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HF 3032

1st Engrossment - 90th Legislature (2017 - 2018) Posted on 03/08/2018 04:22pm

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
relating to consumer protection; regulating transportation network companies;
amending Minnesota Statutes 2016, sections 13.712, by adding a subdivision;
221.012, subdivision 38; proposing coding for new law in Minnesota Statutes,
chapter 325F.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2016, section 13.712, is amended by adding a subdivision
to read:


new text begin Subd. 6. new text end

new text begin Transportation network company. new text end

new text begin Data obtained by the commissioner from
a transportation network company is governed by section 325F.663, subdivision 11.
new text end

Sec. 2.

Minnesota Statutes 2016, section 221.012, subdivision 38, is amended to read:


Subd. 38.

Small vehicle passenger service.

(a) "Small vehicle passenger service" means
a service provided by a person engaged in the for-hire transportation of passengers in a
vehicle designed to transport seven or fewer persons, including the driver.

(b) In the metropolitan area as defined in section 473.121, subdivision 2, "small vehicle
passenger service" also includes for-hire transportation of persons who are certified by the
Metropolitan Council to use special transportation service provided under section 473.386,
in a vehicle designed to transport not more than 15 persons including the driver, that is
equipped with a wheelchair lift and at least three wheelchair securement positions.

(c) Small vehicle passenger service does not include a motor carrier of railroad employeesnew text begin
or service provided by a transportation network company, as defined in section 65B.472,
subdivision 1
new text end .

Sec. 3.

new text begin [325F.663] TRANSPORTATION NETWORK COMPANIES.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have
the meanings given.
new text end

new text begin (b) "Commissioner" means the commissioner of commerce.
new text end

new text begin (c) "Digital identification" means information stored on a transportation network
company's digital network that:
new text end

new text begin (1) is accessible by a driver;
new text end

new text begin (2) serves as evidence of the identity of the driver;
new text end

new text begin (3) serves as evidence of the insurance coverage required under section 65B.472;
new text end

new text begin (4) displays a photo of the driver;
new text end

new text begin (5) displays an image of the make and model of the transportation network company
vehicle; and
new text end

new text begin (6) identifies the make and model, as well as the license plate number, of the TNC
vehicle.
new text end

new text begin (d) "Digital network" has the meaning given in section 65B.472, subdivision 1.
new text end

new text begin (e) "Prearranged ride" has the meaning given in section 65B.472, subdivision 1.
new text end

new text begin (f) "Transportation network company" or "TNC" has the meaning given in section
65B.472, subdivision 1.
new text end

new text begin (g) "Transportation network company driver" or "driver" has the meaning given in
section 65B.472, subdivision 1. Transportation network company drivers are not common
carriers or motor carriers under chapter 221.
new text end

new text begin (h) "Transportation network company rider" or "rider" has the meaning given in section
65B.472, subdivision 1.
new text end

new text begin (i) "Transportation network company vehicle" or "TNC vehicle" has the meaning given
to "personal vehicle" in section 65B.472, subdivision 1.
new text end

new text begin Subd. 2. new text end

new text begin Transportation network company account. new text end

new text begin (a) A transportation network
company account is established in the special revenue fund. The account consists of fees
collected under subdivision 3 and funds donated, allotted, transferred, or otherwise provided
to the account.
new text end

new text begin (b) Subject to appropriations made in law, the commissioner may use funds in the account
to pay administrative costs related to this section.
new text end

new text begin Subd. 3. new text end

new text begin Transportation network company; general operating requirements. new text end

new text begin (a) In
order to operate in Minnesota, a transportation network company must obtain a license from
the commissioner.
new text end

new text begin (b) The commissioner must issue a license to a transportation network company that
meets the requirements of this section and pays an annual fee of $5,000. The annual fee
covers all of a transportation network company's drivers. The commissioner is prohibited
from requiring a per-driver or per-vehicle fee.
new text end

new text begin (c) A transportation network company must (1) be authorized or registered to do business
in Minnesota, and (2) maintain an agent for service of process in Minnesota.
new text end

new text begin Subd. 4. new text end

new text begin Transportation network company; fare requirements. new text end

new text begin (a) A transportation
network company may charge a fare for a prearranged ride provided to a rider if the
transportation network company discloses the fare or fare calculation method to the rider
via the digital network. If the fare is not disclosed to the rider before the prearranged ride
begins, the transportation network company must provide the rider with the option to receive
an estimated fare before the rider enters a TNC vehicle.
new text end

new text begin (b) Any payment by a rider for a prearranged ride by a driver must be made electronically
through the digital network.
new text end

