MISSISSIPPI LEGISLATURE
2016 Regular Session
To: Transportation
By: Representative Chism
AN ACT TO PROVIDE CERTAIN REGULATIONS RELATED TO TRANSPORTATION NETWORK COMPANIES; TO PROVIDE CERTAIN DEFINITIONS; TO PROVIDE THAT TRANSPORTATION NETWORK COMPANIES ARE NOT COMMON OR CONTRACT CARRIERS; TO REQUIRE A TRANSPORTATION NETWORK COMPANY TO OBTAIN A PERMIT LICENSE; TO REQUIRE A TRANSPORTATION NETWORK COMPANY TO MAINTAIN A DESIGNATED AGENT IN THE STATE; TO AUTHORIZE A TRANSPORTATION NETWORK COMPANY TO COLLECT A FARE ON BEHALF OF A TRANSPORTATION NETWORK COMPANY DRIVER; TO REQUIRE CERTAIN IDENTIFYING INFORMATION ON A TRANSPORTATION NETWORK COMPANY WEBSITE OR APPLICATION; TO REQUIRE A TRANSPORTATION NETWORK COMPANY TO PROVIDE AN ELECTRONIC RECEIPT; TO PROVIDE CERTAIN INSURANCE REQUIREMENTS FOR TRANSPORTATION NETWORK COMPANY DRIVERS AND TRANSPORTATION NETWORK COMPANIES; TO REQUIRE TRANSPORTATION NETWORK COMPANIES TO DISCLOSE CERTAIN INFORMATION IN WRITING TO A TRANSPORTATION NETWORK COMPANY DRIVER; TO SPECIFY CERTAIN REQUIREMENTS RELATED TO INSURANCE POLICIES FOR TRANSPORTATION NETWORK COMPANIES; TO PROVIDE THAT TRANSPORTATION NETWORK COMPANY DRIVERS ARE INDEPENDENT CONTRACTORS; TO REQUIRE A TRANSPORTATION NETWORK COMPANY TO IMPLEMENT A ZERO TOLERANCE POLICY REGARDING DRUG OR ALCOHOL USE; TO PROVIDE TRANSPORTATION NETWORK COMPANY DRIVER REQUIREMENTS; TO PROHIBIT TRANSPORTATION NETWORK COMPANY DRIVERS FROM ACCEPTING STREET HAILS OR CASH TIPS; TO REQUIRE A TRANSPORTATION NETWORK COMPANY TO ADOPT AN ANTIDISCRIMINATION POLICY; TO REQUIRE A TRANSPORTATION NETWORK COMPANY TO KEEP CERTAIN RECORDS; TO AUTHORIZE THE COMMISSIONER OF INSURANCE TO AUDIT TRANSPORTATION NETWORK COMPANIES; TO PREEMPT LOCAL LAW REGARDING TRANSPORTATION NETWORK COMPANIES; TO AUTHORIZE THE COMMISSIONER OF INSURANCE TO PROMULGATE RULES RELATED TO TRANSPORTATION NETWORK COMPANIES; TO AMEND SECTION 77-7-7, MISSISSIPPI CODE OF 1972, IN CONFORMITY WITH THE PROVISIONS OF THIS ACT; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. For the purposes of this chapter, the following terms shall have the meanings ascribed to them, unless the context clearly indicates otherwise:
(a) "Personal Vehicle" means a vehicle that is used by a transportation network company driver and is:
(i) Owned, leased or otherwise authorized for use by the transportation network company driver; and
(ii) Not a common carrier by motor vehicle, contract carrier by motor vehicle or restricted motor carrier under Chapter 7, Title 77, Mississippi Code of 1972.
(b) "Commissioner" means the Commissioner of Insurance.
(c) "Department" means the Mississippi Insurance Department.
(d) "Digital network" means any online-enabled application, software, website or system offered or utilized by a transportation network company that enables the prearrangement of rides with transportation network company drivers.
(e) "Transportation network company (TNC)" means a corporation, partnership, sole proprietorship or other entity that is licensed under this chapter and operates in Mississippi, that uses a digital network to connect transportation network company riders to transportation network company drivers who provide prearranged rides. A transportation network company shall not be deemed to control, direct or manage the personal vehicles or transportation network company drivers that connect to its digital network, except where agreed to by written contract.
(f) "Transportation network company driver" or "driver" means an individual who:
(i) 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
(ii) Uses a personal vehicle to offer or provide a prearranged ride to riders upon connection through a digital network controlled by a transportation network company in return for compensation or payment of a fee.
