Transportation Network Company Transparency

The bill requires a transportation network company (TNC) operating in the state to provide various disclosures to the TNC's drivers regarding payments that a consumer makes to the TNC and the amount that the TNC then pays to a driver.

On or before May 1, 2025, a TNC is required to develop a driver deactivation and suspension policy describing the TNC's procedures for deactivating or suspending a driver from the TNC's digital platform.

The TNC is required to disclose to drivers its driver deactivation and suspension policy , and, on and after June 1, 2025, the TNC is required to comply with certain deactivation and suspension requirements regarding its policy, including a prohibition against deactivating or suspending a driver unless the deactivation or suspension is consistent with the TNC's policy. Beginning October 1, 2025, and every 3 years thereafter, the division of labor standards and statistics (division) in the department of labor and employment is required to certify a driver support organization (organization) to represent and support drivers through deactivation and suspension procedures. The division reviews the certified organization's budget, which budget must not exceed 7 cents per transportation task based on the previous year's total transportation tasks for all TNCs operating in the state. After the first certification period, the division may authorize an increased budget, not to exceed an increase above the rate of inflation for the previous 3-year certification period, to cover the certified organization's costs. Upon approval of the certified organization's budget, the division is required to direct each TNC to remit a quarterly share of the budget to the certified organization. Drivers may make voluntary, per-trip deductions on their earnings to help finance the certified organization.

On a semiannual basis commencing August 1, 2026, a TNC is required to disclose to the division of labor standards and statistics (division) in the department of labor and employment information regarding transportation tasks completed and any deactivations of drivers during the previous reporting period.

The division may impose fines against a TNC for violations of the bill. A person aggrieved by a TNC's violation of the bill may file a civil suit against the TNC seeking damages or injunctive relief.

The director of the division may adopt rules to implement the bill.

(Note: Italicized words indicate new material added to the original summary; dashes through words indicate deletions from the original summary.)

(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)