Regular Session 2015-2016 Senate Bill 0763 P.N. 0810

PRINTER'S NO. 810

THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

No.

763

Session of

2015

INTRODUCED BY McGARRIGLE, APRIL 23, 2015

REFERRED TO CONSUMER PROTECTION AND PROFESSIONAL LICENSURE,

APRIL 23, 2015

AN ACT

Amending Titles 53 (Municipalities Generally) and 66 (Public

Utilities) of the Pennsylvania Consolidated Statutes, in

general provisions, further providing for definitions; in

Public Utility Commission, further providing for commission

to cooperate with other departments; in powers and duties,

further providing for assessment for regulatory expenses upon

public utilities and for power of commission to require

insurance; and providing for transportation network services.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. The definitions of "call or demand service,"

"driver's certificate" and "Philadelphia Taxicab and Limousine

Regulatory Fund" in section 5701 of Title 53 of the Pennsylvania

Consolidated Statutes are amended and the section is amended by

adding definitions to read:

§ 5701. Definitions.

The following words and phrases when used in this chapter

shall have the meanings given to them in this section unless the

context clearly indicates otherwise:

* * *

"Call or demand service" or "taxicab service." Local common

carrier service for passengers, rendered on either an exclusive

or nonexclusive basis, where the service is characterized by the

fact that passengers normally hire the vehicle and its driver

[either] by telephone call [or by hail], hail or digital network

or [both] any combination thereof. The term does not include

limousine service or transportation network services.

"Driver's certificate." A certificate or permit to drive a

taxicab [or], limousine or transportation network company

vehicle issued pursuant to section 5706 (relating to driver

certification program).

* * *

"Philadelphia Taxicab [and], Limousine and Transportation

Network Services Regulatory Fund" or "regulatory fund." A

special fund in the State Treasury established by section 5708

(relating to funds) for fulfilling the purposes of this chapter

to regulate taxicabs [and], limousines and transportation

network services in a city of the first class.

* * *

"Transportation network company." A company that uses a

digital network to connect passengers with transportation

network company drivers for the purpose of transportation. The

term does not include taxicab service or a company providing

transportation through a ridesharing arrangement under the act

of December 14, 1982 (P.L.1211, No.279), entitled "An act

providing for ridesharing arrangements and providing that

certain laws shall be inapplicable to ridesharing arrangements."

"Transportation network company driver." An individual who

uses the individual's personal vehicle to provide a ride for a

passenger arranged electronically through a transportation

network company.

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"Transportation network company vehicle." A vehicle used by

a transportation network company driver to provide

transportation network services.

"Transportation network service." A service for matching

passengers and drivers electronically in advance and rendered on

an exclusive basis, where the service is characterized by an

individual offering a ride to a passenger in the individual's

personal vehicle through a digital network. The term does not

include taxicab service or a ridesharing arrangement under the

act of December 14, 1982 (P.L.1211, No.279), entitled "An act

providing for ridesharing arrangements and providing that

certain laws shall be inapplicable to ridesharing arrangements."

* * *

Section 2. Sections 5701.1, 5702(a) and (b)(1), 5703, 5704,

5705(b) and 5706(a) and (b) of Title 53 are amended to read:

§ 5701.1. Legislative findings.

The General Assembly finds and declares as follows:

(1) The health, safety and general welfare of the people

of this Commonwealth are directly dependent upon the

continual encouragement, development, growth and expansion of

business, industry, commerce and tourism.

(2) Unemployment, the spread of poverty and the heavy

burden of public assistance and unemployment compensation can

be avoided by the promotion, attraction, stimulation,

development and expansion of business, industry, commerce and

tourism in this Commonwealth through the development of a

clean, safe, reliable and well-regulated taxicab [and],

limousine and transportation network company industry locally

regulated by parking authorities in cities of the first

class.

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(3) Due to the size, total population, population

density and volume of both tourism and commerce of a city of

the first class, it may be more efficient to regulate the

taxicab [and], limousine and transportation network service

industries through an agency of the Commonwealth with local

focus than an agency with diverse Statewide regulatory

duties. Well-regulated local focus on improving those

industries can be an important factor in the continual

encouragement, development, attraction, stimulation, growth

and expansion of business, industry, commerce and tourism

within a city of the first class, the surrounding counties

and this Commonwealth as a whole.

§ 5702. Advisory committee.

(a) Establishment.--There is hereby established an advisory

committee to be known as the City of the First Class Taxicab and

Limousine Advisory Committee. The authority shall submit to the

advisory committee issues and questions for their consideration

regarding the regulation, enforcement, compliance and operation

of taxicabs [and], limousines and transportation network

companies in cities of the first class. The advisory committee

may thoroughly consider the questions and issues submitted by

the authority and may prepare and transmit to the authority and

the public written comments. The advisory committee may submit

suggestions and proposals to the authority in writing on topics

considered important by a majority of the members. All actions

of the advisory committee shall be considered strictly advisory,

and the authority shall give careful and due consideration to

the comments and proposals of the advisory committee.

(b) Membership.--

(1) The advisory committee shall consist of the

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following members:

(i) [Ten] Eleven members appointed by the chairman

of the authority or his designee as follows:

(A) One taxi driver.

(B) One medallion owner.

(D) One member of the public who utilizes

taxicabs [or], limousines or transportation network

services.

(E) One limousine owner.

(F) One representative of the hospitality

industry from a list of five nominees assembled by

the Philadelphia Convention and Visitors Bureau.

(G) One resident of a second class A county.

(H) One resident of a third class county.

(I) One representative of the Philadelphia

International Airport.

(J) One representative of a major train station

in a city of the first class.

(K) One representative of a transportation

network company.

(ii) One member appointed by the mayor of a city of

the first class or his designee.

(iii) One member appointed by the Public Utility

Commission.