(g) "Transportation network company rider" or "rider" means an individual or persons who use a transportation network company's digital network to connect with a transportation network driver who provides prearranged rides to the rider in the driver's personal vehicle between points chosen by the rider.
(h) "Prearranged ride" means the provision of transportation by a driver to a rider, beginning when a driver accepts a ride requested by a rider through a digital network controlled by a transportation network company, continuing while the driver transports a requesting rider, and ending when the last requesting rider departs from the personal vehicle. A prearranged ride does not include transportation provided using a common carrier by motor vehicle, contract carrier by motor vehicle, or restricted motor carrier under Chapter 7, Title 77, Mississippi Code of 1972. A prearranged ride does not include vanpooling as defined in Section 77-7-7(m), or any other type of arrangement or service in which the driver receives a fee that does not exceed the driver's costs associated with providing the ride.
SECTION 2. Transportation network companies or transportation network company drivers are not common carriers by motor vehicle, contract carriers by motor vehicle, or restricted motor carriers under Chapter 7, Title 77, Mississippi Code of 1972, nor do they provide taxicab or limousine services. In addition, a transportation network company driver shall not be required to register the vehicle such driver uses to provide prearranged rides as a commercial vehicle.
SECTION 3. (1) A person shall not operate a transportation network company in the state without first having obtained a license from the department, provided that any transportation network company operating in the state before July 1, 2016, may continue operating until the department creates a license process and sets a registration deadline.
(2) The department shall issue a license to each applicant that meets the requirements for a transportation network company set forth in this chapter, and pays an annual license fee of Five Thousand Dollars ($5,000.00) to the department.
SECTION 4. The transportation network company must maintain an agent for service of process in the State of Mississippi.
SECTION 5. On behalf of a transportation network company driver, a transportation network company may charge a fare for the services provided to riders; provided that, if a fare is collected from a rider, the transportation network company shall disclose to the rider the fare or fare calculation method on its website or within the software application service. The transportation network company shall also provide riders with the applicable rates being charged and the option to receive an estimated fare before the rider enters the transportation network company driver's vehicle.
SECTION 6. The transportation network company's software application or website shall display a picture of the transportation network company driver, and the license plate number of the motor vehicle utilized for providing the prearranged ride before the rider enters the transportation network company driver's vehicle.
SECTION 7. Within a reasonable period of time following the completion of a trip, a transportation network company shall transmit an electronic receipt to the rider on behalf of the transportation network company driver that lists:
(a) The origin and destination of the trip;
(b) The total time and distance of the trip; and
(c) An itemization of the total fare paid, if any.
SECTION 8. On or before July 1, 2016, and thereafter, a transportation network company driver or transportation network company on the driver's behalf shall maintain primary automobile insurance that:
(a) Recognizes that the driver is a transportation network company driver or otherwise uses a vehicle to transport passengers for compensation and covers the driver:
(i) While the driver is logged on to the transportation network company's digital network; or
(ii) While the driver is engaged in a prearranged ride.
(b) (i) While a transportation network company driver is logged on to the transportation network company digital network and is available to receive transportation requests but is not engaged in a prearranged ride, the transportation network company driver shall have primary automobile liability insurance in the amount of at least Fifty Thousand Dollars ($50,000.00) for death and bodily injury per person, One Hundred Thousand Dollars ($100,000.00) for death and bodily injury per incident, and Twenty-five Thousand Dollars ($25,000.00) for property damage.
(ii) The coverage requirements of this paragraph (b) may be satisfied by any of the following:
1. Automobile insurance maintained by the transportation network company driver; or
2. Automobile insurance maintained by the transportation network company; or
3. Any combination of items 1 and 2.
(c) (i) While a transportation network company driver is engaged in a prearranged ride the transportation network company driver shall have primary automobile liability insurance that provides at least One Million Dollars ($1,000,000.00) for death, bodily injury and property damage.
(ii) The coverage requirements of this paragraph (c) may be satisfied by any of the following:
1. Automobile insurance maintained by the transportation network company driver; or
2. Automobile insurance maintained by the transportation network company; or
3. Any combination of items 1 and 2.
(d) If insurance maintained by driver in paragraphs (b) or (c) has lapsed or does not provide the required coverage, insurance maintained by a transportation network company shall provide the coverage required by this section, beginning with the first dollar of a claim and the insurer shall have the duty to defend such claim.
(e) Coverage under an automobile insurance policy maintained by the transportation network company shall not be dependent on a personal automobile insurer first denying a claim nor shall a personal automobile insurance policy be required to first deny a claim.
