HB 130 Enacts provisions relating to transportation network companies
Sponsor: Onder
LR Number: 0590S.07T Fiscal Notes
Committee: Transportation, Infrastructure and Public Safety
Last Action: 4/24/2017 - Signed by Governor Journal Page: H1708
Title: SS#2 SCS HCS HB 130 Calendar Position:
Effective Date: August 28, 2017
House Handler: Mathews

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Current Bill Summary


SS#2/SCS/HCS/HB 130 - This act enacts a regulatory scheme for "Transportation network companies" ("TNCs"). It provides that TNCs and TNC drivers are not common carriers, contract carriers, motor carriers, taxicab service or association, or for-hire vehicle services. TNC drivers need not register their vehicles as commercial or for-hire.

Transportation network companies may not operate within the state without first paying a $5,000 annual fee and obtaining a license from the Department of Revenue, but no per-car or per-driver fees shall be assessed. TNCs must maintain agents for service of process within the state of Missouri, and TNCs and TNC drivers shall comply with the TNC insurance requirements in current law.

TNCs may charge fares, but must disclose the fare or fare structure on its website or digital network. If the fare is based on actual time and distance traveled, the TNC on its website shall also provide riders the applicable rates being charged and the option to receive an estimated fare before the rider enters the vehicle.

The TNC's digital network shall display a picture of the TNC driver and the license plate number of the vehicle before the rider enters the vehicle. The TNC must provide a detailed electronic receipt to the rider within a reasonable time following a trip.

Except as it relates to a 501(c)(3) nonprofit, state or local government entity, or federally-recognized Indian tribe, TNC drivers shall be independent contractors and not employees under certain circumstances. TNC drivers are not agents of the TNC unless agreed to in writing.

TNCs must adopt a zero tolerance policy toward drivers using intoxicating substances. This act also requires an investigation and maintenance of related records.

TNCs are required to notify drivers they may have a contractual obligation to include the TNC as a loss payee on their insurance policy, and drivers are required to take any steps necessary to satisfy the requirements of their insurance contracts.

This act prescribes driver eligibility requirements, including background checks and registration with the TNC. Transportation network company vehicles must meet Missouri's motor vehicle safety inspection requirements. TNC drivers, taxicab drivers, and persons performing food delivery services shall not be required to obtain a class of Missouri driver's license other than F. TNCs shall remove drivers from their platform if they are determined to have committed certain crimes or if their insurance policy is no longer in effect.

TNC drivers shall not solicit or accept street hails. TNCs shall adopt nondiscrimination policies with respect to riders, shall notify drivers of such policy, and may not discriminate against TNC drivers in a way prohibited by the Missouri or United States Constitutions.

TNCs are prohibited from misleading riders or potential riders, including law enforcement, as to how many vehicles are available to provide rides. TNCs shall not use geographic location or geolocation data to exclude service to areas on the basis of such area's income, racial, or ethnic composition. TNCs are subject to fines and license suspension for violations as provided in the act.

TNCs shall maintain individual trip records of riders for one year following each trip, and individual records of TNC drivers for one year following the end of the TNC's relationship with the driver. TNCs shall adopt a privacy policy to protect the personal information of TNC riders.

This act provides that it is the sole body of law governing TNCs and TNC drivers, and provides that the department of revenue may promulgate rules to administer the provisions. Income taxes imposed by the state and earnings taxes are not preempted by this act. Airport owners or operators may establish operating procedures and may charge reasonable fees for passenger drop-off and pick-up or for use of their facilities.

This act provides that, except as it relates to a 501(c)(3) nonprofit, state or local government entity, or federally-recognized Indian tribe, TNCs shall not be considered employers of TNC drivers for purposes of Chapters 285, 287, 288, and 290 unless agreed to by written contract. TNCs must keep the appropriate agencies informed of such contracts and any changes to them.

This act provides that the statutes relating to the Saint Louis regional taxicab district shall not apply to TNCs, TNC drivers, or TNC services. It also removes the requirement that the Saint Louis Regional Taxicab Commission incorporate fingerprints into their criminal record check procedures.

This act provides that for the sole purpose of verifying a TNC is in compliance with the requirements of this act, Kansas City and the Saint Louis Regional Taxicab Commission shall up to twice per calendar year have the right to inspect up to ten records the TNC is required to maintain. Each licensed TNC may be charged up to $5,000 to cover the cost of the inspection, not to exceed the costs of compliance, and may be fined up to $500 per violation discovered during the inspection. Kansas City and the Saint Louis Regional Taxicab Commission also may inspect relevant records in order to investigate or resolve criminal allegations against any TNC or TNC driver.

This act also specifies that the regional taxicab commission does not have the authority to license, supervise, or regulate medical transportation.

This act is similar to SCS/SB 185 (2017), SB 991 (2016), HB 2233 (2016), and HB 2330 (2016).

ERIC VANDER WEERD