Florida Senate - 2017 COMMITTEE AMENDMENT Bill No. SB 340 Ì1444567Î144456 LEGISLATIVE ACTION Senate . House Comm: RCS . 03/14/2017 . . . . ————————————————————————————————————————————————————————————————— ————————————————————————————————————————————————————————————————— The Committee on Banking and Insurance (Brandes) recommended the following: 1 Senate Amendment (with title amendment) 2 3 Delete everything after the enacting clause 4 and insert: 5 Section 1. Section 627.748, Florida Statutes, is created to 6 read: 7 627.748 Transportation network companies.— 8 (1) DEFINITIONS.—As used in this section, the term: 9 (a) “Digital network” means any online-enabled technology 10 application service, website, or system offered or used by a 11 transportation network company which enables the prearrangement 12 of rides with transportation network company drivers. 13 (b) “Prearranged ride” means the provision of 14 transportation by a TNC driver to a rider, beginning when a TNC 15 driver accepts a ride requested by a rider through a digital 16 network controlled by a transportation network company, 17 continuing while the TNC driver transports the rider, and ending 18 when the last requesting rider departs from the TNC vehicle. The 19 term does not include a taxicab, for-hire vehicle, or street 20 hail service and does not include ridesharing as defined in s. 21 341.031, carpool as defined s. 450.28, or any other type of 22 service in which the driver receives a fee that does not exceed 23 the driver’s cost to provide the ride. 24 (c) “Rider” means an individual who uses a digital network 25 to connect with a TNC driver in order to obtain a prearranged 26 ride in the TNC driver’s TNC vehicle between points chosen by 27 the rider. 28 (d) “Street hail” means an immediate arrangement on a 29 street with a driver by a person using any method other than a 30 digital network to seek immediate transportation. 31 (e) “Transportation network company” or “TNC” means an 32 entity operating in this state pursuant to this section using a 33 digital network to connect a rider to a TNC driver, who provides 34 prearranged rides. A TNC is not deemed to own, control, operate, 35 direct, or manage the TNC vehicles or TNC drivers that connect 36 to its digital network, except where agreed to by written 37 contract, and is not a taxicab association or for-hire vehicle 38 owner. 39 (f) “Transportation network company driver” or “TNC driver” 40 means an individual who: 41 1. Receives connections to potential riders and related 42 services from a transportation network company; and 43 2. In return for compensation, uses a TNC vehicle to offer 44 or provide a prearranged ride to a rider upon connection through 45 a digital network. 46 (g) “Transportation network company vehicle” or “TNC 47 vehicle” means a vehicle that is not a taxicab, jitney, 48 limousine, or for-hire vehicle as defined in s. 320.01(15) and 49 that is: 50 1. Used by a TNC driver to offer or provide a prearranged 51 ride; and 52 2. Owned, leased, or otherwise authorized to be used by the 53 TNC driver. 54 55 Notwithstanding any other provision of law, a vehicle that is 56 let or rented to another for consideration may be used as a TNC 57 vehicle. 58 (2) NOT OTHER CARRIERS.—A TNC or TNC driver is not a common 59 carrier, contract carrier, or motor carrier and does not provide 60 taxicab or for-hire vehicle service. In addition, a TNC driver 61 is not required to register the vehicle that the TNC driver uses 62 to provide prearranged rides as a commercial motor vehicle or a 63 for-hire vehicle. 64 (3) AGENT.—A TNC must designate and maintain an agent for 65 service of process in this state. 66 (4) FARE TRANSPARENCY.—If a fare is collected from a rider, 67 the TNC must disclose to the rider the fare or fare calculation 68 method on its website or within the online-enabled technology 69 application service before the beginning of the prearranged 70 ride. If the fare is not disclosed to the rider before the 71 beginning of the prearranged ride, the rider must have the 72 option to receive an estimated fare before the beginning of the 73 prearranged ride. 74 (5) IDENTIFICATION OF TNC VEHICLES AND DRIVERS.—The TNC’s 75 digital network must display a photograph of the TNC driver and 76 the license plate number of the TNC vehicle used for providing 77 the prearranged ride before the rider enters the TNC driver’s 78 vehicle. 79 (6) ELECTRONIC RECEIPT.