SF 4780

3rd Engrossment - 93rd Legislature (2023 - 2024) Posted on 05/09/2024 12:58pm

A bill for an act
relating to labor; regulating transportation network companies; providing injunctive
relief; appropriating money; amending Minnesota Statutes 2022, section 65B.472;
proposing coding for new law as Minnesota Statutes, chapter 181C.

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

Section 1.

Minnesota Statutes 2022, section 65B.472, is amended to read:

65B.472 TRANSPORTATION NETWORK FINANCIAL RESPONSIBILITY.

Subdivision 1.

Definitions.

(a) Unless a different meaning is expressly made applicable,
the terms defined in paragraphs (b) through deleted text begin (g) deleted text end new text begin (p) new text end have the meanings given them for the
purposes of this deleted text begin chapter deleted text end new text begin section new text end .

(b) deleted text begin A deleted text end "Digital network" means any online-enabled application, software, website, or
system offered or utilized by a transportation network company that enables the
prearrangement of rides with transportation network company drivers.

new text begin (c) "Disability and income loss benefits" has the meaning given in section 65B.44,
subdivision 3, subject to the weekly maximum amount and with a maximum time period
of 130 weeks after the injury.
new text end

new text begin (d) "P1," "P2," and "P3" have the meanings given in section 181C.01, subdivision 4.
new text end

new text begin (e) "Funeral and burial expenses" has the meaning given in section 65B.44, subdivision
4.
new text end

new text begin (f) "Medical expense benefits" has the meaning given in section 65B.44, subdivision 2,
except that payment for rehabilitative services is only required when the services are
medically necessary.
new text end

new text begin (g) "Personal injury" means a physical injury or mental impairment arising out of a
physical injury in the course of a prearranged ride. A personal injury is only covered if the
injury occurs to a driver during P2 or P3, except as provided under subdivision 2, paragraph
(d). A personal injury claimant is subject to the requirements of section 65B.56.
new text end

deleted text begin (c) A deleted text end new text begin (h) new text end "Personal vehicle" means a vehicle that is used by a deleted text begin transportation network
company deleted text end new text begin TNC new text end driver in connection with providing a prearranged ride and is:

(1) owned, leased, or otherwise authorized for use by the deleted text begin transportation network company deleted text end
driver; and

(2) not a taxicab, limousine, for-hire vehicle, or a private passenger vehicle driven by a
volunteer driver.

deleted text begin (d) A deleted text end new text begin (i) new text end "Prearranged ride" means the provision of transportation by a driver to a rider,
beginning when a driver accepts a ride requested by a rider through a digital network
controlled by a transportation network company, continuing while the driver transports a
requesting rider, and ending when the last requesting rider departs from the personal vehicle.
A prearranged ride does not include transportation provided using a taxicab, limousine, or
other for-hire vehicle.

new text begin (j) "Replacement services loss benefits" has the meaning given in section 65B.44,
subdivision 5, subject to the weekly maximum amount and with a maximum time period
of 130 weeks after the injury.
new text end

new text begin (k) "Survivors economic loss benefits" has the meaning given in section 65B.44,
subdivision 6, subject to the weekly maximum amount and with a maximum time period
of 130 weeks after death.
new text end

new text begin (l) "Survivors replacement services loss benefits" has the meaning given in section
65B.44, subdivision 7, subject to the weekly maximum amount and with a maximum time
period of 130 weeks after death.
new text end

deleted text begin (e) A deleted text end new text begin (m) new text end "Transportation network company" new text begin or "TNC" new text end means a corporation, partnership,
sole proprietorship, or other entity that is operating in Minnesota that uses a digital network
to connect transportation network company riders to transportation network company drivers
who provide prearranged rides.

deleted text begin (f) A deleted text end new text begin (n) new text end "Transportation network company driver new text begin , new text end " new text begin "TNC driver," new text end or "driver" means
an individual who:

(1) receives connections to potential riders and related services from a transportation
network company in exchange for payment of a fee to the transportation network company;
and

(2) uses a personal vehicle to provide a prearranged ride to riders upon connection
through a digital network controlled by a transportation network company in return for
compensation or payment of a fee.

