Delivery apps join the state permit system

The text as introduced · 2,137 words

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.