Relating to the regulation of delivery network companies; requiring an occupational permit; authorizing a fee.

89(R) SB 2154 - Engrossed version - Bill Text

By: Schwertner

S.B. No. 2154

A BILL TO BE ENTITLED

AN ACT

relating to the regulation of delivery network companies; requiring

an occupational permit; authorizing a fee.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. The heading to Chapter 2402, Occupations Code,

is amended to read as follows:

CHAPTER 2402. TRANSPORTATION NETWORK
AND DELIVERY NETWORK

COMPANIES

SECTION 2. Section 2402.001, Occupations Code, is amended

by amending Subdivisions (1) and (2) and adding Subdivisions (1-a),

(1-b), (1-c), (2-a), and (3-a) to read as follows:

(1)
"Delivery customer" means an individual who orders

or receives a digitally prearranged delivery through a delivery

network company's digital network undertaken by a delivery person.

(1-a)

"Delivery network company" means a business

entity that offers or uses a digital network to arrange for the

delivery of food, beverages, or consumer goods from a restaurant or

retail establishment to a delivery customer.

The term does not

include an entity that only delivers products that the entity

produces or stores on the entity's premises.

(1-b)

"Delivery person" means an individual who

undertakes a digitally prearranged delivery in this state using a

delivery network company's digital network.

(1-c)
"Department" means the Texas Department of

Licensing and Regulation.

(2) "Digital network" means any online-enabled

application, website, or system offered or used by
:

(A)
a transportation network company that

enables the prearrangement of rides between passengers and drivers
;

or

(B)

a delivery network company that enables

digitally prearranged deliveries
.

(2-a)

"Digitally prearranged delivery" means the

transport and delivery or attempted delivery of goods to a delivery

customer that is prearranged through a delivery network company's

digital network.

The term may include the selection or collection

of items for delivery by an individual using a delivery network

company's digital network and other tasks incidental to delivery.

(3-a)

"Driver" means an individual who undertakes a

digitally prearranged ride between points chosen by a passenger.

SECTION 3. Section 2402.002, Occupations Code, is amended

to read as follows:

Sec. 2402.002. NATURE OF TRANSPORTATION NETWORK
AND

DELIVERY NETWORK
COMPANIES, DRIVERS,
DELIVERY PERSONS,
AND

VEHICLES. Transportation network companies
, delivery network

companies,
and drivers
or delivery persons
logged in to the

company's digital network are not common carriers, contract

carriers, or motor carriers.

SECTION 4. Section 2402.003(a), Occupations Code, is

amended to read as follows:

(a) Notwithstanding any other provision of law, and except

as provided by Subsections (b) and (c), the regulation of

transportation network companies,
delivery network companies,

drivers
or delivery persons
logged in to a digital network, and

vehicles used to provide digitally prearranged rides
or deliveries
:

(1) is an exclusive power and function of this state;

and

(2) may not be regulated by a municipality or other

local entity, including by:

(A) imposing a tax;

(B) requiring an additional license or permit;

(C) setting rates;

(D) imposing operational or entry requirements;

or

(E) imposing other requirements.

SECTION 5. Section 2402.004, Occupations Code, is amended

to read as follows:

Sec. 2402.004. PROVISIONS APPLICABLE TO DRIVERS
AND

DELIVERY PERSONS
LOGGED IN TO DIGITAL NETWORK. A provision of this

chapter that applies to a driver
or delivery person
logged in to a

digital network applies while the driver
or delivery person
is

logged in
:

(1)
to receive requests for digitally prearranged

rides
or deliveries; or

(2)
[
and
] while [
the driver is logged in and
]

providing a digitally prearranged ride
or delivery
.

SECTION 6. Section 2402.051(a), Occupations Code, is

amended to read as follows:

(a) A person may not operate a transportation network

company
or delivery network company
in this state without obtaining

and maintaining a permit issued under this chapter.

SECTION 7. Section 2402.052, Occupations Code, is amended

to read as follows:

Sec. 2402.052. FEE. (a) A transportation network company

or delivery network company
shall annually pay to the department a

fee to maintain a permit under this chapter in an amount determined

by department rule to cover the costs of administering this

chapter.

