Bill Text: HI HB1463 | 2016 | Regular Session | Amended
Bill Title: Transportation Network Companies; Regulation; Insurance
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Introduced - Dead) 2016-01-27 - The committee(s) on CPC recommend(s) that the measure be deferred. [HB1463 Detail]
Download: Hawaii-2016-HB1463-Amended.html
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
1463 |
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TWENTY-EIGHTH LEGISLATURE, 2015 |
H.D. 2 |
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STATE OF HAWAII |
PROPOSED |
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A BILL FOR AN ACT
RELATING TO TRANSPORTATION.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The Hawaii Revised Statutes is amended by adding a new chapter to be appropriately designated and to read as follows:
"Chapter
transportation network companies
§ -1 Definitions. As used in this chapter, the following terms shall mean as follows:
"Personal vehicle" means a motor vehicle that is:
(1) Used by a transportation network company driver to provide a prearranged ride;
(2) Owned, leased, or otherwise authorized for use by the transportation network company driver; and
(3) Not a taxicab, limousine, or other hire vehicle.
"Digital network" means any online-enabled application, software, website, or system offered or used by a transportation network company that enables the prearrangement of rides with transportation network company drivers.
"Transportation network company" means a corporation, partnership, sole proprietorship, or other entity that is licensed in this State that uses a digital network to connect transportation network company riders to transportation network company drivers who provide prearranged rides. A transportation network company shall not be deemed to control, direct, or manage the personal vehicles or transportation network company drivers that connect to its digital network, except where agreed by written contract.
"Transportation network company driver" or "driver" means an individual who:
(1) Receives connections to potential riders and related services from a transportation network company in exchange for payment of a fee to the transportation network company; and
(2) Uses a personal vehicle to offer or provide a prearranged ride to transportation network company riders upon connection through a digital network controlled by a transportation network company and in exchange for compensation or payment of a fee.
"Transportation network company rider" or "rider" means a person who uses a transportation network company's digital network to connect with a transportation network driver who provides prearranged rides to the rider in the driver's personal vehicle between points chosen by the rider.
"Prearranged ride" means the provision of transportation by a transportation network company driver to a transportation network company rider:
(1) Beginning when a transportation network company driver accepts a transportation network company rider's request for a ride through a digital network controlled by a transportation network company;
(2) Continuing while the transportation network company driver transports the requesting transportation network company rider; and
(3) Ending when the requesting transportation network company rider departs from the personal vehicle.
The term "prearranged ride" does not include transportation provided through:
(1) Shared expense carpool or vanpool arrangements;
(2) The use of a taxicab, limousine, or other hire vehicle; or
(3) A regional transportation.
§ -2 Transportation network companies. (a) No transportation network company shall operate within the State without a permit issued by the public utilities commission. The permit shall be valid for one year after the date of issuance; provided that the permit shall not entitle its holder to present itself as:
(1) A common carrier;
(2) A contract carrier; or
(3) A motor carrier.
(b) The department shall issue a permit to a transportation network company that:
(1) Establishes a zero tolerance policy for drug and alcohol;
(2) Requires its drivers to comply with applicable vehicle requirements;
(3) Adopts nondiscrimination and accessibility policies; and
(4) Establishes record maintenance guidelines.
(c) Before a transportation network company allows an individual to act as a transportation network company driver on the transportation network company's digital network, the transportation network company shall:
(1) Require the individual to submit to the transportation network company an application that includes:
(A) The individual's name, address, and age;
(B) The individual's driver's license number;
(C) The registration number for the personal vehicle that the individual will use to provide prearranged rides;
(D) Proof of financial responsibility for the personal vehicle of a type and in the amounts required by the transportation network company; and
(E) Any other information required by the transportation network company;
(2) With respect to the individual:
(A) Conduct a state and national criminal background check; and
(B) Search the state and national sex offender registries; and
(C) Obtain a copy of the individual's driving record.