—Within a reasonable period after 80 the completion of a ride, a TNC shall transmit an electronic 81 receipt to the rider on behalf of the TNC driver which lists: 82 (a) The origin and destination of the ride; 83 (b) The total time and distance of the ride; and 84 (c) The total fare paid. 85 (7) TRANSPORTATION NETWORK COMPANY AND TNC DRIVER INSURANCE 86 REQUIREMENTS.— 87 (a) Beginning July 1, 2017, a TNC driver or a TNC on behalf 88 of the TNC driver shall maintain primary automobile insurance 89 that: 90 1. Recognizes that the TNC driver is a TNC driver or 91 otherwise uses a vehicle to transport riders for compensation; 92 and 93 2. Covers the TNC driver while the TNC driver is logged on 94 to the digital network of the TNC or while the TNC driver is 95 engaged in a prearranged ride. 96 (b) The following automobile insurance requirements apply 97 while a participating TNC driver is logged on to the digital 98 network but is not engaged in a prearranged ride: 99 1. Automobile insurance that provides: 100 a. A primary automobile liability coverage of at least 101 $50,000 for death and bodily injury per person, $100,000 for 102 death and bodily injury per incident, and $25,000 for property 103 damage; 104 b. Personal injury protection benefits that meet the 105 minimum coverage amounts required under ss. 627.730-627.7405; 106 and 107 c. Uninsured and underinsured vehicle coverage as required 108 by s. 627.727. 109 2. The coverage requirements of this paragraph may be 110 satisfied by any of the following: 111 a. Automobile insurance maintained by the TNC driver; 112 b. Automobile insurance maintained by the TNC; or 113 c. A combination of sub-subparagraphs a. and b. 114 (c) The following automobile insurance requirements apply 115 while a TNC driver is engaged in a prearranged ride: 116 1. Automobile insurance that provides: 117 a. A primary automobile liability coverage of at least $1 118 million for death, bodily injury, and property damage; 119 b. Personal injury protection benefits that meet the 120 minimum coverage amounts required of a limousine under ss. 121 627.730-627.7405; and 122 c. Uninsured and underinsured vehicle coverage as required 123 by s. 627.727. 124 2. The coverage requirements of this paragraph may be 125 satisfied by any of the following: 126 a. Automobile insurance maintained by the TNC driver; 127 b. Automobile insurance maintained by the TNC; or 128 c. A combination of sub-subparagraphs a. and b. 129 (d) If the TNC driver’s insurance under paragraph (b) or 130 paragraph (c) has lapsed or does not provide the required 131 coverage, the insurance maintained by the TNC must provide the 132 coverage required under this subsection, beginning with the 133 first dollar of a claim, and have the duty to defend such claim. 134 (e) Coverage under an automobile insurance policy 135 maintained by the TNC must not be dependent on a personal 136 automobile insurer first denying a claim, and a personal 137 automobile insurance policy is not required to first deny a 138 claim. 139 (f) Insurance required under this subsection must be 140 provided by an insurer authorized to do business in this state 141 which is a member of the Florida Insurance Guaranty Association 142 or an eligible surplus lines insurer that has a superior, 143 excellent, exceptional, or equivalent financial strength rating 144 by a rating agency acceptable to the Office of Insurance 145 Regulation of the Financial Services Commission. 146 (g) Insurance satisfying the requirements under this 147 subsection is deemed to satisfy the financial responsibility 148 requirement for a motor vehicle under chapter 324 and the 149 security required under s. 627.733 for any period when the TNC 150 driver is logged onto the digital network or engaged in a 151 prearranged ride. 152 (h) A TNC driver shall carry proof of coverage satisfying 153 paragraphs (b) and (c) with him or her at all times during his 154 or her use of a TNC vehicle in connection with a digital 155 network. In the event of an accident, a TNC driver shall provide 156 this insurance coverage information to any party directly 157 involved in the accident or the party’s designated 158 representative, automobile insurers, and investigating police 159 officers. Proof of financial responsibility may be presented 160 through an electronic device, such as a digital phone 161 application, under s. 316.646. Upon request, a TNC driver shall 162 also disclose to any party directly involved in the accident or 163 the party’s designated representative, automobile insurers, and 164 investigating police officers whether he or she was logged on to 165 a digital network or was engaged in a prearranged ride at the 166 time of the accident. 