Florida Senate - 2016                          SENATOR AMENDMENT
       Bill No. CS for CS for SB 1118
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                  Floor: WD            .                                
             03/10/2016 12:12 PM       .                                

       Senator Brandes moved the following:
    1         Senate Amendment (with title amendment)
    3         Delete everything after the enacting clause
    4  and insert:
    5         Section 1. Subsections (94) through (99) are added to
    6  section 316.003, Florida Statutes, to read:
    7         316.003 Definitions.—The following words and phrases, when
    8  used in this chapter, shall have the meanings respectively
    9  ascribed to them in this section, except where the context
   10  otherwise requires:
   11         (94) DIGITAL NETWORK.An online-enabled application,
   12  website, or system offered or used by a transportation network
   13  company that enables the prearrangement of rides with
   14  transportation network company drivers.
   15         (95) TRANSPORTATION NETWORK COMPANY.A corporation, a
   16  partnership, a sole proprietorship, or any other entity that
   17  uses a digital network to connect transportation network company
   18  riders to transportation network company drivers who provide
   19  prearranged rides. A transportation network company is not
   20  deemed to control, direct, or manage the personal vehicles or
   21  transportation network company drivers that connect to its
   22  digital network, except where agreed to by written contract.
   23         (96) PREARRANGED RIDE.The provision of transportation by a
   24  transportation network company driver to a transportation
   25  network company rider which:
   26         (a) Begins when a transportation network company driver
   27  accepts a transportation network company rider’s request for a
   28  ride through a digital network controlled by the transportation
   29  network company;
   30         (b) Continues while the transportation network company
   31  driver transports the requesting transportation network company
   32  rider; and
   33         (c) Ends when the last requesting transportation network
   34  company rider departs from the personal vehicle.
   36  The term does not include transportation provided through a
   37  shared-expense carpool or vanpool arrangement; use of a taxicab,
   38  limousine, or other for-hire vehicle; or a regional
   39  transportation authority.
   40         (97) PERSONAL VEHICLE.—A vehicle that is:
   41         (a) Used by a transportation network company driver to
   42  provide a prearranged ride;
   43         (b) Owned, leased, or otherwise authorized for use by the
   44  transportation network company driver; and
   45         (c) Not a taxicab, a limousine, or any other for-hire
   46  vehicle.
   48  Notwithstanding any other law, a vehicle that is let or rented
   49  to another for consideration may be used as a personal vehicle.
   51  individual who:
   52         (a) Receives connections to potential riders and related
   53  services from a transportation network company in exchange for
   54  payment of a fee to the transportation network company; and
   55         (b) Uses a personal vehicle to offer or provide a
   56  prearranged ride to transportation network company riders upon
   57  connection through a digital network controlled by a
   58  transportation network company and in exchange for compensation
   59  or payment of a fee.
   61  individual or persons who use a transportation network company’s
   62  digital network to connect with a transportation network company
   63  driver who provides a prearranged ride to the rider in the
   64  driver’s personal vehicle between points chosen by the rider.
   65         Section 2. Section 316.68, Florida Statutes, is created to
   66  read:
   67         316.68Transportation network company and driver insurance
   68  requirements.—
   69         (1) Effective July 1, 2016, a transportation network
   70  company driver or a transportation network company on the
   71  driver’s behalf shall maintain primary automobile insurance that
   72  meets the following requirements:
   73         (a) The insurance must recognize that the driver is a
   74  transportation network company driver or otherwise uses a
   75  vehicle to transport riders for compensation, and must cover the
   76  driver while the driver is logged on to the transportation
   77  network company’s digital network or while the driver is engaged
   78  in a prearranged ride.
   79         (b) While the driver is logged into the transportation
   80  network company’s digital network and is available to receive
   81  transportation requests, but is not engaged in a prearranged
   82  ride, the driver must be covered for liability in the amount of
   83  at least $50,000 for death and bodily injury per person, at
   84  least $100,000 for death and bodily injury per incident, and at
   85  least $25,000 for property damage and must have coverage that
   86  meets the minimum requirements under ss. 627.730-627.7405.
   87         (c) While the driver is engaged in a prearranged ride, the
   88  driver must be covered in the amount of at least $1 million for
   89  death, bodily injury, and property damage and must have coverage
   90  that meets the minimum requirements for a limousine under ss.
   91  627.730-627.7405.
   92         (d) The coverage requirements of paragraphs (b) and (c) may
   93  be satisfied by the driver, by the transportation network
   94  company, or by a combination of the driver and the
   95  transportation network company. If the driver maintains the
   96  coverage and the coverage lapses or does not meet the
   97  requirements in this subsection, the transportation network
   98  company must provide the required coverage beginning with the
   99  first dollar of a claim and shall have the duty to defend such
  100  claim.