(d) No transportation network company shall knowingly allow a person to act as a transportation network company driver on the transportation network company's digital network:
(1) Who has been convicted of:
(A) More than three moving violations in the preceding three years; or
(B) At least one moving violation involving reckless driving or driving on a suspended or revoked license in the preceding three years; or
(2) Who has been convicted in the preceding seven years of any of the following offenses:
(A) Felony; or
(B) Misdemeanor involving:
(i) Resisting law enforcement;
(ii) Dishonesty;
(iii) Injury to a person;
(iv) Operating while intoxicated;
(v) Operating a vehicle in a manner that endangers a person; or
(vi) Operating a vehicle with a suspended or revoked license; or
(vii) Damage to the property of another person; or
(3) Who is a match in the state or national sex offender registry;
(4) Who is unable to provide information required under subsection (c)(2).
(e) A transportation network company shall establish and enforce a zero tolerance policy for drug and alcohol use by transportation network company drivers during any period when a transportation network company driver is engaged in, or is logged into, the transportation network company's digital network, but is not engaged in a prearranged ride. The policy shall include provisions for:
(1) Investigations of alleged policy violations; and
(2) Suspensions of transportation network company drivers under investigation.
(f) A transportation network company shall require that a personal vehicle used to provide prearranged rides shall comply with all applicable laws and regulations concerning vehicle equipment.
§ -3 Financial responsibility of transportation network companies. (a) A transportation network company driver or transportation network company on the driver's behalf shall maintain primary motor vehicle insurance that recognizes that the driver is a transportation network company driver or otherwise uses a vehicle to transport riders for compensation and covers the driver:
(1) While the driver is logged on to the transportation network company's digital network; or
(2) While the driver is engaged in a prearranged ride.
(b) The following motor vehicle insurance requirements shall apply while a participating transportation network company driver is logged on to the transportation network company's digital network and is available to receive transportation requests, but is not engaged in a prearranged ride:
(1) Primary motor vehicle liability insurance in the amount of at least:
(A) $50,000 for death and bodily injury per person;
(B) $100,000 for death and bodily injury per incident; and
(C) $25,000 for property damage; and
(2) The coverage requirements of this subsection may be satisfied by any of the following:
(A) Motor vehicle insurance maintained by the transportation network company driver;
(B) Motor vehicle insurance maintained by the transportation network company; or
(C) Any combination of subparagraphs (A) and (B).
(c) The following automobile insurance requirements shall apply while a transportation network company driver is engaged in a prearranged ride:
(1) Primary motor vehicle liability insurance that provides at least $1,000,000 for death, bodily injury, and property damage;
(2) The coverage requirements of this subsection may be satisfied by any of the following:
(A) Automobile insurance maintained by the transportation network company driver;
(B) Motor vehicle insurance maintained by the transportation network company; or
(C) Any combination of subparagraphs (A) and (B).
(d) If the insurance maintained by driver under subsection (b) or (c) has lapsed or does not provide the required coverage, the transportation network company shall maintain insurance that provides the coverage required under this section, beginning with the first dollar of a claim and have the duty to defend the claim.
(e) Coverage under a motor vehicle insurance policy maintained by the transportation network company shall not be dependent upon a personal motor vehicle insurer first denying a claim nor shall a personal motor vehicle insurance policy be required to first deny a claim.
(f) Insurance required under this section may be placed with an insurer licensed by the insurance commissioner or with surplus lines insurer eligible under the insurance code that has a credit rating of no less than "A-" from A.M. Best or "A" from Demotech or a similar rating from another rating agency recognized by the insurance commissioner.
(g) Insurance satisfying the requirements of this section shall be deemed to satisfy the financial responsibility requirements for a motor vehicle under chapter 287.
