January 15, 2015, Introduced by Rep. Kelly and referred to the Committee on Communications and Technology.
A bill to regulate transportation network companies in this
state; to provide for the powers and duties of certain state
officers and entities; and to prescribe penalties and provide
remedies.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1. As used in this act:
(a) "Department" means the department of state.
(b) "Personal vehicle" means a motor vehicle that has been
approved to be used by a transportation network company driver to
perform rides arranged through a transportation network company
digital platform and that meets the requirements of this act.
(c) "Prearranged ride" means a period of time that begins when
a transportation network company driver accepts a requested ride
through a digital network, continues while the transportation
network company driver transports the rider in a personal vehicle,
and ends when the rider departs from the personal vehicle.
(d) "Ridesharing arrangement" means an arrangement for the
transportation of not more than 8 passengers, not including the
driver, by motor vehicle that satisfies 1 of the following:
(i) The arrangement is for a purpose incidental to another
purpose of the driver, and the driver does not charge or receive a
fee, other than money paid to reimburse the driver or owner of the
vehicle for his or her operating expenses on a not-for-profit
basis.
(ii) The passengers and the driver are traveling between their
homes and places of employment, or places convenient to their homes
or places of employment, and the driver does not charge or receive
a fee, other than money paid to reimburse the driver or owner of
the vehicle for his or her operating expenses on a not-for-profit
basis.
(e) "Taxi" or "taxicab" means an on-demand motor vehicle that
satisfies all of the following:
(i) The vehicle may be hailed or prearranged by a passenger.
(ii) The vehicle has a seating capacity of 1 to 8 passengers,
including the driver.
(iii) The vehicle is used in the transportation of passengers
for hire and charges a rate based on a meter installed in the
vehicle or a flat fare.
(iv) The vehicle is identified with the words "taxi" or "cab"
on the vehicle and is equipped with a permanently affixed rooftop
sign that displays the words "taxi" or "cab", the company name, or
the company phone number.
(f) "Transportation network company" means a person operating
in this state that uses a digital network to connect riders to
transportation network company drivers for the purpose of providing
transportation. Transportation network company does not include
taxi service, transportation service arranged through a
transportation broker, a ridesharing arrangement, or a
transportation service using fixed routes at regular intervals.
(g) "Transportation network company driver" means an
individual who uses a personal vehicle to provide transportation
services for riders that are matched to that individual through a
transportation network company's digital network, regardless of
whether the individual is employed by a transportation network
company.
Sec. 3. A transportation network company shall not operate in
this state unless the transportation network company has submitted
an application on an annual basis to the department providing proof
of all of the following:
(a) That the transportation network company maintains a
primary insurance policy covering each transportation network
company driver for incidents involving the transportation network
company driver at all times during a prearranged ride and providing
all of the following types of coverage:
(i) Residual third-party liability insurance as required under
chapter 31 of the insurance code of 1956, 1956 PA 218, MCL 500.3101
to 500.3179, with a minimum combined single limit of $1,000,000.00
for all persons injured or property damage.
(ii) Personal protection insurance and property protection
insurance in the amounts and types of coverage required by chapter
31 of the insurance code of 1956, 1956 PA 218, MCL 500.3101 to
500.3179.
(b) The transportation network company shall provide
documentation of the insurance coverage required by subdivision (a)
to the department.
(c) That insurance of at least the amounts and types of
coverage required by chapter 31 of the insurance code of 1956, 1956
PA 218, MCL 500.3101 to 500.3179, is provided 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 providing a
prearranged ride. The requirement of this subdivision may be
satisfied by a combination of insurance policies maintained by a
transportation network company or a transportation network company
driver.
(d) That each transportation network company driver is at
least 21 years of age and, except as provided in subdivision (e),
maintains a valid operator's license issued under the Michigan
vehicle code, 1949 PA 300, MCL 257.1 to 257.923.
