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2024 SESSION

24105030D
HOUSE BILL NO. 924
Offered January 10, 2024
Prefiled January 9, 2024
A BILL to amend and reenact §§ 46.2-2099.48 and 46.2-2100 of the Code of Virginia and to amend the Code of Virginia by adding in Article 15 of Chapter 20 of Title 46.2 a section numbered 46.2-2099.54 and by adding in Article 3 of Chapter 21 of Title 46.2 a section numbered 46.2-2148.1, relating to transportation network companies; delivery network companies; publishing and disclosure requirements.
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Patrons-- Srinivasan, Helmer and Tran; Senator: Salim
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Referred to Committee on Transportation
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Be it enacted by the General Assembly of Virginia:

1. That §§ 46.2-2099.48 and 46.2-2100 of the Code of Virginia are amended and reenacted and that the Code of Virginia is amended by adding in Article 15 of Chapter 20 of Title 46.2 a section numbered 46.2-2099.54 and by adding in Article 3 of Chapter 21 of Title 46.2 a section numbered 46.2-2148.1 as follows:

§ 46.2-2099.48. General operational requirements for transportation network companies and TNC partners.

A. A transportation network company and a TNC partner shall provide passenger transportation only on a prearranged basis and only by means of a digital platform that enables passengers to connect with TNC partners using a TNC partner vehicle. No TNC partner shall transport a passenger unless a transportation network company has matched the TNC partner to that passenger through the digital platform. A TNC partner shall not provide transportation in any other manner. A TNC partner shall not solicit, accept, or arrange transportation except through a transportation network company's digital platform or through a TNC broker.

B. A transportation network company shall authorize collection of fares for transporting passengers solely through a digital platform. A TNC partner shall not accept payment of fares directly from a passenger or any other person prearranging a ride or by any means other than electronically via a digital platform, unless:

1. The ride is booked by a transit system, with a transportation network company with which it has a contract, on behalf of an eligible paratransit passenger;

2. The fare is a defined amount, as published by the transit system, and is communicated to the passenger in advance;

3. The transportation network company specifically authorizes over the digital network the TNC partner to collect cash for the fare, and that authorization includes the amount to be collected. The transportation network company's digital platform shall provide the TNC partner with a method to acknowledge receipt of the fare when it is collected;

4. The passenger receives a receipt for the fare paid; and

5. The transit system receives a receipt and full accounting of cash fares monthly, or on demand, through the transportation network company's account dashboard.

C. A transportation network company with knowledge that a TNC partner has violated the provisions of subsection A or B shall remove the TNC partner from the transportation network company's digital platform for at least one year.

D. A transportation network company shall publish the following information on its public website and associated digital platform:

1. The method used to calculate fares or the applicable rates being charged and an option to receive an estimated fare;

2. Information about its TNC partner screening criteria, including a description of the offenses that the transportation network company will regard as grounds for disqualifying an individual from acting as a TNC partner;

3. The means for a passenger or other person to report a TNC partner reasonably suspected of operating a TNC partner vehicle under the influence of drugs or alcohol;

4. Information about the company's training and testing policies for TNC partners;

5. Information about the company's standards for TNC partner vehicles; and

6. A customer support telephone number or email address and instructions regarding any alternative methods for reporting a complaint.

7. Information about the portion of each fare, in the aggregate, that goes to the TNC partner and to the transportation network company.

8. Information about, on average, how much TNC partners work and earn and the average amount of expenses TNC partners incur in the course of such work.

E. A transportation network company shall associate a TNC partner with one or more personal vehicles and shall authorize a TNC partner to transport passengers only in a vehicle specifically associated with a TNC partner by the transportation network company. The transportation network company shall arrange transportation solely for previously associated TNC partners and TNC partner vehicles. A TNC partner shall not transport passengers except in a TNC partner vehicle associated with the TNC partner by the transportation network company.

F. A TNC partner shall carry at all times while operating a TNC partner vehicle proof of coverage under each in-force TNC insurance policy, which may be displayed as part of the digital platform, and each in-force personal automobile insurance policy covering the vehicle. The TNC partner shall present such proof of insurance upon request to the Commissioner, a law-enforcement officer, an airport owner and operator, an official of the Washington Metropolitan Area Transit Commission, or any person involved in an accident that occurs during the operation of a TNC partner vehicle. The transportation network company shall require the TNC partner's compliance with the provisions of this subsection.

G. Prior to a passenger's entering a TNC partner vehicle, a transportation network company shall provide through the digital platform to the person prearranging the ride the first name and a photograph of the TNC partner, the make and model of the TNC partner vehicle, and the license plate number of the TNC partner vehicle.

