Transportation Network Companies
TNCs
City Council Workshop
November 23, 2015
Background
• TNCs operating in College Station
• Currently TNCs are not regulated by ordinance
• State Legislature passed insurance regulations
for TNCs during the 84th Legislative Session
• Engaged with various stakeholders-TNC, TNC
drivers, taxi cab drivers, BVLA
• Worked alongside City of Bryan
Definitions
• Transportation Network Company or TNC- any
entity operating in this state using a digital
network to connect a transportation network
company rider to a transportation network
company driver for a prearranged ride.
• Transportation Network Service- transportation
of a passenger between points chosen by the
passenger and prearranged with a TNC Driver
through the use of a TNC digital network or
software application.
Definitions Continued
• TNC Driver or Operator- a person receives
connections to potential TNC riders in exchange
for payment of a fee to the company; and uses a
personal vehicle to provide a prearranged ride to
a TNC rider in connection with the rider through
a digital network controlled by the company.
• Digital Network- any online-enabled application,
software, website, or system used by a TNC that
enables a prearranged ride with a TNC driver.
Components of Proposed Ordinance
• Permit
• Driver Requirements
• Insurance
• Operating Requirements
• City Capabilities
TNC Permit
• TNC Permit Application
• TNC Permit fee
• TNC must provide a sworn statement ensuring
that background checks will be done on each
driver prior to allowing them access to the
digital network
• Proof of current valid insurance coverage
• Term/Renewal
Driver Requirements
• Before a TNC allows a person to operate as a TNC driver on
its digital network, the TNC must:
– Require the person to submit an application to the TNC
including information regarding his address, age, driver’s
license, driving history, motor vehicle registration and
automobile liability insurance
– Conduct a local, state and national criminal background check
including:
• Multi-state/Multi-jurisdiction criminal records locator
• National Sex Offender Registry database
• Obtain and review a driving history research report
– A TNC shall not allow a person to operate as a TNC driver on its
digital network who has been convicted of any federal or state
felony or federal or state offenses involving moral turpitude
within the past ten years
Insurance
• Must comply with Texas Insurance Code Chapter
1954 “Insurance for Transportation Network
Company Drivers”
• TNC driver must have minimum limits of liability
of $30,000 injury or death per person, $60,000
injury or death per incident, and $25,000
property damage.
• $1 million 3rd party liability provided by TNC while
TNC driver is engaged in delivering TNC services
TNC Operating Requirements
• Identifying Information- picture of TNC driver,
picture or description of the vehicle, and the
license plate number
• Receipt- must be available via email or other
electronic service
• Request for service- can only be accepted
through the digital network (no street hails)
• Rates- must be posted on digital network
• Debit/Credit Payment-No cash payments allowed
City Capabilities
• Audit background checks and TNC driver
records
• Emergency Situations
• Criminal Cases
• Suspension
• Offenses
Council Feedback
• Plans to bring Ordinance back to Council on
December 10th

Transportation Network Companies

  • 1.
    Transportation Network Companies TNCs CityCouncil Workshop November 23, 2015
  • 2.
    Background • TNCs operatingin College Station • Currently TNCs are not regulated by ordinance • State Legislature passed insurance regulations for TNCs during the 84th Legislative Session • Engaged with various stakeholders-TNC, TNC drivers, taxi cab drivers, BVLA • Worked alongside City of Bryan
  • 3.
    Definitions • Transportation NetworkCompany or TNC- any entity operating in this state using a digital network to connect a transportation network company rider to a transportation network company driver for a prearranged ride. • Transportation Network Service- transportation of a passenger between points chosen by the passenger and prearranged with a TNC Driver through the use of a TNC digital network or software application.
  • 4.
    Definitions Continued • TNCDriver or Operator- a person receives connections to potential TNC riders in exchange for payment of a fee to the company; and uses a personal vehicle to provide a prearranged ride to a TNC rider in connection with the rider through a digital network controlled by the company. • Digital Network- any online-enabled application, software, website, or system used by a TNC that enables a prearranged ride with a TNC driver.
  • 5.
    Components of ProposedOrdinance • Permit • Driver Requirements • Insurance • Operating Requirements • City Capabilities
  • 6.
    TNC Permit • TNCPermit Application • TNC Permit fee • TNC must provide a sworn statement ensuring that background checks will be done on each driver prior to allowing them access to the digital network • Proof of current valid insurance coverage • Term/Renewal
  • 7.
    Driver Requirements • Beforea TNC allows a person to operate as a TNC driver on its digital network, the TNC must: – Require the person to submit an application to the TNC including information regarding his address, age, driver’s license, driving history, motor vehicle registration and automobile liability insurance – Conduct a local, state and national criminal background check including: • Multi-state/Multi-jurisdiction criminal records locator • National Sex Offender Registry database • Obtain and review a driving history research report – A TNC shall not allow a person to operate as a TNC driver on its digital network who has been convicted of any federal or state felony or federal or state offenses involving moral turpitude within the past ten years
  • 8.
    Insurance • Must complywith Texas Insurance Code Chapter 1954 “Insurance for Transportation Network Company Drivers” • TNC driver must have minimum limits of liability of $30,000 injury or death per person, $60,000 injury or death per incident, and $25,000 property damage. • $1 million 3rd party liability provided by TNC while TNC driver is engaged in delivering TNC services
  • 9.
    TNC Operating Requirements •Identifying Information- picture of TNC driver, picture or description of the vehicle, and the license plate number • Receipt- must be available via email or other electronic service • Request for service- can only be accepted through the digital network (no street hails) • Rates- must be posted on digital network • Debit/Credit Payment-No cash payments allowed
  • 10.
    City Capabilities • Auditbackground checks and TNC driver records • Emergency Situations • Criminal Cases • Suspension • Offenses
  • 11.
    Council Feedback • Plansto bring Ordinance back to Council on December 10th