STATE OF NEW YORK
________________________________________________________________________
1264
2017-2018 Regular Sessions
IN SENATE
January 6, 2017
___________
Introduced by Sen. SEWARD -- read twice and ordered printed, and when
printed to be committed to the Committee on Rules
AN ACT to amend the vehicle and traffic law, the insurance law, the
executive law and the tax law, in relation to the regulation of trans-
portation network company services; and to establish the New York
State TNC Accessibility Task Force
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Legislative intent. The purpose of this act is to ensure
2 the safety, reliability, and cost-effectiveness of transportation
3 network company (TNC) services within the state of New York and to
4 preserve and enhance access to these important transportation options
5 for residents and visitors to the state.
6 § 2. The vehicle and traffic law is amended by adding a new article
7 44-B to read as follows:
8 ARTICLE 44-B
9 TRANSPORTATION NETWORK COMPANY SERVICES
10 Section 1691. Definitions.
11 1692. General provisions.
12 1693. Financial responsibility of transportation network compa-
13 nies.
14 1694. Disclosures.
15 1695. Insurance provisions.
16 1696. Driver and vehicle requirements.
17 1697. Maintenance of records.
18 1698. Audit procedures; confidentiality of records.
19 1699. Criminal history background check of transportation
20 network company drivers.
21 1700. Controlling authority.
22 § 1691. Definitions. As used in this article: 1. "Transportation
23 network company vehicle" or "TNC vehicle" means a vehicle that is:
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD07663-02-7
S. 1264 2
1 (a) used by a transportation network company driver to provide a TNC
2 prearranged trip within the state of New York;
3 (b) owned, leased or otherwise authorized for use by the transporta-
4 tion network company driver and shall not include:
5 (i) a taxicab, as defined in section one hundred forty-eight-a of this
6 chapter and section 19-502 of the administrative code of the city of New
7 York, or as otherwise defined in local law;
8 (ii) a livery vehicle, as defined in section one hundred twenty-one-e
9 of this chapter, or as otherwise defined in local law;
10 (iii) a black car, limousine, or luxury limousine, as defined in
11 section 19-502 of the administrative code of the city of New York, or as
12 otherwise defined in local law;
13 (iv) a for-hire vehicle, as defined in section 19-502 of the adminis-
14 trative code of the city of New York, or as otherwise defined in local
15 law;
16 (v) a bus, as defined in section one hundred four of this chapter;
17 (vi) any motor vehicle weighing more than six thousand five hundred
18 pounds unloaded;
19 (vii) any motor vehicle having a seating capacity of more than seven
20 passengers; and
21 (viii) any motor vehicle subject to section three hundred seventy of
22 this chapter.
23 2. "Digital network" means any system or service offered or utilized
24 by a transportation network company that enables TNC prearranged trips
25 with transportation network company drivers.
26 3. "Transportation network company" or "TNC" means a person, corpo-
27 ration, partnership, sole proprietorship, or other entity that is
28 licensed pursuant to this article and is operating in New York state
29 exclusively using a digital network to connect transportation network
30 company passengers to transportation network company drivers who provide
31 TNC prearranged trips.
32 4. "Transportation network company driver" or "TNC driver" means an
33 individual who:
34 (a) Receives connections to potential passengers and related services
35 from a transportation network company in exchange for payment of a fee
36 to the transportation network company; and
37 (b) Uses a TNC vehicle to offer or provide a TNC prearranged trip to
38 transportation network company passengers upon connection through a
39 digital network controlled by a transportation network company in
40 exchange for compensation or payment of a fee.
41 5. "Transportation network company passenger" or "passenger" means a
42 person or persons who use a transportation network company's digital
43 network to connect with a transportation network company driver who
44 provides TNC prearranged trips to the passenger in the TNC vehicle
45 between points chosen by the passenger.
46 6. "TNC prearranged trip" means the provision of transportation by a
47 transportation network company driver to a passenger provided through
48 the use of a TNC's digital network:
49 (a) beginning when a transportation network company driver accepts a
50 passenger's request for a trip through a digital network controlled by a
51 transportation network company;
52 (b) continuing while the transportation network company driver trans-
53 ports the requesting passenger in a TNC vehicle; and
54 (c) ending when the last requesting passenger departs from the TNC
55 vehicle.
S. 1264 3
1 7. "Group policy" means an insurance policy issued pursuant to section
2 three thousand four hundred fifty-five of the insurance law.
3 § 1692. General provisions. 1. A TNC or a TNC driver is not a common
4 carrier, as defined in subdivision six of section two of the transporta-
5 tion law; a contract carrier of passengers by motor vehicle, as defined
6 in subdivision nine of section two of the transportation law; or a motor
7 carrier, as defined in subdivision seventeen of section two of the
8 transportation law; nor do they provide taxicab or for-hire vehicle
9 service. Moreover, a TNC driver shall not be required to register the
10 TNC vehicle such TNC driver uses for TNC prearranged trips as a commer-
11 cial or for-hire vehicle, as set forth in article fourteen of this chap-
12 ter.
13 2. A TNC may not operate in the state of New York without first having
14 obtained a license issued by the department in a form and manner and
15 with applicable fees as provided for by regulations promulgated by the
16 commissioner. As a condition of obtaining a license, a TNC shall be
17 required to submit to the department proof of a group policy issued
18 pursuant to section three thousand four hundred fifty-five of the insur-
19 ance law. Failure of a TNC to obtain a license before operation, pursu-
20 ant to this subdivision shall constitute a misdemeanor. No license shall
21 be suspended or revoked except upon notice to the TNC and after an
22 opportunity to be heard.
23 3. A TNC must maintain an agent for service of process in the state of
24 New York.
25 4. On behalf of a TNC driver, a TNC may charge a fare for the services
26 provided to passengers; provided that, if a fare is collected from a
27 passenger, the TNC shall disclose to the passengers the fare or fare
28 calculation method on its website or within the application service. The
29 TNC shall also provide the passengers with the applicable rates being
30 charged and an estimated fare before the passenger enters the TNC vehi-
31 cle.
32 5. A TNC's digital network shall display a picture of the TNC driver,
33 and the make, model, color and license plate number of the TNC vehicle
34 utilized for providing the TNC prearranged trip before the passenger
35 enters the TNC vehicle.
36 6. Within a reasonable period of time following the completion of a
37 trip, a TNC shall transmit an electronic receipt to the passenger on
38 behalf of the TNC driver that lists:
39 (a) The origin and destination of the trip;
40 (b) The total time and distance of the trip;
41 (c) An itemization of the total fare paid, if any; and
42 (d) a separate statement of the applicable taxes.
43 7. A TNC driver shall not solicit or accept street hails.
44 8. A TNC shall adopt a policy prohibiting solicitation or acceptance
45 of cash payments for the fares charged to passengers for TNC prearranged
46 trips and notify TNC drivers of such policy. TNC drivers shall not
47 solicit or accept cash payments from passengers.
48 9. Nothing in this article shall apply to cities with a population of
49 one million or more.
50 § 1693. Financial responsibility of transportation network companies.
51 1. A TNC driver, or TNC on the TNC driver's behalf through a group poli-
52 cy, shall maintain insurance that recognizes that the driver is a TNC
53 driver and provides financial responsibility coverage:
54 (a) while the TNC driver is logged onto the TNC's digital network; and
55 (b) while the TNC driver is engaged in a TNC prearranged trip.
S. 1264 4
1 2. (a) The following automobile financial responsibility insurance
2 requirements shall apply while a TNC driver is logged onto the TNC's
3 digital network and is available to receive transportation requests but
4 is not engaged in a TNC prearranged trip: insurance against loss from
5 the liability imposed by law for damages, including damages for care and
6 loss of services, because of bodily injury to or death of any person,
7 and injury to or destruction of property arising out of the ownership,
8 maintenance, use or operation of a personal vehicle or vehicles within
9 this state, or elsewhere in the United States in North America or Cana-
10 da, subject to a limit, exclusive of interest and costs, with respect to
11 each such occurrence, of at least fifty thousand dollars because of
12 bodily injury to or death of one person in any one accident and, subject
13 to said limit for one person, to a limit of at least one hundred thou-
14 sand dollars because of bodily injury to or death of two or more persons
15 in any one accident, and to a limit of at least twenty-five thousand
16 dollars because of injury to or destruction of property of others in any
17 one accident provided, however, that such policy need not be for a peri-
18 od coterminous with the registration period of the personal vehicle
19 insured, and coverage in satisfaction of the financial responsibility
20 requirements set forth in section three thousand four hundred twenty of
21 the insurance law, article fifty-one of the insurance law, and such
22 other requirements or regulations that may apply for the purposes of
23 satisfying the financial responsibility requirements with respect to the
24 use or operation of a motor vehicle.
25 (b) The coverage requirements of paragraph (a) of this subdivision may
26 be satisfied by any of the following:
27 (i) insurance maintained by the TNC driver; or
28 (ii) insurance provided through a group policy maintained by the TNC;
29 or
30 (iii) a combination of subparagraphs (i) and (ii) of this paragraph.
31 3. (a) The following automobile financial responsibility insurance
32 requirements shall apply while a TNC driver is engaged in a TNC prear-
33 ranged trip: insurance against loss from the liability imposed by law
34 for damages, including damages for care and loss of services, because of
35 bodily injury to or death of any person, and injury to or destruction of
36 property arising out of the ownership, maintenance, use, or operation of
37 a specific personal vehicle or vehicles within this state, or elsewhere
38 in the United States in North America or Canada, subject to a limit,
39 exclusive of interest and costs, with respect to each such occurrence,
40 of at least one million dollars because of bodily injuries, death and
41 property damage, provided, however, that such policy need not be for a
42 period coterminous with the registration period of the personal vehicle
43 insured, and coverage in satisfaction of the financial responsibility
44 requirements set forth in section three thousand four hundred twenty of
45 the insurance law, article fifty-one of the insurance law, and such
46 other requirements or regulations that may apply for the purposes of
47 satisfying the financial responsibility requirements with respect to the
48 use or operation of a motor vehicle.
49 (b) The coverage requirements of paragraph (a) of this subdivision may
50 be satisfied by any of the following:
51 (i) insurance maintained by the TNC driver; or
52 (ii) insurance provided through a group policy maintained by the TNC;
53 or
54 (iii) a combination of subparagraphs (i) and (ii) of this paragraph.
55 4. A TNC shall, upon entering into a contractual agreement with a TNC
56 driver, provide notice to the TNC driver that he or she may need addi-
S. 1264 5
1 tional insurance coverage including motor vehicle physical damage cover-
2 age as described in paragraph nineteen of subsection (a) of section one
3 thousand one hundred thirteen of the insurance law if the TNC vehicle
4 being used by the TNC driver is subject to a lease or loan. A TNC shall
5 also post this notice on its website in a prominent place.
6 5. If insurance maintained by a TNC driver pursuant to subdivisions
7 two and three of this section has lapsed or does not provide the
8 required coverage, then the group policy maintained by a TNC shall
9 provide the coverage required by this section beginning with the first
10 dollar of a claim and have the duty to defend such claim.
11 6. Coverage under a group policy maintained by the TNC shall not be
12 dependent on the denial of a claim by the insurer that issued the insur-
13 ance policy used to register the TNC vehicle, nor shall that insurer be
14 required to first deny a claim.