(f) Insurance required by this section may be placed with an insurer licensed to do business in Mississippi, or with a surplus lines insurer eligible under Sections 83-21-17 through 83-21-31.
(g) Insurance satisfying the requirements of this section shall be deemed to satisfy the financial responsibility requirement for a motor vehicle under the Mississippi Motor Vehicle Safety-Responsibility Law, Sections 63-15-1 et seq.
(h) A transportation network company driver shall carry proof of coverage satisfying paragraphs (b) and (c) of this section with him or her at all times during his or her use of a vehicle in connection with a transportation network company's digital network. In the event of an accident, a transportation network company driver shall provide this insurance coverage information to the directly interested parties, automobile insurers and investigating police officers, upon request in accordance with Section 63-15-4. Upon such request, a transportation network company driver shall also disclose to directly interested parties, automobile insurers, and investigating police officers, whether he or she was logged on to the transportation network company's digital network or on a prearranged ride at the time of an accident.
SECTION 9. (1) The transportation network company shall disclose in writing to Transportation network company drivers the following before they are allowed to accept a request for a prearranged ride on the transportation network company's digital
network:
(a) The insurance coverage, including the types of coverage and the limits for each coverage, 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
(b) That the transportation network company driver's own automobile insurance policy might not provide any coverage while the driver is logged on to the transportation network company's digital network and is available to receive transportation requests or is engaged in a prearranged ride, depending on its terms.
SECTION 10. (1) Insurers that write automobile insurance in Mississippi may exclude any and all coverage afforded under the policy issued to an owner or operator of a personal vehicle for any loss or injury that occurs while a driver is logged on to a transportation network company's digital network or while a driver provides a prearranged ride. This right to exclude all coverage may apply to any coverage included in an automobile insurance policy including, but not limited to:
(a) Liability coverage for bodily injury and property damage;
(b) Uninsured and underinsured motorist coverage;
(c) Medical payments coverage;
(d) Comprehensive physical damage coverage; and
(e) Collision physical damage coverage.
Such exclusions shall apply notwithstanding any requirement under the Mississippi Motor Vehicle Safety-Responsibility Law, Section 63-15-1 et seq. Nothing in this section implies or requires that a personal automobile insurance policy provide coverage while the driver is logged on to the transportation network company's digital network, while the driver is engaged in a prearranged ride or while the driver otherwise uses a vehicle to transport passengers for compensation. Nothing shall be deemed to preclude an insurer from providing coverage for the transportation network company driver's vehicle, if it so chose to do so by contract or endorsement.
(2) Automobile insurers that exclude the coverage described in Section 8 of this act shall have no duty to defend or indemnify any claim expressly excluded thereunder. Nothing in this chapter shall be deemed to invalidate or limit an exclusion contained in a policy including any policy in use or approved for use in Mississippi prior to July 1, 2016, that excludes coverage for vehicles used to carry persons or property for a charge or available for hire by the public. An automobile insurer that defends or indemnifies a claim against a driver that is excluded under the terms of its policy, shall have a right of contribution against other insurers that provide automobile insurance to the same driver in satisfaction of the coverage requirements of Section 8 of this act at the time of loss.
(3) In a claims coverage investigation, transportation network companies and any insurer potentially providing coverage under Section 8 of this act shall cooperate to facilitate the exchange of relevant information with directly involved parties and any insurer of the transportation network company driver if applicable, including the precise times that a transportation network company driver logged on and off of the transportation network company's digital network in the twelve (12) hour period immediately preceding and in the twelve (12) hour period immediately following the accident and disclose to one another a clear description of the coverage, exclusions and limits provided under any automobile insurance maintained under Section 8 of this act.
SECTION 11. Drivers shall be deemed independent contractors and not employees of the transportation network company if all of the following conditions are met:
(a) The transportation network company does not prescribe specific hours during which a transportation network company driver must be logged into the transportation network company's digital platform;
(b) The transportation network company imposes no restrictions on the transportation network company driver's ability to utilize digital platforms from other transportation network companies;
(c) The transportation network company does not assign a transportation network company driver a particular territory in which to operate;
(d) The transportation network company does not restrict a transportation network company driver from engaging in any other occupation or business; and
(e) The transportation network company and transportation network company driver agree in writing that the driver is an independent contractor of the transportation network company.