new text begin (c) A transportation network company must provide the following to a rider before the
rider enters a TNC vehicle:
new text end

new text begin (1) the driver's first name;
new text end

new text begin (2) the make, model, and license plate number of the TNC vehicle; and
new text end

new text begin (3) the method by which the transportation network company calculates the applicable
rate or fare being charged.
new text end

new text begin (d) Within a reasonable time following the completion of a prearranged ride, the
transportation network company must transmit a receipt to the rider through electronic mail,
text message, or other electronic means. The receipt must include:
new text end

new text begin (1) the origin and destination of the trip;
new text end

new text begin (2) the total time and distance of the trip; and
new text end

new text begin (3) an itemization of the total fare paid, if any.
new text end

new text begin Subd. 5. new text end

new text begin Driver qualifications. new text end

new text begin (a) Before permitting any individual to act as a driver,
a transportation network company must:
new text end

new text begin (1) confirm that the individual is at least 19 years of age, holds a valid driver's license,
and possesses proof of registration and has a plan of reparation security under section 65B.48
for the TNC vehicle;
new text end

new text begin (2) conduct a local, state, and national background check of the individual, including a
query of (i) the multistate/multijurisdiction criminal records locator or other similar
commercial national database, and (ii) the U.S. Department of Justice national sex offender
public Web site; and
new text end

new text begin (3) obtain and review a driving history report for the individual.
new text end

new text begin (b) A transportation network company must not permit an individual to act as a driver
if the individual:
new text end

new text begin (1) has been convicted of more than three moving violations, as defined in section 171.04,
subdivision 1, within the past three years;
new text end

new text begin (2) has been convicted of a violation under any of the following within the past three
years:
new text end

new text begin (i) section 169.13;
new text end

new text begin (ii) section 609.487, subdivision 3 or 4; or
new text end

new text begin (iii) section 171.24;
new text end

new text begin (3) has had a driver's license revoked pursuant to section 171.17, subdivision 1, paragraph
(a), clauses (1) to (4) or (8) to (10), within the past seven years;
new text end

new text begin (4) has been convicted of a violation under any of the following within the past seven
years:
new text end

new text begin (i) a background check crime, as defined in section 299C.67, subdivision 2; or
new text end

new text begin (ii) a felony violation of section 609.595 or 609.821; or
new text end

new text begin (5) is listed on the U.S. Department of Justice national sex offender public Web site.
new text end

new text begin Subd. 6. new text end

new text begin Driver operating requirements. new text end

new text begin (a) A driver is prohibited from:
new text end

new text begin (1) providing prearranged rides unless the rider has been matched to the driver through
the digital network;
new text end

new text begin (2) soliciting a ride or accepting a street hail request for a ride; or
new text end

new text begin (3) soliciting or accepting cash payments for a fare from a rider.
new text end

new text begin (b) A driver must display a consistent and distinctive sign or emblem, that has been
approved by the commissioner, on the TNC vehicle at all times while the driver is active
on the digital network. The sign or emblem must:
new text end

new text begin (1) be sufficiently large and color-contrasted to be readable during daylight hours from
a distance of at least 50 feet;
new text end

new text begin (2) be reflective, illuminated, or otherwise visible in dark conditions; and
new text end

new text begin (3) sufficiently identify a TNC vehicle as being associated with the transportation network
company.
new text end

new text begin (c) A driver may refuse to transport a rider if the rider acts in an unlawful, disorderly,
or endangering manner.
new text end

new text begin (d) Upon request of a peace officer, a driver must display digital identification and
electronic evidence that the rider was matched through the digital network. If the information
described in this paragraph is contained on an electronic device, the driver is not required
to relinquish possession of the electronic device.
new text end

new text begin Subd. 7. new text end

new text begin TNC vehicle requirements. new text end

new text begin (a) Before permitting a TNC vehicle to be used
to provide prearranged rides, a transportation network company must conduct or confirm
that the TNC vehicle has undergone and passed a safety inspection.
new text end

new text begin (b) At a minimum, the safety inspection must evaluate the following components of the
vehicle:
new text end