* * *

§ 5703. Rates.

(a) Rates to be just and reasonable.--Every rate made for

authority-certified taxicab, limousine [or], medallion taxicab

service or a transportation network company shall be just and

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reasonable and in conformity with regulations or orders of the

authority.

(b) Tariffs.--Under regulations as the authority may

prescribe, every taxicab [or], limousine service or

transportation network company shall file with the authority,

within the time and in the form as the authority may designate,

tariffs showing all rates established by it and collected or

enforced or to be collected or enforced within cities of the

first class. Every taxicab [or], limousine service or

transportation network company shall keep copies of tariffs open

to public inspection under rules and regulations as the

authority may prescribe. Upon request, the taxicab [or],

limousine service or transportation network company shall make

available at least one copy of any rate filing at a convenient

location and for a reasonable length of time within a city of

the first class for inspection and study by customers.

service or transportation network company shall, directly or

indirectly, by any device whatsoever or in any way, demand or

receive from any person, corporation or municipal corporation a

greater or lesser rate for any service rendered or to be

rendered by the taxicab [or], limousine service or

transportation network company than that specified in the

tariffs of the taxicab [or], limousine service or transportation

network company.

(d) Discrimination in rates.--No taxicab [or], limousine

service or transportation network company shall make or grant

any unreasonable preference or advantage to any person,

corporation or municipal corporation or subject any person,

corporation or municipal corporation to any unreasonable

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prejudice or disadvantage concerning its rate. No taxicab [or],

limousine service or transportation network company shall

establish or maintain any unreasonable difference as to rates.

This subsection shall not prohibit the establishment of

reasonable zone or group systems or classifications of rates.

(e) Voluntary changes in rates.--

(1) Unless the authority otherwise orders, no taxicab

[or], limousine service or transportation network company

shall make any change in any existing and duly established

rate except after 60 days' notice to the authority which

shall plainly state the changes proposed to be made in the

rates then in force and the time when the changed rates will

go into effect. The taxicab [or], limousine service or

transportation network company shall also give notice of the

proposed changes to other interested persons as the

authority, in its discretion, may direct. The notices

regarding the proposed changes which are provided shall be in

plain, understandable language as the authority prescribes.

All proposed changes shall be shown by filing new tariffs or

supplements to existing tariffs filed and in force at the

time. The authority, for good cause shown, may allow changes

in rates without requiring the 60 days' notice under

conditions as it may prescribe.

(2) Whenever there is filed with the authority by any

taxicab [or], limousine service or transportation network

company any tariff stating a new rate, the authority may,

either upon complaint or upon its own motion and upon

reasonable notice, conduct a hearing concerning the

lawfulness of the rate. Pending the hearing and its outcome,

the authority, upon filing the tariff and delivering to the

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taxicab [or], limousine service or transportation network

company affected a statement in writing of its reasons may,

at any time before it becomes effective, suspend the

operation of the rate for a period not longer than nine

months from the time it would otherwise become effective. The

rate in force when the tariff stating the new rate was filed

shall continue in force during the period of suspension

unless the authority shall establish a temporary rate. The

authority shall consider the effect of the suspension in

finally determining and prescribing the rates to be charged

and collected by the taxicab [or], limousine service or

transportation network company.

(3) If, after the hearing conducted pursuant to

paragraph (2), the authority finds any rate to be unjust or

unreasonable or in any way in violation of law, it shall

determine the just and reasonable rate to be charged or

applied by the taxicab [or], limousine service or

transportation network company for the service in question

and shall fix the rate by order to be served upon the taxicab

[or], limousine service or transportation network company.

The rate shall then be observed until changed.

(f) Temporary rates.--The authority may, in any proceeding

involving the rates of a taxicab [or], limousine service or

transportation network company, after reasonable notice and

hearing and, if the public interest requires, immediately fix,

determine and prescribe temporary rates to be charged by a

taxicab [or], limousine service or transportation network

company, pending the final determination of the rate proceeding.

(g) Fair return.--In fixing any rate of a taxicab [or],

limousine service or transportation network company engaged

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exclusively as a common carrier by motor vehicle, the authority

may fix the fair return by relating the fair and reasonable

operating expenses, depreciation, taxes and other costs of

furnishing service to operating revenues.

(h) Refunds.--If, in any proceeding involving rates, the

authority determines that any rate received by a taxicab [or],

limousine service or transportation network company was unjust

or unreasonable or was in violation of any regulation or order

of the authority or was in excess of the applicable rate

contained in an existing and effective tariff of the taxicab

[or], limousine service or transportation network company, the

authority shall have the power to make an order requiring the

public utility to refund the amount of any excess paid by any

patron.

§ 5704. Power of authority to require insurance.

The authority may, by regulation or order, prescribe for a

taxicab [or], limousine service or transportation network

company requirements as it may deem necessary for the protection

of persons or property of their patrons and the public,

including the filing of surety bonds, the carrying of insurance

or the qualifications and conditions under which carriers may

act as self-insurers with respect to the requirements.

§ 5705. Contested complaints.

* * *

(b) Commencement of complaints.--Authority enforcement

officers, Pennsylvania Public Utility Commission enforcement

officers and police officers or licensing officials within

cities of the first class may commence and prosecute the

following:

(1) A complaint which is brought before the authority

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pursuant to this chapter and authority regulations applicable

to taxicab [or], limousine service or transportation network

company operations in cities of the first class.

(2) A complaint which:

(i) arises out of service to or from a city of the

first class against a taxicab [or], limousine service or

transportation network company operation not certified to

provide service between points within a city of the first

class; and

(ii) is brought before the commission to enforce

commission regulations for taxicab [or], limousine

service or transportation network company.

* * *

§ 5706. Driver certification program.

