Bill Number: H.B. 2135

                                                                                                     Yarbrough Floor Amendment

                                                                                         Reference to: House engrossed bill

                                                                                        Amendment drafted by: Leg Council

 

 

FLOOR AMENDMENT EXPLANATION

 

Extends the transition date for insurance coverage of transportation network company vehicles from February 1, 2016 to March 1, 2016.

 

Allows the Department of Insurance, as part of its annual survey of insurance companies, to request information from insurers regarding the availability of policies and policy endorsements offered to transportation network company drivers and how many such policies or endorsements have been purchased or cancelled during the department’s survey period.

 

Requires transportation network companies to disclose electronically or in writing: 1) the limits of insurance coverage provided by the company; 2) that a driver’s personal insurance policy may not provide coverage for transportation network services; and 3) that the use of a vehicle with a lien may violate the terms of the contract between the driver and lienholder.

 

Specifies that, except for transportation network company vehicles appropriately insured through endorsed personal policies, a commercial insurance policy is necessary to meet the financial responsibility requirements set forth for taxis, livery vehicles, limousines and transportation network company vehicles.

 

Includes a temporary exemption from rulemaking requirements for the Department of Weights and Measures for the purposes of implementing this act. Directs legislative council to transfer and renumber the provisions of this legislation should the responsibility for regulation of taxis, livery vehicles and limousines be transferred from the Department of Weights and Measures to the Department of Transportation.

 

Makes clarifying technical changes.


 

Fifty-second Legislature                                                Yarbrough

First Regular Session                                                   H.B. 2135

 

YARBROUGH FLOOR AMENDMENT

SENATE AMENDMENTS TO H.B. 2135

(Reference to House engrossed bill)

 


Page 1, line 18, strike "January 31" insert "February 29"

Line 21, after "application" insert "to be a driver"

Page 2, line 26, strike "January 31" insert "February 29"

Lines 30 and 31, strike "as a transportation network company vehicle"

Line 33, after "application" insert "to be a driver"

Line 38, strike "specifically" insert "expressly"

Page 7, line 32, after the second "the" insert "insured's"

Line 38, after "application" insert "to be a driver"

Line 41, strike "41‑2051" insert "41‑2138"

Page 9, line 33, strike "41‑2051" insert "41‑2138"

Page 14, lines 21, 23 and 25, strike "41‑2051" insert "41‑2138"

Page 17, line 1, strike "January 31" insert "February 29"

Line 3, after "application" insert "to be a driver"

After line 42, insert:

"Sec. 6.  Heading change

The article heading of title 28, chapter 9, article 2, Arizona Revised Statutes, is changed from "MOTOR CARRIER FINANCIAL RESPONSIBILITY" to "TRANSPORTATION FINANCIAL RESPONSIBILITY"."

Renumber to conform

Page 18, line 28, after "section" insert "28‑4038 or"; after "28‑4039" insert ", as applicable"

Page 19, line 27, strike the first comma insert "and"; strike "and 28‑4040"

Line 29, after "requirements" insert "; survey"

Line 30, after "A." insert "for a transportation network company that requires a transportation network company driver to accept rides that are booked and paid for exclusively through the transportation network company's digital network or software application and"

Page 19, line 32, strike "and is available to provide transportation network"

Line 33, strike the first "services" insert "to be a driver"

Line 35, strike "January 31" insert "March 1"

Line 40, strike the period insert a comma

Page 20, line 1, strike "January 30" insert "February 29"

Line 5, strike the period insert a comma

Line 8, after "accident" insert a period

Line 13, after "application" insert "to be a driver"

Line 16, after "A" insert "COMMERCIAL"; after "policy" insert a period and strike remainder of line

Strike line 17

Line 18, after "B." insert "for a transportation network company that requires a transportation network company driver to accept rides that are booked and paid for exclusively through the transportation network company's digital network or software application and"

Line 22, after "primary" insert "commercial"

Line 26, after "2." insert "commercial"; strike "and underinsured"

Between lines 27 and 28, insert:

