AN ACT

 

1Amending Title 66 (Public Utilities) of the Pennsylvania
2Consolidated Statutes, in general provisions, further
3providing for definitions; in Public Utility Commission,
4further providing for commission to cooperate with other
5departments; in powers and duties, further providing for
6assessment for regulatory expenses upon public utilities and
7for power of commission to require insurance; and providing
8for transportation network services.

9The General Assembly of the Commonwealth of Pennsylvania
10hereby enacts as follows:

11Section 1. The definition of "common carrier" and the
12introductory paragraph of the definition of "common carrier by
13motor vehicle" in section 102 of Title 66 of the Pennsylvania
14Consolidated Statutes are amended and the section is amended by
15adding definitions to read:

16§ 102. Definitions.

17Subject to additional definitions contained in subsequent
18provisions of this part which are applicable to specific
19provisions of this part, the following words and phrases when
20used in this part shall have, unless the context clearly

1indicates otherwise, the meanings given to them in this section:

2* * *

3"Common carrier." Any and all persons or corporations
4holding out, offering, or undertaking, directly or indirectly,
5service for compensation to the public for the transportation of
6passengers or property, or both, or any class of passengers or
7property, between points within this Commonwealth by, through,
8over, above, or under land, water, or air, and shall include
9forwarders[, but shall not include]. The term shall also include 
10a transportation network company, transportation network service 
11or transportation network company driver. The term shall not 
12include contract carriers by motor vehicles, or brokers, or any
13bona fide cooperative association transporting property
14exclusively for the members of such association on a nonprofit
15basis.

16"Common carrier by motor vehicle." Any common carrier who or
17which holds out or undertakes the transportation of passengers
18or property, or both, or any class of passengers or property,
19between points within this Commonwealth by motor vehicle for
20compensation, whether or not the owner or operator of such motor
21vehicle, or who or which provides or furnishes any motor
22vehicle, with or without driver, for transportation or for use
23in transportation of persons or property as aforesaid, and shall
24include common carriers by rail, water, or air, and express or
25forwarding public utilities insofar as such common carriers or
26such public utilities are engaged in such motor vehicle
27operations[, but does not include:]. The term includes a 
28transportation network company and a transportation network 
29company driver. The term does not include:

30* * *

1"Transportation network company." A company that uses a
2digital network to connect passengers with transportation
3network company drivers for the purpose of transportation. The
4term does not include a company providing transportation through
5a ridesharing arrangement under the act of December 14, 1982
6(P.L.1211, No.279), entitled "An act providing for ridesharing
7arrangements and providing that certain laws shall be
8inapplicable to ridesharing arrangements."

9"Transportation network company driver." An individual who
10uses the individual's personal vehicle to provide a ride for a
11passenger arranged electronically through a transportation
12network company.

13"Transportation network service." A service for matching
14passengers and drivers electronically in advance and rendered on
15an exclusive basis, where the service is characterized by an
16individual offering a ride to a passenger in the individual's
17personal vehicle through a digital network. The term does not
18include a ridesharing arrangement under the act of December 14,
191982 (P.L.1211, No.279), entitled "An act providing for
20ridesharing arrangements and providing that certain laws shall
21be inapplicable to ridesharing arrangements."

22* * *

23Section 2. Sections 318(a), 510(a) introductory paragraph 
24and 512 of Title 66 are amended to read:

25§ 318. Commission to cooperate with other departments.

26(a) Vehicle registration plates.--The Department of
27Transportation and the commission are hereby authorized and
28directed to cooperate in the issuance by the Department of
29Transportation, under the provisions of Title 75 (relating to
30vehicles), of registration plates for commercial motor vehicles,

1which will classify and identify motor vehicles operated under
2certificates or permits issued by the commission, including 
3vehicles used by transportation network companies and 
4transportation network company drivers, without the necessity of
5the requirement of separate identification plates in addition to
6registration plates required under Title 75.

7* * *

8§ 510. Assessment for regulatory expenses upon public
9utilities.

