SENATE BILL No. 188

 

 

March 5, 2015, Introduced by Senators ZORN and JONES and referred to the Committee on Regulatory Reform.

 

 

 

     A bill to amend 1990 PA 271, entitled

 

"Limousine transportation act,"

 

by amending the title and sections 3, 5, 7, 9, 11, 13, 19, 21, 23,

 

25, 27, 29, 31, 33, 35, and 37 (MCL 257.1903, 257.1905, 257.1907,

 

257.1909, 257.1911, 257.1913, 257.1919, 257.1921, 257.1923,

 

257.1925, 257.1927, 257.1929, 257.1931, 257.1933, 257.1935, and

 

257.1937), section 7 as amended by 2000 PA 487, by designating

 

sections 3 to 39 as article 1, and by adding article 2.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     TITLE

 

     An act to regulate persons who transport passengers by

 

limousine and transportation network companies; to prescribe powers

 

and duties for the state transportation department and certain

 

local units of government; to impose certain fees; and to prescribe

 

remedies and penalties.


 

ARTICLE 1. LIMOUSINES

 

     Sec. 3. As used in this act:article:

 

     (a) "Certificate of authority" means a certificate of

 

authority issued under the terms of this act article unless the

 

context indicates otherwise.

 

     (b) "Department" means the state transportation department.

 

     (c) "For hire" means the remuneration or reward of any kind,

 

paid or promised, either directly or indirectly.

 

     (d) "Lessor" means a person who leases a limousine to any

 

other person for the transportation of passengers for hire over the

 

public highways of this state.

 

     (e) "Limousine" means a self-propelled motor vehicle used in

 

the carrying of passengers and the baggage of the passengers for

 

hire upon a public highway of this state with a seating capacity of

 

15 passengers or less, including the driver. Limousine does not

 

include a self-propelled motor vehicle having a seating capacity of

 

15 passengers or less that is used by or on behalf of an employer

 

to transport its employees to and from their place of employment.

 

     (f) "Limo carrier of passengers" means a person who, either

 

directly or through any device or arrangement, holds himself or

 

herself out to the public as willing to undertake for hire to

 

transport by limousine from place to place over the public highways

 

of this state persons who may choose to employ him or her for that

 

purpose.

 

     (g) "Motor vehicle service and repair act" means Act No. 300

 

of the Public Acts of 1974, being sections 257.1301 to 257.1340 of

 

the Michigan Compiled Laws.1974 PA 300, MCL 257.1301 to 257.1340.


 

     (h) "Person" means an individual, sole proprietorship,

 

partnership, association, corporation, or other legal entity or the

 

lessee, trustee, or receiver of any of these entities; this state;

 

a city, village, township, or county; the federal government; or an

 

employee, officer, or agent of any of these units of government.

 

     (i) "Public highway" means a highway, road, street, avenue,

 

alley, or thoroughfare of any kind, or a bridge, tunnel, or subway

 

used by the public.

 

     (j) "The public" means that the part or portion of the general

 

public which the that a limo carrier of passengers is ready, able,

 

willing, and equipped to serve.

 

     (k) "Through any device or arrangement" means any and all

 

methods, means, agreements, circumstances, operations, or

 

subterfuges under which a person undertakes for hire to conduct,

 

direct, control, or otherwise perform the transportation of

 

passengers by limousine upon the public highways of this state.

 

     Sec. 5. (1) This act shall article does not apply to a limo

 

carrier of passengers that is any of the following:

 

     (a) A county, city, township, or village as provided by law,

 

or other authority incorporated under Act No. 55 of the Public Acts

 

of 1963, being sections 124.351 to 124.359 of the Michigan Compiled

 

Laws.1963 PA 55, MCL 124.351 to 124.359.

 

     (b) An authority incorporated under the metropolitan

 

transportation authorities act of 1967, Act No. 204 of the Public

 

Acts of 1967, being sections 124.401 to 124.426 of the Michigan

 

Compiled Laws, 1967 PA 204, MCL 124.401 to 124.426, or that

 

operates a transportation service pursuant to under an interlocal


 

agreement under the urban cooperation act of 1967, Act No. 7 of the

 

Public Acts of the Extra Session of 1967, being sections 124.501 to

 

124.512 of the Michigan Compiled Laws.1967 (Ex Sess) PA 7, MCL

 

124.501 to 124.512.

