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PRINTER'S NO. 241
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
241
Session of
2015
INTRODUCED BY DeLUCA, COHEN, READSHAW AND GAINEY,
JANUARY 28, 2015
REFERRED TO COMMITTEE ON CONSUMER AFFAIRS, JANUARY 28, 2015
AN ACT
Amending Titles 53 (Municipalities Generally), 66 (Public
Utilities) and 75 (Vehicles) of the Pennsylvania Consolidated
Statutes, in taxicabs and limousines in first class cities,
further providing for definitions; in general provisions,
further providing for definitions; in powers and duties,
further providing for power of commission to require
insurance; in contract carrier by motor vehicle and broker,
further providing for declaration of policy and definitions;
providing for transportation network services; in general
provisions, further providing for definitions; and, in
registration of vehicles, further providing for application
for registration.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The definitions of "call or demand service,"
"taxicab service" and "limousine service" in section 5701 of
Title 53 of the Pennsylvania Consolidated Statutes are amended
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:
* * *
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"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, or both. The term does not
include limousine service. The term shall not include,
transportation network service as defined in 66 Pa.C.S. § 102
(relating to definitions).
* * *
"Limousine service."
(1) Except as provided in paragraph (2), a motor vehicle
providing any of the following services:
(i) Local, nonscheduled common carrier service for
passengers on an exclusive basis for compensation.
(ii) Common carrier service for passengers for
compensation:
(A) from any airport, railroad station or hotel
located in whole or in part in a city of the first
class; or
(B) to any airport, railroad station or hotel
located in whole or in part in a city of the first
class from a point within the city of the first
class.
(2) The term does not include any of the following:
(i) Taxicab service.
(ii) Service that was otherwise exempt from the
jurisdiction of the Pennsylvania Public Utilities
Commission prior to the effective date of this
subparagraph.
(iii) Other paratransit service.
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(iv) Employee commuter van pooling.
(v) A vehicle with a seating capacity of 16 or more
persons, including the driver.
(vi) Transportation network service as defined in 66
Pa.C.S. § 102 (relating to definitions).
* * *
Section 2. The definitions of "common carrier" and "motor
carrier" in section 102 of Title 66 are amended, the definition
of "common carrier by motor vehicle" is amended by adding a
paragraph 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 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. The term shall not include a
transportation network company or transportation network company
driver.
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"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
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:
* * *
(10) A person or entity that is any of the following:
(i) A transportation network company.
(ii) A transportation network company driver.
* * *
"Motor carrier." A common carrier by motor vehicle, and a
contract carrier by motor vehicle. The term shall not include a
transportation network company or transportation network company
driver.
* * *
"Transportation network company." A company that uses a
digital network to connect a passenger with a transportation
network company driver for the purpose of transportation.
"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 company vehicle." A vehicle used by
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a transportation network company driver to provide
transportation network services.
"Transportation network service." A service which meets all
of the following:
(1) Matches a passenger and driver electronically in
advance.
(2) Is rendered on an exclusive basis.
(3) Is characterized by an individual offering a ride to
a passenger in the individual's personal vehicle through a
digital network.
Section 3. 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 may,
in respect to transportation network companies, promulgate
regulations or issue orders establishing requirements necessary
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for the protection of persons or property of their patrons and
the public, including the carrying of insurance as required
under section 2603 (relating to service standards and
requirements of transportation network companies).
Section 4. The definition of "broker" in section 2501(b) of
Title 66 is amended and paragraph (2) of the definition of
"contract carrier by motor vehicle" is amended by adding a
subparagraph to read:
§ 2501. Declaration of policy and definitions.
* * *
(b) Definitions.--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 subsection:
"Broker." Any person or corporation not included in the term
"motor carrier" and not a bona fide employee or agent of any
such carrier, or group of such carriers, who or which, as
principal or agent, sells or offers for sale any transportation
by a motor carrier, or the furnishing, providing, or procuring
of facilities therefor, or negotiates for, or holds out by
solicitation, advertisement, or otherwise, as one who sells,
provides, furnishes, contracts, or arranges for such
transportation, or the furnishing, providing, or procuring of
facilities therefor, other than as a motor carrier directly or
jointly, or by arrangement with another motor carrier, and who
does not assume custody as a carrier. The term shall not include
a transportation network company or a transportation network
company driver.
