Amend the bill, as and if amended, by striking all after the enacting words and inserting:
/ SECTION 1. Chapter 23, Title 58 of the 1976 Code is amended by adding:
Section 58-23-1900. This article may be cited as the 'South Carolina Transportation Network Companies Act'.
Section 58-23-1910. For the purposes of this article:
(1) 'Personal vehicle' means a vehicle that is used by a transportation network company driver in connection with providing a prearranged ride and is:
(a) owned, leased, or otherwise authorized for use by the transportation network company driver; and
(b) not a taxi, charter bus, charter limousine, or for-hire vehicle.
(2) 'Digital network' means any online-enabled application, software, website, or system offered or utilized by a TNC that enables the prearrangement of rides with transportation network company drivers.
(3) 'Transportation network company' or 'TNC' means a corporation, partnership, sole proprietorship, or other entity operating in the state that uses a digital network to connect transportation network company riders to transportation network company drivers who provide prearranged rides. A transportation network company shall not be deemed to control, direct, or manage the personal vehicles of transportation network company drivers that connect to its digital network, except where agreed to by written contract.
(4) 'Transportation network company driver' or 'driver' means an individual who:
(a) receives connections to potential passengers and related services from a transportation network company in exchange for payment of a fee to the transportation network company; and
(b) uses a personal vehicle to provide a prearranged ride to riders upon connection through a digital network controlled by a transportation network company in return for compensation or payment of a fee.
(5) 'Transportation network company rider' or 'rider' means an individual or individuals who use a transportation network company's digital network to connect with a transportation network driver who provides prearranged rides to the rider in the driver's personal vehicle between points chosen by the rider.
(6) 'Prearranged ride' means the provision of transportation by a transportation network company driver to a transportation network company rider, beginning when a driver accepts a ride requested by a rider through a digital network controlled by a transportation network company, continuing while the driver transports a requesting rider, and ending when the last requesting rider departs from the personal vehicle. A prearranged ride does not include transportation provided using a taxi, limousine, or other for-hire vehicle pursuant to a Class C certificate issued by the South Carolina Public Service Commission or pursuant to a license issued by the governing body of a county or city. Transportation network company service does not include services provided pursuant to Articles 1 through 15 of Chapter 23, Title 58 or arranging non-emergency medical transportation for individuals qualifying for Medicaid or Medicare pursuant to a contract with the State or a managed care organization.
Section 58-23-1920. Articles 1 to 17 of this Chapter do not apply to:
(1) transportation network companies;
(2) transportation network company drivers; or
(3) transportation network company services.
Section 58-23-1930. (A) Transportation network companies and TNC drivers are not motor vehicle carriers as defined in this chapter, and shall not be considered to provide taxi, charter bus, charter limousine, or for-hire services.
(B) A TNC is not deemed to own, control, operate or manage the personal vehicles used by TNC drivers.
(C) Transportation network companies and TNC drivers shall not be required to obtain a certificate from the South Carolina Public Service Commission or the Office of Regulatory Staff pursuant to Article 3 of this chapter.
Section 58-23-1940. (A) A person or entity shall not operate a TNC in South Carolina without first having obtained a permit from the Office of Regulatory Staff pursuant to this article; however, a person or entity operating a TNC in South Carolina as of the effective date of this article may continue to operate for a period of sixty days following the effective date of this article so as to permit the person or entity to obtain a permit from the Office of Regulatory Staff pursuant to this section.
(B) The Office of Regulatory Staff shall issue a permit to each TNC that meets the requirements for a TNC set forth in this article.
Section 58-23-1950. In order to receive a permit pursuant to this article, a TNC must maintain an agent for service of process in the State of South Carolina.
Section 58-23-1960. A TNC may determine and charge a fare for the prearranged rides provided to riders; provided that, if a fare is charged, the TNC shall disclose to riders the fare calculation method on its website or through its digital platform, network, or software application service. The TNC also shall provide riders with the applicable rates being charged and the option to receive an estimated fare before the rider enters the TNC driver's personal vehicle.