 

     (c) Operating under a contract entered into pursuant to Act

 

No. 8 of the Public Acts of the Extra Session of 1967, being

 

sections 124.531 to 124.536 of the Michigan Compiled Laws, or Act

 

No. 35 of the Public Acts of 1951, being sections 124.1 to 124.13

 

of the Michigan Compiled Laws.under 1967 (Ex Sess) PA 8, MCL

 

124.531 to 124.536, or 1951 PA 35, MCL 124.1 to 124.13.

 

     (d) An authority incorporated under the public transportation

 

authority act, Act No. 196 of the Public Acts of 1986, being

 

sections 124.451 to 124.479 of the Michigan Compiled Laws, 1986 PA

 

196, MCL 124.451 to 124.479, or a nonprofit corporation organized

 

under the nonprofit corporation act, Act No. 162 of the Public Acts

 

of 1982, being sections 450.2101 to 450.3192 of the Michigan

 

Compiled Laws, 1982 PA 162, MCL 450.2101 to 450.3192, that provides

 

transportation services.

 

     (e) An authority financing public improvements to

 

transportation systems under the revenue bond act of 1933, Act No.

 

94 of the Public Acts of 1933, being sections 141.101 to 141.140 of

 

the Michigan Compiled Laws.1933 PA 94, MCL 141.101 to 141.140.

 

     (f) Only operating limousines to provide the transportation of

 

passengers for funerals.

 

     (g) Only operating wholly within the boundaries of a local

 

unit of government if the local unit of government has its own

 

safety inspection and insurance requirements.


 

     (2) A limo carrier of passengers exempt under subsection (1)

 

shall operate under the requirements of this act article when

 

operating outside of the political subdivisions permitted by the

 

authorizing statute or the contract required by the authorizing

 

statute.

 

     (3) This act shall article does not apply to a limo carrier of

 

passengers who is only providing transportation using metered

 

vehicles identified as a taxi or taxicab with a maximum seating

 

capacity of 3 to 9 passengers or less, including the driver.

 

     Sec. 7. (1) A limo carrier of passengers shall not operate a

 

limousine for the transportation of persons for hire on a public

 

highway in this state except in accordance with this act. article.

 

A limo carrier of passengers that operates class B limousines for

 

the purpose of picking up passengers within a city with a

 

population of 750,000 or more shall also comply with the vehicle

 

for hire ordinance of that city with respect to those limousines.

 

However, a limo carrier of passengers may remain in the city during

 

a given trip for the sole purpose of picking up the same passengers

 

that the limo carrier of passengers originally brought into the

 

city on that trip. A limo carrier of passengers shall not operate

 

upon a public highway without first having obtained from the

 

department a certificate of authority. A certificate of authority

 

may be obtained for operation of either class A limousines or class

 

B limousines or both.

 

     (2) The amendatory act that added this subsection takes effect

 

30 days after a city with a population of 750,000 or more makes

 

available bonds for class B limousines. The total number of class B


 

limousine bonds shall be determined by the city. However, for the

 

first 90 days the number of bonds to be made available for class B

 

limousines shall not be less than 100 or more than 200.

 

     (2) (3) As used in this section:

 

     (a) "Class A limousine" means a limousine with a seating

 

capacity of not less than 7 passengers but not more than 15

 

passengers including the driver.

 

     (b) "Class B limousine" means a limousine with a seating

 

capacity of less than 7 passengers including the driver.

 

     Sec. 9. A lessor shall be required to inform any person

 

leasing any a limousine for the transportation of passengers for

 

hire of the requirements of this act article on a motor vehicle

 

lease agreement.

 

     Sec. 11. The department shall issue without a hearing a

 

certificate of authority to a limo carrier of passengers

 

authorizing that carrier to provide transportation services subject

 

to the jurisdiction of the department under this act, article, if

 

the department finds pursuant to under section 13(1) that the

 

carrier is fit, willing, and able to provide the transportation

 

service authorized by the certificate of authority and to comply

 

with this act article and if the applicant presents evidence of the

 

acquisition of personal injury protection and property damage

 

liability insurance as required by section 13(2). The department

 

may attach to the exercise of the privilege granted by a

 

certificate of authority terms or conditions as the department

 

considers appropriate.