"Contract carrier by motor vehicle."
* * *
(2) The term "contract carrier by motor vehicle" does
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not include:
* * *
(x) A transportation network company or
transportation network company driver.
Section 5. Title 66 is amended by adding a chapter to read:
CHAPTER 26
TRANSPORTATION NETWORK SERVICES
Sec.
2601. Definitions.
2602. Applicability of certain laws and prohibition.
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. Regulations.
2608. Commission costs.
§ 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:
"Form E." As defined in 52 Pa. Code 1025.1 (relating to
definitions).
"License." Proof of the commission's approval authorizing a
transportation network company to operate a transportation
network service in this Commonwealth in accordance with this
chapter. The term does not include a certificate of public
convenience as described under Ch. 11 (relating to certificates
of public convenience).
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§ 2602. Applicability of certain laws and prohibition.
(a) Motor carrier laws.--The following laws and regulations
of this Commonwealth shall not apply to a transportation network
company or transportation network company driver:
(1) This title, except that the commission shall
regulate transportation network companies, drivers and
services under this chapter and Chapters 3 (relating to
public utility commission), 5 (relating to powers and
duties), 7 (relating to procedure on complaints) and 33
(relating to violations and penalties).
(2) 53 Pa.C.S. (relating to municipalities generally).
(3) Laws and regulations containing special insurance
requirements for motor carriers, except as provided in
section 2603(a)(3)(vii) (relating to service standards and
requirements for transportation network companies).
(4) Laws imposing a greater standard of care on motor
carriers than that imposed on other drivers or owners of
motor vehicles.
(5) Laws and regulations imposing special equipment
requirements and special accident reporting requirements on
motor carriers.
(b) Municipal licenses and taxes.--A municipality may not
impose a tax on or require a license for a transportation
network company or transportation network service.
§ 2603. Service standards and requirements for transportation
network companies.
(a) Requirements for transportation network companies.--
(1) A transportation network company may not operate in
this Commonwealth unless it holds and maintains a license
issued by the commission.
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(2) An application for a license shall be made to the
commission in writing, be verified by oath or affirmation and
be in the form and contain the information as the commission
may, by regulation or order, require.
(3) A license shall be issued to a transportation
network company applicant if the commission is satisfied that
the applicant will do all of the following:
(i) 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 appropriate time period for which the
transportation network company shall retain the records
of all transportation network company drivers.
(ii) 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:
(A) Each transportation network company shall
file its driver training program with the commission
upon application for a license to provide a
transportation network service.
(B) The commission shall establish, through
regulation or order, the components each driver
training program must include at a minimum.
(C) Each transportation network company must
file an annual report with the commission on the
number of transportation network company drivers
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currently providing service for the transportation
network company that became eligible and completed
the driver training program.
(iii) Implement a zero tolerance policy on the use
of drugs or alcohol while a transportation network
company driver provides transportation network services,
provide notice of the zero tolerance policy on its
publicly accessible Internet website and procedures to
report a complaint about a transportation network company
driver with whom the passenger was matched and whom the
passenger reasonably suspects was under the influence of
drugs or alcohol during the course of the ride and
immediately suspend the transportation network company
driver upon receipt of a passenger complaint alleging a
violation of the zero tolerance policy. The suspension
shall last the duration of the investigation.
(iv) Obtain and review, prior to permitting a person
to act as a transportation network company driver on its
digital network, a criminal history research report for
the person. The following shall apply:
(A) The criminal history research report shall
be a national criminal background check, including
the national sex offender database.
(B) A person who has been convicted, within the
past seven years, of driving under the influence of
drugs or alcohol or of a crime involving property
damage and theft may not be a transportation network
company driver.
(C) A person who has been convicted at any time
for fraud, sexual offenses, use of a motor vehicle to
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commit a felony, acts of violence or acts of terror
may not be a transportation network company driver.