10(a) Determination of assessment.--Before November 1 of each
11year, the commission shall estimate its total expenditures in
12the administration of this part for the fiscal year beginning
13July of the following year, which estimate shall not exceed
14three-tenths of 1% of the total gross intrastate operating
15revenues of the public utilities or transportation network 
16companies in accordance with section 2607 (relating to 
17commission costs) under its jurisdiction for the preceding
18calendar year. Such estimate shall be submitted to the Governor
19in accordance with section 610 of the act of April 9, 1929
20(P.L.177, No.175), known as ["]The Administrative Code of 1929.
21["] At the same time the commission submits its estimate to the
22Governor, the commission shall also submit that estimate to the
23General Assembly. The commission or its designated
24representatives shall be afforded an opportunity to appear
25before the Governor and the Senate and House Appropriations
26Committees regarding their estimates. The commission shall
27subtract from the final estimate:

28* * *

29§ 512. Power of commission to require insurance.

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

1carriers, prescribe, by regulation or order, such requirements
2as it may deem necessary for the protection of persons or
3property of their patrons and the public, including the filing
4of surety bonds, the carrying of insurance, or the
5qualifications and conditions under which such carriers may act
6as self-insurers with respect to such matters. All motor
7carriers of passengers, whose current liquid assets do not
8exceed their current liabilities by at least $100,000, shall
9cover each and every vehicle, transporting such passengers, with
10a public liability insurance policy or a surety bond issued by
11an insurance carrier or a bonding company authorized to do
12business in this Commonwealth, in such amounts as the commission
13may prescribe, but not less than $5,000 for one and $10,000 for
14more than one person injured in any one accident.

15(b)  Transportation network companies.--The commission may, 
16in respect to transportation network companies, prescribe, by 
17regulation or order, requirements as the commission deems 
18necessary for the protection of persons or property of their 
19patrons and the public, including the carrying of primary 
20insurance as required under section 2603 (relating to service 
21standards and requirements for transportation network companies) 
22and as prescribed under 75 Pa.C.S. Ch. 17 (relating to financial 
23responsibility).

24Section 3. Title 66 is amended by adding a chapter to read:

25CHAPTER 26

26TRANSPORTATION NETWORK SERVICES

27Sec.

282601. Definitions.

292602. Construction.

302603. Service standards and requirements for transportation

1network companies.

22604. Service standards and requirements for transportation
3network company drivers.

42605. Transportation network company vehicle requirements.

52606. Rates and forms of compensation.

62607. Commission costs.

72608. Regulations.

8§ 2601. Definitions.

9The following words and phrases when used in this chapter
10shall have the meanings given to them in this section unless the
11context clearly indicates otherwise:

12"License." Proof of the commission's approval authorizing a 
13transportation network company driver to operate under a 
14transportation network service in this Commonwealth in 
15accordance with this chapter.

16§ 2602. Construction.

17(a) Call or demand service.--A transportation network
18service is a "call or demand service" for purposes of 53 Pa.C.S.
19§ 5701 (relating to definitions).

20(b) Motor carriers of passengers.--A transportation network
21company, transportation network service and transportation
22network company driver are motor carriers of passengers under
23this title.

24§ 2603. Service standards and requirements for transportation
25network companies.

26(a) Requirement.--No transportation network company may
27operate in this Commonwealth unless it holds and maintains a
28certificate of public convenience issued by the commission.

29(b) Application.--An application for a certificate of public
30convenience shall be made to the commission in writing, be

1verified by oath or affirmation and be in such form and contain
2such information as the commission may, by rule or order,
3require.

4(c) Issuance of certificate of public convenience.--The
5commission shall issue a certificate of public convenience to a
6transportation network company applicant if the commission is
7satisfied that the applicant will do all of the following:

8(1) Maintain accurate records of all transportation
9network company drivers providing services arranged through
10the transportation network company's digital network. The
11commission shall determine, by regulation or order, the
12appropriate time period for which the transportation network
13company shall retain the records of its transportation
14network company drivers.

15(2) Establish a driver training program designed to
16ensure that each transportation network company driver safely
17operates the driver's vehicle prior to the driver being
18permitted to offer transportation network services through
19the transportation network company. The following shall apply
20to the driver training program:

21(i) Each transportation network company shall file
22its driver training program with the commission upon
23application for a license to provide a transportation
24network service.

25(ii) The commission shall establish, through
26regulations or orders, the minimum components each driver
27training program must include.

28(iii) Each transportation network company shall file
29an annual report with the commission on the number of
30drivers currently providing service for the

1transportation network company that became eligible and
2completed the driver training program.

3(iv) Each transportation network company driver must
4register with and be licensed by the commission through
5procedures that the commission shall establish. The
6transportation network company shall inform each
7individual that the individual must register with and be
8licensed by the commission.

