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 activity" means the period of time when the transportation network company driver logs onto the transportation network company's online-enabled application or platform until the moment the transportation network company driver logs off the online-enabled application or platform or until the ride is complete and the passenger exits the transportation network company driver's vehicle, whichever is later.

"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) A transportation network company shall disclose in writing to transportation network company drivers, as part of the transportation network company's agreement with those drivers:

(1) The insurance coverage and limits of liability that the transportation network company provides while the transportation network company driver uses a vehicle during transportation network company activity; and

(2) That the transportation network company driver's personal automobile insurance policy will not provide any required or optional coverage because the transportation network company driver uses a vehicle during transportation network company activity.

(b) A transportation network company and any transportation network company driver shall maintain a primary commercial motor vehicle insurance policy that shall be in effect during transportation network company activity. The primary commercial motor vehicle insurance required under this section shall include:

(1) Primary liability coverage of not less than $100,000 per person, with an aggregate limit of $200,000 per accident, for all damages arising out of accidental harm sustained as a result of any one accident and arising out of ownership, maintenance, use, loading, or unloading of a motor vehicle;

(2) Primary liability coverage of not less than $50,000 for all damages arising out of damage to or destruction of property including motor vehicles and including the loss of use thereof, but not including property owned by, being transported by, or in the charge of the insured, as a result of any one accident arising out of ownership, maintenance, use, loading, or unloading, of the insured vehicle;

(3) Uninsured and underinsured motorist coverage for the transportation network company driver and passengers that shall be equal to the primary liability limits specified in paragraphs (1) and (2);

(4) Personal injury protection coverage in an amount that meets the requirements of section 431:10C�103.5 and shall be equal to or greater than the coverage limits for the personal automobile insurance maintained by the vehicle's owner and reported to the transportation network company; and

(5) Collision and comprehensive coverage limits for the transportation network company driver's vehicle that shall be equal to or greater than the coverage limits for the personal automobile insurance maintained by the vehicle's owner and reported to the transportation network company.

(1) Motor vehicle insurance maintained by a transportation network company driver, but only if the transportation network company verifies that the policy is maintained by the transportation network company driver and is specifically written to cover the transportation network company driver's use of a vehicle in connection with a transportation network company's online-enabled application or platform;

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

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

(d) The insurer providing insurance under this section shall have the duty to defend and indemnify the insured.

(e) Coverage under a transportation network company insurance policy shall not be dependent on a personal automobile insurance policy first denying a claim nor shall a personal automobile insurance policy, including a personal liability umbrella policy, be required to first deny a claim.

(f) In every instance where motor vehicle insurance maintained by a transportation network company driver to fulfill the insurance obligations of this section has lapsed or ceased to exist, the transportation network company shall provide the coverage required by this section beginning with the first dollar of a claim.

(g) Nothing in this section shall be construed to require a personal automobile insurance policy to provide primary or excess coverage during transportation network company activity. During transportation network company activity, and notwithstanding any other law to the contrary, the following shall apply:

(1) The transportation network company driver's or the vehicle owner's personal automobile insurance policy shall not be required to provide, nor shall it provide, any coverage to any person or entity unless the policy expressly provides for that coverage during transportation network company activity, with or without a separate charge, or the policy contains an amendment or endorsement to provide coverage for transportation network company activity, for which a separately stated premium is charged; and

(2) The transportation network company driver's or the vehicle owner's personal automobile insurance policy shall not have the duty to defend or indemnify for the driver's activities in connection with the transportation network company, unless the policy expressly provides otherwise for transportation network company activity, with or without a separate charge, or the policy contains an amendment or endorsement to provide coverage for transportation network company activity, for which a separately stated premium is charged.

(h) Notwithstanding any other law to the contrary, a personal automobile insurer may, at its discretion, offer an automobile liability insurance policy, or an amendment or endorsement to an existing policy that covers a private passenger vehicle, station wagon type vehicle, sport utility vehicle, or similar type of vehicle with a passenger capacity of eight persons or less, including the driver, while used in connection with a transportation network company activity if the policy expressly provides for the coverage of transportation network company activity, with or without a separate charge, or the policy contains an amendment or an endorsement to provide coverage for transportation network company activity, for which a separately stated premium may be charged.

(i) In a claims coverage investigation, a transportation network company or its insurer shall cooperate with insurers that are involved in the claims coverage investigation to facilitate the exchange of information, including the provision of dates and times at which an accident occurred that involved a transportation network company driver and the precise times that the transportation network company driver logged on and off the transportation network company's online-enabled application or platform.

(j) A transportation network company driver of a transportation network company shall carry proof of insurance coverage as required by this section within the vehicle at all times when the vehicle is being used in connection with transportation network company service or transportation network company activity. In the event of an accident, a transportation network company driver shall provide this insurance coverage information to any other party involved in the accident, and to a police officer, upon request.

(k) Notwithstanding any other law affecting whether one or more policies of insurance that may apply with respect to an occurrence is primary or excess, this section shall determine the obligations under insurance policies issued to transportation network companies and, if applicable, transportation network company drivers using a vehicle in connection with a transportation network activity.

§ -9 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 the zero tolerance 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.

§ -10 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, including 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;

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

(4) Require the individual to submit evidence of a physical examination to determine the individual's health and fitness to act as a transportation network company driver.

(b) The transportation network company shall not permit an individual to act as a transportation network company driver on the transportation network company's 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, any domestic violence 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 twenty-one years of age.

§ -11 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.

§ -12 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.

§ -13 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.

§ -14 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.

§ -15 Records. (a) A transportation network company shall maintain:

(1) Global positioning system records and electronic records of transportation network company activity for each individual trip provided by a transportation network company driver 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.

(b) Records maintained under to this section shall be made readily available for purposes of a claims coverage investigation pursuant to section -8(i) or resolving any other dispute related to transportation network company activity.

§ -16 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.

§ -17 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 pursuant to this chapter 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.

THE SENATE	S.B. NO.	1280
TWENTY-EIGHTH LEGISLATURE, 2015		S.D. 1
STATE OF HAWAII