.646. Upon request, a TNC driver shall also disclose to
  210  directly interested parties, automobile insurers, and
  211  investigating police officers whether he or she was logged on to
  212  a digital network or was engaged in a prearranged ride at the
  213  time of the accident.
  214         (i) If a TNC’s insurer makes a payment for a claim covered
  215  under comprehensive coverage or collision coverage, the TNC
  216  shall cause its insurer to issue the payment directly to the
  217  business repairing the vehicle or jointly to the owner of the
  218  vehicle and the primary lienholder on the covered vehicle.
  219         (8) TRANSPORTATION NETWORK COMPANY AND INSURER; DISCLOSURE;
  220  EXCLUSIONS.—
  221         (a) Before a TNC driver is allowed to accept a request for
  222  a prearranged ride on the digital network, the TNC must disclose
  223  in writing to the TNC driver:
  224         1. The insurance coverage, including the types of coverage
  225  and the limits for each coverage, which the TNC provides while
  226  the TNC driver uses a TNC vehicle in connection with the TNC’s
  227  digital network.
  228         2. That the TNC driver’s own automobile insurance policy
  229  might not provide any coverage while the TNC driver is logged on
  230  to the digital network or is engaged in a prearranged ride,
  231  depending on the terms of the TNC driver’s own automobile
  232  insurance policy.
  233         3. That the provision of rides for compensation which are
  234  not prearranged rides subjects the driver to the coverage
  235  requirements imposed under s. 324.032(1) and that failure to
  236  meet such coverage requirements subjects the TNC driver to
  237  penalties provided in s. 324.221, up to and including a
  238  misdemeanor of the second degree.
  239         (b)1. An insurer that provides an automobile liability
  240  insurance policy under part XI of chapter 627 may exclude any
  241  and all coverage afforded under the policy issued to an owner or
  242  operator of a TNC vehicle for any loss or injury that occurs
  243  while a TNC driver is logged on to a digital network or while a
  244  TNC driver provides a prearranged ride. This right to exclude
  245  all coverage may apply to any coverage included in an automobile
  246  insurance policy, including, but not limited to:
  247         a. Liability coverage for bodily injury and property
  248  damage;
  249         b. Uninsured and underinsured motorist coverage;
  250         c. Medical payments coverage;
  251         d. Comprehensive physical damage coverage;
  252         e. Collision physical damage coverage; and
  253         f. Personal injury protection.
  254         2. The exclusions described in subparagraph 1. apply
  255  notwithstanding any requirement under chapter 324. This section
  256  does not require that a personal automobile insurance policy
  257  provide coverage while the TNC driver is logged on to a digital
  258  network, while the TNC driver is engaged in a prearranged ride,
  259  or while the TNC driver otherwise uses a vehicle to transport
  260  riders for compensation.
  261         3. This section must not be construed to require an insurer
  262  to use any particular policy language or reference to this
  263  section in order to exclude any and all coverage for any loss or
  264  injury that occurs while a TNC driver is logged on to a digital
  265  network or while a TNC driver provides a prearranged ride.
  266         4. This section does not preclude an insurer from providing
  267  primary or excess coverage for the TNC driver’s vehicle by
  268  contract or endorsement.
  269         (c)1. An automobile insurer that excludes the coverage
  270  described in subparagraph (b)1. does not have a duty to defend
  271  or indemnify any claim expressly excluded thereunder. This
  272  section does not invalidate or limit an exclusion contained in a
  273  policy, including a policy in use or approved for use in this
  274  state before July 1, 2017, which excludes coverage for vehicles
  275  used to carry persons or property for a charge or available for
  276  hire by the public.
  277         2. An automobile insurer that defends or indemnifies a
  278  claim against a TNC driver which is excluded under the terms of
  279  its policy has a right of contribution against other insurers
  280  that provide automobile insurance to the same TNC driver in
  281  satisfaction of the coverage requirements of subsection (7) at
  282  the time of loss.
  283         (d) In a claims coverage investigation, a TNC shall
  284  immediately provide, upon request by a directly involved party
  285  or any insurer of the TNC driver, if applicable, the precise
  286  times that the TNC driver logged on and off the digital network
  287  in the 12-hour period immediately preceding and in the 12-hour
  288  period immediately following the accident. An insurer providing
  289  coverage under subsection (7) shall disclose, upon request by
  290  any other insurer involved in the particular claim, the
  291  applicable coverages, exclusions, and limits provided under any
  292  automobile insurance maintained in order to satisfy the
  293  requirements of subsection (7).
  294         (9) LIMITATION ON TRANSPORTATION NETWORK COMPANIES.—A TNC
  295  driver is an independent contractor and not an employee of the
  296  TNC if all of the following conditions are met:
  297         (a) The TNC does not unilaterally prescribe specific hours
  298  during which the TNC driver must be logged on to the TNC’s
  299  digital network.
  300         (b) The TNC does not prohibit the TNC driver from using
  301  digital networks from other TNCs.
  302         (c) The TNC does not restrict the TNC driver from engaging
  303  in any other occupation or business.
  304         (d) The TNC and TNC driver agree in writing that the TNC
  305  driver is an independent contractor with respect to the TNC.
  306  
  307  This subsection applies retroactively to any TNC driver who has
  308  ever operated in this state.
  309         (10) ZERO TOLERANCE FOR DRUG OR ALCOHOL USE.—
  310         (a) The TNC shall implement a zero-tolerance policy
  311  regarding a TNC driver’s activities while accessing the TNC’s
  312  digital network. The zero-tolerance policy must address the use
  313  of drugs or alcohol while a TNC driver is providing a
  314  prearranged ride or is logged on to the digital network.