  101         (2)Coverage under an automobile insurance policy
  102  maintained by the transportation network company is not
  103  dependent on a personal automobile insurer’s first denying a
  104  claim, nor is a personal automobile insurance policy required to
  105  first deny a claim.
  106         (3) Insurance coverage that meets the requirements of this
  107  section satisfies the financial responsibility requirement for a
  108  motor vehicle under chapter 324 and the security required under
  109  s. 627.733.
  110         (4) A driver shall carry proof of the coverage under this
  111  section at all times while using a vehicle in connection with a
  112  transportation network company’s digital network. If the driver
  113  is involved in an accident while using a vehicle for such
  114  purpose, the driver must provide this insurance coverage
  115  information to the directly interested parties, automobile
  116  insurers, and investigating police officers. Such proof of
  117  financial responsibility required under s. 316.646 may be
  118  presented through a digital phone application controlled by a
  119  transportation network company. Upon request, the driver must
  120  also disclose to directly interested parties, automobile
  121  insurers, and investigating police officers whether he or she
  122  was logged into the transportation network company’s digital
  123  network or engaged in a prearranged ride at the time of the
  124  accident.
  125         (5) If a transportation network company’s insurer makes a
  126  payment for a claim covered under comprehensive coverage or
  127  collision coverage, the transportation network company must
  128  direct the insurer to issue the payment directly to the business
  129  repairing the vehicle or jointly to the owner of the vehicle and
  130  the primary lienholder on the covered vehicle.
  131         (6) Insurance required by this section may be placed with
  132  an insurer authorized to do business in this state or with a
  133  surplus lines insurer eligible under ss. 626.913-626.937.
  134         (7) The transportation network company shall disclose in
  135  writing to transportation network company drivers the following
  136  information before such drivers may accept a request for a
  137  prearranged ride on the transportation network company’s digital
  138  network:
  139         (a) The insurance coverage, including types of coverage and
  140  the limits for each coverage, that the transportation network
  141  company provides while the driver uses a personal vehicle in
  142  connection with a digital network; and
  143         (b) A notice that the driver’s own automobile insurance
  144  policy, depending on its terms, might not provide any coverage
  145  while the driver is logged on to the transportation network
  146  company’s digital network and is available to receive
  147  transportation requests or is engaged in a prearranged ride.
  148         (8) Insurers that write automobile insurance in this state
  149  may exclude any coverage afforded under the policy issued to an
  150  owner or operator of a personal vehicle for any loss or injury
  151  that occurs while a driver is logged on to a transportation
  152  network company’s digital network or while a driver provides a
  153  prearranged ride. This right to exclude coverage applies to any
  154  coverage included in an automobile insurance policy, including,
  155  but not limited to:
  156         (a) Liability coverage for bodily injury and property
  157  damage;
  158         (b) Uninsured and underinsured motorist coverage;
  159         (c) Medical payments coverage;
  160         (d) Comprehensive physical damage coverage;
  161         (e) Collision physical damage coverage; and
  162         (f) Personal injury protection.
  164  Exclusions under this subsection apply notwithstanding any
  165  requirement under chapter 324. This subsection does not require
  166  a personal automobile insurance policy to provide coverage while
  167  the driver is logged in to the transportation network company’s
  168  digital network, while the driver is engaged in a prearranged
  169  ride, or while the driver otherwise uses a vehicle to transport
  170  riders for compensation. Nothing in this subsection requires an
  171  insurer to use any particular policy language or reference to
  172  this section in order to exclude any and all coverage for any
  173  loss or injury that occurs while a driver is logged on to a
  174  transportation network company’s digital network or while a
  175  driver provides a prearranged ride. Nothing in this subsection
  176  precludes an insurer from providing primary or excess coverage
  177  for the transportation network company driver’s vehicle if the
  178  insurer chooses to do so by contract or endorsement.
  179         (9) Automobile insurers that exclude the coverage described
  180  in this section have no duty to defend or indemnify any claim
  181  expressly excluded thereunder. This section does not invalidate
  182  or limit an exclusion contained in a policy, including any
  183  policy in use or approved for use in this state before the
  184  effective date of this section, which excludes coverage for
  185  vehicles used to carry persons or property for a charge or
  186  available for hire by the public. An automobile insurer that
  187  defends or indemnifies a claim against a driver that is excluded
  188  under the terms of its policy has a right of contribution
  189  against other insurers that provide automobile insurance to the
  190  same driver in satisfaction of the coverage requirements of this
  191  section at the time of loss.
