Bill Summary for H 680 (2015-2016)

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Summary date: 

Apr 13 2015

Bill Information:

View NCGA Bill Details2015-2016 Session
House Bill 680 (Public) Filed Monday, April 13, 2015
Intro. by W. Brawley, Saine, Hanes.

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Bill summary

Identical to S 541 filed on 3/26/15.

Enacts new GS Chapter 20, Article 10A, concerning the regulation of transportation network companies (TNC), setting out definitions for use in this section, includingprearranged transportation services, transportation network company (TNC),TNC driver (driver), andTNC 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.