Reference is to the bill as introduced.
Amend the bill, as and if amended, by deleting all after the enacting words and inserting:
/ Chapter 23, Title 58 of the 1976 Code is amended by adding:
Section 58-23-1610. For purposes of this
article:
(1) 'Transportation
Network Company' or 'TNC' means a person, corporation,
partnership, sole proprietorship, or other entity operating in
this State that uses a digital network, platform, or
internet-enable application to connect a passenger to a
transportation network driver for the purpose of providing
transportation for compensation using a vehicle outside the
limits of a municipality. A transportation network company does
not include transportation services provided pursuant to
Articles 1 through 15 of Chapter 23, Title 58. A TNC shall not
include an individual, corporation, partnership, sole
proprietorship, or other entity arranging non-emergency medical
transportation for individuals qualifying for Medicaid under
P.L.1968, c.413 (C.30:4D-1 et seq.) or Medicare under the
federal Social Security Act, Pub.L.89-97 (42 U.S.C. s.1395 et
seq.) pursuant to a contract with the State or a managed care
organization.
(2) 'Transportation
Network Company Driver' or 'TNC Driver' means a person who uses
a vehicle to provide transportation service for passengers
matched through a transportation network company's digital
network.
(3) 'Transportation
Network Company Insurance' or 'TNC Insurance' means an insurance
policy that specifically covers a driver's use of a vehicle in
connection with a transportation network company's digital
network, platform, or internet-enable application.
(4) 'Transportation
Network Company Passenger' or 'TNC Passenger' means a person for
whom transportation is provided through a transportation network
company's digital network. This includes a person for whom
arrangements for transportation services using the
transportation network company's digital network was arranged by
someone other than the passenger.
(5) 'Transportation
Network Company Service' or 'TNC Service' means a period of time
when a transportation network company driver accepts a request
arranged through the transportation network company's digital
network and proceeds to the passenger location, continues while
the transportation network company driver transports the
passenger in the transportation network company vehicle, and
ends when the passenger exits the transportation network company
vehicle.
(6) 'Transportation
Network Company Vehicle' or 'TNC Vehicle' means a vehicle that
is used by a Transportation Company Network Driver that has met
the requirements of this act and has been approved by the
Transportation Network Company to provide transportation service
arranged through a transportation network company digital
platform.
Section 58-23-1620.
Before a person, corporation, partnership, sole
proprietorship, or other entity that uses a digital network,
platform or internet-enable application to provide
transportation for compensation using a personal vehicle
commences to advertise or operate in South Carolina as a TNC,
that entity shall comply with the requirements set forth within
this article and hold a valid TNC certificate issued by the
Office of Regulatory Staff.
(A) That entity shall
submit an application to the Office of Regulatory Staff and
provide information that the Office of Regulatory Staff
requires.
(B) In performing its
responsibilities under this article, the Office of Regulatory
Staff must balance the interest of the State in promoting
innovative, safe, and cost-effective transportation services
with an appropriate level of safety protections for TNC
passengers and the general public.
(C) An application must
be accompanied by information required by the Office of
Regulatory Staff, which may condition its approval on terms that
it determines to be just and reasonable to advance the goals of
this article.
(D) Upon review of the
application and a finding that the applicant is fit, willing,
and able to conduct business pursuant to the provisions of this
article, the Office of Regulatory Staff shall approve the
application and issue the entity a TNC certificate.
(E) An aggrieved person
with standing may file a request for a contested case of a
decision of the Office of Regulatory Staff with the Public
Service Commission within thirty days of the decision.
Section 58-23-1630. (A)
Before commencing operations under a TNC
certificate and within ninety days of the issuance of the
certificate, the TNC shall file with the Office of Regulatory
Staff evidence of primary automobile liability insurance
coverage for bodily injury, death, and property damage that
meets or exceeds the minimum limits identified in subsection
F.
(B) The insurance
coverage must be issued by an insurance company authorized to do
business in this State or an eligible surplus lines carrier that
can meet the financial obligations of this article and is
eligible under Section 38-45-90.
(C) The primary
automobile liability insurance must cover the TNC driver, TNC
passengers, and the general public during the times the TNC
driver is engaged in TNC service, and during the times the TNC
driver is logged on to the TNC digital network.
