Bill Text: HI HB1828 | 2016 | Regular Session | Amended

---

Bill Title: Transportation Network Companies; Transportation Network Company Drivers; Motor Vehicle Insurance

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Introduced - Dead) 2016-02-19 - Report adopted. referred to the committee(s) on FIN as amended in HD 2 with Representative(s) Ing voting aye with reservations; none voting no (0) and Representative(s) Nakashima, Thielen, Tokioka excused (3). [HB1828 Detail]

Download: Hawaii-2016-HB1828-Amended.html

---

HOUSE OF REPRESENTATIVES	H.B. NO.	1828
TWENTY-EIGHTH LEGISLATURE, 2016		H.D. 2
STATE OF HAWAII

A BILL FOR AN ACT

 

 

RELATING TO TRANSPORTATION NETWORK COMPANIES.

 

 

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:

     "Transportation network company" means an entity that uses a digital network or software application service to connect passengers to transportation network company drivers; provided that the entity:

     (1)  Does not own, control, operate, or manage the vehicles used by transportation network company drivers; and

     (2)  Is not a taxicab association or a for-hire vehicle owner.

     "Transportation network company activity" means the period of time when the transportation network company driver logs onto the transportation network company's digital network or software application service until the moment the transportation network company driver logs off the digital network or software application service or until the ride is complete and the passenger exits the transportation network company driver's vehicle, whichever is later.

     "Transportation network company driver" means an individual who operates a motor vehicle to transport a passenger between points chosen by the passenger and prearranged through a transportation network company; provided that the motor vehicle is:

     (1)  Owned, leased, or otherwise authorized for use by the individual;

     (2)  Not a taxicab or for-hire vehicle; and

     (3)  Used in transportation network company activity.

     §   -2  Relation to other laws.  Neither a transportation network company nor a transportation network company driver shall be deemed to be a common carrier by motor vehicle, a contract carrier by motor vehicle, a motor carrier as defined in section 271-4, a taxicab, or a for-hire vehicle service.

     §   -3  Duration of fare.  A transportation network company fare shall be deemed to:

     (1)  Commence when a transportation network company driver accepts a request for transportation received through the transportation network company's digital network or software application service;

     (2)  Continue while the transportation network company driver transports the passenger in the transportation network company driver's vehicle; and

     (3)  Conclude when the passenger exits the transportation network company driver's vehicle.

     §   -4  Transportation network company and transportation network company driver; insurance requirements.  (a)  A transportation network company shall disclose in writing to transportation network company drivers, as part of the transportation network company's agreement with those drivers:

     (1)  The insurance coverage and limits of liability that the transportation network company provides while the transportation network company driver uses a vehicle during transportation network company activity; and

     (2)  That the transportation network company driver's personal automobile insurance policy might not provide any required or optional coverage because the transportation network company driver uses a vehicle during transportation network company activity.

     (b)  A transportation network company and any transportation network company driver shall maintain a primary motor vehicle insurance policy that shall be in effect during transportation network company activity.  The primary motor vehicle insurance policy required under this subsection shall include:

     (1)  Primary liability coverage of not less than $100,000 per person, with an aggregate limit of $200,000 per accident, for all damages arising out of accidental harm sustained as a result of any one accident and arising out of ownership, maintenance, use, loading, or unloading of a motor vehicle;

     (2)  Primary liability coverage of not less than $50,000 for all damages arising out of damage to or destruction of property including motor vehicles and including the loss of use thereof, but not including property owned by, being transported by, or in the charge of the insured, as a result of any one accident arising out of ownership, maintenance, use, loading, or unloading, of the insured vehicle;

     (3)  Uninsured and underinsured motorist coverage for the transportation network company driver and passengers in an amount that meets the requirements of section 431:10C-301;

     (4)  Personal injury protection coverage in an amount that meets the requirements of section 431:10C–103.5 and shall be equal to or greater than the coverage limits and requirements pursuant to section 431:10C-301 for the personal automobile insurance maintained by the vehicle's owner and reported to the transportation network company; and

     (5)  Collision and comprehensive coverage limits for the transportation network company driver's vehicle that shall be equal to or greater than the coverage limits and requirements pursuant to section 431:10C-301 for the personal automobile insurance maintained by the vehicle's owner and reported to the transportation network company.

     (c)  The requirements for the coverage specified in subsection (b) may be satisfied by any of the following:

     (1)  Motor vehicle insurance maintained by a transportation network company driver, but only if the transportation network company verifies that the policy is maintained by the transportation network company driver and is specifically written to cover the transportation network company driver's use of a vehicle in connection with a transportation network company's digital network or software application service;

     (2)  Motor vehicle insurance maintained by a transportation network company; or

     (3)  Any combination of paragraphs (1) and (2).