deleted text begin (g) A deleted text end new text begin (o) new text end "Transportation network company rider new text begin , new text end " new text begin "TNC rider," new text end or "rider" means an
individual or persons who use a transportation network company's digital network to connect
with a transportation network driver who provides prearranged rides to the rider in the
driver's personal vehicle between points chosen by the rider.

deleted text begin (h) A deleted text end new text begin (p) new text end "Volunteer driver" means an individual who transports persons or goods on
behalf of a nonprofit entity or governmental unit in a private passenger vehicle and receives
no compensation for services provided other than the reimbursement of actual expenses.

Subd. 2.

Maintenance of transportation network financial responsibility.

(a) A
transportation network company driver or transportation network company on the driver's
behalf shall maintain primary automobile insurance that recognizes that the driver is a
transportation network company driver or otherwise uses a vehicle to transport passengers
for compensation and covers the driver deleted text begin : deleted text end new text begin during P1, P2, and P3.
new text end

deleted text begin (1) while the driver is logged on to the transportation network company's digital network;
or
deleted text end

deleted text begin (2) while the driver is engaged in a prearranged ride.
deleted text end

(b) new text begin During P1, new text end the following automobile insurance requirements apply deleted text begin while a
participating transportation network company driver is logged on to the transportation
network company's digital network and is available to receive transportation requests but
is not engaged in a prearranged ride deleted text end :

(1) primary coverage insuring against loss resulting from liability imposed by law for
injury and property damage, including the requirements of section 65B.49, subdivision 3,
in the amount of not less than $50,000 because of death or bodily injury to one person in
any accident, $100,000 because of death or bodily injury to two or more persons in any
accident, and $30,000 for injury to or destruction of property of others in any one accident;

(2) security for the payment of basic economic loss benefits where required by section
65B.44 pursuant to the priority requirements of section 65B.47. A transportation network
company and a deleted text begin transportation network company deleted text end driver, during the period set forth in this
paragraph, are deemed to be in the business of transporting persons for purposes of section
65B.47, subdivision 1, and the insurance required under this subdivision shall be deemed
to cover the vehicle during the period set forth in this paragraph;

(3) primary uninsured motorist coverage and primary underinsured motorist coverage
where required by section 65B.49, subdivisions 3a and 4a; and

(4) the coverage requirements of this subdivision may be satisfied by any of the following:

(i) automobile insurance maintained by the transportation network company driver;

(ii) automobile insurance maintained by the transportation network company; or

(iii) any combination of items (i) and (ii).

(c) new text begin During P2 and P3, new text end the following automobile insurance requirements apply deleted text begin while a
transportation network company driver is engaged in a prearranged ride deleted text end :

(1) primary coverage insuring against loss resulting from liability imposed by law for
injury and property damage, including the requirements of section 65B.49, in the amount
of not less than $1,500,000 for death, injury, or destruction of property of others;

(2) security for the payment of basic economic loss benefits where required by section
65B.44 pursuant to the priority requirements of section 65B.47. A transportation network
company and a transportation network company driver, during the period set forth in this
paragraph, are deemed to be in the business of transporting persons for purposes of section
65B.47, subdivision 1, and the insurance required under this subdivision shall be deemed
to cover the vehicle during the period set forth in this paragraph;

(3) primary uninsured motorist coverage and primary underinsured motorist coverage
where required by section 65B.49, subdivisions 3a and 4a; and

(4) the coverage requirements of this subdivision may be satisfied by any of the following:

(i) automobile insurance maintained by the transportation network company driver;

(ii) automobile insurance maintained by the transportation network company; or

(iii) any combination of items (i) and (ii).