(D) Filing evidence of
bodily injury, death, and property damage must be made on a
certificate of liability insurance which lists the Office of
Regulatory Staff as the certificate holder.
(E) The certificate of
insurance must specify that upon cancellation or nonrenewal the
insurance carrier must send written notice of the cancellation
or nonrenewal to the Office of Regulatory Staff. The notice
must be mailed at least thirty days before the effective date of
the cancellation or nonrenewal.
(F) Minimum limits of
liability for bodily injury, death, and property damage
includes:
(1)
primary automobile liability coverage of one million
dollars for each incident at all times when the TNC driver is
providing TNC services;
(2)
uninsured/underinsured motorist coverage of one million
dollars for each incident at all times when the TNC driver is
providing TNC services; and
(3)
primary automobile liability coverage of one hundred and
fifty thousand dollars for each person, three hundred thousand
dollars for each incident, and one hundred and fifty thousand
dollars for property damage for each incident during the time
when the TNC driver is logged into the digital network but is
not providing TNC services; and
(4)
collision physical damage coverage and comprehensive
physical damage coverage if the participating driver carries
these coverages on his personal automobile policy unless that
insurer is providing TNC company insurance to the driver.
(G) The insurance
coverage may be satisfied by any of the following:
(1)
TNC insurance maintained by a TNC driver;
(2)
TNC insurance maintained by a TNC; or
(3)
Any combination of subparagraphs (1) and (2).
(H) The TNC may meet
the insurance coverage obligations through insurance obtained by
a TNC driver pursuant to subparagraphs (1) and (3) if the TNC
verifies the insurance maintained by the TNC driver is
specifically written to cover the TNC driver's use of a vehicle
in connection with a TNC service. The TNC is required to submit
an affidavit to the Office of Regulatory Staff to demonstrate
the verification has been completed. The Office of Regulatory
Staff shall accept the affidavit by the TNC as evidence of
compliance.
(I) The TNC shall
maintain documentation of a TNC driver's insurance verification
for a period of three years.
(J) The TNC driver
insurance verification records must be provided to the Office of
Regulatory Staff by the TNC upon request.
(K) During the period
of time from the moment a TNC driver logs on to the TNC's
digital network until the TNC driver logs off the digital
network or until the TNC passenger exits the vehicle, whichever
is later, all of the following shall apply:
(1)
The TNC driver's or the vehicle owner's personal
automobile insurance policy shall not provide any coverage to
the TNC driver, vehicle owner, or any third party, unless,
notwithstanding the provisions of sub-subitem (5.5)(d)(i) and
subitem (10.5)(a) of Section 38-77-30, the policy expressly
provides for that coverage during the period of time to which
this subsection is applicable, with or without a separate
charge, or the policy contains an amendment or endorsement to
provide that coverage, for which a separately stated premium is
charged.
(2)
The TNC driver's or the vehicle owner's personal
automobile insurance policy shall not have the duty to defend or
indemnify for the driver's activities in connection with the
TNC, unless, notwithstanding the provisions of sub-subitem
(5.5)(d)(i) and subitem (10.5)(a) of Section 38-77-30, the
policy expressly provides otherwise for the period of time to
which this subsection is applicable, with or without a separate
charge, or the policy contains an amendment or endorsement to
provide that coverage, for which a separately stated premium is
charged.
(L) The TNC driver must
maintain personal automobile liability insurance that meets the
minimum coverage requirements in Section 38-77-140 at all times
for periods when the driver is not logged into the digital
platform or transporting TNC passengers. Nothing in this
section shall be construed to require a private passenger
automobile insurance policy to provide primary or excess
coverage during the period of time from the moment a TNC driver
logs on to the TNC's digital network until the TNC driver logs
off the TNC digital network or the TNC passenger exits the
vehicle, whichever is later.
(M) In any instance
when the automobile liability insurance maintained by the TNC
driver has lapsed, failed to provide the required coverage,
denied a claim for the required coverage or otherwise ceased to
exist, the automobile liability coverage provided by the TNC
shall provide insurance coverage required by this section
beginning with the first dollar of the claim.
(N) The insurer
providing the TNC insurance coverage pursuant to subsections (A)
through (M) has the duty to defend and indemnify the
insured.
(O) Coverage under a
TNC insurance policy may not be dependent on a personal
automobile insurance policy first denying a claim nor may a
personal automobile insurance policy be required to first deny a
claim.
