SB106: Bill Text

CORRECTED COPY

LRB-2098/2

MPG&PJK:kjf:kf

2015 - 2016 LEGISLATURE

2015 Senate BILL 106

March 31, 2015 - Introduced by Senators Farrow, Lassa, Lasee, Gudex, Marklein, Nass, Vukmir and Wanggaard, cosponsored by Representatives August, Mason, Petersen, Barnes, Bowen, Brandtjen, Brostoff, Craig, Czaja, Danou, Doyle, Edming, Genrich, Jagler, Kleefisch, Knudson, Kuglitsch, Kulp, Macco, Nygren, Riemer, Ripp, Rohrkaste, Schraa, Spiros, Steffen, Swearingen, Tauchen, Thiesfeldt, Tranel, Vorpagel, Wachs, Weatherston and Zamarripa. Referred to Committee on Education Reform and Government Operations.

SB106,1,5 An Act to amend 194.01 (1) and 194.01 (2); and to create 340.01 (23g) (b) 4., 440.08 (2) (a) 69m. and subchapter IV of chapter 440 [precedes 440.40] of the statutes; relating to: regulation of transportation network companies, providing an exemption from emergency rule procedures, granting rule-making authority, and providing a penalty.

Analysis by the Legislative Reference Bureau

This bill creates a licensure program for transportation network companies to be administered by the Department of Safety and Professional Services (DSPS). Under the bill, a "transportation network company" (TNC) is a business that, for compensation, uses a digital network to connect individuals seeking transportation via the digital network (passengers) to drivers who are logged on to the digital network and receive compensation for providing that transportation (participating drivers). The bill specifies that a TNC is not a taxicab, limousine, shuttle, or other for-hire vehicle service. The participating driver pays a fee to the TNC in order to participate in the TNC's digital network.

Under the bill, a TNC may only operate in Wisconsin if it is licensed by DSPS, and a participating driver may only provide transportation network services (TNC services) through a licensed TNC. There is no licensure requirement for a participating driver under the bill.

The bill requires DSPS to grant a license to an applicant for licensure as a TNC if certain application requirements are satisfied, including that the TNC pays an initial licensure fee of $5,000. The biennial renewal fee is also $5,000.

The bill exempts TNCs and participating drivers and their vehicles used to provide TNC services from certain requirements applicable under current law to common motor carrier and other for-hire vehicles. The bill also prohibits a city, village, town, or county from enacting or enforcing an ordinance or adopting or enforcing a resolution that regulates TNCs or their participating drivers and vehicles used to provide TNC services. Under current law, a city, town, or village is authorized to regulate and license taxicab businesses, taxicabs, and chauffeurs. That authorization does not apply to TNCs or their participating drivers and vehicles under the bill.

The bill includes a number of requirements applicable to a licensed TNC and its participating drivers, including all of the following:

1. A TNC must disclose its fare calculation method and other fare information on its Internet site and to prospective passengers, must provide certain identifying information about the participating driver to a prospective passenger before the prospective passenger receives TNC services, and must transmit an electronic receipt that contains specific information to a passenger within a reasonable time after TNC service have been provided.

2. A participating driver may not solicit or accept street hails or otherwise provide rides for compensation that are not prearranged through a TNC, and all payments for TNC services must be made electronically using the TNC's digital network.

3. A TNC may not disclose a passenger's or prospective passenger's personally identifiable information to any other person, except under certain limited circumstances.

4. A participating driver, or a TNC on the driver's behalf, is subject to certain insurance requirements; a TNC is required to make certain disclosures to its participating drivers about insurance; and automobile insurers are permitted to exclude coverage for TNC services.

5. In addition to other nondiscrimination and accessibility requirements, a TNC must have in place a policy of nondiscrimination on the basis of destination, race, color, national origin, religious belief or affiliation, sex, disability, age, sexual orientation, or gender identity with respect to passengers and prospective passengers.

6. A TNC must have in place a "zero tolerance" policy prohibiting participating drivers from using alcohol, or any other intoxicant that may render the participating driver incapable of safely driving, while the participating driver is engaged in TNC services or is logged on to the TNC's digital network.

