Florida Senate - 2016 CS for CS for SB 1118
By the Committees on Judiciary; and Banking and Insurance; and
Senator Simmons
590-03304A-16 20161118c2
1 A bill to be entitled
2 An act relating to transportation network company
3 insurance; amending s. 316.066, F.S.; requiring a
4 statement in certain crash reports as to whether any
5 driver at the time of the accident was providing a
6 prearranged ride or logged into a digital network of a
7 transportation network company; providing a criminal
8 penalty for a driver who provides a false statement to
9 a law enforcement officer in connection with certain
10 information; creating s. 627.748, F.S.; providing
11 legislative intent; defining terms; requiring a
12 transportation network company driver, or the
13 transportation network company on the driver’s behalf,
14 to maintain certain primary automobile insurance under
15 certain circumstances; providing coverage requirements
16 under specified circumstances; requiring a
17 transportation network company to maintain certain
18 insurance and obligate the insurer to defend a certain
19 claim if specified insurance by the driver lapses or
20 does not provide the required coverage; providing that
21 certain coverage may not be contingent on a claim
22 denial; specifying requirements for insurers who
23 provide certain automobile insurance; requiring a
24 transportation network company driver to carry proof
25 of certain insurance coverage at all times during his
26 or her use of a personal vehicle and to disclose
27 specified information in the event of an accident;
28 requiring a transportation network company to make
29 certain disclosures to transportation network company
30 drivers; authorizing insurers to exclude certain
31 coverages during specified periods for policies issued
32 to transportation network company drivers for personal
33 vehicles; requiring a transportation network company
34 and certain insurers to cooperate during a claims
35 investigation to facilitate the exchange of specified
36 information; requiring a transportation network
37 company to cause its insurer to issue payments for
38 claims directly to specified entities under certain
39 circumstances; providing that unless agreed to in a
40 written contract, a transportation network company is
41 not deemed to control, direct, or manage the personal
42 vehicles or transportation network company drivers
43 that connect to its digital network; requiring a
44 transportation network company to provide a specified
45 notice to transportation network company drivers;
46 authorizing the Financial Services Commission to adopt
47 rules; providing for preemption of local laws and
48 regulations pertaining to transportation network
49 company insurance; providing an effective date.
50
51 Be It Enacted by the Legislature of the State of Florida:
52
53 Section 1. Paragraphs (b) and (c) of subsection (1) of
54 section 316.066, Florida Statutes, are amended, and paragraph
55 (e) is added to subsection (3) of that section, to read:
56 316.066 Written reports of crashes.—
57 (1)
58 (b) The Florida Traffic Crash Report, Long Form must
59 include:
60 1. The date, time, and location of the crash.
61 2. A description of the vehicles involved.
62 3. The names and addresses of the parties involved,
63 including all drivers and passengers, and the identification of
64 the vehicle in which each was a driver or a passenger.
65 4. The names and addresses of witnesses.
66 5. The name, badge number, and law enforcement agency of
67 the officer investigating the crash.
68 6. The names of the insurance companies for the respective
69 parties involved in the crash.
70 7. A statement as to whether, at the time of the accident,
71 any driver was providing a prearranged ride or logged into a
72 digital network of a transportation network company, as those
73 terms are defined in s. 627.748.
74 (c) In any crash for which a Florida Traffic Crash Report,
75 Long Form is not required by this section and which occurs on
76 the public roadways of this state, the law enforcement officer
77 shall complete a short-form crash report or provide a driver
78 exchange-of-information form, to be completed by all drivers and
79 passengers involved in the crash, which requires the
80 identification of each vehicle that the drivers and passengers
81 were in. The short-form report must include:
82 1. The date, time, and location of the crash.
83 2. A description of the vehicles involved.
84 3. The names and addresses of the parties involved,
85 including all drivers and passengers, and the identification of
86 the vehicle in which each was a driver or a passenger.
87 4. The names and addresses of witnesses.
88 5. The name, badge number, and law enforcement agency of
89 the officer investigating the crash.
90 6. The names of the insurance companies for the respective
91 parties involved in the crash.
92 7. A statement as to whether, at the time of the accident,
93 any driver was providing a prearranged ride or logged into a
94 digital network of a transportation network company, as those
95 terms are defined in s. 627.748.
96 (3)
97 (e) Any driver who provides a false statement to a law
98 enforcement officer in connection with the information that is
99 required to be reported under subparagraph (1)(b)7. or
100 subparagraph (1)(c)7. commits a misdemeanor of the second
101 degree, punishable as provided in s. 775.082 or s. 775.083.
102 Section 2. Section 627.748, Florida Statutes, is created to
103 read:
104 627.748 Transportation network company insurance.—
105 (1) It is the intent of the Legislature to provide for
106 statewide uniformity of laws governing the insurance
107 requirements imposed on transportation network companies and
108 transportation network company drivers.
109 (2) For purposes of this section, the term:
110 (a) “Digital network” means an online application,
111 software, website, or system offered or used by a transportation
112 network company which enables the prearrangement of rides with
113 transportation network company drivers.
