Florida Senate - 2017 CS for SB 340 By the Committee on Banking and Insurance; and Senators Brandes, Galvano, Simpson, Artiles, Young, and Bracy 597-02420-17 2017340c1 1 A bill to be entitled 2 An act relating to transportation network companies; 3 creating s. 627.748, 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, subject to certain limitations; providing 23 that the right to exclude coverage applies to any 24 coverage included in an automobile insurance policy; 25 providing applicability; providing for construction; 26 providing that specified automobile insurers have a 27 right of contribution against other insurers that 28 provide automobile insurance to the same TNC drivers 29 in satisfaction of certain coverage requirements under 30 certain circumstances; requiring a TNC to provide 31 specified information upon request by certain parties 32 during a claims coverage investigation; requiring 33 certain insurers to disclose specified information 34 upon request by any other insurer involved in the 35 particular claim; providing that TNC drivers are 36 independent contractors if specified conditions are 37 met; requiring a TNC to implement a zero-tolerance 38 policy for drug or alcohol use, subject to certain 39 requirements; providing TNC driver requirements; 40 requiring a TNC to conduct a certain background check 41 for a TNC driver after a specified period; requiring 42 the Department of Financial Services to direct a TNC 43 to submit to the department an agreed-upon procedures 44 report prepared by a certified public accountant, 45 subject to certain restrictions and requirements; 46 authorizing the department to impose specified fines 47 for violations and repeat violations identified in the 48 report; authorizing the department to direct a TNC to 49 address noncompliance identified in the report within 50 a timeframe prescribed by the department; authorizing 51 injunctive relief under certain circumstances; 52 specifying when a repeat violation occurs; providing 53 applicability; prohibiting a TNC driver from accepting 54 certain rides or soliciting or accepting street hails; 55 requiring a TNC to adopt a policy of nondiscrimination 56 with respect to riders and potential riders and to 57 notify TNC drivers of such policy; requiring TNC 58 drivers to comply with the nondiscrimination policy 59 and certain applicable laws regarding 60 nondiscrimination and accommodation of service 61 animals; prohibiting a TNC from imposing additional 62 charges for providing services to persons who have 63 physical disabilities; requiring a TNC that contracts 64 with a governmental entity to provide paratransit 65 services to comply with certain state and federal 66 laws; requiring a TNC to reevaluate a decision to 67 remove a TNC driver’s authorization to access its 68 digital network in certain instances; requiring a TNC 69 to maintain specified records; providing legislative 70 intent; specifying that TNCs, TNC drivers, and TNC 71 vehicles are governed exclusively by state law; 72 prohibiting local governmental entities and 73 subdivisions from taking specified actions; providing 74 applicability; providing an effective date. 75 76 Be It Enacted by the Legislature of the State of Florida: 77 78 Section 1. Section 627.748, Florida Statutes, is created to 79 read: 80 627.748 Transportation network companies.— 81 (1) DEFINITIONS.—As used in this section, the term: 82 (a) “Digital network” means any online-enabled technology 83 application service, website, or system offered or used by a 84 transportation network company which enables the prearrangement 85 of rides with transportation network company drivers. 86 (b) “Prearranged ride” means the provision of 87 transportation by a TNC driver to a rider, beginning when a TNC 88 driver accepts a ride requested by a rider through a digital 89 network controlled by a transportation network company, 90 continuing while the TNC driver transports the rider, and ending 91 when the last rider exits from and is no longer occupying the 92 TNC vehicle. The term does not include a taxicab, for-hire 93 vehicle, or street hail service and does not include ridesharing 94 as defined in s. 341.031, carpool as defined s. 450.28, or any 95 other type of service in which the driver receives a fee that 96 does not exceed the driver’s cost to provide the ride. 97 (c) “Rider” means an individual who uses a digital network 98 to connect with a TNC driver in order to obtain a prearranged 99 ride in the TNC driver’s TNC vehicle between points chosen by 100 the rider. A person may use a digital network to request a 101 prearranged ride on behalf of a rider. 