Add SS3441, 3455 & 5103, Ins L; amd SS121-e, 148-a, 401 & 498, add Title X-A Art 46-A SS2200 - 2211, V & T L;
amd S181, Gen Muni L; amd S151, Transp L
Relates to transportation network companies that use a digital network to connect transportation network drivers to transportation network riders for the purpose of providing transportation; provides for insurance for such companies and implements registration, regulation and operational requirements.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A6090A
TITLE OF BILL: An act to amend the insurance law, the vehicle and
traffic law, the general municipal law and the transportation law, in
relation to transportation network companies
To establish, regulate and provide proper insurance for transportation
network companies and drivers.
SUMMARY OF PROVISIONS:
Sections 1 and 2 of the bill amend the insurance law by adding two new
sections to authorize the issuance of automobile insurance policies to
transportation network companies and transportation network company
drivers on a group basis and to regulate the interaction of private
passenger automobile insurance policies with insurance policies covering
transportation network services.
Sections 3 through 9 of the bill amend certain existing sections of the
vehicle and traffic law, the general municipal law, the transportation
law, and the insurance law in order to permit the establishment and
operation of transportation network companies.
Section 10 of the bill amends the vehicle and traffic law by adding a
new Title X-A and article 46-A, which empowers the commissioner of motor
vehicles to issue permits to transportation network companies and to
regulate transportation network companies and transportation network
company drivers through establishment of registration, operational, and
insurance requirements. It also authorizes the commissioner of motor
vehicles to take action against a transportation network company for any
violations of the new article 46-A of the vehicle and traffic law.
Section 11 is the effective date.
Transportation Network Companies (TNCs) provide a digital platform that
matches consumers with a community of vetted local drivers offering
rides using their personal vehicles. Existing transportation options
alone can no longer fully accommodate growing populations, yet 80% of
the seats in personal vehicles remain empty. TNC platforms are already
filling those empty seats across the country by providing additional
transportation options to communities that need them most and reducing
the economic burden of car ownership.
The broader benefits of ridesharing are being realized in communities
where TNCs have been able to scale effectively. Ridesharing protects
consumer choice, responds to unmet market demands, supplies accessible
and affordable transportation options to underserved areas, provides
economic opportunities, reduces drunk driving, eases traffic congestion,
curbs air pollution and provides last mile solutions to commuters seek-
ing to utilize existing transit options. TNCs are continuing to evolve
to maximize these benefits with innovative options in the largest
markets where they have been able to grow within the framework of
TNCs have proactively addressed safety issues by developing practices
and policies that provide unprecedented transparency for both passengers
and drivers. They have worked with insurers to develop policies that
provide a significantly higher level of coverage than is required or
typical for-hire-vehicles in New York. These policies can help set a
baseline for consumer protection while competition will continue to push
standards even higher. This bill would balance the need to ensure that
necessary safety standards are met by existing and emerging TNCs while
enabling growth and innovation to fully realize the benefits that
consumers are demanding.
This act shall take effect immediately
STATE OF NEW YORK
2015-2016 Regular Sessions
March 16, 2015
Introduced by M. of A. CAHILL, RYAN, MORELLE, FAHY, McDONALD, STIRPE --
read once and referred to the Committee on Transportation -- committee
discharged, bill amended, ordered reprinted as amended and recommitted
to said committee
AN ACT to amend the insurance law, the vehicle and traffic law, the
general municipal law and the transportation law, in relation to
transportation network companies
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The insurance law is amended by adding a new section 3441
2 to read as follows:
3 § 3441. Transportation network companies. (a) Notwithstanding any
4 other provision of this chapter, this section shall apply to transporta-
5 tion network companies.
6 (b) For purposes of this section the following definitions shall
8 (1) "Personal vehicle" means a motor vehicle used by a transportation
9 network company driver and is:
10 (A) owned, leased or otherwise authorized for use by the transporta-
11 tion network company driver; and
12 (B) not a taxicab, livery or for-hire vehicle.
13 (2) "Digital network" means any online-enabled application, software,
14 website or system offered or utilized by a transportation network compa-
15 ny that enables the prearrangement of rides with transportation network
16 company drivers.
17 (3) "Transportation network company" means a corporation, partnership,
18 sole proprietorship, or other entity that is operating in this state
19 that uses a digital network to connect transportation network company
20 riders to transportation network company drivers who provide prearranged
21 rides. A transportation network company shall not be deemed to control,
22 direct or manage the personal vehicles or transportation network company
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
 is old law to be omitted.
A. 6090--A 2
1 drivers that connect to its digital network, except where agreed to by
2 written contract.
3 (4) "Transportation network company driver" or "driver" means an indi-
4 vidual who:
5 (A) receives connections to potential riders and related services from
6 a transportation network company in exchange for payment of a fee to the
7 transportation network company; and
8 (B) uses a personal vehicle to offer or provide a prearranged ride to
9 riders upon connection through a digital network controlled by a trans-
10 portation network company in return for compensation or payment of a
12 (5) "Transportation network company rider" or "rider" means an indi-
13 vidual or persons who use a transportation network company's digital
14 network to connect with a transportation network driver who provides
15 prearranged rides to the rider in the driver's personal vehicle between
16 points chosen by the rider.
17 (6) "Prearranged ride" means the provision of transportation by a
18 driver to a rider, beginning when a driver accepts a ride requested by a
19 rider through a digital network controlled by a transportation network
20 company, continuing while the driver transports a requesting rider, and
21 ending when the last requesting rider departs from the personal vehicle.
22 A prearranged ride does not include transportation provided using a
23 taxicab, livery, limousine, or other for-hire vehicle.
24 (7) "Group policy" means an insurance policy issued pursuant to
25 section three thousand four hundred fifty-five of this article.
