AN ACT TO REGULATE TRANSPORTATION NETWORK COMPANIES. Enacted September 4, 2015. Effective October 1, 2015.
Summary date: Sep 14 2015 - View summary
Summary date: Jul 21 2015 - View summary
Senate committee substitute makes the following changes to the 2nd edition.
Amends GS 20-280.3 to add that applications for transportation network company permits (and applications for permit renewals) must also include a policy of nondiscrimination based on customers' race, color, national origin, religious belief or affiliation, sex, disability, or age.
Deletes (b) of GS 153A-134 (regulation and licensing businesses, trades, etc.), which provided that the statute did not impair the county's power to levy privilege taxes on occupations, businesses, trades, professions, and other activities under GS 153A-152 (which was repealed effective July 1, 2015).
Makes technical changes.
Summary date: Jul 1 2015 - View summary
Senate committee substitute makes the following changes to the 1st edition.
Amends the long title.
Amends proposed GS Chapter 20, Article 10A, concerning the regulation of transportation network companies (TNC), adding the terms airport operator and brokering transportation network company to the definitions section. Makes clarifying changes to the terms TNC driver and Transportation network company. Amends proposed GS 20-280.2, concerning permissible services and limitations, clarifying that TNC fees must be paid electronically through the transportation network company's application or platform. Deletes language that allowed a TNC driver to provide other transportation services if they meet the requirements to be a for-hire passenger vehicle. Amends proposed GS 20-280.3, concerning the issuance of permits, making clarifying changes and requiring additional information on the initial and renewal application that the TNC complies with a policy of nondiscrimination in regards to a customer's geographic departure point or destination. Provides that the Division of Motor Vehicles (DMV) can retain the fees collected under this statute for its operations.
Amends proposed GS 20-280.4, the financial responsibility provisions for TNCs, clarifying that TNC drivers or the company itself, must maintain automobile insurance as specified, requiring at least, while the driver is available on the TNC's application or platform, $50,000 for bodily injury or death of one person in any one accident, $100,000 for bodily injury or death of two or more persons in any one accident, and at least $25,000 for injury or destruction of property of others in any one accident. Further requires combined uninsured and underinsured motorist coverage with coverage and limits at least equal to the above coverage. Requires the following amounts when the TNC driver is engaged in TNC service, $1.5 million for bodily injury or death of others and for injury or destruction of property in any one accident with $1 million of combined uninsured and underinsured motorist coverage. Adds language which provides that the specified insurance coverage can be satisfied by insurance maintained by the TNC driver, the TNC, or some combination thereof. Adds various other requirements and expectations for insurance coverage, including requiring TNC insurance to provide coverage in the event that coverage maintained by the TNC driver has lapsed or coverage fall short. Requires the TNC driver to notify insurers and any lienholders of the intent to use the vehicle in connection with a TNC application or platform.
Amends language that requires TNCs to disclose in writing to its drivers specified insurance information, including the insurance coverage limits of liability that the TNC provides, and also state that the driver's personal automobile insurance may not provide required or optional coverage when the driver uses a vehicle in connection with a company's online application or platform, making clarifying changes and also adding the requirement that the TNC disclose specified, distinctive language regarding the requirement that TNC drivers disclose to lienholders the intent to use the vehicle for TNC service. Adds provisions providing that insurers in North Carolina can exclude coverage under the policy for losses that occur during TNC service and sets out what coverage this right to exclude applies to. Sets out understandings for automobile insurance companies of North Carolina, such as that insurers are not required to sell insurance that provides coverage specified in this section. Requires TNCs, TNC drivers, insurers, and other parties to exchange specified information in a claims coverage investigation or accident.
Amends proposed GS 20-280.5 concerning safety requirements, adding language that provides that the DMV can specify alternative vehicle inspections that meet the inspection standard required by this section. Provides that the requirements of this section do not apply to brokering transportation network companies. Requires TNCs to provide a photograph of the TNC driver after a ride request is accepted.
Also makes clarifying and organizational changes. Adds a provision requiring TNCs to confirm that TNC drivers meet background requirements of this section every five years.
Enacts new section concerning airport operators, providing that airport operators can charge TNCs and TNC drivers a reasonable fee for their use of airport facilities. Further provides that they can require an identifying decal to be displayed and can also require purchase and use of equipment for monitoring and auditing compliance of TNCs and TNC drivers.
