BillCam

HOUSE OF REPRESENTATIVES

H.B. NO.

2002

THIRTIETH LEGISLATURE, 2020

H.D. 1

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 legislature finds that statewide regulation of transportation network companies is needed to ensure the safety, reliability, and cost-effectiveness of rides provided by transportation network company drivers as well as to preserve and enhance access to important transportation options for residents and visitors of the State.

Accordingly, the purpose of this Act is to provide statewide regulation of transportation network companies to provide operational consistency across the State and to establish a permitting process within the department of transportation.

SECTION 2. The Hawaii Revised Statutes is amended by adding a new chapter to title 15 to be appropriately designated and to read as follows:

"Chapter

TRANSPORTATION NETWORK COMPANIES

§ -1 Definitions. As used in this chapter:

"Department" means the department of transportation.

"Digital network" means any online-enabled technology application service, website, or system offered or utilized by a transportation network company that enables the prearrangement of rides with transportation network company drivers.

"Director" means the director of transportation.

"Prearranged ride" has the same meaning as in section 431: 10C-701.

"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 control, direct, or manage the transportation network company vehicles or transportation network company drivers that connect to its digital network, except where agreed to by written contract; and

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

"Transportation network company driver" has the same meaning as in section 431:10C-701.

"Transportation network company rider" or "rider" means an individual or person who uses a transportation network company's digital network to connect with a transportation network company driver who provides prearranged rides to the rider in a transportation network company vehicle between destination points chosen by the rider.

"Transportation network company vehicle" means a 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 operating as a taxicab, limousine, or other for-hire vehicle.

§ -2 Director of transportation; authority. The director shall have full authority to:

(1) Enforce this chapter and any rules relating to transportation network companies and transportation network drivers;

(2) Investigate the actions of any person or organization acting in the capacity of a transportation network company driver; and

(3) Inspect the records of a transportation network company to verify that the company complies with the requirements of this chapter.

§ -3 Relation to other laws; commercial vehicle; for hire vehicle; registration; exemption. Solely for the purposes of this chapter, 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. No transportation network company driver shall be required to register a transportation network company vehicle as a commercial or for-hire vehicle.

§ -4 Transportation network company; permit; required. (a) No person shall operate a transportation network company in the State without first having obtained a permit from the director, the application for which shall be in a form and content to be determined by the director; provided that any transportation network company operating in the State before the effective date of this chapter may continue operating until the director has established a permitting process and sets a registration deadline.

(b) The director shall issue a permit to each applicant that satisfies the requirements for a transportation network company as set forth by the director and shall collect an annual permit fee of $ from the applicant prior to the issuance of a permit.

§ -5 Fare transparency. (a) If a fare is collected from a rider, the transportation network company shall disclose the fare or fare calculation method to the rider on its website or within the online-enabled technology application service before the beginning of the prearranged ride. If the fare is not disclosed to the rider before the beginning of the prearranged ride, the rider shall have the option to receive an estimated fare before the beginning of the prearranged ride.

(b) The director shall have full authority to implement this section.

§ -6 Agent for service. Any transportation network company that operates in the State shall maintain an agent for service of process in the State.

§ -7 Transportation network company vehicles; certification. (a) No vehicle may be used by a transportation network company unless the company has certified, for each vehicle:

(1) The vehicle identification number;

(2) The registered owner's full legal name;

(3) Proof of registration for the motor vehicle in the name of the driver;

(4) The license plate number and expiration date;

(5) Proof of current vehicle safety inspection and date of the annual inspection for the motor vehicle; and

(6) Proof of insurance.

(b) A company shall ensure that the driver has renewed the vehicle's annual registration and passed the annual safety inspection. The company shall suspend a driver's access to its digital network or software application service upon discovery of a driver's failure to renew the vehicle's annual registration or vehicle safety inspection. Access to its digital network or software application service may be restored upon the driver's submission of documents confirming the renewal of the vehicle's annual registration and passing the annual safety inspection.

(c) No vehicle may be recertified unless all outstanding penalties assessed against the driver operating the vehicle being recertified are paid in full to the director.

