2015 -- S 1005 SUBSTITUTE A

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2015

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A N   A C T

RELATING TO PUBLIC UTILITIES AND CARRIERS - TRANSPORTATION NETWORK

COMPANY SERVICES

     Introduced By: Senator Maryellen Goodwin

     Date Introduced: June 18, 2015

     Referred To: Senate Commerce

     It is enacted by the General Assembly as follows:

     SECTION 1. Title 39 of the General Laws entitled "PUBLIC UTILITIES AND

CARRIERS" is hereby amended by adding thereto the following chapter:

CHAPTER 14.2

TRANSPORTATION NETWORK COMPANIES

     39-14.2-1. Purpose. -- The purpose of this chapter is to establish state regulation to

ensure the public safety, consumer protection and lawful conduct in the provision of

transportation network services, while revising the regulatory conditions for taxi-cabs.

     39-14.2-2. Definitions. – As used in this chapter: (1) "Division" means the RI division of

public utilities and carriers.

     (2) "Person" means and includes any individual, partnership, corporation, or other

association of individuals.

     (3) "Transportation network company" or "TNC" means a person who uses a digital

network or software application service to connect passengers to transportation provided by TNC

drivers. A TNC is not deemed to own, control, operate or manage the vehicles used by the TNC

drivers. A TNC is not a jitney as defined in § 39-13-1, a taxi-cab or limited public motor coach as

defined in § 39-14-1, or a public motor vehicle as defined in § 39-14.1-1, or a common carrier as

defined in title 39. TNCs may be further defined by the division through regulation.

     (4) "Transportation network driver" or "TNC driver" means a person who operates a

motor vehicle that is owned, leased or otherwise authorized for use by the person to provide TNC

services through an agreement with a TNC to receive connections to potential passengers in

exchange for the payment of a fee to the TNC.

     39-14.2-3. Powers of the division. – (a)(1) Every person owning or operating a

transportation network company shall not engage in business in this state unless the company

obtains a certificate from the division pursuant to this chapter. The certificate shall be issued, on a

per year basis, only after a written or electronic application for certificate, accompanied by a fee

of ten thousand dollars ($10,000) has been made.

     (2) No person shall operate a vehicle for the purpose of providing a TNC service in any

city or town in the state until the person shall have obtained a certificate from the division

certifying that the applicant is fit, willing, and able to provide the services as a TNC driver in the

transportation of passengers.

     (b) On or before November 30, 2015, the division shall promulgate regulations to protect

the public safety relating to both TNC drivers and vehicles used by TNC drivers to provide TNC

services. The division shall also establish minimum automobile liability insurance requirements

that meet or exceed the minimum liability coverage requirements set by the department of

business regulations. The division shall also provide reasonable fare protections; reinforce the

application of the state sales tax, and promulgate any other rules and regulations as are deemed

necessary to carry out the purpose of this chapter. Said regulations shall be developed in

accordance with the administrative procedures act, in chapter 35 of title 42, including the

inclusion of public comment.

     (c) On or before November 30, 2015, the division shall revise and modernize the current

regulations for taxi-cab or limited public motor coaches as defined in § 39-14-1. Said regulations

shall be developed in accordance with the administrative procedures act, in chapter 35 of title 42,

including the inclusion of public comment.

     (d) On or before December 31, 2015, the division shall provide recommendations to the

governor and the general assembly regarding any statutory changes deemed necessary to further

implement the purposes of this chapter.

     39-14.2-4. Penalty for violations. – (a) Any person, firm or corporation, subject to the

provisions of this chapter and/or any rules and regulations promulgated under it, who shall

knowingly or willfully cause to be done any act prohibited by this chapter, or who shall be guilty

of any violation of this chapter or the rules and regulations shall be deemed guilty of a

misdemeanor and shall, upon conviction, be subject to a fine not to exceed one thousand dollars

($1,000) or imprisonment for a term not exceeding one year, or both for each offense.

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     (b) The division may, in lieu of seeking criminal sanctions, and/or in lieu of revoking or

suspending the carrier's operating authority as conferred under this chapter, impose upon its

regulated common carriers an administrative civil penalty (fine). This fine shall not exceed one

thousand dollars ($1,000) per each violation of the sections contained in this chapter or the

division's rules and regulations promulgated under it.

     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO PUBLIC UTILITIES AND CARRIERS - TRANSPORTATION NETWORK

COMPANY SERVICES

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     This act would establish state regulation over transportation network companies,

transportation network services, and transportation network drivers as well as the revision of taxi-

cab or limited public motor coach regulations.

     This act would take effect upon passage.

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