November 12, 2014, Introduced by Reps. Kelly and Nesbitt and referred to the Committee on Energy 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; to prescribe penalties and provide remedies;
and to repeal acts and parts of acts.
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) "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.
(e) "Transportation network company driver" means an
individual who uses his or her 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 attesting to
all of the following:
(a) That the transportation network company maintains a
primary liability insurance policy covering each transportation
network company driver for incidents involving the transportation
network company driver at all times during a prearranged ride and
covering a minimum of $1,000,000.00 per incident. The
transportation network company or transportation network company
driver shall provide documentation of the insurance coverage
required by this subdivision to the department.
(b) That contingent coverage of at least $50,000.00 per person
for bodily injury, at least $100,000.00 for bodily injury to 2 or
more persons per accident, and at least $30,000.00 for property
damage per accident is provided during the time that a
transportation network company driver is providing transportation
services. 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.
(c) That contingent coverage of at least $20,000.00 per person
for bodily injury, at least $40,000.00 for bodily injury to 2 or
more persons per accident, and at least $10,000.00 for property
damage per accident 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
transportation services. 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 personal protection insurance and property protection
insurance are in effect as required by chapter 31 of the insurance
code of 1956, 1956 PA 218, MCL 500.3101 to 500.3179.
(e) That each transportation network company driver is at
least 21 years of age and, except as provided in subdivision (f),
maintains a valid operator's license issued under the Michigan
vehicle code, 1949 PA 300, MCL 257.1 to 257.923.
(f) 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 vehicle has a capacity of 9 or more passengers.
(g) 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 of any of the following:
(i) Driving under the influence of drugs or alcohol, if the
conviction occurred within the 7 years prior to the date the
application is submitted.
(ii) Use of a motor vehicle to commit a felony.
(iii) A crime involving property damage.
(iv) Fraud.
(v) A sexual offense.
(vi) Theft.
(vii) An act of violence.
(viii) An act of terror.
(h) That each transportation network company driver has
submitted a driving history report to the transportation network
company before providing 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.
(i) 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.
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, illuminated, or
otherwise visible in darkness.
(c) The signage or emblem shall sufficiently identify a
vehicle as being associated with the transportation network company
for which the vehicle is transporting passengers.
(2) A transportation network company shall do all of the
following:
(a) Provide a customer support telephone number and electronic
mail address on its digital network or website for rider inquiries.
(b) Refrain from disclosing to a third party any personal
information regarding a user of the transportation network
company's digital network without the user's consent.
(c) 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.
(d) Provide a receipt through electronic mail or text message
to a passenger upon completion of a prearranged ride.
(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.
(6) Both of the following apply to an insurance policy
described in section 3(a) to (d):
(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) A transportation network company shall maintain a roster
of transportation network company drivers, categorized by
geographic location, used by the transportation network company and
make the roster available upon request to the department.
(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.
Enacting section 1. The limousine transportation act, 1990 PA
271, MCL 257.1901 to 257.1939, is repealed.