S-5121

   Amend House File 2414, as amended, passed, and reprinted by the House, as follows:
   1.  Page 1, before line 1 by inserting: 
   Section 1.  Section 321.1, subsection 8, Code 2016, is amended by adding the following new paragraphs:
   NEW PARAGRAPH.  j.  A transportation network company driver, as defined in section 321N.1, is not a chauffeur.
   NEW PARAGRAPH.  k.  A person operating a taxicab having a seating capacity of less than seven passengers and not operating on a regular route or between specified points is not a chauffeur.
   Sec. ___.  Section 321.40, Code 2016, is amended by adding the following new subsection:
   NEW SUBSECTION.  6A.  a.  The department or the county treasurer shall refuse to renew the registration of a vehicle registered to an applicant if the department or the county treasurer knows that the applicant has not paid a civil penalty imposed on the applicant pursuant to section 321N.2, subsection 2A. An applicant may contest this action by requesting a contested case proceeding from the department. The department shall notify the county treasurers through the distributed teleprocessing network of persons who have not paid such civil penalties.
   b.  The county treasurer of the county of an applicant’s residence and in which the applicant’s vehicle is registered, in cooperation with the department, may collect a civil penalty imposed on the applicant pursuant to section 321N.2, subsection 2A, when the applicant applies for renewal of a vehicle registration. The applicant may remit full payment of the civil penalty, along with a processing fee of five dollars, to the county treasurer at the time of registration renewal. Upon full payment of the civil penalty, the processing fee, and the vehicle registration fee, the county treasurer shall issue the registration to the applicant. A county treasurer collecting a civil penalty on behalf of the department pursuant to this subsection shall update the vehicle registration records through the distributed teleprocessing network on a daily basis for all applicants who have paid civil penalties pursuant to this subsection. A county treasurer shall forward all funds collected on behalf of the department to the department.
   Sec. ___.  Section 321.236, subsection 7, Code 2016, is amended to read as follows:
   7.  Licensing and regulating the operation of vehicles offered to the public for hire and used principally in intracity operation, except to the extent such licensure and regulation conflicts with section 321.241, section 321N.10, section 325A.6, or any other provision of the Code.
   Sec. ___.  NEW SECTION.  321.241  Regulation of taxicabs by local authorities —— limits.
   1.  A local authority shall not enact, enforce, or maintain any ordinance, regulation, or rule that imposes a requirement on a person operating a taxicab having a seating capacity of less than seven passengers and not operating on a regular route or between specified points that is more restrictive than any of the following:
   a.  Requiring the person to have a driver’s license valid for the operation of the motor vehicle used as a taxicab that is not an instruction permit, special instruction permit, or temporary restricted license.
   b.  Prohibiting the person from operating the taxicab if any of the following apply:
   (1)  The person is restricted to operating motor vehicles equipped with an ignition interlock device.
   (2)  The person’s driving privileges have been suspended, revoked, barred, canceled, denied, or disqualified in the prior three-year period.
   (3)  The person has been convicted of more than three moving violations in the prior three-year period.
   (4)  The person has been convicted of violating section 321.218, 321.277, or 321J.21, or section 321A.32, subsection 1, in the prior three-year period.
   (5)  The person has been convicted in the prior seven-year period of a felony, of violating section 321J.2 or 321J.2A, or of any crime involving resisting law enforcement, dishonesty, injury to another person, damage to the property of another person, or operating a vehicle in a manner that endangers another person.
   (6)  The person is registered on the national sex offender registry.
   2.  A local authority shall not enact, enforce, or maintain any ordinance, regulation, or rule that requires a corporation, partnership, sole proprietorship, or other entity that sells or offers for sale transportation by taxicabs having a seating capacity of less than seven passengers and not operating on a regular route or between specified points to maintain a physical place of business in the local authority’s jurisdiction as a condition of operating such taxicabs in the local authority’s jurisdiction.