102 (d) “Street hail” means an immediate arrangement on a 103 street with a driver by a person using any method other than a 104 digital network to seek immediate transportation. 105 (e) “Transportation network company” or “TNC” means an 106 entity operating in this state pursuant to this section using a 107 digital network to connect a rider to a TNC driver, who provides 108 prearranged rides. A TNC is not deemed to own, control, operate, 109 direct, or manage the TNC vehicles or TNC drivers that connect 110 to its digital network, except where agreed to by written 111 contract, and is not a taxicab association or for-hire vehicle 112 owner. An individual, corporation, partnership, sole 113 proprietorship, or other entity that arranges medical 114 transportation for individuals qualifying for Medicaid or 115 Medicare pursuant to a contract with the state or a managed care 116 organization is not a TNC. This section does not prohibit a TNC 117 from providing prearranged rides to individuals who qualify for 118 Medicaid or Medicare if it meets the requirements of this 119 section. 120 (f) “Transportation network company driver” or “TNC driver” 121 means an individual who: 122 1. Receives connections to potential riders and related 123 services from a transportation network company; and 124 2. In return for compensation, uses a TNC vehicle to offer 125 or provide a prearranged ride to a rider upon connection through 126 a digital network. 127 (g) “Transportation network company vehicle” or “TNC 128 vehicle” means a vehicle that is not a taxicab, jitney, 129 limousine, or for-hire vehicle as defined in s. 320.01(15) and 130 that is: 131 1. Used by a TNC driver to offer or provide a prearranged 132 ride; and 133 2. Owned, leased, or otherwise authorized to be used by the 134 TNC driver. 135 136 Notwithstanding any other provision of law, a vehicle that is 137 let or rented to another for consideration may be used as a TNC 138 vehicle. 139 (2) NOT OTHER CARRIERS.—A TNC or TNC driver is not a common 140 carrier, contract carrier, or motor carrier and does not provide 141 taxicab or for-hire vehicle service. In addition, a TNC driver 142 is not required to register the vehicle that the TNC driver uses 143 to provide prearranged rides as a commercial motor vehicle or a 144 for-hire vehicle. 145 (3) AGENT.—A TNC must designate and maintain an agent for 146 service of process in this state. 147 (4) FARE TRANSPARENCY.—If a fare is collected from a rider, 148 the TNC must disclose to the rider the fare or fare calculation 149 method on its website or within the online-enabled technology 150 application service before the beginning of the prearranged 151 ride. If the fare is not disclosed to the rider before the 152 beginning of the prearranged ride, the rider must have the 153 option to receive an estimated fare before the beginning of the 154 prearranged ride. 155 (5) IDENTIFICATION OF TNC VEHICLES AND DRIVERS.—The TNC’s 156 digital network must display a photograph of the TNC driver and 157 the license plate number of the TNC vehicle used for providing 158 the prearranged ride before the rider enters the TNC driver’s 159 vehicle. 160 (6) ELECTRONIC RECEIPT.—Within a reasonable period after 161 the completion of a ride, a TNC shall transmit an electronic 162 receipt to the rider on behalf of the TNC driver which lists: 163 (a) The origin and destination of the ride; 164 (b) The total time and distance of the ride; and 165 (c) The total fare paid. 166 (7) TRANSPORTATION NETWORK COMPANY AND TNC DRIVER INSURANCE 167 REQUIREMENTS.— 168 (a) Beginning July 1, 2017, a TNC driver or a TNC on behalf 169 of the TNC driver shall maintain primary automobile insurance 170 that: 171 1. Recognizes that the TNC driver is a TNC driver or 172 otherwise uses a vehicle to transport riders for compensation; 173 and 174 2. Covers the TNC driver while the TNC driver is logged on 175 to the digital network of the TNC or while the TNC driver is 176 engaged in a prearranged ride. 177 (b) The following automobile insurance requirements apply 178 while a participating TNC driver is logged on to the digital 179 network but is not engaged in a prearranged ride: 180 1. Automobile insurance that provides: 181 a. A primary automobile liability coverage of at least 182 $50,000 for death and bodily injury per person, $100,000 for 183 death and bodily injury per incident, and $25,000 for property 184 damage; 185 b. Personal injury protection benefits that meet the 186 minimum coverage amounts required under ss. 627.730-627.7405; 187 and 188 c. Uninsured and underinsured vehicle coverage as required 189 by s. 627.727. 