SB271 Alabama 2017 Session

Updated Feb 27, 2026

High Interest

Summary

Primary Sponsor: Bobby D. SingletonSenator
Democrat
Session: Regular Session 2017
Title: Transportation Network Companies, Public Service Commission permit required to operate, minimum requirements imposed
Summary: SB271 would regulate ride-sharing companies in Alabama by requiring a state permit, safety rules, fare transparency, and limits on local taxation and licensing.
What This Bill Does
If passed, the bill would require transportation network companies (TNCs) to obtain a Public Service Commission permit and pay a $5,000 annual fee, and to maintain a local agent for service of process. It would require drivers and vehicles used for prearranged rides to meet safety and consumer protections, ensure fare information is disclosed before trips, and display driver and vehicle details to riders. It would establish that drivers are independent contractors under certain conditions, plus impose background checks, insurance, and nondiscrimination requirements. It would also bar local governments from taxing or licensing TNCs, drivers, or vehicles, while allowing municipalities to ban TNCs from operating inside their limits.

Who It Affects
Transportation network companies (TNCs): must obtain PSC permits, pay annual fees, and comply with safety, fare transparency, and record-keeping requirements.
Municipalities and local authorities: cannot impose certain taxes, business licenses, or operating requirements on TNCs, drivers, or vehicles; may prohibit TNC operations within their corporate limits.

Key Provisions
Section 3: A TNC must obtain a Public Service Commission permit and pay an annual $5,000 fee; existing operators may continue until a permit process is established.
Section 4: A TNC must maintain an agent for service of process in Alabama.
Section 5: Fare transparency requirement; rider must see fare or calculation before the prearranged ride, with an estimated fare option if not disclosed.
Section 6: The TNC’s app must display the driver’s photo and the vehicle’s license plate before the rider enters the car.
Section 7: An electronic receipt must be sent to the rider after each trip, listing origin, destination, time, distance, and total fare.
Section 8: TNC drivers are independent contractors if certain conditions are met (no fixed login hours, no ban on using other TNCs, no prohibition on other work, and a written agreement).
Section 9: Drivers or the TNC on the driver’s behalf must maintain automobile insurance as required by law.
Section 10: TNCs must conduct background checks and driver qualification processes; disqualifications include multiple moving violations, certain major offenses, sex offenses, or lack of a valid license/vehicle registration, with a minimum age of 19.
Section 11: A TNC driver may only accept trips arranged through the TNC’s platform.
Section 12: Nondiscrimination policy required; drivers must follow nondiscrimination laws; service animal protections; no extra charges for service animals.
Section 13: TNCs must keep trip records for at least one year and driver records for at least one year after relationship ends.
Section 14: TNCs may not control or manage a driver’s vehicle or personal vehicle beyond written contract terms.
Section 16: The state intends uniform regulation; counties and municipalities may not impose taxes, business licenses, or rate/entry requirements on TNCs, drivers, or vehicles; airports may charge reasonable pickup fees; municipalities can prohibit TNCs within their corporate limits.
Section 15 and 17: PSC can adopt rules to implement the act; act becomes effective on the first day of the third month after governor’s approval.

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