(a) General rule.--The authority shall provide for the

establishment of a driver certification program for drivers of

taxicabs [and], limousines or transportation network company

vehicles within cities of the first class. Standards for fitness

of all drivers shall be established under such rules and

regulations as the authority may prescribe. The authority may

revoke or suspend a driver's certificate upon a finding that the

individual is not fit to operate a taxicab [or], limousine or

transportation network company vehicle, as applicable. Each

applicant for a driver's certificate shall pay a fee in an

amount to be determined pursuant to the requirements of section

5710 (relating to fees). Upon approval, a picture driver's

certificate will be issued to an applicant. No individual shall

operate a taxicab [or], limousine or transportation network

company vehicle at any time unless the individual is certified

as a driver by the authority. Each certified driver shall carry

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and display in full view a driver's certificate at all times of

operation of a taxicab [or], limousine or a transportation

network company vehicle. The authority may establish orders or

regulations which designate additional requirements governing

the certification of drivers and the operation of taxicabs [or],

limousines or transportation network company vehicles by

drivers, including, but not limited to, dress codes for drivers.

* * *

(b) Violations.--Operating a taxicab or limousine or

providing transportation network company services without a

driver's certificate or authorizing or permitting the operation

of a taxicab [or], limousine or transportation network company

service by a driver who is not certified as a driver by the

authority within cities of the first class is a nontraffic

summary offense in the first instance and a misdemeanor of the

third degree for each offense thereafter. The authority may, by

regulation, provide for suspension and revocation of drivers'

certificates for violations of this chapter and authority

regulations.

* * *

Section 3. Section 5707(c) of Title 53 is amended by adding

a paragraph to read:

§ 5707. Budget and assessments.

* * *

(4) The following relate to assessments for

transportation network companies:

(i) A transportation network company utility group

shall be comprised of each transportation network company

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authorized by the authority under section 5751 (relating

to certificate of public convenience required).

Transportation network company vehicles approved by the

authority to provide transportation network company

services under section 5752 (relating to transportation

network company vehicles) may not be considered part of

the transportation network group for assessment purposes,

but may be required to pay fees as provided in section

5710.

(ii) On or before March 31 of each year, a

transportation network company shall file with the

authority a statement under oath estimating the number of

vehicles the transportation network company estimates to

have in service in the next fiscal year.

(iii) The portion of the total assessment allocated

to the transportation network company utility group shall

be divided by the number of transportation network

company vehicles estimated by the authority to be in

service during the next fiscal year and the authority to

be in service during the next fiscal year and the

quotient shall be the transportation network company

assessment. The transportation network company assessment

shall be applied to each transportation network company

in the transportation network company utility group and

shall be paid by the transportation network company.

(iv) The authority may not make an additional

assessment against a vehicle substituted for another

already in transportation network company service during

the fiscal year and already subject to assessment as

provided in subparagraph (iii). The authority may, by

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order or regulation, provide for reduced assessments for

transportation network companies first entering service

after the initiation of the fiscal year.

(v) The transportation network company assessment

shall be determined by the authority.

* * *

Section 4. Section 5708(a) of Title 53 is amended to read:

§ 5708. Funds.

(a) Regulatory Fund.--The Philadelphia Taxicab [and],

Limousine and Transportation Network Services Regulatory Fund is

established as a special fund in the State Treasury. A balance

remaining in the regulatory fund and previously held by the

authority shall be transferred to the special fund in the State

Treasury upon the effective date of section 5710 (relating to

fees). The regulatory fund shall be the primary operating fund

of the authority for the administration and enforcement of this

chapter and shall be administered as follows:

(1) Except as provided in subsection (a.1), the

assessments, fees, penalties and other revenues, interest

earned by the regulatory fund, refunds and repayments related

to the administration and enforcement of this chapter shall

be deposited into the regulatory fund.

(2) Money deposited in the regulatory fund is reserved

for the use of the authority and shall be transferred in

equal amounts each month by the State Treasurer to the

authority for the purposes of administering and enforcing

this chapter.

(3) Upon the effective date of this paragraph, the money

in the regulatory fund shall be held and maintained as

provided in paragraph (2).

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* * *

Section 5. Chapter 57 of Title 53 is amended by adding a

subchapter to read:

SUBCHAPTER D

TRANSPORTATION NETWORK SERVICES

Sec.

5751. Certificate of public convenience required.

5752. Transportation network company vehicles.

5753. Insurance.

5754. Authority inspection of records.

5755. Power of authority.

5756. Regulations.

5757. Criminal penalties.

5758. Civil penalties.

§ 5751. Certificate of public convenience required.

(a) General rule.--In order to operate a transportation

network company within a city of the first class, the

transportation network company must have a certificate of public

convenience issued by the authority under section 5755 (relating

to power of authority). The authority may grant a certificate of

public convenience to provide transportation network service if

the authority determines that the applicant is capable of

providing safe, adequate, lawful and dependable service to the

public. The authority may by regulation define categories of

transportation network services. The authority may separately

grant certificates of public convenience for each category of

transportation network services and specify the rights

associated with the certificates of public convenience by

category of transportation network services.

(b) Scope of transportation network services.--Other than as

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provided for in subsection (c), a transportation network company

vehicle may transport persons and their baggage:

(1) Between points in the city of the first class for

which its certificate is issued.

(2) From any point in the city of the first class for

which its certificate is issued to any point in this

Commonwealth.

(3) From any point in this Commonwealth to any point in

the city of the first class for which its certificate is

issued.

(4) From any point in the city of the first class for

which its certificate is issued to any point outside this

Commonwealth as part of a continuous trip.

transportation network company vehicle may transport persons and

their baggage to or from any airport, railroad station or hotel

located in whole or in part in a city of the first class. No

transportation network service driver may use taxi stands.