26 (c) A transportation network company driver or transportation network
27 company on the driver's behalf through a group policy, shall maintain
28 primary automobile insurance that:
29 (1) recognizes that the driver is a transportation network company
30 driver or otherwise uses a vehicle to transport passengers for compen-
31 sation and covers the driver:
32 (A) while the driver is logged on to the transportation network compa-
33 ny's digital network; or
34 (B) while the driver is engaged in a prearranged ride.
35 (2) the following automobile insurance requirements shall apply while
36 a participating transportation network company driver is logged on to
37 the transportation network company's digital network and is available to
38 receive transportation requests but is not engaged in a prearranged
40 (A) primary automobile liability insurance in the amount of at least
41 fifty thousand dollars for death and bodily injury per person, one
42 hundred thousand dollars for death and bodily injury per incident, and
43 twenty-five thousand dollars for property damage and coverage in satis-
44 faction of the financial responsibility requirements set forth in
45 section three thousand four hundred twenty of this article and article
46 fifty-one of this chapter, and regulations promulgated thereunder.
47 (B) the coverage requirements of this paragraph may be satisfied by
48 any of the following:
49 (i) automobile insurance maintained by the transportation network
50 company driver; or
51 (ii) automobile insurance provided through a group policy maintained
52 by the transportation network company; or
53 (iii) any combination of clause (i) or (ii) of this subparagraph.
54 (3) the following automobile insurance requirements shall apply while
55 a transportation network company driver is engaged in a prearranged
A. 6090--A 3
1 (A) primary automobile liability insurance that provides at least one
2 million dollars for death, bodily injury and property damage and cover-
3 age in satisfaction of the financial responsibility requirements set
4 forth in section three thousand four hundred twenty of this article and
5 article fifty-one of this chapter, and regulations promulgated there-
7 (B) the coverage requirements of this paragraph may be satisfied by
8 any of the following:
9 (i) automobile insurance maintained by the transportation network
10 company driver; or
11 (ii) automobile insurance provided through a group policy maintained
12 by the transportation network company; or
13 (iii) any combination of clauses (i) and (ii) of this subparagraph.
14 (4) if insurance maintained by a driver in paragraph two or three of
15 this subsection has lapsed or does not provide the required coverage,
16 insurance maintained by a transportation network company shall provide
17 the coverage required by this subsection beginning with the first dollar
18 of a claim and have the duty to defend such claim.
19 (5) coverage under an automobile insurance policy maintained by the
20 transportation network company shall not be dependent on a personal
21 automobile insurer first denying a claim nor shall a personal automobile
22 insurance policy be required to first deny a claim.
23 (6) insurance required by this subsection may be placed with an insur-
24 er authorized or eligible to write insurance in this state and shall be
25 eligible for placement by an excess line broker licensed pursuant to
26 article twenty-one of this chapter.
27 (7) insurance satisfying the requirements of this subsection shall be
28 deemed to satisfy the financial responsibility requirements set forth in
29 subdivision four of section three hundred eleven of the vehicle and
30 traffic law, section three thousand four hundred twenty of this article,
31 and article fifty-one of this chapter, and regulations promulgated ther-
32 eunder, and such other requirements that may apply for the purposes of
33 satisfying the financial responsibility requirements with respect to the
34 use or operation of a motor vehicle.
35 (8) a transportation network company driver shall carry proof of
36 coverage satisfying paragraphs two and three of this subsection with him
37 or her at all times during his or her use of a vehicle in connection
38 with a transportation network company's digital network. In the event of
39 an accident, a transportation network company driver shall provide this
40 insurance coverage information to the directly interested parties, auto-
41 mobile insurers and investigating police officers, upon request. Upon
42 such request, a transportation network company driver shall also
43 disclose to directly interested parties, automobile insurers, and inves-
44 tigating police officers, whether he or she was logged on to the trans-
45 portation network company's digital network or on a prearranged ride at
46 the time of an accident.
47 (d) The transportation network company shall disclose in writing to
48 transportation network company drivers the following before they are
49 allowed to accept a request for a prearranged ride on the transportation
50 network company's digital network:
51 (1) the insurance coverage, including the types of coverage and the
52 limits for each coverage, that the transportation network company
53 provides while the transportation network company driver uses a personal
54 vehicle in connection with a transportation network company's digital
55 network; and
A. 6090--A 4
1 (2) that the transportation network company driver's own automobile
2 insurance policy might not provide any coverage while the driver is
3 logged on to the transportation network company's digital network and is
4 available to receive transportation requests or is engaged in a prear-
5 ranged ride, depending on its terms.
6 (e) (1) Insurers that write automobile insurance in this state may
7 exclude any and all coverage afforded under the policy issued to an
8 owner or operator of a personal vehicle for any loss or injury that
9 occurs while a driver is logged on to a transportation network company's
10 digital network or while a driver provides a prearranged ride. This
11 right to exclude all coverage may apply to any coverage included in an
12 automobile insurance policy including, but not limited to:
13 (A) liability coverage for bodily injury and property damage;
14 (B) coverage provided pursuant to article fifty-one of this chapter;
15 (C) uninsured and underinsured motorist coverage; and
16 (D) motor vehicle physical damage coverage as described in paragraph
17 nineteen of subsection (a) of section one thousand one hundred thirteen
18 of this chapter.
19 (2) Such exclusions shall apply notwithstanding any requirement under
20 the law to the contrary. Nothing in this section implies or requires
21 that a personal automobile insurance policy provide coverage while the
22 driver is logged on to the transportation network company's digital
23 network, while the driver is engaged in a prearranged ride or while the
24 driver otherwise uses a vehicle to transport passengers for compen-
26 (3) Nothing shall be deemed to preclude an insurer from providing
27 coverage for the transportation network company driver's vehicle, if it
28 so chose to do so by contract or endorsement.