(P) In a claims
coverage investigation, a TNC or its insurer shall cooperate
with insurers that are involved in the claims coverage
investigation to facilitate the exchange of information,
including the provision of dates and times at which an accident
occurred, that involved a TNC driver and the precise times that
the TNC driver logged on and off the TNC's digital network.
(Q) In the event of an
accident, a TNC driver shall provide insurance coverage
information to any other party involved in the accident, and to
a police officer, upon request.
Section 58-23-1640. (A)
The TNC shall conduct or have a certified
mechanic licensed in South Carolina conduct a safety inspection
of a TNC vehicle within thirty days of the vehicle first
providing TNC service
(B) Before a vehicle
approved to operate by the TNC may provide TNC services, it
must:
(1)
only be used as a personal vehicle or to provide
transportation network services for a TNC;
(2)
have at least four doors and meets applicable Federal
Motor Vehicle Safety Standards for vehicles of its size, type,
and proposed use;
(3)
be a sedan or light-duty vehicle, including a minivan,
sport utility vehicle, pickup truck, hatchback, or convertible;
(4)
have a manufacturer's rated seating capacity of no more
than eight passengers, including the driver;
(5)
be not more than ten model years of age from the current
model year at the time of the vehicle inspection or subsequent
annual inspections;
(6)
have a clean and sanitary interior and exterior;
(7)
have an interior free of rips and tears; and
(8)
have all safety belts be operable.
(C) The TNC shall not
permit a TNC driver to provide TNC services if the TNC vehicle
does not meet the vehicle standards and pass a certified
mechanics inspection as identified in this article.
(D) The TNC shall
conduct periodic inspections of the TNC vehicle at intervals of
at least one each year.
(E) The TNC shall
maintain documentation of a TNC vehicle inspection for a period
of three years.
(F) The vehicle
inspection shall include an inspection of:
(1)
foot brakes;
(2)
emergency brakes;
(3)
steering mechanism;
(4)
windshield;
(5)
rear window and other glass;
(6)
windshield wipers;
(7)
headlights;
(8)
tail lights;
(9)
turn indicator lights;
(10)
stop lights;
(11)
front seat adjustment mechanism;
(12)
door capability to open, close, lock, and unlock;
(13)
horn;
(14)
speedometer;
(15)
bumpers;
(16)
muffler and exhaust system;
(17)
tire condition including tread depth;
(18)
interior and exterior rearview mirrors; and
(19)
safety belts.
(G) A TNC vehicle must
display a consistent and distinctive signage or emblem, which
must be known as a trade dress, at all times when the TNC driver
is active on the TNC digital platform or providing TNC service.
The trade dress used by the TNC must be approved by the Office
of Regulatory Staff before its use and:
(1)
must be readable during daylight hours at a distance of
fifty feet;
(2)
must be reflective, illuminated, or otherwise patently
visible so as to be seen in darkness;
(3)
must be displayed on the vehicle windshield; and
(4)
may be magnetic or removable in nature.
(H) The Office of
Regulatory Staff may conduct inspections of TNC vehicles.
(I) The vehicle
inspection records must be provided to the Office of Regulatory
Staff by the TNC upon request.
Section 58-23-1650. (A)
The TNC shall obtain certain background and
qualification information from a TNC driver before the TNC
driver is approved by the TNC to provide TNC service.
(B) The TNC driver
qualification information shall include:
(1)
a valid driver's license issued by the South Carolina
Department of Motor Vehicles or the current state of residence
for the driver;
(2)
verification that the driver is twenty-one years of age or
older;
(3)
a certified copy of the driver's ten year driving record
issued by the South Carolina Department of Motor Vehicles and a
record from the department of motor vehicles of the state where
the driver has been domiciled for that period;
(4)
a criminal history background check from the state where
the driver currently lives;
(5)
proof of vehicle registration in name of the TNC driver;
and
(6)
proof of automobile liability insurance in the name of the
TNC driver which meets the requirements of Section
38-77-140.
(C) The TNC shall
verify the TNC driver meets all of the driver qualification
requirements in this section at intervals of at least one each
year.
(D) The TNC shall
maintain documentation of initial and annual verification of TNC
driver qualifications for a period of three years.
(E) The Office of
Regulatory Staff may conduct inspections of TNC driver
qualification records.
