AN ACT REGULATING TRANSPORTATION NETWORK COMPANIES.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. (NEW) (Effective July 1, 2015) (a) As used in this section and sections 2 to 5, inclusive, of this act:

(1) "Transportation network company" means a company, including a corporation, partnership, trust, association, sole proprietorship or similar organization, that provides prearranged transportation services by means of a digital network or software application service that connects passengers to transportation network company services provided by transportation network company drivers. "Transportation network company" does not include a taxicab or a for-hire vehicle owner.

(2) "Transportation network company driver" means an individual who is not an employee of a transportation network company, but who provides transportation network company services using a motor vehicle that is (A) owned, leased or otherwise authorized for use by the individual, and (B) not a taxicab, motor vehicle for livery service or any other for-hire vehicle.

(3) "Transportation network company services" means the transportation of a passenger between points chosen by the passenger and prearranged with a transportation network company driver through the use of the transportation network company's digital network or software application service. "Transportation network company services" commence when a transportation network company driver accepts a request for transportation received through such digital network or software application service, continue while the transportation network company driver transports the passenger in such driver's motor vehicle, and end when the passenger exits such vehicle.

(4) "Taxicab" has the same meaning as provided in section 13b-95 of the general statutes, as amended by this act.

(5) "Motor vehicle in livery service" has the same meaning as provided in section 13b-101 of the general statutes, as amended by this act.

(b) A transportation network company shall register annually with the Commissioner of Transportation, in writing, on a form provided by the commissioner. The registration shall include (1) the transportation network company's name, business address and telephone number; (2) if the company is registered in another state, the name, address and telephone number of the company's agent for service of process in this state; (3) the name, address and telephone number of a person at the company who will serve as the main contact for communications between the commissioner and the company; (4) information sufficient to demonstrate, to the commissioner's satisfaction, the company's compliance with the provisions of this section and section 2 of this act; and (5) any other nonproprietary information the commissioner may require. Each annual registration shall be accompanied by a fee of five thousand dollars.

(c) (1) The transportation network company's Internet web site or software application service shall display to a potential passenger a picture of the transportation network company driver and the license plate number of the motor vehicle being used to provide transportation network company services, before such passenger enters such vehicle.

(2) A transportation network company driver shall display on the motor vehicle being used to provide transportation network company services a consistent and distinctive logo, insignia or emblem at all times when the transportation network company driver is providing transportation network company services. Such logo, insignia or emblem shall be (A) sufficiently large so as to be readable during daylight hours at a distance of at least fifty feet, and (B) reflective, illuminated or otherwise visible in darkness.

(d) (1) A transportation network company may charge a fare for the transportation network company services provided to passengers, provided the transportation network company shall disclose to passengers by means of its Internet web site or software application service (A) the fare calculation method, (B) the applicable rates being charged, and (C) an option to receive an estimated fare prior to entering the transportation network company driver's motor vehicle.

(2) Within a reasonable period of time following the completion of transportation network company services, a transportation network company shall transmit an electronic receipt to the passenger that lists the origin and destination of the trip, the total time and distance of the trip, and an itemization of the total fare paid, if any.

(3) A transportation network company shall adopt a policy prohibiting the solicitation or acceptance of cash payments from passengers and shall notify transportation network company drivers of such policy. Any payment for transportation network company services shall be made only electronically, using the transportation network company's digital network or software application service.

(4) For purposes of this subdivision, "dynamic pricing" means offering transportation network company services at a price that changes according to the level of demand. If demand for transportation network company services is high, and the transportation network company elects to implement dynamic pricing, the transportation network company's Internet web site or software application service shall (A) provide notice to a potential passenger that dynamic pricing is in effect prior to such passenger requesting transportation network company services, (B) include a feature that requires a potential passenger to confirm that he or she understands that dynamic pricing will be applied before such services request may be completed, and (C) provide a fare estimator that enables the potential passenger to estimate the cost under dynamic pricing prior to requesting such services.

(e) (1) A transportation network company shall adopt a policy of nondiscrimination on the basis of destination, age, race, color, creed, sex, sexual orientation, gender identity, national origin, intellectual disability or physical disability with respect to passengers and potential passengers, and shall notify all transportation network company drivers of such policy.

(2) A transportation network company shall provide a potential passenger with an opportunity to indicate whether a wheelchair-accessible vehicle is required. If a transportation network company cannot arrange wheelchair-accessible transportation network company services, the company shall direct the potential passenger to an alternate provider of wheelchair-accessible service, if available.

(f) A transportation network company shall maintain (1) individual trip records for at least one year after the date such transportation network company services were provided, and (2) transportation network company driver records for at least one year after the date such driver's activation on the company's digital network or software application service ended.