new text begin (d) During P2 and P3, a TNC must maintain insurance on behalf of, and at no cost to,
the driver that provides reimbursement for all loss suffered through personal injury arising
from the driver's work for the TNC that is not otherwise covered by the insurance required
under paragraphs (b) and (c). A driver shall not be charged by the TNC or have their
compensation lowered because of the insurance. The insurance coverage must be in the
amount of not less than $1,000,000 per incident due to personal injury and include the
following types of coverage: medical expense benefits, disability and income loss benefits,
funeral and burial expenses, replacement services loss benefits, survivors economic loss
benefits, and survivors replacement services loss benefits. Insurance coverage under this
paragraph includes personal injury sustained while at the drop-off location immediately
following the conclusion of a prearranged ride.
new text end

new text begin (e) Any insurer authorized to write accident and sickness insurance in this state have
the power to issue the blanket accident and sickness policy described in paragraph (d).
new text end

new text begin (f) A policy of blanket accident and sickness insurance as described in paragraph (d)
must include in substance the provisions required for individual policies that are applicable
to blanket accident and sickness insurance and the following provisions:
new text end

new text begin (1) a provision that the policy and the application of the policyholder constitutes the
entire contract between the parties, and that, in the absence of fraud, all statements made
by the policyholder are deemed representations and not warranties, and that a statement
made for the purpose of affecting insurance does not avoid insurance or reduce benefits
unless the statement is contained in a written instrument signed by the policyholder, a copy
of which has been furnished to such policyholder; and
new text end

new text begin (2) a provision that to the group or class originally insured be added from time to time
all new persons eligible for coverage.
new text end

new text begin (g) If an injury is covered by blanket accident and sickness insurance maintained by
more than one TNC, the insurer of the TNC against whom a claim is filed is entitled to
contribution for the pro rata share of coverage attributable to one or more other TNCs up
to the coverages and limits in paragraph (d).
new text end

new text begin (h) Notwithstanding any law to the contrary, amounts paid or payable under the coverages
required by section 65B.49, subdivisions 3a and 4a, shall be reduced by the total amount
of benefits paid or payable under insurance provided pursuant to paragraph (d).
new text end

deleted text begin (d) deleted text end new text begin (i) new text end If insurance maintained by the driver in paragraph (b) or (c) has lapsed or does
not provide the required coverage, insurance maintained by a transportation network company
shall provide the coverage required by this subdivision beginning with the first dollar of a
claim and have the duty to defend the claim.

deleted text begin (e) deleted text end new text begin (j) new text end Coverage under an automobile insurance policy maintained by the transportation
network company shall not be dependent on a personal automobile insurer first denying a
claim nor shall a personal automobile insurance policy be required to first deny a claim.

deleted text begin (f) deleted text end new text begin (k) new text end Insurance required by this subdivision must satisfy the requirements of chapter
60A.

deleted text begin (g) deleted text end new text begin (l) new text end Insurance satisfying the requirements of this subdivision shall be deemed to satisfy
the financial responsibility requirements under the Minnesota No-Fault Automobile Insurance
Act, sections 65B.41 to 65B.71.

deleted text begin (h) deleted text end new text begin (m) new text end A transportation network company driver shall carry proof of coverage satisfying
paragraphs (b) and (c) at all times during the driver's use of a vehicle in connection with a
transportation network company's digital network. In the event of an accident, a transportation
network company driver shall provide this insurance coverage information to the directly
interested parties, automobile insurers, and investigating police officers upon request pursuant
to section 65B.482, subdivision 1. Upon such request, a transportation network company
driver shall also disclose to directly interested parties, automobile insurers, and investigating
police officers whether the driver was logged on to the transportation network company's
digital network or on a prearranged ride at the time of an accident.

Subd. 3.

Disclosure to transportation network company drivers.

The transportation
network company shall disclose in writing to transportation network company drivers the
following before they are allowed to accept a request for a prearranged ride on the
transportation network company's digital network:

(1) the insurance coverage, including the types of coverage and the limits for each
coverage new text begin under subdivision 2, paragraphs (b), (c), and (d) new text end , that the transportation network
company provides while the transportation network company driver uses a personal vehicle
in connection with a transportation network company's digital network;

(2) that the transportation network company driver's own automobile insurance policy
might not provide any coverage while the driver is logged on to the transportation network
company's digital network and is available to receive transportation requests or is engaged
in a prearranged ride depending on its terms; and

(3) that using a vehicle with a lien against the vehicle to provide deleted text begin transportation network
services deleted text end new text begin prearranged rides new text end may violate the transportation network driver's contract with the
lienholder.

