AB459 - Revises provisions relating to certain providers of transportation services. (BDR 58-1003)

REQUIRES TWO-THIRDS MAJORITY VOTE (§§ 29, 30) A.B. 459 - *AB459* ASSEMBLY BILL NO. 459–ASSEMBLYMEMBER WATTS MARCH 17, 2025 ____________ Referred to Committee on Growth and Infrastructure SUMMARY—Revises provisions relating to certain providers of transportation services. (BDR 58-1003) FISCAL NOTE: Effect on Local Government: No. Effect on the State: Yes. ~ EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. AN ACT relating to transportation; requiring transportation network companies to establish certain policies and procedures; establishing certain requirements relating to the suspension or deactivation of drivers and monitored autonomous vehicle providers; requiring transportation network companies to make certain disclosures; prohibiting a transportation network company from retaliating against drivers and monitored autonomous vehicle providers in certain circumstances; requiring the Nevada Transportation Authority to certify a driver support organization; establishing certain duties of the Authority, transportation network companies and the certified driver support organization; providing for certain assessments on transportation network companies; providing for civil causes of action and administrative fines against transportation network companies; imposing an additional excise tax on the connection of a passenger with a driver or fully autonomous vehicle; and providing other matters properly relating thereto. Legislative Counsel’s Digest: Existing law provides for the regulation of transportation network companies 1 by the Nevada Transportation Authority. (Chapter 706A of NRS) Existing law 2 authorizes a transportation network company to enter into an agreement with one or 3 more drivers, or monitored autonomous vehicle providers, to receive connections to 4 potential passengers from the company in exchange for the payment of a fee by the 5 driver or monitored autonomous vehicle provider to the company. (NRS 706A.160, 6 706A.161) Section 13 of this bill requires a transportation network company to 7 – 2 – - *AB459* adopt a written policy relating to the suspension and deactivation of drivers and 8 monitored autonomous vehicle providers. Section 13 requires the policy to 9 specifically list the conduct for which the transportation network company may 10 suspend a driver or monitored autonomous vehicle provider. Section 13 prohibits a 11 transportation network company from suspending or deactivating a driver or 12 monitored autonomous vehicle provider in a manner that is inconsistent with the 13 written policy. If a transportation network company suspends or deactivates a 14 driver or monitored autonomous vehicle provider, section 14 of this bill requires 15 the company to transmit a notice containing certain information to the driver or 16 monitored autonomous vehicle provider who was suspended or deactivated. 17 Section 15 of this bill requires a transportation network company to establish an 18 internal process through which a driver or monitored autonomous vehicle provider 19 who has been deactivated may request that the company reconsider the 20 deactivation. Section 15 establishes certain requirements for the process required of 21 a transportation network company after receiving a request for reconsideration of a 22 deactivation, including a requirement that the company process a request for 23 reconsideration within a certain amount of time. If a transportation network 24 company reverses or lifts a deactivation of a driver or monitored autonomous 25 vehicle provider through this process, section 15 requires the company to fully 26 restore the account of the driver or monitored autonomous vehicle provider on the 27 platform used by the company within 24 hours after notifying the driver or 28 monitored autonomous vehicle provider. Section 16 of this bill prohibits a 29 transportation network company from including certain terms relating to dispute 30 resolution in an agreement between the company and a driver or monitored 31 autonomous vehicle provider. Section 18 of this bill prohibits a transportation 32 network company from suspending, deactivating or retaliating against a driver or 33 monitored autonomous vehicle provider for lawfully accepting or rejecting a task 34 offered by the company to the driver or monitored autonomous vehicle provider. 35 Existing law requires a transportation network company to provide a receipt to 36 a passenger documenting certain information relating to the price charged to the 37 passenger by the company for the provision of transportation services. (NRS 38 706A.210) Section 17 of this bill requires a transportation network company to 39 disclose to a driver or monitored autonomous vehicle provider within the digital 40 application or software application service of the company certain information 41 relating to a task offered by the company to the driver or monitored autonomous 42 vehicle provider, including: (1) the amount that the company will pay the driver or 43 monitored autonomous vehicle provider for the task; (2) any amount of tip that a 44 passenger has indicated will be paid to the driver or monitored autonomous vehicle 45 provider; and (3) certain information regarding the direction, time and distance that 46 the driver or monitored autonomous vehicle provider will be required to drive in 47 order to complete the task. Section 17 also requires a transportation network 48 company to disclose a summary of certain information relating to the tasks that the 49 driver or monitored autonomous vehicle provider has completed for the company 50 within the last month, or if the company voluntarily reports such information more 51 frequently, tasks completed since the company last disclosed such information to 52 the driver or monitored autonomous vehicle provider. Section 27 of this bill 53 requires a transportation network company to disclose to a passenger to whom a 54 driver or monitored autonomous vehicle provider has been connected through the 55 digital application or software application service of the company, before the 56 passenger is offered an option in the application or service to tip the driver or 57 monitored autonomous vehicle provider: (1) the fare that the passenger has paid or 58 will pay for the trip; and (2) the amount of money that the company will pay the 59 driver or monitored autonomous vehicle provider for completing the trip. Section 60 27 requires a transportation network company to prominently present this 61 disclosure to the passenger in a certain manner. 