     (d)  An insurer shall submit any policy covering transportation network company activity to the insurance division for review and approval prior to the initial offer to transportation network companies or any transportation network company driver; provided that approval shall be subject to a mandatory delay period before the policy becomes effective.  An insurer providing insurance under this section shall have the duty to defend and indemnify the insured.

     (e)  Coverage under a transportation network company insurance policy shall not be dependent on a personal automobile insurance policy first denying a claim nor shall a personal automobile insurance policy, including a personal liability umbrella policy, be required to first deny a claim.

     (f)  In every instance where motor vehicle insurance maintained by a transportation network company driver to fulfill the insurance obligations of this section has lapsed or ceased to exist, the transportation network company shall provide the coverage required by this section beginning with the first dollar of a claim.

     (g)  Nothing in this section shall be construed to require a personal automobile insurance policy to provide primary or excess coverage during transportation network company activity.  During transportation network company activity, and notwithstanding any other law to the contrary, the following shall apply:

     (1)  The transportation network company driver's or the vehicle owner's personal automobile insurance policy shall not be required to provide, nor shall it provide, any coverage to any person or entity unless the policy expressly provides for that coverage during transportation network company activity, with or without a separate charge, or the policy contains an amendment or endorsement to provide coverage for transportation network company activity, for which a separately stated premium is charged; and

     (2)  The transportation network company driver's or the vehicle owner's personal automobile insurance policy shall not have the duty to defend or indemnify for the driver's activities in connection with the transportation network company, unless the policy expressly provides otherwise for transportation network company activity, with or without a separate charge, or the policy contains an amendment or endorsement to provide coverage for transportation network company activity, for which a separately stated premium is charged.

     (h)  Notwithstanding any other law to the contrary, a personal automobile insurer may, at its discretion, offer an automobile liability insurance policy, or an amendment or endorsement to an existing policy that covers a private passenger vehicle, station wagon type vehicle, sport utility vehicle, or similar type of vehicle with a passenger capacity of eight persons or less, including the driver, while used in connection with transportation network company activity if the policy expressly provides for the coverage of transportation network company activity, with or without a separate charge, or the policy contains an amendment or an endorsement to provide coverage for transportation network company activity, for which a separately stated premium may be charged.

     (i)  In a claims coverage investigation, a transportation network company or its insurer shall cooperate with insurers that are involved in the claims coverage investigation to facilitate the exchange of information, including the provision of dates and times at which an accident occurred that involved a transportation network company driver and the precise times that the transportation network company driver logged on and off the transportation network company's digital network or software application service.

     (j)  A transportation network company driver shall carry proof of insurance coverage as required by this section within the vehicle at all times when the vehicle is being used in transportation network company activity.  In the event of an accident, a transportation network company driver shall provide this insurance coverage information to any other party involved in the accident and to a police officer, upon request.

     (k)  Notwithstanding any other law affecting whether one or more policies of insurance that may apply with respect to an occurrence is primary or excess, this section shall determine the obligations under insurance policies issued to transportation network companies and, if applicable, transportation network company drivers using a vehicle in connection with transportation network company activity.

     §   -5  Records.  (a)  A transportation network company shall maintain:

     (1)  Global positioning system records and electronic records of transportation network company activity for each individual trip provided by a transportation network company driver for at least five years from the date each trip was provided; and

     (2)  Transportation network company driver records at least until the five year anniversary of the date on which a transportation network company driver's activation on the transportation network company digital network or software application service has ended.

     (b)  Records maintained under this section shall be made readily available for purposes of a claims coverage investigation pursuant to section    -4(i) or resolving any other dispute related to transportation network company activity no later than ten days after receipt of a written request for such record."

     SECTION 2.  Section 271-5, Hawaii Revised Statutes, is amended to read as follows:

     "§271-5  Exemptions, generally.  Notwithstanding any other provisions of this chapter, its contents shall not apply to:

     (1)  Persons transporting their own property where the transportation is in furtherance of a primary business purpose or enterprise of that person, except where the transportation is undertaken by a motor carrier to evade the regulatory purposes of this chapter;

     (2)  Persons operating motor vehicles when engaged in the transportation of school children and teachers to and from school, and to and from school functions; provided that these persons may engage in providing transportation at special rates for groups of persons belonging to an eleemosynary or benevolent organization or association domiciled in this State where the organization or association sponsors or is conducting a nonregular excursion; provided that whenever the persons engage in the transportation of persons other than those exempted in this paragraph, that portion of their operation shall not be exempt from this chapter.  Nothing in this paragraph shall be construed to authorize any person to engage in the transportation of persons, other than the transportation of persons exempted by the terms of this paragraph, without a permit or certificate issued by the commission authorizing such transportation;

