SECTION 1. The Hawaii Revised Statutes is amended by adding a new chapter to be appropriately designated and to read as follows:

"Chapter

TRANSPORTATION NETWORK COMPANIES

§ -1 Definitions. As used in this chapter:

"Transportation network company" means an entity that uses a digital network or software application service to connect passengers to transportation network company services provided by transportation network company drivers; provided that the entity:

(1) Does not own, control, operate, or manage the vehicles used by transportation network company drivers; and

(2) Is not a taxicab association or a for-hire vehicle owner.

"Transportation network company driver" means an individual who operates a motor vehicle that is:

(1) Owned, leased, or otherwise authorized for use by the individual;

(2) Not a taxicab or for-hire vehicle; and

(3) Used to provide transportation network company services.

"Transportation network company service" means the transportation of a passenger between points chosen by the passenger and prearranged with a transportation network company driver through the use of a transportation network company digital network or software application, and does not include a taxicab, for-hire vehicle, or street hail service.

§ -2 Relation to other laws. Neither a transportation network company nor a transportation network company driver shall be deemed to be a common carrier by motor vehicle, a contract carrier by motor vehicle, a motor carrier as defined in section 271-4, a taxicab, or a for-hire vehicle service.

§ -3 Permit required. (a) No person shall operate a transportation network company in the State without first obtaining a permit from the public utilities commission.

(b) The public utilities commission shall issue a permit to each applicant that meets the requirements for a transportation network company as set forth in this chapter and pays an annual permit fee of $5,000 to the commission.

§ -4 Agent. A transportation network company shall maintain an agent in the State for service of process.

§ -5 Duration of service; fare charged for services. (a) Transportation network company service shall be deemed to:

(1) Commence when a transportation network company driver accepts a request for transportation received through the transportation network company's digital network or software application service;

(2) Continue while the transportation network company driver transports the passenger in the transportation network company's vehicle; and

(3) Conclude when the passenger exits the transportation network company driver's vehicle.

(b) A transportation network company may charge a fare for transportation network company service provided to passengers; provided that, if a fare is charged, the transportation network company shall disclose to passengers the fare calculation method on its website or within the software application service. The transportation network company shall also provide passengers with the applicable rates being charged and the option to receive an estimated fare before the passenger enters the transportation network company driver's vehicle.

§ -6 Identification of vehicles and drivers. The transportation network company's software application or website shall display a picture of:

(1) The transportation network company driver; and

(2) The license plate number of the motor vehicle being used for providing the transportation network company service,

before the passenger enters the transportation network company driver's vehicle.

§ -7 Electronic receipt. Within a reasonable period of time following the completion of a trip, a transportation network company shall transmit an electronic receipt to the passenger that specifies:

(1) The origin and destination of the trip;

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

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

(4) The information required by section -6.

§ -8 Transportation network company and transportation network company driver insurance requirements. (a) Not later than January 1, 2016, and thereafter, transportation network companies and transportation network company drivers shall comply with the motor vehicle insurance requirements of this section.

(b) The following motor vehicle insurance requirements shall apply during the time that a transportation network company driver is logged into the transportation network company's digital network and available to receive requests for transportation but is not then providing transportation network company services:

(1) Motor vehicle insurance liability coverage that meets at least the minimum coverage requirements of section 431:10C-301(b); and

(2) Motor vehicle insurance personal injury protection benefits that meet at least the minimum coverage requirements of section 431:10C-103.5.

A transportation network company shall maintain motor vehicle insurance coverage in the amounts required in paragraphs (1) and (2) and provide coverage in the event a participating transportation network company driver's own motor vehicle insurance policy excludes coverage according to its policy terms or does not provide coverage of at least the limits required in paragraph (1).

(c) The following motor vehicle insurance requirements shall apply while a transportation network company driver is providing transportation network company services:

(1) Provides primary motor vehicle insurance coverage that recognizes the transportation network company driver's provision of transportation network company services;

(2) Provides motor vehicle insurance coverage of at least $1,000,000 for death, personal injury, and property damage; and

(3) Provides motor vehicle insurance personal injury protection benefits that meet at least the minimum coverage requirements of section 431:10C-103.5.