Subd. 4.

Automobile insurance provisions.

(a) Insurers that write automobile insurance
in Minnesota may exclude any and all coverage afforded under the owner's insurance policy
for any loss or injury that occurs deleted text begin while a driver is logged on to a transportation network
company's digital network or while a driver provides a prearranged ride deleted text end new text begin during P1, P2, and
P3 new text end . This right to exclude all coverage may apply to any coverage included in an automobile
insurance policy including, but not limited to:

(1) liability coverage for bodily injury and property damage;

(2) uninsured and underinsured motorist coverage;

(3) basic economic loss benefits as defined under section 65B.44;

(4) medical payments coverage;

(5) comprehensive physical damage coverage; and

(6) collision physical damage coverage.

These exclusions apply notwithstanding any requirement under the Minnesota No-Fault
Automobile Insurance Act, sections 65B.41 to 65B.71. Nothing in this section implies or
requires that a personal automobile insurance policy provide coverage deleted text begin while the driver is
logged on to the transportation network company's digital network, while the driver is
engaged in a prearranged ride, or while the driver otherwise uses a vehicle to transport
passengers for compensation deleted text end new text begin during P1, P2, or P3, or while the driver otherwise uses a
vehicle to transport passengers for compensation new text end .

Nothing in this section shall be deemed to preclude an insurer from providing coverage
for the transportation network company driver's vehicle, if it so chooses to do so by contract
or endorsement.

(b) Automobile insurers that exclude coverage as permitted in paragraph (a) shall have
no duty to defend or indemnify any claim expressly excluded thereunder. Nothing in this
section shall be deemed to invalidate or limit an exclusion contained in a policy, including
any policy in use or approved for use in Minnesota prior to May 19, 2015, that excludes
coverage for vehicles used to carry persons or property for a charge or available for hire by
the public.

(c) An automobile insurer that defends or indemnifies a claim against a driver that is
excluded under the terms of its policy as permitted in paragraph (a) shall have a right of
contribution against other insurers that provide automobile insurance to the same driver in
satisfaction of the coverage requirements of subdivision 2 at the time of loss.

(d) In a claims coverage investigation, transportation network companies and any insurer
potentially providing coverage under subdivision 2 shall cooperate to facilitate the exchange
of relevant information with directly involved parties and any insurer of the transportation
network company driver if applicable, including the precise times that a transportation
network company driver logged on and off of the transportation network company's digital
network in the 12-hour period immediately preceding and in the 12-hour period immediately
following the accident and disclose to one another a clear description of the coverage,
exclusions, and limits provided under any automobile insurance maintained under subdivision
2.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2025.
new text end

Sec. 2.

new text begin [181C.01] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Application. new text end

new text begin For purposes of this chapter, the terms defined in this section
have the meanings given.
new text end

new text begin Subd. 2. new text end

new text begin Deactivation. new text end

new text begin "Deactivation" means a TNC blocking a driver's access to a
digital network, suspending a driver, or changing a driver's status from eligible to ineligible
to provide prearranged rides for a TNC for more than 12 hours, or more than 72 hours when
the TNC must investigate a claim against a driver. Deactivation does not include a driver's
loss of access to the digital network that is contingent on a driver's compliance with licensing,
insurance, or regulatory requirements or that can be resolved through unilateral action by
the driver. For the purposes of this chapter, "prearranged ride" has the meaning given in
section 65B.472, subdivision 1.
new text end

new text begin Subd. 3. new text end

new text begin Digital network. new text end

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

new text begin Subd. 4. new text end

new text begin Driver time periods. new text end

new text begin "Driver time periods" are divided into three exclusive
segments which have the following meanings:
new text end

new text begin (1) "period 1" or "P1" means the time when a driver is logged into a TNC application,
but has not accepted a ride offer;
new text end

new text begin (2) "period 2" or "P2" means the time when a driver is proceeding to pick up a rider
after choosing to accept a ride offer; and
new text end

new text begin (3) "period 3" or "P3" means the time when a driver is transporting a rider from a pickup
location to a drop-off location.
new text end

new text begin Subd. 5. new text end

new text begin Personal vehicle. new text end

new text begin "Personal vehicle" has the meaning given in section 65B.472,
subdivision 1.
new text end

new text begin Subd. 6. new text end

new text begin Transportation network company. new text end

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

new text begin Subd. 7. new text end

new text begin Transportation network company driver. new text end

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

new text begin Subd. 8. new text end

new text begin Transportation network company rider. new text end

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

Sec. 3.