15 7. Insurance required by this section may be placed with an insurer
16 authorized or eligible to write insurance in this state and shall be
17 eligible for placement by an excess line broker pursuant to section two
18 thousand one hundred eighteen of the insurance law.
19 8. A TNC driver who, while operating a TNC vehicle was either logged
20 on to the TNC's digital network and available to receive transportation
21 requests but not engaged in a TNC prearranged trip or was logged on to
22 the TNC's digital network and was engaged in a TNC prearranged trip, has
23 in effect the insurance required pursuant to this article and shall not
24 be deemed to be in violation of article six of this chapter during such
25 time that he or she was either logged onto the the TNC's digital network
26 and available to receive transportation requests but not engaged in a
27 TNC prearranged trip or was logged on to the TNC's digital network and
28 was engaged in a TNC prearranged trip.
29 9. A TNC driver shall carry proof of coverage satisfying subdivisions
30 two and three of this section with him or her at all times during his or
31 her use or operation of a TNC vehicle in connection with a TNC's digital
32 network. Such proof of coverage shall be in such form as the commission-
33 er shall prescribe, which may be in the form of an insurance identifica-
34 tion card as defined in section three hundred eleven of this chapter.
35 Any insurance identification card issued pursuant to the provisions of
36 this article shall be in addition to the insurance identification card
37 required pursuant to article six of this chapter, and nothing contained
38 in this article shall be deemed to supersede the requirements of such
39 article six. Whenever the production of an insurance identification card
40 is required by law, a TNC driver shall (a) produce the insurance iden-
41 tification card issued pursuant to article six of this chapter and, (b)
42 if such driver either (i) was logged onto the TNC's digital network and
43 available to receive transportation requests but not engaged in a TNC
44 prearranged trip or (ii) was logged on to the TNC's digital network and
45 was engaged in a TNC prearranged trip, such driver shall also produce
46 the insurance identification card required pursuant to this article.
47 10. The superintendent of financial services is authorized to issue
48 such rules and regulations necessary to implement this section.
49 11. Nothing in this section shall impose financial responsibility
50 requirements upon any entities operating as vehicles for hire in a city
51 with a population of one million or more.
52 § 1694. Disclosures. A TNC shall disclose in writing to TNC drivers
53 the following before they are allowed to accept a request for a TNC
54 prearranged trip on the TNC's digital network:
S. 1264 6
1 1. The insurance coverage, including the types of coverage and the
2 limits for each coverage, that the TNC provides while the TNC driver
3 uses a TNC vehicle in connection with a TNC's digital network;
4 2. That the TNC driver's own automobile insurance policy might not
5 provide any coverage while the TNC driver is logged on to the TNC's
6 digital network and is available to receive transportation requests or
7 is engaged in a TNC prearranged trip, depending on its terms; and
8 3. That, if a TNC vehicle has a lien against it, then the continued
9 use of such TNC vehicle by its TNC driver without physical damage cover-
10 age may violate the terms of the contract with the lienholder.
11 § 1695. Insurance provisions. 1. Insurers that write motor vehicle
12 insurance in this state may, in the insurance policy, exclude any and
13 all coverage afforded under the policy issued to an owner or operator of
14 a TNC vehicle for any loss or injury that occurs while a TNC driver is
15 logged on to a TNC's digital network or while a driver provides a prear-
16 ranged trip, including:
17 (a) liability coverage for bodily injury and property damage;
18 (b) coverage provided pursuant to article fifty-one of the insurance
19 law;
20 (c) uninsured and underinsured motorist coverage; and
21 (d) motor vehicle physical damage coverage as described in paragraph
22 nineteen of subsection (a) of section one thousand one hundred thirteen
23 of the insurance law.
24 2. Such exclusions shall apply notwithstanding any requirement under
25 the law to the contrary. Nothing in this section implies or requires
26 that an owner's policy of liability insurance or other motor vehicle
27 insurance policy provide coverage while the TNC driver is logged on to
28 the TNC's digital network, while the TNC driver is engaged in a TNC
29 prearranged trip or while the TNC driver otherwise uses or operates a
30 TNC vehicle to transport passengers for compensation.
31 3. Nothing shall be deemed to preclude an insurer from providing
32 primary, excess, or umbrella coverage for the TNC driver's TNC vehicle,
33 if it chose to do so by contract or endorsement.
34 4. Motor vehicle insurers that exclude the coverage described in this
35 article shall have no duty to defend or indemnify any claim expressly
36 excluded thereunder. Nothing in this article shall be deemed to invali-
37 date or limit an exclusion contained in a policy including any policy in
38 use or approved for use in this state prior to the effective date of the
39 chapter of the laws of two thousand seventeen that added this section.
40 5. A motor vehicle insurer that defends or indemnifies a claim against
41 a TNC driver that is excluded under the terms of its policy shall have a
42 right of contribution against other insurers that provide motor vehicle
43 insurance to the same driver in satisfaction of the coverage require-
44 ments of the provisions of the chapter of the laws of two thousand
45 seventeen which added this article at the time of loss.
46 6. In a claims coverage investigation, a TNC and any insurer poten-
47 tially providing coverage under this article shall, within fifteen days
48 after a claim has been filed, facilitate the exchange of relevant infor-
49 mation with directly involved parties and any insurer of the TNC driver
50 if applicable, including the precise times that a TNC driver logged on
51 and off of the TNC's digital network in the twelve hour period imme-
52 diately preceding and in the twelve hour period immediately following
53 the accident and disclose to one another a clear description of the
54 coverage, exclusions and limits provided under any motor vehicle insur-
55 ance maintained under this article.
S. 1264 7
1 7. The commissioner shall promulgate regulations for the provision of
2 relevant insurance coverage information required by this article to the
3 following persons upon request:
4 (a) a person to whom an accident report pertains or who is named in
5 such report, or his or her authorized representative; and
6 (b) any other person or his or her authorized representative who has
7 demonstrated to the satisfaction of the commissioner that such person is
8 or may be a party to a civil action arising out of the conduct described
9 in such accident report.
10 § 1696. Driver and vehicle requirements. 1. (a) At all times, an indi-
11 vidual acting as a TNC driver shall be permitted by the TNC as follows:
12 (i) The individual shall submit an application to the TNC, which shall
13 include information regarding his or her address, age, driver's license,
14 motor vehicle registration, automobile liability insurance, and other
15 information required by the TNC;
16 (ii) The TNC shall conduct a criminal background check for each appli-
17 cant in accordance with section sixteen hundred ninety-nine of this
18 article and that shall review:
19 (A) whether the applicant is listed on the New York state sex offender
20 registry pursuant to article six-c of the correction law; and
21 (B) The National Sex Offender registry maintained by the United States
22 Department of Justice;
23 (iii) The TNC shall obtain and review, or have a third party obtain
24 and review, a driving history research report for such individual.
25 (b) The TNC shall not permit an applicant where such applicant:
26 (i) fails to meet all qualifications pursuant to section sixteen
27 hundred ninety-nine of this article;
28 (ii) is a match in the United States Department of Justice National
29 Sex Offender Public Website;
30 (iii) does not possess a valid New York driver's license, unless such
31 applicant does possess a valid out of state driver's license and proof
32 that such applicant is an active duty member of the armed services of
33 the United States stationed in this state or is a family or household
34 member of such an active duty member;
35 (iv) does not possess proof of registration for the motor vehicle(s)
36 used to provide TNC prearranged trips;
37 (v) does not possess proof of automobile liability insurance for the
38 motor vehicle(s) used to provide TNC prearranged trips as a TNC vehicle;
39 or
40 (vi) is not at least nineteen years of age.
41 (c) Upon review of all information received and retained by the TNC
42 and upon verifying that the individual is not disqualified pursuant to
43 this section from receiving a TNC driver permit, a TNC may issue a TNC
44 driver permit to the applicant. The TNC shall review all information
45 received relating to such applicant and hold such information for six
46 years along with a certification that such applicant qualifies to
47 receive a TNC driver permit.
48 (d) (i) A TNC that issues a TNC driver's permit pursuant to this
49 section shall participate in the New York License Event Notification
50 Service (LENS) established by the department to obtain timely notice
51 when any of the following violations are added to a TNC driver's driving
52 record:
53 (A) unlawful fleeing a police officer in a motor vehicle in violation
54 of sections 270.35, 270.30 or 270.25 of the penal law;
55 (B) reckless driving in violation of section one thousand two hundred
56 twelve of this chapter;
S. 1264 8
1 (C) operating while license or privilege is suspended or revoked in
2 violation of section five hundred eleven of this chapter, excluding
3 subdivision seven of such section;
4 (D) operating a motor vehicle while under the influence of alcohol or
5 drugs in violation of section one thousand one hundred ninety-two of
6 this chapter; and
7 (E) leaving the scene of an incident without reporting in violation of
8 subdivision two of section six hundred of this chapter.
9 (e) No person shall operate a TNC vehicle or operate as a TNC driver
10 unless such person holds a valid TNC driver permit issued pursuant to
11 this section. A violation of this paragraph shall be a traffic infrac-
12 tion punishable by a fine of not less than seventy-five nor more than
13 three hundred dollars, or by imprisonment for not more than fifteen
14 days, or by both such fine and imprisonment.
15 2. A TNC shall implement a zero-tolerance policy regarding a TNC driv-
16 er's activities while accessing the TNC's digital network. Such policy
17 shall address the issue of operating a vehicle under the influence of
18 alcohol or drugs while a TNC driver is providing TNC prearranged trips
19 or is logged onto the TNC's digital network but is not providing TNC
20 prearranged trips, and the TNC shall provide notice of this policy on
21 its digital network, as well as procedures to report a complaint about a
22 TNC driver with whom a TNC prearranged trip was commenced and whom the
23 passenger reasonably suspects was operating a vehicle under the influ-
24 ence of alcohol or drugs during the course of the TNC prearranged trip.
25 3. (a) A TNC shall adopt a policy of non-discrimination on the basis
26 of destination, race, color, national origin, religious belief, practice
27 or affiliation, sex, disability, age, sexual orientation, gender identi-
28 ty, or genetic predisposition with respect to passengers and potential
29 passengers and notify TNC drivers of such policy.
30 (b) TNC drivers shall comply with all applicable laws regarding non-
31 discrimination against passengers or potential passengers on the basis
32 of destination, race, color, national origin, religious belief, practice
33 or affiliation, sex, disability, age, sexual orientation, gender identi-
34 ty, or genetic predisposition with respect to passengers and potential
35 passengers and notify TNC drivers of such policy.
36 (c) TNC drivers shall comply with all applicable laws relating to
37 accommodation of service animals.
38 (d) A TNC shall implement and maintain a policy of providing accessi-
39 bility to passengers or potential passengers with a disability and
40 accommodation of service animals as such term is defined in section one
41 hundred twenty-three-b of the agriculture and markets law and shall to
42 the extent practicable adopt findings established by the New York state
43 TNC accessibility task force adopted pursuant to section nineteen of the
44 chapter of the laws of two thousand seventeen that added this section.
45 A TNC shall not impose additional charges for providing services to
46 persons with physical disabilities because of those disabilities.
