89R10345 AND-F     By: Schwertner S.B. No. 2154       A BILL TO BE ENTITLED   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   prearranges a delivery through a delivery network company's digital   network that will be undertaken by a delivery person.                (1-a)  "Delivery network company" means a corporation,   partnership, sole proprietorship, or other entity operating in this   state that maintains a digital network to facilitate a delivery   customer's arrangement of a digitally prearranged delivery by a   delivery person.                (1-b)  "Delivery person" means an individual who   undertakes a digitally prearranged delivery to deliver goods to a   delivery customer.                (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 a   delivery customer to prearrange the delivery of goods by a delivery   person.                (2-a)  "Digitally prearranged delivery" means the   transport of goods, using a passenger vehicle, a bicycle, a   scooter, walking, public transportation, or other means of   transportation, between points provided by the customer that is   prearranged through a digital network.                (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 to receive requests for digitally prearranged rides or   deliveries and while the driver or delivery person 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:                (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   permitting an individual to log in as a delivery person on the   company's digital network, a delivery network company must:                (1)  confirm that the individual:                      (A)  is at least 18 years of age;                      (B)  maintains a valid driver's license issued by   this state, another state, or the District of Columbia; and                      (C)  if the individual will undertake digitally   prearranged deliveries by motor vehicle, possesses proof of   registration and automobile financial responsibility for each   motor vehicle to be used to provide digitally prearranged   deliveries;                (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 will 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 will 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 three 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 Section   545.401, Transportation Code;                            (iii)  driving without a valid driver's   license under Section 521.025, Transportation Code; or                            (iv)  driving with an invalid driver's   license under Section 521.457, Transportation Code.          (c)  A delivery network company shall conduct or cause to be   conducted an annual criminal background check described by   Subsection (a)(2) for each delivery person authorized to access the   company's digital network.          Sec. 2402.133.  NONDISCRIMINATION. (a) A delivery network   company shall adopt a policy that prohibits a delivery person   logged in to the company's digital network from discriminating on   the basis of a delivery customer's or potential delivery customer's   location or destination, race, color, national origin, religious   belief or affiliation, sex, disability, or age.          (b)  For the purposes of Subsection (a), "sex" means the   physical condition of being male or female.          (c)  A delivery network company shall notify each person   authorized to log in as a delivery person on the company's digital   network of the nondiscrimination policy. A delivery person logged   in to the company's digital network shall comply with the   nondiscrimination policy.          (d)  A delivery network company may not impose an additional   charge for delivery to individuals with physical disabilities   because of those disabilities.          Sec. 2402.134.  DELIVERY PERSONS AS INDEPENDENT   CONTRACTORS. A delivery person who is authorized to log in to a   delivery network company's digital network is considered an   independent contractor for all purposes, and not an employee of the   company in any manner, if:                (1)  the company does not:                      (A)  prescribe the specific hours during which the   delivery person is required to be logged in to the company's digital   network;                      (B)  impose restrictions on the delivery person's   ability to use other delivery network companies' digital networks;                      (C)  limit the territory within which the delivery   person may provide deliveries; or                      (D)  restrict the delivery person from engaging in   another occupation or business; and                (2)  the company and the delivery person agree in   writing that the delivery person is an independent contractor.          SECTION 9.  Section 2402.151(a), Occupations Code, is   amended to read as follows:          (a)  A transportation network company or delivery network   company shall maintain:                (1)  records evidencing compliance with the   requirements of this chapter for a period of two years;                (2)  individual ride and delivery records for at least   five years after the date the ride or delivery was provided; and                (3)  driver or delivery person records for at least   five years after the date the driver or delivery person ceases to be   authorized to log in as a driver or delivery person on the company's   digital network.          SECTION 10.  Section 2402.152, Occupations Code, is amended   to read as follows:          Sec. 2402.152.  COLLECTION, USE, OR DISCLOSURE OF RECORDS   AND OTHER COMPANY INFORMATION. (a) Any records, data, or other   information disclosed to a public entity in this state, including   the department, by a transportation network company or delivery   network company, including names, addresses, and any other   personally identifiable information of drivers or delivery persons   is not subject to disclosure under Chapter 552, Government Code.          (b)  A public entity, including the department, may not   disclose any records, data, or other information provided by a   transportation network company or delivery network company under   this chapter to a third party except in compliance with a court   order or subpoena. If information provided under this chapter is   sought through a court order or subpoena, the public entity shall   promptly notify the transportation network company or delivery   network company to afford the company the opportunity to take   actions to prevent disclosure.          (c)  In collecting, using, or disclosing any records, data,   or other information submitted by a transportation network company   or delivery network company under this chapter, a public entity,   including the department, shall:                (1)  consider the potential risks to the privacy of the   individuals whose information is being collected, used, or   disclosed;                (2)  ensure that the information to be collected, used,   or disclosed is necessary, relevant, and appropriate to the proper   administration of this chapter; and                (3)  take all reasonable measures and make all   reasonable efforts to protect, secure, and, where appropriate,   encrypt or limit access to the information.          (d)  A transportation network company or delivery network   company required to submit, disclose, or otherwise provide   personally identifiable information of drivers or delivery persons   to a public entity of this state, including the department, is not   liable in any civil or criminal action for any unauthorized   disclosure, misuse, alteration, destruction, access or   acquisition, or use of the information that occurs while the   information is in the possession of any public entity of this state.          SECTION 11.  Section 2402.153, Occupations Code, is amended   to read as follows:          Sec. 2402.153.  DISCLOSURE OF PASSENGER OR DELIVERY CUSTOMER   INFORMATION. (a) A transportation network company or delivery   network company may disclose a passenger's or delivery customer's   personal identifying information to a third party only if:                (1)  the passenger or delivery customer consents;                (2)  the disclosure is required by a legal obligation;   or                (3)  the disclosure is required to:                      (A)  protect or defend the terms of use of the   transportation network company or delivery network company   service; or                      (B)  investigate a violation of those terms.          (b)  Notwithstanding Subsection (a), a transportation   network company or delivery network company may share a passenger's   or delivery customer's name with a driver accessing the company's   digital network to facilitate:                (1)  identification of the passenger or delivery   customer by the driver; or                (2)  communication between the passenger or delivery   customer and the driver.          SECTION 12.  Section 2402.154, Occupations Code, is amended   to read as follows:          Sec. 2402.154.  DATA SHARING WITH MUNICIPALITY. A   municipality and a transportation network company or delivery   network company may voluntarily enter into an agreement under which   the company shares the company's data with the municipality.          SECTION 13.  Section 2402.201, Occupations Code, is amended   to read as follows:          Sec. 2402.201.  PERMIT SUSPENSION OR REVOCATION. The   department may suspend or revoke a permit issued to a   transportation network company or delivery network company that   violates a provision of this chapter.          SECTION 14.  This Act takes effect September 1, 2025.