   Sec. ___.  Section 321.446, subsection 4, paragraph c, Code 2016, is amended to read as follows:
   c.  If a child under fourteen years of age, or a child fourteen years of age or older who is unable to fasten a seatbelt due to a temporary or permanent disability, is being transported in a taxicab or in a personal vehicle operated by a transportation network company driver, as defined in section 321N.1, in a manner that is not in compliance with subsection 1 or 2, the parent, legal guardian, or other responsible adult traveling with the child shall be served with a citation for a violation of this section in lieu of the taxicab operator or transportation network company driver. Otherwise, if a passenger being transported in the taxicab or in a personal vehicle operated by a transportation network company driver is fourteen years of age or older, the citation shall be served on the passenger in lieu of the taxicab operator or transportation network company driver.>
   2.  Page 1, after line 3 by inserting: 
   <01.  “Department” means the state department of transportation.>
   3.  Page 1, line 5, by striking <software,>
   4.  Page 1, line 9, after <a> by inserting <noncommercial>
   5.  Page 2, after line 16 by inserting: 
   <Sec. ___.  NEW SECTION.  321N.1A  Permit required —— examination of records —— sanctions.
   1.  A transportation network company shall not operate or conduct business in this state without a permit issued pursuant to this section. 
   2.  a.  Upon the filing of an application by a transportation network company with the department and a determination by the department that the company is in compliance with the provisions of this chapter, the department shall issue a permit to the company. An application filed pursuant to this section shall be in writing and shall contain all of the following:
   (1)  The full legal name and tax identification number of the applicant.
   (2)  The address of the applicant’s principal place of business.
   (3)  A statement agreeing to comply with all applicable requirements of this chapter signed by the applicant.
   (4)  Proof of compliance with the financial responsibility requirements of section 321N.3, submitted in a manner prescribed by the department.
   (5)  Proof that the applicant has established a zero tolerance policy for the use of drugs and alcohol as provided in section 321N.2, submitted in a manner prescribed by the department.
   (6)  Proof that the applicant requires personal vehicles to comply with applicable motor vehicle equipment requirements as provided in section 321N.2, submitted in a manner prescribed by the department.
   (7)  Proof that the applicant has adopted and is enforcing nondiscrimination and accessibility policies, submitted in a manner prescribed by the department.
   (8)  Proof that the applicant has established record retention guidelines, submitted in a manner prescribed by the department, that comply with all of the following:
   (a)  A record of a prearranged ride shall be retained for at least six years after the date the prearranged ride was provided, unless the company is notified that the record is material to a judicial proceeding, in which case the record shall be retained for at least two years after final disposition of the judicial proceeding.
   (b)  A record of a transportation network company driver shall be retained for at least six years after the date on which the driver’s activation on the company’s digital network ended, unless the company is notified that the record is material to a judicial proceeding, in which case the record shall be retained for at least two years after final disposition of the judicial proceeding.
   b.  The permit application shall be accompanied by a fee of five thousand dollars. All fees received by the department for permits issued pursuant to this section shall be paid monthly to the treasurer of state and deposited in the road use tax fund.
   3.  A permit issued pursuant to this section shall be valid for one year after the date of issuance.
   4.  The department may deny issuance of a permit if the department determines, and evidence demonstrates, that the applicant is not in compliance or is unable to comply with the provisions of this chapter.
   5.  The department may examine the records of a transportation network company for the purpose of enforcing this chapter. The examination may include a random sample of the company’s records related to transportation network company drivers and prearranged rides. The examination shall take place at the department’s motor vehicle division building unless another location is agreed to by the department and the company. Such examinations shall not occur more than twice per year unless additional examinations are necessary to investigate a complaint. Records obtained by the department pursuant to this subsection are not public records or otherwise subject to disclosure under chapter 22, and shall be kept confidential by the department except to the extent such records may be required to be disclosed in a departmental or judicial proceeding.