47 (e) The New York state division of human rights shall be authorized to
48 accept, review and investigate any potential or actual violations of
49 this subdivision in a form and manner consistent with authority under
50 article fifteen of the executive law and shall notify the department,
51 upon a finding of a violation, for purposes of permit suspension.
52 4. A TNC shall require that any motor vehicle(s) that a TNC driver
53 will use as a TNC vehicle to provide TNC prearranged trips meets appli-
54 cable New York state vehicle safety and emissions requirements, as set
55 forth in section three hundred one of this chapter, or the vehicle safe-
S. 1264 9
1 ty and emissions requirements of the state in which the vehicle is
2 registered.
3 5. The department shall promulgate regulations to ensure that each TNC
4 vehicle is easily identified as such and that the TNC for which the TNC
5 driver is providing the TNC service or TNC prearranged trip is distin-
6 guishable. Such demarcation shall be in such form as is approved by the
7 commissioner, and shall be attached, affixed or displayed in such manner
8 as he or she may prescribe by regulation.
9 § 1697. Maintenance of records. A TNC shall maintain the following
10 records:
11 1. individual trip records for at least six years from the date each
12 trip was provided; and
13 2. individual records of TNC drivers at least until the six year anni-
14 versary of the date on which a TNC driver's relationship with the TNC
15 has ended.
16 § 1698. Audit procedures; confidentiality of records. 1. For the sole
17 purpose of verifying that a TNC is in compliance with the requirements
18 of this article and no more than biannually, the department shall
19 reserve the right to visually inspect a sample of records that the TNC
20 is required to maintain, upon request by the department that shall be
21 fulfilled in no less than ten business days by the TNC. The sample shall
22 be chosen randomly by the department in a manner agreeable to both
23 parties. The audit shall take place at a mutually agreed location in New
24 York. Any record furnished to the department may exclude information
25 that would tend to identify specific drivers or passengers.
26 2. (a) The department shall establish regulations for the filing of
27 complaints against any TNC driver or TNC pursuant to this section.
28 (b) In response to a specific complaint against any TNC driver or TNC,
29 the department is authorized to inspect records held by the TNC that are
30 necessary to investigate and resolve the complaint. The TNC and the
31 department shall endeavor to have the inspection take place at a mutual-
32 ly agreed location in New York. Any record furnished to the department
33 may exclude information that would tend to identify specific drivers or
34 passengers, unless the identity of a driver or passenger is relevant to
35 the complaint.
36 3. The department shall promulgate regulations for the filing of
37 complaints pursuant to this section.
38 § 1699. Criminal history background check of transportation network
39 company drivers. 1. A transportation network company shall conduct a
40 criminal history background check using a lawful method approved by the
41 department pursuant to paragraph (a) of subdivision two of this section
42 for persons applying to drive for such company.
43 2. (a) The method used to conduct a criminal history background check
44 pursuant to subdivision one of this section shall be established in
45 regulations adopted by the department within 30 days of the effective
46 date of the chapter of the laws of 2017 that added this subdivision. To
47 ensure safety of the riders and the public such regulations shall estab-
48 lish the method used to conduct such background checks and any processes
49 and operations necessary to complete such checks. The review of criminal
50 history information and determinations about whether or not an applicant
51 is issued a TNC driver permit shall be controlled by paragraphs (b), (c)
52 and (d) of this subdivision.
53 (b) An applicant shall be disqualified to receive a TNC driver permit
54 where he or she:
55 (i) stands convicted in the last three years of: unlawful fleeing a
56 police officer in a motor vehicle in violation of sections 270.35,
S. 1264 10
1 270.30 or 270.25 of the penal law, reckless driving in violation of
2 section two thousand twelve of this chapter, operating while license or
3 privilege is suspended or revoked in violation of section five hundred
4 eleven of this chapter, excluding subdivision seven of such section, a
5 misdemeanor offense of operating a motor vehicle while under the influ-
6 ence of alcohol or drugs in violation of section one thousand one
7 hundred and ninety two of this chapter, or leaving the scene of an acci-
8 dent in violation of subdivision two of section six hundred of this
9 chapter. In calculating the three year period under this subparagraph,
10 any period of time during which the person was incarcerated after the
11 commission of such offense shall be excluded and such three year period
12 shall be extended by a period or periods equal to the time spent incar-
13 cerated; or
14 (ii) stands convicted in the last seven years of: a sex offense
15 defined in subdivision two of section 168-a of the correction law, a
16 felony offense defined in article one hundred twenty-five of the penal
17 law, a violent felony offense defined in section 70.02 of the penal law,
18 a class A felony offense defined in the penal law, vehicular assault in
19 violation of section 120.03, 120.04 or subdivision (a) of 120.04 of the
20 penal law, a felony offense defined in section eleven hundred ninety-two
21 of the vehicle and traffic law, an offense for which registration as a
22 sex offender is required pursuant to article six-C of the correction
23 law, or any conviction of an offense in any other jurisdiction that has
24 all the essential elements of an offense listed in this subparagraph. In
25 calculating the seven year period under this subparagraph, any period of
26 time during which the person was incarcerated after the commission of
27 such offense shall be excluded and such seven year period shall be
28 extended by a period or periods equal to the time spent incarcerated.
29 (c) A criminal history record that contains criminal conviction infor-
30 mation that does not disqualify an applicant pursuant to subparagraphs
31 (i) or (ii) of paragraph (b) of this subdivision, shall be reviewed and
32 considered according to the provisions of article twenty-three-A of the
33 correction law and subdivisions fifteen and sixteen of section two
34 hundred ninety-six of the executive law in determining whether or not
35 the applicant should be issued a TNC driver's permit.
36 (d) Upon receipt of criminal conviction information pursuant to this
37 section for any applicant, such applicant shall promptly be provided
38 with a copy of such information as well as a copy of article twenty-
39 three-A of the correction law. Such applicant shall also be informed of
40 his or her right to seek correction of any incorrect information
41 contained in such criminal history information pursuant to the regu-
42 lations and procedures established by the division of criminal justice
43 services.
44 (e) The department shall promulgate regulations for the purpose of
45 implementing the provisions of this subdivision.
46 3. A transportation network company shall update the criminal history
47 background check yearly during the period in which the person is author-
48 ized to drive for the company, however, the commissioner may require,
49 pursuant to regulation, more frequent criminal history background
50 checks.
51 4. To ensure safety of the riders and the public, a transportation
52 network company shall be responsible for all fees associated with the
53 criminal history check pursuant to subdivision one of this section.
54 5. Any transportation network company found to have violated any
55 requirements established pursuant to this section, shall on the first
56 instance, be subject to a civil penalty of not more than ten thousand
S. 1264 11
1 dollars. For any subsequent instance within the period of two years from
2 any initial violation, such transportation network company shall be
3 subject to a civil penalty of not more than fifty thousand dollars, or
4 the suspension or revocation of its TNC license or both.
5 § 1700. Controlling authority. 1. Notwithstanding any other provision
6 of law, the regulation of TNCs and TNC drivers is governed exclusively
7 by the provisions of the chapter of the laws of two thousand seventeen
8 which added this section and any rules promulgated by the state through
9 its agencies consistent with such chapter. No county, town, city or
10 village may enact a tax or any fee or other surcharge on a TNC, a TNC
11 driver, or a TNC vehicle used by a TNC driver or require a license,
12 permit, or additional insurance coverage or any other limitations or
13 restrictions, a TNC driver, or a TNC vehicle used by a TNC driver, where
14 such fee, surcharge, unauthorized tax, license, permit, insurance cover-
15 age, limitation or restriction, relates to facilitating or providing TNC
16 prearranged trips, or subjects a TNC, a TNC driver, or a TNC vehicle
17 used by a TNC driver to operational, or other requirements.
18 2. Nothing in this article shall authorize any TNC driver to pick-up a
19 passenger for purposes of a TNC prearranged trip in a city with a popu-
20 lation of one million or more.
21 3. Nothing in this article shall; (a) limit the ability of a county,
22 town, city or village to adopt or amend generally applicable limitations
23 or restrictions relating to local traffic or parking control as author-
24 ized by state law; or (b) to preempt any reciprocity agreements, includ-
25 ing agreements entered into pursuant to section four hundred ninety-
26 eight of this chapter, between a county, town, city or village that
27 relates to services regulated by section one hundred eighty-one of the
28 general municipal law.
29 § 3. Section 370 of the vehicle and traffic law is amended by adding a
30 new subdivision 8 to read as follows:
31 8. Notwithstanding any other provision of this article, an individual
32 shall not be deemed to be engaged in the business of carrying or trans-
33 porting passengers for hire if the individual does so solely as a trans-
34 portation network company driver in accordance with article forty-four-B
35 of this chapter.
36 § 4. Subdivision 1 of section 312-a of the vehicle and traffic law, as
37 amended by chapter 781 of the laws of 1983, is amended to read as
38 follows:
39 1. Upon issuance of an owner's policy of liability insurance or other
40 financial security required by this chapter or the article forty-four-B
41 of this chapter, an insurer shall issue proof of insurance in accordance
42 with the regulations promulgated by the commissioner pursuant to para-
43 graph (b) of subdivision two of section three hundred thirteen of this
44 article.
45 § 4-a. Section 600 of the vehicle and traffic law, as amended by chap-
46 ter 49 of the laws of 2005, is amended to read as follows:
47 § 600. Leaving scene of an incident without reporting. 1. Property
48 damage. a. Any person operating a motor vehicle who, knowing or having
49 cause to know that damage has been caused to the real property or to the
50 personal property, not including animals, of another, due to an incident
51 involving the motor vehicle operated by such person shall, before leav-
52 ing the place where the damage occurred, stop, exhibit his or her
53 license and insurance identification card for such vehicle, when such
54 card is required pursuant to articles six and eight of this chapter, and
55 give his or her name, residence, including street and number, insurance
56 carrier and insurance identification information including but not
S. 1264 12
1 limited to the number and effective dates of said individual's insurance
2 policy, and license number to the party sustaining the damage, or in
3 case the person sustaining the damage is not present at the place where
4 the damage occurred then he or she shall report the same as soon as
5 physically able to the nearest police station, or judicial officer. In
6 addition to the foregoing, any such person shall also: (i) produce the
7 proof of insurance coverage required pursuant to article forty-four-B of
8 this chapter if such person is a TNC driver operating a TNC vehicle
9 while the incident occurred who was either (A) logged on to the TNC's
10 digital network and available to receive transportation requests but not
11 engaged in a TNC prearranged trip or (B) was logged on to the TNC's
12 digital network and was engaged in a TNC prearranged trip; and (ii)
13 disclose whether he or she, at the time such incident occurred, was
14 either (A) logged on to the TNC's digital network and available to
15 receive transportation requests but not engaged in a TNC prearranged
16 trip or (B) was logged on to the TNC's digital network and was engaged
17 in a TNC prearranged trip.
18 b. It shall be the duty of any member of a law enforcement agency who
19 is at the scene of the accident to request the said operator or opera-
20 tors of the motor vehicles, when physically capable of doing so, to
21 exchange the information required hereinabove and such member of a law
22 enforcement agency shall assist such operator or operators in making
23 such exchange of information in a reasonable and harmonious manner.
24 A violation of the provisions of paragraph a of this subdivision shall
25 constitute a traffic infraction punishable by a fine of up to two
26 hundred fifty dollars or a sentence of imprisonment for up to fifteen
27 days or both such fine and imprisonment.