 

     Sec. 13. (1) In determining the fitness, willingness, and


 

ability of an applicant for a certificate of authority to provide

 

transportation service, the department shall consider all of the

 

following before the issuance of the original certificate of

 

authority:

 

     (a) The applicant's safety record.

 

     (b) The character and condition of each limousine is such that

 

it may be operated safely upon the public highways based on an

 

inspection required pursuant to under section 19 and conducted by a

 

mechanic certified under the motor vehicle service and repair act

 

at a motor vehicle repair facility registered under the motor

 

vehicle service and repair act that is designated by the department

 

as an inspection station or by a county, city, village, or township

 

pursuant to under section 14. Any A limousine that does not pass

 

the required departmental safety inspection shall not be operated

 

over the public highways of this state.

 

     (c) The applicant's financial ability to provide continuous

 

insurance coverage as required by subsection (2) and to have

 

adequate financial resources in order to pay for damage claims

 

against the applicant.

 

     (2) An applicant shall acquire the following insurance

 

coverage of liability for acts or omissions of the applicant as a

 

limo carrier of passengers:

 

     (a) For limousines with a seating capacity of 1 to 9

 

passengers including the driver, bodily injury and property damage

 

liability insurance with a minimum combined single limit of

 

$1,000,000.00 for all persons injured or for property damage.

 

     (b) For limousines with a seating capacity of 10 to 15


 

passengers including the driver, bodily injury and property damage

 

liability insurance with a minimum combined single limit of

 

$2,000,000.00 for all persons injured or for property damage.

 

     (c) Personal protection insurance and property protection

 

insurance as required by sections 3101 to 3179 of the insurance

 

code of 1956, Act No. 218 of the Public Acts of 1956, being

 

sections 500.3101 to 500.3179 of the Michigan Compiled Laws. 1956

 

PA 218, MCL 500.3101 to 500.3179. A limo carrier of passengers

 

shall maintain the insurance described in this subsection as a

 

condition of maintaining a certificate of authority issued under

 

this act.article.

 

     (3) An applicant that does not satisfy both subsections (1)

 

and (2) shall not be issued a certificate of authority to provide

 

transportation service as a limo carrier of passengers under this

 

act.article.

 

     Sec. 19. (1) Each limo carrier of passengers who holds a

 

certificate of authority issued under this act article shall have

 

each limousine inspected annually by a mechanic certified under the

 

motor vehicle service and repair act at a motor vehicle repair

 

facility registered under the motor vehicle service and repair act

 

that is designated by the department as an inspection station.

 

     (2) Each limousine operated by the limo carrier of passengers

 

under its certificate of authority shall pass the safety inspection

 

which meets the department's specifications for safe operating

 

character and condition for the renewal of certificate.

 

     (3) A limousine that does not pass a required inspection shall

 

not be operated over the public highways of this state.


 

     Sec. 21. (1) Each limo carrier of passengers who holds a

 

certificate of authority issued under this act article shall pay to

 

the department an annual renewal fee equal to $50.00 times the

 

number of limousines used exclusively by the carrier to provide

 

transportation of passengers for hire and meeting annual renewal

 

inspection requirements of section 19. An annual renewal fee of

 

$500.00 shall be paid for any limousine not meeting the annual

 

renewal inspection requirement of section 19.

 

     (2) For newly acquired limousines purchased by a limo carrier

 

of passengers who holds a certificate of authority issued under

 

this act article to provide transportation for hire, the carrier

 

shall pay to the department a maximum $50.00 fee per limousine to

 

obtain a current year certification after inspection required

 

pursuant to under section 19.

 

     (3) All certificates granted by the department terminate on

 

the last day of February of each year unless renewed on or before

 

that date with payment of the appropriate fee prescribed by this

 

section. The certificate of any limo carrier of passengers who is

 

delinquent in payment of fees required to be paid by this section

 

is canceled and revoked on or after March 1 of the year for which

 

renewal should have been made under the requirements of this

 

section, and the limo carrier of passengers shall be prohibited

 

from operating any of its vehicles upon or over the highways of

 

this state. All privileges granted the limo carrier of passengers

 

under the expiring certificate shall cease.