29 (4) Automobile insurers that exclude the coverage described in
30 subsection (c) of this section shall have no duty to defend or indemnify
31 any claim expressly excluded thereunder. Nothing in this article shall
32 be deemed to invalidate or limit an exclusion contained in a policy
33 including any policy in use or approved for use in this state prior to
34 the enactment of this section that excludes coverage for vehicles used
35 to carry persons or property for a charge or available for hire by the
37 (5) An automobile insurer that defends or indemnifies a claim against
38 a driver that is excluded under the terms of its policy, shall have a
39 right of contribution against other insurers that provide automobile
40 insurance to the same driver in satisfaction of the coverage require-
41 ments of subsection (c) of this section at the time of loss.
42 (6) In a claims coverage investigation, transportation network compa-
43 nies and any insurer potentially providing coverage under subsection (c)
44 of this section shall, within fifteen days after a claim has been filed,
45 facilitate the exchange of relevant information with directly involved
46 parties and any insurer of the transportation network company driver if
47 applicable, including the precise times that a transportation network
48 company driver logged on and off of the transportation network company's
49 digital network in the twelve hour period immediately preceding and in
50 the twelve hour period immediately following the accident and disclose
51 to one another a clear description of the coverage, exclusions and
52 limits provided under any automobile insurance maintained under
53 subsection (c) of this section.
54 § 2. The insurance law is amended by adding a new section 3455 to read
55 as follows:
A. 6090--A 5
1 § 3455. Transportation network company group insurance policies. (a)
2 For purposes of this section, the following definitions shall apply:
3 (1) "Transportation network company" shall have the meaning set forth
4 in subsection (b) of section three thousand four hundred forty-one of
5 this article.
6 (2) "Certificate" or "certificate of insurance" means any policy,
7 contract or other evidence of insurance, or rider or endorsement there-
8 to, issued to a group member under a transportation network company
9 group policy.
10 (3) "Transportation network company group policy" or "group policy"
11 means group policy, including certificate issued to the group members,
12 where the group policyholder is a transportation network company and the
13 policy provides insurance to the transportation network company and to
14 group members:
15 (A) in accordance with the requirements of subsection (c) of section
16 three thousand four hundred forty-one of this article;
17 (B) of the type described in paragraphs thirteen, fourteen and/or
18 nineteen of subsection (a) of section one thousand one hundred thirteen
19 of this chapter; and
20 (C) in satisfaction of the financial responsibility requirements set
21 forth in section three thousand four hundred twenty of this article,
22 subdivision four of section three hundred eleven of the vehicle and
23 traffic law, and article fifty-one of this chapter, and regulations
24 promulgated thereunder.
25 (4) "Group Member" means a "transportation network company driver" as
26 defined in subsection (b) of section three thousand four hundred forty-
27 one of this article.
28 (5) "Group policyholder" means a transportation network company.
29 (6) "Personal vehicle" shall have the meaning set forth in subsection
30 (b) of section three thousand four hundred forty-one of this article.
31 (b) An insurer may issue or issue for delivery in this state a trans-
32 portation network company group policy to a transportation network
33 company as a group policyholder only in accordance with the provisions
34 of this section.
35 (c)(1) A transportation network company group policy shall provide
36 coverage for a personal vehicle in accordance with the requirements of
37 subsection (c) of section three thousand four hundred forty-one of this
39 (2) A transportation network company group policy may provide:
40 (A) coverage for limits higher than the minimum limits required pursu-
41 ant to subsection (c) of section three thousand four hundred forty-one
42 of this article;
43 (B) supplementary uninsured/underinsured motorists insurance for bodi-
44 ly injury pursuant to paragraph two of subsection (f) of section three
45 thousand four hundred twenty of this article;
46 (C) supplemental spousal liability insurance pursuant to subsection
47 (g) of section three thousand four hundred twenty of this chapter; and
48 (D) motor vehicle physical damage coverage as described in paragraph
49 nineteen of subsection (a) of section one thousand one hundred thirteen
50 of this chapter.
51 (3) The coverage described in paragraphs one and two of this
52 subsection may be provided in one group policy or in separate group
54 (4) A transportation network company group policy, including certif-
55 icates, shall be issued by an insurer authorized or eligible to write
A. 6090--A 6
1 insurance in this state and shall be eligible for placement by an excess
2 line broker licensed pursuant to article twenty-one of this chapter.
3 (5) A policyholder also may be an insured under a group policy.
4 (d) The premium for the transportation network company group policy,
5 including certificates may be paid by the group policyholder from the
6 funds contributed:
7 (1) wholly by the group policyholder;
8 (2) wholly by the group members; or
9 (3) jointly by the group policyholder and the group members.
10 (e) (1) Any policy dividend, retrospective premium credit, or retro-
11 spective premium refund in respect of premiums paid by the group policy-
12 holder may:
13 (A) be applied to reduce the premium contribution of the group policy-
14 holder, but not in excess of the proportion to its contribution; or
15 (B) be retained by the group policyholder.
16 (2) Any policy dividend, retrospective premium credit, or retrospec-
17 tive premium refund not distributed under paragraph one of this
18 subsection shall be:
19 (A) applied to reduce future premiums and, accordingly, future
20 contributions, of existing or future group members, or both; or
21 (B) paid or refunded to those group members insured on the date the
22 payment or refund is made to the group policyholder, if distributed by
23 the group policyholder, or on the date of mailing, if distributed
24 directly by the insurer, subject to the following requirements:
25 (i) The insurer shall be responsible for determining the allocation of
26 the payment of refund to the group members;
27 (ii) If the group policyholder distributes the payment or refund, the
28 insurer shall be responsible for audit to ascertain that the payment or
29 refund is actually made in accordance with the allocation procedure; and
30 (iii) If the group policyholder fails to make the payment or refund,
31 the insurer shall make the payment or refund directly or use the method
32 provided in subparagraph (A) of this paragraph.