new text begin [181C.02] NOTICE AND PAY TRANSPARENCY.
new text end

new text begin Subdivision 1. new text end

new text begin Compensation notice. new text end

new text begin (a) Upon initial or subsequent account activation,
and annually each year while a driver continues to maintain an account with the TNC, a
TNC must provide written notice of compensation, or a compensation policy, if any, to each
driver containing the following information:
new text end

new text begin (1) the right to legally required minimum compensation under section 181C.03;
new text end

new text begin (2) the frequency and manner of a driver's pay;
new text end

new text begin (3) the rights and remedies available to a driver for a TNC's failure to comply with legal
obligations related to minimum compensation; and
new text end

new text begin (4) the driver's right to elect coverage of paid family and medical leave benefits, as
provided under chapter 268B.
new text end

new text begin (b) Notice under this subdivision must be provided in written plain language and made
available in English, Amharic, Arabic, Hmong, Oromo, Somali, and Spanish. TNCs operating
in Minnesota must consider updating the languages in which they offer the notice each year.
new text end

new text begin (c) The TNC must provide notice to a driver in writing or electronically of any changes
to the driver's compensation policy at least 48 hours before the date the changes take effect.
new text end

new text begin Subd. 2. new text end

new text begin Assignment notice. new text end

new text begin When a TNC alerts a driver of a possible assignment to
transport a rider, the ride offer must be available for sufficient time for the driver to review,
and the TNC must indicate:
new text end

new text begin (1) the estimated travel time and number of miles from the driver's current location to
the pickup location for P2;
new text end

new text begin (2) the estimated travel time and number of miles for the trip for P3; and
new text end

new text begin (3) the estimated total compensation, before any gratuity.
new text end

new text begin Subd. 3. new text end

new text begin Daily trip receipt. new text end

new text begin Within 24 hours of each trip completion, the TNC must
transmit a detailed electronic receipt to the driver containing the following information for
each unique trip or portion of a unique trip:
new text end

new text begin (1) the date, pickup, and drop-off locations. In describing the pickup and drop-off
locations, the TNC shall describe the location by indicating the specific block in which the
pick-up and drop-off occurred;
new text end

new text begin (2) the time and total mileage traveled from pick up to drop off of a rider or riders for
P3;
new text end

new text begin (3) the time and total mileage traveled from acceptance of the assignment to completion
for P2 and P3;
new text end

new text begin (4) total fare or fee paid by the rider or riders; and
new text end

new text begin (5) total compensation to the driver, specifying:
new text end

new text begin (i) any applicable rate or rates of pay, any applicable price multiplier, or variable pricing
policy in effect;
new text end

new text begin (ii) any gratuity; and
new text end

new text begin (iii) an itemized list of all tolls, fees, or other pass-throughs from the rider charged to
the driver.
new text end

new text begin Subd. 4. new text end

new text begin Weekly summary. new text end

new text begin Each week, a TNC must transmit a weekly summary to a
driver in writing or electronically containing the following information for the preceding
calendar week:
new text end

new text begin (1) total time the driver logged into the TNC application;
new text end

new text begin (2) total time and mileage for P2 and P3 segments;
new text end

new text begin (3) total fares or fees paid by riders; and
new text end

new text begin (4) total compensation to the driver, including any gratuities.
new text end

new text begin Subd. 5. new text end

new text begin Record keeping. new text end

new text begin TNCs must maintain the trip receipts and weekly summaries
required under this section for at least three years.
new text end

Sec. 4.