  192         (10)In a claims coverage investigation, transportation
  193  network companies shall immediately provide, upon request by
  194  directly involved parties or by any insurer of the
  195  transportation network company driver, if applicable, the
  196  precise times that a driver logged on and off of the
  197  transportation network company’s digital network in the 12-hour
  198  period immediately before and in the 12-hour period immediately
  199  after the accident. Insurers providing coverage under this
  200  section shall disclose upon request by any other insurer
  201  involved in the particular claim the applicable coverages,
  202  exclusions, and limits provided under any automobile insurance
  203  maintained in order to satisfy the requirements of this section.
  204         Section 3. Paragraph (a) of subsection (2) of section
  205  324.022, Florida Statutes, is amended to read:
  206         324.022 Financial responsibility for property damage.—
  207         (2) As used in this section, the term:
  208         (a) “Motor vehicle” means any self-propelled vehicle that
  209  has four or more wheels and that is of a type designed and
  210  required to be licensed for use on the highways of this state,
  211  and any trailer or semitrailer designed for use with such
  212  vehicle. The term does not include:
  213         1. A mobile home.
  214         2. A motor vehicle that is used in mass transit and
  215  designed to transport more than five passengers, exclusive of
  216  the operator of the motor vehicle, and that is owned by a
  217  municipality, transit authority, or political subdivision of the
  218  state.
  219         3. A school bus as defined in s. 1006.25.
  220         4. A vehicle providing for-hire transportation that is
  221  subject to the provisions of s. 324.031. A taxicab shall
  222  maintain security as required under s. 324.032 s. 324.032(1).
  223         Section 4. Section 324.031, Florida Statutes, is amended to
  224  read:
  225         324.031 Manner of proving financial responsibility.—The
  226  owner or operator of a taxicab, a limousine, a jitney, a vehicle
  227  used to provide transportation network company services, or any
  228  other for-hire passenger transportation vehicle may prove
  229  financial responsibility by providing satisfactory evidence of
  230  holding a motor vehicle liability policy as defined in s.
  231  324.021(8) or s. 324.151, which policy is issued by an insurance
  232  carrier that which is a member of the Florida Insurance Guaranty
  233  Association or by an eligible surplus lines insurer under s.
  234  626.918. The operator or owner of any other vehicle may prove
  235  his or her financial responsibility by:
  236         (1) Furnishing satisfactory evidence of holding a motor
  237  vehicle liability policy as defined in ss. 324.021(8) and
  238  324.151;
  239         (2) Furnishing a certificate of self-insurance showing a
  240  deposit of cash in accordance with s. 324.161; or
  241         (3) Furnishing a certificate of self-insurance issued by
  242  the department in accordance with s. 324.171.
  244  Any person, including any firm, partnership, association,
  245  corporation, or other person, other than a natural person,
  246  electing to use the method of proof specified in subsection (2)
  247  shall furnish a certificate of deposit equal to the number of
  248  vehicles owned times $30,000, to a maximum of $120,000; in
  249  addition, any such person, other than a natural person, shall
  250  maintain insurance providing coverage in excess of limits of
  251  $10,000/20,000/10,000 or $30,000 combined single limits, and
  252  such excess insurance shall provide minimum limits of
  253  $125,000/250,000/50,000 or $300,000 combined single limits.
  254  These increased limits shall not affect the requirements for
  255  proving financial responsibility under s. 324.032 s. 324.032(1).
  256         Section 5. Section 324.032, Florida Statutes, is amended to
  257  read:
  258         324.032 Manner of proving financial responsibility; for
  259  hire passenger transportation vehicles.—Notwithstanding the
  260  provisions of s. 324.031:
  261         (1)(a) A person who is either the owner or a lessee
  262  required to maintain insurance under s. 627.733(1)(b) and who
  263  operates one or more taxicabs, limousines, jitneys, or any other
  264  for-hire passenger transportation vehicles may prove financial
  265  responsibility by furnishing satisfactory evidence of holding a
  266  motor vehicle liability policy, but with minimum limits of
  267  $125,000/250,000/50,000.
  268         (2)(b) A person who is either the owner or a lessee
  269  required to maintain insurance under s. 324.021(9)(b) and who
  270  operates limousines, jitneys, or any other for-hire passenger
  271  vehicles, other than taxicabs, may prove financial
  272  responsibility by furnishing satisfactory evidence of holding a
  273  motor vehicle liability policy as defined in s. 324.031.