Amends provisions concerning statewide regulation of TNCs, making clarifying changes.
Amends GS 20-4.01(27), concerning the definition of passenger vehicles, providing that vehicles that are operated in connection with a brokering transportation network company are excluded from this definition.
Amends GS 160A-304 concerning the regulation of taxis, deleting the prohibition on cities regulating TNC service in regards to (1) the setting of a minimum rate or minimum increment of time used to calculate a rate, (2) the requiring use of a particular formula or method to calculate rates charged, (3) the setting of a minimum waiting period between requesting prearranged transportation services and the provision of those services, or (4) the requiring that a final destination be set at the time of requesting prearranged transportation services.
Amends the effective date clause, providing that the act becomes effective October 1, 2015 (was, July 1, 2015).
Summary date: Mar 30 2015 - View summary
Enacts new GS Chapter 20, Article 10A, concerning the regulation of transportation network companies (TNC), setting out definitions for use in this section, including prearranged transportation services, transportation network company (TNC), TNC driver (driver), and TNC service (service). Provides that TNCs must hold a valid permit and continuously meet the the requirements of this Article to operate in North Carolina. Sets out four regulations for charging fees for use of the service, including that the TNC discloses the fee calculation method via its online application (app) prior to a ride request, the app provides an estimated fee before a ride request is completed, that the TNC sends an electronic receipt to the customer containing the specified information, and the fee must be paid electronically. Authorizes a driver to provide the service for compensation in North Carolina as well as to provide other services if the requirements are met to operate as a for-hire passenger vehicle.
Sets out provisions for obtaining the required permit to operate as a TNC in North Carolina, including paying a $5,000 nonrefundable application fee to the Department of Motor Vehicles (DMV). Requires the permit to be renewed annually for $5,000. Sets out the information that is required to apply for the above permit, including proof of the specified insurance requirements, resident agent for service of process, and proof of registration with the Secretary of State to do business in the State.
Provides financial responsibility provisions, requiring TNCs to provide liability insurance for bodily injury or death of others and for injury or destruction of property while a car is used in the service in the amount equal to or greater than $1.5 million. Requires the TNC to provide liability insurance for each vehicle utilized by the driver while the driver is available on the TNC's app subject to specific limits.
Requires the TNC to disclose in writing to its drivers specified insurance information, including the insurance coverage limits of liability that the TNC provides, and also state that the driver's personal automobile insurance may not provide required or optional coverage when the driver uses a vehicle in connection with a company's online application or platform.
Specifies safety requirements for TNCs and drivers, including a requirement that TNCs require their drivers to have their vehicles inspected annually. Also requires the TNC app to provide specified information after a ride request has been accepted by a driver, including license plate number of the driver's vehicle, a description of the driver's vehicle, and approximate location of the driver's vehicle displayed on a map. Requires a TNC to maintain records of each TNC service provided for one year from the date of the service and the record of each driver for one year from the date the driver terminated their relationship with the TNC.
Requires TNCs, before permitting an individual to act as a driver, to submit an application, including, at a minimum, the address, age, driver's license number, driving history, vehicle registration, and liability insurance information. Also requires a TNC to (1) conduct, or have a third party conduct, a local and national criminal history records check for each applicant, using specified databases and (2) obtain and review a driving record check for each applicant.
Provides seven conditions where if applicable to an applicant or his or her record, then a TNC is prohibited from approving that individual's application to be a driver, including that the applicant does not possess a valid driver's license, is a match in the National Sex Offender Registry, or is not at least 19 years old. Conditions also include various moving violations and criminal offenses.
Authorizes the DMV to issue regulations to implement GS Chapter 20, Article 10A.
Includes a rebuttable presumption that drivers are independent contractors.
Prohibits the regulation of TNCs or services by any other law, regulation, or authority in North Carolina.
Amends GS 20-4.01(27), the definition for passenger vehicles, making technical changes and adding language that provides that vehicles operated in a TNC service under GS Chapter 20, Article 10A, are considered as for-hire passenger vehicles.
Amends GS 20-87 making conforming and clarifying changes.
Amends GS 153A-134 and GS 160A-194, updating language by deleting "digital dispatching services for prearranged transportation services for hire" and replacing it with "A TNC service regulated under Article 10A of Chapter 20 of the General Statutes."
Amends GS 160A-304, Regulation of taxis, making technical changes reflecting the new provisions regulating TNCs and TNC services.
Effective July 1, 2015.