114 (b) “Personal vehicle” means a vehicle, however titled,
115 which is used by a transportation network company driver in
116 connection with providing transportation network company service
117 and which:
118 1. Is owned, leased, or otherwise authorized for use by the
119 transportation network company driver; and
120 2. Is not a taxi, jitney, limousine, or for-hire vehicle as
121 that term is defined in s. 320.01(15).
122
123 Notwithstanding any other law, a vehicle that is let or rented
124 to another for consideration may be used as a personal vehicle.
125 (c) “Prearranged ride” means the provision of
126 transportation by a driver to or on behalf of a rider, beginning
127 when a driver accepts a request for a ride by a rider through a
128 digital network controlled by a transportation network company,
129 continuing while the driver transports the rider, and ending
130 when the last rider departs from the personal vehicle. A
131 prearranged ride does not include transportation provided using
132 a taxi, jitney, limousine, for-hire vehicle as defined in s.
133 320.01(15), or street hail service.
134 (d) “Transportation network company” or “company” means a
135 corporation, partnership, sole proprietorship, or other entity
136 operating in this state which uses a digital network to connect
137 transportation network company riders to transportation network
138 company drivers who provide prearranged rides. A transportation
139 network company does not include an individual, corporation,
140 partnership, sole proprietorship, or other entity arranging
141 nonemergency medical transportation for individuals qualifying
142 for Medicaid or Medicare pursuant to a contract with the state
143 or a managed care organization.
144 (e) “Transportation network company driver” or “driver”
145 means an individual who:
146 1. Receives connections to potential riders and related
147 services from a transportation network company in exchange for
148 any form of compensation, including payment of a fee to the
149 transportation network company; and
150 2. Uses a personal vehicle to offer or provide a
151 prearranged ride to riders upon connection through a digital
152 network controlled by a transportation network company in return
153 for compensation, including payment of a fee.
154 (f) “Transportation network company rider” or “rider” means
155 an individual who directly or indirectly uses a transportation
156 network company’s digital network to connect with a
157 transportation network company driver who provides
158 transportation services to the individual in the driver’s
159 personal vehicle.
160 (3)(a) A transportation network company driver, or a
161 transportation network company on the driver’s behalf, shall
162 maintain primary automobile insurance that recognizes that the
163 driver is a transportation network company driver or that the
164 driver otherwise uses a personal vehicle to transport riders for
165 compensation. Such primary automobile insurance must cover the
166 driver as required under this section, including while the
167 driver is logged on to the transportation network company’s
168 digital network but is not engaged in a prearranged ride, and
169 while the driver is engaged in a prearranged ride.
170 (b) The following automobile insurance coverage
171 requirements apply while a transportation network company driver
172 is logged on to the transportation network company’s digital
173 network but is not engaged in a prearranged ride, and while the
174 driver is engaged in a prearranged ride:
175 1. Primary automobile liability insurance coverage of at
176 least $125,000 for death and bodily injury per person, $250,000
177 for death and bodily injury per incident, and $50,000 for
178 property damage; and
179 2. Primary automobile insurance coverage that meets the
180 minimum requirements under ss. 627.730-627.7405.
181 (c) At all times other than the periods specified in
182 paragraph (b), the following automobile insurance requirements
183 apply if a driver has an agreement with a transportation network
184 company to provide any form of transportation service to riders:
185 1. Primary automobile liability insurance coverage of at
186 least $25,000 for death and bodily injury per person, $50,000
187 for death and bodily injury per incident, and $10,000 for
188 property damage; and
189 2. Primary automobile insurance that provides the minimum
190 requirements under ss. 627.730-627.7405.
191 (d) The coverage requirements of paragraphs (b) and (c) may
192 be satisfied by automobile insurance maintained by the
193 transportation network company driver, by the transportation
194 network company, or by a combination of both.
195 (e) If the insurance maintained by a driver under paragraph
196 (b) lapses or does not provide the required coverage, the
197 transportation network company must maintain insurance that
198 provides the coverage required by this section beginning with
199 the first dollar of a claim and must obligate the insurer to
200 defend such a claim in this state.
201 (f) Coverage under an automobile insurance policy
202 maintained by the transportation network company may not be
203 contingent on a denial of a claim under the driver’s personal
204 automobile liability insurance policy, nor shall a personal
205 automobile insurer be required to first deny a claim.
206 (g) Automobile insurance required by this section must be
207 provided by an insurer authorized to do business in this state
208 which is a member of the Florida Insurance Guaranty Association
209 or an eligible surplus lines insurer that has a superior, an
210 excellent, an exceptional, or an equivalent financial strength
211 rating by a rating agency acceptable to the office.
212 (h) Automobile insurance that satisfies the requirements of
213 this section is deemed to satisfy the financial responsibility
214 requirements imposed under chapter 324 and the security
215 requirements imposed under s. 627.733. However, the provision of
216 transportation to persons for compensation that is not covered
217 under this section subjects a vehicle and driver to the
218 requirements of chapters 320 and 324.