33 (3) Notwithstanding paragraphs one and two of this subsection, if a
34 dividend accrues upon termination of coverage under a transportation
35 network company group policy, the premium for which was paid out of
36 funds contributed by group members specifically for the coverage, the
37 dividend shall be paid or refunded by the group policyholder to the
38 group members insured on the date the payment or refund is made to the
39 group policyholder, net of reasonable expenses incurred by the group
40 policyholder in paying or refunding the dividend to such group members.
41 (4) For the purposes of this subsection, "dividend" means a return by
42 the insurer of a transportation network company group policy of excess
43 premiums to the group policyholder in light of favorable loss experi-
44 ence, including retrospective premium credits or retrospective premium
45 refunds. The term "dividend" does not include reimbursements or fees
46 received by a group policyholder in connection with the operation or
47 administration of a transportation network company group policy, includ-
48 ing administrative reimbursements, fees for services provided by the
49 group policyholder, or transactional service fees.
50 (f) The insurer must treat in like manner all eligible group members
51 of the same class and status.
52 (g) Each policy written pursuant to this section shall provide per
53 occurrence limits of coverage for each group member in an amount not
54 less than that required by of subdivision two of section two thousand
55 two hundred three of the vehicle and traffic law, and may provide cover-
56 age for limits higher than the minimum limits required under the law.
A. 6090--A 7
1 (h) (1) The insurer or the group policyholder shall be responsible for
2 mailing or delivery of a certificate of insurance to each group member
3 insured under the transportation network company group policy. The
4 insurer or the group policyholder shall also be responsible for the
5 mailing or delivery to each group member of an amended certificate of
6 insurance or endorsement to the certificate, whenever there is a change
7 in limits; change in type of coverage; addition, reduction, or elimi-
8 nation of coverage; or addition of exclusion, under the transportation
9 network company group policy or certificate.
10 (2) The certificate shall contain in substance all material terms and
11 conditions of coverage afforded to group members, unless the transporta-
12 tion network company group policy is incorporated by reference and a
13 copy of the group policy accompanies the certificate.
14 (3) If any coverage afforded to the group member is excess of applica-
15 ble insurance coverage, the certificate shall contain a notice advising
16 the group members that, if the member has other insurance coverage,
17 specified coverages under the transportation network company group poli-
18 cy will be excess over the other insurance.
19 (i) A group policyholder shall comply with the provisions of section
20 two thousand one hundred twenty-two of this chapter, in the same manner
21 as an agent or broker, in any advertisement, sign, pamphlet, circular,
22 card, or other public announcement referring to coverage under a trans-
23 portation network company group policy or certificate.
24 (j) A transportation network company group policy shall not be subject
25 to section three thousand four hundred twenty-five or section three
26 thousand four hundred twenty-six of this article; provided that the
27 following requirements shall apply with regard to termination of cover-
29 (1)(A) An insurer may terminate a group policy or certificate only if
30 cancellation is based on one or more of the reasons set forth in subpar-
31 agraph (A) through (D) or (F) through (H) of paragraph one of subsection
32 (c) of section three thousand four hundred twenty-six of this article;
33 provided, however, that an act or omission by a group member that would
34 constitute the basis for cancellation of an individual certificate shall
35 not constitute the basis for cancellation of the group policy.
36 (B) Where the premium is derived wholly from funds contributed by the
37 group policyholder, an insurer may cancel an individual certificate only
38 if cancellation is based on one or more of the reasons set forth in
39 subparagraph (B), (C) or (H) of paragraph one of subsection (c) of
40 section three thousand four hundred twenty-six of this article.
41 (2) (A) An insurer's cancellation of a group policy, including all
42 certificates, shall not become affective until thirty days after the
43 insurer mails or delivers written notice of cancellation to the group
44 policyholder at the mailing address shown in the policy.
45 (i) Where all or part of the premium is derived from funds contributed
46 by the group member specifically for the coverage, the insurer shall
47 also mail or deliver written notice of cancellation of the group policy
48 to the group member at the group member's mailing address.
49 (ii) Where none of the premium is derived from funds contributed by a
50 group member specifically for the coverage, the group policy holder
51 shall mail or deliver written notice to the group member advising the
52 group member of the cancellation of the group policy and the effective
53 date of cancellation. The group policy holder shall mail or deliver the
54 written notice within ninety days after receiving notice of cancellation
55 from the insurer.
A. 6090--A 8
1 (B) An insurer's cancellation of an individual certificate shall not
2 become effective until thirty days after the insurer mails or delivers
3 written notice of cancellation to the group member at the group member's
4 mailing address and to the group policyholder at the mailing address
5 shown in the group policy.
6 (3) (A) A group policyholder may cancel a group policy, including all
7 certificates, or any individual certificate, for a reason upon thirty
8 days written notice to the insurer and each group member; and
9 (B) The group policyholder shall mail or deliver written notice to
10 each affected group member of the group policyholder's cancellation of
11 the group policy or certificate and the effective date of cancellation.
12 The group policyholder shall mail or deliver the written notice to the
13 group member's mailing address at least thirty days prior to the effec-
14 tive date of cancellation.
15 (4) A group member may cancel optional coverage upon providing notice
16 to the insurer and the group policyholder. For the purposes of this
17 paragraph, "optional coverage" means coverage other than financial
18 responsibility requirements described in subparagraph (C) of paragraph
19 three of subsection (a) of this section that an individual group member
20 purchases on an optional basis.