 

     Sec. 23. Each limo carrier of passengers who holds a

 

certificate of authority under this act article may have the annual


 

renewal inspection required under section 19 done pursuant to under

 

section 14 and then shall submit to the department a copy of the

 

safety inspection report and pay the department a fee equal to

 

$5.00 times the number of limousines inspected.

 

     Sec. 25. If the insurance coverage required under this act

 

article is canceled for any reason, the certificate of authority

 

issued to that carrier shall be considered revoked without any

 

further action by the department.

 

     Sec. 27. The department may use all available legal and

 

equitable remedies of a civil nature to enforce this act, an order

 

issued, or a rule promulgated pursuant to under this act. article.

 

The department may employ such experts, assistants, inspectors, and

 

other personnel as may be necessary, subject to civil service

 

rules, to enable it to administer and enforce this act. article. An

 

employee of the department shall not ask or receive any a fee from

 

a person for the taking of acknowledgments or any other service.

 

State and local police officers shall enforce this act article and

 

the rules promulgated pursuant to under this act. article. A peace

 

officer may arrest, on sight or upon warrant, any person found

 

violating, or having violated, a provision of this act article or a

 

rule promulgated under this act. article. The attorney general of

 

the state and the prosecuting attorneys of the counties of the

 

state shall prosecute all violations of this act. article. When

 

this act article is violated, the offense may be prosecuted in any

 

jurisdiction in or through which any limousine implicated was

 

present at the time of the violation.

 

     Sec. 29. (1) Each person subject to this act article who


 

operates a limousine service without obtaining a certificate of

 

authority required under this act article or without meeting the

 

insurance requirements provided in this act shall be article is

 

subject to a fine of not more than $500.00. Each violation

 

constitutes a separate offense.

 

     (2) A person who commits fraud, misrepresentation, trickery,

 

or deceit in connection with inspections conducted under this act

 

shall be article is subject to a fine of not more than $500.00.

 

Each violation constitutes a separate offense.

 

     Sec. 31. A limo carrier of passengers, or an officer or agent

 

of a limo carrier of passengers, who requires or permits a driver

 

or operator to drive or operate a limousine in violation of this

 

act, article, or a rule promulgated under this act, article, is

 

guilty of a misdemeanor , punishable by a fine of not more than

 

$500.00 or by imprisonment for not more than 90 days, or both.

 

     Sec. 33. The department may alter, suspend, or revoke a

 

certificate of authority issued under this act article if the

 

department determines in a contested case hearing held pursuant to

 

under chapter 4 of the administrative procedures act of 1969, Act

 

No. 306 of the Public Acts of 1969, being sections 24.271 to 24.287

 

of the Michigan Compiled Laws, 1969 PA 306, MCL 24.271 to 24.287,

 

that a person to whom a certificate of authority has been issued

 

has willfully violated or refused to comply with this act.article.

 

     Sec. 35. A person shall not violate or evade the provisions of

 

this act article through any device or arrangement.

 

     Sec. 37. The department shall promulgate rules to implement

 

this act pursuant to article under the administrative procedures


 

act of 1969, Act No. 306 of the Public Acts of 1969, being sections

 

24.201 to 24.328 of the Michigan Compiled Laws. 1969 PA 306, MCL

 

24.201 to 24.328. The rules shall include standardized forms to be

 

used by all certified mechanics performing inspections required by

 

section 19. The department shall also include criteria for

 

designation of registered motor vehicle repair facilities as

 

inspection stations for limousine inspections required under this

 

act.article.

 

ARTICLE 2. TRANSPORTATION NETWORK COMPANIES

 

     Sec. 41. As used in this article:

 

     (a) "Department" means the state transportation department.

 

     (b) "Personal vehicle" means a motor vehicle that has been

 

approved to be used by a transportation network company driver to

 

perform rides arranged through a transportation network company

 

digital platform and that meets the requirements of this article.

 

     (c) "Prearranged ride" means a period of time that begins when

 

a transportation network company driver accepts a requested ride

 

through a digital network, continues while the transportation

 

network company driver transports the rider in a personal vehicle,

 

and ends when the rider departs from the personal vehicle.