new text begin [181C.03] MINIMUM COMPENSATION.
new text end

new text begin (a) Minimum compensation of a TNC driver under this paragraph must be adjusted
annually as provided under paragraph (f), and must be paid in a per minute, per mile format,
as follows:
new text end

new text begin (1) $1.27 per mile and $0.49 per minute for any transportation of a rider by a driver;
new text end

new text begin (2) if applicable, an additional $0.91 per mile for any transportation of a rider by a driver
in a vehicle that is subject to the requirements in sections 299A.11 to 299A.17, regardless
of whether a wheelchair securement device is used;
new text end

new text begin (3) if a trip request is canceled by a rider or a TNC after the driver has already departed
to pick up a rider, 80 percent of any cancellation fee paid by the rider; and
new text end

new text begin (4) at minimum, compensation of $5.00 for any transportation of a rider by a driver.
new text end

new text begin (b) A TNC must pay a driver the minimum compensation required under this section
over a reasonable earnings period not to exceed 14 calendar days. The minimum
compensation required under this section guarantees a driver a certain level of compensation
in an earnings period that cannot be reduced. Nothing in this section prevents a driver from
earning, or a TNC from paying, a higher level of compensation.
new text end

new text begin (c) Any gratuities received by a driver from a rider or riders are the property of the driver
and are not included as part of the minimum compensation required by this section. A TNC
must pay the applicable driver all gratuities received by the driver in an earnings period no
later than the driver's next scheduled payment.
new text end

new text begin (d) For each earnings period, a TNC must compare a driver's earnings, excluding
gratuities, against the required minimum compensation for that driver during the earnings
period. If the driver's earnings, excluding gratuities, in the earnings period are less than the
required minimum compensation for that earnings period, the TNC must include an additional
sum accounting for the difference in the driver's earnings and the minimum compensation
no later than during the next earnings period.
new text end

new text begin (e) A TNC that uses software or collection technology to collect fees or fares must pay
a driver the compensation earned by the driver, regardless of whether the fees or fares are
actually collected.
new text end

new text begin (f) Beginning January 1, 2026, and each January 1 thereafter, the minimum compensation
required under paragraph (a) must be adjusted annually by the same process as the statewide
minimum wage under section 177.24, subdivision 1.
new text end

Sec. 5.

new text begin [181C.04] DEACTIVATION.
new text end

new text begin Subdivision 1. new text end

new text begin Deactivation policy; requirements. new text end

new text begin (a) A TNC must maintain a written
plain-language deactivation policy that provides the policies and procedures for deactivation.
The TNC must make the deactivation policy available online, through the TNC's digital
platform. Updates or changes to the policy must be provided to drivers at least 48 hours
before they go into effect.
new text end

new text begin (b) The deactivation policy must be provided in English, Amharic, Arabic, Hmong,
Oromo, Somali, and Spanish. TNCs operating in Minnesota must consider updating the
languages in which they offer the deactivation policy each year.
new text end

new text begin (c) The deactivation policy must:
new text end

new text begin (1) state that the deactivation policy is enforceable as a term of the TNC's contract with
a driver;
new text end

new text begin (2) provide drivers with a reasonable understanding of the circumstances that constitute
a violation that may warrant deactivation under the deactivation policy and indicate the
consequences known, including the specific number of days or range of days for a
deactivation if applicable;
new text end

new text begin (3) describe fair and reasonable procedures for notifying a driver of a deactivation and
the reason for the deactivation;
new text end

new text begin (4) describe fair, objective, and reasonable procedures and eligibility criteria for the
reconsideration of a deactivation decision and the process by which a driver may request a
deactivation appeal with the TNC, consistent with subdivision 5; and
new text end

new text begin (5) be specific enough for a driver to understand what constitutes a violation of the policy
and how to avoid violating the policy.
new text end

new text begin (d) Serious misconduct must be clearly defined in the TNC deactivation policy.
new text end

new text begin Subd. 2. new text end

new text begin Prohibitions for deactivation. new text end

new text begin A TNC must not deactivate a driver for:
new text end

new text begin (1) a violation not reasonably understood as part of a TNC's written deactivation policy;
new text end

new text begin (2) a driver's ability to work a minimum number of hours;
new text end

new text begin (3) a driver's acceptance or rejection of a ride, as long as the acceptance or rejection is
not for a discriminatory purpose;
new text end

