FINAL BILL REPORT

HB 2516

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

C 21 L 16

Synopsis as Enacted

Brief Description: Providing that commercial transportation services providers are not commuter ride-sharing arrangements.

Sponsors: Representatives Kirby, Vick, Griffey and Ormsby.

House Committee on Business & Financial Services

Senate Committee on Transportation

Senate Committee on Financial Institutions & Insurance

Background:

Transportation Network Companies.

A "commercial transportation service provider," often called a "transportation network company" or TNC, is a company that uses a digital network or software to connect passengers to drivers for the purpose of providing a prearranged ride. Although the service is similar to a for-hire taxi service, it is exempt from most requirements applicable to taxicabs and regulated separately.

Drivers for transportation network companies must carry certain insurance when using a personal vehicle. The policy must provide coverage for all times that a driver is logged into the TNC's software with differing coverage depending on whether the driver is matched with a passenger. The coverage must provide at least:

  1. $50,000 per person and $100,000 per accident in liability and underinsured motorist coverage;

  2. $30,000 in liability coverage for property damage; and

  3. personal injury protection.

Commuter Ride-Sharing and Flexible Commuter Ride-Sharing Arrangements.

A "commuter ride-sharing" arrangement is a car pool or van pool arrangement in which a fixed group of four to 15 people are transported in a passenger vehicle between their homes and schools or workplaces where the driver is also traveling to or from a school or workplace. A "flexible commuter ride-sharing" arrangement is the same except that the vehicle may contain as few as two people including the driver, and multiple daily round trips are permitted. Drivers in commuter ride-sharing arrangements are exempt from laws applicable to for-hire drivers and are held to a reasonable and ordinary standard of care.

Summary:

The definition of "commercial transportation service provider" excludes commuter ride-sharing and flexible commuter ride-sharing arrangements.

Votes on Final Passage:

House

96

1

Senate

47

0

Effective:

June 9, 2016