 

     (d) "Ridesharing arrangement" means an arrangement for the

 

transportation of not more than 8 passengers, not including the

 

driver, by motor vehicle that satisfies 1 of the following:

 

     (i) The arrangement is for a purpose incidental to another

 

purpose of the driver, and the driver does not charge or receive a

 

fee, other than money paid to reimburse the driver or owner of the

 

vehicle for his or her operating expenses on a not-for-profit


 

basis.

 

     (ii) The passengers and the driver are traveling between their

 

homes and places of employment, or places convenient to their homes

 

or places of employment, and the driver does not charge or receive

 

a fee, other than money paid to reimburse the driver or owner of

 

the vehicle for his or her operating expenses on a not-for-profit

 

basis.

 

     (e) "Taxi" or "taxicab" means an on-demand motor vehicle that

 

satisfies all of the following:

 

     (i) The vehicle may be hailed or prearranged by a passenger.

 

     (ii) The vehicle has a seating capacity of 1 to 8 passengers,

 

including the driver.

 

     (iii) The vehicle is used in the transportation of passengers

 

for hire and charges a rate based on a meter installed in the

 

vehicle or a flat fare.

 

     (iv) The vehicle is identified with the words "taxi" or "cab"

 

on the vehicle and is equipped with a permanently affixed rooftop

 

sign that displays the words "taxi" or "cab", the company name, or

 

the company phone number.

 

     (f) "Transportation network company" means a person operating

 

in this state that uses a digital network to connect riders to

 

transportation network company drivers for the purpose of providing

 

transportation. Transportation network company does not include

 

taxi service, transportation service arranged through a

 

transportation broker, a ridesharing arrangement, or a

 

transportation service using fixed routes at regular intervals.

 

     (g) "Transportation network company driver" means an


 

individual who uses a personal vehicle to provide transportation

 

services for riders that are matched to that individual through a

 

transportation network company's digital network, regardless of

 

whether the individual is employed by a transportation network

 

company.

 

     Sec. 43. A transportation network company shall not operate in

 

this state unless the transportation network company has submitted

 

an application on an annual basis to the department providing proof

 

of all of the following:

 

     (a) That the transportation network company maintains a

 

primary insurance policy covering each transportation network

 

company driver for incidents involving the transportation network

 

company driver at all times and providing all of the following

 

types of coverage:

 

     (i) Residual third-party liability insurance as required under

 

chapter 31 of the insurance code of 1956, 1956 PA 218, MCL 500.3101

 

to 500.3179, with a minimum combined single limit of $1,000,000.00

 

for all persons injured or property damage.

 

     (ii) Personal protection insurance and property protection

 

insurance in the amounts and types of coverage required by chapter

 

31 of the insurance code of 1956, 1956 PA 218, MCL 500.3101 to

 

500.3179.

 

     (b) The transportation network company shall provide

 

documentation of the insurance coverage required by subdivision (a)

 

to the department.

 

     (c) That insurance of at least the amounts and types of

 

coverage required by chapter 31 of the insurance code of 1956, 1956


 

PA 218, MCL 500.3101 to 500.3179, is provided during the time that

 

a transportation network company driver is in possession of a

 

telephone or other dispatching technology provided by the

 

transportation network company.

 

     (d) That each transportation network company driver is at

 

least 21 years of age and, except as provided in subdivision (e),

 

maintains a valid operator's license issued under the Michigan

 

vehicle code, 1949 PA 300, MCL 257.1 to 257.923.

 

     (e) That each transportation network company driver maintains

 

a valid chauffeur's license issued under the Michigan vehicle code,

 

1949 PA 300, MCL 257.1 to 257.923, and has obtained a commercial

 

vehicle registration plate under the Michigan vehicle code, 1949 PA

 

300, MCL 257.1 to 257.923, if the transportation network company

 

driver's personal vehicle has a capacity of 9 to 15 passengers.

 

     (f) That the transportation network company has conducted a

 

local, state, and national background check of each transportation

 

network company driver, including a search of the national sex

 

offender database, and the transportation network company driver

 

has not been convicted within 7 years before the date the

 

application is submitted of any of the following:

 

     (i) Driving under the influence of drugs or alcohol.

 

     (ii) A violation of chapter XI of the Michigan penal code, 1931

 

PA 328, MCL 750.81 to 750.90h.