Sec. 2. (NEW) (Effective July 1, 2015) (a) Prior to permitting an individual to act as a transportation network company driver on its digital network or software application service, a transportation network company shall (1) require the individual to submit an application to the company that includes the individual's name, address, age, operator's license number, as defined in section 14-1 of the general statutes, driving history record, motor vehicle registration and proof of financial responsibility, as required by section 14-112 of the general statutes, and (2) conduct, or have a third party accredited by the National Association of Professional Background Screeners conduct, a state and national criminal history records check, including a search of state and national sexual offender registry databases, or arrange for the fingerprinting of the individual to be submitted to the Federal Bureau of Investigation for a national criminal history records check.

(b) No individual shall be hired by a transportation network company to be a transportation network company driver if such individual: (1) Has more than three moving violations in the three years prior to the date of such individual's application to be a driver, or one major violation in such three-year period; (2) has been convicted, within seven years prior to the date of such individual's application to be a driver, of driving under the influence of drugs or alcohol, fraud, sexual offenses, use of a motor vehicle to commit a felony, a crime involving property damage, theft, acts of violence or acts of terror; (3) is listed in the state or national sexual offenders registry; (4) does not possess a valid operator's license; (5) does not possess proof of registration for each motor vehicle used to provide transportation network company services; (6) does not possess proof of financial responsibility as required under section 3 of this act for each motor vehicle used to provide transportation network company services; or (7) is not at least nineteen years of age.

(c) A transportation network company driver (1) shall comply with all applicable laws regarding nondiscrimination against passengers or potential passengers on the basis of race, color, national origin, religious belief or affiliation, sex, disability, age, sexual orientation or gender identity, (2) shall comply with all applicable laws relating to accommodation of service animals, (3) shall not impose additional charges for providing services to persons with physical disabilities because of such disabilities, (4) may only accept rides booked through the transportation network company's digital network or software application service, and (5) shall not solicit or accept street hails.

(d) (1) A transportation network company shall implement a zero tolerance policy on the use of drugs or alcohol while a transportation network company driver is providing transportation network company services, or is logged into the company's digital network or software application service and is not providing such services. Such company shall provide notice of this policy on its Internet web site and software application service, and include procedures to report a complaint about a transportation network company driver whom a passenger reasonably suspects was under the influence of drugs or alcohol during the course of the transportation network company services.

(2) Upon receipt of a passenger complaint alleging a violation of such policy, the transportation network company shall immediately suspend such driver's access to the company's digital network and software application service and shall conduct an investigation into the reported incident. The suspension shall last until completion of the investigation.

(3) The company shall maintain all records relevant to the enforcement of such policy for a period of not less than two years from the date that a passenger complaint is received by the company.

(e) (1) The motor vehicles used to provide transportation network company services may be coupes, sedans and other light-duty vehicles, including vans, minivans, sport utility vehicles, hatchbacks, convertibles and pickup trucks that are equipped and licensed for operation on public roads.

(2) Before an individual is authorized to be a transportation network company driver, and every two years thereafter, the transportation network company shall ensure that a dealer or repairer, licensed under sections 14-51 to 14-65l, inclusive, of the general statutes, conduct a safety inspection of any motor vehicle that such transportation network company driver uses to provide transportation network company services. The transportation network company and such transportation network company driver shall maintain documentation of such inspections for not less than two years. The safety inspection shall include, but need not be limited to, (A) foot brakes, (B) emergency brakes, (C) steering mechanism, (D) windshield, (E) rear window and other glass, (F) windshield wipers, (G) headlights, (H) tail lights, (I) turn indicator lights, (J) brake lights, (K) front seat adjustment mechanism, (L) doors, (M) horn, (N) speedometer, (O) bumpers, (P) muffler and exhaust system, (Q) condition of tires, including tread depth, (R) interior and exterior rearview mirrors, and (S) safety belts and air bags for driver and passengers. Such safety inspection shall be in addition to any other inspections required by law.

(3) Motor vehicles used to provide transportation network company services shall be subject to inspection by agents or employees of the Department of Motor Vehicles.

Sec. 3. (NEW) (Effective July 1, 2015) Each transportation network company driver shall maintain sufficient financial responsibility that satisfies any claim for damages by reason of personal injury to, or the death of, any one person and for damage to property, in the following amounts:

(1) For personal injury or death, at least: (A) For any one person, fifty thousand dollars; and (B) for all persons on account of any accident, where the carrying capacity of the motor vehicle used to provide transportation network company services is (i) seven passengers or less, one hundred thousand dollars, (ii) eight to twelve passengers, inclusive, one hundred fifty thousand dollars, (iii) thirteen to twenty passengers, inclusive, two hundred thousand dollars, (iv) twenty-one to thirty passengers, inclusive, two hundred fifty thousand dollars, and (v) thirty-one passengers or more, three hundred thousand dollars; and

(2) For damage to property, at least ten thousand dollars.

Sec. 4. (NEW) (Effective July 1, 2015) (a) If the Commissioner of Transportation finds that a transportation network company has violated any provision of sections 1 and 2 of this act, such company shall be fined not more than five hundred dollars for the first offense and for a second offense shall be fined two thousand dollars and may be enjoined from further provision in this state of transportation network company services, as provided in subsection (b) of this section.