28 2. Personal injury. a. Any person operating a motor vehicle who,
29 knowing or having cause to know that personal injury has been caused to
30 another person, due to an incident involving the motor vehicle operated
31 by such person shall, before leaving the place where the said personal
32 injury occurred, stop, exhibit his or her license and insurance iden-
33 tification card for such vehicle, when such card is required pursuant to
34 articles six and eight of this chapter, and give his or her name, resi-
35 dence, including street and street number, insurance carrier and insur-
36 ance identification information including but not limited to the number
37 and effective dates of said individual's insurance policy and license
38 number, to the injured party, if practical, and also to a police offi-
39 cer, or in the event that no police officer is in the vicinity of the
40 place of said injury, then, he or she shall report said incident as soon
41 as physically able to the nearest police station or judicial officer.
42 In addition to the foregoing, any such person shall also: (i) produce
43 the proof of insurance coverage required pursuant to article
44 forty-four-B of this chapter if such person is a TNC driver operating a
45 TNC vehicle at the time of the incident who was either (A) logged on to
46 the TNC's digital network and available to receive transportation
47 requests but not engaged in a TNC prearranged trip or (B) was logged on
48 to the TNC's digital network and was engaged in a TNC prearranged trip;
49 and (ii) disclose whether he or she, at the time such incident occurred,
50 was either (A) logged on to the TNC's digital network and available to
51 receive transportation requests but not engaged in a TNC prearranged
52 trip or (B) was logged on to the TNC's digital network and was engaged
53 in a TNC prearranged trip.
54 b. It shall be the duty of any member of a law enforcement agency who
55 is at the scene of the accident to request the said operator or opera-
56 tors of the motor vehicles, when physically capable of doing so, to
S. 1264 13
1 exchange the information required hereinabove and such member of a law
2 enforcement agency shall assist such operator or operators in making
3 such exchange of information in a reasonable and harmonious manner.
4 c. A violation of the provisions of paragraph a of this subdivision
5 resulting solely from the failure of an operator to exhibit his or her
6 license and insurance identification card for the vehicle or exchange
7 the information required in such paragraph shall constitute a class B
8 misdemeanor punishable by a fine of not less than two hundred fifty nor
9 more than five hundred dollars in addition to any other penalties
10 provided by law. Any subsequent such violation shall constitute a class
11 A misdemeanor punishable by a fine of not less than five hundred nor
12 more than one thousand dollars in addition to any other penalties
13 provided by law. Any violation of the provisions of paragraph a of this
14 subdivision, other than for the mere failure of an operator to exhibit
15 his or her license and insurance identification card for such vehicle or
16 exchange the information required in such paragraph, shall constitute a
17 class A misdemeanor, punishable by a fine of not less than five hundred
18 dollars nor more than one thousand dollars in addition to any other
19 penalties provided by law. Any such violation committed by a person
20 after such person has previously been convicted of such a violation
21 shall constitute a class E felony, punishable by a fine of not less than
22 one thousand nor more than two thousand five hundred dollars in addition
23 to any other penalties provided by law. Any violation of the provisions
24 of paragraph a of this subdivision, other than for the mere failure of
25 an operator to exhibit his or her license and insurance identification
26 card for such vehicle or exchange the information required in such para-
27 graph, where the personal injury involved (i) results in serious phys-
28 ical injury, as defined in section 10.00 of the penal law, shall consti-
29 tute a class E felony, punishable by a fine of not less than one
30 thousand nor more than five thousand dollars in addition to any other
31 penalties provided by law, or (ii) results in death shall constitute a
32 class D felony punishable by a fine of not less than two thousand nor
33 more than five thousand dollars in addition to any other penalties
34 provided by law.
35 3. For the purposes of this article, the terms "TNC", "TNC driver",
36 "TNC vehicle", "TNC prearranged trip" and "digital network" shall have
37 the same meanings as such terms are defined in article forty-four-B of
38 this chapter.
39 § 4-b. Section 601 of the vehicle and traffic law, as amended by chap-
40 ter 672 of the laws of 2004, is amended to read as follows:
41 § 601. Leaving scene of injury to certain animals without reporting.
42 Any person operating a motor vehicle which shall strike and injure any
43 horse, dog, cat or animal classified as cattle shall stop and endeavor
44 to locate the owner or custodian of such animal or a police, peace or
45 judicial officer of the vicinity, and take any other reasonable and
46 appropriate action so that the animal may have necessary attention, and
47 shall also promptly report the matter to such owner, custodian or offi-
48 cer (or if no one of such has been located, then to a police officer of
49 some other nearby community), exhibiting his or her license and insur-
50 ance identification card for such vehicle, when such card is required
51 pursuant to articles six and eight of this chapter, giving his or her
52 name and residence, including street and street number, insurance carri-
53 er and insurance identification information and license number. In addi-
54 tion to the foregoing, any such person shall also: (i) produce the proof
55 of insurance coverage required pursuant to article forty-four-B of this
56 chapter is such person is a TNC driver operating a TNC vehicle at the
S. 1264 14
1 time of the incident who was either (A) logged on to the TNC's digital
2 network and available to receive transportation requests but not engaged
3 in a TNC prearranged trip or (B) was logged on to the TNC's digital
4 network and was engaged in a TNC prearranged trip and (ii) disclose
5 whether he or she, at the time such incident occurred, was either (A)
6 logged on to the TNC's digital network and available to receive trans-
7 portation requests but not engaged in a TNC prearranged trip or (B) was
8 logged on to the TNC's digital network and was engaged in a TNC prear-
9 ranged trip. Violation of this section shall be punishable by a fine of
10 not more than one hundred dollars for a first offense and by a fine of
11 not less than fifty nor more than one hundred fifty dollars for a second
12 offense and each subsequent offense; provided, however where the animal
13 that has been struck and injured is a guide dog, hearing dog or service
14 dog, as such terms are defined in section forty-seven-b of the civil
15 rights law which is actually engaged in aiding or guiding a person with
16 a disability, a violation of this section shall be [publishable] punish-
17 able by a fine of not less than fifty nor more than one hundred fifty
18 dollars for a first offense and by a fine of not less than one hundred
19 fifty dollars nor more than three hundred dollars for a second offense
20 and each subsequent offense.
21 § 5. The insurance law is amended by adding a new section 3455 to read
22 as follows:
23 § 3455. Transportation network company group insurance policies. (a)
24 For purposes of this section, the following definitions shall apply:
25 (1) "Transportation network company" shall have the same meaning as
26 set forth in article forty-four-B of the vehicle and traffic law.
27 (2) "Certificate" or "certificate of insurance" means any policy,
28 contract or other evidence of insurance, or endorsement thereto, issued
29 to a group member under a transportation network company group policy.
30 (3) "Transportation network company group policy" or "group policy"
31 means a group policy, including certificates issued to the group
32 members, where the group policyholder is a transportation network compa-
33 ny and the policy provides insurance to the transportation network
34 company and to group members:
35 (A) in accordance with the requirements of article forty-four-B of the
36 vehicle and traffic law;
37 (B) of the type described in paragraph thirteen, fourteen, or nineteen
38 of subsection (a) of section one thousand one hundred thirteen of this
39 chapter; and
40 (C) in satisfaction of the financial responsibility requirements set
41 forth in section three thousand four hundred twenty of this article,
42 subdivision four of section three hundred eleven of the vehicle and
43 traffic law, article fifty-one of this chapter, and such other require-
44 ments or regulations that may apply for the purposes of satisfying the
45 financial responsibility requirements with respect to the use or opera-
46 tion of a motor vehicle.
47 (4) "Group member" means a transportation network company driver as
48 defined in article forty-four-B of the vehicle and traffic law.
49 (5) "Group policyholder" means a transportation network company.
50 (6) "TNC vehicle" shall have the meaning set forth in article forty-
51 four-B of the vehicle and traffic law.
52 (b) An insurer may issue or issue for delivery in this state a trans-
53 portation network company group policy to a transportation network
54 company as a group policyholder only in accordance with the provisions
55 of this section.
S. 1264 15
1 (c)(1) A transportation network company group policy shall provide
2 coverage for a TNC vehicle in accordance with the requirements of arti-
3 cle forty-four-B of the vehicle and traffic law.
4 (2) A transportation network company group policy may provide:
5 (A) coverage for limits higher than the minimum limits required pursu-
6 ant to article forty-four-B of the vehicle and traffic law.
7 (B) supplementary uninsured/underinsured motorists insurance for bodi-
8 ly injury pursuant to paragraph two of subsection (f) of section three
9 thousand four hundred twenty of this article;
10 (C) supplemental spousal liability insurance pursuant to subsection
11 (g) of section three thousand four hundred twenty of this chapter; and
12 (D) motor vehicle physical damage coverage as described in paragraph
13 nineteen of subsection (a) of section one thousand one hundred thirteen
14 of this chapter.
15 (3) The coverage described in paragraphs one and two of this
16 subsection may be provided in one group policy or in separate group
17 policies. A transportation network company group policy, including
18 certificates, shall be issued by authorized insurers or from excess line
19 brokers pursuant to section sixteen hundred ninety-three of the vehicle
20 and traffic law.
21 (4) A policyholder also may be an insured under a group policy.
22 (d) The premium for the transportation network company group policy,
23 including certificates may be paid by the group policyholder from the
24 funds contributed:
25 (1) wholly by the group policyholder;
26 (2) wholly by the group members; or
27 (3) jointly by the group policyholder and the group members.
28 (e) (1) Any policy dividend, retrospective premium credit, or retro-
29 spective premium refund in respect of premiums paid by the group policy-
30 holder may:
31 (A) be applied to reduce the premium contribution of the group policy-
32 holder, but not in excess of the proportion to its contribution; or
33 (B) be retained by the group policyholder.
34 (2) Any policy dividend, retrospective premium credit, or retrospec-
35 tive premium refund not distributed under paragraph one of this
36 subsection shall be:
37 (A) applied to reduce future premiums and, accordingly, future
38 contributions, of existing or future group members, or both; or
39 (B) paid or refunded to those group members insured on the date the
40 payment or refund is made to the group policyholder, if distributed by
41 the group policyholder, or on the date of mailing, if distributed
42 directly by the insurer, subject to the following requirements:
43 (i) The insurer shall be responsible for determining the allocation of
44 the payment of refund to the group members;
45 (ii) If the group policyholder distributes the payment or refund, the
46 insurer shall be responsible for audit to ascertain that the payment or
47 refund is actually made in accordance with the allocation procedure; and
48 (iii) If the group policyholder fails to make the payment or refund,
49 the insurer shall make the payment or refund directly or use the method
50 provided in subparagraph (A) of this paragraph.
51 (3) Notwithstanding paragraphs one and two of this subsection, if a
52 dividend accrues upon termination of coverage under a transportation
53 network company group policy, the premium for which was paid out of
54 funds contributed by group members specifically for the coverage, the
55 dividend shall be paid or refunded by the group policyholder to the
56 group members insured on the date the payment or refund is made to the
S. 1264 16
1 group policyholder, net of reasonable expenses incurred by the group
2 policyholder in paying or refunding the dividend to such group members.