(d) Commission transportation network company certificate

holders.--A transportation network company vehicle which is not

authorized by a certificate of public convenience issued by the

authority to provide transportation network service in a city of

the first class, but which is operated by the holder of a

certificate of public convenience from the commission

authorizing transportation network service elsewhere in this

Commonwealth, may transport persons and their baggage to a city

of the first class upon advance reservation and in accordance

with the service authorized under its certificate of public

convenience.

(e) Prohibited commission transportation network service.--A

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vehicle authorized by a certificate of public convenience issued

by the commission to provide transportation network service may

not transport persons and their baggage from any airport,

railroad station or hotel located in whole or in part in a city

of the first class.

(f) Compliance.--A transportation network company shall be

responsible for ensuring compliance with all of the rules and

regulations authorized by this section, including, but not

limited to, programming digital networks and applications to

comply with this section and all relevant parts of this title.

(g) Enforcement.--

(1) The provisions of this subchapter and the rules and

regulations promulgated by the authority under this

subchapter shall be enforced within cities of the first class

by authority personnel.

(2) The Pennsylvania Public Utility Commission may

initiate actions before the authority.

(h) Restrictions.--Certificates issued under this subchapter

shall be nontransferable unless otherwise approved by the

authority.

(i) Penalties involving certified transportation network

companies.--Providing transportation network services in

violation of this subchapter and authority regulations with

regard to transportation network services in a city of the first

class or authorizing or permitting such operation is a

nontraffic summary offense. Offenders may also be subject to

civil penalties under section 5758 (relating to civil

penalties).

(j) Unauthorized vehicles.--Operating an unauthorized

vehicle by a transportation network company or giving the

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appearance of offering transportation network services with an

unauthorized vehicle, without first having received a

certificate of public convenience, is a nontraffic summary

offense in the first instance and a misdemeanor of the third

degree for a second or subsequent offense. The owner and the

driver of a vehicle being operated by a transportation network

company without a certificate of public convenience shall be

subject to civil penalties under section 5758. Civil penalties

which have been assessed and collected shall be deposited into

the fund.

(k) Confiscation and impoundment of vehicles.--

(1) In addition to penalties provided for in subsections

(i) and (j), the authority may confiscate and impound

vehicles and equipment that are utilized to provide

transportation network services without a proper certificate

of public convenience in a city of the first class or which

are in violation of regulations of the authority. Upon

satisfaction of all penalties imposed and all outstanding

fines assessed against the registered owner or operator of

the confiscated vehicle and equipment and payment of the

authority's costs associated with confiscation and

impoundment, the vehicle and equipment shall be returned to

its registered owner or registered lienholder.

(2) (i) If the registered owner or operator does not

satisfy all penalties imposed and outstanding fines

assessed within 45 days of the date of impoundment, the

authority may publicly auction all confiscated property

of the registered owner or operator.

(ii) The authority shall, at least 30 days before

the date of the public auction, provide notice by regular

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mail to the registered owner and any registered

lienholder of the public auction of confiscated vehicles

and equipment. The notice required under this

subparagraph may be provided within the period of 45 days

of the date of impoundment.

(3) The authority shall apply the proceeds from the sale

of all confiscated property in the following order:

(i) To the costs of the authority associated with

the confiscation, impoundment and auction.

(ii) To all penalties imposed and all outstanding

fines assessed against the registered owner and operator

of the confiscated property.

(iii) Except as provided in paragraph (4), to the

lien of any registered lienholder of the confiscated

property upon demand.

(iv) Except as provided in paragraph (4), to the

registered owner of the confiscated property upon demand.

(4) When not claimed by any registered owner or

registered lienholder within one year of the auction date,

any proceeds that remain after the provisions of paragraph

(3) are applied, shall be deposited into the fund.

(l) Assessment.--After application of the proceeds from the

sale of confiscated property under subsection (k), the

uncompensated costs of the authority associated with the

confiscation, impoundment and auction and all outstanding

penalties imposed and all outstanding fines assessed against the

registered owner or operator of the confiscated property may be

assessed against the registered owner or operator of the

confiscated property as the authority may prescribe by

regulation.

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§ 5752. Transportation network company vehicles.

(a) Requirements.--

(1) A transportation network company vehicle shall be

inspected by the authority prior to being used to provide

transportation network services.

(2) The authority shall require, by order or regulation,

that a transportation network company vehicle within its

jurisdiction pursuant to this chapter submit to periodic

inspections by authority personnel to ensure that the vehicle

meets the requirements of this subchapter and authority

regulations.

(3) Authority inspection requirements for transportation

network company vehicles within the authority's jurisdiction

under this chapter shall be in addition to the vehicle

requirements set forth in 75 Pa.C.S. (relating to vehicles)

and may include vehicle age and mileage limitations.

Authority inspection and recording requirements shall be

established by regulation.

(4) (i) No transportation network company vehicle which

is more than eight years of age may continue in operation

as a transportation network company vehicle.

(ii) Notwithstanding subparagraph (i), the authority

may authorize the operation of antique vehicles in call

or demand service in such circumstances as the authority

deems appropriate.

(5) A transportation network company vehicle shall be

registered in this Commonwealth.

(6) A transportation network company vehicle shall be

registered exclusively to the transportation network driver

using the transportation network company vehicle.

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(7) A transportation network company vehicle shall be

identified by a permanent conspicuously placed marking on the

exterior of the transportation network company vehicle, which

shall identify the transportation network company vehicle as

a transportation network company vehicle through a unique

identification number to be determined by the authority.

(8) A transportation network company vehicle shall have

a unique license plate to distinguish it as a common carrier.

The Department of Transportation and the authority shall

cooperate in the issuance by the Department of Transportation

under the provisions of 75 Pa.C.S. (relating to vehicles), of

registration plates for vehicles used to provide

transportation network services, which will classify and

identify transportation network company vehicles operated

under certificates issued by the authority.

