HB4215 - Relating to the regulation of delivery network companies; requiring an occupational permit; authorizing a fee.

      H.B. No. 4215         AN ACT   relating to the regulation of delivery network companies; requiring   an occupational permit; authorizing a fee.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  The heading to Chapter 2402, Occupations Code,   is amended to read as follows:   CHAPTER 2402.  TRANSPORTATION NETWORK AND DELIVERY NETWORK   COMPANIES          SECTION 2.  Section 2402.001, Occupations Code, is amended   by amending Subdivisions (1) and (2) and adding Subdivisions (1-a),   (1-b), (1-c), (2-a), and (3-a) to read as follows:                (1)   "Delivery customer" means an individual who orders   or receives a digitally prearranged delivery through a delivery   network company's digital network undertaken by a delivery person.                 (1-a)     "Delivery network company" means a business   entity that offers or uses a digital network to arrange for the   delivery of food, beverages, or consumer goods from a restaurant or   retail establishment to a delivery customer.   The term does not   include an entity that only delivers products that the entity   produces or stores on the entity's premises.                 (1-b)     "Delivery person" means an individual who   undertakes a digitally prearranged delivery in this state using a   delivery network company's digital network.                 (1-c)   "Department" means the Texas Department of   Licensing and Regulation.                (2)  "Digital network" means any online-enabled   application, website, or system offered or used by :                       (A)   a transportation network company that   enables the prearrangement of rides between passengers and drivers ;   or                       (B)     a delivery network company that enables   digitally prearranged deliveries .                 (2-a)     "Digitally prearranged delivery" means the   transport and delivery or attempted delivery of goods to a delivery   customer that is prearranged through a delivery network company's   digital network.   The term may include the selection or collection   of items for delivery by an individual using a delivery network   company's digital network and other tasks incidental to delivery.                 (3-a)     "Driver" means an individual who undertakes a   digitally prearranged ride between points chosen by a passenger.            SECTION 3.  Section 2402.002, Occupations Code, is amended   to read as follows:          Sec. 2402.002.  NATURE OF TRANSPORTATION NETWORK AND   DELIVERY NETWORK COMPANIES, DRIVERS, DELIVERY PERSONS, AND   VEHICLES. Transportation network companies , delivery network   companies, and drivers or delivery persons logged in to the   company's digital network are not common carriers, contract   carriers, or motor carriers.          SECTION 4.  Section 2402.003(a), Occupations Code, is   amended to read as follows:          (a)  Notwithstanding any other provision of law, and except   as provided by Subsections (b) and (c), the regulation of   transportation network companies, delivery network companies,   drivers or delivery persons logged in to a digital network, and   vehicles used to provide digitally prearranged rides or deliveries :                (1)  is an exclusive power and function of this state;   and                (2)  may not be regulated by a municipality or other   local entity, including by:                      (A)  imposing a tax;                      (B)  requiring an additional license or permit;                      (C)  setting rates;                      (D)  imposing operational or entry requirements;   or                      (E)  imposing other requirements.          SECTION 5.  Section 2402.004, Occupations Code, is amended   to read as follows:          Sec. 2402.004.  PROVISIONS APPLICABLE TO DRIVERS AND   DELIVERY PERSONS LOGGED IN TO DIGITAL NETWORK. A provision of this   chapter that applies to a driver or delivery person logged in to a   digital network applies while the driver or delivery person is   logged in :                 (1)   to receive requests for digitally prearranged   rides or deliveries; or                 (2)   [ and ] while [ the driver is logged in and ]   providing a digitally prearranged ride or delivery .          SECTION 6.  Section 2402.051(a), Occupations Code, is   amended to read as follows:          (a)  A person may not operate a transportation network   company or delivery network company in this state without obtaining   and maintaining a permit issued under this chapter.          SECTION 7.  Section 2402.052, Occupations Code, is amended   to read as follows:          Sec. 2402.052.  FEE. (a) A transportation network company   or delivery network company shall annually pay to the department a   fee to maintain a permit under this chapter in an amount determined   by department rule to cover the costs of administering this   chapter.          (b)  The department may not impose a fee for:                (1)  drivers or delivery persons authorized to use a   transportation network company's or delivery network company's   digital network; or                (2)  vehicles used to provide digitally prearranged   rides or deliveries .          SECTION 8.  Chapter 2402, Occupations Code, is amended by   adding Subchapter C-1 to read as follows:   SUBCHAPTER C-1.   OPERATION OF DELIVERY NETWORK COMPANIES           Sec.   2402.131.     INTOXICATING SUBSTANCE POLICY. (a) A   delivery network company shall implement an intoxicating substance   policy that prohibits a delivery person who is logged in to the   company's digital network from any amount of intoxication.           (b)     A delivery network company shall include on its Internet   website or digital network application:                 (1)     a notice concerning the company's intoxicating   substance policy; and                 (2)     the means to make a complaint about a suspected   violation of the policy.           (c)     A delivery network company shall maintain records   relevant to a complaint for a period of at least two years after the   date the complaint is received.           Sec.   2402.132.     DELIVERY PERSON REQUIREMENTS. (a) Before a   delivery network company authorizes an individual to access the   company's digital network as a delivery person, the company must:                 (1)  confirm that the individual:                       (A)  is at least 18 years of age; and                       (B)  maintains:                             (i)     valid government-issued photo   identification; or                             (ii)     if the individual indicates an   intention to undertake digitally prearranged deliveries by motor   vehicle, a valid driver's license issued by this state or another   state;                 (2)     conduct, or cause to be conducted, a local, state,   and national criminal background check for the individual that   includes the use of:                       (A)     a commercial multistate and   multijurisdiction criminal records locator or other similar   commercial nationwide database; and                       (B)     the national sex offender public website   maintained by the United States Department of Justice or a   successor agency; and                 (3)     if the individual indicates an intention to   undertake digitally prearranged deliveries by motor vehicle,   obtain and review the individual's driving record.           (b)     A delivery network company may not permit an individual   to log in as a delivery person on the company's digital network if:                 (1)     the individual has been convicted in the preceding   seven-year period of any of the following:                       (A)     driving while intoxicated under Section   49.04 or 49.045, Penal Code;                       (B)  use of a motor vehicle to commit a felony;                       (C)  a felony crime involving property damage;                       (D)  fraud;                       (E)  theft;                       (F)  an act of violence; or                       (G)  an act of terrorism;                 (2)     the individual is found to be registered in the   national sex offender public website maintained by the United   States Department of Justice or a successor agency; or                 (3)     for an individual who is authorized to undertake   digitally prearranged deliveries by motor vehicle, the individual   has been convicted in the three-year period preceding the issue   date of the driving record obtained under Subsection (a)(3) of:                       (A)     more than four offenses classified by the   Department of Public Safety as moving violations; or                       (B)  one or more of the following offenses:                             (i)     fleeing or attempting to elude a police   officer under Section 545.421, Transportation Code;                             (ii)     reckless driving under S [Text truncated for display. 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