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ANALYSIS
Statutes interpreted:
Subchapter IV, Chapter 440, Stats. Statutory authority:
Explanation of agency authority:
Section 227.11 (2) (a), Stats., sets forth the parameters of an agency’s rule-making authority, stating an agency, “may promulgate rules interpreting provisions of any statute enforced or administered by the agency. . .but a rule is not valid if the rule exceeds the bounds of correct interpretation.” Section 227.11 (2) (b), Stats., sets forth the parameters of an agency’s rule-making authority, stating an agency, “may prescribe forms and procedures in connection with any statute enforced or administered by it, if the agency considers it necessary to effectuate the purpose of the statute, but this paragraph does not authorize the imposition of a substantive requirement in connection with a form or procedure.” Section 440.415 (1) (a), Stats., requires transportation network company applicants to submit an initial application that includes, “any other information required by the department by rule.” Section 440.415 (2) (a), Stats., requires licensed transportation network company to submit a renewal application that includes, “any other information required by the department by rule.” Related statute or rule:
None.
Plain language analysis:
Pursuant to the enactment of 2015 Wisconsin Act 16, the Department of Safety and Professional Services is authorized to execute and enforce a statewide uniform licensure program for transportation network companies. Currently, the Wisconsin Administrative Code does not address transportation network companies. The proposed rule will implement and delineate the requirements enacted under 2015 Wisconsin Act 16 for the regulation of transportation network companies. Summary of, and comparison with, existing or proposed federal regulation:
To comply with the assurances under 49 USC 47107 a city, village, town or county may impose fees or charges under s. 114.14 (1), Stats., for the use of an airport by participating drivers engaged in transportation network services. Comparison with rules in adjacent states:
Illinois: Illinois Statutes contain many similar requirements for transportation network companies as those created by 2015 Wisconsin Act 16 in the Wisconsin Statutes; however, individual municipalities are responsible for licensing transportation network companies. (625 Illinois Compiled Statutes 57). There are no effective rules regarding transportation network companies in Illinois. Iowa: The state of Iowa does not regulate transportation network companies.
Michigan: The state of Michigan does not regulate transportation network companies.
Minnesota: A transportation network company driver or transportation network company on the driver's behalf shall maintain primary automobile insurance that recognizes that the driver is a transportation network company driver. The transportation network company shall disclose in writing to transportation network company drivers the following before they are allowed to accept a request for a prearranged ride on the transportation network company's digital network: (1) the insurance coverage, including the types of coverage and the limits for each coverage, that the transportation network company provides while the transportation network company driver uses a personal vehicle in connection with a transportation network company's digital network; (2) that the transportation network company driver's own automobile insurance policy might not provide any coverage while the driver is logged on to the transportation network company's digital network and is available to receive transportation requests or is engaged in a prearranged ride depending on its terms; and (3) that using a vehicle with a lien against the vehicle to provide transportation network services may violate the transportation network driver's contract with the lienholder [65B.472, MN Statutes]. Other specific requirements for insurance are spelled out in MN Statute. There are no effective rules regarding transportation network companies in Minnesota.
Summary of factual data and analytical methodologies:
The methodology used for developing the proposed rule included incorporating the administrative code changes necessitated by the enactment of 2015 Wisconsin Act, reviewing all laws applicable to credentials issued by the Department, and evaluating and incorporating valuable input from stakeholders. Adjacent states’ requirements were also reviewed.
Analysis and supporting documents used to determine effect on small business or in preparation of economic impact analysis:
The rule will be posted for a period of 14 days for public comment on the economic impact of the proposed rule, including how this proposed rule may affect businesses, local government units, and individuals.
Fiscal Estimate:
The proposed rule will have an estimated one time fiscal impact $4,800 on the Department.
Effect on small business:
These proposed rules do not have an economic impact on small businesses, as defined in s. 227.114 (1), Stats. The Department’s Regulatory Review Coordinator may be contacted by email at Eric.Esser@wisconsin.gov, or by calling (608) 267-2435. Agency contact person:
Katie Vieira (Paff), Administrative Rules Coordinator, Department of Safety and Professional Services, Division of Policy Development, 1400 East Washington Avenue, Room 151, P.O. Box 8935, Madison, Wisconsin 53708; telephone (608) 261-4472; email at Kathleen.Paff@wisconsin.gov. ------------------------------------------------------------------------------------------------------------
TEXT OF RULE
Section 1. Chapter SPS 210 is created to read: TRANSPORTATION NETWORK COMPANIES
SPS 210.20 Definitions. In this chapter:
(1)
“Department” means the department of safety and professional services.(2) “Licensed company” has the meaning given in s. 440.40 (2), Stats. Note: Section 440.40 (2) of the Statutes reads as follows: “‘Licensed company’ means a transportation network company that is licensed under s. 440.415., [Stats.]” (3) “Participating Driver” has the meaning given in s. 440.40 (3), Stats. Note: Section 440.40 (3) of the Statutes reads as follows: “‘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 passenger for the purpose of engaging in transportation network services. (b) Uses a personal vehicle to engage in transportation network services for compensation.” (4) “Transportation network company” has the meaning given in s. 440.40 (6), Stats. Note: Section 440.40 (6) of the Statutes reads as follows: “‘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.”