(F) The TNC shall not
permit a TNC driver to provide TNC services who:
(1)
does not meet the TNC driver qualifications listed in
Section 58-23-1650(B) and (C);
(2)
is registered or required to be registered as a sex
offender with the South Carolina Law Enforcement Division or the
National Sex Offender Registry;
(3)
has been convicted within the past ten years of driving
under the influence of drugs or alcohol, driving with an
unlawful alcohol concentration, fraud, use of a motor vehicle to
commit a felony, a felony crime involving property damage, theft
and crimes as defined as violent pursuant to Section 16-1-60;
or
(4)
is under the influence of drugs or alcohol.
(G) Before a TNC driver
is allowed to provide a TNC service, the TNC must disclose to
the TNC driver that the:
(1)
automobile liability insurance that the TNC provides while
the TNC driver is engaged in TNC service or logged into the TNC
digital network;
(2)
TNC driver's automobile liability insurance may not
provide coverage while the TNC driver is engaged in TNC service
or logged into the TNC digital network;
(3)
provision of TNC services may violate the terms of a
contract or financing agreement with a lienholder; and
(4)
provision of TNC services may have possible financial
consequences related to personal income tax and personal
property tax liabilities.
Section 58-23-1660. (A)
A TNC operating in this State shall comply
in South Carolina in compliance with the following
standards:
(1)
A TNC driver shall not provide TNC services or otherwise
operate as a passenger vehicle for hire unless a TNC has matched
the TNC driver to the TNC passenger through the digital network.
A TNC driver shall not solicit or accept passenger rides
on-demand or through a 'street hail.' All payment for TNC
services must be made through the digital network and the TNC
driver shall not accept cash payments.
(2)
A TNC shall make available to prospective TNC passengers
and TNC drivers the method by which the TNC calculates fares or
the applicable rates being charged and an option to receive an
estimated fare. If the rates vary from those identified in the
application to the Office of Regulatory Staff, the TNC must
require the TNC passenger to positively acknowledge the change
and agree to the rate.
(3)
A TNC shall provide the TNC passenger with an electronic
receipt upon completion of the TNC service. The receipt must
document the:
(a)
point of origin;
(b)
point of destination;
(c)
total duration and distance;
(d)
total fare/rate paid, including base fare and additional
charges incurred for distance or duration; and
(e)
TNC driver's first name and phone number.
(4)
A TNC driver shall display an identification badge
including his photograph, first name, personal vehicle make and
model, and personal vehicle license plate number. This
information may be displayed to the TNC passenger through the
TNC digital network.
(5)
A TNC driver shall at all times carry in the TNC vehicle
proof of the automobile liability insurance required of this
article.
(6)
A TNC shall maintain a customer support telephone number
displayed on its digital network, website, or both, for TNC
passenger inquiries or complaints and shall respond promptly to
all TNC passenger inquiries or complaints.
(7)
A TNC shall not discriminate against TNC passengers on the
basis of destination, race, color, national origin, religious
belief or affiliation, sex, disability, age, sexual orientation,
or gender identity.
(8)
A TNC shall provide TNC services in compliance with all
applicable laws for providing services to persons with physical
and mental disabilities. Service animals and mobility equipment
must be permitted to accompany a TNC passenger.
(9)
A TNC shall provide a TNC passenger with an opportunity to
indicate via the digital network if the TNC passenger requires a
wheelchair-accessible vehicle. If the TNC cannot accommodate
the request for a wheelchair-accessible vehicle, the TNC shall
direct the TNC passenger to an alternate transportation
provider.
(10)
A TNC driver shall take the most direct route to the
destination unless the TNC passenger has consented to an
alternate route.
(11)
A TNC driver may refuse to transport a TNC passenger if
the TNC passenger is acting in an unlawful, disorderly or
endangering manner.
Section 58-23-1670. (A)
A TNC shall maintain a record of all TNC
services provided in South Carolina for a period of three years
from the date of the TNC service. The records shall include:
(1)
the time at which a TNC driver logs into the digital
network;
(2)
the time and place of commencement of TNC service;
(3)
the number of TNC passengers transported;
(4)
the name and place of delivery of the TNC passengers;
(5)
the amount of fare charged to the TNC passengers;
(6)
the name and contact information of the TNC passengers;
and
(7)
any inquiry or complaint of the TNC passenger, the date of
the inquiry or complaint, and the resolution of the inquiry or
complaint.