9(3) Implement a zero tolerance policy on the use of
10drugs or alcohol while a transportation network company
11driver provides transportation network services, provide
12notice of the zero tolerance policy on its Internet website,
13as well as the procedures to report a complaint about a
14transportation network company driver with whom a passenger
15was matched and whom the passenger reasonably suspects was
16under the influence of drugs or alcohol during the course of
17the ride, and immediately suspend the transportation network
18company driver upon receipt of a passenger complaint alleging
19a violation of the zero tolerance policy. The suspension
20shall continue for the duration of the investigation.

21(4) Prior to permitting an individual to act as a
22transportation network company driver on its network, verify
23the individual's commission license as required under
24paragraph (2)(iv) and obtain and review a report of criminal
25history record information for the individual, which shall be
26provided to the commission. The following shall apply:

27(i) The report of criminal history record
28information shall be comprised of a national criminal
29background check, including the National Sex Offender
30Registry.

1(ii) An individual is not permitted to act as a
2transportation network company driver if the individual:

3(A) Has been convicted within the past seven
4years of any of the following:

5(I) driving under the influence of drugs or
6alcohol; or

7(II) a crime involving property damage or
8theft.

9(B) Has been convicted at any time of any of the
10following:

11(I) Fraud.

12(II) A sexual offense.

13(III) Use of a motor vehicle to commit a
14felony.

15(IV) An act of violence.

16(V) An act of terrorism.

17(5) Prior to permitting an individual to act as a
18transportation network company driver on its network, obtain
19and review a driver history report for the individual. An
20individual is not permitted to act as a transportation
21network company driver if the individual:

22(i) has committed more than three moving violations
23in the three-year period prior to the review; or

24(ii) has committed a serious traffic violation in
25the three-year period prior to the review, including, but
26not limited to, fleeing or attempting to elude a police
27officer, reckless driving or driving with a suspended or
28revoked license.

29(6) Display to passengers on the digital application
30used by a transportation network company to connect

1transportation network company drivers and passengers the
2following:

3(i) A photograph of the transportation network
4company driver taken within the preceding 12 months as
5depicted on the driver's commission license.

6(ii) A photograph of the vehicle used by the driver
7in providing transportation network services.

8(iii) The license plate number of the vehicle in
9providing transportation network services.

10(7) Maintain primary insurance that complies with 75
11Pa.C.S. Ch. 17 (relating to financial responsibility) and the
12following for incidents involving a transportation network
13company driver while providing transportation network
14services:

15(i) The coverage must include the following types
16and minimum amounts:

17(A) Commercial liability coverage in an amount
18no less than $1,000,000 per incident.

19(B) Medical payments coverage in an amount no
20less than $5,000 per incident.

21(C) Comprehensive and collision coverage in an
22amount no less than $50,000 per incident.

23(D) Uninsured/underinsured motorist coverage in
24an amount no less than $1,000,000 per incident.

25(ii) The coverage must apply from the time at which
26the transportation network company driver opens the
27digital application used by a transportation network
28company to connect transportation network company drivers
29and passengers until the time at which the transportation
30network company driver closes the application or the

1passenger safely exits the vehicle, whichever is later.

2(iii) Notwithstanding any coverage held or
3maintained by the transportation network company driver,
4the transportation network company's insurance coverage
5required under this paragraph shall be the primary
6insurance for any and all claims arising from incidents
7involving a transportation network company driver while
8providing transportation network services.

9(8) File with the commission Form E, evidence of motor
10carrier bodily injury and property damage liability
11certificate of insurance, evidencing its primary commercial
12insurance coverage and other coverage as required under
13paragraph (7) and compliance with 75 Pa.C.S. Ch. 17.

14(9) Maintain an Internet website that provides a
15customer service telephone number or e-mail address and the
16telephone number of the commission's utility customer
17hotline.

18(d) Prohibitions.--A transportation network company,
19transportation network service and transportation network
20company driver may not:

21(1) Operate or do business in a city of the first class.

22(2) Pick up a passenger from any airport in this
23Commonwealth.

24(e) Commission inspection of records.--Subject to reasonable
25confidentiality obligations and applicable confidentiality laws,
26the commission may inspect records to investigate compliance
27with the requirements of this chapter and any regulations issued
28pursuant to section 2606 (relating to rates and forms of
29compensation). However, any records disclosed to the commission
30under this subsection shall not be subject to disclosure to a

1third party by the commission, including through a request
2submitted pursuant to the act of February 14, 2008 (P.L.6,
3No.3), known as the Right-to-Know Law.