(b) Driver security devices.--A transportation network

company vehicle authorized to provide transportation network

services shall be equipped with such security devices as the

authority may, in its discretion, require by order or

regulation.

§ 5753. Insurance.

(a) General rule.--A transportation network company and

transportation network company driver shall comply with the

automobile liability insurance requirements of this section.

(b) Type of insurance required.--A transportation network

company shall maintain primary insurance that complies with 75

Pa.C.S. Ch. 17 (relating to financial responsibility) with

limits to be determined by the authority.

which the transportation network company driver opens the

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digital application used by a transportation network company to

connect transportation network company drivers and passengers

until the time at which the transportation network company

driver closes the application or the passenger safely exits the

vehicle, whichever is later.

(d) Transportation network company driver insurance.--

Notwithstanding any coverage held or maintained by the

transportation network company driver, the transportation

network company's insurance coverage required under this section

shall be the primary insurance for any and all claims arising

from incidents involving a transportation network company driver

while providing transportation network services.

(e) Filing with the authority.--A transportation network

company shall file with the authority a Form E, evidence of

motor carrier bodily injury and property damage liability

certificate of insurance, evidencing its primary commercial

insurance coverage and other coverage as required under

subsection (b) and compliance with 75 Pa.C.S. Ch. 17.

(f) Proof of insurance.--A transportation network driver

shall provide proof to the authority that the transportation

network driver's personal insurer has been made aware of the

driver's intention to operate a transportation network company

vehicle as a common carrier.

(g) Accidents generally.--In the case of an accident:

(1) A transportation network company driver shall

provide proof of the transportation network company's primary

insurance coverage. A hard copy of proof of the

transportation network company's primary commercial liability

insurance shall be kept in the transportation network company

driver's vehicle at all times.

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(2) (i) A transportation network company driver is

prohibited from presenting the driver's personal

insurance to any party as proof of insurance from the

time a transportation network company driver opens the

digital application used by a transportation network

company to connect transportation network company drivers

and passengers until the time at which the transportation

network company driver closes the application or the

passenger safely exits the vehicle, whichever is later.

(ii) A driver who violates this paragraph is subject

to penalties as prescribed by the authority.

§ 5754. Authority inspection of records.

(a) General rule.--Subject to reasonable confidentiality

obligations and applicable confidentiality laws, the authority

may inspect records to investigate compliance with the

requirements of this chapter and any regulations issued under

section 5756 (relating to regulations).

(b) Confidentiality.--Records disclosed to the commission

under this section shall not be subject to disclosure to a third

party by the commission, including through a request submitted

under the act of February 14, 2008 (P.L.6, No.3), known as the

Right-to-Know Law.

§ 5755. Power of authority.

(a) General rule.--In addition to the other powers conferred

upon the authority by other provisions of this title, the

authority may issue certificates of public convenience in

accordance with this subchapter.

(b) Application.--An application for a certificate of public

convenience shall be made to the authority in writing, be

verified by oath or affirmation, be in the form required by the

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authority and contain information required by the authority,

including proof of primary commercial insurance evidenced by a

Form E filed with the authority in such amounts as required by

the authority.

certificate of public convenience granted to an existing holder

or a new recipient for the operation of transportation network

services within a city of the first class.

§ 5756. Regulations.

The authority may prescribe such rules and regulations as it

deems necessary to administer and enforce the regulation of

transportation network services certified through the authority

under this chapter. The authority has the powers specified in

this section notwithstanding any other provision of law or of

the authority's articles of incorporation.

§ 5757. Criminal penalties.

For the purpose of this subchapter, any person or entity

convicted of:

(1) a summary offense shall be sentenced to pay a fine

of $500 and may be sentenced to a term of imprisonment not to

exceed 90 days, or both; or

(2) a misdemeanor shall be sentenced to pay a fine of

$2,500 and may be sentenced to a term of imprisonment not to

exceed one year, or both.

§ 5758. Civil penalties.

(a) General rule.--If any person or entity subject to this

subchapter:

(1) violates any of the provisions of this subchapter;

(2) commits an act prohibited under this subchapter;

(3) fails, omits, neglects or refuses to perform any

20150SB0763PN0810 - 23 -

duty enjoined upon it by this subchapter; or

(4) fails, omits, neglects or refuses to obey, observe

and comply with any regulation or final direction,

requirement, determination or order made by the authority or

to comply with any final judgment, order or decree made by

any court,

the person or entity shall forfeit and pay to the authority a

sum not exceeding $1,000 to be recovered by a complaint as

provided in section 5705(b) (relating to contested complaints).

In construing and enforcing the provisions of this section, the

violation, omission, failure, neglect or refusal of any officer,

agent or employee acting for or employed by the person or

corporation shall in every case be deemed to be the violation,

omission, failure, neglect or refusal of the person or

corporation.

(b) Continuing offenses.--

(1) Each and every day's continuance in the violation of

any regulation or final direction, requirement, determination

or order of the authority, or of any final judgment, order or

decree made by any court, shall be a separate and distinct

offense.

(2) If any interlocutory order of supersedeas or a

preliminary injunction be granted, no penalties shall be

incurred or collected for or on account of any act, matter or

thing done in violation of the final direction, requirement,

determination, order or decree so superseded or enjoined for

the period of time the order of supersedeas or injunction is

in force.

Section 6. The definitions of "common carrier" and "common

carrier by motor vehicle" introductory paragraph in section 102

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of Title 66 are amended and the section is amended by adding

definitions to read:

§ 102. Definitions.