21 (5) (A) Unless a group policy provides for a longer policy period, the
22 policy and all certificates shall be issued or renewed for a one-year
23 policy period.
24 (B) The group policyholder shall be entitled to renew the group policy
25 and all certificates upon timely payment of the premium billed to the
26 group policyholder for the renewal, unless:
27 (i) the insurer mails or delivers to the group policyholder and all
28 group members written notice of nonrenewal, or conditional renewal; and
29 (ii) the insurer mails or delivers the written notice at least thirty,
30 but not more than one hundred twenty days prior to the expiration date
31 specified in the policy or, if no date is specified, the next anniver-
32 sary date of the policy.
33 (6) Where the group policyholder nonrenews the group policy, the group
34 policyholder shall mail or deliver written notice to each group member
35 advising the group member of nonrenewal of the group policy and the
36 effective date of nonrenewal. The group policyholder shall mail or
37 deliver written notice at least thirty days prior to the nonrenewal.
38 (7) Every notice of cancellation, nonrenewal, or conditional renewal
39 shall set forth the specific reason or reasons for cancellation, nonre-
40 newal, or conditional renewal.
41 (8) (A) An insurer shall not be required under this subsection to give
42 notice to a group member if the insurer has been advised by either the
43 group policyholder or another insurer that substantially similar cover-
44 age has been obtained from the other insurer without lapse of coverage.
45 (B) A group policyholder shall not be required under this subsection
46 to give notice to a group member if substantially similar coverage has
47 been obtained from another insurer without lapse of coverage.
48 (9) (A) If, prior to the effective date of cancellation, nonrenewal,
49 or conditional renewal of the group policy, or a certificate, whether
50 initiated by the insurer, group policyholder or by the group member in
51 regard to the group member's certificate, coverage attaches pursuant to
52 the terms of a group policy, then the coverage shall be effective until
53 expiration of the applicable period of coverage provided in the group
54 policy notwithstanding the cancellation, nonrenewal or conditional
55 nonrenewal of the group policy.
A. 6090--A 9
1 (B) Notwithstanding subparagraph (A) of this paragraph, an insurer may
2 terminate coverage under an individual certificate on the effective date
3 of cancellation, if the certificate is cancelled in accordance with the
4 provisions of subparagraph (B) of paragraph one of this subsection.
5 (k) Any mailing or delivery to a group member required or permitted
6 under this section may be made by electronic mail if consent to such
7 method of delivery has been previously received from such group member.
8 (l) Forms and rates for any group policy issued or issued for delivery
9 in this state pursuant to this section shall be filed with the super-
10 intendent in accordance with article twenty-three of this chapter.
11 § 3. Section 121-e of the vehicle and traffic law, as added by chapter
12 15 of the laws of 1983, is amended to read as follows:
13 § 121-e. Livery. Every motor vehicle, other than a taxicab or a bus,
14 used in the business of transporting passengers for compensation. Howev-
15 er, it shall not include vehicles which are rented or leased without a
16 driver and it shall not include transportation network vehicles as
17 defined in subdivision eight of section two thousand two hundred one of
18 this chapter.
19 § 4. Section 148-a of the vehicle and traffic law, as amended by chap-
20 ter 15 of the laws of 1983, is amended to read as follows:
21 § 148-a. Taxicab. Every motor vehicle, other than a bus, used in the
22 business of transporting passengers for compensation, and operated in
23 such business under a license or permit issued by a local authority.
24 However, it shall not include vehicles which are rented or leased with-
25 out a driver and it shall not include transportation network vehicles as
26 defined in subdivision eight of section two thousand two hundred one of
27 this chapter.
28 § 5. The opening paragraph of subdivision 7 of section 401 of the
29 vehicle and traffic law, as amended by chapter 55 of the laws of 1992,
30 is amended to read as follows:
31 For purposes of this subdivision a motor vehicle that meets the defi-
32 nition of a transportation network vehicle as defined in subdivision
33 eight of section two thousand two hundred one of this chapter shall not
34 be required to obtain a for hire or commercial vehicle registration. The
35 registration fees to be paid upon the registration or reregistration, in
36 accordance with the provisions of this article, of buses, of motor vehi-
37 cles constructed or specially equipped for the transportation of goods,
38 wares and merchandise, commonly known as auto trucks or light delivery
39 cars, of taxicabs, livery and of certain other motor vehicles specified
40 herein are hereby established as follows:
41 § 6. Paragraph c of subdivision 1 of section 498 of the vehicle and
42 traffic law, as added by chapter 549 of the laws of 2006, is amended to
43 read as follows:
44 c. "Pre-arranged for-hire vehicle" shall mean a motor vehicle, other
45 than a bus, that is used in the business of transporting passengers for
46 compensation on a pre-arranged basis, and operated in such business
47 under a license or permit issued by a licensing jurisdiction, except
48 that it shall not mean a motor vehicle that meets the definition of a
49 transportation network vehicle as defined in subdivision eight of
50 section two thousand two hundred one of this chapter. The term "pre-ar-
51 ranged for-hire vehicle" shall apply to vehicles as defined herein
52 regardless of any other provision of local law or rule defining or
53 describing such vehicles by any other terms such as livery, black car,
54 or luxury limousine.
55 § 7. Section 181 of the general municipal law is amended by adding a
56 new closing paragraph to read as follows:
A. 6090--A 10
1 For the purposes of this article, the terms taxicabs, limousines or
2 livery vehicles shall not include motor vehicles that meet the defi-
3 nition of a transportation network vehicle as defined in subdivision
4 eight of section two thousand two hundred one of the vehicle and traffic
6 § 8. Section 151 of the transportation law is amended by adding a new
7 subdivision 13 to read as follows:
8 13. In a vehicle that meets the definition of a transportation network
9 vehicle as defined in subdivision eight of section two thousand two
10 hundred one of the vehicle and traffic law.
