Bill Number: H.B. 2262

                                                                                                               Ward Floor Amendment

                                                                                                 Reference to: CEM amendment

                                                                                        Amendment drafted by: Leg Council

 

 

The Ward Floor Amendment makes changes to provisions pertaining to transportation networks:

Insurance Requirements

 

• Allows the transportation network required insurance policy to be placed with an insurer authorized to transact business in Arizona or a surplus lines insurer.

 

• Specifies that the transportation network liability policy is not required to separately satisfy a transportation network operator’s (operator) personal insurance requirements.

 

• Requires a transportation network to cause its insurer to issue payment jointly to the operator and the primary lienholder on the covered vehicle or the business repairing the vehicle if the transportation network’s insurer makes a payment for a claim covered under comprehensive or collision coverage.

 

• Stipulates that an insurer issuing a personal automobile insurance policy has no duty to defend or indemnify on a liability claim if the claim occurs during a network trip and the policy contains a specific, rather than reasonable, exclusion for commercial use of the vehicle.

 

• Removes the specification that covered insurance claims involving uninsured and underinsured motorist coverage must be bodily injury claims.

 

 

 

Transportation Network Operators

 

• Prohibits a transportation network from allowing a person to be an operator if the person is convicted at any time for a violation pertaining to drug offenses.

 

• Removes language that required transportation networks to make the results of a driver license record check of an operator available to the Department of Weights and Measures (DWM).

 

• Requires operators to electronically file the following with DWM:
• information regarding the operator’s current Arizona driver license and current vehicle registration;
• proof meeting personal automobile liability insurance policy requirements and a completed vehicle safety inspection.

 

• Requires operators to display a copy of DWM’s transportation network operator certificate during a network trip.  Requires DWM to issue an electronic certificate within five business days after an operator files required information.

 

• Inserts additional actions that must be taken by a transportation network on receiving a complaint that an operator is under the influence of drugs or alcohol while providing a network trip.  The transportation network, in addition to immediately revoking the operator’s access to the digital platform and conducting an operation, must require the operator to take a drug test and permanently deny access to the digital platform.

 

• Requires a transportation network to notify potential operators before digital platform access that using the vehicle to provide network trips might violate the terms of the operator’s contract with a lienholder.

 

Trip Rate Calculation

 

• Requires any increase in the rate calculation method to be disclosed and accepted by the passenger before beginning the network trip.  This must be done in such a manner that the passenger’s ride request cannot be completed unless the passenger accepts the rate calculation increase through the application.

 

Civil Penalties

 

• Limits the civil penalties that may be imposed on a transportation network to at most $10,000 for any 30 day period.

 

• Specifies that an operator who violates transportation network provisions is subject to a civil penalty of at most $250 per violation, limited to $1,500 for any 30 day period.

 

• Allows a transportation network to request a hearing to review a civil penalty.  Requires DWM to conduct the hearing pursuant to the Uniform Administrative Hearing Procedures.

 

• Allows DWM, on receipt of a complaint, to request information specific to a purported violation from a transportation network, third party possessing relevant information or operator.

 

Miscellaneous

 

• Deletes the definition of transportation network service.

 

• Makes technical and conforming changes.

Fifty-first Legislature                                                      Ward

Second Regular Session                                                  H.B. 2262

 

WARD FLOOR AMENDMENT

SENATE AMENDMENTS TO H.B. 2262

(Reference to CEM amendment)

 

Page 9, strike lines 1 through 4, insert:

"56.  "Transportation network" means a company that uses a digital platform to match passengers to transportation network operators. Transportation network does not include the following:

(a)  This state or a county, a city, a town or a political subdivision of this state and any related entity, a nonprofit agency or any other public body that coordinates, operates, promotes or sponsors public transportation, carpool or vanpool services.

(b)  A program that is in place to meet federal air quality standards pursuant to section 49-404.

(c)  Any individual, company or activity that meets the requirements of a rental car agent or rental company as defined in section 20‑331 if all of the following apply:

(i)  Transportation is provided to another person.

(ii)  The route is predetermined.

(iii)  Any money exchanged between the provider of the transportation and the RECIPIENT does not exceed the cost of providing the transportation.

57.  "Transportation network operator" means an individual who uses a transportation network vehicle to provide transportation network trips pursuant to title 41, chapter 15, article 8.

58.  "Transportation network trip" means the time period that begins when a transportation network operator accepts a requested ride through the digital platform used by the transportation network, that continues while the transportation network operator transports the passenger and that ends when the passenger departs from the transportation network vehicle and the operator terminates the transportation network trip on the digital platform.