   6.  The department may suspend the permit of a transportation network company for a violation of this chapter or a rule adopted under this chapter until the company demonstrates to the department that the company is in compliance with the applicable requirements. The department may revoke the permit of a transportation network company for continued noncompliance with this chapter or a rule adopted under this chapter.
   7.  A transportation network company whose application for a permit has been denied, or whose permit has been suspended or revoked, shall have all rights afforded to the company under chapter 17A and rules adopted by the department to contest the department’s decision.
   8.  The department may adopt rules pursuant to chapter 17A to administer this section.>
   6.  Page 2, line 32, after <rides,> by inserting <proof of financial liability coverage, as defined in section 321.1, subsection 24B, covering the individual’s use of the personal vehicle,>
   7.  Page 2, line 33, by striking <driver> and inserting <individual>
   8.  Page 3, after line 5 by inserting: 
   <d.  Obtain a disclosure form signed by the individual notifying the individual of all of the following:
   (1)  If a lien exists against a personal vehicle the individual intends to use while acting as a transportation network company driver, the individual is required to notify the lienholder within the seven-day period prior to using the vehicle for such purposes that the individual intends to use the vehicle for such purposes.
   (2)  If the individual is not the owner of the personal vehicle the individual intends to use while acting as a transportation network company driver, the individual is required to notify the owner of the vehicle within the seven-day period prior to using the vehicle for such purposes that the individual intends to use the vehicle for such purposes and that the owner’s automobile insurance policy, depending on the policy’s terms, may not provide any coverage while the individual is logged on to the company’s digital network and is available to receive requests for a prearranged ride, or while the individual is engaged in a prearranged ride.
   (3)  Failure to notify a lienholder or an owner pursuant to this paragraph “d” shall result in the imposition of a civil penalty as provided in subsection 2A.
   2A.  If an individual fails to notify a lienholder or an owner pursuant to subsection 2, the department shall assess a civil penalty against the individual in the amount of two hundred fifty dollars. All moneys collected by the department pursuant to this subsection shall be paid monthly to the treasurer of state and deposited in the road use tax fund.>
   9.  Page 3, after line 8 by inserting: 
   <0a.  The individual does not have a driver’s license valid for the operation of the personal vehicle. A driver’s license valid for the operation of the personal vehicle shall not include an instruction permit, special instruction permit, or temporary restricted license.
   00a.  The individual is restricted to operating motor vehicles equipped with an ignition interlock device.
   000a.  The individual’s driving privileges have been suspended, revoked, barred, canceled, denied, or disqualified in the prior three-year period.>
   10.  Page 3, line 10, after <violations> by inserting <in the prior three-year period>
   11.  Page 3, after line 21 by inserting: 
   <0e.  The individual is not at least nineteen years of age.>
   12.  Page 4, by striking lines 25 through 31 and inserting <destruction of property of others in any one accident.>
   13.  Page 5, by striking lines 12 through 17 and inserting <destruction of property of others in any one accident.>
   14.  Page 8, lines 16 and 17, by striking <parties directly involved in the claim> and inserting <one another>
   15.  Page 8, after line 25 by inserting: 
   <Sec. ___.  NEW SECTION.  321N.6  Identification of drivers and vehicles.
   Before a transportation network company rider enters the personal vehicle of a transportation network company driver, the transportation network company shall disclose all of the following information to the rider on the company’s digital network:
   1.  A picture that prominently displays the face of the driver.
   2.  The make, model, and registration plate number of the personal vehicle used by the driver.
   Sec. ___.  NEW SECTION.  321N.7  Electronic receipt.
   Within a reasonable period of time following the completion of a prearranged ride provided to a transportation network company rider, the transportation network company shall transmit an electronic receipt to the rider containing all of the following information:
   1.  The origin and destination of the trip.
   2.  The total time and distance of the trip.
   3.  An itemized account of the total fare paid by the rider, if any.
   Sec. ___.  NEW SECTION.  321N.8  Street hails prohibited.