62 – 3 – - *AB459* Section 19 of this bill authorizes certain organizations whose primary purpose 63 is educating and providing certain support and services to drivers and monitored 64 autonomous vehicle providers in this State to apply to be certified by the Authority 65 as the certified driver support organization for this State. Section 19 authorizes an 66 organization to be certified as the certified driver support organization for a term of 67 3 years, and to be re-certified for additional terms by following the same 68 procedures for an original certification. Section 20 of this bill requires certain 69 information regarding the certified driver support organization to be transmitted to 70 transportation network companies, drivers and monitored autonomous vehicle 71 providers under certain circumstances. Section 22 of this bill establishes the duties 72 of the certified driver support organization, which include: (1) representing drivers 73 and monitored autonomous vehicle providers through processes offered to a driver 74 or monitored autonomous vehicle provider by a transportation network company 75 for handling disputes between the driver or monitored autonomous vehicle provider 76 and company, including a dispute over a suspension or deactivation; (2) providing 77 support and additional resources for drivers and monitored autonomous vehicle 78 providers who may pursue dispute resolution through other means; and (3) 79 providing other education, services and support to drivers and monitored 80 autonomous vehicle providers in this State. Section 21 of this bill requires the 81 certified driver support organization to propose a budget for approval by the 82 Authority. Section 21 requires that the budget not exceed a certain amount, based 83 on the total number of transportation tasks undertaken in this State by all 84 transportation network companies in the immediately preceding year. Section 21 85 prohibits the certified driver support organization from using funds from the budget 86 for any purpose not described in section 22. To fund the budget, section 21 87 requires each transportation network company holding a permit issued by the 88 Authority to remit, on a quarterly basis, a share of the amount of budget of the 89 organization approved by the Authority that is proportional to the number of 90 transportation tasks undertaken by the transportation network company in this State 91 during the immediately preceding year. Additionally, section 23 of this bill requires 92 a transportation network company to establish means by which a driver may 93 request a portion of his or her earnings be deducted by the company for credit to the 94 certified driver support organization. Section 21 requires the certified driver 95 support organization to biannually submit certain materials to the Authority to 96 evidence compliance with the requirements of sections 21 and 22. Section 21 97 authorizes the Authority to revoke the certification of the organization if the 98 organization has spent funds for unauthorized purposes or if the organization no 99 longer qualifies for certification. 100 Section 24 of this bill authorizes a driver, monitored autonomous vehicle 101 provider or passenger who is injured by a violation of sections 2-25 of this bill or 102 certain provisions governing information which must be provided to a passenger to 103 bring a civil action against the transportation network company who is alleged to 104 have committed the violation to obtain certain relief. Section 24 also authorizes the 105 Authority to impose an administrative fine on a transportation network company 106 who is determined to have committed such a violation in an amount based on the 107 number of drivers or passengers affected by the violation. Section 25 of this bill 108 requires each transportation network company that holds a permit issued by the 109 Authority to biannually submit certain reports to the Authority. 110 Existing law imposes an excise tax on the use of a digital network or software 111 application service of a transportation network company to connect a passenger to a 112 driver for the purpose of providing transportation services at the rate of 3 percent of 113 the total fare charged for the transportation services. (NRS 372B.140) Existing law 114 also imposes an excise tax on the use of a dispatch center, software application or 115 other digital means by an autonomous vehicle network company to connect a 116 passenger to a fully autonomous vehicle for the purpose of providing transportation 117 – 4 – - *AB459* services at the rate of 3 percent of the total fare charged for the transportation 118 services. (NRS 372B.145) Sections 29 and 30 of this bill impose an additional tax 119 on such activities by a transportation network company or autonomous vehicle 120 network company, respectively, at the rate of $1 for each transportation task, which 121 is defined as a specific trip during which transportation services are provided after a 122 connection to a passenger is made through such a digital network, software 123 application, dispatch center or other digital means, as applicable. Sections 29 and 124 30 require the proceeds of this tax to be used: (1) to reimburse the State for the cost 125 of collecting the tax; and (2) by a regional transportation commission or county to 126 pay the cost of establishing, operating or maintaining a public transit system. 127 Section 26 of this bill provides that the excise tax imposed by section 29 applies to 128 transportation tasks undertaken by a limousine driver pursuant to a contract with a 129 transportation network company. 130 THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS: Section 1. Chapter 706A of NRS is hereby amended by 1 adding thereto the provisions set forth as sections 2 to 25, inclusive, 2 of this act. 3 Sec. 2. As used in sections 2 to 25, inclusive, of this act, 4 unless the context otherwise requires, the words and terms defined 5 in sections 3 to 12, inclusive, of this act have the meanings 6 ascribed to them in those sections. 7 Sec. 3. “Available platform time” means the period of time 8 during which a driver or monitored autonomous vehicle provider 9 is logged into the digital network or software application service of 10 the company and is available to accept a transportation task. 11 Sec. 4. “Certified driver support organization” means a 12 driver support organization that is actively certified by the 13 Authority pursuant to section 19 of this act. 14 Sec. 5. “Consumer platform time” means the period of time 15 after which a driver or monitored autonomous vehicle provider 16 has picked up one or more passengers to which the driver or 17 autonomous vehicle provider, as applicable, has been connected 18 through the digital network or software application service of a 19 transportation network company to provide transportation 20 services, and which ends when all such passengers fully 21 disembark from the motor vehicle operated by the driver or 22 monitored autonomous vehicle provider. 23 Sec. 6. “Deactivate” or “deactivation” means any action 24 taken by a transportation network company to restrict or remove 25 the access of a driver or monitored autonomous vehicle provider to 26 the digital network or software application service of the company 27 for a period of 72 hours or more, such that the driver or monitored 28 autonomous vehicle provider is unable to accept a transportation 29 task through the network or application during that time. 30 – 5 – - *AB459* Sec. 7. “Dispatch platform time” means the period of time 1 after which a driver or monitored autonomous vehicle provider 2 has accepted a transportation task offered through the digital 3 network or software application service of the company but before 4 any passenger to w [Text truncated for display. 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