(e) That each transportation network company driver maintains
a valid chauffeur's license issued under the Michigan vehicle code,
1949 PA 300, MCL 257.1 to 257.923, and has obtained a commercial
vehicle registration plate under the Michigan vehicle code, 1949 PA
300, MCL 257.1 to 257.923, if the transportation network company
driver's personal vehicle has a capacity of 9 to 15 passengers.
(f) That the transportation network company has conducted a
local, state, and national background check of each transportation
network company driver, including a search of the national sex
offender database, and the transportation network company driver
has not been convicted within 7 years before the date the
application is submitted of any of the following:
(i) Driving under the influence of drugs or alcohol.
(ii) A violation of chapter XI of the Michigan penal code, 1931
PA 328, MCL 750.81 to 750.90h.
(iii) A violation of chapter XXXI of the Michigan penal code,
1931 PA 328, MCL 750.174 to 750.182a.
(iv) A violation of chapter XLIII of the Michigan penal code,
1931 PA 328, MCL 750.271 to 750.300a.
(v) A violation of chapter LII of the Michigan penal code,
1931 PA 328, MCL 750.356 to 750.367c.
(vi) A violation of chapter LVI of the Michigan penal code,
1931 PA 328, MCL 750.377a to 750.395.
(vii) A violation of chapter LXI of the Michigan penal code,
1931 PA 328, MCL 750.412 to 750.421c.
(viii) A violation of chapter LXXVI of the Michigan penal code,
1931 PA 328, MCL 750.520a to 750.520n.
(ix) A violation of section 543m of the Michigan penal code,
1931 PA 328, 750.543m.
(g) That the transportation network company has reviewed a
driving history report for each transportation network company
driver before he or she provides transportation services showing
that the transportation network company driver has not had more
than 3 moving violations or a major violation in the 3-year period
before the date of the driving history report. As used in this
subdivision, "major violation" includes, but is not limited to,
attempting to evade the police, reckless driving, or driving on a
suspended or revoked license.
(h) That each transportation network company driver's vehicle
has undergone a safety inspection conducted annually by a mechanic
licensed by this state before being used to provide transportation
services. Each transportation network company driver shall provide
to the transportation network company documentation of the
inspection required by this subdivision showing that all of the
following vehicle components were inspected:
(i) Foot brakes.
(ii) Parking brakes.
(iii) Steering mechanism.
(iv) Windshield.
(v) Rear window and other glass.
(vi) Windshield wipers.
(vii) Headlights.
(viii) Taillights.
(ix) Brake lights.
(x) Front seat adjustment mechanism.
(xi) Doors.
(xii) Turn signal lights.
(xiii) Horn.
(xiv) Speedometer.
(xv) Bumpers.
(xvi) Muffler and exhaust system.
(xvii) Tires, including tread depth.
(xviii) Interior and exterior mirrors.
(xix) Safety belts.
(xx) Defrosting system.
Sec. 5. (1) A personal vehicle shall display a consistent and
distinctive signage or emblem that is approved by the department at
all times while the transportation network company driver is
engaged in a prearranged ride. The signage or emblem shall satisfy
all of the following:
(a) The signage or emblem shall be sufficiently large and
color-contrasted to be readable during daylight hours from a
distance of at least 50 feet.
(b) The signage or emblem shall be reflective.
(c) The signage or emblem shall sufficiently identify the
transportation network company with which the vehicle is
affiliated.
(2) A transportation network company shall do all of the
following:
(a) Provide a customer support telephone number or electronic
mail address on its digital network or website for rider inquiries.
(b) Except as provided in subdivision (c), refrain from
disclosing a passenger's personally identifiable information to a
third party unless 1 or more of the following apply:
(i) The passenger consents.
(ii) Disclosure is required by a legal obligation.
(iii) Disclosure is required to process an insurance claim.
(iv) Disclosure is required to protect or defend the terms of
the use of the service or to investigate violations of those terms.