Section 58-23-1970. A TNC's website or digital platform, network, or software application service shall display a picture of the TNC driver, and the license plate number of the personal vehicle utilized for providing the prearranged ride before the rider enters the TNC driver's personal vehicle.
Section 58-23-1980. Within a reasonable period of time following the completion of a trip, a TNC shall transmit an electronic receipt to the rider that lists:
(1) the origin and destination of the trip;
(2) the total time and distance of the trip; and
(3) an itemization of the total fare paid, if any.
Section 58-23-1990. (A) Insurers that write automobile insurance in the state may exclude any and all coverage afforded under the owner's insurance policy for any loss or injury that occurs while a TNC driver is logged on a TNC's digital network or while the driver provides a prearranged ride. This right to exclude all coverage may apply to any coverage included in an automobile insurance policy including, but not limited to:
(1) liability coverage for bodily injury and property damage;
(2) uninsured and underinsured motorist coverage;
(3) medical payments coverage;
(4) comprehensive physical damage coverage; and
(5) collision physical damage coverage.
(B) The exclusions shall apply notwithstanding any requirement under Sections 56-9-10 through 56-9-630. Nothing in this section implies or requires that a personal automobile insurance policy provide coverage while the transportation network driver is logged on the TNC's digital network, while the driver is engaged in a prearranged ride or while the driver otherwise uses a personal vehicle to transport passengers for compensation. Nothing shall be deemed to preclude an automobile insurer from providing coverage for the TNC driver's personal vehicle, if he so choses to do so by contract or endorsement.
(C) Automobile insurers that exclude coverage as permitted in subsections (A) and (B) shall have no duty to defend or indemnify any claim expressly excluded thereunder. Nothing in this article shall be deemed to invalidate or limit an exclusion contained in a policy. An automobile insurer that defends or indemnifies a claim against a driver that is excluded under the terms of its policy as permitted in subsections (A) and (B), shall have a right of contribution against other insurers that provide automobile insurance to the same driver in satisfaction of the coverage requirements of Section 58-23-1910 at the time of loss.
(D) In a claims coverage investigation, transportation network companies and any automobile insurer potentially providing coverage under Section 58-23-1910 shall cooperate to facilitate the exchange of relevant information with directly involved parties and any automobile insurer of the TNC driver if applicable, including the precise times that a driver logged on and off of the TNC's digital network in the twelve-hour period immediately preceding and in the twelve-hour period immediately following the accident and disclose to one another a clear description of the coverage, exclusions, and limits provided under any automobile insurance maintained under Section 58-23-1910.
Section 58-23-2000. (A) A TNC driver or TNC on the driver's behalf shall maintain primary automobile insurance that recognizes that the driver is a TNC driver or otherwise uses a personal vehicle to transport riders for compensation and covers the driver:
(a) while the driver is logged on the TNC's digital network; or
(b) while the driver is engaged in a prearranged ride.
(B) The following automobile insurance requirements shall apply while a participating TNC driver is logged on the TNC's digital network and is available to receive transportation requests but is not engaged in a prearranged ride:
(1) Primary automobile liability insurance in the amount of at least fifty thousand dollars for death and bodily injury per person, one hundred thousand dollars for death and bodily injury per incident, and twenty-five thousand dollars for property damage.
(2) Uninsured motorist coverage as required by Section 38-77-150.
(3) Collision physical damage coverage and comprehensive physical damage coverage if the participating TNC driver carries these coverages on his personal automobile policy, unless that insurer is providing TNC company insurance to the TNC driver.
(4) The coverage requirements of this subsection may be satisfied by automobile insurance maintained by the TNC driver or automobile insurance maintained by the TNC, or both.