(d) The coverage requirements of subsection (c) may be satisfied by any of the following:

(1) Motor vehicle insurance coverage maintained by the transportation network company driver; or

(2) Motor vehicle insurance coverage maintained by the transportation network company; or

(3) Any combination of paragraphs (1) and (2).

(e) If the motor vehicle insurance policy maintained by a transportation network company driver to fulfill the insurance requirements of this section lapses, fails to provide the required coverage, has a claim denied, or otherwise ceases to exist, the motor vehicle insurance policy maintained by a transportation network company shall provide the coverage required under this section beginning with the first dollar of a claim.

(f) The motor vehicle insurance policy required under this section may be placed with a surplus lines insurer who is eligible to provide coverage under section 431:8-302.

(g) A motor vehicle insurance policy procured pursuant to this section shall be deemed to satisfy the requirements of section 431:10C-104.

§ -9 Transportation network company and insurer disclosure requirements. (a) The transportation network company shall disclose in writing to transportation network company drivers the following before the transportation network company may permit transportation network company drivers to accept a request for transportation network company services on the transportation network company's digital network:

(1) The insurance coverage and limits of liability 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; and

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

(b) Insurers that write motor vehicle insurance in the State may:

(1) Exclude any and all coverage and the duty to defend afforded under the owner's insurance policy for any loss or injury that occurs while an insured vehicle provides or is available to provide transportation network company services; provided that the exclusion is expressly set forth in the policy and approved by the insurance commissioner for sale in the State. This right to exclude coverage and the duty to indemnify and defend may apply to any coverage included in a motor vehicle insurance policy including, but not limited to:

(A) Liability coverage for bodily injury and property damage;

(B) Uninsured and underinsured motorist coverage;

(D) Comprehensive physical damage coverage;

(E) Collision physical damage coverage; and

(F) Personal injury protection coverage.

The insurer shall notify an insured after receiving a notice of loss within the time required by section 431:13-103(a)(11) that the insurer has no duty to defend or indemnify any person or organization for liability for a loss that is properly excluded pursuant to the terms of the applicable primary or excess insurance policy.

(c) Insurers that write motor vehicle insurance in the State shall disclose, in a prominent location on its application form for insurance coverage, whether or not the insurance policy provides coverage while an insured vehicle provides or is available to provide transportation network company services. If a motor vehicle insurance policy contains an exclusion for transportation network company services, the insurer or its agent shall disclose the exact language of the exclusion in writing to the applicant during the application process.

(d) In a claims coverage investigation, transportation network companies and any insurer providing coverage under section -8 shall cooperate to facilitate the exchange of information, including the precise times that a transportation network company driver logged on and off of the transportation network company's digital network in the twenty-four hour period immediately preceding the accident, and shall disclose to one another a clear description of the coverage, exclusions, and limits provided under any insurance policy each party issued or maintained.

§ -10 Zero tolerance for drug or alcohol use. (a) The transportation network company shall implement a zero tolerance policy on the use of drugs or alcohol while a transportation network company driver is providing transportation network company services or is logged into the transportation network company's digital network, even if not providing transportation network company services, and shall provide notice of this policy on its website, as well as procedures for reporting a complaint about a driver with whom a passenger was matched and who the passenger reasonably believes was under the influence of drugs or alcohol during the course of the trip.

(b) Upon receipt of a passenger complaint alleging a violation of the zero tolerance policy, the transportation network company shall immediately suspend the transportation network company driver's access to the transportation network company's digital platform and shall conduct an investigation into the reported incident. The suspension shall last for the duration of the investigation; provided that the investigation shall be conducted in a reasonably expeditious manner.

(c) The transportation network company shall maintain records relevant to a reported incident for a period of at least two years from the date that a passenger complaint is received by the transportation network company.

§ -11 Driver requirements. (a) Prior to permitting an individual to act as a transportation network company driver on its digital platform, the transportation network company shall:

(1) Require the individual to submit an application to the transportation network company, which includes information regarding the individual's address, age, driver's license, driving history, motor vehicle registration, motor vehicle insurance, and other information required by the transportation network company;

(2) Conduct, or have a third party conduct, a local and national criminal background check for each applicant that shall include:

(A) Multi-state/Multi-Jurisdiction Criminal Locator or other similar commercial nationwide database with validation (primary source search); and

(B) National Sex Offender Registry database; and

(3) Obtain and review a traffic violations bureau certified abstract for the individual.

