Bill Summary for S 541 (2015-2016)

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Summary date: 

Jul 1 2015

Bill Information:

View NCGA Bill Details2015-2016 Session
Senate Bill 541 (Public) Filed Thursday, March 26, 2015
AN ACT TO REGULATE TRANSPORTATION NETWORK COMPANIES.
Intro. by Rabon.

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Bill 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).