11 § 9. Subsection (b) of section 5103 of the insurance law is amended by
12 adding a new paragraph 4 to read as follows:
13 (4) Is injured while operating a personal vehicle as a transportation
14 network company driver or transportation network company rider as such
15 terms are defined in subsection (b) of section three thousand four
16 hundred forty-one of this chapter.
17 § 10. The vehicle and traffic law is amended by adding a new title
18 10-a to read as follows:
19 TITLE X-A
20 TRANSPORTATION NETWORK COMPANIES
21 Article 46-A. Transportation network companies.
22 ARTICLE 46-A
23 TRANSPORTATION NETWORK COMPANIES
24 Section 2200. Short title.
25 2201. Definitions.
26 2202. Regulation of transportation network companies.
27 2203. Registration and insurance.
28 2204. Operational requirements of transportation network compa-
30 2205. Transportation network service limitations.
31 2206. Vehicle requirements for transportation network vehicles.
32 2207. Permit required for transportation network companies,
33 penalty for violation, and rules.
34 2208. Driver licensing requirement.
35 2209. Distribution of fees and penalties.
36 2210. Rules and inspections.
37 2211. Rule of construction.
38 § 2200. Short title. This article shall be known and may be cited as
39 the "Transportation Network Company Act".
40 § 2201. Definitions. When used in this article, the following terms
41 shall have the following meanings:
42 1. "Digital network" shall have the meaning set forth in subsection
43 (b) of section three thousand four hundred forty-one of the insurance
45 2. "Prearranged ride" shall have the meaning set forth in subsection
46 (b) of section three thousand four hundred forty-one of the insurance
48 3. "Transportation network company" shall have the meaning set forth
49 in subsection (b) of section three thousand four hundred forty-one of
50 the insurance law.
51 4. "Transportation network company driver" or "driver" shall have the
52 meaning set forth in subsection (b) of section three thousand four
53 hundred forty-one of the insurance law.
54 5. "Transportation network company rider" or "rider" shall have the
55 meaning set forth in subsection (b) of section three thousand four
56 hundred forty-one of the insurance law.
A. 6090--A 11
1 6. "Personal vehicle" shall have the meaning set forth in subsection
2 (b) of section three thousand four hundred forty-one of the insurance
4 7. "Transportation network services" means the provision of transpor-
5 tation by a transportation network driver to a transportation network
6 rider with whom the transportation network driver is matched through a
7 transportation network company. The term does not include services
8 provided either directly by or under contract with a political subdivi-
9 sion or other entity exempt from federal income tax under section 115 of
10 the federal "Internal Revenue Code of 1986", as amended.
11 8. "Transportation network vehicle" means a motor vehicle used by a
12 transportation network driver that is his or her own personal motor
13 vehicle and also used to provide a prearranged ride for transportation
14 network riders matched through a transportation network company's
15 digital network. A transportation network vehicle is not a taxicab, as
16 defined in section one hundred forty-eight-a of this chapter, or a
17 livery as defined in section one hundred twenty-one-e of this chapter.
18 9. "Unmatched period" means a period of time that begins when a trans-
19 portation network company driver is available to accept a requested ride
20 through a digital network and to provide transportation network
21 services, but has not yet accepted a requested ride and is not providing
22 transportation network services, and ends when a transportation network
23 company driver has accepted such a requested ride.
24 10. "Serious criminal offense" shall mean a conviction of (i) a felony
25 involving the use of a motor vehicle; (ii) a felony involving manufac-
26 turing, distributing or dispensing a drug as defined in section one
27 hundred fourteen-a of this chapter or possession of any such drug with
28 intent to manufacture, distribute or dispense such drug in which a motor
29 vehicle was used; (iii) a violation of subdivision one or two of section
30 six hundred of this chapter; (iv) operating a motor vehicle when, as a
31 result of prior violations committed while operating a motor vehicle,
32 the individual's driver's license is revoked, suspended, or canceled;
33 (v) causing a fatality through the negligent operation of a motor vehi-
34 cle, including but not limited to the crimes of vehicular manslaughter
35 or criminally negligent homicide; (vi) homicide; and (vii) a felony or
36 assault, sexual offenses, kidnapping, or burglary.
37 § 2202. Regulation of transportation network companies.
38 1. Notwithstanding any other provision of law, transportation network
39 companies are governed exclusively by this article.
40 2. The provisions of sections ninety-six, ninety-eight, ninety-nine,
41 one hundred three, one hundred sixteen, one hundred forty, one hundred
42 forty-two, one hundred forty-three, one hundred fifty-two, one hundred
43 fifty-six, one hundred fifty-seven, and one hundred fifty-eight of the
44 transportation law, and 17 NYCRR Pt. 720, 17 NYCRR Pt. 721, 17 NYCRR Pt.
45 730, and 17 NYCRR Pt. 741, shall not apply to transportation network
47 3. The provisions of subparagraph (v) of paragraph (a) of subdivision
48 two of section five hundred one of this chapter shall not apply to
49 transportation network companies or transportation network drivers.
50 § 2203. Registration and insurance.
51 1. A transportation network company shall obtain authorization to do
52 business in New York as required by section one thousand three hundred
53 one of the business corporation law.
54 2. A transportation network company shall cause to be filed with the
55 commissioner of motor vehicles documentation evidencing that a transpor-
56 tation network company driver or the transportation network company on
A. 6090--A 12
1 the driver's behalf maintains automobile insurance that satisfies the
2 requirements of section three thousand four hundred forty-one of the
3 insurance law.
