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.