H. A transportation network company shall provide to each of its TNC partners a credential, which may be displayed as part of the digital platform, that includes the following information:

1. The name or logo of the transportation network company;

2. The name and a photograph of the TNC partner; and

3. The make, model, and license plate number of each TNC partner vehicle associated with the TNC partner and the state issuing each such license plate.

The TNC partner shall carry the credential at all times during the operation of a TNC partner vehicle and shall present the credential upon request to law-enforcement officers, airport owners and operators, officials of the Washington Metropolitan Area Transit Commission, or a passenger. The transportation network company shall require the TNC partner's compliance with this subsection.

I. A transportation network company and its TNC partner shall, at all times during a prearranged ride, make the following information available through its digital platform immediately upon request to representatives of the Department, to law-enforcement officers, to officials of the Washington Metropolitan Area Transit Commission, and to airport owners and operators:

1. The name of the transportation network company;

2. The name of the TNC partner and the identification number issued to the TNC partner by the transportation network company;

3. The license plate number of the TNC partner vehicle and the state issuing such license plate; and

4. The location, date, and approximate time that each passenger was or will be picked up.

J. Upon completion of a prearranged ride, a transportation network company shall transmit to the person who prearranged the ride an electronic receipt that includes:

1. A map of the route taken;

2. The date and the times the trip began and ended;

3. The total fare, including the base fare and any additional charges incurred for distance traveled or duration of the prearranged ride;

4. The TNC partner's first name and photograph; and

5. Contact information by which additional support may be obtained.

K. The transportation network company shall adopt and enforce a policy of nondiscrimination on the basis of a passenger's points of departure and destination and shall notify TNC partners of such policy.

TNC partners shall comply with all applicable laws regarding nondiscrimination against passengers or potential passengers.

A transportation network company shall provide passengers an opportunity to indicate whether they require a wheelchair-accessible vehicle. If a transportation network company cannot arrange wheelchair-accessible service in a TNC partner vehicle in any instance, it shall direct the passenger to an alternate provider of wheelchair-accessible service, if available.

A transportation network company shall not impose additional charges for providing services to persons with disabilities because of those disabilities.

TNC partners shall comply with all applicable laws relating to accommodation of service animals.

A TNC partner may refuse to transport a passenger for any reason not prohibited by law, including any case in which (i) the passenger is acting in an unlawful, disorderly, or endangering manner; (ii) the passenger is unable to care for himself and is not in the charge of a responsible companion; or (iii) the TNC partner has already committed to providing a ride for another passenger.

A TNC partner shall immediately report to the transportation network company any refusal to transport a passenger after accepting a request to transport that passenger.

L. No transportation network company or TNC partner shall conduct any operation on the property of or into any airport unless such operation is authorized by the airport owner and operator and is in compliance with the rules and regulations of that airport. The Department may take action against a transportation network company that violates any regulation of an airport owner and operator, including the suspension or revocation of the transportation network company's certificate.

M. A TNC partner shall access and utilize a digital platform in a manner that is consistent with traffic laws of the Commonwealth.

N. In accordance with § 46.2-812, no TNC partner shall operate a motor vehicle for more than 13 hours in any 24-hour period.

§ 46.2-2099.54. Required disclosures to TNC partners.

For purposes of this section:

"Deactivation process" means conduct that a transportation network company engages in to materially restrict a TNC partner's access to the digital platform, including blocking access to the digital platform, suspending a TNC partner, or changing a TNC partner's status from eligible to ineligible to provide transportation services for the transportation network company.

"Nonlinear compensation system" means an offer of compensation that (i) features hidden algorithms rather than a transparent per-mile, per-minute, or per-trip pay system or (ii) that a transportation network company makes to a TNC partner based on the number or type of delivery or transportation tasks that the TNC partner performs within a certain period of time or in a consecutive manner, including a bonus or payment scheme described as a "quest" or "ride challenge" or other temporary payment scheme.

A transportation network company shall disclose to TNC partners the use of any nonlinear compensation system and details about the transportation network company's deactivation process for TNC partners. Transportation network companies shall also provide TNC partners with information regarding the fare and the amount they will be paid and the location or locations to which they will be driving on a trip prior to any requirement to accept or decline such a trip.

§ 46.2-2100. Definitions.

Whenever used in this chapter, unless expressly stated otherwise:

"Authorized insurer" means, in the case of an interstate motor carrier whose operations may or may not include intrastate activity, an insurer authorized to transact business in any one state, or, in the case of a solely intrastate motor carrier, an insurer authorized to transact business in the Commonwealth.

"Certificate of fitness" means a certificate issued by the Department to certain "household goods carriers" under this chapter.

"Constructive weight" means a measurement of seven pounds per cubic foot of properly loaded van space.