219 (i) A transportation network company driver shall carry
220 proof of insurance coverage that meets the requirements of
221 paragraphs (b) and (c) at all times during his or her use of a
222 personal vehicle. In the event of an accident:
223 1. The driver shall provide the insurance coverage
224 information to the directly involved parties, automobile
225 insurers, and investigating law enforcement officers. Proof of
226 financial responsibility may be provided through a digital
227 telephone application under s. 316.646 which is controlled by a
228 transportation network company.
229 2. Upon request, the driver shall disclose to the directly
230 involved parties, automobile insurers, and investigating law
231 enforcement officers whether the driver, at the time of the
232 accident, was logged on to the transportation network company’s
233 digital network or engaged in a prearranged ride.
234 (j) Before a driver may accept a request for a prearranged
235 ride on the transportation network company’s digital network,
236 the transportation network company shall disclose in writing to
237 each transportation network company driver:
238 1. The type and limits of insurance coverage provided by
239 the transportation network company;
240 2. The type of automobile insurance coverage that the
241 driver must maintain while the driver uses a personal vehicle in
242 connection with the transportation network company; and
243 3. That the provision of rides for compensation, whether
244 prearranged or otherwise, which is not covered by this section
245 subjects the driver to the coverage requirements imposed by s.
246 324.032(1) and that failure to meet such limits subjects the
247 driver to penalties provided in s. 324.221, up to and including
248 a misdemeanor of the second degree.
249 (k) An insurer that provides personal automobile insurance
250 policies under this part may exclude from coverage under a
251 policy issued to an owner or operator of a personal vehicle any
252 loss or injury that occurs while a driver is logged on to a
253 transportation network company’s digital network or while a
254 driver is engaged in a prearranged ride. Such right to exclude
255 coverage applies to any coverage under an automobile insurance
256 policy, including, but not limited to:
257 1. Liability coverage for bodily injury and property
258 damage.
259 2. Personal injury protection coverage.
260 3. Uninsured and underinsured motorist coverage.
261 4. Medical payments coverage.
262 5. Comprehensive physical damage coverage.
263 6. Collision physical damage coverage.
264 (l) The exclusions authorized under paragraph (k) apply
265 notwithstanding any financial responsibility requirements under
266 chapter 324. This section does not require that a personal
267 automobile insurance policy provide coverage while the driver is
268 logged on to the transportation network company’s digital
269 network, while the driver is engaged in a prearranged ride, or
270 while the driver otherwise uses a personal vehicle to transport
271 riders for compensation. However, an insurer may elect to
272 provide coverage by contract or endorsement for such driver’s
273 personal vehicle used for such purposes.
274 (m) An insurer that excludes coverage as authorized under
275 paragraph (k):
276 1. Does not have a duty to defend or indemnify an excluded
277 claim. This section does not invalidate or limit an exclusion
278 contained in a policy, including any policy in use or approved
279 for use in this state before July 1, 2017.
280 2. Has a right of contribution against other insurers that
281 provide automobile insurance to the same driver in satisfaction
282 of the coverage requirements of this section at the time of
283 loss, if the insurer defends or indemnifies a claim against a
284 driver which is excluded under the terms of its policy.
285 (n) In a claims investigation, a transportation network
286 company and any insurer providing coverage for a claim under
287 this section shall cooperate to facilitate the exchange of
288 relevant information with directly involved parties and insurers
289 of the transportation network company driver, if applicable.
290 Such information must provide:
291 1. The precise times that a driver logged on and off the
292 transportation network company’s digital network during the 12
293 hour period immediately before and immediately after the
294 accident.
295 2. A clear description of the coverage, any exclusions, and
296 the limits provided under automobile insurance maintained under
297 this section.
298 (o) If a transportation network company’s insurer makes a
299 payment for a claim covered under comprehensive coverage or
300 collision coverage, the transportation network company shall
301 cause its insurer to issue the payment directly to the entity
302 repairing the vehicle or jointly to the owner of the vehicle and
303 the primary lienholder on the covered vehicle.
304 (4) Unless agreed to in a written contract, a
305 transportation network company is not deemed to control, direct,
306 or manage the personal vehicles that, or the transportation
307 network company drivers who, connect to its digital network.
308 (5) A transportation network company shall provide an
309 electronic notice to transportation network company drivers
310 which states that it is illegal for a transportation network
311 company driver to solicit or accept a ride if the ride is not
312 arranged through a transportation network company’s digital
313 network, and that such rides may not be covered by a
314 transportation network company driver’s or a transportation
315 network company’s insurance policy.
316 (6) The Financial Services Commission may adopt rules to
317 administer this section.
318 Section 3. PREEMPTION.—Notwithstanding any other law,
319 transportation network company insurance requirements are
320 governed exclusively by this section and any rules adopted by
321 the Financial Services Commission to administer this section. A
322 political subdivision of this state may not adopt any ordinance
323 imposing insurance requirements on a transportation network
324 company or driver. All such ordinances, whether existing or
325 proposed, are preempted and superseded by general law.
326 Section 4. This act shall take effect January 1, 2017.