(c) A transportation network company may share a passenger's
name or telephone number to a transportation network company driver
providing a prearranged ride to that passenger to facilitate the
correct identification of the passenger by the transportation
network company driver or to facilitate communication between the
passenger and the transportation network company driver.
(d) Provide all of the following to passengers:
(i) The transportation network company driver's first name.
(ii) Make and model of the transportation network company
driver's vehicle.
(iii) Method by which the transportation network company
calculates fares or the applicable rate being charged.
(iv) The option to receive an estimated fare.
(e) Provide a receipt through electronic mail or text message
to a passenger upon completion of a prearranged ride.
(f) Disclose in writing to transportation network drivers
providing services for the transportation network company all of
the following:
(i) The insurance coverage and limits of liability that the
transportation network company provides while the transportation
network company driver uses a vehicle in connection with the
transportation network company's online-enabled application or
platform.
(ii) That, depending on the terms of the policy, the
transportation network company driver's automobile or vehicle
insurance policy may not provide coverage while he or she uses a
vehicle in connection with a transportation network company's
digital network.
(iii) That the transportation network company driver must
consult his or her own insurance company or insurance agent for
information about coverage provided by his or her personal
insurance policy.
(3) A transportation network company or a transportation
network company driver shall not do any of the following:
(a) Solicit passengers or service through a street hail.
(b) Pick up or discharge a passenger at a designated taxicab
stand, no stopping or standing zone, or other restricted area.
(4) A transportation network company driver may refuse to
transport a passenger if the passenger is acting in an unlawful,
disorderly, or endangering manner.
(5) A transportation network company driver shall do all of
the following:
(a) Permit a service animal to accompany a passenger on a
prearranged ride.
(b) Take the most direct route to the passenger's destination
unless otherwise authorized by the passenger.
(c) If an accident involving a personal vehicle occurs while
the vehicle is being used to provide transportation network company
services, the transportation network company driver shall do all of
the following:
(i) Provide proof of insurance information to the other party
involved in the accident.
(ii) Notify the transportation network company of the accident.
(iii) Notify his or her insurance company of the accident.
(d) Upon request of a law enforcement official or other
government official, display an electronic verification of his or
her affiliation with a transportation network company or a ride in
progress showing that the ride is a prearranged ride through a
transportation network company's digital network. This subdivision
does not require a transportation network company driver to
relinquish possession of an electric device if the information
described in this subdivision is contained on an electronic device.
(6) Both of the following apply to an insurance policy
described in section 3(a) to (c):
(a) The insurance policy may be placed with an insurer
licensed under chapter 4 of the insurance code of 1956, 1956 PA
218, MCL 500.402 to 500.480, or a surplus lines insurer eligible
under chapter 19 of the insurance code of 1956, 1956 PA 218, MCL
500.1901 to 500.1955.
(b) The insurance policy satisfies the financial
responsibility requirement described in chapter V of the Michigan
vehicle code, 1949 PA 300, MCL 257.501 to 257.532.
Sec. 7. (1) The department shall issue a permit to allow a
transportation network company to operate in this state if the
transportation network company meets all requirements of this act
and pays a fee determined by the department.
(2) If a transportation network company driver's insurance
coverage as required under this act is canceled, is revoked, or is
not renewed for any reason, the transportation network company
driver shall notify the transportation network company to remove
the transportation network company driver from its roster unless
the transportation network company driver has obtained substitute
insurance coverage without a lapse in coverage.
(3) After providing notice and the opportunity for a hearing,
the department may impose a fine or revoke a permit issued under
this act if a transportation network company fails to comply with
this act.
Sec. 9. A transportation network company shall not be
considered to own, control, operate, or manage a personal vehicle
operated by a transportation network company driver providing
transportation services to passengers matched through the
transportation network company digital network.
Sec. 11. A local unit of government shall not enact or enforce
an ordinance regulating a transportation network company. A local
unit of government may issue a civil infraction to a transportation
network company driver for a violation of section 5(1), 5(3), or
5(5)(a), (c), or (d).