SECTION 12. (1) The transportation network company shall implement a zero tolerance policy regarding a transportation network company driver's activities while accessing the transportation network company's digital platform. The zero tolerance policy shall address the use of drugs or alcohol while a transportation network company driver is providing prearranged rides or is logged into the transportation network company's digital network but is not providing prearranged rides. The transportation network company shall provide notice of this policy on its website, as well as procedures to report a complaint about a driver with whom a rider was matched and whom the rider reasonably suspects was under the influence of drugs or alcohol during the course of the trip.
(2) Upon receipt of such rider complaint alleging a violation of the zero tolerance policy, the transportation network company shall suspend such transportation network company driver's access to the transportation network company's digital platform as soon as possible, and shall conduct an investigation into the reported incident. The suspension shall last the duration of the investigation.
(3) The transportation network company shall maintain records relevant to the enforcement of this requirement for a period of at least two (2) years from the date that a rider complaint is received by the transportation network company.
SECTION 13. (1) Before allowing an individual to accept trip requests through a transportation network company's digital platform:
(a) The individual shall submit an application to the transportation network company, which includes information regarding his or her address, age, driver's license, motor vehicle registration, automobile liability insurance, and other information required by the transportation network company;
(b) The transportation network company shall conduct, or have a third party conduct, a local and national criminal background check for each applicant that shall include:
(i) Multi-state/multi-jurisdiction criminal records locator or other similar commercial nationwide database with validation or primary source search; and
(ii) United States Department of Justice National Sex Offender Public Website;
(c) The transportation network company shall review, or have a third party review, a driving history research report for such individual.
(2) The transportation network company shall not permit an individual to act as a transportation network company driver on its digital platform who:
(a) Has had more than three (3) moving violations in the prior three-year period, or one (1) major violation in the prior three-year period, including, attempting to evade the police, reckless driving, or driving on a suspended or revoked license;
(b) Has been convicted, within the past seven (7) years, of
(i) Any felony;
(ii) Misdemeanor driving under the influence, reckless driving, hit and run, or any other driving-related offense or any misdemeanor violent offense or sexual offense;
(iii) More than three (3) misdemeanors of any kind;
(c) Is a match in the United States Department of Justice National Sex Offender Public Website;
(d) Does not possess a valid driver's license;
(e) Does not possess proof of registration for the motor vehicle used to provide prearranged rides;
(f) Does not possess proof of automobile liability insurance for the motor vehicle used to provide prearranged rides; or
(g) Is not at least nineteen (19) years of age.
SECTION 14. A transportation network company driver shall not solicit or accept street hails.
SECTION 15. The transportation network company shall adopt a policy prohibiting solicitation or acceptance of cash payments from riders and notify transportation network company drivers of such policy. Transportation network company drivers shall not solicit or accept cash payments from riders.
SECTION 16. (1) The transportation network company shall adopt a policy of nondiscrimination on the basis of destination, race, color, national origin, religious belief or affiliation, sex, disability, age, sexual orientation, or gender identity with respect to riders and potential riders and notify transportation network company drivers of such policy.
(2) Transportation network company drivers shall comply with all applicable laws regarding nondiscrimination against riders or potential riders on the basis of destination, race, color, national origin, religious belief or affiliation, sex, disability, age, sexual orientation, or gender identity.
(3) Transportation network company drivers shall comply with all applicable laws relating to accommodation of service animals.
(4) A transportation network company shall not impose additional charges for providing services to persons with physical disabilities because of those disabilities.
SECTION 17. A transportation network company shall maintain the following customer records:
(a) Individual trip records for at least one (1) year from the date each trip was provided; and
(b) Individual records of transportation network company driver customers at least until the one (1) year anniversary of the date on which a transportation network company driver's customer relationship with the transportation network company has ended.
SECTION 18. (1) The commissioner may, from time to time, make an examination into the affairs of any transportation network company licensed under this chapter when the commissioner deems prudent. The expenses of such examination shall be borne and paid by the transportation network company under examination.
(2) Documents, materials or other information, including, but not limited to, all working papers, and copies thereof, created, produced or obtained by or disclosed to the commissioner or any other person in the course of an examination made under this chapter shall be confidential by law and privileged, and shall not be subject to the Mississippi Public Records Act of 1983. The commissioner is authorized to use the documents, materials or other information in the furtherance of any regulatory or legal action brought as part of the commissioner's official duties.
(3) In order to assist in the performance of the commissioner's duties, the commissioner may share documents, materials or other information, including the confidential and privileged documents, materials or information subject to subsection (1) of this section, with other state, federal and international regulatory agencies, and with state, federal and international law enforcement authorities, provided that the recipient agrees to maintain the confidentiality and privileged status of the document, material, communication or other information. The commissioner may enter into agreements governing the sharing and use of information consistent with this paragraph.
