HB283 Alabama 2017 Session

Summary

Primary Sponsor

David FaulknerRepresentative

Republican

Session

Regular Session 2017

Title

Transportation Network Companies, Public Service Commission permit required to operate, minimum requirements imposed

Summary

HB283 regulates ride-sharing companies in Alabama by requiring state permits, safety and fare rules, local fee sharing, and limits on local regulation, while clarifying drivers as independent contractors.

What This Bill Does

The bill requires transportation network companies (TNCs) to obtain a Public Service Commission permit and pay a $5,000 annual fee, maintain an in-state agent, disclose fares to riders, and implement nondiscrimination policies. It imposes a 1% local assessment on gross trip fares for rides originating in Alabama, with quarterly reporting and distribution to municipalities and counties where rides start. It also sets driver qualifications, background checks, insurance requirements, and rules for receipts, driver/vehicle identification, and independent contractor status, while restricting local taxes or licenses on TNCs and allowing municipalities to ban operations within city limits. Finally, the act provides for recordkeeping, PSC rulemaking, and transitions for local governments, with certain exemptions (e.g., City of Bessemer).

Who It Affects

• Transportation network companies (TNCs) operating in Alabama must obtain the PSC permit, pay fees, maintain records, and follow new rules.
• TNC drivers must meet safety, background check, licensing, age, and insurance requirements and may be independent contractors under defined conditions.
• Riders must receive fare disclosure, driver/vehicle identification, and electronic receipts, and are protected by nondiscrimination and service-animal provisions.
• Local governments (cities/counties) will collect and receive distributions from the local assessment, and may restrict TNC operations within municipal boundaries; they cannot impose new taxes or licenses on TNCs or drivers for prearranged rides.

Key Provisions

• Permit requirement and $5,000 annual fee; existing operators may continue until PSC creates permit process.
• 1% local assessment on gross trip fare for prearranged rides; quarterly reporting and distribution to municipalities/counties by origin; PSC may retain up to 50% for administration.
• TNC must maintain an in-state agent for service of process and disclose fares to riders before ride (or provide an estimated fare).
• TNCs must display driver photo and vehicle license plate before rider enters and provide an electronic trip receipt with origin, destination, time, distance, and total fare.
• Drivers are independent contractors under specified conditions and must have auto insurance as required by state law.
• Criminal background checks and driving history reviewed; disqualifications include major violations or felony within set periods; age 19+; valid license and vehicle registration required.
• Nondiscrimination policy covering destination, race, national origin, religion, sex, disability, age, sexual orientation, and gender identity; compliance with service animal laws; no extra charges for disabilities.
• Recordkeeping: trip records for at least one year; driver records for at least one year after relationship ends.
• Local transition and exemptions: state law governs TNCs; municipalities with existing TNC permitting ordinances may continue; others have 90 days after the act’s effective date to adopt; City of Bessemer is exempt from the act.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Transportation