167 (i) If a TNC’s insurer makes a payment for a claim covered 168 under comprehensive coverage or collision coverage, the TNC 169 shall cause its insurer to issue the payment directly to the 170 business repairing the vehicle or jointly to the owner of the 171 vehicle and the primary lienholder on the covered vehicle. 172 (8) TRANSPORTATION NETWORK COMPANY AND INSURER; DISCLOSURE; 173 EXCLUSIONS.— 174 (a) Before a TNC driver is allowed to accept a request for 175 a prearranged ride on the digital network, the TNC must disclose 176 in writing to the TNC driver: 177 1. The insurance coverage, including the types of coverage 178 and the limits for each coverage, which the TNC provides while 179 the TNC driver uses a TNC vehicle in connection with the TNC’s 180 digital network. 181 2. That the TNC driver’s own automobile insurance policy 182 might not provide any coverage while the TNC driver is logged on 183 to the digital network or is engaged in a prearranged ride, 184 depending on the terms of the TNC driver’s own automobile 185 insurance policy. 186 3. That the provision of rides for compensation which are 187 not prearranged rides subjects the driver to the coverage 188 requirements imposed under s. 324.032(1) and that failure to 189 meet such coverage requirements subjects the TNC driver to 190 penalties provided in s. 324.221, up to and including a 191 misdemeanor of the second degree. 192 (b)1. An insurer that provides an automobile liability 193 insurance policy under part XI of chapter 627 may exclude any 194 and all coverage afforded under the policy issued to an owner or 195 operator of a TNC vehicle for any loss or injury that occurs 196 while a TNC driver is logged on to a digital network or while a 197 TNC driver provides a prearranged ride. Exclusions imposed under 198 this subsection are limited to coverage while a TNC driver is 199 logged on to a digital network or while a TNC driver provides a 200 prearranged ride. This right to exclude all coverage may apply 201 to any coverage included in an automobile insurance policy, 202 including, but not limited to: 203 a. Liability coverage for bodily injury and property 204 damage; 205 b. Uninsured and underinsured motorist coverage; 206 c. Medical payments coverage; 207 d. Comprehensive physical damage coverage; 208 e. Collision physical damage coverage; and 209 f. Personal injury protection. 210 2. The exclusions described in subparagraph 1. apply 211 notwithstanding any requirement under chapter 324. These 212 exclusions do not affect or diminish coverage otherwise 213 available for permissive drivers or resident relatives under the 214 personal automobile insurance policy of the TNC driver or owner 215 of the TNC vehicle who are not occupying the TNC vehicle at the 216 time of loss. This section does not require that a personal 217 automobile insurance policy provide coverage while the TNC 218 driver is logged on to a digital network, while the TNC driver 219 is engaged in a prearranged ride, or while the TNC driver 220 otherwise uses a vehicle to transport riders for compensation. 221 3. This section must not be construed to require an insurer 222 to use any particular policy language or reference to this 223 section in order to exclude any and all coverage for any loss or 224 injury that occurs while a TNC driver is logged on to a digital 225 network or while a TNC driver provides a prearranged ride. 226 4. This section does not preclude an insurer from providing 227 primary or excess coverage for the TNC driver’s vehicle by 228 contract or endorsement. 229 (c)1. An automobile insurer that excludes the coverage 230 described in subparagraph (b)1. does not have a duty to defend 231 or indemnify any claim expressly excluded thereunder. This 232 section does not invalidate or limit an exclusion contained in a 233 policy, including a policy in use or approved for use in this 234 state before July 1, 2017, which excludes coverage for vehicles 235 used to carry persons or property for a charge or available for 236 hire by the public. 237 2. An automobile insurer that defends or indemnifies a 238 claim against a TNC driver which is excluded under the terms of 239 its policy has a right of contribution against other insurers 240 that provide automobile insurance to the same TNC driver in 241 satisfaction of the coverage requirements of subsection (7) at 242 the time of loss. 243 (d) In a claims coverage investigation, a TNC shall 244 immediately provide, upon request by a directly involved party 245 or any insurer of the TNC driver, if applicable, the precise 246 times that the TNC driver logged on and off the digital network 247 in the 12-hour period immediately preceding and in the 12-hour 248 period immediately following the accident. An insurer providing 249 coverage under subsection (7) shall disclose, upon request by 250 any other insurer involved in the particular claim, the 251 applicable coverages, exclusions, and limits provided under any 252 automobile insurance maintained in order to satisfy the 253 requirements of subsection (7). 