59.  "Transportation network vehicle" means a vehicle that is used by a transportation network operator to provide transportation network trips, that has at least four doors, that is designed to carry not more than eight passengers, including the driver, and that meets the criteria set forth in title 41, chapter 15, article 8."

Renumber to conform

Page 14, line 2, strike "services" insert "trips"

Strike lines 4, 5 and 6

Renumber to conform

Line 14, strike "services" insert "trips"

Page 15, line 19, strike "service" insert "trip"

Line 29, strike "bodily injury"

Line 32, strike "service"; after the period insert "Notwithstanding any provision of title 20 or 28, the insurance policy required by this paragraph may be placed with an insurer authorized to transact business in this state pursuant to title 20, chapter 2, article 1 or a surplus lines insurer pursuant to title 20, chapter 2, article 5.  A transportation network operator's personal automobile liability insurance policy that complies with the requirements of title 28, chapter 9 is sufficient to satisfy the financial responsibility requirements of title 28, chapter 9.  The insurance policy required by this paragraph is not required to separately satisfy the requirements of title 28, chapter 9."

Page 16, line 1, strike "services" insert "trips"

Line 5, after "23" insert ", 34"

Line 8, strike "services" insert "trips"

Line 9, after the period strike remainder of line

Strike line 10

Line 11, strike "on request."

Strike lines 19 through 27, insert:

"8.  Prohibit the use of drugs and alcohol or the operation of a transportation network vehicle by a transportation network operator while under the influence of drugs or alcohol during a transportation network trip. On receiving a complaint that a transportation network operator is under the influence of drugs or alcohol while providing a transportation network trip, the transportation network shall:

(a) immediately revoke the transportation network operator's access to its digital platform.

(b) conduct an investigation.

(c) require the operator to take a drug test.

(d) permanently deny access to the digital platform to any operator who violates this paragraph."

Page 16, line 30, after "that" insert ":

(a)"; strike "may" insert "might"

Between lines 31 and 32, insert:

"(b)  Using the vehicle to provide transportation network trips may violate the terms of the operator's contract with a lienholder.

10.  Cause its insurer to issue payment jointly to the transportation network operator and the primary lienholder on the covered vehicle or the business repairing the vehicle if the transportation network's insurer makes a payment for a claim covered under comprehensive or collision coverage."

Line 33, strike "services" insert "trips"

Line 35, after the period insert "IF the transportation network temporarily increases the rate calculation method, the increase must be disclosed and accepted by the passenger before beginning the transportation network trip in such a manner that the passenger's ride request cannot be completed unless the passenger accepts the rate calculation increase through the application."

Page 17, line 5, after "fare" insert "or donation"

Strike lines 14 and 15

Renumber to conform

Line 17, strike "services" insert "trips"

Between lines 18 and 19, insert:

"6. Electronically file or cause to be filed on a form prescribed by the department all of the following:

(i)  information regarding the operator's current Arizona driver license.

(ii)  information regarding the operator's current vehicle registration.

(iii)  Proof meeting the requirements of section 28-4077 of the operator's personal automobile liability insurance policy.

(iv)  Proof of a completed safety inspection pursuant to subsection A, paragraph 3 of this section.

7.  Display a copy of the department's transportation network operator certificate issued pursuant to subsection E of this section during a transportation network trip."

Page 17, line 21, strike "Notwithstanding any other law,"

Line 23, strike "reasonable" insert "specific"; after the first "for" insert "commercial"

Line 28, strike "must apply" insert "is applicable"

Strike lines 34 and 35

Page 18, strike lines 1, 2 and 3, insert:

"E.  The department shall issue an electronic certificate in a form prescribed by the department within five business days after a transportation network operator files the information required by subsection C of this section.

F.  A transportation network that violates subsection A of this section is subject to a civil penalty not to exceed one thousand dollars for each violation and not more than ten thousand dollars for any thirty‑day period.  A transportation network operator who violates licensing, registration and insurance requirements of this article is subject to a civil penalty pursuant to title 28.  A transportation network operator who violates this article, except for licensing, registration and insurance requirements, is subject to a civil penalty not to exceed two hundred fifty dollars for each violation and not more than one thousand five hundred dollars for any thirty‑day period.  A transportation network may request a hearing to review a civil penalty imposed under this subsection.  The department shall conduct the hearing pursuant to chapter 6, article 10 of this title.

G.  On receipt of a complaint for a violation of this article, the department may request information specific to the purported violation from a transportation network, a third party possessing relevant information or a transportation network operator."

Reletter to conform

Amend title to conform

 

 

 

2262kw.doc

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