(C) The following automobile insurance requirements shall apply while a TNC driver is engaged in a prearranged ride:
(1) Primary automobile liability insurance that provides at least one million dollars for death, bodily injury, and property damage.
(2) Uninsured motorist coverage as required by Section 38-77-150.
(3) Collision physical damage coverage and comprehensive physical damage coverage if the participating TNC driver carries these coverages on his personal automobile policy, unless that insurer is providing TNC company insurance to the TNC driver.
(4) The coverage requirements of this subsection may be satisfied by automobile insurance maintained by the TNC driver or automobile insurance maintained by the TNC, or both.
(D) If insurance maintained by the TNC driver in subsections (B) or (C) has lapsed or does not provide the required coverage, insurance maintained by a TNC shall provide the coverage required by this section beginning with the first dollar of a claim and shall have the duty to defend such claim.
(E) Coverage under an automobile insurance policy maintained by the TNC shall not be dependent upon a personal automobile insurer first denying a claim nor shall a personal automobile insurer be required to first deny the claim.
(F) Insurance required by this section may be placed with an authorized insurer or with an eligible surplus lines insurer pursuant to Section 38-45-90.
(G) Insurance satisfying the requirements of this section shall be deemed to satisfy the financial responsibility requirements for a motor vehicle pursuant to Sections 56-9-10 through 56-9-630.
(H) A TNC driver shall carry proof of coverage satisfying subsections (B) and (C) at all times during use of a vehicle in connection with a TNC's digital network. In the event of an accident, a TNC driver shall provide this insurance coverage to the directly interested parties, automobile insurers, and the investigating police officers, upon request, pursuant to Section 56-10-225. Upon such request, a TNC driver shall also disclose to directly interested parties, automobile insurers, and the investigating police officers, whether he was logged on the TNC's digital network or on a prearranged ride at the time of an accident.
Section 58-23-2010. Before TNC drivers are allowed to accept a request for a prearranged ride on the TNC's digital network, the TNC shall disclose to the drivers, in writing, the following information:
(1) the insurance coverage, including the types of coverage and the limits for each coverage, that the TNC provides while the TNC driver uses a personal vehicle in connection with a TNC's digital network; and
(2) depending on its terms, that the TNC driver's personal automobile insurance policy may not provide any coverage while the driver is logged on the TNC's digital network and is available to receive a transportation request or is engaged in a prearranged ride.
Section 58-23-2020. (A) A TNC shall implement a zero tolerance policy on the use of drugs or alcohol any time a TNC driver is:
(1) providing prearranged rides; or
(2) logged into the TNC's digital platform, network, or software application service but is not providing prearranged rides.
(B) A TNC shall publish on its website and provide notice to its drivers of:
(1) the zero tolerance policy required in subsection (A); and
(2) procedures to report a complaint about a TNC driver with whom a rider was matched and whom the rider reasonably suspects was under the influence of drugs or alcohol during the course of the trip.
(C) Upon receipt of a complaint from a rider alleging that a driver may have violated the zero tolerance policy, the TNC shall immediately suspend the driver's access to the TNC's digital platform, network, or software application service, and shall conduct an investigation into the reported incident. The suspension shall last the duration of the investigation.
(D) The TNC shall maintain records relevant to the enforcement of the requirements of this section for at least two years from the date that a rider complaint is received by the TNC.
Section 58-23-2030. (A) Prior to permitting an individual to operate as a TNC driver on its digital platform, network, or software application service, the TNC shall:
(1) require the individual to submit an application to the TNC, which includes information regarding his or her address, age, driver's license, driving history, motor vehicle registration, automobile liability insurance, and other information required by the TNC;
(2) conduct, or have a third party conduct, a local and national criminal background check for each applicant that must include:
(a) a multi-state and multi-jurisdiction Criminal Records Locator or other similar commercial nationwide database with validation (primary source search); and
(b) National Sex Offender Registry database search;
(3) obtain and review a driving history research report for such individual.