new text begin (4) a driver's good faith statement regarding compensation or working conditions made
publicly or privately; or
new text end

new text begin (5) a driver asserting their legal rights under any local, state, or federal law.
new text end

new text begin Subd. 3. new text end

new text begin Written notice and warning. new text end

new text begin (a) The TNC must provide notice at the time of
the deactivation or, for deactivations based on serious misconduct, notice within three days
of the deactivation. A written notice must include:
new text end

new text begin (1) the reason for deactivation;
new text end

new text begin (2) anticipated length of the deactivation, if known;
new text end

new text begin (3) what day the deactivation started on;
new text end

new text begin (4) an explanation of whether or not the deactivation can be reversed and clear steps for
the driver to take to reverse a deactivation;
new text end

new text begin (5) instructions for a driver to challenge the deactivation and information on their rights
under the appeals process provided under subdivision 5; and
new text end

new text begin (6) a notice that the driver has a right to assistance and information on how to contact a
driver advocacy group as provided in subdivision 4 to assist in the deactivation appeal
process, including the telephone number and website information for one or more driver
advocacy groups.
new text end

new text begin (b) The TNC must provide a warning to a driver if the driver's behavior could result in
a future deactivation. A TNC does not need to provide a warning for behavior that constitutes
serious misconduct.
new text end

new text begin Subd. 4. new text end

new text begin Driver advocacy organizations. new text end

new text begin (a) A TNC must contract with a driver's
advocacy organization to provide services to drivers under this section. A driver advocacy
group identified in the notice must be an independent, not-for-profit organization operating
without excessive influence from the TNC. The TNC must not have any control or influence
over the day-to-day operations of the advocacy organization or the organization's staff or
management or have control or influence over who receives assistance on specific cases or
how assistance is provided in a case. The organization must have been established and
operating in Minnesota continuously for at least two years and be capable of providing
culturally competent driver representation services, outreach, and education.
new text end

new text begin (b) The driver advocacy groups must provide, at no cost to the drivers, assistance with:
new text end

new text begin (1) deactivation appeals;
new text end

new text begin (2) education and outreach to drivers regarding the drivers' rights and remedies available
to them under the law; and
new text end

new text begin (3) other technical or legal assistance on issues related to providing services for the TNC
and riders.
new text end

new text begin Subd. 5. new text end

new text begin Request for appeal. new text end

new text begin (a) The deactivation policy must provide the driver with
an opportunity to appeal the deactivation upon receipt of the notice and an opportunity to
provide information to support the request. An appeal process must provide the driver with
no less than 30 days from the date the notice was provided to the driver to appeal the
deactivation and allow the driver to have the support of an advocate or attorney.
new text end

new text begin (b) Unless the TNC or the driver requests an additional 15 days, a TNC must review
and make a final decision on the appeal within 15 days from the receipt of the requested
appeal and information to support the request. A TNC may use a third party to assist with
appeals.
new text end

new text begin (c) The TNC must consider any information presented by the driver under the appeal
process. For a deactivation to be upheld, there must be evidence under the totality of the
circumstances to find that it is more likely than not that a rule violation subjecting the driver
to deactivation has occurred.
new text end

new text begin (d) This section does not apply to deactivations for economic reasons or during a public
state of emergency that are not targeted at a particular driver or drivers.
new text end

new text begin (e) When an unintentional deactivation of an individual driver occurs due to a purely
technical issue and is not caused by any action or fault of the driver, the driver, upon request,
must be provided reasonable compensation for the period of time the driver was not able
to accept rides through the TNC capped at a maximum of 21 days. For the purposes of this
paragraph, "reasonable compensation" means compensation for each day the driver was
deactivated using the driver's daily average in earnings from the TNC for the 90 days prior
to the deactivation.
new text end

new text begin Subd. 6. new text end

new text begin Prior deactivations. new text end

new text begin Consistent with the deactivation policy created under this
section, a driver who was deactivated after January 1, 2021, but before November 1, 2024,
and who has not been reinstated may request an appeal of the deactivation under this section,
if the driver provides notice of the appeal within 90 days of the date of enactment. The TNC
may take up to 90 days to issue a final decision.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective November 1, 2024, and applies to
deactivations that occur on or after that date except as provided in subdivision 6.
new text end