(v) Obtain and review, prior to permitting a person
to act as a transportation network company driver on its
digital network, a driving history research report for
the person. A person with more than three moving
violations in the three-year period prior to the check or
a major violation in the three-year period prior to the
check may not be a transportation network company
driver. The commission shall determine, through
regulation or order, the frequency with which the
transportation network company must review the driving
history of each transportation network company driver.
(vi) Display, on the digital application used by the
transportation network company to connect transportation
network company drivers and passengers, a picture of the
transportation network company driver taken within the
preceding 12 months, a description of the individual's
vehicle used in providing transportation network services
and the license plate number of the vehicle.
(vii) Maintain commercial liability insurance
coverage in the amount of not less than $1,000,000 per
incident, medical payments coverage in the amount of not
less than $5,000 per incident, comprehensive and
collision coverage in the amount of not less than $50,000
per incident and uninsured/underinsured motorist coverage
in the amount of not less than $1,000,000 per incident
for incidents involving a transportation network company
driver while providing transportation network company
services. The following shall apply:
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(A) Transportation network companies that file
with the commission, as provided for under
subparagraph (ix), at least $1,000,000 of commercial
liability insurance coverage may operate vehicles
with a seating capacity of not more than eight
passengers, including the driver.
(B) Transportation network companies that file
with the commission at least $1,500,000 of commercial
liability insurance coverage may operate vehicles
with a seating capacity of not more than 10
passengers, including the driver.
(C) The insurance required under this
subparagraph must apply as the primary coverage
regardless of any insurance policy held by the
transportation network company driver 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.
(D) Notwithstanding any insurance coverage held
or maintained by the transportation network company
driver, the transportation network company's
insurance coverage required under this subparagraph
shall cover, as the primary insurance coverage, each
claim arising for an injury from an incident
involving a transportation network company driver
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while providing transportation network company
services during the times set forth in clause (C).
(viii) Direct, prior to permitting a person to act
as a transportation network company driver on its digital
network, that the person notify in writing the person's
personal auto insurance company of the person's intent to
operate as a driver on the applicant's digital network.
The applicant shall be required to maintain a copy of
such notification while the person is a transportation
network company driver on its digital network and for a
period of three years following termination of the
driver's affiliation with the applicant.
(ix) File with the commission a Form E evidencing
its commercial insurance coverage and other coverage as
required under subparagraph (vii). Except for the Form E,
the commission may not disclose to a third party any
information related to the insurance policy. A record
disclosed under this subparagraph 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.
(x) Maintain an Internet website that provides a
customer service telephone number or e-mail address and
the telephone number of the commission's customer
hotline.
(b) License.--
(1) The commission shall prescribe, through regulation
or order, the privileges, rights and authority provided with,
and suspension, revocation or renewal requirements for, the
issuance of a license under this chapter.
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(2) A license under this chapter shall not provide the
same authority as a certificate of public convenience as
described under Chapter 11 (relating to certificates of
public convenience).
(c) Inspection of records.--Subject to reasonable
confidentiality obligations and confidentiality laws, the
commission may inspect records to investigate compliance with
the requirements of this chapter and regulations issued under
section 2606 (relating to rates and forms of compensation).
(d) Discrimination in service.--A transportation network
company may not, in regard to service, make or grant an
unreasonable preference or advantage to a person, corporation or
municipal corporation or subject a person, corporation or
municipal corporation to an unreasonable prejudice or
disadvantage. A transportation network company may not establish
or maintain an unreasonable difference, in regard to service,
between localities or between classes of service. This
subsection does not prohibit the establishment of reasonable
classifications of service.
§ 2604. Service standards and requirements for transportation
network company drivers.
(a) Separate licenses prohibited.--A separate license may
not be 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 must comply with all of
the following:
(1) Each transportation network company driver must pass
a criminal history search and a driving history search as
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specified in section 2603 (relating to service standards and
requirements for transportation network companies).
(2) Each transportation network company driver shall be
subject to sections 501 (relating to general powers) and 3301
(relating to civil penalties for violations).
(3) A transportation network company driver must:
(i) Possess a valid driver's license, proof of motor
vehicle insurance and be at least 21 years of age.
