SB143 Alabama 2018 Session

Summary

Primary Sponsor

Bobby D. SingletonSenator

Democrat

Session

Regular Session 2018

Title

Transportation network companies, Public Service Commission permit required to operate, minimum requirements imposed

Summary

SB 143 would regulate transportation network companies in Alabama by requiring permits, safety and anti-discrimination rules, a local fee system, and limits on local taxes.

What This Bill Does

First, a TNC must obtain a permit from the Public Service Commission, have an agent for service of process, and follow nondiscrimination and zero-tolerance policies, plus keep specified records. Second, drivers and vehicles providing prearranged rides must meet safety and consumer protection standards, including background checks, driving history checks, valid licenses and vehicle registrations, and required auto insurance. Third, TNCs must collect a local assessment fee equal to 1% of the gross trip fare for rides that originate in Alabama, remit it to the PSC, and the PSC must distribute portions to the municipality or county where the ride began; local governments are prohibited from imposing most taxes or licenses on TNCs, drivers, or vehicles. Fourth, the bill requires fare disclosure to riders, visible driver and vehicle information before boarding, post-trip electronic receipts listing trip details, and enforces penalties for noncompliance.

Who It Affects

• Transportation network companies (TNCs) and their drivers/vehicles would have to obtain permits, meet safety and insurance requirements, and undergo background checks, with specific disclosure and recordkeeping obligations.
• Municipalities and counties would receive distributions from the local assessment fees and be barred from most taxes or licenses on TNCs, drivers, or vehicles.

Key Provisions

• Permits: TNCs must obtain a permit from the Public Service Commission and may renew annually; existing municipal ordinances allowing TNCs before 2018 may operate temporarily until the permit process is in place.
• Driver/vehicle eligibility: TNCs must conduct local and national background checks, review driving history, verify a valid driver's license, vehicle registration, and auto insurance; disqualifications include serious moving violations, felonies within certain periods, sex offender status, and age under 19.
• Policies and safety: TNCs must implement a zero-tolerance intoxicating-substance policy, a nondiscrimination policy, and allow service-animal accommodations; violations can lead to suspension of driver access and investigations.
• Disclosures and receipts: The digital network must display driver photo, first name, and vehicle details; riders must receive fare information, with an option for an estimated fare if not disclosed; post-trip receipts must include origin/destination, time, distance, total fare, and driver’s first name.
• Fees and distribution: TNCs must collect a 1% local assessment on gross trip fares for rides originating in Alabama; the PSC distributes these funds to the origin municipality or unincorporated county area, with the PSC allowed to retain up to 50% for regulatory costs; an annual audit may be conducted by a third party.
• Records and privacy: TNCs must keep trip records for 2 years and driver records for 2 years after relationships end; audits and inspections are allowed under privacy protections, and identifying information may be restricted unless there is cause.
• Local government limits: Local authorities cannot impose most taxes or business licenses on TNCs, drivers, or vehicles for prearranged rides; airports and port authorities may charge reasonable pickup fees and related considerations.
• Enforcement and penalties: Violations by TNCs can lead to permit revocation or civil penalties (up to $500 per day); driver violations can result in suspensions or penalties (up to $100 per day); the act empowers the PSC to enforce these rules.
• Effective dates: The act takes effect July 1, 2018, with Section 4 (fee-related provisions) becoming operative August 1, 2018; GIS data for fee distribution is to be made available by July 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