"C.  For a transportation network company that does not require a transportation network company driver to accept rides booked and paid for exclusively through a transportation network company's digital network or software application and during the time in which the transportation network company driver is logged in to the transportation network company's digital network or software application to be a driver, either the transportation network company driver or the transportation network company shall maintain the following insurance coverages:

1.  During the time in which the driver is available to provide passenger transportation, but has not accepted a ride request and is not in the act of providing passenger transportation, primary commercial motor vehicle liability insurance coverage in the amount of twenty‑five thousand dollars because of bodily injury to or death of any one person in any one accident, subject to the limit for one person, fifty thousand dollars because of bodily injury to or death of two or more persons in any one accident and twenty thousand dollars because of injury to or destruction of property of others in any one accident.

2.  After the driver has accepted a ride request through any communication, including a street hail, and during the time in which the driver is providing passenger transportation:

(a)  Primary commercial motor vehicle liability insurance in a minimum amount of two hundred fifty thousand dollars per incident.

(b)  Commercial Uninsured motorist coverage in a minimum amount of two hundred fifty thousand dollars per incident."

Reletter to conform

Page 20, line 28, strike "January 30" insert "February 29"; after the second comma insert "unless an insurance policy expressly provides coverage or contains an amendment or endorsement that expressly provides coverage,"

Line 30, after "policy" insert "shall not be required to"; strike "no"; strike "motor" insert "transportation network company"

Line 33, after "application" insert "to be a driver"

Line 34, after "services" insert a period and strike remainder of line

Strike line 35

Line 36, strike "C" insert "D"

Line 37, strike "while" insert "for the period during which"

Line 38, after "application" insert "to be a driver"

Page 21, line 5, after "while" insert "logged in to a transportation network company's digital network or software application to be a driver or is"

Line 8, strike "information"

Line 9, after "accident" strike remainder of line

Line 10, strike "network company vehicle"

Line 14, strike "under section 28‑4040" insert "as prescribed in this section"

Line 21, strike "January 30" insert "February 29"

Line 25, strike the first "the" insert "a transportation network company"

Line 26, after "application" insert "to be a driver"

Page 21, between lines 31 and 32, insert:

"J.  The department of insurance, as part of its annual survey of insurance companies, may request information from any property and casualty insurer authorized to write private passenger motor vehicle coverage in this state, including information regarding:

1.  Whether the insurer offers for purchase a policy or an endorsement or amendment that covers transportation network company drivers while the driver is logged in to a transportation network company's digital network or software application to be a driver or is providing transportation network services.

2.  The number of those policies, endorsements or amendments that have been purchased during the reporting period.

3.  The number of those policies, endorsements or amendments that have been canceled during the reporting period."

Line 32, after "livery" insert "vehicle"

Line 33, strike "A taxi, livery vehicle or limousine may maintain" insert "A."

Line 34, after "insurance" insert "for a taxi, livery vehicle or limousine may be maintained"

Strike line 38

Line 39, strike "limousine company, or both, shall provide"; after "primary" insert "commercial"

Line 45, after "accident" strike remainder of line insert ".  This policy may be maintained by either the driver or the company."

Page 22, strike lines 1 through 6

Line 8, strike ", including a street hail,"

Line 11, strike ", or both,"

Line 13, after "primary" insert "commercial"

Line 15, after "(b)" insert "commercial"; strike "and underinsured"

Strike lines 17 through 45, insert:

"B.  A taxi, livery vehicle or limousine driver shall carry proof of insurance in the vehicle at all times while providing transportation services.  If an accident occurs involving a taxi, livery vehicle or limousine, the taxi, livery vehicle or limousine driver shall provide proof of insurance to the parties involved in the accident at the time of the accident.  The taxi, livery vehicle or limousine driver shall also notify the taxi, livery vehicle or limousine company of the accident.

C.  In a claims coverage investigation, a taxi, livery vehicle or limousine company and any insurer providing coverage as prescribed in this section shall fully cooperate in the exchange of information and shall disclose to each other a clear description of the coverage, exclusions and limits provided under any insurance policy that each party issued or maintained."