(b) The department may not impose a fee for:

(1) drivers
or delivery persons
authorized to use a

transportation network
company's or delivery network
company's

digital network; or

(2) vehicles used to provide digitally prearranged

rides
or deliveries
.

SECTION 8. Chapter 2402, Occupations Code, is amended by

adding Subchapter C-1 to read as follows:

SUBCHAPTER C-1.

OPERATION OF DELIVERY NETWORK COMPANIES

Sec.

2402.131.

INTOXICATING SUBSTANCE POLICY. (a) A

delivery network company shall implement an intoxicating substance

policy that prohibits a delivery person who is logged in to the

company's digital network from any amount of intoxication.

(b)

A delivery network company shall include on its Internet

website or digital network application:

(1)

a notice concerning the company's intoxicating

substance policy; and

(2)

the means to make a complaint about a suspected

violation of the policy.

(c)

A delivery network company shall maintain records

relevant to a complaint for a period of at least two years after the

date the complaint is received.

Sec.

2402.132.

DELIVERY PERSON REQUIREMENTS. (a) Before a

delivery network company authorizes an individual to access the

company's digital network as a delivery person, the company must:

(1) confirm that the individual:

(A) is at least 18 years of age; and

(B) maintains:

(i)

valid government-issued photo

identification; or

(ii)

if the individual indicates an

intention to undertake digitally prearranged deliveries by motor

vehicle, a valid driver's license issued by this state or another

state;

(2)

conduct, or cause to be conducted, a local, state,

and national criminal background check for the individual that

includes the use of:

(A)

a commercial multistate and

multijurisdiction criminal records locator or other similar

commercial nationwide database; and

(B)

the national sex offender public website

maintained by the United States Department of Justice or a

successor agency; and

(3)

if the individual indicates an intention to

undertake digitally prearranged deliveries by motor vehicle,

obtain and review the individual's driving record.

(b)

A delivery network company may not permit an individual

to log in as a delivery person on the company's digital network if:

(1)

the individual has been convicted in the preceding

seven-year period of any of the following:

(A)

driving while intoxicated under Section

49.04 or 49.045, Penal Code;

(B) use of a motor vehicle to commit a felony;

(C) a felony crime involving property damage;

(D) fraud;

(E) theft;

(F) an act of violence; or

(G) an act of terrorism;

(2)

the individual is found to be registered in the

national sex offender public website maintained by the United

States Department of Justice or a successor agency; or

(3)

for an individual who is authorized to undertake

digitally prearranged deliveries by motor vehicle, the individual

has been convicted in the three-year period preceding the issue

date of the driving record obtained under Subsection (a)(3) of:

(A)

more than four offenses classified by the

Department of Public Safety as moving violations; or

(B) one or more of the following offenses:

(i)

fleeing or attempting to elude a police

officer under Section 545.421, Transportation Code;

(ii)

reckless driving under Section

545.401, Transportation Code;

(iii)

driving without a valid driver's

license under Section 521.025, Transportation Code; or

(iv)

driving with an invalid driver's

license under Section 521.457, Transportation Code.

(c)

A delivery network company shall conduct or cause to be

conducted a criminal background check before authorizing a delivery

person to access the company's digital network.

(d)

A delivery network company shall restrict a delivery

person's access to the company's digital network at the request of

law enforcement or on receipt of a court order.

Sec.

2402.133.

NONDISCRIMINATION. (a) A delivery network

company shall adopt a policy that prohibits a delivery person

logged in to the company's digital network from discriminating on

the basis of a delivery customer's or potential delivery customer's

geographical location or destination, race, color, national

origin, religious belief or affiliation, sex, disability, or age.

(b)

For the purposes of Subsection (a), "sex" means the

physical condition of being male or female.

(c)

A delivery network company shall notify each person

authorized to log in as a delivery person on the company's digital

network of the nondiscrimination policy. A delivery person logged

in to the company's digital network shall comply with the

nondiscrimination policy.

(d)

A delivery network company may not impose an additional

charge for delivery to individuals with physical disabilities

because of those disabilities.

Sec.

2402.134.