4 § 2204. Operational requirements of transportation network companies.
5 1. The following requirements apply to the provision of transportation
6 network services:
7 (a) A transportation network company shall provide transportation
8 network services to the public in a nondiscriminatory manner, regardless
9 of geographic location of the departure point or destination, once the
10 driver and rider have been matched through the digital network, as
11 required by section one hundred six of the transportation law.
12 (b) A transportation network company shall not impose additional
13 charges for providing transportation network services to persons with
14 physical or mental disabilities because of those disabilities and shall
15 require transportation network company drivers to permit a service
16 animal to accompany a transportation network company rider on a prear-
17 ranged ride unless the presence of a service animal would significantly
18 compromise the health of the transportation network company driver due
19 to a medically diagnosed allergy. If a transportation network company
20 rider with physical or mental disabilities requires the use of the
21 transportation network company rider's mobility equipment, a transporta-
22 tion network company shall require transportation network company driv-
23 ers to store the mobility equipment in the transportation network vehi-
24 cle during a prearranged ride if the transportation network vehicle is
25 reasonably capable of storing the mobility equipment. If the transporta-
26 tion network company driver is unable to store a transportation network
27 company rider's mobility equipment in the transportation network vehi-
28 cle, the transportation network company driver shall refer the transpor-
29 tation network company rider to another transportation network company
30 driver or transportation service provider with a vehicle that is
31 equipped to accommodate the rider's mobility equipment.
32 (c) A transportation network company is not liable for a transporta-
33 tion network company driver's violation of paragraph (b) of this subdi-
34 vision unless the transportation network company driver's violation has
35 been previously reported to the transportation network company in writ-
36 ing, and the transportation network company has failed to reasonably
37 address the alleged violation. The commissioner shall afford a transpor-
38 tation network company the same due process rights afforded transporta-
39 tion providers in defending against civil penalties assessed by the
40 commissioner of motor vehicles.
41 (d) Although transportation network companies may provide platforms
42 allowing drivers and passengers to "rate" each other, a transportation
43 network company shall use reasonable efforts to ensure that such ratings
44 are not based on unlawful discrimination.
45 (e) A transportation network company shall make available to prospec-
46 tive transportation network riders an explanation of the method by which
47 the transportation network company calculates fares and the option to
48 determine an estimated fare on its digital network or website.
49 (f) Upon completion of a prearranged ride, a transportation network
50 company shall transmit to the transportation network company rider an
51 electronic receipt documenting: (i) the point of origin and destination
52 of the prearranged ride; (ii) the total duration and distance of the
53 prearranged ride; (iii) the total fare paid, including the base fare and
54 any additional charges incurred for distance traveled or duration of the
55 prearranged ride; and (iv) the driver's first name.
A. 6090--A 13
1 (g) A transportation network company shall make available to all
2 transportation network riders a customer support contact on its digital
3 network or website for transportation network company rider inquiries.
4 (h) Before permitting a person to act as a transportation network
5 company driver, a transportation network company shall confirm that the
6 person is at least twenty-one years of age and possesses: (i) a valid
7 driver's license; (ii) proof of automobile insurance; and (iii) proof of
8 a New York vehicle registration;
9 (i) Before permitting a person to act as a transportation network
10 company driver, a transportation network company shall require each
11 transportation network company driver to wear a safety belt while
12 performing transportation network services. The transportation network
13 company shall establish a driver training program for all transportation
14 network company drivers concerning safety and proper operation of a
15 transportation network vehicle prior to the driver being able to offer
17 (j) The department of criminal justice services shall, upon request,
18 provide to a transportation network company a prospective transportation
19 network company driver's criminal history or a transportation network
20 company shall obtain an equivalent criminal history from a third party
21 provider before permitting a person to act as a transportation network
22 company driver. A transportation company shall not permit an individual
23 to provide transportation network services as a transportation network
24 company driver if the individual has been convicted of a serious crimi-
25 nal offense.
26 (k) A transportation network company shall require all transportation
27 network company drivers to report any criminal convictions immediately
28 and shall no longer permit a transportation network company driver to
29 provide transportation network services if the transportation network
30 company becomes aware that the subject transportation network company
31 driver has been convicted of a serious criminal offense.
32 (l) Before permitting a person to act as a transportation network
33 company driver, a transportation network company shall conduct a review
34 of the driving record of every prospective transportation network compa-
35 ny driver and shall not permit an individual to become a transportation
36 network company driver if such individual has more than three moving
37 violations within the twelve month period prior to providing transporta-
38 tion network services as a transportation network company driver.
39 (m) A transportation network company shall institute a zero tolerance
40 intoxicating substance policy with respect to transportation network
41 company drivers as follows:
42 (i) the transportation network company shall include on its website,
43 digital network and transportation network company riders' receipts a
44 notice concerning the transportation network company's zero-tolerance
45 policy and the methods to report a driver whom the rider reasonably
46 suspects was under the influence of drugs or alcohol during the course
47 of the transportation network ride; and
48 (ii) promptly after a zero-tolerance complaint is filed, the transpor-
49 tation network company shall suspend the transportation network company
50 driver for further investigation.
51 (n) A transportation network company shall require that each transpor-
52 tation network vehicle displays a marking that identifies the vehicle as
53 a transportation network vehicle that is visible from the exterior of
54 the vehicle at all times during which the vehicle is being used as a
55 transportation network vehicle. The digital network used by a transpor-
56 tation network company to connect drivers and riders must display for
A. 6090--A 14
1 the transportation network company rider: a picture of the transporta-
2 tion network company driver and a picture of the transportation network
3 vehicle the transportation network company driver is approved to use,
4 including the license plate number to identify the transportation
5 network vehicle.