7. Before a TNC allows an individual to be a participating driver, the TNC must require the individual to submit a driver application that includes, among other things, the individual's driving history and proof of registration and a copy of the automobile liability insurance policy for each motor vehicle the individual will use to provide TNC services; conduct, or have a third party conduct a criminal background check for the individual; and obtain and review a driving history research report for the individual.

8. A TNC is prohibited from allowing certain individuals to be participating drivers for the TNC, including an individual who has been convicted of certain moving violations within the previous three years, who has been convicted of certain crimes within the previous seven years, or whose information appears on the state or national sex offender registry.

9. A TNC is required to maintain all records concerning a participating driver for at least one year after the participating driver ceases to engage in TNC services for the TNC, and a TNC must maintain passenger trip records for at least one year after the trip.

The bill authorizes DSPS to conduct investigations and hold hearings to determine whether a violation of the bill's provisions, a related rule promulgated by DSPS, or any other law that substantially relates to the operation of a TNC or to TNC services has occurred. The bill further authorizes DSPS to discipline a licensed TNC, and any person who violates the bill's provisions or a related rule promulgated by DSPS may be subject to a fine not to exceed $1,000.

For further information see the state and local fiscal estimate, which will be printed as an appendix to this bill.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

SB106,1 Section 1. 194.01 (1) of the statutes is amended to read:

SB106,3,9 194.01 (1) "Common motor carrier" means any person who holds himself or herself out to the public as willing to undertake for hire to transport passengers or property by motor vehicle upon the public highways. The transportation of passengers in taxicab service or in commuter car pool or van pool vehicles that are designed to carry less than 8 passengers, including the driver, or in a school bus under s. 120.13 (27) or in a motor vehicle being used to provide transportation network services, as defined in s. 440.40 (7), is not transportation by a common motor carrier.

SB106,2 Section 2. 194.01 (2) of the statutes is amended to read:

SB106,4,2 194.01 (2) "Contract motor carrier" means any person engaged in the transportation by motor vehicle over a regular or irregular route upon the public highways of property for hire, including the transportation of buildings, as defined in s. 348.27 (12m) (a) 1. The transportation of property in a motor vehicle being used subject to subch. IV of ch. 440 is not transportation by a contract motor carrier.

SB106,3 Section 3. 340.01 (23g) (b) 4. of the statutes is created to read:

SB106,4,5 340.01 (23g) (b) 4. A motor vehicle being used to provide transportation network services, as defined in s. 440.40 (7).

SB106,4 Section 4. 440.08 (2) (a) 69m. of the statutes is created to read:

SB106,4,8 440.08 (2) (a) 69m. Transportation network company: March 1 of each odd-numbered year.

SB106,5 Section 5. Subchapter IV of chapter 440 [precedes 440.40] of the statutes is created to read:

SB106,4,11 CHAPTER 440

SB106,4,12 SUBCHAPTER IV

SB106,4,13 transportation network companies

SB106,4,14 440.40 Definitions. In this subchapter:

SB106,4,17 (1) "Digital network" means any Internet site or online-enabled application, software, or system that permits the prearrangement of transportation network services.

SB106,4,19 (2) "Licensed company" means a transportation network company that is licensed under s. 440.415.

SB106,4,20 (3) "Participating driver" means an individual who does all of the following:

SB106,4,22 (a) Pays a fee to a transportation network company to be connected to a passenger for the purpose of engaging in transportation network services.

SB106,4,24 (b) Uses a personal vehicle to engage in transportation network services for compensation.

SB106,5,6 (4) "Passenger" means an individual who uses a transportation network company's digital network to connect to a participating driver for transportation network services, and, unless the context requires otherwise, includes all other persons in that individual's party who accompany that individual in the participating driver's personal vehicle in connection with those transportation network services.

SB106,5,8 (5) "Personal vehicle" means a motor vehicle that satisfies all of the following conditions:

SB106,5,10 (a) A participating driver owns, leases, or is otherwise authorized to use the motor vehicle.

SB106,5,12 (b) The motor vehicle is not a taxicab, limousine, shuttle, or other for-hire vehicle.

SB106,5,17 (6) "Transportation network company" means a business that, for compensation, uses a digital network to connect passengers to participating drivers for the purpose of providing transportation network services to those passengers. "Transportation network company" does not include a taxicab, limousine, shuttle, or other for-hire vehicle service.