190 2. The coverage requirements of this paragraph may be 191 satisfied by any of the following: 192 a. Automobile insurance maintained by the TNC driver; 193 b. Automobile insurance maintained by the TNC; or 194 c. A combination of sub-subparagraphs a. and b. 195 (c) The following automobile insurance requirements apply 196 while a TNC driver is engaged in a prearranged ride: 197 1. Automobile insurance that provides: 198 a. A primary automobile liability coverage of at least $1 199 million for death, bodily injury, and property damage; 200 b. Personal injury protection benefits that meet the 201 minimum coverage amounts required of a limousine under ss. 202 627.730-627.7405; and 203 c. Uninsured and underinsured vehicle coverage as required 204 by s. 627.727. 205 2. The coverage requirements of this paragraph may be 206 satisfied by any of the following: 207 a. Automobile insurance maintained by the TNC driver; 208 b. Automobile insurance maintained by the TNC; or 209 c. A combination of sub-subparagraphs a. and b. 210 (d) If the TNC driver’s insurance under paragraph (b) or 211 paragraph (c) has lapsed or does not provide the required 212 coverage, the insurance maintained by the TNC must provide the 213 coverage required under this subsection, beginning with the 214 first dollar of a claim, and have the duty to defend such claim. 215 (e) Coverage under an automobile insurance policy 216 maintained by the TNC must not be dependent on a personal 217 automobile insurer first denying a claim, and a personal 218 automobile insurance policy is not required to first deny a 219 claim. 220 (f) Insurance required under this subsection must be 221 provided by an insurer authorized to do business in this state 222 which is a member of the Florida Insurance Guaranty Association 223 or an eligible surplus lines insurer that has a superior, 224 excellent, exceptional, or equivalent financial strength rating 225 by a rating agency acceptable to the Office of Insurance 226 Regulation of the Financial Services Commission. 227 (g) Insurance satisfying the requirements under this 228 subsection is deemed to satisfy the financial responsibility 229 requirement for a motor vehicle under chapter 324 and the 230 security required under s. 627.733 for any period when the TNC 231 driver is logged onto the digital network or engaged in a 232 prearranged ride. 233 (h) A TNC driver shall carry proof of coverage satisfying 234 paragraphs (b) and (c) with him or her at all times during his 235 or her use of a TNC vehicle in connection with a digital 236 network. In the event of an accident, a TNC driver shall provide 237 this insurance coverage information to any party directly 238 involved in the accident or the party’s designated 239 representative, automobile insurers, and investigating police 240 officers. Proof of financial responsibility may be presented 241 through an electronic device, such as a digital phone 242 application, under s. 316.646. Upon request, a TNC driver shall 243 also disclose to any party directly involved in the accident or 244 the party’s designated representative, automobile insurers, and 245 investigating police officers whether he or she was logged on to 246 a digital network or was engaged in a prearranged ride at the 247 time of the accident. 248 (i) If a TNC’s insurer makes a payment for a claim covered 249 under comprehensive coverage or collision coverage, the TNC 250 shall cause its insurer to issue the payment directly to the 251 business repairing the vehicle or jointly to the owner of the 252 vehicle and the primary lienholder on the covered vehicle. 253 (8) TRANSPORTATION NETWORK COMPANY AND INSURER; DISCLOSURE; 254 EXCLUSIONS.— 255 (a) Before a TNC driver is allowed to accept a request for 256 a prearranged ride on the digital network, the TNC must disclose 257 in writing to the TNC driver: 258 1. The insurance coverage, including the types of coverage 259 and the limits for each coverage, which the TNC provides while 260 the TNC driver uses a TNC vehicle in connection with the TNC’s 261 digital network. 