   A transportation network company driver shall not solicit or accept riders hailing the driver from the street.
   Sec. ___.  NEW SECTION.  321N.9  Disclosure of personal information.
   1.  A transportation network company shall not disclose a transportation network company rider’s personal information to a third party unless the rider consents to the disclosure, the disclosure is required by law, the disclosure is required to protect or defend the terms of use of the company’s services, or the disclosure is required to investigate a violation of the terms of use. For purposes of this section, “personal information” includes but is not limited to the rider’s name, home address, telephone number, and payment information.
   2.  Notwithstanding subsection 1, a transportation network company may disclose a rider’s name and telephone number to the driver providing a prearranged ride to the rider in order to facilitate the identification of the rider by the driver, or to facilitate communication between the rider and the driver.
   Sec. ___.  NEW SECTION.  321N.10  Regulation by political subdivisions prohibited —— exception.
   1.  a.  Except as otherwise provided in this section, transportation network companies, transportation network company drivers, and personal vehicles, in the course of their operation pursuant to this chapter, shall be exclusively controlled, supervised, and regulated by the department in accordance with this chapter.
   b.  Except as otherwise provided in this section, no provision of this chapter shall be construed to authorize a political subdivision of the state to enact an ordinance regulating transportation network companies, transportation network company drivers, or personal vehicles operated pursuant to this chapter.
   2.  No provision of this chapter shall be construed to limit the rights and powers of a commercial service airport, as defined in 49 U.S.C. §47102, to do any of the following:
   a.  Regulate the operation of motor vehicles on the airport’s premises in accordance with rules, regulations, and policies adopted for the orderly use of the airport.
   b.  Establish, alter, and collect rates, fees, rental payments, or other charges for the use of the airport’s services and facilities.>
   16.  Page 9, after line 9 by inserting: 
   <Sec. ___.  Section 325A.2, subsection 2, Code 2016, is amended to read as follows:
   2.  A local authority, as defined in section 321.1, shall not impose any regulations, including special registration or inspection requirements, upon the operation of motor carriers that are more restrictive than any of the provisions of this chapter, or section 321.449 or 321.450. This subsection does not, however, prohibit a local authority from exercising the home rule power of the local authority to impose additional or more restrictive regulations or requirements upon the operation of taxicabs or limousines engaged in nonfixed route transportation for hire, except to the extent such regulations or requirements conflict with section 321.241, section 325A.6, or any other provision of the Code.
   Sec. ___.  Section 325A.6, Code 2016, is amended to read as follows:
   325A.6  Insurance.
   1.  All Except as provided in subsection 2, all motor carriers subject to this chapter shall have minimum insurance coverage which meets the limits established in the federal motor carrier safety regulations in 49 C.F.R. pt. 387.
   2.  All motor vehicles providing taxicab services, having a seating capacity of less than seven passengers, and not operating on a regular route or between specified points shall maintain primary automobile insurance in the amount of at least one million dollars because of bodily injury to or death of one or more persons and injury to or destruction of property of others in any one accident. A political subdivision of the state shall not enact an ordinance requiring insurance coverage for such vehicles in an amount different than the amount required by this subsection.>
   17.  Page 9, after line 33 by inserting: 
   <Sec. ___.  LOCAL ORDINANCES VOID —— VALIDITY OF PROCEEDINGS.  On January 1, 2017, all local ordinances, regulations, and rules not consistent with this Act are void. However, this Act shall not affect the validity of any proceeding brought or punishment imposed prior to January 1, 2017, for a violation of such a local ordinance, regulation, or rule.
   Sec. ___.  EFFECTIVE DATE.  This Act takes effect January 1, 2017.>
   18.  Title page, line 2, after <companies> by inserting <and taxicabs, providing penalties>
   19.  Title page, line 2, after <including> by inserting <effective date and>
   20.  By renumbering, redesignating, and correcting internal references as necessary.

______________________________
TOD R. BOWMAN