Uber and Lyft won a victory last week, when HB2135 was passed in the Arizona House. The compromise bill was approved unanimously on Wednesday.
HB2135: technical correction; insurance; existing actions, now heads to the Senate. Last year, former Gov. Jan Brewer vetoed a similar bill during one of her temper tantrums.
To read the amendments, click here.
According to the Legislative overview:
HB 2135 modifies statute relating to motor vehicle insurance for the inclusion of the terms transportation network company, transportation network service, and transportation network vehicle.
The Arizona Department of Weights and Measures (Department) is the primary authority for licensing and regulating taxi, livery vehicles and limousines in the state. Statute requires owners of livery vehicles, taxis and limousines to allow the Department to inspect criminal background checks and drug testing of vehicle operators and allow the inspection of vehicle maintenance records (Arizona Revised Statutes (A.R.S.) § 41-2097). Additionally, statute specifies the licensing requirements for taxi, livery vehicles and limousines (A.R.S. § 41-2091).
A.R.S. § 41-2051 defines livery vehicle and taxi. A livery vehicle is a motor vehicle that provides passenger services for a fare determined by a flat rate or flat hourly rate between geographic zones or within a geographic area. A taxi is defined as a motor vehicle that is registered as a taxi in this state or any other state and offers local transportation for a fare determined primarily on
the basis of the distance traveled.
PROVISIONS
1. Includes a private automobile that is used as a transportation network vehicle by an individual who has been issued a transportation network endorsement to the individual’s motor vehicle insurance policy to the definition of motor vehicle as it relates to insurance coverage.
2. Prevents an insurer from canceling or renewing the insurance afforded under the policy for a private automobile that is used as a transportation network vehicle if the named insured has procured a transportation network endorsement to the policy providing coverage for vehicle.
3. States that for the purposes of canceling or failing to renew a policy the terms fail to renew and nonrenewal does not include the cancellation, termination or removal by an insurer of an endorsement to a motor vehicle insurance policy that provides coverages, directly or indirectly, related to the provision of transport network services.
4. Adds that prearranged ground transportation service also means is arranged through an online-enabled application or platform.
5. Clarifies that a livery vehicle or a taxi is not a transportation network vehicle.
6. Provides the following definitions:
a. Transportation network company means a company that provides prearranged ground transportation services for compensation, donation, or tips using an online-enabled application or platform.
b. Transportation network service means the provision of a transportation service by a participating driver through a transportation network.
c. Transportation network vehicle means a vehicle that is used by a participating driver to provide transportation network services, that has at least four doors and that is designed to carry not more than eight passengers, including the driver.