  315         (b) The TNC shall provide notice of this policy on its
  316  website, as well as procedures to report a complaint about a TNC
  317  driver who a rider reasonably suspects was under the influence
  318  of drugs or alcohol during the course of the ride.
  319         (c) Upon receipt of a rider’s complaint alleging a
  320  violation of the zero-tolerance policy, the TNC shall suspend a
  321  TNC driver’s ability to accept any ride request through the
  322  TNC’s digital network as soon as possible and shall conduct an
  323  investigation into the reported incident. The suspension must
  324  last the duration of the investigation.
  325         (11) TRANSPORTATION NETWORK COMPANY DRIVER REQUIREMENTS.—
  326         (a) Before an individual is authorized to accept a ride
  327  request through a digital network:
  328         1. The individual must submit an application to the TNC
  329  which includes information regarding his or her address, age,
  330  driver license, motor vehicle registration, and other
  331  information required by the TNC;
  332         2. The TNC must conduct, or have a third party conduct, a
  333  local and national criminal background check that includes:
  334         a. A search of the Multi-State/Multi-Jurisdiction Criminal
  335  Records Locator or other similar commercial nationwide database
  336  with validation of any records through primary source search;
  337  and
  338         b. A search of the National Sex Offender Public Website
  339  maintained by the United States Department of Justice; and
  340         3. The TNC must obtain and review, or have a third party
  341  obtain and review, a driving history research report for the
  342  applicant.
  343         (b) The TNC shall conduct the background check required
  344  under paragraph (a) for a TNC driver every 3 years.
  345         (c) The TNC may not authorize an individual to act as a TNC
  346  driver on its digital network if the driving history research
  347  report conducted when the individual first seeks access to the
  348  digital network reveals that the individual has had more than
  349  three moving violations in the prior 3-year period.
  350         (d) The TNC may not authorize an individual to act as a TNC
  351  driver on its digital network if the background check conducted
  352  when the individual first seeks access to the digital network or
  353  any subsequent background check required under paragraph (b)
  354  reveals that the individual:
  355         1. Has been convicted, within the past 5 years, of:
  356         a. A felony;
  357         b. A misdemeanor for driving under the influence of drugs
  358  or alcohol, for reckless driving, for hit and run, or for
  359  fleeing or attempting to elude a law enforcement officer; or
  360         c. A misdemeanor for a violent offense or sexual battery,
  361  or a crime of lewdness or indecent exposure under chapter 800;
  362         2. Has been convicted, within the past 3 years, of driving
  363  with a suspended or revoked license;
  364         3. Is a match in the National Sex Offender Public Website
  365  maintained by the United States Department of Justice;
  366         4. Does not possess a valid driver license; or
  367         5. Does not possess proof of registration for the motor
  368  vehicle used to provide prearranged rides.
  369         (12) PROHIBITED CONDUCT.—
  370         (a) A TNC driver may not accept a ride for compensation
  371  other than a ride arranged through a digital network.
  372         (b) A TNC driver may not solicit or accept street hails.
  373         (13) NONDISCRIMINATION; ACCESSIBILITY.—
  374         (a) A TNC shall adopt a policy of nondiscrimination with
  375  respect to riders and potential riders and shall notify TNC
  376  drivers of such policy.
  377         (b) A TNC driver shall comply with the TNC’s
  378  nondiscrimination policy.
  379         (c) A TNC driver shall comply with all applicable laws
  380  regarding nondiscrimination against riders and potential riders.
  381         (d) A TNC driver shall comply with all applicable laws
  382  relating to accommodation of service animals.
  383         (e) A TNC may not impose additional charges for providing
  384  services to a person who has a physical disability because of
  385  the person’s disability.
  386         (14) RECORDS.—A TNC shall maintain the following records:
  387         (a) Individual ride records for at least 1 year after the
  388  date on which each ride is provided; and
  389         (b) Individual records of TNC drivers for at least 1 year
  390  after the date on which the TNC driver’s relationship with the
  391  TNC ends.
  392         (15) PREEMPTION.—
  393         (a) It is the intent of the Legislature to provide for
  394  uniformity of laws governing TNCs, TNC drivers, and TNC vehicles
  395  throughout the state. TNCs, TNC drivers, and TNC vehicles are
  396  governed exclusively by state law, including in any locality or
  397  other jurisdiction that enacted a law or created rules governing
  398  TNCs, TNC drivers, or TNC vehicles before July 1, 2017. A
  399  county, municipality, special district, airport authority, port
  400  authority, or other local governmental entity or subdivision may
  401  not:
  402         1. Impose a tax on, or require a license for, a TNC, a TNC
  403  driver, or a TNC vehicle if such tax or license relates to
  404  providing prearranged rides or subject a TNC, a TNC driver, or a
  405  TNC vehicle to any rate, entry, operational, or other
  406  requirement of the county, municipality, special district,
  407  airport authority, port authority, or other local governmental
  408  entity or subdivision; or
  409         2. Require a TNC or a TNC driver to obtain a business
  410  license or any other type of similar authorization to operate
  411  within the local governmental entity’s jurisdiction.
  412         (b)This subsection does not prohibit an airport from
  413  charging reasonable pickup fees consistent with any pickup fees
  414  charged to taxicab companies at that airport for their use of
  415  the airport’s facilities or prohibit the airport from
  416  designating locations for staging, pickup, and other similar
  417  operations at the airport.
  418         Section 2. This act shall take effect July 1, 2017.