(b) The transportation network company shall not permit an individual to act as a transportation network company driver on its digital platform who:

(1) Has been found to have committed more than three traffic infractions, as defined in section 291D-2, in the prior three-year period, other than traffic infractions involving parking, standing, equipment, and pedestrian offenses;

(2) Has been convicted once in the prior three-year period for the offense of resisting an order to stop a motor vehicle, reckless driving, or driving with a suspended or revoked driver license;

(3) Has been convicted in the prior seven-year period of driving under the influence of drugs or alcohol;

(4) Has been convicted at any time of fraud, any sexual offense, use of a motor vehicle to commit a felony, a crime involving property damage, theft, acts of violence, or acts of terrorism;

(5) Is a match in the National Sex Offender Registry database;

(6) Does not possess a valid driver's license;

(7) Does not possess proof of registration or other authorization for the motor vehicle used to provide transportation network company services;

(8) Does not possess proof of motor vehicle insurance for the motor vehicles used to provide transportation network company services; or

(9) Is not at least nineteen years of age.

§ -12 Vehicle safety. The transportation network company shall require that any motor vehicle that a transportation network company driver uses to provide transportation network company services meets the inspection requirements of section 286-26.

§ -13 No street hails. A transportation network company driver shall only accept rides booked through a transportation network company's digital network or software application service and shall not solicit or accept street hails.

§ -14 No cash trips. The transportation network company shall adopt a policy prohibiting solicitation or acceptance of cash payments from passengers and notify transportation network company drivers of the policy. Transportation network company drivers shall not solicit or accept cash payments from passengers. Any payment for transportation network company services shall be made only electronically, using the transportation network company's digital network or software application.

§ -15 No discrimination; accessibility. (a) The transportation network company shall adopt a policy of non-discrimination 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 potential passengers and notify transportation network company drivers of the policy.

(b) A transportation network company shall not impose any additional charges for providing services to persons with physical disabilities because of those disabilities.

(c) A transportation network company shall provide passengers an opportunity to indicate whether they require a wheelchair-accessible vehicle. If a transportation network company cannot arrange wheelchair-accessible transportation network company service in any instance, it shall direct the passenger to an alternate provider of wheelchair-accessible service, if available.

(d) Transportation network company drivers shall comply with all applicable laws regarding non-discrimination against passengers or potential passengers on the basis of destination, race, color, national origin, religious belief or affiliation, sex, disability, age, sexual orientation, or gender identity.

(e) Transportation network company drivers shall comply with all applicable laws relating to accommodation of service animals.

§ -16 Records. A transportation network company shall maintain:

(1) Individual trip records for at least one year from the date each trip was provided; and

(2) Transportation network company driver records at least until the one year anniversary of the date on which a transportation network company driver's activation on the transportation network company digital network has ended.

§ -17 Personally identifiable information. (a) A transportation network company shall not disclose a passenger's personally identifiable information to a third party unless:

(1) The passenger consents;

(2) Disclosure is required by law; or

(3) Disclosure is required to protect or defend the terms of use of the service or to investigate violations of those terms.

(b) A transportation network company may share a passenger's name or telephone number with the transportation network company driver providing transportation network company services to the passenger in order to facilitate correct identification of the passenger by the transportation network company driver or to facilitate communication between the passenger and the transportation network company driver.

§ -18 Controlling authority. Notwithstanding any other provision of law, transportation network companies and transportation network company drivers shall be regulated exclusively by this chapter and any rules adopted thereunder by the public utilities commission pursuant to chapter 91. No county may impose a tax upon, or require a license for, a transportation network company or a transportation network company driver."

SECTION 2. This Act shall take effect upon its approval.

INTRODUCED BY:	_____________________________

THE SENATE	S.B. NO.	1280
TWENTY-EIGHTH LEGISLATURE, 2015
STATE OF HAWAII