Subject to additional definitions contained in subsequent

provisions of this part which are applicable to specific

provisions of this part, the following words and phrases when

used in this part shall have, unless the context clearly

indicates otherwise, the meanings given to them in this section:

* * *

"Common carrier." Any and all persons or corporations

holding out, offering, or undertaking, directly or indirectly,

service for compensation to the public for the transportation of

passengers or property, or both, or any class of passengers or

property, between points within this Commonwealth by, through,

over, above, or under land, water, or air, and shall include

forwarders[, but shall not include]. The term includes a

transportation network company, transportation network service

or transportation network company driver. The term does not

include contract carriers by motor vehicles, or brokers, or any

bona fide cooperative association transporting property

exclusively for the members of such association on a nonprofit

basis.

"Common carrier by motor vehicle." Any common carrier who or

which holds out or undertakes the transportation of passengers

or property, or both, or any class of passengers or property,

between points within this Commonwealth by motor vehicle for

compensation, whether or not the owner or operator of such motor

vehicle, or who or which provides or furnishes any motor

vehicle, with or without driver, for transportation or for use

in transportation of persons or property as aforesaid, and shall

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include common carriers by rail, water, or air, and express or

forwarding public utilities insofar as such common carriers or

such public utilities are engaged in such motor vehicle

operations[, but does not include:]. The term includes a

transportation network company and a transportation network

company driver. The term does not include:

* * *

"Transportation network company." A company that uses a

digital network to connect passengers with transportation

network company drivers for the purpose of transportation. The

term does not include a company providing transportation through

a ridesharing arrangement under the act of December 14, 1982

(P.L.1211, No.279), entitled "An act providing for ridesharing

arrangements and providing that certain laws shall be

inapplicable to ridesharing arrangements."

"Transportation network company driver." An individual who

uses the individual's personal vehicle to provide a ride for a

passenger arranged electronically through a transportation

network company.

"Transportation network service." A service for matching

passengers and drivers electronically in advance and rendered on

an exclusive basis, where the service is characterized by an

individual offering a ride to a passenger in the individual's

personal vehicle through a digital network. The term does not

include a ridesharing arrangement under the act of December 14,

1982 (P.L.1211, No.279), entitled "An act providing for

ridesharing arrangements and providing that certain laws shall

be inapplicable to ridesharing arrangements."

* * *

Section 7. Section 318(a) of Title 66 is amended to read:

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§ 318. Commission to cooperate with other departments.

(a) Vehicle registration plates.--The Department of

Transportation and the commission are hereby authorized and

directed to cooperate in the issuance by the Department of

Transportation, under the provisions of Title 75 (relating to

vehicles), of registration plates for commercial motor vehicles,

which will classify and identify motor vehicles operated under

certificates or permits issued by the commission, including

vehicles used by transportation network companies and

transportation network company drivers, without the necessity of

the requirement of separate identification plates in addition to

registration plates required under Title 75.

* * *

Section 8. Section 510(a) introductory paragraph of Title

66, amended October 22, 2014 (P.L.2545, No.155), is amended to

read:

§ 510. Assessment for regulatory expenses upon public

utilities.

(a) Determination of assessment.--Before November 1 of each

year, the commission shall estimate its total expenditures in

the administration of this part for the fiscal year beginning

July of the following year, which estimate shall not exceed

three-tenths of 1% of the total gross intrastate operating

revenues of the public utilities [and licensed entities] or a

transportation network company in accordance with section 2607

(relating to commission costs) under its jurisdiction for the

preceding calendar year[, except that the estimate may exceed

this amount to reflect Federal funds received by the commission

and funds received from other sources to perform functions that

are unrelated to the regulation of public utilities and licensed

20150SB0763PN0810 - 27 -

entities]. Such estimate shall be submitted to the Governor in

accordance with section 610 of the act of April 9, 1929

(P.L.177, No.175), known as The Administrative Code of 1929. At

the same time the commission submits its estimate to the

Governor, the commission shall also submit that estimate to the

General Assembly. The commission or its designated

representatives shall be afforded an opportunity to appear

before the Governor and the Senate and House Appropriations

Committees regarding their estimates. The commission shall

subtract from the final estimate:

* * *

Section 9. Section 512 of Title 66 is amended to read:

§ 512. Power of commission to require insurance.

(a) Motor carriers.--The commission may, as to motor

carriers, prescribe, by regulation or order, such requirements

as it may deem necessary for the protection of persons or

property of their patrons and the public, including the filing

of surety bonds, the carrying of insurance, or the

qualifications and conditions under which such carriers may act

as self-insurers with respect to such matters. All motor

carriers of passengers, whose current liquid assets do not

exceed their current liabilities by at least $100,000, shall

cover each and every vehicle, transporting such passengers, with

a public liability insurance policy or a surety bond issued by

an insurance carrier or a bonding company authorized to do

business in this Commonwealth, in such amounts as the commission

may prescribe, but not less than $5,000 for one and $10,000 for

more than one person injured in any one accident.

(b) Transportation network companies.--The commission shall,

in respect to transportation network companies, prescribe, by

20150SB0763PN0810 - 28 -

regulation or order, requirements as the commission deems

necessary for the protection of persons or property of their

patrons and the public, including the carrying of primary

insurance as required under section 2603 (relating to service

standards and requirements for transportation network companies)

and as prescribed under 75 Pa.C.S. Ch. 17 (relating to financial

responsibility).

Section 10. Title 66 is amended by adding a chapter to read:

CHAPTER 26

TRANSPORTATION NETWORK SERVICES

Sec.

2601. Definitions.

2602. Construction.

2603. Service standards and requirements for transportation

network companies.

2604. Service standards and requirements for transportation

network company drivers.

2605. Transportation network company vehicle requirements.

2606. Rates and forms of compensation.

2607. Commission costs.

2608. Regulations.

§ 2601. Definitions.

The following words and phrases when used in this chapter

shall have the meanings given to them in this section unless the

context clearly indicates otherwise:

"License." Proof of the commission's approval authorizing a

transportation network company driver to operate under a

transportation network service in this Commonwealth in

accordance with this chapter.