 

     (iii) A violation of chapter XXXI of the Michigan penal code,

 

1931 PA 328, MCL 750.174 to 750.182a.

 

     (iv) A violation of chapter XLIII of the Michigan penal code,

 

1931 PA 328, MCL 750.271 to 750.300a.


 

     (v) A violation of chapter LII of the Michigan penal code,

 

1931 PA 328, MCL 750.356 to 750.367c.

 

     (vi) A violation of chapter LVI of the Michigan penal code,

 

1931 PA 328, MCL 750.377a to 750.395.

 

     (vii) A violation of chapter LXI of the Michigan penal code,

 

1931 PA 328, MCL 750.412 to 750.421c.

 

     (viii) A violation of chapter LXXVI of the Michigan penal code,

 

1931 PA 328, MCL 750.520a to 750.520n.

 

     (ix) A violation of section 543m of the Michigan penal code,

 

1931 PA 328, 750.543m.

 

     (g) That the transportation network company has reviewed a

 

driving history report for each transportation network company

 

driver before he or she provides transportation services showing

 

that the transportation network company driver has not had more

 

than 3 moving violations or a major violation in the 3-year period

 

before the date of the driving history report. As used in this

 

subdivision, "major violation" includes, but is not limited to,

 

attempting to evade the police, reckless driving, or driving on a

 

suspended or revoked license.

 

     (h) That each transportation network company driver's vehicle

 

has undergone a safety inspection conducted annually by a mechanic

 

licensed by this state before being used to provide transportation

 

services. Each transportation network company driver shall provide

 

to the transportation network company documentation of the

 

inspection required by this subdivision showing that all of the

 

following vehicle components were inspected:

 

     (i) Foot brakes.


 

     (ii) Parking brakes.

 

     (iii) Steering mechanism.

 

     (iv) Windshield.

 

     (v) Rear window and other glass.

 

     (vi) Windshield wipers.

 

     (vii) Headlights.

 

     (viii) Taillights.

 

     (ix) Brake lights.

 

     (x) Front seat adjustment mechanism.

 

     (xi) Doors.

 

     (xii) Turn signal lights.

 

     (xiii) Horn.

 

     (xiv) Speedometer.

 

     (xv) Bumpers.

 

     (xvi) Muffler and exhaust system.

 

     (xvii) Tires, including tread depth.

 

     (xviii) Interior and exterior mirrors.

 

     (xix) Safety belts.

 

     (xx) Defrosting system.

 

     Sec. 45. (1) A personal vehicle shall display all of the

 

following:

 

     (a) A consistent and distinctive signage or emblem that is

 

approved by the department at all times while the transportation

 

network company driver is engaged in a prearranged ride. The

 

signage or emblem shall satisfy all of the following:

 

     (i) The signage or emblem shall be sufficiently large and

 

color-contrasted to be readable during daylight hours from a


 

distance of at least 50 feet.

 

     (ii) The signage or emblem shall be reflective.

 

     (iii) The signage or emblem shall sufficiently identify the

 

transportation network company with which the vehicle is

 

affiliated.

 

     (b) The decal described in section 47(2).

 

     (2) A transportation network company shall do all of the

 

following:

 

     (a) Provide a customer support telephone number or electronic

 

mail address on its digital network or website for rider inquiries.

 

     (b) Except as provided in subdivision (c), refrain from

 

disclosing a passenger's personally identifiable information to a

 

third party unless 1 or more of the following apply:

 

     (i) The passenger consents.

 

     (ii) Disclosure is required by a legal obligation.

 

     (iii) Disclosure is required to process an insurance claim.

 

     (iv) Disclosure is required to protect or defend the terms of

 

the use of the service or to investigate violations of those terms.

 

     (c) A transportation network company may share a passenger's

 

name or telephone number to a transportation network company driver

 

providing a prearranged ride to that passenger to facilitate the

 

correct identification of the passenger by the transportation

 

network company driver or to facilitate communication between the

 

passenger and the transportation network company driver.

 

     (d) Provide all of the following to passengers:

 

     (i) The transportation network company driver's first name.

 

     (ii) Make and model of the transportation network company


 

driver's vehicle.

 

     (iii) Method by which the transportation network company

 

calculates fares or the applicable rate being charged.