254 (9) LIMITATION ON TRANSPORTATION NETWORK COMPANIES.—A TNC 255 driver is an independent contractor and not an employee of the 256 TNC if all of the following conditions are met: 257 (a) The TNC does not unilaterally prescribe specific hours 258 during which the TNC driver must be logged on to the TNC’s 259 digital network. 260 (b) The TNC does not prohibit the TNC driver from using 261 digital networks from other TNCs. 262 (c) The TNC does not restrict the TNC driver from engaging 263 in any other occupation or business. 264 (d) The TNC and TNC driver agree in writing that the TNC 265 driver is an independent contractor with respect to the TNC. 266 (10) ZERO TOLERANCE FOR DRUG OR ALCOHOL USE.— 267 (a) The TNC shall implement a zero-tolerance policy 268 regarding a TNC driver’s activities while accessing the TNC’s 269 digital network. The zero-tolerance policy must address the use 270 of drugs or alcohol while a TNC driver is providing a 271 prearranged ride or is logged on to the digital network. 272 (b) The TNC shall provide notice of this policy on its 273 website, as well as procedures to report a complaint about a TNC 274 driver who a rider reasonably suspects was under the influence 275 of drugs or alcohol during the course of the ride. 276 (c) Upon receipt of a rider’s complaint alleging a 277 violation of the zero-tolerance policy, the TNC shall suspend a 278 TNC driver’s ability to accept any ride request through the 279 TNC’s digital network as soon as possible and shall conduct an 280 investigation into the reported incident. The suspension must 281 last the duration of the investigation. 282 (11) TRANSPORTATION NETWORK COMPANY DRIVER REQUIREMENTS.— 283 (a) Before an individual is authorized to accept a ride 284 request through a digital network: 285 1. The individual must submit an application to the TNC 286 which includes information regarding his or her address, age, 287 driver license, motor vehicle registration, and other 288 information required by the TNC; 289 2. The TNC must conduct, or have a third party conduct, a 290 local and national criminal background check that includes: 291 a. A search of the Multi-State/Multi-Jurisdiction Criminal 292 Records Locator or other similar commercial nationwide database 293 with validation of any records through primary source search; 294 and 295 b. A search of the National Sex Offender Public Website 296 maintained by the United States Department of Justice; and 297 3. The TNC must obtain and review, or have a third party 298 obtain and review, a driving history research report for the 299 applicant. 300 (b) The TNC shall conduct the background check required 301 under paragraph (a) for a TNC driver every 3 years. 302 (c) The TNC may not authorize an individual to act as a TNC 303 driver on its digital network if the driving history research 304 report conducted when the individual first seeks access to the 305 digital network reveals that the individual has had more than 306 three moving violations in the prior 3-year period. 307 (d) The TNC may not authorize an individual to act as a TNC 308 driver on its digital network if the background check conducted 309 when the individual first seeks access to the digital network or 310 any subsequent background check required under paragraph (b) 311 reveals that the individual: 312 1. Has been convicted, within the past 5 years, of: 313 a. A felony; 314 b. A misdemeanor for driving under the influence of drugs 315 or alcohol, for reckless driving, for hit and run, or for 316 fleeing or attempting to elude a law enforcement officer; or 317 c. A misdemeanor for a violent offense or sexual battery, 318 or a crime of lewdness or indecent exposure under chapter 800; 319 2. Has been convicted, within the past 3 years, of driving 320 with a suspended or revoked license; 321 3. Is a match in the National Sex Offender Public Website 322 maintained by the United States Department of Justice; 323 4. Does not possess a valid driver license; or 324 5. Does not possess proof of registration for the motor 325 vehicle used to provide prearranged rides. 