262 2. That the TNC driver’s own automobile insurance policy 263 might not provide any coverage while the TNC driver is logged on 264 to the digital network or is engaged in a prearranged ride, 265 depending on the terms of the TNC driver’s own automobile 266 insurance policy. 267 3. That the provision of rides for compensation which are 268 not prearranged rides subjects the driver to the coverage 269 requirements imposed under s. 324.032(1) and that failure to 270 meet such coverage requirements subjects the TNC driver to 271 penalties provided in s. 324.221, up to and including a 272 misdemeanor of the second degree. 273 (b)1. An insurer that provides an automobile liability 274 insurance policy under part XI of chapter 627 may exclude any 275 and all coverage afforded under the policy issued to an owner or 276 operator of a TNC vehicle for any loss or injury that occurs 277 while a TNC driver is logged on to a digital network or while a 278 TNC driver provides a prearranged ride. Exclusions imposed under 279 this subsection are limited to coverage while a TNC driver is 280 logged on to a digital network or while a TNC driver provides a 281 prearranged ride. This right to exclude all coverage may apply 282 to any coverage included in an automobile insurance policy, 283 including, but not limited to: 284 a. Liability coverage for bodily injury and property 285 damage; 286 b. Uninsured and underinsured motorist coverage; 287 c. Medical payments coverage; 288 d. Comprehensive physical damage coverage; 289 e. Collision physical damage coverage; and 290 f. Personal injury protection. 291 2. The exclusions described in subparagraph 1. apply 292 notwithstanding any requirement under chapter 324. These 293 exclusions do not affect or diminish coverage otherwise 294 available for permissive drivers or resident relatives under the 295 personal automobile insurance policy of the TNC driver or owner 296 of the TNC vehicle who are not occupying the TNC vehicle at the 297 time of loss. This section does not require that a personal 298 automobile insurance policy provide coverage while the TNC 299 driver is logged on to a digital network, while the TNC driver 300 is engaged in a prearranged ride, or while the TNC driver 301 otherwise uses a vehicle to transport riders for compensation. 302 3. This section must not be construed to require an insurer 303 to use any particular policy language or reference to this 304 section in order to exclude any and all coverage for any loss or 305 injury that occurs while a TNC driver is logged on to a digital 306 network or while a TNC driver provides a prearranged ride. 307 4. This section does not preclude an insurer from providing 308 primary or excess coverage for the TNC driver’s vehicle by 309 contract or endorsement. 310 (c)1. An automobile insurer that excludes the coverage 311 described in subparagraph (b)1. does not have a duty to defend 312 or indemnify any claim expressly excluded thereunder. This 313 section does not invalidate or limit an exclusion contained in a 314 policy, including a policy in use or approved for use in this 315 state before July 1, 2017, which excludes coverage for vehicles 316 used to carry persons or property for a charge or available for 317 hire by the public. 318 2. An automobile insurer that defends or indemnifies a 319 claim against a TNC driver which is excluded under the terms of 320 its policy has a right of contribution against other insurers 321 that provide automobile insurance to the same TNC driver in 322 satisfaction of the coverage requirements of subsection (7) at 323 the time of loss. 324 (d) In a claims coverage investigation, a TNC shall 325 immediately provide, upon request by a directly involved party 326 or any insurer of the TNC driver, if applicable, the precise 327 times that the TNC driver logged on and off the digital network 328 in the 12-hour period immediately preceding and in the 12-hour 329 period immediately following the accident. An insurer providing 330 coverage under subsection (7) shall disclose, upon request by 331 any other insurer involved in the particular claim, the 332 applicable coverages, exclusions, and limits provided under any 333 automobile insurance maintained in order to satisfy the 334 requirements of subsection (7). 335 (9) LIMITATION ON TRANSPORTATION NETWORK COMPANIES.