 

     (iv) The option to receive an estimated fare.

 

     (e) Provide a receipt through electronic mail or text message

 

to a passenger upon completion of a prearranged ride.

 

     (f) Disclose in writing to transportation network drivers

 

providing services for the transportation network company all of

 

the following:

 

     (i) The insurance coverage and limits of liability that the

 

transportation network company provides while the transportation

 

network company driver uses a vehicle in connection with the

 

transportation network company's online-enabled application or

 

platform.

 

     (ii) That, depending on the terms of the policy, the

 

transportation network company driver's automobile or vehicle

 

insurance policy may not provide coverage while he or she uses a

 

vehicle in connection with a transportation network company's

 

digital network.

 

     (iii) That the transportation network company driver must

 

consult his or her own insurance company or insurance agent for

 

information about coverage provided by his or her personal

 

insurance policy.

 

     (3) A transportation network company or a transportation

 

network company driver shall not do any of the following:

 

     (a) Solicit passengers or service through a street hail.

 

     (b) Pick up or discharge a passenger at a designated taxicab


 

stand, no stopping or standing zone, or other restricted area.

 

     (4) A transportation network company driver may refuse to

 

transport a passenger if the passenger is acting in an unlawful,

 

disorderly, or endangering manner.

 

     (5) A transportation network company driver shall do all of

 

the following:

 

     (a) Permit a service animal to accompany a passenger on a

 

prearranged ride.

 

     (b) Take the most direct route to the passenger's destination

 

unless otherwise authorized by the passenger.

 

     (c) If an accident involving a personal vehicle occurs while

 

the vehicle is being used to provide transportation network company

 

services, the transportation network company driver shall do all of

 

the following:

 

     (i) Provide proof of insurance information to the other party

 

involved in the accident.

 

     (ii) Notify the transportation network company of the accident.

 

     (iii) Notify his or her insurance company of the accident.

 

     (d) Upon request of a law enforcement official or other

 

government official, display an electronic verification of his or

 

her affiliation with a transportation network company or a ride in

 

progress showing that the ride is a prearranged ride through a

 

transportation network company's digital network. This subdivision

 

does not require a transportation network company driver to

 

relinquish possession of an electric device if the information

 

described in this subdivision is contained on an electronic device.

 

     (6) Both of the following apply to an insurance policy


 

described in section 43(a) to (c):

 

     (a) The insurance policy may be placed with an insurer

 

licensed under chapter 4 of the insurance code of 1956, 1956 PA

 

218, MCL 500.402 to 500.480, or a surplus lines insurer eligible

 

under chapter 19 of the insurance code of 1956, 1956 PA 218, MCL

 

500.1901 to 500.1955.

 

     (b) The insurance policy satisfies the financial

 

responsibility requirement described in chapter V of the Michigan

 

vehicle code, 1949 PA 300, MCL 257.501 to 257.532.

 

     Sec. 47. (1) The department shall issue a permit to allow a

 

transportation network company to operate in this state if the

 

transportation network company meets all requirements of this

 

article and pays a fee determined by the department.

 

     (2) The department shall issue a decal to each transportation

 

network company driver if the driver and his or her vehicle meet

 

all requirements of this act and if the driver pays a $250.00 fee

 

to the department.

 

     (3) If a transportation network company driver's insurance

 

coverage as required under this act is canceled, is revoked, or is

 

not renewed for any reason, the transportation network company

 

driver shall notify the transportation network company to remove

 

the transportation network company driver from its roster unless

 

the transportation network company driver has obtained substitute

 

insurance coverage without a lapse in coverage.

 

     (4) After providing notice and the opportunity for a hearing,

 

the department may impose a fine or revoke a permit issued under

 

this article if a transportation network company fails to comply


 

with this article.

 

     Sec. 49. A transportation network company shall not be

 

considered to own, control, operate, or manage a personal vehicle

 

operated by a transportation network company driver providing

 

transportation services to passengers matched through the

 

transportation network company digital network.

 

     Sec. 51. A local unit of government shall not enact or enforce

 

an ordinance regulating a transportation network company. A local

 

unit of government may issue a civil infraction to a transportation

 

network company driver for a violation of section 45(1), 45(3), or

 

45(5)(a), (c), or (d).