(B) A TNC shall
maintain documentation of each TNC vehicle inspection for a
period of three years.
(C) The TNC shall
maintain documentation of initial and annual verification of TNC
driver qualifications for a period of three years.
(D) The TNC shall
provide, upon the request of the Office of Regulatory Staff, any
factual information regarding TNC drivers, TNC passengers and
TNC services so as to investigate complaints arising under this
article. This information must be provided to the Office of
Regulatory Staff within a reasonable time period.
(E) A TNC shall not
disclose a TNC driver or passenger's personally identifiable
information to a third party unless the:
(1)
TNC driver or TNC passenger consents;
(2)
disclosure is required by legal obligation; or
(3)
disclosure is required to investigate violations of the
TNC driver or TNC passenger terms of use.
Section 58-23-1680. (A)
A certified South Carolina law enforcement
officer is authorized to enforce the requirements of this
article.
(B) A officer, agent,
or employee of a TNC or TNC driver that fails to comply with any
requirement contained in this article is guilty of a misdemeanor
and, upon conviction, must be fined not less than one hundred
dollars for a first offense, not less than five hundred dollars
for a second offense, and for a third and subsequent offenses
not less than one thousand dollars or imprisoned for a term not
to exceed thirty days. Seventy-five percent of the fines
collected under this section must be remitted to the Office of
Regulatory Staff to be used for enforcement operations.
Magistrates have jurisdiction over contested violations of this
section and are prohibited from suspending or reducing the
penalties.
(C) The Office of
Regulatory Staff may revoke a TNC certificate if the TNC has
made misrepresentation of a material fact in obtaining the TNC
certificate or, in the opinion of the Office of Regulatory
Staff, has failed to comply with the requirements in this
article.
(D) An aggrieved person
with standing may file a request for a contested case of a
decision of the Office of Regulatory Staff with the Public
Service Commission of South Carolina within thirty days of the
decision.
(E) As concerns
potential violations of this article, TNC's and their officers,
agents, employees, or customers is subject to the investigatory
powers provided in Sections 58-4-50 and 58-4-55 to the Office of
Regulatory Staff.
(F) The Office of
Regulatory Staff is authorized to require regular updating of
information required from a TNC under this article.
Section 58-23-1690. (A)
The Office of Regulatory Staff may assess
each TNC an annual fee in an amount necessary to permit the
Office of Regulatory Staff to carry out the requirements of this
article.
(B) The annual
assessment of fees will be pursuant to Section 58-4-60(B)."
SECTION 2. Section 58-4-60(B) of the 1976 Code is amended to read:
"(B)(1) The
expenses of the Transportation Department of the Office of
Regulatory Staff, with the exception of the expenses incurred in
its railway jurisdiction, must be borne by the revenues from
license fees derived pursuant to Sections 58-23-530 through
58-23-630, assessments to the Transportation Network
Companies pursuant to Section 58-23-1690, and assessments to
the carriers of household goods and hazardous waste for disposal
carriers. The expenses of the railway section of the Office of
Regulatory Staff must be borne by the railroad companies subject
to the commission's jurisdiction according to their gross income
from operations in this State.
(2)
All other expenses of the Office of Regulatory
Staff must be borne by the public utilities subject to the
jurisdiction of the commission. On or before the first day of
July in each year, the Department of Revenue must assess each
public utility, railway company, household goods carrier, and
hazardous waste for disposal carrier its proportion of the
expenses in proportion to its gross income from operation in
this State in the year ending on the thirtieth day of June
preceding that on which the assessment is made which is due and
payable on or before July fifteenth. The assessments must be
charged against the companies by the Department of Revenue and
collected by the department in the manner provided by law for
the collection of taxes from the companies including the
enforcement and collection provisions of Article 1, Chapter 54
of, Title 12 and paid, less the
Department of Revenue actual incremental increase in the cost of
administration into the state treasury as other taxes collected
by the Department of Revenue for the State."
SECTION 3. Section 58-23-50 of the 1976 Code is amended by adding a subsection at the end to read:
"(C) Articles 1 to 11 of this chapter also do not apply to Transportation Network Companies and Transportation Network Company Drivers."
SECTION 4. This act takes effect upon approval by the Governor. /
Renumber sections to conform.
Amend title to conform.