Committee: Commerce and Small BusinessSponsor: Faulkner
Analyst: John FriedenreichDate: 01/24/2018


House Bill 190 as substituted, amended and reported by the Committee on Commerce and Small Business requires transportation network companies (TNC) to obtain a permit from the Public Service Commission (PSC), provided any company operating before July 1, 2018 may continue until 30 days after the PSC establishes administrative rules and a deadline. This bill also requires a TNC to collect a local assessment fee equal to one percent of the gross fare and remit it to the PSC. The amount of revenue that will be generated from the permit and local assessment fees is undetermined at this time. This bill also requires TNC drivers to be subject to a criminal background check. This bill prevents a county, municipality or local government entity from imposing a tax or business license requirement for a TNC, TNC driver, or TNC vehicle. This bill will increase the administrative obligations of the PSC to regulate TNCs, which could be offset by the to be determined permit fee and the up to 50% of the assessment fees which the PSC may retain. This bill provides that the remaining assessment fees will be allocated to the counties and municipalities proportionally based on the location from which a pre-arranged TNC ride originated and ensures that local assessment fees submitted to the PSC are distributed properly by requiring the PSC to prepare and make available for public use GIS data.

In addition, this bill further specifies the duties and responsibilities of the PSC which includes: (1) adopting rules to regulate TNCs and TNC drivers; (2) investigating complaints and inspecting records of TNCs and TNC drivers; and (3) authorizing the PSC to assess civil penalties on TNCs for violating the provisions of this bill in an amount not to exceed $500 per violation per day and not to exceed $100 per violation per day on TNC drivers that violate the provisions of this bill. Lastly, the provisions of this bill shall become effective July 1, 2018, except the collection of the local assessment fee, which shall become effective August 1, 2018.

Additionally, this bill could increase receipts to the State General Fund and municipal general funds from fines; increase receipts to the State General Fund, county general funds, municipal general funds, and other funds to which court costs are deposited; and could increase the obligations of the State General Fund, district attorneys, and local jails by an amount dependent upon the number of persons charged with and convicted of the offenses provided by this bill and the penalties imposed.

 Jim Carns, Chair
Commerce and Small Business