326 (e) No more often than once every 2 years, the Department 327 of Financial Services shall direct a TNC to submit to the 328 department an agreed-upon procedures report prepared by an 329 independent certified public accountant for the sole purpose of 330 verifying that the TNC is in compliance with this subsection. 331 The report must be prepared in accordance with applicable 332 attestation standards established by the American Institute of 333 Certified Public Accountants. The TNC shall bear all costs 334 associated with the preparation and submission of the report. 335 (f) Upon receipt of the report pursuant to paragraph (e), 336 the Department of Financial Services may impose a fine of up to 337 $250 for each violation of this subsection identified in the 338 report and $500 for each repeat violation. The department may 339 also direct a TNC to address any noncompliance with this 340 subsection identified in the report within a timeframe 341 prescribed by the department. The department may, pursuant to 342 the Florida Rules of Civil Procedure, seek injunctive relief 343 against a TNC that fails to comply with the department’s 344 direction under this paragraph and that poses an imminent threat 345 to public safety as a result of such noncompliance. For purposes 346 of this subsection, a repeat violation occurs when two 347 consecutive reports prepared for a TNC reveal noncompliance with 348 the same requirement. 349 (g) Unless otherwise explicitly provided, this subsection 350 does not extinguish any claim otherwise available under common 351 law or any other statute. 352 (12) PROHIBITED CONDUCT.— 353 (a) A TNC driver may not accept a ride for compensation 354 other than by a rider arranged through a digital network. 355 (b) A TNC driver may not solicit or accept street hails. 356 (13) NONDISCRIMINATION; ACCESSIBILITY.— 357 (a) A TNC shall adopt a policy of nondiscrimination with 358 respect to riders and potential riders and shall notify TNC 359 drivers of such policy. 360 (b) A TNC driver shall comply with the TNC’s 361 nondiscrimination policy. 362 (c) A TNC driver shall comply with all applicable laws 363 regarding nondiscrimination against riders and potential riders. 364 (d) A TNC driver shall comply with all applicable laws 365 relating to accommodation of service animals. 366 (e) A TNC may not impose additional charges for providing 367 services to a person who has a physical disability because of 368 the person’s disability. 369 (f) A TNC that contracts with a governmental entity to 370 provide paratransit services must comply with all applicable 371 state and federal laws related to individuals with disabilities. 372 (g) A TNC shall reevaluate any decision to remove a TNC 373 driver’s authorization to access its digital network due to a 374 low quality rating by riders if the TNC driver alleges that the 375 low quality rating was because of a characteristic identified in 376 the company’s nondiscrimination policy and there is a plausible 377 basis for such allegation. 378 (14) RECORDS.—A TNC shall maintain the following records: 379 (a) Individual ride records for at least 1 year after the 380 date on which each ride is provided; and 381 (b) Individual records of TNC drivers for at least 1 year 382 after the date on which the TNC driver’s relationship with the 383 TNC ends. 384 (15) PREEMPTION.— 385 (a) It is the intent of the Legislature to provide for 386 uniformity of laws governing TNCs, TNC drivers, and TNC vehicles 387 throughout the state. TNCs, TNC drivers, and TNC vehicles are 388 governed exclusively by state law, including in any locality or 389 other jurisdiction that enacted a law or created rules governing 390 TNCs, TNC drivers, or TNC vehicles before July 1, 2017. A 391 county, municipality, special district, airport authority, port 392 authority, or other local governmental entity or subdivision may 393 not: 394 1. Impose a tax on, or require a license for, a TNC, a TNC 395 driver, or a TNC vehicle if such tax or license relates to 396 providing prearranged rides; 397 2. Subject a TNC, a TNC driver, or a TNC vehicle to any 398 rate, entry, operation, or other requirement of the county, 399 municipality, special district, airport authority, port 400 authority, or other local governmental entity or subdivision; or 401 3. Require a TNC or a TNC driver to obtain a business 402 license or any other type of similar authorization to operate 403 within the local governmental entity’s jurisdiction. 