§ 2602. Construction.

20150SB0763PN0810 - 29 -

(a) Call or demand service.--A transportation network

service is a "call or demand service" for purposes of 53 Pa.C.S.

§ 5701 (relating to definitions).

(b) Motor carriers of passengers.--A transportation network

company, transportation network service and transportation

network company driver are motor carriers of passengers under

this title.

§ 2603. Service standards and requirements for transportation

network companies.

(a) Requirement.--No transportation network company may

operate in this Commonwealth unless it holds and maintains a

certificate of public convenience issued by the commission.

Transportation network companies are solely responsible for

ensuring compliance with all of the rules and regulations set

forth in this title, including, but not limited to, programming

their digital networks and applications to comply with this

chapter and all relevant parts of this title.

(b) Application.--An application for a certificate of public

convenience shall be made to the commission in writing, be

verified by oath or affirmation and be in such form and contain

such information as the commission may, by rule or order,

require.

commission shall issue a certificate of public convenience to a

transportation network company applicant if the commission is

satisfied that the applicant will do all of the following:

(1) Maintain accurate records of all transportation

network company drivers providing services arranged through

the transportation network company's digital network. The

commission shall determine, by regulation or order, the

20150SB0763PN0810 - 30 -

appropriate time period for which the transportation network

company shall retain the records of its transportation

network company drivers.

(2) Establish a driver training program designed to

ensure that each transportation network company driver safely

operates the driver's vehicle prior to the driver being

permitted to offer transportation network services through

the transportation network company. The following shall apply

to the driver training program:

(i) Each transportation network company shall file

its driver training program with the commission upon

application for a license to provide a transportation

network service.

(ii) The commission shall establish, through

regulation or order, the minimum components each driver

training program shall include.

(iii) A transportation network company shall file an

annual report with the commission on the number of

drivers currently providing service for the

transportation network company that became eligible and

completed the driver training program.

(iv) A transportation network company driver shall

procedures that the commission establishes. The

transportation network company shall inform each

individual that the individual must register with and be

licensed by the commission.

(3) (i) Implement a zero-tolerance policy on the use of

drugs or alcohol while a transportation network company

driver provides transportation network services, provide

20150SB0763PN0810 - 31 -

notice of the zero-tolerance policy on its publicly

accessible Internet website, as well as the procedures to

report a complaint about a transportation network company

driver with whom a passenger was matched and whom the

passenger reasonably suspects was under the influence of

drugs or alcohol during the course of the ride; and

(ii) immediately suspend the transportation network

company driver upon receipt of a passenger complaint

alleging a violation of the zero-tolerance policy. The

suspension shall continue for the duration of the

investigation.

(4) Prior to permitting an individual to act as a

transportation network company driver on the network of the

transportation network company, verify the individual's

commission license as required under paragraph (2)(iv) and

obtain and review a report of criminal history record

information for the individual, which shall be provided to

the commission. The following shall apply:

(i) The report of criminal history record

information shall be comprised of a national criminal

background check, including the National Sex Offender

Registry.

(ii) An individual is not permitted to act as a

transportation network company driver if the individual:

(A) Has been convicted within the past seven

years of any of the following:

(I) driving under the influence of drugs or

alcohol; or

(II) a crime involving property damage or

theft.

20150SB0763PN0810 - 32 -

(B) Has been convicted at any time of any of the

following:

(I) Fraud.

(II) A sexual offense.

(III) Use of a motor vehicle to commit a

felony.

(IV) An act of violence.

(V) An act of terrorism.

(5) Prior to permitting an individual to act as a

transportation network company driver on its network, obtain

and review a driver history report for the individual. An

individual is not permitted to act as a transportation

network company driver if the individual:

(i) has committed more than three moving violations

in the three-year period prior to the review; or

(ii) has committed a serious traffic violation in

the three-year period prior to the review, including, but

not limited to, fleeing or attempting to elude a police

officer, reckless driving or driving with a suspended or

revoked license.

(6) Display to passengers on the digital application

used by a transportation network company to connect

transportation network company drivers and passengers the

following:

(i) A photograph of the transportation network

company driver taken within the preceding 12 months as

depicted on the driver's commission license.

(ii) A photograph of the vehicle used by the driver

in providing transportation network services.

(iii) The license plate number of the vehicle used

20150SB0763PN0810 - 33 -

in providing transportation network services.

(7) Maintain primary insurance that complies with 75

Pa.C.S. Ch. 17 (relating to financial responsibility) and the

following for incidents involving a transportation network

company driver while providing transportation network

services:

(i) Coverage that includes the following types and

minimum amounts:

(A) Commercial liability coverage in an amount

no less than $1,000,000 per incident.

(B) Medical payments coverage in an amount no

less than $5,000 per incident.

amount no less than $50,000 per incident.

(D) Uninsured or underinsured motorist coverage

in an amount no less than $1,000,000 per incident.

(ii) The coverage shall apply from the time at which

the transportation network company driver opens the

digital application used by a transportation network

company to connect transportation network company drivers

and passengers until the time at which the transportation

network company driver closes the application or the

passenger safely exits the vehicle, whichever is later.

(iii) Notwithstanding any coverage held or

maintained by the transportation network company driver,

the transportation network company's insurance coverage

required under this paragraph shall be the primary

insurance for any and all claims arising from incidents

involving a transportation network company driver while

providing transportation network services.

20150SB0763PN0810 - 34 -

(8) File with the commission a Form E, evidence of motor

carrier bodily injury and property damage liability

certificate of insurance, evidencing its primary commercial

insurance coverage and other coverage as required under

paragraph (7) and compliance with 75 Pa.C.S. Ch. 17.

(9) Maintain a publicly accessible Internet website that

provides a customer service telephone number or e-mail

address and the telephone number of the commission's utility

customer hotline.

