Amends Va. Code §§ 46.2-694, 46.2-711, 46.2-749.5, 46.2-753, 46.2-755, 46.2-1400, 46.2-2000, 46.2-2001.3, 46.2-2011.5, 46.2-2011.6, 46.2-2011.20, 46.2-2011.22, 46.2-2011.24, 46.2-2011.29, and 46.2-2051; and adds in Chapter 20 of Title 46.2 an article numbered 15, consisting of sections numbered 46.2-2099.45 through 46.2-2099.53
•"Transportation network company" means a person who provides prearranged rides using a digital platform that connects passengers with TNC partners.
•"TNC partner" means a person authorized by a transportation network company to use a TNC partner vehicle to provide prearranged rides on an intrastate basis in the Commonwealth.
•"TNC partner vehicle" means a personal vehicle authorized by a transportation network company and used by a TNC partner to provide prearranged rides on an intrastate basis in the Commonwealth.
This bill establishes a process for the licensing of transportation network companies (TNCs) by DMV, provided that TNCs comply with the requirements for licensure. The bill requires TNCs to screen drivers (TNC partners), ensure that all drivers are at least 21 years old and properly licensed to drive, and conduct background checks on all drivers including a national criminal background check, a driving history report, and status on the state and national sex offender registries.
The bill also requires that TNC partner vehicles be titled and registered personal vehicles; be insured; have a maximum seating capacity of no more than seven persons, excluding the driver; be registered with DMV for TNC use; and display TNC and DMV identification markers. The bill further requires that TNC drivers be covered by a specific liability insurance policy and specifies the nature and limits of the insurance coverage. The bill also imposes several other operational requirements, including requirements that the TNC provide a credential to the driver and disclose information about the TNC partner and TNC policies to passengers.
The bill authorizes DMV to conduct periodic reviews of TNCs to confirm compliance and authorizes fees to cover DMV's costs of administering the program, an initial TNC license fee of $100,000 and an annual license renewal fee of $60,000. The bill requires DMV to review the fee structure and report by December 1, 2016.
The major features of the legislation are as follows:
Licensing of TNCs
•TNCs are to be licensed by DMV, provided they meet certain minimum standards, identical to the standards that apply under current law to other types of passenger carriers that demonstrate fitness to operate and compliance with the requirements for licensure such as proof of insurance, payment of fees, appointment of agent for service of process.
•Licensing fees intended to cover DMV’s costs of administering the laws regarding TNCs include (a) an initial TNC license fee of $100,000 to be paid by the TNC, and (b) an annual fee of $60,000 for renewal of the TNC’s license. It is required that this fee structure be reviewed one year after implementation to determine if costs are fully recovered or if these fees should be adjusted to achieve that objective.
Screening of drivers
•TNCs must ensure that their drivers are at least 21 years old and are properly licensed to drive. TNCs must conduct comprehensive criminal background checks and driving record checks on every individual applying to work as a TNC driver, and at regular intervals after the individual has begun working as a TNC driver. The background checks must include checking the individual’s status in the Virginia’s Sex Offender and Crimes Against Minors Registry and the U.S. Department of Justice’s National Sex Offender Public Website.
•A criminal record of violent crime (as defined in subsection C of § 17.1-805) will bar an individual from acting as a TNC driver. Anyone required to register as a sex offender will also be barred from operating as a TNC driver.
•A driving history record that includes a record of any of the following offenses in the preceding seven years will bar the individual from operating as a TNC driver:
❖underage drinking and driving ❖DUI ❖operation of a motor vehicle after license revocation resulting from ❖repeated DUI offenses ❖any felony offense (beyond those classed as violent crimes)
•In addition, a record of any of the following within the preceding three years will bar the individual from operating as a TNC driver:
❖three or more moving violations ❖refusal to submit to a chemical test to determine the alcohol or drug content of the person’s blood or breath ❖reckless driving ❖operating a motor vehicle with a suspended or revoked license ❖escaping or eluding a law-enforcement officer
Standards for vehicles
Only personal vehicles may be used, and they must meet the following standards:
• must be validly titled and registered either in Virginia or in another jurisdiction
• must have a current Virginia state safety inspection (even if not registered in Virginia)
• must have a maximum seating capacity of no more than seven persons, excluding the driver
• must be insured by a policy providing coverage for commercial use of the vehicle
• must be registered with DMV for TNC use
• must display both (a) an identification marker issued by DMV identifying the vehicle as registered for TNC use and (b) trade dress issued by the TNC that clearly identifies the TNC with which the vehicle is associated
Insurance
TNC drivers must be covered by a motor vehicle liability insurance policy that specifically covers liabilities arising from a driver’s use of a vehicle to provide TNC services. The liability coverage must meet the following minimums:
•From the moment a TNC driver accepts a ride request until the driver completes the transaction on the TNC’s platform or until the ride is complete, whichever is later, the insurance must provide at least $1 million in primary liability coverage. The policy must also provide the same amount in uninsured motorist and under insured motorist coverage.
•For all other times when a TNC driver is logged on to the app, different insurance requirements will apply, and those requirements will change effective 1/1/2016.
•From 7/1/15 through 12/31/15, the TNC insurance must provide secondary liability coverage of at least $125,000 per person/$250,000 per incident for death and bodily injury, and at least $50,000 per incident for property damage.
In addition, if the driver’s vehicle is covered by a personal policy that doesn’t exclude coverage for TNC operations, then that policy is primary and the TNC insurance is available to provide excess coverage, up to the $125,000/$250,000/$50,000 limits.