3 (4) For the purposes of this subsection, "dividend" means a return by
4 the insurer of a transportation network company group policy of excess
5 premiums to the group policyholder in light of favorable loss experi-
6 ence, including retrospective premium credits or retrospective premium
7 refunds. The term "dividend" does not include reimbursements or fees
8 received by a group policyholder in connection with the operation or
9 administration of a transportation network company group policy, includ-
10 ing administrative reimbursements, fees for services provided by the
11 group policyholder, or transactional service fees.
12 (f) The insurer shall treat in like manner all eligible group members
13 of the same class and status.
14 (g) Each policy written pursuant to this section shall provide per
15 occurrence limits of coverage for each group member in an amount not
16 less than that required by this article, and may provide coverage for
17 limits higher than the minimum limits required under the law.
18 (h) (1) The insurer shall be responsible for mailing or delivery of a
19 certificate of insurance to each group member insured under the trans-
20 portation network company group policy, provided, however, that the
21 insurer may delegate the mailing or delivery to the transportation
22 network company. The insurer shall also be responsible for the mailing
23 or delivery to each group member of an amended certificate of insurance
24 or endorsement to the certificate, whenever there is a change in limits;
25 change in type of coverage; addition, reduction, or elimination of
26 coverage; or addition of exclusion, under the transportation network
27 company group policy or certificate.
28 (2) The certificate shall contain in substance all material terms and
29 conditions of coverage afforded to group members, unless the transporta-
30 tion network company group policy is incorporated by reference and a
31 copy of the group policy accompanies the certificate.
32 (3) If any coverage afforded to the group member is excess of applica-
33 ble insurance coverage, the certificate shall contain a notice advising
34 the group members that, if the member has other insurance coverage,
35 specified coverages under the transportation network company group poli-
36 cy will be excess over the other insurance.
37 (i) A group policyholder shall comply with the provisions of section
38 two thousand one hundred twenty-two of this chapter, in the same manner
39 as an agent or broker, in any advertisement, sign, pamphlet, circular,
40 card, or other public announcement referring to coverage under a trans-
41 portation network company group policy or certificate.
42 (j) A transportation network company group policy shall not be subject
43 to section three thousand four hundred twenty-five or section three
44 thousand four hundred twenty-six of this article; provided that the
45 following requirements shall apply with regard to termination of cover-
46 age:
47 (1)(A) An insurer may terminate a group policy or certificate only if
48 cancellation is based on one or more of the reasons set forth in subpar-
49 agraph (A) through (D) or (F) through (H) of paragraph one of subsection
50 (c) of section three thousand four hundred twenty-six of this article;
51 provided, however, that an act or omission by a group member that would
52 constitute the basis for cancellation of an individual certificate shall
53 not constitute the basis for cancellation of the group policy.
54 (B) Where the premium is derived wholly from funds contributed by the
55 group policyholder, an insurer may cancel an individual certificate only
56 if cancellation is based on one or more of the reasons set forth in
S. 1264 17
1 subparagraph (B), (C) or (H) of paragraph one of subsection (c) of
2 section three thousand four hundred twenty-six of this article.
3 (2) (A) An insurer's cancellation of a group policy, including all
4 certificates, shall not become effective until thirty days after the
5 insurer mails or delivers written notice of cancellation to the group
6 policyholder at the mailing address shown in the policy.
7 (i) Where all or part of the premium is derived from funds contributed
8 by the group member specifically for the coverage, the insurer shall
9 also mail or deliver written notice of cancellation of the group policy
10 to the group member at the group member's mailing address. Such cancel-
11 lation shall not become effective until thirty days after the insurer
12 mails or delivers the written notice to the group member.
13 (ii) Where none of the premium is derived from funds contributed by a
14 group member specifically for the coverage, the group policy holder
15 shall mail or deliver written notice to the group member advising the
16 group member of the cancellation of the group policy and the effective
17 date of cancellation. The group policy holder shall mail or deliver the
18 written notice within ninety days after receiving notice of cancellation
19 from the insurer.
20 (B) An insurer's cancellation of an individual certificate shall not
21 become effective until thirty days after the insurer mails or delivers
22 written notice of cancellation to the group member at the group member's
23 mailing address and to the group policyholder at the mailing address
24 shown in the group policy.
25 (3) (A) A group policyholder may cancel a group policy, including all
26 certificates, or any individual certificate, for any reason upon thirty
27 days written notice to the insurer and each group member; and
28 (B) The group policyholder shall mail or deliver written notice to
29 each affected group member of the group policyholder's cancellation of
30 the group policy or certificate and the effective date of cancellation.
31 The group policyholder shall mail or deliver the written notice to the
32 group member's mailing address at least thirty days prior to the effec-
33 tive date of cancellation.
34 (4) (A) Unless a group policy provides for a longer policy period, the
35 policy and all certificates shall be issued or renewed for a one-year
36 policy period.
37 (B) The group policyholder shall be entitled to renew the group policy
38 and all certificates upon timely payment of the premium billed to the
39 group policyholder for the renewal, unless:
40 (i) the insurer mails or delivers to the group policyholder and all
41 group members written notice of nonrenewal, or conditional renewal; and
42 (ii) the insurer mails or delivers the written notice at least thirty,
43 but not more than one hundred twenty days prior to the expiration date
44 specified in the policy or, if no date is specified, the next anniver-
45 sary date of the policy.
46 (5) Where the group policyholder nonrenews the group policy, the group
47 policyholder shall mail or deliver written notice to each group member
48 advising the group member of nonrenewal of the group policy and the
49 effective date of nonrenewal. The group policyholder shall mail or
50 deliver written notice at least thirty days prior to the nonrenewal.
51 (6) Every notice of cancellation, nonrenewal, or conditional renewal
52 shall set forth the specific reason or reasons for cancellation, nonre-
53 newal, or conditional renewal.
54 (7) (A) An insurer shall not be required under this subsection to give
55 notice to a group member if the insurer has been advised by either the
S. 1264 18
1 group policyholder or another insurer that substantially similar cover-
2 age has been obtained from the other insurer without lapse of coverage.
3 (B) A group policyholder shall not be required under this subsection
4 to give notice to a group member if substantially similar coverage has
5 been obtained from another insurer without lapse of coverage.
6 (8) (A) If, prior to the effective date of cancellation, nonrenewal,
7 or conditional renewal of the group policy, or a certificate, whether
8 initiated by the insurer, group policyholder or by the group member in
9 regard to the group member's certificate, coverage attaches pursuant to
10 the terms of a group policy, then the coverage shall be effective until
11 expiration of the applicable period of coverage provided in the group
12 policy notwithstanding the cancellation, nonrenewal or conditional
13 nonrenewal of the group policy.
14 (B) Notwithstanding subparagraph (A) of this paragraph, an insurer may
15 terminate coverage under an individual certificate on the effective date
16 of cancellation, if the certificate is cancelled in accordance with the
17 provisions of subparagraph (B) of paragraph one of this subsection.
18 (k) Any mailing or delivery to a group member required or permitted
19 under this section may be made by electronic mail if consent to such
20 method of delivery has been previously received from such group member.
21 (l) An insurer may issue a transportation network company group policy
22 to a transportation network company, notwithstanding that it may be a
23 condition of operating a vehicle on the transportation network company's
24 digital network for the TNC driver to participate in such group policy.
25 (m) An insurer shall not include a mandatory arbitration clause in a
26 policy that provides financial responsibility coverage under this
27 section except as permitted in section five thousand one hundred five of
28 the insurance law.
29 § 6. Subsection (g) of section 5102 of the insurance law is amended to
30 read as follows:
31 (g) "Insurer" means the insurance company or self-insurer, as the case
32 may be, which provides the financial security required by article six
33 [or], eight, or forty-four-B of the vehicle and traffic law.
34 § 7. Subsection (b) of section 5103 of the insurance law is amended by
35 adding a new paragraph 4 to read as follows:
36 (4) Is injured while a motor vehicle is being used or operated by a
37 TNC driver pursuant to article forty-four-B of the vehicle and traffic
38 law, provided, however, that an insurer may not include this exclusion
39 in a policy used to satisfy the requirements under article forty-four-B
40 of the vehicle and traffic law.
41 § 8. Subsection (d) of section 5106 of the insurance law, as added by
42 chapter 452 of the laws of 2005, is amended to read as follows:
43 (d) [Where] (1) Except as provided in paragraph two of this
44 subsection, where there is reasonable belief more than one insurer would
45 be the source of first party benefits, the insurers may agree among
46 themselves, if there is a valid basis therefor, that one of them will
47 accept and pay the claim initially. If there is no such agreement, then
48 the first insurer to whom notice of claim is given shall be responsible
49 for payment. Any such dispute shall be resolved in accordance with the
50 arbitration procedures established pursuant to section five thousand one
51 hundred five of this article and [regulation] regulations as promulgated
52 by the superintendent, and any insurer paying first-party benefits shall
53 be reimbursed by other insurers for their proportionate share of the
54 costs of the claim and the allocated expenses of processing the claim,
55 in accordance with the provisions entitled "other coverage" contained in
56 regulation and the provisions entitled "other sources of first-party
S. 1264 19
1 benefits" contained in regulation. If there is no such insurer and the
2 motor vehicle accident occurs in this state, then an applicant who is a
3 qualified person as defined in article fifty-two of this chapter shall
4 institute the claim against the motor vehicle accident indemnification
5 corporation.
6 (2) A group policy issued pursuant to section three thousand four
7 hundred fifty-five of this chapter shall provide first party benefits
8 when a dispute exists as to whether a driver was using or operating a
9 motor vehicle in connection with a transportation network company when
10 loss, damage, injury, or death occurs. A transportation network company
11 shall notify the insurer that issued the owner's policy of liability
12 insurance of the dispute within ten business days of becoming aware that
13 the dispute exists. When there is a dispute, the group insurer liable
14 for the payment of first party benefits under a group policy shall have
15 the right to recover the amount paid from the driver's insurer to the
16 extent that the driver would have been liable to pay damages in an
17 action at law.
18 § 9. Subsection (b) of section 2305 of the insurance law, as amended
19 by chapter 11 of the laws of 2008, paragraph 13 as amended by chapter
20 136 of the laws of 2008, is amended to read as follows:
21 (b) rate filings for:
22 (1) workers' compensation insurance;
23 (2) motor vehicle insurance, or surety bonds, required by section
24 three hundred seventy of the vehicle and traffic law or article forty-
25 four-B of the vehicle and traffic law;
26 (3) joint underwriting;
27 (4) motor vehicle assigned risk insurance;
28 (5) insurance issued by the New York Property Insurance Underwriting
29 Association;
30 (6) risk sharing plans authorized by section two thousand three
31 hundred eighteen of this article;
32 (7) title insurance;
33 (8) medical malpractice liability insurance;
34 (9) insurance issued by the Medical Malpractice Insurance Association;
35 (10) mortgage guaranty insurance;
36 (11) credit property insurance, as defined in section two thousand
37 three hundred forty of this article; [and]
38 (12) gap insurance; and
39 (13) [Private] private passenger automobile insurance, except as
40 provided in section two thousand three hundred fifty of this article[.],
41 shall be filed with the superintendent and shall not become effective
42 unless either the filing has been approved or thirty days, which the
43 superintendent may with cause extend an additional thirty days and with
44 further cause extend an additional fifteen days, have elapsed and the
45 filing has not been disapproved as failing to meet the requirements of
46 this article, including the standard that rates be not otherwise unrea-
47 sonable. After a rate filing becomes effective, the filing and support-
48 ing information shall be open to public inspection. If a filing is
49 disapproved, then notice of such disapproval order shall be given, spec-
50 ifying in what respects such filing fails to meet the requirements of
51 this article. Upon his or her request, the superintendent shall be
52 provided with support and assistance from the workers' compensation
53 board and other state agencies and departments with appropriate juris-
54 diction. The loss cost multiplier for each insurer providing coverage
55 for workers' compensation, as defined by regulation promulgated by the
S. 1264 20
1 superintendent, shall be promptly displayed on the department's website
2 and updated in the event of any change.