(10) The digital network used by the transportation

network company and the transportation network service shall

be programmed so that transportation network company drivers

may not pick up passengers outside of the commission's

jurisdiction or in areas specifically excluded in the

transportation network company's certificate of public

convenience.

(d) Prohibitions.--No transportation network company,

transportation network service and transportation network

company driver may:

(1) Operate or do business in a city of the first class.

(2) Pick up a passenger from any airport in this

Commonwealth.

(e) Commission inspection of records.--

(1) Subject to reasonable confidentiality obligations

and applicable confidentiality laws, the commission may

inspect records to investigate compliance with the

requirements of this chapter and any regulations issued

pursuant to section 2606 (relating to rates and forms of

compensation).

(2) Any records disclosed to the commission under this

20150SB0763PN0810 - 35 -

subsection shall not be subject to disclosure to a third

party by the commission, including through a request

submitted pursuant to the act of February 14, 2008 (P.L.6,

No.3), known as the Right-to-Know Law.

(f) Discrimination in service.--

(1) No transportation network company may:

(i) As to service, make or grant any unreasonable

preference or advantage to any person, corporation or

municipal corporation, or subject any person, corporation

or municipal corporation to any unreasonable prejudice or

disadvantage.

(ii) Establish or maintain any unreasonable

difference as to service, either as between localities or

as between classes of service.

(2) Nothing in this subsection shall be construed to

prohibit the establishment of reasonable classifications of

service.

§ 2604. Service standards and requirements for transportation

network company drivers.

(a) Separate licenses required.--A separate license is

required for a transportation network company driver that is

approved to provide transportation network services by an

approved transportation network company.

(b) Requirements for transportation network drivers.--A

transportation network company driver:

(1) Must pass the criminal history and driving history

investigations as specified in section 2603(c)(4) and (5)

relating to service standards and requirements for

transportation network companies).

(2) Is subject to sections 501 (relating to general

20150SB0763PN0810 - 36 -

powers) and 3301 (relating to civil penalties for

violations).

(3) Must possess a valid driver's license and proof of

motor vehicle insurance and be at least 21 years of age.

(4) Must use a transportation network company vehicle

that is registered in Pennsylvania.

(5) Must use a transportation network company vehicle

that is registered directly to the transportation network

driver only.

(6) Must provide proof to the commission that:

(i) the transportation network driver's personal

insurer has been made aware of the driver's intention to

operate the transportation network company vehicle as a

common carrier; and

(ii) that the transportation network company

driver's personal insurance policy covers transportation

network activities.

(7) In the case of an accident:

(i) Shall provide proof of the transportation

network company's primary insurance coverage required

under section 2603(c)(7). Proof of the primary commercial

liability insurance shall be kept in the transportation

network company driver's vehicle at all times.

(ii) Is prohibited from presenting the driver's

personal insurance to any party as proof of insurance

from the time a transportation network company driver

opens the digital application used by a transportation

network company to connect transportation network company

drivers and passengers until the time at which the

transportation network company driver closes the

20150SB0763PN0810 - 37 -

application or the passenger safely exits the vehicle,

whichever is later. A driver who violates this

subparagraph is subject to penalties as prescribed by the

commission.

(8) May accept only rides arranged through the

transportation network company's digital network and may not

solicit or accept street hails or telephone calls.

§ 2605. Transportation network company vehicle requirements.

(a) Authorized vehicles.--A vehicle used by a transportation

network company driver to provide transportation network

services shall be:

(1) R egistered in this Commonwealth to a single

transportation network company driver, equipped and licensed

for use on a public highway.

(2) A coupe, sedan or light-duty vehicle, including a

van, minivan, sport utility vehicle, hatchback, convertible

or pickup truck.

(b) Age of vehicle.--Unless otherwise permitted by the

commission, a vehicle may not be operated for purposes of

providing transportation network services if it is more than

eight model years old.

(1) An annual certificate of inspection shall be

obtained from an inspection station approved by the

Department of Transportation under 67 Pa. Code Ch. 175

(relating to vehicle equipment and inspection) for each

transportation network company vehicle.

(2) A safety inspection shall be conducted by the

transportation network company and the commission for each

transportation network company vehicle before the vehicle is

20150SB0763PN0810 - 38 -

used to provide transportation network services, and annually

thereafter.

(3) The commission shall determine vehicle safety

standards.

(d) Vehicle identification.--A transportation network

company vehicle shall be identified by a permanent conspicuously

placed marking, which identifies the vehicle as a transportation

network company vehicle through a unique identification number

to be determined by the commission. A vehicle used in

transportation network service shall have a unique license plate

to distinguish it as a common carrier, as determined by the

Department of Transportation of the Commonwealth.

§ 2606. Rates and forms of compensation.

(a) Passenger receipt.--Upon completion of a trip, each

transportation network company shall transmit an electronic

receipt to the passenger's e-mail address or mobile application

documenting the origination and destination of the trip and the

total amount paid, if any.

(b) Fares.--

(1) A transportation network company shall charge a

fare. A transportation network company shall disclose the

fare calculation method, the applicable rates being charged

and the option to obtain an estimated fare to the passenger

before booking the ride.

(2) The amount of a fare provided or received for

transportation network services is subject to review or

approval by the commission under Chapter 13 (relating to

rates and distribution systems).

§ 2607. Commission costs.

Program costs for commission implementation and enforcement

20150SB0763PN0810 - 39 -

of this chapter shall be included in the commission's proposed

budget and shall be assessed upon transportation network

companies in accordance with section 510(a) (relating to

assessment for regulatory expenses upon public utilities).

§ 2608. Regulations.

The commission shall promulgate regulations and issue orders

as necessary to administer and enforce this chapter, including

penalties and enforcement pertaining to transportation network

companies and transportation network company drivers.

Section 11. This act shall take effect in 180 days.

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