  274         (2) An owner or a lessee who is required to maintain
  275  insurance under s. 324.021(9)(b) and who operates at least 300
  276  taxicabs, limousines, jitneys, or any other for-hire passenger
  277  transportation vehicles may provide financial responsibility by
  278  complying with the provisions of s. 324.171, such compliance to
  279  be demonstrated by maintaining at its principal place of
  280  business an audited financial statement, prepared in accordance
  281  with generally accepted accounting principles, and providing to
  282  the department a certification issued by a certified public
  283  accountant that the applicant’s net worth is at least equal to
  284  the requirements of s. 324.171 as determined by the Office of
  285  Insurance Regulation of the Financial Services Commission,
  286  including claims liabilities in an amount certified as adequate
  287  by a Fellow of the Casualty Actuarial Society.
  289  Upon request by the department, the applicant must provide the
  290  department at the applicant’s principal place of business in
  291  this state access to the applicant’s underlying financial
  292  information and financial statements that provide the basis of
  293  the certified public accountant’s certification. The applicant
  294  shall reimburse the requesting department for all reasonable
  295  costs incurred by it in reviewing the supporting information.
  296  The maximum amount of self-insurance permissible under this
  297  subsection is $300,000 and must be stated on a per-occurrence
  298  basis, and the applicant shall maintain adequate excess
  299  insurance issued by an authorized or eligible insurer licensed
  300  or approved by the Office of Insurance Regulation. All risks
  301  self-insured shall remain with the owner or lessee providing it,
  302  and the risks are not transferable to any other person, unless a
  303  policy complying with subsection (1) is obtained.
  304         Section 6. Paragraph (b) of subsection (1) of section
  305  627.733, Florida Statutes, is amended to read:
  306         627.733 Required security.—
  307         (1)
  308         (b) Every owner or registrant of a motor vehicle used as a
  309  taxicab shall not be governed by paragraph (1)(a) but shall
  310  maintain security as required under s. 324.032 s. 324.032(1),
  311  and s. 627.737 shall not apply to any motor vehicle used as a
  312  taxicab.
  313         Section 7. Section 627.747, Florida Statutes, is created to
  314  read:
  315         627.747 Coverage for part-time commercial uses of a
  316  personal vehicle.—An insurer may offer a policy or an
  317  endorsement to an existing personal automobile policy covering a
  318  personal vehicle that is used part time for commercial purposes.
  319  Such part-time commercial uses include, but are not limited to,
  320  prearranged rides as defined in s. 316.003.
  321         Section 8. This act shall take effect July 1, 2016.
  322  ================= T I T L E  A M E N D M E N T ================
  323  And the title is amended as follows:
  324         Delete everything before the enacting clause
  325  and insert:
  326                        A bill to be entitled                      
  327         An act relating to transportation network company
  328         insurance; amending s. 316.003, F.S.; providing
  329         definitions; creating s. 316.68, F.S.; providing
  330         primary automobile insurance requirements for
  331         transportation network companies and transportation
  332         network company drivers; specifying coverage
  333         requirements under certain circumstances; providing
  334         requirements for insurance maintained by a
  335         transportation network company on a driver’s behalf;
  336         providing for construction; requiring a driver to
  337         carry proof of coverage at all times and provide
  338         certain information to specified parties in the event
  339         of an accident; requiring a transportation network
  340         company to direct its insurer to issue payments to
  341         specified entities under certain circumstances;
  342         providing requirements for an insurer that provides
  343         the required insurance; requiring a transportation
  344         network company to provide a specified disclosure to
  345         its drivers; authorizing an insurer to exclude
  346         coverage for certain loss or injury; providing for
  347         construction; requiring transportation network
  348         companies and insurers to provide specified
  349         information during a claims coverage investigation;
  350         amending s. 324.022, F.S.; conforming a cross
  351         reference; amending s. 324.031, F.S.; adding a vehicle
  352         used to provide transportation network company
  353         services to a list of vehicles that may prove
  354         financial responsibility in a specified manner; adding
  355         the holding of a motor vehicle liability policy issued
  356         by an eligible surplus lines insurer as satisfactory
  357         evidence of financial responsibility; conforming a
  358         cross-reference; amending s. 324.032, F.S.; deleting a
  359         provision that authorizes a manner of proving
  360         financial responsibility for certain owners or lessees
  361         operating for-hire vehicles; amending s. 627.733,
  362         F.S.; conforming a cross-reference; creating s.
  363         627.747, F.S.; authorizing an insurer to provide
  364         certain coverage for part-time commercial uses of a
  365         personal vehicle; providing an effective date.