(ii) Prior to acting as a transportation network
company driver for any approved transportation network
company, notify in writing the driver's personal auto
insurance company of the driver's intent to operate as a
driver for an approved transportation network company and
send to the transportation network company a copy of such
notification.
(iii) In the case of an accident, provide proof of
personal insurance and the transportation network
company's commercial liability insurance and other
coverage as required under section 2603(a)(3)(vii). A
transportation network company driver shall have 24 hours
to provide proof of the transportation network company's
commercial liability insurance and other coverage as
required under section 2603(a)(3)(vii).
(4) A transportation network company driver may only
accept a ride arranged through the approved 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 transportation network company
vehicle must be an automobile or light duty truck that is
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equipped and licensed for use on a public highway, including a
coupe, sedan, 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.
(c) Inspections required.--
(1) An annual certificate of inspection must 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 must be conducted by the
transportation network company or a third party on each
transportation network company vehicle before the vehicle is
used to provide transportation network services, and annually
thereafter.
(3) An inspection under paragraph (2) shall be conducted
by an individual who is competent and qualified to make an
inspection to ensure that the equipment is in a safe
condition to be operated on the highway. The inspection shall
include the following:
(i) Foot brakes.
(ii) Emergency brakes.
(iii) Steering mechanism.
(iv) Windshield.
(v) Rear window and other glass.
(vi) Windshield wipers.
(vii) Headlights.
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(viii) Tail lights.
(ix) Turn indicator lights.
(x) Brake lights.
(xi) Front seat adjustment mechanism.
(xii) The opening, closing and locking of doors.
(xiii) Horn.
(xiv) Speedometer.
(xv) Bumpers.
(xvi) Muffler and exhaust system.
(xvii) Condition of tires, including tread depth.
(xviii) Interior and exterior rear view mirrors.
(xix) Safety belts for driver and passenger.
(4) A commission officer may inspect the transportation
network company's vehicles to ensure compliance with
paragraph (3).
§ 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.--A transportation network company may offer
transportation network services at no charge, suggest a donation
or charge a fare. If a fare is charged, a transportation network
company must disclose the fare calculation method, the
applicable rates being charged and the option for an estimated
fare to the passenger before booking the ride. The amount of a
donation, charge, fare or other compensation provided or
received for transportation network services shall not be
subject to review or approval by the commission under Chapter 13
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(relating to rates and distribution systems).
§ 2607. Regulations.
The commission may promulgate regulations and issue orders to
enforce this chapter.
§ 2608. Commission costs.
The program costs for commission implementation and
enforcement 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).
Section 6. The definition of "bus" in section 102 of Title
75 is amended to read:
§ 102. Definitions.
Subject to additional definitions contained in subsequent
provisions of this title which are applicable to specific
provisions of this title, the following words and phrases when
used in this title shall have, unless the context clearly
indicates otherwise, the meanings given to them in this section:
* * *
"Bus."
(1) A motor vehicle designed to transport 16 or more
passengers, including the driver; or
(2) a motor vehicle, other than a taxicab or limousine,
designed to transport not more than 15 passengers, including
the driver, and used for the transportation of persons for
compensation.
The term does not include a vehicle used in a ridesharing
arrangement, as defined in the act of December 14, 1982
(P.L.1211, No.279), entitled "An act providing for ridesharing
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arrangements and providing that certain laws shall be
inapplicable to ridesharing arrangements," [or] a school bus[.]
or a motor vehicle designed for carrying not more than 15
passengers, exclusive of the driver, that is used as a
transportation network company vehicle as defined in 66 Pa.C.S.
§ 102 (relating to definitions).
* * *
Section 7. Section 1305(b) of Title 75 is amended to read:
§ 1305. Application for registration.
* * *
(b) Evidence of P.U.C. approval for buses and taxis.--Before
registering any bus or taxi which is required under the laws of
this Commonwealth to obtain a certificate of public convenience
from the Pennsylvania Public Utility Commission, the department
shall require evidence that the certificate has been issued and
has not been revoked or has not expired. This subsection shall
not apply to a transportation network company vehicle as defined
in 66 Pa.C.S. § 102 (relating to definitions).
* * *
Section 8. This act shall take effect in 60 days.
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