3 § 10. Paragraph 1 of subsection (a) of section 3425 of the insurance
4 law, as amended by chapter 235 of the laws of 1989, is amended to read
5 as follows:
6 (1) "Covered policy" means a contract of insurance, referred to in
7 this section as "automobile insurance", issued or issued for delivery in
8 this state, on a risk located or resident in this state, insuring
9 against losses or liabilities arising out of the ownership, operation,
10 or use of a motor vehicle, predominantly used for non-business purposes,
11 when a natural person is the named insured under the policy of automo-
12 bile insurance; provided, however, that the use or operation of the
13 motor vehicle by a transportation network driver as a TNC vehicle in
14 accordance with article forty-four-B of the vehicle and traffic law
15 shall not be included in determining whether the motor vehicle is being
16 used predominantly for non-business purposes.
17 § 11. Subdivisions 1 and 3 of section 160-cc of the executive law, as
18 added by chapter 49 of the laws of 1999, are amended and a new subdivi-
19 sion 10 is added to read as follows:
20 1. "Black car operator" means the registered owner of a for-hire vehi-
21 cle, or a driver designated by such registered owner to operate the
22 registered owner's for-hire vehicle as the registered owner's authorized
23 designee, whose injury arose out of and in the course of providing
24 covered services to a central dispatch facility that is a registered
25 member of the New York black car operators' injury compensation fund,
26 inc. For the purposes of administration of this article, a black car
27 operator shall include a transportation network company driver as
28 defined in article forty-four-B of the vehicle and traffic law.
29 3. "Central dispatch facility" means a central facility, wherever
30 located, including a transportation network company, that (a) dispatches
31 the registered owners of for-hire vehicles, or drivers acting as the
32 designated agent of such registered owners, to both pick-up and
33 discharge passengers in the state, and (b) has certified to the satis-
34 faction of the department of state that more than ninety percent of its
35 for-hire business is on a payment basis other than direct cash payment
36 by a passenger; provided, however, that a central dispatch facility
37 shall not include any such central facility that owns fifty percent or
38 more of the cars it dispatches. For the purposes of administration of
39 this article, central dispatch facility shall include TNC prearranged as
40 defined in article forty-four-B of the vehicle and traffic law.
41 10. "Transportation network company" or "TNC" shall have the same
42 meaning as the term is defined in article forty-four-B of the vehicle
43 and traffic law.
44 § 12. Subdivision 1 of section 160-ff of the executive law, as added
45 by chapter 49 of the laws of 1999, is amended to read as follows:
46 1. [Within thirty days of the effective date of this article, there]
47 There shall be appointed a board of directors of the fund, consisting of
48 nine directors, [five] four of whom shall be selected by the black car
49 assistance corporation; [three] four of whom shall be chosen by the
50 governor, including one chosen upon the recommendation of the temporary
51 president of the senate and one chosen upon the recommendation of the
52 speaker of the assembly, and one chosen to represent a transportation
53 network company as defined by article forty-four-B of the vehicle and
54 traffic law; and one of whom shall be the secretary, who shall serve ex
55 officio. [The initial terms of directors other than the secretary shall
56 be staggered, the three directors appointed by the governor serving for
S. 1264 21
1 initial terms of three years from the effective date of this article,
2 three of the remaining five directors serving for initial terms of two
3 years from the effective date of this article and two directors serving
4 for initial terms of one year from the effective date of this article]
5 The term of the director appointed by the governor to represent the
6 transportation network company organization shall begin upon the expira-
7 tion of the term of a director selected by the black car assistance
8 corporation following December thirty-first, two thousand sixteen. In
9 the event that a director appointed by the black car assistance corpo-
10 ration is serving in an expired appointment on December thirty-first,
11 two thousand sixteen, such member shall be replaced immediately by a
12 director appointed by the governor to represent a transportation network
13 company organization. The [subsequent] terms of all directors other
14 than the secretary shall be three years. The board shall have the power
15 to remove for cause any director other than the secretary.
16 § 13. Subdivision 3 of section 160-jj of the executive law, as added
17 by chapter 49 of the laws of 1999, is amended to read as follows:
18 3. No local licensing authority or the department or the New York
19 state department of motor vehicles shall issue, continue or renew any
20 license or registration certificate, or permit for the operation of any
21 central dispatch facility unless such central dispatch facility, as a
22 condition of maintaining its license and/or registration certificate,
23 adds the surcharge required by this section to every invoice and billing
24 for covered services sent to, and every credit payment for covered
25 services received from, its customers and pays to the fund no later than
26 the fifteenth day of each month the total surcharges due pursuant to
27 this article.
28 § 14. Subdivision 1 of section 171-a of the tax law, as amended by
29 chapter 90 of the laws of 2014, is amended to read as follows:
30 1. All taxes, interest, penalties and fees collected or received by
31 the commissioner or the commissioner's duly authorized agent under arti-
32 cles nine (except section one hundred eighty-two-a thereof and except as
33 otherwise provided in section two hundred five thereof), nine-A,
34 twelve-A (except as otherwise provided in section two hundred eighty-
35 four-d thereof), thirteen, thirteen-A (except as otherwise provided in
36 section three hundred twelve thereof), eighteen, nineteen, twenty
37 (except as otherwise provided in section four hundred eighty-two there-
38 of), twenty-B, twenty-one, twenty-two, twenty-six, [twenty-six-B,] twen-
39 ty-eight (except as otherwise provided in section eleven hundred two or
40 eleven hundred three thereof), twenty-eight-A, twenty-nine-B (except as
41 otherwise provided in section twelve hundred ninety-eight thereof),
42 thirty-one (except as otherwise provided in section fourteen hundred
43 twenty-one thereof), thirty-three and thirty-three-A of this chapter
44 shall be deposited daily in one account with such responsible banks,
45 banking houses or trust companies as may be designated by the comp-
46 troller, to the credit of the comptroller. Such an account may be estab-
47 lished in one or more of such depositories. Such deposits shall be kept
48 separate and apart from all other money in the possession of the comp-
49 troller. The comptroller shall require adequate security from all such
50 depositories. Of the total revenue collected or received under such
51 articles of this chapter, the comptroller shall retain in the comp-
52 troller's hands such amount as the commissioner may determine to be
53 necessary for refunds or reimbursements under such articles of this
54 chapter out of which amount the comptroller shall pay any refunds or
55 reimbursements to which taxpayers shall be entitled under the provisions
56 of such articles of this chapter. The commissioner and the comptroller
S. 1264 22
1 shall maintain a system of accounts showing the amount of revenue
2 collected or received from each of the taxes imposed by such articles.
3 The comptroller, after reserving the amount to pay such refunds or
4 reimbursements, shall, on or before the tenth day of each month, pay
5 into the state treasury to the credit of the general fund all revenue
6 deposited under this section during the preceding calendar month and
7 remaining to the comptroller's credit on the last day of such preceding
8 month, (i) except that the comptroller shall pay to the state department
9 of social services that amount of overpayments of tax imposed by article
10 twenty-two of this chapter and the interest on such amount which is
11 certified to the comptroller by the commissioner as the amount to be
12 credited against past-due support pursuant to subdivision six of section
13 one hundred seventy-one-c of this article, (ii) and except that the
14 comptroller shall pay to the New York state higher education services
15 corporation and the state university of New York or the city university
16 of New York respectively that amount of overpayments of tax imposed by
17 article twenty-two of this chapter and the interest on such amount which
18 is certified to the comptroller by the commissioner as the amount to be
19 credited against the amount of defaults in repayment of guaranteed
20 student loans and state university loans or city university loans pursu-
21 ant to subdivision five of section one hundred seventy-one-d and subdi-
22 vision six of section one hundred seventy-one-e of this article, (iii)
23 and except further that, notwithstanding any law, the comptroller shall
24 credit to the revenue arrearage account, pursuant to section
25 ninety-one-a of the state finance law, that amount of overpayment of tax
26 imposed by article nine, nine-A, twenty-two, thirty, thirty-A, thirty-B
27 or thirty-three of this chapter, and any interest thereon, which is
28 certified to the comptroller by the commissioner as the amount to be
29 credited against a past-due legally enforceable debt owed to a state
30 agency pursuant to paragraph (a) of subdivision six of section one
31 hundred seventy-one-f of this article, provided, however, he shall cred-
32 it to the special offset fiduciary account, pursuant to section ninety-
33 one-c of the state finance law, any such amount creditable as a liabil-
34 ity as set forth in paragraph (b) of subdivision six of section one
35 hundred seventy-one-f of this article, (iv) and except further that the
36 comptroller shall pay to the city of New York that amount of overpayment
37 of tax imposed by article nine, nine-A, twenty-two, thirty, thirty-A,
38 thirty-B or thirty-three of this chapter and any interest thereon that
39 is certified to the comptroller by the commissioner as the amount to be
40 credited against city of New York tax warrant judgment debt pursuant to
41 section one hundred seventy-one-l of this article, (v) and except
42 further that the comptroller shall pay to a non-obligated spouse that
43 amount of overpayment of tax imposed by article twenty-two of this chap-
44 ter and the interest on such amount which has been credited pursuant to
45 section one hundred seventy-one-c, one hundred seventy-one-d, one
46 hundred seventy-one-e, one hundred seventy-one-f or one hundred seven-
47 ty-one-l of this article and which is certified to the comptroller by
48 the commissioner as the amount due such non-obligated spouse pursuant to
49 paragraph six of subsection (b) of section six hundred fifty-one of this
50 chapter; and (vi) the comptroller shall deduct a like amount which the
51 comptroller shall pay into the treasury to the credit of the general
52 fund from amounts subsequently payable to the department of social
53 services, the state university of New York, the city university of New
54 York, or the higher education services corporation, or the revenue
55 arrearage account or special offset fiduciary account pursuant to
56 section ninety-one-a or ninety-one-c of the state finance law, as the
S. 1264 23
1 case may be, whichever had been credited the amount originally withheld
2 from such overpayment, and (vii) with respect to amounts originally
3 withheld from such overpayment pursuant to section one hundred seventy-
4 one-l of this article and paid to the city of New York, the comptroller
5 shall collect a like amount from the city of New York.
