Regulate Ride-Hailing Services

Section 1. Legislative intent. The purpose of this act is to expand access to important and enhanced transportation options for residents and visitors throughout the State, while ensuring the safety, reliability, and cost-effectiveness of those services within the State of New York.

§ 2. The vehicle and traffic law is amended by adding a new article 44-B to read as follows:

ARTICLE 44-B

TRANSPORTATION NETWORK COMPANY SERVICES Section 1691. Definitions.

1692. General provisions.

1693. Financial responsibility of transportation network compa-

nies.

1694. Disclosures.

1695. Insurance provisions.

1696. Driver and vehicle requirements.

1697. Maintenance of records.

1698. Audit procedures; confidentiality of records; data access.

1699. Criminal history background check of transportation

network company drivers.

EXPLANATION--Matter in italics (underscored) is new; matter in brackets

[ ] is old law to be omitted.

LBD10657-01-7

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1700. Controlling authority.

§ 1691. Definitions. As used in this article: 1. "Transportation network company vehicle" or "TNC vehicle" means a vehicle that is:

(a) used by a transportation network company driver to provide a TNC prearranged trip originating in the state of New York; and

(b) owned, leased or otherwise authorized for use by the transportation network company driver.

(c) such term shall not include:

(i) a taxicab, as defined in section one hundred forty-eight-a of this chapter and section 19-502 of the administrative code of the city of New York, or as otherwise defined in local law;

(ii) a livery vehicle, as defined in section one hundred twenty-one-e of this chapter, or as otherwise defined in local law;

(iii) a black car, limousine, or luxury limousine, as defined in section 19-502 of the administrative code of the city of New York, or as otherwise defined in local law;

(iv) a for-hire vehicle, as defined in section 19-502 of the administrative code of the city of New York, or as otherwise defined in local law;

(v) a bus, as defined in section one hundred four of this chapter;

(vi) any motor vehicle weighing more than six thousand five hundred pounds unloaded;

(vii) any motor vehicle having a seating capacity of more than seven passengers; and

(viii) any motor vehicle subject to section three hundred seventy of this chapter.

2. "Digital network" means any system or service offered or utilized by a transportation network company that enables TNC prearranged trips with transportation network company drivers.

3. "Transportation network company" or "TNC" means a person, corporation, partnership, sole proprietorship, or other entity that is licensed pursuant to this article and is operating in New York state exclusively using a digital network to connect transportation network company passengers to transportation network company drivers who provide TNC prearranged trips.

4. "Transportation network company driver" or "TNC driver" means an individual who receives connections to potential passengers from a transportation network company, and uses a TNC vehicle to offer or provide a TNC prearranged trip to transportation network company passengers upon connection through a digital network controlled by a transportation network company in exchange for compensation or payment of a fee.

5. "Transportation network company passenger" or "passenger" means a person or persons who use a transportation network company's digital network to connect with a transportation network company driver who provides TNC prearranged trips to the passenger in the TNC vehicle between points chosen by the passenger.

6. "TNC prearranged trip" means the provision of transportation by a transportation network company driver to a passenger provided through the use of a TNC's digital network:

(a) beginning when a transportation network company driver accepts a passenger's request for a trip through a digital network controlled by a transportation network company;

(b) continuing while the transportation network company driver transports the requesting passenger in a TNC vehicle; and

(c) ending when the last requesting passenger departs from the TNC vehicle.

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7. "Group policy" means an insurance policy issued pursuant to section three thousand four hundred fifty-five of the insurance law.

§ 1692. General provisions. 1. Neither a TNC nor a TNC driver shall be deemed to be a common carrier, as defined in subdivision six of section two of the transportation law, or a contract carrier of passengers by motor vehicle, as defined in subdivision nine of section two of the transportation law, or a motor carrier, as defined in subdivision seventeen of section two of the transportation law. Neither a TNC nor a TNC driver shall be deemed to provide taxicab or for-hire vehicle service and provided, further, no TNC driver shall be required to register the TNC vehicle that such TNC driver uses for TNC prearranged trips as a commercial or for-hire vehicle pursuant to section four hundred one of this chapter.

2. A TNC may not operate in the state of New York without first having obtained a license issued by the department in a form and manner and with applicable fees as provided for by regulations promulgated by the commissioner. As a condition of obtaining a license, a TNC shall be required to submit to the department proof of a group policy issued pursuant to section three thousand four hundred fifty-five of the insurance law, including excess insurance coverage. Failure of a TNC to obtain a license before operation, pursuant to this subdivision shall constitute a misdemeanor. No license shall be suspended or revoked except upon notice to the TNC and after an opportunity to be heard.

3. A TNC must maintain an agent for service of process in the state of New York.

4. On behalf of a TNC driver, a TNC may charge a fare for the services provided to passengers; provided that, if a fare is collected from a passenger, the TNC shall disclose to such passenger the fare and fare calculation method on its website and within the digital network prior to charging such fare. The TNC shall also provide passengers, before such passengers enter a TNC vehicle, with the applicable rates being charged and an estimated fare for such TNC prearranged trip through the TNC's digital network.