     (3)  Persons operating taxicabs or other motor vehicles utilized in performing a bona fide taxicab service.  "Taxicab" includes:

         (A)  Any motor vehicle used in the movement of passengers on the public highways under the following circumstances, namely the passenger hires the vehicle on call or at a fixed stand, with or without baggage for transportation, and controls the vehicle to the passenger's destination;

         (B)  Any motor vehicle for hire having seating accommodations for eight or fewer passengers used in the movement of passengers on the public highways that may, as part of a continuous trip, pick up or discharge passengers from various unrelated locations; provided that they shall be regulated by the counties in accordance with section 46-16.5(c); and provided further that this subparagraph shall not apply to any exclusive rights granted by the department of transportation for taxicab services at facilities under the department's control; and

         (C)  Any motor vehicle having seating accommodations for eight or fewer passengers used in the movement of passengers on the public highways between a terminal, i.e., a fixed stand, in the Honolulu district, as defined in section 4-1 and a terminal in a geographical district outside the limits of the Honolulu district, and vice versa, without picking up passengers other than at the terminals or fixed stands; provided that the passengers may be picked up by telephone call from their homes in the rural area or may be unloaded at any point between the fixed stands or may be delivered to their homes in the rural area;

     (4)  Persons operating motor vehicles in the transportation of persons pursuant to a franchise from the legislature and whose operations are presently regulated under chapter 269;

     (5)  Nonprofit agricultural cooperative associations to the extent that they engage in the transportation of their own property or the property of their members;

     (6)  Persons operating motor vehicles specially constructed for the towing of disabled or wrecked vehicles but not otherwise used in the transportation of property for compensation or hire;

     (7)  Persons operating motor vehicles in the transportation of mail, newspapers, periodicals, magazines, messages, documents, letters, or blueprints;

     (8)  Persons operating funeral cars or ambulances;

     (9)  Persons operating motor vehicles in the transportation of garbage or refuse;

    (10)  Persons operating the type of passenger carrying motor vehicles known as "sampan buses" within the radius of twenty miles from the city of Hilo, Hawaii;

    (11)  Persons transporting unprocessed pineapple to a cannery, seed corn to a processing facility, or  returning any containers used in such transportation to the fields;

    (12)  Sugar plantations transporting sugarcane, raw sugar, molasses, sugar by-products, and farming supplies for neighboring farmers pursuant to contracts administered by the United States Department of Agriculture;

    (13)  Persons engaged in the ranching or meat or feed business who transport cattle to slaughterhouses for hire where such transportation is their sole transportation for hire and where their earnings from the transportation constitute less than fifty per cent of their gross income from their business and the transportation for hire;

    (14)  Persons transporting unprocessed raw milk to processing plants and returning any containers used in such transportation to dairy farms for reloading;

    (15)  Persons transporting animal feeds to animal husbandry farmers and farming supplies directly to animal husbandry farmers and returning any containers used in such transportation to these sources of such feeds and supplies for reloading;

    (16)  Persons engaged in transporting not more than fifteen passengers between their places of abode, or termini near such places, and their places of employment in a single daily round trip where the driver is also on the driver's way to or from the driver's place of employment;

    (17)  Persons transporting passengers without charge in motor vehicles owned or operated by such person, where such transportation is provided in conjunction with and in furtherance of a related primary business purpose or enterprise of that person, and such transportation is provided only directly to and from the place of business of such person, except that this exemption shall not apply to persons making any contract, agreement, or arrangement to provide, procure, furnish, or arrange for transportation as a travel agent or broker or a person engaged in tour or sightseeing activities, nor shall this exemption apply where the transportation is undertaken by a person to evade the regulatory purposes of this chapter; [and]

    (18)  Persons conducting the type of county-regulated passenger carrying operation known as "jitney services".  For the purposes of this paragraph, "jitney services" means public transportation services utilizing motor vehicles that have seating accommodations for six to twenty-five passengers, operate along specific routes during defined service hours, and levy a flat fare schedule[.]; and

    (19)  Transportation network companies; provided that, for the purposes of this paragraph, "transportation network company" means the same as defined in section    -1."

     SECTION 3.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect on July 1, 2112.

 

Report Title:

Transportation Network Companies; Transportation Network Company Drivers; Motor Vehicle Insurance

 

Description:

Establishes motor vehicle insurance requirements for transportation network companies and persons who operate or serve as drivers for transportation network companies.  Exempts transportation network companies from oversight under the motor carrier law.  (HB1828 HD2)

 

 

 

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.