6 § 14-a. Subdivision 1 of section 171-a of the tax law, as amended by
7 section 54 of part A of chapter 59 of the laws of 2014, is amended to
8 read as follows:
9 1. All taxes, interest, penalties and fees collected or received by
10 the commissioner or the commissioner's duly authorized agent under arti-
11 cles nine (except section one hundred eighty-two-a thereof and except as
12 otherwise provided in section two hundred five thereof), nine-A,
13 twelve-A (except as otherwise provided in section two hundred eighty-
14 four-d thereof), thirteen, thirteen-A (except as otherwise provided in
15 section three hundred twelve thereof), eighteen, nineteen, twenty
16 (except as otherwise provided in section four hundred eighty-two there-
17 of), twenty-one, twenty-two, twenty-six, [twenty-six-B,] twenty-eight
18 (except as otherwise provided in section eleven hundred two or eleven
19 hundred three thereof), twenty-eight-A, twenty-nine-B (except as other-
20 wise provided in section twelve hundred ninety-eight thereof), thirty-
21 one (except as otherwise provided in section fourteen hundred twenty-one
22 thereof), thirty-three and thirty-three-A of this chapter shall be
23 deposited daily in one account with such responsible banks, banking
24 houses or trust companies as may be designated by the comptroller, to
25 the credit of the comptroller. Such an account may be established in one
26 or more of such depositories. Such deposits shall be kept separate and
27 apart from all other money in the possession of the comptroller. The
28 comptroller shall require adequate security from all such depositories.
29 Of the total revenue collected or received under such articles of this
30 chapter, the comptroller shall retain in the comptroller's hands such
31 amount as the commissioner may determine to be necessary for refunds or
32 reimbursements under such articles of this chapter out of which amount
33 the comptroller shall pay any refunds or reimbursements to which taxpay-
34 ers shall be entitled under the provisions of such articles of this
35 chapter. The commissioner and the comptroller shall maintain a system of
36 accounts showing the amount of revenue collected or received from each
37 of the taxes imposed by such articles. The comptroller, after reserving
38 the amount to pay such refunds or reimbursements, shall, on or before
39 the tenth day of each month, pay into the state treasury to the credit
40 of the general fund all revenue deposited under this section during the
41 preceding calendar month and remaining to the comptroller's credit on
42 the last day of such preceding month, (i) except that the comptroller
43 shall pay to the state department of social services that amount of
44 overpayments of tax imposed by article twenty-two of this chapter and
45 the interest on such amount which is certified to the comptroller by the
46 commissioner as the amount to be credited against past-due support
47 pursuant to subdivision six of section one hundred seventy-one-c of this
48 article, (ii) and except that the comptroller shall pay to the New York
49 state higher education services corporation and the state university of
50 New York or the city university of New York respectively that amount of
51 overpayments of tax imposed by article twenty-two of this chapter and
52 the interest on such amount which is certified to the comptroller by the
53 commissioner as the amount to be credited against the amount of defaults
54 in repayment of guaranteed student loans and state university loans or
55 city university loans pursuant to subdivision five of section one
56 hundred seventy-one-d and subdivision six of section one hundred seven-
S. 1264 24
1 ty-one-e of this article, (iii) and except further that, notwithstanding
2 any law, the comptroller shall credit to the revenue arrearage account,
3 pursuant to section ninety-one-a of the state finance law, that amount
4 of overpayment of tax imposed by article nine, nine-A, twenty-two, thir-
5 ty, thirty-A, thirty-B or thirty-three of this chapter, and any interest
6 thereon, which is certified to the comptroller by the commissioner as
7 the amount to be credited against a past-due legally enforceable debt
8 owed to a state agency pursuant to paragraph (a) of subdivision six of
9 section one hundred seventy-one-f of this article, provided, however, he
10 shall credit to the special offset fiduciary account, pursuant to
11 section ninety-one-c of the state finance law, any such amount credita-
12 ble as a liability as set forth in paragraph (b) of subdivision six of
13 section one hundred seventy-one-f of this article, (iv) and except
14 further that the comptroller shall pay to the city of New York that
15 amount of overpayment of tax imposed by article nine, nine-A, twenty-
16 two, thirty, thirty-A, thirty-B or thirty-three of this chapter and any
17 interest thereon that is certified to the comptroller by the commission-
18 er as the amount to be credited against city of New York tax warrant
19 judgment debt pursuant to section one hundred seventy-one-l of this
20 article, (v) and except further that the comptroller shall pay to a
21 non-obligated spouse that amount of overpayment of tax imposed by arti-
22 cle twenty-two of this chapter and the interest on such amount which has
23 been credited pursuant to section one hundred seventy-one-c, one hundred
24 seventy-one-d, one hundred seventy-one-e, one hundred seventy-one-f or
25 one hundred seventy-one-l of this article and which is certified to the
26 comptroller by the commissioner as the amount due such non-obligated
27 spouse pursuant to paragraph six of subsection (b) of section six
28 hundred fifty-one of this chapter; and (vi) the comptroller shall deduct
29 a like amount which the comptroller shall pay into the treasury to the
30 credit of the general fund from amounts subsequently payable to the
31 department of social services, the state university of New York, the
32 city university of New York, or the higher education services corpo-
33 ration, or the revenue arrearage account or special offset fiduciary
34 account pursuant to section ninety-one-a or ninety-one-c of the state
35 finance law, as the case may be, whichever had been credited the amount
36 originally withheld from such overpayment, and (vii) with respect to
37 amounts originally withheld from such overpayment pursuant to section
38 one hundred seventy-one-l of this article and paid to the city of New
39 York, the comptroller shall collect a like amount from the city of New
40 York.
41 § 15. Paragraph 34 of subdivision (b) of section 1101 of the tax law,
42 as amended by section 1 of part WW of chapter 57 of the laws of 2010, is
43 amended to read as follows:
44 (34) Transportation service. The service of transporting, carrying or
45 conveying a person or persons by livery service; whether to a single
46 destination or to multiple destinations; and whether the compensation
47 paid by or on behalf of the passenger is based on mileage, trip, time
48 consumed or any other basis. A service that begins and ends in this
49 state is deemed intra-state even if it passes outside this state during
50 a portion of the trip. However, transportation service does not include
51 transportation of persons in connection with funerals. Transportation
52 service includes transporting, carrying, or conveying property of the
53 person being transported, whether owned by or in the care of such
54 person. Notwithstanding the foregoing, transportation service shall not
55 include a TNC prearranged trip, as that term is defined in article
56 forty-four-B of the vehicle and traffic law, that is subject to tax
S. 1264 25
1 under article twenty-nine-B of this chapter. In addition to what is
2 included in the definition of "receipt" in paragraph three of this
3 subdivision, receipts from the sale of transportation service subject to
4 tax include any handling, carrying, baggage, booking service, adminis-
5 trative, mark-up, additional, or other charge, of any nature, made in
6 conjunction with the transportation service. Livery service means
7 service provided by limousine, black car or other motor vehicle, with a
8 driver, but excluding (i) a taxicab, (ii) a bus, and (iii), in a city of
9 one million or more in this state, an affiliated livery vehicle, and
10 excluding any scheduled public service. Limousine means a vehicle with a
11 seating capacity of up to fourteen persons, excluding the driver. Black
12 car means a for-hire vehicle dispatched from a central facility. "Affil-
13 iated livery vehicle" means a for-hire motor vehicle with a seating
14 capacity of up to six persons, including the driver, other than a black
15 car or luxury limousine, that is authorized and licensed by the taxi and
16 limousine commission of a city of one million or more to be dispatched
17 by a base station located in such a city and regulated by such taxi and
18 limousine commission; and the charges for service provided by an affil-
19 iated livery vehicle are on the basis of flat rate, time, mileage, or
20 zones and not on a garage to garage basis.
21 § 16. The tax law is amended by adding a new article 29-B to read as
22 follows:
23 ARTICLE 29-B
24 STATE ASSESSMENT FEE ON TRANSPORTATION NETWORK COMPANY
25 PREARRANGED TRIPS
26 Section 1291. Definitions.
27 1292. Imposition.
28 1293. Presumption.
29 1294. Returns and payment of state assessment fee.
30 1295. Records to be kept.
31 1296. Secrecy of returns and reports.
32 1297. Practice and procedure.
33 1298. Deposit and disposition of revenue.
34 § 1291. Definitions. (a) "Person" means an individual, partnership,
35 limited liability company, society, association, joint stock company,
36 corporation, estate, receiver, trustee, assignee, referee or any other
37 person acting in a fiduciary or representative capacity, whether
38 appointed by a court or otherwise, any combination of individuals and
39 any other form of unincorporated enterprise owned or conducted by two or
40 more persons.
41 (b) "City" means a city of a million or more located in the metropol-
42 itan commuter transportation district established by section twelve
43 hundred sixty-two of the public authorities law.
44 (c) "Transportation network company" or "TNC" shall have the same
45 meaning as the term is defined in article forty-four-B of the vehicle
46 and traffic law.
47 (d) "TNC prearranged trip" shall have the same meaning as the term is
48 defined in article forty-four-B of the vehicle and traffic law.
49 (e) "TNC driver" shall have the same meaning as the term is defined in
50 article forty-four-B of the vehicle and traffic law.
51 (f) "TNC vehicle" shall have the same meaning as the term is defined
52 in article forty-four-B of the vehicle and traffic law.
53 (g) "Gross trip fare" means the sum of the base fare charge, distance
54 charge and time charge for a complete TNC prearranged trip at the rate
55 published by the TNC by or through which such trip is arranged.
S. 1264 26
1 § 1292. Imposition. There is hereby imposed on every TNC a state
2 assessment fee of four percent of the gross trip fare of every TNC
3 prearranged trip provided by such TNC that originates anywhere in the
4 state outside the city and terminates anywhere in this state.
5 § 1293. Presumption. For the purpose of the proper administration of
6 this article and to prevent evasion of the state assessment fee imposed
7 by this article, it shall be presumed that every TNC prearranged trip
8 that originates anywhere in the state outside the city is subject to the
9 state assessment fee. This presumption shall prevail until the contrary
10 is proven by the person liable for the fee.
11 § 1294. Returns and payment of state assessment fee. (a) Every person
12 liable for the state assessment fee imposed by this article shall file a
13 return on a calendar-quarterly basis with the commissioner. Each return
14 shall show the number of TNC prearranged trips in the quarter for which
15 the return is filed, together with such other information as the commis-
16 sioner may require. The returns required by this section shall be filed
17 within thirty days after the end of the quarterly period covered there-
18 by. If the commissioner deems it necessary in order to ensure the
19 payment of the state assessment fee imposed by this article, the commis-
20 sioner may require returns to be made for shorter periods than
21 prescribed by the foregoing provisions of this section, and upon such
22 dates as the commissioner may specify. The form of returns shall be
23 prescribed by the commissioner and shall contain such information as the
24 commissioner may deem necessary for the proper administration of this
25 article. The commissioner may require amended returns to be filed within
26 thirty days after notice and to contain the information specified in the
27 notice. The commissioner may require that the returns be filed electron-
28 ically.
29 (b) Every person required to file a return under this article shall,
30 at the time of filing such return, pay to the commissioner the total of
31 all state assessment fees on the correct number of trips subject to such
32 fee under this article. The amount so payable to the commissioner for
33 the period for which a return is required to be filed shall be due and
34 payable to the commissioner on the date specified for the filing of the
35 return for such period, without regard to whether a return is filed or
36 whether the return that is filed correctly shows the correct number of
37 trips or the amount of fees due thereon. The commissioner may require
38 that the fee be paid electronically.