5. A TNC's digital network shall display a picture of the TNC driver providing the TNC prearranged trip, and shall disclose the make, model, color and license plate number of the TNC vehicle utilized for providing the TNC prearranged trip to the passenger before such passenger enters such TNC vehicle.

6. Within a reasonable period of time following the completion of a trip, a TNC shall transmit an electronic receipt to the passenger on behalf of the TNC driver that lists:

(a) The origin and destination of the trip;

(b) The total time and distance of the trip;

(c) An itemization of the total fare paid, if any; and

(d) The TNC operating license number.

7. A TNC driver shall not solicit or accept street hails.

8. A TNC shall adopt a policy prohibiting solicitation or acceptance of cash payments for the fares charged to passengers for TNC prearranged trips and notify TNC drivers of such policy. TNC drivers shall not solicit or accept cash payments from passengers.

9. A TNC shall not include a mandatory arbitration clause as defined in section three hundred ninety-nine-c of the general business law in any contract to which a passenger or TNC driver is a party and such clause shall be proscribed pursuant to section three hundred ninetynine-c of the general business law. For the purposes of this subdivision, any contract to which a TNC driver or passenger is a party shall

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be considered a written contract for the sale or purchase of consumer goods.

10. A TNC shall use all available technology to prevent TNC drivers from accepting prearranged trips from potential passengers located within a city with a population of one million or more.

11. In the event that a TNC driver maintains insurance satisfying the coverage requirements pursuant to section sixteen hundred ninety-three of this article, a TNC shall not collect funds from such TNC driver for the payment of TNC group policy premiums.

12. Whenever a TNC shall engage in repeated illegal acts or otherwise demonstrate persistent illegality in violation of any local laws and ordinances adopted pursuant to section one hundred eighty-one of the general municipal law, the department may impose a civil penalty, not to exceed twenty thousand dollars, against a licensed TNC. No penalty shall be levied without providing the TNC notice and an opportunity to be heard.

13. Whenever a TNC shall engage in repeated illegal acts or otherwise demonstrate persistent illegality in the carrying on, conducting or transaction of business, an application may be made by the attorney general, in the name of the people of the state of New York, to a court or justice having jurisdiction to issue an injunction, and upon notice to the TNC of not less than five days, to enjoin or restrain the continuance of such business activity or illegal acts. If it shall appear to the satisfaction of the court or justice that the TNC has engaged in such persistent illegality, an injunction may be issued by the court or justice, enjoining and restraining any further illegal activity by the TNC, without requiring proof that any person has, in fact been injured or damaged thereby. In any proceeding the court may make allowances to the attorney general as provided in paragraph six of subdivision (a) of section eighty-three hundred three of the civil practice law and rules, and direct restitution.

14. Nothing in this article shall apply to cities with a population of one million or more.

§ 1693. Financial responsibility of transportation network companies. 1. A TNC driver, or TNC on the TNC driver's behalf through a group policy, shall maintain insurance that recognizes that the driver is a TNC driver and provides financial responsibility coverage:

(a) while the TNC driver is logged onto the TNC's digital network and is available to receive transportation requests but is not engaged in a TNC prearranged trip; and

(b) while the TNC driver is engaged in a TNC prearranged trip.

2. (a) The following automobile financial responsibility insurance requirements shall apply at all times while a TNC driver is logged onto the TNC's digital network and is available to receive transportation requests but is not engaged in a TNC prearranged trip: insurance against loss from the liability imposed by law for damages, including damages for care and loss of services, because of bodily injury to or death of any person, and injury to or destruction of property arising out of the ownership, maintenance, use or operation of a personal vehicle or vehicles within this state, exclusive of interest and costs, with respect to each such occurrence, of at least seventy-five thousand dollars because of bodily injury to or death of one person in any one accident and, subject to said limit for one person, to a limit of at least one hundred fifty thousand dollars because of bodily injury to or death of two or more persons in any one accident, and to a limit of at least twenty-five thousand dollars because of injury to or destruction of property of

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others in any one accident provided, however, that such policy need not be for a period coterminous with the registration period of the personal vehicle insured, and coverage in satisfaction of the financial responsibility requirements set forth in section three thousand four hundred twenty of the insurance law, article fifty-one of the insurance law, and such other requirements or regulations that may apply for the purposes of satisfying the financial responsibility requirements with respect to the use or operation of a motor vehicle.

(b) The coverage requirements of paragraph (a) of this subdivision may be satisfied by any of the following:

(i) insurance maintained by the TNC driver; or

(ii) insurance provided through a group policy maintained by the TNC; or

(iii) a combination of subparagraphs (i) and (ii) of this paragraph.

(c) A TNC shall also maintain insurance coverage that provides excess coverage insuring the TNC and the TNC driver in the amount of at least two hundred thousand dollars per occurrence to cover any liability arising from a TNC driver's use of a TNC vehicle in connection with a TNC's digital network within the period specified in this subdivision, which liability exceeds the required coverage limits in paragraph (a) of this subdivision.