(d) A transportation network company shall suspend the private transportation driver's access to its digital network or dispatch system upon discovery of a private transportation driver's failure to timely renew the annual registration or pass the annual motor vehicle safety inspection.

(e) The director shall have full authority to implement this section.

§ -8 Identification of transportation network company vehicles and drivers. During a prearranged ride, a transportation network company's digital network shall display a picture of the transportation network company driver and the license plate number of the transportation network company vehicle.

§ -9 Electronic receipt. Following the completion of a trip, the transportation network company shall transmit an electronic receipt on behalf of the transportation network company driver that shall include the following information:

(1) The origin and destination or destinations of the trip;

(2) The total time and distance of the trip; and

(3) The total fare paid.

§ -10 Disclosure; limitations; insurance requirements. The requirements of section 431:10C-703 shall apply to transportation network companies and transportation network company drivers.

§ -11 Transportation network company driver requirements. (a) Prior to allowing an individual to act as a transportation network company driver and accept a request for a prearranged ride through a transportation network company's digital network:

(1) The individual shall submit an application to the transportation network company and shall include the following information:

(A) The individual's address;

(B) The individual's age;

(D) A copy of the applicable motor vehicle registration;

(E) A copy of the applicable motor vehicle insurance; and

(F) Other information deemed necessary by the transportation network company;

(2) The transportation network company shall each year conduct, or have a third-party commercial background check company conduct, national and local criminal background checks for each applicant and for each driver. The criminal background check shall include a review of:

(A) A multi-state and multi-jurisdictional criminal records locator or other similar commercial nationwide database with validation (primary source search); and

(B) The United States Department of Justice national sex offender public website; and

(3) The transportation network company shall obtain and review, or have a third-party entity obtain and review, a driving history research report for the individual.

(b) The transportation network company shall not permit an individual to act as a transportation network company driver on its digital network who:

(1) Has more than three moving violations within the prior three years, or one of the following major violations in the past three years:

(A) Attempting to evade police;

(B) Reckless driving; or

(2) Within the past seven years has been:

(A) Convicted of any felony; or

(B) Convicted of any misdemeanor relating to driving, violent, or sexual offenses;

(3) Is registered on the United States Department of Justice national sex offender public website or any publicly accessible state sex offender registry;

(4) Does not possess a valid driver's license;

(5) Does not possess proof of a current and valid registration for the motor vehicle or vehicles used to provide prearranged rides;

(6) Does not possess proof of valid motor vehicle insurance for the transportation network company vehicle; or

(7) Is not at least nineteen years of age.

(c) A transportation network company driver shall be considered an independent contractor, and not an employee of a transportation network company, if all of the following conditions are met:

(1) The transportation network company does not prescribe the specific hours during which the transportation network company driver is required to be logged in to the transportation network company's digital network;

(2) The transportation network company does not impose any restrictions upon the transportation network company driver's ability to use other transportation network companies' digital networks;

(3) The transportation network company does not restrict a transportation network company driver from engaging in any other occupation or business; and

(4) The transportation network company and the transportation network company driver agree in writing that the transportation network company driver is an independent contractor.

(d) A transportation network company shall not control, direct, or manage the transportation network company vehicles or transportation network company drivers that connect to its digital network, unless a written contract expressly provides otherwise.

§ -12 Unlawful operation; revocation or suspension of registration; suits by persons injured. (a) The director may revoke or suspend the registration of a transportation network company upon determining that the company has:

(1) Engaged in unfair or deceptive business practices prohibited by section 480-2;

(2) Engaged in any dishonest, fraudulent, or deceitful act;

(3) Misrepresented any material fact in obtaining registration; or

(4) Violated any of the provisions of this chapter.

(b) Any person who is injured by any unfair or deceptive act or practice prohibited by section 480-2 or by any provision of this chapter may bring proceedings to enjoin the unlawful practices and shall be awarded reasonable attorney's fees together with the costs of suit.

§ -13 Non-discrimination; accessibility. (a) The transportation network company shall adopt a policy of non-discrimination on the basis of destination, race, color, national origin, religious belief or affiliation, sex, disability, age, sexual orientation, or gender identity with respect to riders and potential riders and shall notify the transportation network company drivers of the policy.

