HB 2330 Establishes a regulatory system for transportation network companies

     Handler: Emery

Current Bill Summary

- Prepared by Senate Research -


HCS/HB 2330 - This act modifies provisions relating to transportation network companies.

INSURANCE REQUIREMENTS (Sections 379.1700-379.1708) - This act creates the insurance coverage requirements between a transportation network company (TNC) and a TNC driver who uses a personal vehicle to transport passengers for the TNC beginning April 1, 2017. A TNC driver or the TNC company, on the driver's behalf, is required to maintain primary automobile insurance coverage as specified in the act. The policy of insurance must recognize that the driver uses the vehicle to transport riders for compensation while logged onto the TNC's digital network. The TNC is required to notify a TNC driver of the insurance coverage provided by the TNC and to also notify a driver that his or her own personal automobile insurance policy may not provide coverage while the driver uses a vehicle in connection with the service and that it may also violate the terms of his or her contract with a lienholder. Automobile insurers in Missouri may exclude or limit any and all insurance coverage provided to owner's or operator's of personal vehicles while logged into a TNC's digital network for the purpose of transporting persons or property for compensation. In a claims coverage investigation, TNCs and any insurer potentially providing coverage under the act shall cooperate to facilitate the exchange of relevant information with each other and any insurer of the TNC driver, if applicable.

These provisions are identical to HB 1563 (2016) and SB 947 (2016), and are similar to HB 781 (2015).

REGULATION OF TRANSPORTATION NETWORK COMPANIES (Sections 387.600-387.634) - This act requires TNC operators to obtain a permit from the Department of Revenue, with a $5000 permit fee assessed annually. However, under this act, any TNC company shall not be considered a common carrier and no TNC driver shall be required to register their vehicle.

Under this act, TNC's shall meet certain requirements including displaying certain items in their software applications and maintaining markings on TNC motor vehicles. Upon completion of a TNC ride, the TNC shall transmit a receipt to the rider that lists certain items as set forth in this act. Further, TNC drivers shall be considered independent contractors if the TNC does not prescribe work hours, the TNC does not impose restrictions on the driver's ability to utilize networks from other TNC's, the TNC does not assign a driver any particular territory, the TNC does not restrict a driver's occupation or business, and the TNC and driver agree that the driver is an independent contractor. This act also requires TNC's to implement a zero tolerance policy as set forth in this act.

Before allowing an individual to accept trip requests through a TNC's digital network, the individual shall submit an application to the TNC company containing certain information, the TNC shall conduct a criminal background check on the individual, and the TNC shall review the driving history of the individual. Under this act, the TNC company shall not permit an individual to be a TNC driver if they have had 3 moving violations in the prior 3 year period, they have been convicted of DUI in the past 7 years, they are in the National Sex Offender Registry, they do not possess a valid driver's license or proof of vehicle registration and insurance, or if they are under age 19. Further, a TNC shall not allow a driver to accept trip requests unless their vehicle meets state vehicle inspection requirements. This act also requires TNC's to adopt certain policies as set forth in this act, and maintain certain customer records.

Under this act, no municipality or other political subdivision may regulate or impose taxes on TNC's. Beginning August 28, 2016, and annually thereafter, a taxicab company may be regulated either as a TNC or regional taxicab districts under this act.

This act is similar to HB 1563 (2016), SB 947 (2016), HB 2233 (2016), and HB 781 (2015).

KAYLA HAHN


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