(B) The TNC shall not permit an individual to act as a TNC driver on its digital platform, network, or software application service who:
(1) has had more than three moving violations in the prior three-year period, or one major violation in the prior three-year period including, but not limited to, failure to stop for a blue light, leaving the scene of an accident, reckless driving, or driving on a suspended or revoked license;
(2) 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 defined as violent pursuant to Section 16-1-60;
(3) has been convicted of acts of terror, felony driving under the influence, criminal sexual conduct offenses, or leaving the scene of an accident with bodily injury;
(4) is a match in the National Sex Offender Registry database;
(5) does not possess a valid driver's license;
(6) does not possess proof of registration for the motor vehicle the individual proposes to use to provide TNC services;
(7) does not possess proof of automobile liability insurance for the motor vehicle the individual proposes to use to provide TNC services; or
(8) is not at least nineteen years of age.
Section 58-23-2040. A TNC driver shall exclusively accept rides booked through the TNC's digital platform, network, or software application service, and shall not solicit or accept street hails.
Section 58-23-2050. (A) The TNC shall adopt and implement a policy prohibiting solicitation or acceptance of cash payments from riders and notify TNC drivers of such policy.
(B) TNC drivers shall not solicit or accept cash payments from riders. Any payment for TNC services shall be made only electronically using the TNC's digital platform, network, or software application service.
Section 58-23-2060. (A) A TNC shall adopt and implement a policy of nondiscrimination on the basis of destination, race, color, national origin, religious belief or affiliation, sex, disability, or age with respect to riders and potential riders and notify TNC drivers of the policy.
(B) TNC drivers shall comply with all applicable laws regarding nondiscrimination against riders or potential riders on the basis of destination, race, color, national origin, religious belief or affiliation, sex, disability, or age.
(C) TNC drivers shall comply with all applicable laws relating to accommodation of service animals.
(D) A TNC shall not impose additional charges on riders for providing services to persons with physical disabilities because of those disabilities.
(E) A TNC shall provide riders an opportunity to indicate whether they require a wheelchair-accessible vehicle. If a TNC cannot arrange wheelchair-accessible TNC service in any instance, it shall direct the rider to an alternate provider of wheelchair-accessible service, if available.
Section 58-23-2070. (A) A TNC shall maintain:
(1) individual trip records for at least one year from the date each trip was provided; and
(2) TNC driver records at least until the one-year anniversary of the date on which a TNC driver's activation on the TNC digital platform or network has ended.
(B) Records maintained by a TNC pursuant to this section shall be considered confidential and proprietary. Such records shall further be considered a trade secret as defined by Section 39-8-20(5) and shall be afforded the protections of Section 39-8-60 of the South Carolina Trade Secrets Act.
(C) Any records maintained by a TNC pursuant to this section that are obtained by a public body as defined by Section 30-4-20(a) or other governmental entity, or any records that incorporate information from records maintained pursuant to this section, shall not be subject to disclosure under the Freedom of Information Act as provided for in Chapter 4, Title 30 or any other law.
Section 58-23-2080. (A) A TNC shall not disclose a rider's personally identifiable information to a third party unless:
(1) the rider consents;
(2) disclosure is required by a legal obligation; or
(3) disclosure is required to protect or defend the terms of use of the service or to investigate violations of those terms.
(B) A TNC shall be permitted to share a rider's name and telephone number with the TNC driver providing a prearranged ride to the rider in order to facilitate the correct identification of the rider by the TNC driver, or to facilitate communication between the rider and the TNC driver.
Section 58-23-2090. Notwithstanding any other provision of law, transportation network companies and TNC drivers are governed exclusively by this article and any regulations promulgated by the Office of Regulatory Staff consistent with this article. Political subdivisions are prohibited from enacting laws, ordinances, or regulations related to services provided by TNCs."
SECTION 2. This act takes effect upon approval by the Governor. /
Renumber sections to conform.
Amend title to conform.