(4) No waiver of any applicable privilege or claim of confidentiality in the documents, materials or information shall occur as a result of disclosure to the commissioner under this section or as a result of sharing as authorized in subsection (3) of this section.
(5) In response to a specific complaint against any transportation network company driver or transportation network company, the Department is authorized to inspect records held by the transportation network company that are necessary to investigate and resolve the complaint.
SECTION 19. Notwithstanding any other provision of law, transportation network companies and transportation network company drivers are governed exclusively by this chapter and any rules promulgated by the commissioner consistent with this chapter. A municipality or other local entity may not:
(a) Impose a tax on, or require a license for, a transportation network company, a transportation network company driver, or a vehicle used by a transportation network company driver where such tax or licenses relates to providing prearranged rides;
(b) Require a transportation network company driver to obtain a business license or any other type of similar authorization to operate within the jurisdiction; or
(c) Subject a transportation network company to the municipality or other local entity's rate, entry, operational or other requirements.
SECTION 20. The commissioner may adopt rules and regulations necessary to ensure compliance with this chapter.
SECTION 21. Section 77-7-7, Mississippi Code of 1972, is amended as follows:
77-7-7. Whenever used in this chapter unless expressly stated otherwise:
(a) The term "person" means individual, firm, copartnership, corporation, company, association or joint-stock association, and includes any trustee, receiver, assignee or personal representative thereof.
(b) The term "commission" means the Public Service Commission of the State of Mississippi.
(c) The term "highway" means every public highway or place of whatever nature open to the use of the public for purposes of vehicle travel in this state, including the streets and alleys in towns and cities.
(d) The term "motor vehicle" and "vehicle" means any vehicle, machine, tractor, trailer or semitrailer propelled or drawn by mechanical power and used upon the highways in the transportation of passengers or property; such term, however, does not include any vehicle, locomotive or car operated exclusively on a rail or rails.
(e) The term "common carrier by motor vehicle" means any person who or which undertakes, whether directly or by a lease or any other arrangement, to transport passengers or household goods, except transportation network company drivers as defined in Section 1 of this act.
(f) The term "contract carrier by motor vehicle" means any person, not included under subsection (e) of this section, who or which, under special and individual contracts or agreements, and whether directly or by a lease or any other arrangement, transports passengers or household goods, except transportation network company drivers as defined in Section 1 of this act.
(g) The term "restricted motor carrier" means all carriers of property, except household goods, by motor vehicle for compensation, except transportation network company drivers as defined in Section 1 of this act.
(h) The "services" and "transportation" to which this chapter applies include all vehicles operated by, for or in the interest of any motor carrier irrespective of ownership or contract, express or implied, together with all facilities and property operated or controlled by any such carrier or carriers and used in the transportation of passengers or property or in the performance of any service in connection therewith.
(i) The term "certificate" means a certificate of public convenience and necessity issued by the commission to common carriers by motor vehicle and restricted common carriers by motor vehicle under this chapter.
(j) The term "permit" means a permit issued by the commission to contract carriers by motor vehicle under this chapter.
(k) The term "interstate permit" means a permit issued under the terms of this chapter to the holder of a certificate of public convenience and necessity, a permit, or other operating authority from the Interstate Commerce Commission.
(l) The term "owner" or "operator" and "owner and operator" means any individual, firm, copartnership, corporation, company, association or joint-stock association, and includes any trustee, receiver, assignee or personal representative thereof, to whom or to which a certificate of convenience and necessity or permit or interstate permit has been issued by the Public Service Commission.
(m) The term "vanpooling" means a nonprofit arrangement entered into to provide for the transportation of persons to and from their places of employment utilizing a motor vehicle manufactured primarily for the transporting of not less than eight (8) nor more than fifteen (15) people, and where the costs of operating said vehicle, including reasonable vehicle depreciation costs, are paid for by those people utilizing such arrangement.
(n) The term "gross vehicle weight rating (GVWR)" means the value specified by the manufacturer as the loaded weight of a single motor vehicle.
(o) The term "gross combination weight rating (GCWR)" means the value specified by the manufacturer as the loaded weight of a combination (articulated) motor vehicle. In the absence of a value specified by the manufacturer, GCWR will be determined by adding the GVWR of the power unit and the total weight of the towed unit and any load thereon.
SECTION 22. Sections 1 through 20 of this act shall be codified as a new chapter in Title 77, Mississippi Code of 1972.
SECTION 23. This act shall take effect and be in force from and after July 1, 2016.