4(f) Discrimination in service.--No transportation network
5company shall, as to service, make or grant any unreasonable
6preference or advantage to any person, corporation or municipal
7corporation, or subject any person, corporation or municipal
8corporation to any unreasonable prejudice or disadvantage. No
9transportation network company shall establish or maintain any
10unreasonable difference as to service, either as between
11localities or as between classes of service, but this subsection
12does not prohibit the establishment of reasonable
13classifications of service.

14§ 2604. Service standards and requirements for transportation
15network company drivers.

16(a) Separate licenses required.--A separate license is
17required for a transportation network company driver that is
18approved to provide transportation network services by an
19approved transportation network company.

20(b) Requirements for transportation network drivers.--A
21transportation network company driver:

22(1) Must pass the criminal history and driving history
23investigations as specified in section 2603(c)(4) and (5)
24(relating to service standards and requirements for
25transportation network companies).

26(2) Is subject to sections 501 (relating to general
27powers) and 3301 (relating to civil penalties for
28violations).

29(3) Must possess a valid driver's license and proof of
30motor vehicle insurance and be at least 21 years of age.

1(4) In the case of an accident:

2(i) Shall provide proof of the transportation
3network company's primary insurance coverage required
4under section 2603(c)(7). Proof of the primary commercial
5liability insurance shall be kept in the transportation
6network company driver's vehicle at all times.

7(ii) Is prohibited from presenting the driver's
8personal insurance to any party as proof of insurance
9from the time a transportation network company driver
10opens the digital application used by a transportation
11network company to connect transportation network company
12drivers and passengers until the time at which the
13transportation network company driver closes the
14application or the passenger safely exits the vehicle,
15whichever is later. A driver who violates this
16subparagraph is subject to penalties as prescribed by the
17commission.

18(5) May accept only rides arranged through the
19transportation network company's digital network and may not
20solicit or accept street hails or telephone calls.

21§ 2605. Transportation network company vehicle requirements.

22(a) Authorized vehicles.--Vehicles used by transportation
23network company drivers to provide transportation network
24services must be equipped and licensed for use on a public
25highway, coupes, sedans or light-duty vehicles, including vans,
26minivans, sport utility vehicles, hatchbacks, convertibles and
27pickup trucks.

28(b) Age of vehicle.--Unless otherwise permitted by the
29commission, a vehicle may not be operated for purposes of
30providing transportation network services if it is more than

1eight model years old.

2(c) Inspections required.--

3(1) An annual certificate of inspection must be obtained
4from an inspection station approved by the Department of
5Transportation under 67 Pa. Code Ch. 175 (relating to vehicle
6equipment and inspection) for each transportation network
7company vehicle.

8(2) A safety inspection must be conducted by the
9transportation network company and the commission for each
10transportation network company vehicle before the vehicle is
11used to provide transportation network services, and annually
12thereafter.

13(3) The commission shall determine vehicle safety
14standards.

15(d) Vehicle identification.--Each transportation network
16company vehicle shall be identified by a conspicuously placed
17marking, which shall identify the vehicle as a transportation
18network company vehicle through a unique identification number
19to be determined by the commission.

20§ 2606. Rates and forms of compensation.

21(a) Passenger receipt.--Upon completion of a trip, each
22transportation network company shall transmit an electronic
23receipt to the passenger's e-mail address or mobile application
24documenting the origination and destination of the trip and the
25total amount paid, if any.

26(b) Fares.--A transportation network company must charge a
27fare. A transportation network company shall disclose the fare 
28calculation method, the applicable rates being charged and the 
29option to obtain an estimated fare to the passenger before 
30booking the ride. The amount of a fare provided or received for

1transportation network services is subject to review or approval
2by the commission under Chapter 13 (relating to rates and
3distribution systems).

4§ 2607. Commission costs.

5Program costs for commission implementation and enforcement
6of this chapter shall be included in the commission's proposed
7budget and shall be assessed upon transportation network
8companies in accordance with section 510(a) (relating to
9assessment for regulatory expenses upon public utilities).

10§ 2608. Regulations.

11The commission may promulgate regulations and issue orders as
12necessary to administer and enforce this chapter.

13Section 4. This act shall take effect in 60 days.