Sec. 6.

new text begin [181C.05] ENFORCEMENT.
new text end

new text begin (a) The commissioner of labor and industry has exclusive enforcement authority and
may issue an order under section 177.27, subdivision 4, requiring a TNC to comply with
sections 181C.02 and 181C.03 under section 177.27, subdivision 4.
new text end

new text begin (b) A provision in a contract between a TNC and a driver that violates this chapter is
void and unenforceable. Unless a valid arbitration agreement exists under section 181C.08,
a driver may bring an action in district court seeking injunctive relief and any applicable
remedies available under the contract if a provision of a contract between a TNC and a
driver violates this chapter.
new text end

new text begin (c) A TNC must not retaliate against or discipline a driver for (1) raising a complaint
under this chapter, or (2) pursuing enactment or enforcement of this chapter. A TNC must
not give less favorable or more favorable rides to a driver for making public or private
comments supporting or opposing working conditions or compensation at a TNC.
new text end

Sec. 7.

new text begin [181C.06] DISCRIMINATION PROHIBITED.
new text end

new text begin (a) A TNC must not discriminate against a TNC driver or a qualified applicant to become
a driver, due to race, national origin, color, creed, religion, sex, disability, sexual orientation,
marital status, or gender identity as provided under section 363A.11. Nothing in this section
prohibits providing a reasonable accommodation to a person with a disability, for religious
reasons, due to pregnancy, or to remedy previous discriminatory behavior.
new text end

new text begin (b) A TNC driver injured by a violation of this section is entitled to the remedies under
sections 363A.28 to 363A.35.
new text end

Sec. 8.

new text begin [181C.07] COLLECTIVE BARGAINING; EMPLOYMENT STATUS.
new text end

new text begin Notwithstanding any law to the contrary, nothing in this chapter prohibits collective
bargaining, or must be construed to determine that a TNC driver is an employee.
new text end

Sec. 9.

new text begin [181C.08] ARBITRATION; REQUIREMENTS.
new text end

new text begin (a) A TNC must provide a driver with the option to opt out of arbitration. Upon a driver's
written election to pursue remedies through arbitration, the driver must not seek remedies
through district court based on the same alleged violation.
new text end

new text begin (b) The rights and remedies established in this chapter must be the governing law in an
arbitration between a driver operating in Minnesota and a TNC. The application of the rights
and remedies available under chapter 181C cannot be waived by a driver prior to or at the
initiation of an arbitration between a driver and a TNC. The TNC must make reasonable
efforts to use the state of Minnesota as the venue for arbitration with a Minnesota driver. If
an arbitration cannot take place in the state of Minnesota, the driver must be allowed to
appear via phone or other electronic means and apply the rights and remedies available
under chapter 181C. Arbitrators must be jointly selected by the TNC and the driver using
the roster of qualified neutrals provided by the Minnesota supreme court for alternative
dispute resolution. Consistent with the rules and guidelines provided by the American
Arbitrators Association, if the parties are unable to agree on an arbitrator through the joint
selection process, the case manager may administratively appoint the arbitrator or arbitrators.
new text end

new text begin (c) Contracts that have already been executed must have an addendum provided to each
driver that includes a copy of this chapter and notice that a driver may elect to pursue the
remedies provided in this chapter.
new text end

Sec. 10.

new text begin [181C.09] REVOCATION OF LICENSE.
new text end

new text begin A local unit of government may refuse to issue a license or may revoke a license and
right to operate issued to a TNC by the local unit of government for a TNC's failure to
comply with the requirements of this chapter.
new text end

Sec. 11. new text begin APPROPRIATION.
new text end

new text begin $173,000 in fiscal year 2025 is appropriated from the general fund to the commissioner
of labor and industry for the purposes of enforcement, education, and outreach of Minnesota
Statutes, sections 181C.02 and 181C.03. Beginning in fiscal year 2026, the base amount is
$123,000 each fiscal year.
new text end