Strike pages 23 through 26

Page 27, strike lines 1 through 6

Renumber to conform

Line 10, after "preemption" insert "; definitions"

Line 11, before "The" insert "A."

Between lines 23 and 24, insert:

"B.  For the purposes of this section, "transportation network company" and "Transportation network company vehicle" have the same meanings prescribed in section 41‑2138."

Lines 31 and 32, strike "available for inspection at all times by the department written evidence of" insert "available for inspection at all times by the department written evidence of"

Line 33, strike "of" insert "for"

Page 28, line 6, strike "department" insert "owner"

Line 7, after "years" insert "and make the records available to the department on request"

Line 25, after "violated" insert "the policy required by"

Line 29, after "owner" insert "and make the records available to the department on request"

Page 28, between lines 32 and 33, insert:

"START_STATUTE41-2138.  Definitions

In this article, unless the context otherwise requires:

1.  "Digital network or software application" means any online‑enabled application, software, website or system that is offered or used by a transportation network company and that enables a potential passenger to arrange a ride with a transportation network company driver.

2.  "Limousine" means a motor vehicle providing prearranged ground transportation service for an individual passenger, or a group of passengers, that is arranged in advance or is operated on a regular route or between specified points and includes ground transportation under a contract or agreement for services that includes a fixed rate or time and is provided in a motor vehicle with a seating capacity not exceeding fifteen passengers, including the driver.

3.  "Livery vehicle" means a motor vehicle that:

(a)  Has a seating capacity not exceeding fifteen passengers, including the driver.

(b)  Provides passenger services for a fare determined by a flat rate or flat hourly rate between geographic zones or within a geographic area.

(c)  Is available for hire on an exclusive or shared‑ride basis.

(d)  May do any of the following:

(i)  Operate on a regular route or between specified places.

(ii)  Offer prearranged ground transportation service as defined in section 28‑141.

(iii)  Offer on demand ground transportation service pursuant to a contract with a public airport, licensed business entity or organization.

4.  "Person" means both the plural and the singular, as the case demands, and includes individuals, partnerships, corporations, companies, societies and associations.

5.  "Taxi" means a motor vehicle that has a seating capacity not exceeding fifteen passengers, including the driver, that is registered as a taxi in this state or any other state, that provides passenger services and that:

(a)  Does not primarily operate on a regular route or between specified places.

(b)  Offers local transportation for a fare determined on the basis of the distance traveled or prearranged ground transportation service as defined in section 28‑141 for a predetermined fare.

6.  "Trade dress" means a removable and distinct logo, insignia or emblem attached to or visible from the exterior of a transportation network company vehicle during the performance of transportation network services.

7.  "Transportation network company" means an entity that has been issued a permit pursuant to this article, that operates in this state, that uses a digital network or software application to connect passengers to transportation network services provided by transportation network company drivers and that may but is not deemed to own, operate or control a personal motor vehicle of a transportation network company driver.  Transportation network company does not include the following:

(a)  This state or a county, city, town or political subdivision of this state and any related entity, a nonprofit agency or any other public body that coordinates, operates, promotes or sponsors public transportation, carpool or vanpool services.

(b)  A program that is in place to meet federal air quality standards pursuant to section 49-404.

(c)  Any individual, company or activity that meets the requirements of a rental car agent or rental company as defined in section 20-331 if all of the following apply:

(i)  Transportation is provided to another person or is arranged by the rental company but provided by another person.

(ii)  The route is predetermined.

(iii)  Any money exchanged between the provider of the transportation and the recipient does not exceed the cost of providing the transportation.

8.  "Transportation network company driver" means an individual who receives connections to potential passengers and related services from a transportation network company in exchange for payment of a fee to the transportation network company and who operates a motor vehicle that is both of the following:

(a)  Owned, leased or otherwise authorized for use by the individual.

(b)  Used to provide transportation network services.

9.  "Transportation network company vehicle" means a motor vehicle that meets all of the following:

(a)  Has a seating capacity not exceeding eight passengers, including the driver.

(b)  Is authorized by a transportation network company.