404 (b) This subsection does not prohibit an airport or seaport 405 from charging reasonable pickup fees consistent with any pickup 406 fees charged to taxicab companies at that airport or seaport for 407 their use of the airport’s or seaport’s facilities or prohibit 408 the airport or seaport from designating locations for staging, 409 pickup, and other similar operations at the airport or seaport. 410 Section 2. This act shall take effect July 1, 2017. 411 ================= T I T L E A M E N D M E N T ================ 412 And the title is amended as follows: 413 Delete everything before the enacting clause 414 and insert: 415 A bill to be entitled 416 An act relating to transportation network companies; 417 creating s. 627.748, F.S.; defining terms; providing 418 for construction; providing that a transportation 419 network company (TNC) driver is not required to 420 register certain vehicles as commercial motor vehicles 421 or for-hire vehicles; requiring a TNC to designate and 422 maintain an agent for service of process in this 423 state; providing fare requirements; providing 424 requirements for a TNC’s digital network; providing 425 for an electronic receipt, subject to certain 426 requirements; providing automobile insurance 427 requirements for a TNC and a TNC driver; providing 428 requirements for specified proof of coverage for a TNC 429 driver under certain circumstances; providing certain 430 disclosure requirements for a TNC driver in the event 431 of an accident; requiring a TNC to cause its insurer 432 to issue certain payments directly to certain parties; 433 requiring a TNC to make specified disclosures in 434 writing to TNC drivers under certain circumstances; 435 authorizing specified insurers to exclude certain 436 coverage, subject to certain limitations; providing 437 that the right to exclude coverage applies to any 438 coverage included in an automobile insurance policy; 439 providing applicability; providing for construction; 440 providing that specified automobile insurers have a 441 right of contribution against other insurers that 442 provide automobile insurance to the same TNC drivers 443 in satisfaction of certain coverage requirements under 444 certain circumstances; requiring a TNC to provide 445 specified information upon request by certain parties 446 during a claims coverage investigation; requiring 447 certain insurers to disclose specified information 448 upon request by any other insurer involved in the 449 particular claim; providing that TNC drivers are 450 independent contractors if specified conditions are 451 met; requiring a TNC to implement a zero-tolerance 452 policy for drug or alcohol use, subject to certain 453 requirements; providing TNC driver requirements; 454 requiring a TNC to conduct a certain background check 455 for a TNC driver after a specified period; requiring 456 the Department of Financial Services to direct a TNC 457 to submit to the department an agreed-upon procedures 458 report prepared by a certified public accountant, 459 subject to certain restrictions and requirements; 460 authorizing the department to impose specified fines 461 for violations and repeat violations identified in the 462 report; authorizing the department to direct a TNC to 463 address noncompliance identified in the report within 464 a timeframe prescribed by the department; authorizing 465 injunctive relief under certain circumstances; 466 specifying when a repeat violation occurs; providing 467 applicability; prohibiting a TNC driver from accepting 468 certain rides or soliciting or accepting street hails; 469 requiring a TNC to adopt a policy of nondiscrimination 470 with respect to riders and potential riders and to 471 notify TNC drivers of such policy; requiring TNC 472 drivers to comply with the nondiscrimination policy 473 and certain applicable laws regarding 474 nondiscrimination and accommodation of service 475 animals; prohibiting a TNC from imposing additional 476 charges for providing services to persons who have 477 physical disabilities; requiring a TNC that contracts 478 with a governmental entity to provide paratransit 479 services to comply with certain state and federal 480 laws; requiring a TNC to reevaluate a decision to 481 remove a TNC driver’s authorization to access its 482 digital network in certain instances; requiring a TNC 483 to maintain specified records; providing legislative 484 intent; specifying that TNCs, TNC drivers, and TNC 485 vehicles are governed exclusively by state law; 486 prohibiting local governmental entities and 487 subdivisions from taking specified actions; providing 488 applicability; providing an effective date.