39 § 1295. Records to be kept. Every person liable for the state assess-
40 ment fee imposed by this article shall keep:
41 (a) records of every TNC prearranged trip subject to the state assess-
42 ment fee under this article, and of all amounts paid, charged or due
43 thereon, in such form as the commissioner may require;
44 (b) true and complete copies of any records required to be kept by a
45 state agency that is authorized to permit or regulate a TNC; and
46 (c) such other records and information as the commissioner may require
47 to perform his or her duties under this article.
48 § 1296. Secrecy of returns and reports. (a) Except in accordance with
49 proper judicial order or as otherwise provided by law, it shall be
50 unlawful for the commissioner, any officer or employee of the depart-
51 ment, any person engaged or retained by the department on an independent
52 contract basis, or any person who in any manner may acquire knowledge of
53 the contents of a return or report filed with the commissioner pursuant
54 to this article, to divulge or make known in any manner any particulars
55 set forth or disclosed in any such return or report. The officers
56 charged with the custody of such returns and reports shall not be
S. 1264 27
1 required to produce any of them or evidence of anything contained in
2 them in any action or proceeding in any court, except on behalf of the
3 commissioner in an action or proceeding under the provisions of this
4 chapter or in any other action or proceeding involving the collection of
5 a state assessment fee due under this article to which the state or the
6 commissioner is a party or a claimant, or on behalf of any party to any
7 action, proceeding or hearing under the provisions of this article when
8 the returns, reports or facts shown thereby are directly involved in
9 such action, proceeding or hearing, in any of which events the court, or
10 in the case of a hearing, the division of tax appeals may require the
11 production of, and may admit into evidence, so much of said returns,
12 reports or of the facts shown thereby, as are pertinent to the action,
13 proceeding or hearing and no more. The commissioner or the division of
14 tax appeals may, nevertheless, publish a copy or a summary of any deci-
15 sion rendered after a hearing required by this article. Nothing in this
16 section shall be construed to prohibit the delivery to a person who has
17 filed a return or report or to such person's duly authorized represen-
18 tative of a certified copy of any return or report filed in connection
19 with such person's state assessment fee. Nor shall anything in this
20 section be construed to prohibit the publication of statistics so clas-
21 sified as to prevent the identification of particular returns or reports
22 and the items thereof, or the inspection by the attorney general or
23 other legal representatives of the state of the return or report of any
24 person required to pay the state assessment fee who shall bring action
25 to review the state assessment fee based thereon, or against whom an
26 action or proceeding under this chapter has been recommended by the
27 commissioner or the attorney general or has been instituted, or the
28 inspection of the returns or reports required under this article by the
29 comptroller or duly designated officer or employee of the state depart-
30 ment of audit and control, for purposes of the audit of a refund of any
31 state assessment fee paid by a person required to pay the state assess-
32 ment fee under this article. Provided, further, nothing in this section
33 shall be construed to prohibit the disclosure, in such manner as the
34 commissioner deems appropriate, of the names and other appropriate iden-
35 tifying information of those persons required to pay state assessment
36 fee under this article.
37 (b) Notwithstanding the provisions of subdivision (a) of this section,
38 the commissioner, in his or her discretion, may require or permit any or
39 all persons liable for any state assessment fee imposed by this article,
40 to make payment to banks, banking houses or trust companies designated
41 by the commissioner and to file returns with such banks, banking houses
42 or trust companies as agents of the commissioner, in lieu of paying any
43 such state assessment fee directly to the commissioner. However, the
44 commissioner shall designate only such banks, banking houses or trust
45 companies as are already designated by the comptroller as depositories
46 pursuant to section twelve hundred eighty-eight of this chapter.
47 (c) Notwithstanding the provisions of subdivision (a) of this section,
48 the commissioner may permit the secretary of the treasury of the United
49 States or such secretary's delegate, or the authorized representative of
50 either such officer, to inspect any return filed under this article, or
51 may furnish to such officer or such officer's authorized representative
52 an abstract of any such return or supply such person with information
53 concerning an item contained in any such return, or disclosed by any
54 investigation of liability under this article, but such permission shall
55 be granted or such information furnished only if the laws of the United
56 States grant substantially similar privileges to the commissioner or
S. 1264 28
1 officer of this state charged with the administration of the state
2 assessment fee imposed by this article, and only if such information is
3 to be used for purposes of tax administration only; and provided further
4 the commissioner may furnish to the commissioner of internal revenue or
5 such commissioner's authorized representative such returns filed under
6 this article and other tax information, as such commissioner may consid-
7 er proper, for use in court actions or proceedings under the internal
8 revenue code, whether civil or criminal, where a written request there-
9 for has been made to the commissioner by the secretary of the treasury
10 of the United States or such secretary's delegate, provided the laws of
11 the United States grant substantially similar powers to the secretary of
12 the treasury of the United States or his or her delegate. Where the
13 commissioner has so authorized use of returns and other information in
14 such actions or proceedings, officers and employees of the department
15 may testify in such actions or proceedings in respect to such returns or
16 other information.
17 (d) Returns and reports filed under this article shall be preserved
18 for three years and thereafter until the commissioner orders them to be
19 destroyed.
20 (e) (1) Any officer or employee of the state who willfully violates
21 the provisions of subdivision (a) of this section shall be dismissed
22 from office and be incapable of holding any public office for a period
23 of five years thereafter.
24 (2) Cross-reference: For criminal penalties, see article thirty-seven
25 of this chapter.
26 § 1297. Practice and procedure. The provisions of article twenty-seven
27 of this chapter shall apply with respect to the administration of and
28 procedure with respect to the state assessment fee imposed by this arti-
29 cle in the same manner and with the same force and effect as if the
30 language of such article twenty-seven had been incorporated in full into
31 this article and had expressly referred to the state assessment fee
32 under this article, except to the extent that any such provision is
33 either inconsistent with a provision of this article or is not relevant
34 to this article.
35 § 1298. Deposit and disposition of revenue. All taxes, fees, interest
36 and penalties collected or received by the commissioner under this arti-
37 cle shall be deposited and disposed of pursuant to the provisions of
38 section one hundred seventy-one-a of this chapter. From such taxes,
39 interest and penalties collected or received by the commissioner under
40 this article, twenty-five percent shall be deposited to the credit of a
41 dedicated transportation fund established pursuant to a chapter of the
42 laws of two thousand seventeen for the support of transportation related
43 needs throughout the state.
44 § 17. The tax law is amended by adding a new section 1822 to read as
45 follows:
46 § 1822. Violation of the state assessment fee on transportation
47 network company prearranged trips. Any willful act or omission by any
48 person that constitutes a violation of any provision of article twenty-
49 nine-B of this chapter shall constitute a misdemeanor.
50 § 18. Section 1825 of the tax law, as amended by section 89 of part A
51 of chapter 59 of the laws of 2014, is amended to read as follows:
52 § 1825. Violation of secrecy provisions of the tax law.--Any person
53 who violates the provisions of subdivision (b) of section twenty-one,
54 subdivision one of section two hundred two, subdivision eight of section
55 two hundred eleven, subdivision (a) of section three hundred fourteen,
56 subdivision one or two of section four hundred thirty-seven, section
S. 1264 29
1 four hundred eighty-seven, subdivision one or two of section five
2 hundred fourteen, subsection (e) of section six hundred ninety-seven,
3 subsection (a) of section nine hundred ninety-four, subdivision (a) of
4 section eleven hundred forty-six, section twelve hundred eighty-seven,
5 section twelve hundred ninety-six, subdivision (a) of section fourteen
6 hundred eighteen, subdivision (a) of section fifteen hundred eighteen,
7 subdivision (a) of section fifteen hundred fifty-five of this chapter,
8 and subdivision (e) of section 11-1797 of the administrative code of the
9 city of New York shall be guilty of a misdemeanor.
10 § 19. 1. For purposes of this section, transportation network company
11 shall mean a transportation network company as defined by article
12 forty-four-B of the vehicle and traffic law.
13 2. There is hereby established the New York State Transportation
14 Network Company Accessibility Task Force to analyze and advise on how to
15 maximize effective and integrated transportation services for persons
16 with disabilities in the transportation network company market. The New
17 York State Transportation Network Company Accessibility Task Force shall
18 consist of eleven members. Two members of the New York State Transporta-
19 tion Network Company Accessibility Task Force shall be appointed by the
20 speaker of the assembly. Two members of the New York State Transporta-
21 tion Network Company Accessibility Task Force shall be appointed by the
22 temporary president of the senate. Seven members of the New York State
23 Transportation Network Company Accessibility Task Force shall be
24 appointed by the governor and shall include, but not be limited to, two
25 representatives of groups who serve persons with disabilities and two
26 representatives from a transportation network company. The governor
27 shall designate two chairpersons to the New York State Transportation
28 Network Company Accessibility Task Force.
29 3. The New York State Transportation Network Company Accessibility
30 Task Force shall study the demand responsive transportation marketplace
31 and shall, in addition to any responsibilities assigned by the governor:
32 (a) conduct a needs assessment concerning the demand for demand respon-
33 sive accessible transportation; (b) conduct a resource assessment
34 concerning the availability of accessible demand responsive transporta-
35 tion services for persons with disabilities; (c) identify opportunities
36 for, and barriers to, increasing accessible demand responsive transpor-
37 tation service for persons with mobility disabilities; (d) propose stra-
38 tegies for increasing accessible demand responsive transportation
39 service for persons with disabilities; and (e) any other issues deter-
40 mined important to the task force in establishing a recommendation
41 pursuant to subdivision five of this section.
42 4. The New York State Transportation Network Company Accessibility
43 Task Force shall hold public hearings and provide an opportunity for
44 public comment on the activities described in subdivision two of this
45 section.
46 5. The New York State Transportation Network Company Accessibility
47 Task Force shall complete a report addressing the activities described
48 in subdivision two of this section and make a recommendation, supported
49 by such activities, recommending the amount of accessibility necessary
50 for adequate transportation for disabled passengers in order to utilize
51 transportation network companies and present such findings at a public
52 meeting where its members shall accept such report, pursuant to majority
53 vote of the task force, and present such report to the governor, the
54 speaker of the assembly and the temporary president of the senate, and
55 make such report publicly available for review.
S. 1264 30
1 6. Upon making the report described in subdivision five of this
2 section, the New York State Transportation Network Company Accessibility
3 Task Force shall be deemed dissolved.
4 § 20. Severability clause. If any provision of this act or the appli-
5 cation thereof is held invalid, such invalidity shall not affect other
6 provisions or applications of this act which can be given effect without
7 the invalid provision or application, and to this end the provisions of
8 this act are declared to be severable.
9 § 21. Each agency that is designated to perform any function or duty
10 pursuant to this act shall be authorized to establish rules and regu-
11 lations for the administration and execution of such authority in a
12 manner consistent with the provisions of this act and for the protection
13 of the public, health, safety and welfare of persons within this state.
14 § 22. This act shall take effect on the ninetieth day after it shall
15 have become a law; provided that the amendments to subdivision 1 of
16 section 171-a of the tax law made by section fourteen of this act shall
17 not affect the expiration of such subdivision and shall expire there-
18 with, pursuant to section 12 of chapter 90 of the laws of 2014, as
19 amended, when upon such date the provisions of section fourteen-a of
20 this act shall take effect.