—A TNC 336 driver is an independent contractor and not an employee of the 337 TNC if all of the following conditions are met: 338 (a) The TNC does not unilaterally prescribe specific hours 339 during which the TNC driver must be logged on to the TNC’s 340 digital network. 341 (b) The TNC does not prohibit the TNC driver from using 342 digital networks from other TNCs. 343 (c) The TNC does not restrict the TNC driver from engaging 344 in any other occupation or business. 345 (d) The TNC and TNC driver agree in writing that the TNC 346 driver is an independent contractor with respect to the TNC. 347 (10) ZERO TOLERANCE FOR DRUG OR ALCOHOL USE.— 348 (a) The TNC shall implement a zero-tolerance policy 349 regarding a TNC driver’s activities while accessing the TNC’s 350 digital network. The zero-tolerance policy must address the use 351 of drugs or alcohol while a TNC driver is providing a 352 prearranged ride or is logged on to the digital network. 353 (b) The TNC shall provide notice of this policy on its 354 website, as well as procedures to report a complaint about a TNC 355 driver who a rider reasonably suspects was under the influence 356 of drugs or alcohol during the course of the ride. 357 (c) Upon receipt of a rider’s complaint alleging a 358 violation of the zero-tolerance policy, the TNC shall suspend a 359 TNC driver’s ability to accept any ride request through the 360 TNC’s digital network as soon as possible and shall conduct an 361 investigation into the reported incident. The suspension must 362 last the duration of the investigation. 363 (11) TRANSPORTATION NETWORK COMPANY DRIVER REQUIREMENTS.— 364 (a) Before an individual is authorized to accept a ride 365 request through a digital network: 366 1. The individual must submit an application to the TNC 367 which includes information regarding his or her address, age, 368 driver license, motor vehicle registration, and other 369 information required by the TNC; 370 2. The TNC must conduct, or have a third party conduct, a 371 local and national criminal background check that includes: 372 a. A search of the Multi-State/Multi-Jurisdiction Criminal 373 Records Locator or other similar commercial nationwide database 374 with validation of any records through primary source search; 375 and 376 b. A search of the National Sex Offender Public Website 377 maintained by the United States Department of Justice; and 378 3. The TNC must obtain and review, or have a third party 379 obtain and review, a driving history research report for the 380 applicant. 381 (b) The TNC shall conduct the background check required 382 under paragraph (a) for a TNC driver every 3 years. 383 (c) The TNC may not authorize an individual to act as a TNC 384 driver on its digital network if the driving history research 385 report conducted when the individual first seeks access to the 386 digital network reveals that the individual has had more than 387 three moving violations in the prior 3-year period. 388 (d) The TNC may not authorize an individual to act as a TNC 389 driver on its digital network if the background check conducted 390 when the individual first seeks access to the digital network or 391 any subsequent background check required under paragraph (b) 392 reveals that the individual: 393 1. Has been convicted, within the past 5 years, of: 394 a. A felony; 395 b. A misdemeanor for driving under the influence of drugs 396 or alcohol, for reckless driving, for hit and run, or for 397 fleeing or attempting to elude a law enforcement officer; or 398 c. A misdemeanor for a violent offense or sexual battery, 399 or a crime of lewdness or indecent exposure under chapter 800; 400 2. Has been convicted, within the past 3 years, of driving 401 with a suspended or revoked license; 402 3. Is a match in the National Sex Offender Public Website 403 maintained by the United States Department of Justice; 404 4. Does not possess a valid driver license; or 405 5. Does not possess proof of registration for the motor 406 vehicle used to provide prearranged rides. 407 (e) No more often than once every 2 years, the Department 408 of Financial Services shall direct a TNC to submit to the 409 department an agreed-upon procedures report prepared by an 410 independent certified public accountant for the sole purpose of 411 verifying that the TNC is in compliance with this subsection. 412 The report must be prepared in accordance with applicable 413 attestation standards established by the American Institute of 414 Certified Public Accountants. The TNC shall bear all costs 415 associated with the preparation and submission of the report. 