(c)  Is used by a transportation network company driver to provide transportation network services.

10.  "Transportation network services" means the transportation of a passenger between points chosen by the passenger and arranged with a transportation network company driver through the use of a transportation network company's digital network or software application beginning when a transportation network company driver accepts a request for transportation network services received through the transportation network company's digital network or software application, continuing while the transportation network company driver provides transportation network services in a transportation network company vehicle and ending when the passenger exits the transportation network company vehicle or when the trip is canceled." END_STATUTE

Page 28, line 35, strike "operate a" insert "act as a transportation network company driver in this state unless the"; strike "in this"

Line 36, strike "state without a permit" insert "has been"; after "issued" insert "a permit"

Line 41, strike "the" insert "a"

Page 29, between lines 2 and 3, insert:

"E.  A transportation network company shall be regulated pursuant to this article and not as a taxi, livery vehicle or limousine service."

Page 29, line 5, after "company" insert "driver"

Line 7, after "charged" insert "through a digital network or software application"

Line 11, strike "application" insert "applicable"; after "charged" insert "through a digital network or software application"

Line 14, strike the comma insert "through"

Line 15, after "application" insert ", the digital network or software application"

Line 19, after "trip" insert "arranged through a digital network or software application"

Page 30, line 4, after "company" insert "and make the records AVAILABLE to the department on request"

Between lines 38 and 39, insert:

"C.  A transportation network company or its agent shall maintain records of the criminal background check conducted on behalf of each transportation network company driver and make the records available to the department on request."

Line 41, after "booked" insert "and paid for"

Line 44, strike "on" insert "against"

Page 31, line 5, strike "28-4039" insert "28-4038, subsection C"

Line 10, after "ended" insert "and shall make the records available to the department on request"

Between lines 17 and 18, insert:

"START_STATUTE41‑2139.06.  Transportation network company disclosures; insurance proceeds

A.  A transportation network company shall disclose to its transportation network company drivers, in writing or in an electronic format, the following information before the drivers may accept a request for transportation network services on the transportation network company's digital network or software application:

1.  The insurance coverage and limits of liability that the transportation network company provides while the transportation network company driver uses a transportation network company vehicle in connection with the transportation network company's digital network or software application.

2.  That the transportation network company driver's own insurance policy might not provide coverage while the transportation network company driver uses a transportation network company vehicle in connection with the transportation network company's digital network or software application, depending on its terms.

3.  That the transportation network company driver's use of a vehicle that has a lien against it to provide transportation network services for the transportation network company might violate the terms of the transportation network company driver's contract with the driver's lienholder.

B.  The disclosures required by subsection A of this section shall be placed in the prospective transportation network company vehicle owner's written terms of service.

C.  If a transportation network company's insurer makes a payment for a claim covered under comprehensive coverage or collision coverage, the transportation network company shall cause its insurer to issue the payment directly to the business repairing the vehicle or jointly to the owner of the vehicle and the primary lienholder on the covered vehicle.END_STATUTE"

Page 31, line 30, strike "41‑2051" insert "41‑2138"

Page 33, line 2, after "insurance" insert "immediately"

Lines 5 and 6, strike "41‑2051" insert "41‑2138"

Line 8, strike "41-2051" insert "41-2138"; after "that" insert "at least two of"

Line 9, strike "January 31" insert "March 1"

After line 9, insert:

"Sec. 14.  Exemption from rulemaking

For the purposes of this act, the department of weights and measures or the department of transportation, as applicable, is exempt from the rulemaking requirements of title 41, chapter 6, Arizona Revised Statutes, until March 1, 2016.

Sec. 15.  Statutory revision; legislative council

If the department of transportation succeeds to the authority, powers, duties and responsibility of the department of weights and measures relating to the regulation of taxis, livery vehicles and limousines, the legislative council staff shall transfer and renumber title 41, chapter 15, article 8, Arizona Revised Statutes, for placement in title 28, Arizona Revised Statutes, as applicable."

Amend title to conform


 

 

 

2135sy1.doc

03/31/2015

8:51 AM

C: ns