new text begin (1) brake system;
new text end

new text begin (2) parking brakes;
new text end

new text begin (3) steering mechanism;
new text end

new text begin (4) windshield;
new text end

new text begin (5) rear window and other glass;
new text end

new text begin (6) windshield wipers;
new text end

new text begin (7) headlights;
new text end

new text begin (8) taillights;
new text end

new text begin (9) brake lights;
new text end

new text begin (10) turn signal lights;
new text end

new text begin (11) doors;
new text end

new text begin (12) front seat adjustment mechanism;
new text end

new text begin (13) horn;
new text end

new text begin (14) speedometer;
new text end

new text begin (15) bumpers;
new text end

new text begin (16) muffler and exhaust system;
new text end

new text begin (17) tires, including tread depth;
new text end

new text begin (18) interior and exterior mirrors; and
new text end

new text begin (19) safety belts.
new text end

new text begin Subd. 8. new text end

new text begin Zero-tolerance intoxicating substance policy. new text end

new text begin (a) A transportation network
company must implement a zero-tolerance intoxicating substance policy for drivers that
prohibits any amount of driver intoxication while providing a prearranged drive. The
transportation network company must include on its Web site a notice concerning the
transportation network company's intoxicating substance policy and include a means for a
rider or another individual to submit a complaint regarding a suspected violation of the
policy.
new text end

new text begin (b) Upon receipt of a rider complaint alleging a violation of the intoxicating substance
policy, the transportation network company must immediately suspend the driver's access
to the digital network and conduct an investigation into the reported incident. At a minimum,
the suspension must last for the duration of the investigation.
new text end

new text begin Subd. 9. new text end

new text begin Nondiscrimination and accessibility. new text end

new text begin (a) A transportation network company
must implement a policy that prohibits discrimination on the basis of destination, race, color,
national origin, religious belief or affiliation, sex, disability, age, sexual orientation, or
gender identity with respect to all potential riders. The policy must also prohibit drivers
from refusing to provide service to an individual with a service animal.
new text end

new text begin (b) A transportation network company must notify all drivers of the nondiscrimination
policy. All drivers must comply with the nondiscrimination policy.
new text end

new text begin (c) A transportation network company is prohibited from imposing any additional charge
on a rider with a physical disability because of the disability.
new text end

new text begin (d) A transportation network company must provide a rider an opportunity to indicate
whether the rider requires a wheelchair-accessible vehicle. If a wheelchair-accessible vehicle
cannot be provided, the transportation network company must direct the requesting rider to
an alternate provider of wheelchair-accessible service, if one is available.
new text end

new text begin Subd. 10. new text end

new text begin Records; retention. new text end

new text begin (a) A transportation network company must maintain
records documenting compliance with the requirements of this section for two years from
the date of documentation.
new text end

new text begin (b) The commissioner must provide an electronic means to submit all data required
under this section.
new text end

new text begin Subd. 11. new text end

new text begin Data practices; liability. new text end

new text begin (a) Data disclosed to the commissioner by a
transportation network company, including the names, addresses, and any other personally
identifiable information of drivers or riders, is nonpublic data or private data on individuals,
as defined in section 13.02, subdivisions 9 and 12. If data provided to the commissioner
pursuant to this section is sought through a court order or subpoena, the commissioner must
promptly notify the transportation network company. If there is a breach of the security of
the data as provided under section 13.055, the commissioner must notify the transportation
network company in the same manner as provided for individuals under that section.
new text end

new text begin (b) A transportation network company is not civilly or criminally liable for a violation
of chapter 13 by the commissioner.
new text end

new text begin Subd. 12. new text end

new text begin Uniform statewide regulation. new text end

new text begin (a) This section applies uniformly throughout
the state and in all political subdivisions.
new text end

new text begin (b) This section supersedes any ordinance or other regulation adopted by a political
subdivision that specifically governs transportation network companies, drivers, or TNC
vehicles, including those adopted before the effective date of this section.
new text end

new text begin (c) A political subdivision is prohibited from:
new text end

new text begin (1) imposing any fee on a transportation network company, driver, or TNC vehicle if
the fee relates to (i) providing prearranged rides, (ii) entry into the jurisdiction of the political
subdivision, or (iii) operations of the transportation network company; or
new text end

new text begin (2) requiring a transportation network company or driver to obtain a business license or
other similar authorization to operate within the political subdivision's jurisdiction.
new text end

new text begin (d) An airport is prohibited from imposing any regulatory or licensing requirement that
supplements or is inconsistent with the requirements in this section, except that an airport
may:
new text end

new text begin (1) charge reasonable fees for use of the airport or its facilities;
new text end

new text begin (2) require that a transportation network company enter into an agreement with or
otherwise obtain authorization from an airport prior to allowing TNC drivers to pick up
passengers at the airport; and
new text end

new text begin (3) adopt reasonable regulations governing the operation of TNC vehicles at the airport,
including procedures governing staging, dropping off or picking up passengers at the airport,
or use of airport facilities.
new text end

Sec. 4. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 3 are effective January 1, 2019, and apply to transportation network
companies in operation on or after that date.
new text end