• | From 1/1/16 on, the TNC insurance must provide primary liability coverage of at least $50,000 per person/$100,000 per incident for death and bodily injury, and at least $25,000 per incident for property damage. |
• | Although the insurance requirements may be met with a commercial insurance policy, it may also be satisfied by a personal automobile insurance policy, amendment, or endorsement covering the use of a vehicle in connection with TNC operations, or by a combination of commercial and personal insurance policies. |
Other operating requirements
The following are some of the key additional requirements for TNC operations:
• The TNC must provide a credential to each driver, which may be displayed on the TNC’s mobile app, that includes information identifying the driver, the vehicle, and the TNC with which the driver is affiliated.
• Before a passenger enters a TNC driver’s vehicle, the TNC’s app must provide the passenger with the name and a photograph of the driver who will provide transportation and with the vehicle’s license plate number.
• At the end of the trip, the customer must be given an electronic receipt that includes the date and time of the trip, the fare charged, a map of the route taken, information identifying the TNC driver and contact information by which additional support may be obtained.
• A TNC must make available immediately upon request to authorized representatives of DMV, law enforcement agencies, and airport authorities information about individual trips arranged through the TNC, including information identifying the driver, vehicle, origin and destination points of the trip, and passenger pick-up and drop-off-times.
• The TNC must disclose to passengers, via its app and website, information regarding its screening criteria for drivers, its zero-tolerance policy regarding drugs and alcohol, its method for calculating fares, its means of reporting driver misconduct, and other matters.
• The TNC must disclose to its drivers the nature and limits of its insurance coverage, the possible limits of the driver’s personal automobile insurance coverage with respect to TNC operations, and the possible concerns of lienholders regarding commercial use of a personal vehicle, among other things.
• TNCs must adopt and enforce a policy of nondiscrimination on the basis of a passenger’s points of origin and destination. TNC partners must comply with all applicable laws regarding nondiscrimination against passengers. Among other things, this means that they may not impose additional charges for providing services to persons with disabilities because of those disabilities, and that they shall comply with laws relating to accommodation of service animals. DMV may deny, suspend or revoke the operating authority or levy civil penalties against a TNC for failure to comply with the Americans with Disabilities Act or the Virginians with Disabilities Act.
• A TNC may provide service on a prearranged basis only. Street hails are prohibited.
• TNC drivers may only accept riders through the TNC’s mobile app or digital platform. A TNC driver may not otherwise arrange or accept any fares for for- hire transportation services.
• A TNC that knows a driver is engaging in off-app activity is required to remove the driver from the app for a minimum of one year.
• TNCs may not conduct any operations on the property of or into any airport, unless such operations are authorized by the airport authority involved.
• An enactment clause clarifies that current motor carriers are free under current law to offer services through an online digital platform. However, if they use personal vehicles then they are subject to the fees and rules applicable to TNCs.
Recordkeeping and reporting
•DMV will have the authority to conduct periodic reviews of TNCs to confirm compliance with the above requirements.
•TNCs must therefore keep and maintain records necessary to demonstrate such compliance, including the results of criminal history and driving record reports on TNC drivers, proof of insurance, vehicle safety inspection records, proof that a TNC partner certified the consent of vehicle owners, lessors and lessees prior to a vehicle being registered for TNC use, and any other information DMV identifies as necessary to confirm compliance.
•For purposes of compliance review, such records must be kept and retained for three years in a manner that permits systematic retrieval.
•TNCs must also maintain records that may be needed by law enforcement authorities, including ride-specific data.
•Any of the information obtained by DMV, law enforcement, or airport officials will be considered privileged information and will not be subject to disclosure except to other law enforcement authorities as needed.
The bill contains several enactment clauses:
• | DMV shall periodically consult with local government officials to determine whether TNCs have had an effect on the availability of wheelchair-accessible transportation services. If evidence suggests an effect, DMV shall work collaboratively with appropriate stakeholders to develop recommendations to be submitted to the Chairmen of the House and Senate Committees on Transportation. |
• | Beginning July 1, 2016, DMV shall review enforcement activity undertaken regarding the provisions of this act, insurance policies available to TNC partners that may require changes to the provisions of subdivisions E 1 and 2 of § 46.2-2099.49 as created by this act, the fees set forth in § 46.2-2011.5 of the Code of Virginia as amended by this act, and in § 46.2-2099.50 as created by this act to determine whether those fees adequately cover DMV’s costs of administering the additional responsibilities imposed on the Department under this act. DMV shall report the results of its review to the Chairmen of the House and Senate Committees on Transportation no later than December 1, 2016. |
• | The provisions of subsection K of § 46.2-2099.48 as created by this act, which require a digital platform to allow customers or passengers prearranging rides to indicate whether a passenger requires a wheelchair-accessible vehicle or a vehicle that is otherwise accessible to individuals with disabilities, shall become effective on July 1, 2016. |
• | The TNCs shall advise TNC partners that a TNC partner's personal automobile insurance policy may not provide collision or comprehensive coverage for damage to the vehicle when the TNC partner uses a vehicle in connection with a transportation network company's digital platform, unless such policy expressly provides for TNC insurance coverage. Such notice shall be provided to each TNC partner until January 1, 2016. |
•Notwithstanding any other provision of law, 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 motor vehicle with a seating capacity of eight or fewer persons, including the driver, while used in connection with a transportation network company's digital platform.
•The provisions of this act adding § 46.2-2099.52 shall become effective on January 1, 2016.
•No provision of this act or existing law shall be construed to prevent any motor carrier regulated under the existing provisions of Chapter 20 (§ 46.2-2000 et seq.) of Title 46.2 from offering services through an online digital platform, unless such motor carrier chooses to operate as a transportation network company. |