"Delivery network company" means a person that, using a digital platform, sells delivered goods or services and connects consumers with delivery drivers through a digital platform.

"Department" means the Department of Motor Vehicles.

"Digital platform" means any online-enabled application, software, website, or system offered or utilized by a delivery network company that enables the prearrangement of deliveries with DNC partners as defined in § 46.2-2148.1.

"Financial responsibility" means the ability to respond in damages for liability thereafter incurred arising out of the ownership, maintenance, use, or operation of a motor vehicle, in the amounts provided for in this chapter.

"Gross weight" means the weight of a truck after a shipment has been loaded.

"Highway" means every public highway or place of whatever nature open to the use of the public for purposes of vehicle travel in this Commonwealth, excluding the streets and alleys in towns and cities.

"Household goods" means personal effects and property used or to be used in a dwelling, when transported or arranged to be transported (i) between residences or (ii) between a residence and a storage facility with the intent to later transport to a residence. Transportation of such goods must be arranged and paid for by, or on behalf of, the householder.

"Household goods carrier" means a carrier who undertakes, whether directly or by a lease or other arrangement, to transport "household goods," as herein defined, by motor vehicle for compensation, on any highway in this Commonwealth, between two or more points in this Commonwealth, whether over regular or irregular routes.

"Interstate" means the transportation of property between states.

"Intrastate" means the transportation of property solely within a state.

"Motor carrier" means any person who undertakes whether directly or by a lease, to transport property, including household goods, as defined by this chapter, for compensation over the highways of the Commonwealth.

"Motor vehicle" means any vehicle, machine, tractor, trailer, or semitrailer propelled or drawn by mechanical power and used upon the highways in the transportation of property, but does not include any vehicle, locomotive or car operated exclusively on a rail or rails.

"Net weight" means the tare weight subtracted from the gross weight.

"Permit" means a permit issued by the Department authorizing the transportation of property, excluding household goods transported for a distance greater than 30 road miles.

"Person" means any individual, firm, copartnership, corporation, company, association or joint-stock association, and includes any trustee, receiver, assignee, or personal representative thereof.

"Property carrier" means any person, not herein exempted, who undertakes either directly or by a lease, to transport property for compensation.

"Services" and "transportation" includes the services of, and all transportation by, all vehicles operated by, for, or in the interest of any motor carrier, irrespective of ownership or contract, express or implied, together with all facilities and property operated or controlled by any such carrier or carriers and used in the transportation of property or in the performance of any service in connection therewith.

"Tare weight" means the weight of a truck before being loaded at a shipper's residence or place of business, including the pads, dollies, hand-trucks, ramps and other equipment normally used in the transportation of household goods shipments.

§ 46.2-2148.1. Delivery network companies; required disclosures and transparency.

For purposes of this section:

"Deactivation process" means conduct that a delivery network company engages in to materially restrict a DNC partner's access to the digital platform, including blocking access to the digital platform, suspending a DNC partner, or changing a DNC partner's status from eligible to ineligible to provide delivery services for the delivery network company.

"DNC partner" means a property carrier authorized by a delivery network company to use a DNC partner vehicle to provide prearranged deliveries on an intrastate basis in the Commonwealth.

"DNC partner vehicle" means a personal vehicle authorized by a delivery network company and used by a DNC partner to provide prearranged deliveries on an intrastate basis in the Commonwealth.

"Nonlinear compensation system" means an offer of compensation that (i) features hidden algorithms rather than a transparent per-mile, per-minute, or per-trip pay system or (ii) that a delivery network company makes to a DNC partner based on the number or type of delivery or transportation tasks that the DNC partner performs within a certain period of time or in a consecutive manner, including a bonus or payment scheme described as a "quest" or "delivery challenge" or other temporary payment scheme.

A delivery network company shall publish on its public website and associated digital platform information about (i) the portion of each fare that goes to the DNC partner and to the delivery network company and (ii) on average, how much DNC partners work and earn and the average amount of expenses DNC partners incur in the course of such work.

A delivery network company shall disclose to DNC partners the use of any nonlinear compensation system and details about the delivery network company's deactivation process for DNC partners. Delivery network companies shall also provide DNC partners with information regarding the fare and the amount they will be paid and the location or locations to which they will be driving on a trip prior to any requirement to accept such a trip.

2. That the Secretary of Commerce and Trade shall convene a work group to identify additional necessary transparency measures for transportation network company (TNC) and delivery network company (DNC) partners and customers. Such work group shall consist of representatives of the State Corporation Commission, TNC and DNC representatives, TNC and DNC partners, customers, labor organizations, workers' rights advocates, and any other relevant stakeholders. The work group shall complete its meetings and report its findings and any recommendations to the General Assembly by November 1, 2024.