416 (f) Upon receipt of the report pursuant to paragraph (e), 417 the Department of Financial Services may impose a fine of up to 418 $250 for each violation of this subsection identified in the 419 report and $500 for each repeat violation. The department may 420 also direct a TNC to address any noncompliance with this 421 subsection identified in the report within a timeframe 422 prescribed by the department. The department may, pursuant to 423 the Florida Rules of Civil Procedure, seek injunctive relief 424 against a TNC that fails to comply with the department’s 425 direction under this paragraph and that poses an imminent threat 426 to public safety as a result of such noncompliance. For purposes 427 of this subsection, a repeat violation occurs when two 428 consecutive reports prepared for a TNC reveal noncompliance with 429 the same requirement. 430 (g) Unless otherwise explicitly provided, this subsection 431 does not extinguish any claim otherwise available under common 432 law or any other statute. 433 (12) PROHIBITED CONDUCT.— 434 (a) A TNC driver may not accept a ride for compensation 435 other than by a rider arranged through a digital network. 436 (b) A TNC driver may not solicit or accept street hails. 437 (13) NONDISCRIMINATION; ACCESSIBILITY.— 438 (a) A TNC shall adopt a policy of nondiscrimination with 439 respect to riders and potential riders and shall notify TNC 440 drivers of such policy. 441 (b) A TNC driver shall comply with the TNC’s 442 nondiscrimination policy. 443 (c) A TNC driver shall comply with all applicable laws 444 regarding nondiscrimination against riders and potential riders. 445 (d) A TNC driver shall comply with all applicable laws 446 relating to accommodation of service animals. 447 (e) A TNC may not impose additional charges for providing 448 services to a person who has a physical disability because of 449 the person’s disability. 450 (f) A TNC that contracts with a governmental entity to 451 provide paratransit services must comply with all applicable 452 state and federal laws related to individuals with disabilities. 453 (g) A TNC shall reevaluate any decision to remove a TNC 454 driver’s authorization to access its digital network due to a 455 low quality rating by riders if the TNC driver alleges that the 456 low quality rating was because of a characteristic identified in 457 the company’s nondiscrimination policy and there is a plausible 458 basis for such allegation. 459 (14) RECORDS.—A TNC shall maintain the following records: 460 (a) Individual ride records for at least 1 year after the 461 date on which each ride is provided; and 462 (b) Individual records of TNC drivers for at least 1 year 463 after the date on which the TNC driver’s relationship with the 464 TNC ends. 465 (15) PREEMPTION.— 466 (a) It is the intent of the Legislature to provide for 467 uniformity of laws governing TNCs, TNC drivers, and TNC vehicles 468 throughout the state. TNCs, TNC drivers, and TNC vehicles are 469 governed exclusively by state law, including in any locality or 470 other jurisdiction that enacted a law or created rules governing 471 TNCs, TNC drivers, or TNC vehicles before July 1, 2017. A 472 county, municipality, special district, airport authority, port 473 authority, or other local governmental entity or subdivision may 474 not: 475 1. Impose a tax on, or require a license for, a TNC, a TNC 476 driver, or a TNC vehicle if such tax or license relates to 477 providing prearranged rides; 478 2. Subject a TNC, a TNC driver, or a TNC vehicle to any 479 rate, entry, operation, or other requirement of the county, 480 municipality, special district, airport authority, port 481 authority, or other local governmental entity or subdivision; or 482 3. Require a TNC or a TNC driver to obtain a business 483 license or any other type of similar authorization to operate 484 within the local governmental entity’s jurisdiction. 485 (b) This subsection does not prohibit an airport or seaport 486 from charging reasonable pickup fees consistent with any pickup 487 fees charged to taxicab companies at that airport or seaport for 488 their use of the airport’s or seaport’s facilities or prohibit 489 the airport or seaport from designating locations for staging, 490 pickup, and other similar operations at the airport or seaport. 491 Section 2. This act shall take effect July 1, 2017.