(b) In addition to any policy established pursuant to subsection (a), transportation network company drivers shall comply with all applicable laws regarding nondiscrimination against riders or potential riders on the basis of destination, race, color, national origin, religious belief or affiliation, sex, disability, age, sexual orientation, or gender identity.

For purposes of this subsection, "service animal" has the same meaning as in section 347-2.5.

(d) A transportation network company shall not impose additional charges for providing services to persons with physical disabilities.

§ -14 Audit procedures; confidentiality of records. (a) Not more than annually, the department may visually inspect a sample of records maintained by a transportation network company for the sole purpose of verifying that a transportation network company complies with this chapter. The sample shall be chosen randomly by the department in a manner agreeable to both parties. The audit shall take place at a mutually agreed location in the State. Any record furnished to the department shall exclude information that would tend to identify specific transportation network company drivers or riders.

(b) In response to a specific complaint against any transportation network company driver or transportation network company, the department may inspect records held by the transportation network company that are necessary to investigate and resolve the complaint. The department and transportation network company shall conduct the inspection at a mutually agreed upon location in the State. Any record furnished to the department shall exclude information that would tend to identify specific transportation network company drivers or riders, unless the identity of a transportation network company driver or rider is relevant to the complaint.

(c) Any records inspected by the department under this section shall be confidential, are not subject to disclosure to a third party by the department without the prior written consent of the transportation network company, and shall be exempt from disclosure under chapter 92F. Nothing in this section shall be construed as limiting the applicability of any other exemptions under chapter 92F.

§ -15 Complaints; investigation and examination. (a) Any person having reason to believe that this chapter or the rules adopted pursuant thereto have been violated, or that the registration of a transportation network company under this chapter should be suspended or revoked, may file a written complaint with the director setting forth the details of the alleged violation or the grounds for suspension or revocation.

(b) The director shall have full authority to conduct investigations, examinations, and hearings of any violations or complaints arising from the operations of transportation network companies or a specific complaint against a transportation network company driver. The director may:

(1) Direct, subpoena, or order the attendance of, and examine under oath, all persons whose testimony may be required about the operations of a transportation network company or complaint against a driver;

(2) Direct, subpoena, or order the production of books, accounts, files, and other documents the director deems relevant to the inquiry;

(3) Interview the officers, directors, employees, drivers, independent contractors, agents, and customers of the company subject to this chapter; and

(4) Hold hearings.

(1) Retain attorneys, accountants, or other professionals and specialists, who may be exempt from chapter 76, as examiners, auditors, or investigators to conduct or assist in the conduct of examinations or investigations; and

(2) Use, hire, contract, or employ publicly or privately available analytical systems, methods, or software to examine or investigate the company or person subject to this chapter.

(d) The director shall have full authority to charge an examination or investigation fee, as established by rule, based upon the cost per hour per examiner for all transportation network companies and persons subject to this chapter who are examined or investigated by the director.

(e) Unless otherwise provided by chapter 92F, the government records of any investigation or examination arising from a complaint of a violation of this chapter shall be made public only after a hearing.

§ -16 Uniform statewide regulation. (a) This chapter shall apply uniformly throughout the State and in all political subdivisions of the State.

(b) This chapter shall supersede any ordinance or other rule adopted by a political subdivision that specifically governs transportation network companies, transportation network company drivers, or transportation network company vehicles, including those adopted before the effective date of this chapter."

SECTION 3. Act 236, Session Laws of Hawaii 2016, is amended by amending section 6 to read as follows:

"SECTION 6. This Act shall take effect upon its approval; provided that section 2 of this Act shall take effect on September 1, 2016[; provided further that this Act shall be repealed on September 1, 2021]."

SECTION 4. Statutory material to be repealed is bracketed and stricken.

SECTION 5. This Act shall take effect on July 1, 2050.

Report Title:

Transportation Network Companies; Regulation; Permitting

Description:

Establishes requirements and permitting procedures for transportation network companies operating in the State. Makes permanent insurance requirements for transportation network companies and transportation network drivers. Effective 7/1/2050. (HD1)

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