(h) A transportation network company driver shall carry proof of coverage satisfying subsections (b) and (c) on the person at all times during the use of a vehicle in connection with a transportation network company's digital network. In the event of an accident, a transportation network company driver shall provide this insurance coverage information to the directly interested parties, motor vehicle insurers, and investigating police officers, upon request. Upon the request, a transportation network company driver shall also disclose to directly interested parties, motor vehicle insurers, and investigating police officers, whether the driver was logged on to the transportation network company's digital network or on a prearranged ride at the time of the accident.
§ -4 Disclosures from company to driver. The transportation network company shall disclose in writing to transportation network company drivers the following information before the drivers are allowed to accept a request for a prearranged ride on the transportation network company's digital network:
(1) The insurance coverage, including the types of coverage and the limits for each coverage, that the transportation network company provides while the transportation network company driver uses a personal vehicle in connection with a transportation network company's digital network; and
(2) That the transportation network company driver's own motor vehicle insurance policy might not provide any coverage while the driver is logged on to the transportation network company's digital network and is available to receive transportation requests or is engaged in a prearranged ride, depending upon its terms.
§ -5 Motor vehicle insurance provisions. (a) Notwithstanding chapter 431, article 10C, insurers that write motor vehicle insurance in the State may exclude any and all coverage afforded under the policy issued to an owner or operator of a personal vehicle for any loss or injury that occurs while a driver is logged on to a transportation network company's digital network or while a driver provides a prearranged ride. This right to exclude all coverage may apply to any coverage included in a motor vehicle insurance policy including:
(1) Liability coverage for bodily injury and property damage;
(2) Personal injury protection coverage;
(3) Uninsured and underinsured motorist coverage; and
(4) Collision damage coverage.
The exclusions shall apply notwithstanding any contrary requirement under chapter 287 or chapter 431, article 10C. Nothing in this section implies or requires that a personal motor vehicle insurance policy provide coverage while the driver is logged on to the transportation network company's digital network, while the driver is engaged in a prearranged ride, or while the driver otherwise uses a vehicle to transport riders for compensation.
(b) Nothing in this chapter shall be construed to require an insurer to use any specific policy language or reference to this section in order to exclude any and all coverage for any loss or injury that occurs while a driver is logged on to a transportation network company's digital network or while a driver provides a prearranged ride.
(c) Nothing in this chapter shall be deemed to preclude an insurer from providing primary or excess coverage for the transportation network company driver's vehicle, if it so chooses, by contract or endorsement.
(d) Motor vehicle insurers that exclude the coverage described in section -3 shall have no duty to defend or indemnify any claim expressly excluded thereunder. Nothing in this chapter shall be deemed to invalidate or limit an exclusion contained in a policy, including any policy in use or approved for use in this State prior to the enactment of this chapter that excludes coverage for vehicles used to carry persons or property for a charge or available for hire by the public.
(e) A motor vehicle insurer that defends or indemnifies a claim against a driver that is excluded under the terms of its policy shall have a right of contribution against other insurers that provide motor vehicle insurance to the same driver in satisfaction of the coverage requirements of section -3 at the time of loss.
(f) In a claims coverage investigation, transportation network companies shall immediately provide, upon request by directly involved parties or any insurer of the transportation network company driver if applicable, the precise times that a transportation network company driver logged on and off of the transportation network company's digital network in the twelve-hour period immediately preceding, and in the twelve-hour period immediately following, the accident. Insurers potentially providing coverage as set forth in section -3 shall disclose, upon request by any other insurer involved in the particular claim, the applicable coverages, exclusions, and limits provided under any automobile insurance maintained in order to satisfy the requirements of section -3."
SECTION 2. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.
SECTION 3. This Act shall take effect on July 1, 2016.
Report Title:
Transportation Network Companies; Permits; Insurance
Description:
Adopts the NCOIL model act to regulate transportation network companies and their drivers, by requiring companies to obtain permits to operate from the PUC, requiring companies and their drivers to meet financial responsibility requirements, and allowing motor vehicle insurers to exclude coverage for motor vehicles when in use for a transportation network company. (HB1463 HD2 Proposed)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