6 (o) A transportation network company shall not permit a transportation
7 network company driver to offer or provide transportation network
8 services for more than twelve consecutive hours.
9 (p) A transportation network company shall disclose, in writing, to
10 each prospective transportation network company driver the following:
11 (I) the terms of any insurance, including the types of coverage and
12 the limits for each coverage, under any policy that the transportation
13 network company maintains on the driver's behalf providing coverage
14 while the transportation network company driver uses a personal vehicle
15 in connection with a transportation network company's digital network;
17 (II) that the transportation network company driver's own private
18 passenger automobile insurance policy may not provide any coverage
19 during an unmatched period or while a transportation network company
20 driver is engaged in a prearranged ride, unless a contract or endorse-
21 ment providing such coverage has been obtained from the driver's private
22 passenger automobile insurer.
23 (q) Other than the disclosure of aggregated user data and other infor-
24 mation about transportation network users that is not personally iden-
25 tifiable, a transportation network company shall not disclose to a third
26 party any personally identifiable information concerning a user of the
27 transportation network company's digital network unless: (i) the trans-
28 portation network company obtains the user's consent to disclose
29 personally identifiable information; (ii) disclosure is necessary to
30 comply with a legal obligation; or (iii) disclosure is necessary to
31 protect or defend the terms and conditions for use of the service or to
32 investigate violations of the terms and conditions.
33 2. If any person files a complaint with the commissioner of motor
34 vehicles against a transportation network company or transportation
35 network company driver, the commissioner may inspect the transportation
36 network company's records as reasonably necessary to investigate and
37 resolve the complaint.
38 § 2205. Transportation network service limitations. A transportation
39 network company driver shall not provide transportation network services
40 unless a transportation network company has matched the transportation
41 network company driver to a transportation network rider through a
42 digital network. A transportation network company driver shall not
43 solicit or accept the on-demand summoning of a ride, otherwise known as
44 a "street hail".
45 § 2206. Vehicle requirements for transportation network vehicles.
46 1. The following requirements apply to the transportation network
48 (a) A transportation network vehicle must have at least four doors and
49 be designed to carry no more than eight passengers, including the trans-
50 portation network company driver.
51 (b) A transportation network vehicle shall display the name or logo of
52 the transportation network company affixed to the windshield in a form
53 and manner that is visible from the exterior of the vehicle.
54 (c) Each transportation network vehicle must be inspected no less
55 frequently than every twelve months by an official inspection station
56 licensed pursuant to section three hundred three of this chapter, or, if
A. 6090--A 15
1 the transportation network vehicle is registered in another state, by
2 the agency responsible for vehicle registration and inspection in that
3 state, and each transportation network vehicle must display a valid
4 inspection sticker indicating the date of the last inspection and/or the
5 expiration date, if such stickers are issued by the state of registra-
7 § 2207. Permit required for transportation network companies, penalty
8 for violation, and rules.
9 1. A person shall not operate a transportation network company in New
10 York without first having obtained a permit from the commissioner of
11 motor vehicles.
12 2. The commissioner of motor vehicles shall issue a permit to each
13 transportation network company that meets the requirements of this arti-
14 cle and pays an annual permit fee.
15 3. The annual permit fee shall be established and levied by the
16 commissioner of motor vehicles subject to the approval of the director
17 of the division of the budget in an amount that is reasonably sufficient
18 to raise funds to defray the expenses of the department in administering
19 and enforcing this article. The commissioner may promulgate the rules
20 and regulations necessary to administer the annual permit fee.
21 4. The commissioner of motor vehicles shall determine a reasonable
22 form and manner of application for a transportation network company
24 5. A permit may be suspended by the commissioner of motor vehicles for
25 failure to comply with the insurance, reporting, or safety requirements
26 of this article. Any such permit may thereafter be revoked in no less
27 than thirty days after the date of suspension ordered by the commission-
28 er of motor vehicles if the carrier does not comply with the rate,
29 insurance, annual reporting, or safety requirements of this article.
30 6. For a violation of this article or a failure to comply with a
31 commissioner of motor vehicles order, decision, or rule issued under
32 this article, a transportation network company is subject to the commis-
33 sioner's authority under this chapter.
34 7. The commissioner of motor vehicles may deny an application under
35 this article or refuse to renew the permit of a transportation network
36 company based on a determination that the transportation network company
37 has not satisfied a civil penalty arising out of an administrative or
38 enforcement action brought by the commissioner.
39 § 2208. Driver licensing requirement. Notwithstanding any other
40 provision of law, a class D driver's license shall be valid for the
41 performance of transportation network services by a transportation
42 network driver.
43 § 2209. Distribution of fees and penalties. All permit fees charged
44 and collected by the commissioner under this article shall be deposited
45 by the comptroller into the special obligation reserve and payment
46 account of the highway and bridge trust fund established pursuant to
47 section eighty-nine-b of the state finance law. All moneys recovered in
48 an action to recover a penalty or forfeiture shall be paid into the
49 state treasury to the credit of the general fund.
50 § 2210. Rules and inspections.
51 1. The commissioner may promulgate rules consistent with this article,
52 including rules concerning administration, fees, and safety requirements
53 so long as those rules do not expand the substantive requirements of
54 this article.
55 2. The commissioner may promulgate rules requiring a transportation
56 network company to maintain and file with the commissioner evidence of
A. 6090--A 16
1 financial responsibility and proof of the continued validity of the
2 insurance policy.
3 § 2211. Rule of construction. Nothing in this article authorizes or
4 shall be construed to authorize the provision of transportation network
5 services in any city with a population of one million or more.
6 § 11. This act shall take effect immediately.