DELIVERY PERSONS AS INDEPENDENT

CONTRACTORS. A delivery person is considered an independent

contractor for all purposes, and not an employee of a delivery

network company in any manner, if:

(1) the company does not:

(A)

prescribe the specific hours during which the

delivery person is required to be logged in to the company's digital

network;

(B)

impose restrictions on the delivery person's

ability to use other delivery network companies' digital networks;

(C)

prescribe the territory within which the

delivery person may provide deliveries; or

(D)

restrict the delivery person from engaging in

another occupation or business; and

(2)

the company and the delivery person agree in

writing that the delivery person is an independent contractor.

SECTION 9. Section 2402.151, Occupations Code, is amended

by adding Subsection (a-1) to read as follows:

(a-1)

A delivery network company shall maintain records

evidencing compliance with the requirements of this chapter for a

period of two years.

SECTION 10. Section 2402.152, Occupations Code, is amended

to read as follows:

Sec. 2402.152. COLLECTION, USE, OR DISCLOSURE OF RECORDS

AND OTHER COMPANY INFORMATION. (a) Any records, data, or other

information disclosed to a public entity in this state, including

the department, by a transportation network company
or delivery

network company
, including names, addresses, and any other

personally identifiable information of drivers
or delivery persons

is not subject to disclosure under Chapter 552, Government Code.

(b) A public entity, including the department, may not

disclose any records, data, or other information provided by a

transportation network company
or delivery network company
under

this chapter to a third party except in compliance with a court

order or subpoena. If information provided under this chapter is

sought through a court order or subpoena, the public entity shall

promptly notify the transportation network company
or delivery

network company
to afford the company the opportunity to take

actions to prevent disclosure.

(c) In collecting, using, or disclosing any records, data,

or other information submitted by a transportation network company

or delivery network company
under this chapter, a public entity,

including the department, shall:

(1) consider the potential risks to the privacy of the

individuals whose information is being collected, used, or

disclosed;

(2) ensure that the information to be collected, used,

or disclosed is necessary, relevant, and appropriate to the proper

administration of this chapter; and

(3) take all reasonable measures and make all

reasonable efforts to protect, secure, and, where appropriate,

encrypt or limit access to the information.

(d) A transportation network company
or delivery network

company
required to submit, disclose, or otherwise provide

personally identifiable information of drivers
or delivery persons

to a public entity of this state, including the department, is not

liable in any civil or criminal action for any unauthorized

disclosure, misuse, alteration, destruction, access or

acquisition, or use of the information that occurs while the

information is in the possession of any public entity of this state.

SECTION 11. Section 2402.153, Occupations Code, is amended

to read as follows:

Sec. 2402.153. DISCLOSURE OF PASSENGER
OR DELIVERY CUSTOMER

INFORMATION. (a) A transportation network company
or delivery

network company
may disclose a passenger's
or delivery customer's

personal identifying information to a third party only if:

(1) the passenger
or delivery customer
consents;

(2) the disclosure is required by a legal obligation;

or

(3) the disclosure is required to:

(A) protect or defend the terms of use of the

transportation network company
or delivery network company

service; or

(B) investigate a violation of those terms.

(b) Notwithstanding Subsection (a), a transportation

network company
or delivery network company
may share a passenger's

or delivery customer's
name with a driver
or delivery person

accessing the company's digital network to facilitate:

(1) identification of the passenger
or delivery

customer
by the driver
or delivery person
; or

(2) communication between the passenger
or delivery

customer
and the driver
or delivery person
.

SECTION 12. Section 2402.154, Occupations Code, is amended

to read as follows:

Sec. 2402.154. DATA SHARING WITH MUNICIPALITY. A

municipality and a transportation network company
or delivery

network company
may voluntarily enter into an agreement under which

the company shares the company's data with the municipality.

SECTION 13. Section 2402.201, Occupations Code, is amended

to read as follows:

Sec. 2402.201. PERMIT SUSPENSION OR REVOCATION. The

department may suspend or revoke a permit issued to a

transportation network company
or delivery network company
that

violates a provision of this chapter.

SECTION 14. This Act takes effect September 1, 2025.