2015 - 2016 LEGISLATURE
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
1An Act to amend
194.01 (1) and 194.01 (2); and to create
340.01 (23g) (b) 4., 2
440.08 (2) (a) 69m. and subchapter IV of chapter 440 [precedes 440.40] of the 3
statutes; relating to: regulation of transportation network companies,
4providing an exemption from emergency rule procedures, granting
5rule-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
3. A TNC may not disclose a passenger's or prospective passenger's personally
identifiable information to any other person, except under certain limited
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
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:
194.01 (1) of the statutes is amended to read:
"Common motor carrier" means any person who holds himself or 3
herself out to the public as willing to undertake for hire to transport passengers or 4
property by motor vehicle upon the public highways. The transportation of 5
passengers in taxicab service or in commuter car pool or van pool vehicles that are 6
designed to carry less than 8 passengers, including the driver, or in a school bus 7
under s. 120.13 (27) or in a motor vehicle being used to provide transportation
8network services, as defined in s. 440.40 (7),
is not transportation by a common motor 9
194.01 (2) of the statutes is amended to read:
"Contract motor carrier" means any person engaged in the 12
transportation by motor vehicle over a regular or irregular route upon the public 13
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
2subject to subch. IV of ch. 440 is not transportation by a contract motor carrier.
340.01 (23g) (b) 4. of the statutes is created to read:
(b) 4. A motor vehicle being used to provide transportation 5
network services, as defined in s. 440.40 (7).
440.08 (2) (a) 69m. of the statutes is created to read:
(a) 69m. Transportation network company: March 1 of each 8
Subchapter IV of chapter 440 [precedes 440.40] of the statutes is 10
created to read:
transportation network companies
In this subchapter:
"Digital network" means any Internet site or online-enabled application, 16
software, or system that permits the prearrangement of transportation network 17
"Licensed company" means a transportation network company that is 19
licensed under s. 440.415.
"Participating driver" means an individual who does all of the following:
(a) Pays a fee to a transportation network company to be connected to a 22
passenger for the purpose of engaging in transportation network services.
(b) Uses a personal vehicle to engage in transportation network services for 24
"Passenger" means an individual who uses a transportation network 2
company's digital network to connect to a participating driver for transportation 3
network services, and, unless the context requires otherwise, includes all other 4
persons in that individual's party who accompany that individual in the 5
participating driver's personal vehicle in connection with those transportation 6
"Personal vehicle" means a motor vehicle that satisfies all of the following 8
(a) A participating driver owns, leases, or is otherwise authorized to use the 10
(b) The motor vehicle is not a taxicab, limousine, shuttle, or other for-hire 12
"Transportation network company" means a business that, for 14
compensation, uses a digital network to connect passengers to participating drivers 15
for the purpose of providing transportation network services to those passengers. 16
"Transportation network company" does not include a taxicab, limousine, shuttle, or 17
other for-hire vehicle service.