HB190 Alabama 2018 Session

Summary

Primary Sponsor

David FaulknerRepresentative

Republican

Session

Regular Session 2018

Title

Transportation network companies, providing ride sharing for compensation, Public Service Commission permit required to operate, minimum requirements imposed

Summary

HB 190 would regulate ride‑sharing companies in Alabama by requiring state permits, safety and nondiscrimination rules, and a local fee system, while limiting local taxes and licenses on these services.

What This Bill Does

The bill requires each transportation network company (TNC) to obtain a permit from the Public Service Commission and maintain certain records. It imposes a 1% local assessment on the gross fare for prearranged rides originating in Alabama, with the money paid to the PSC and distributed to the municipality or county of origin. It also establishes driver background checks, insurance requirements, fare disclosures, driver/vehicle identification for riders, and a zero‑tolerance policy for intoxicants, along with nondiscrimination protections and penalties for noncompliance.

Who It Affects

• TNCs and their drivers would need a PSC permit, follow safety and background check rules, carry insurance, report and pay local fees, and could face penalties for violations.
• Riders and local governments (municipalities and counties) would benefit from fare transparency, driver and vehicle identification, and nondiscrimination protections; local governments would receive fee distributions and be restricted from imposing new taxes or licenses on TNCs or their drivers/vehicles.

Key Provisions

• TNCs must obtain a permit from the Public Service Commission; permits may be renewed annually; existing TNCs operating under municipal ordinances before 2018 may continue temporarily until permit processing/adoption.
• TNCs must maintain an agent for service of process in Alabama.
• TNCs must implement a nondiscrimination policy, a zero tolerance intoxicating substance policy, and maintain certain records; riders and drivers are protected under nondiscrimination provisions and service‑animal rules.
• Drivers must undergo local and national criminal background checks, review driving history, and be disqualified for certain violations or lack of valid license/insurance; drivers must be at least 19 years old and must not impersonate a TNC driver.
• TNCs must display a driver’s photo, first name, and vehicle make/model/plate on the app; riders receive an electronic receipt with trip details and driver first name; fare may be disclosed before the ride begins.
• TNCs shall collect a 1% local assessment fee on gross trip fares for prearranged rides originating in Alabama; funds are remitted to the PSC and distributed to the origin municipality or county.
• Local taxes or business licenses related to prearranged rides cannot be imposed on TNCs, drivers, or vehicles; local regulatory requirements related to prearranged rides are preempted by state law.
• The bill authorizes audits by independent CPA firms every two years to verify local assessment fees; penalties for noncompliance include civil penalties and possible permit revocation.
• Records must be kept for at least two years; the PSC may audit and may inspect records under privacy protections; GIS data is required for fee distribution, and annexation information must be reported.
• The act becomes effective July 1, 2018, with Section 4's provisions becoming operative August 1, 2018.

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