(b) Any transportation network company that violates any provision of sections 1 and 2 of this act may be enjoined from further operation or provision of any transportation network company services by order of the Superior Court. The Commissioner of Transportation shall bring any application for an injunction to the judicial district in which the agent for service of process of any such transportation network company is located. The court, upon a finding of a violation of sections 1 and 2 of this act, may issue an injunction and make such orders for the discontinuance of such business as it deems equitable.

Sec. 5. (NEW) (Effective July 1, 2015) Any person who provides for-hire transportation in a personal motor vehicle without being a transportation network company driver, or who provides for-hire transportation services in a personal motor vehicle without going through a transportation network company's digital network or software application service shall be guilty of a class A misdemeanor.

Sec. 6. Subsection (a) of section 13b-97 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2015):

(a) No person, association, limited liability company or corporation shall operate a taxicab until such person, association, limited liability company or corporation has obtained a certificate from the Department of Transportation certifying that public convenience and necessity require the operation of a taxicab or taxicabs for transportation of passengers, the acceptance or solicitation of which originates within the territory specified in such certificate except as provided under subsection (d) of this section. No such certificate shall be issued unless the department finds that the person, association, limited liability company or corporation is suitable to operate a taxicab service, after giving due consideration to, at a minimum, the following factors: (1) Any convictions of the applicant under federal, state or local laws relative to safety, motor vehicle or criminal violations; (2) the number of taxicabs to be operated under the certificate, provided no applicant for a new certificate shall operate fewer than three taxicabs; (3) the adequacy of the applicant's financial resources to operate the taxicab service; (4) the adequacy of insurance coverage and safety equipment; and (5) the availability of qualified taxicab operators. The commissioner shall request the state criminal history records check for any person or any officer of any association, limited liability company or corporation applying for such certificate from the State Police Bureau of Identification. The commissioner shall [arrange for the fingerprinting of any person or any officer of any association, limited liability company or corporation applying for such certificate and forward the fingerprints to said bureau which shall submit the fingerprints] conduct, or have an accredited third party conduct, a state and national criminal history records check, including a search of the state and national sexual offender registry databases, or may arrange for the fingerprinting of such person or officer to be submitted to the Federal Bureau of Investigation for a national criminal history records check for any federal conviction specified in subdivision (1) of this subsection. The commissioner shall charge a fee for each such national criminal history records check which shall be equal to the fee charged by the Federal Bureau of Investigation for performing such check. Such certificate shall be issued only after written application, fingerprinting [and] or said criminal history records check for the same has been made and public hearing held thereon. The application shall be accompanied by a fee of two thousand dollars and the fee for said criminal history records check. Upon receipt of such application, the department shall fix a time and place of hearing thereon, provided such hearing shall be held not earlier than three months after such receipt, and shall promptly give written notice of the pendency of such application and of the time and place of hearing thereon to such applicant, the mayor of each city, the warden of each borough or the first selectman of each town in which the applicant desires to originate the transportation of such passengers, and to any common carrier operating within the territory specified. Notwithstanding any provision of this subsection, [to the contrary,] the department may, upon receipt of a written application, amend an existing certificate to increase the number of taxicabs which may be operated pursuant to the certificate without holding a hearing on the application, provided the department issues a legal notice of such application in a daily newspaper in accordance with the provisions of section 1-2, gives written notice of the pendency of such application to any common carrier operating within the territory specified and no objection is filed with the department within thirty days of each such notice.

Sec. 7. Section 13b-95 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2015):

The term "taxicab" includes any motor vehicle operated upon any street or highway or on call or demand accepting or soliciting passengers indiscriminately for transportation for hire between such points along streets or highways as may be directed by the passenger or passengers being transported, provided nothing in this chapter shall be construed to include, as a taxicab, a motor bus, as defined in section 14-1, [or] a motor vehicle in livery service when such motor vehicle is hired for a specific trip or trips and is subject to the direction of the person hiring the same, or a motor vehicle operated by a transportation network company driver.

Sec. 8. Section 13b-101 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2015):

The term "motor vehicle in livery service" includes every motor vehicle used by any person, association, limited liability company or corporation which represents itself to be in the business of transporting passengers for hire, except (1) any motor bus and any taxicab operated under a certificate of public convenience and necessity issued by the Department of Transportation, (2) any school bus, as defined in section 14-275, or student transportation vehicle, as defined in section 14-212, when used for the transportation of children under the age of twenty-one years, (3) any school bus, as defined in section 14-275, when used for the transportation of passengers (A) by virtue of a contract with any public or private institution of higher education, (B) pursuant to a contract for service to a special event held at a location or facility which is not open for business on a daily basis throughout the year, not to exceed a period of ten days, or (C) pursuant to a contract with a municipality for which the carrier provides school transportation service, (4) any motor vehicle operated by or through a community-based regional transportation system for the elderly established pursuant to section 55 of public act 05-280, [and] (5) any motor vehicle operated by or through a community-based regional transportation system for the visually impaired, and (6) any motor vehicle operated by a transportation network company driver.