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Delaware General AssemblyDelaware RegulationsMonthly Register of RegulationsOctober 2018


Regulatory Flexibility Act Form

Authenticated PDF Version

2 DE Admin. Code 2289
Pursuant to the authority provided by 2 Del.C. §1922 and 21 Del.C. §302, the Delaware Department of Transportation (DelDOT), adopted the Transportation Network Companies regulation.
DelDOT will take written comments on these proposed general revisions to 2 DE Admin. Code 2289 from October 1, 2018 through October 31, 2018. The public may submit their comments to:
(Bruce.Demeter@state.de.us) or in writing to his attention,
"Department" means the Delaware Department of Transportation.
"Digital Network" means any online-enabled application, software, website or system offered or utilized by a transportation network company that enables the prearrangement of rides with transportation network company drivers.
"Director" means the Director or Chief Executive Officer of the Delaware Transit Corporation of the Department of Transportation.
"Division" means the Delaware Transit Corporation and the Office of Public Carrier.
"Division of Motor Vehicles or "DMV" means the vehicle inspection agency of the state in which a TNC vehicle is registered and tagged.
"Highway" means any road, lane, or street maintained by the State, or any municipality or county thereof, for use by the traveling public.
"Permit" means a formal authorization granted to a transportation network company, issued by the Delaware Department of Transportation, to operate a transportation network company's digital network or software application. The permit does not limit the number of transportation network company drivers and vehicles vetted by the transportation network company to operate on the digital network or software application.
"Permit Holder" means a transportation network company approved by the Delaware Department of Transportation to operate in State of Delaware.
"Personal Vehicle" means a motor vehicle that has been approved to be used by a transportation network company driver to perform rides arranged through a transportation network company digital network.
"Prearranged Ride" means the period of time that begins when a transportation network company driver accepts a requested ride through a digital network, continues while the transportation network company driver transports the rider in a personal vehicle, and ends when the rider departs from the personal vehicle.
"Rider" means an individual or persons who use a transportation network company's digital network to connect with a transportation network driver who provides prearranged rides to the rider in the transportation network company driver's personal vehicle between points chosen by the rider.
"Special event" means an occurrence that limits travel in the State of Delaware or limits transportation options with the State of Delaware to the public for a temporary or extended period of time. Special events include:
"Transportation Network Company (TNC) Driver" means an individual who uses a personal vehicle for hire, displaying the emblem or logo of the TNC they are operating for, to provide transportation services for passengers that are matched to that individual through a TNC's digital network, regardless of whether the individual is an employee or independent contractor for the TNC.
"Transportation Network Company (TNC) Services" means transportation of a rider between points chosen by the passenger and prearranged through the use of a TNC digital network or software application. TNC Services shall begin when a TNC driver accepts a request for transportation received through the approved TNC's digital network, continue while the TNC driver transports riders in the TNC driver's vehicle, and end when the rider exits the TNC driver's vehicle.
"Transportation Network Company (TNC) Vehicle" shall mean a personal vehicle that is used by a TNC Driver to provide transportation services requested through TNC's digital network or software application.
4.1.13 Comply with all applicable laws relating to accommodation of service animals. A TNC driver must accept, without extra charge, riders with service animals. A TNC driver can determine if the animal is a pet or service animal by asking the passenger what service(s) the animal has been certified to perform. No passenger shall be asked to explain or describe their disability. Service animals shall ride in the passenger compartment of a vehicle. It shall be a violation of this section for a TNC driver to place a service animal in any part of a vehicle other than the passenger compartment. A TNC driver may refuse to transport a service vehicle when the service animal is being aggressive or otherwise acting in a manner that represents a hazard to the TNC driver or other passengers.
4.1.15 Submit to the Division at the time of application and each year thereafter, an initial permit fee of $5,000. Each year thereafter, the TNC must submit the following:
5.3.5.1 Driving under the influence under 21 Del.C. §§4177, 4177J, 4177L, or 4177M;
Period 1: Digital network or Software Application open - waiting for a match.
6.7.3 Period 2 and 3 - TNCs shall also provide uninsured motorist coverage and underinsured motorist coverage in the minimum amount required under 18 Del.C. §3902. TNCs may satisfy this requirement through: (a) TNC insurance maintained by the driver, if the TNC verifies that the driver's TNC insurance covers the driver's use of a vehicle for TNC services; (b) TNC insurance maintained by the TNC; or (c) a combination of (a) and (b). The policy may also provide this coverage during any other time period, if requested by a participating driver relative to insurance maintained by the driver.
6.8.1 The TNC and/or a and TNC driver must provide proof of insurance information to the other party involved in the accident.
7.08.0 Additional Requirements
7.18.1 A TNC driver shall not solicit riders or service through a street hail or pick up, nor shall a TNC driver discharge a rider at a designated taxicab stand, no stopping or standing zone, or other area where a personal vehicle may not enter.
7.28.2 No TNC driver shall operate a personal vehicle within the State of Delaware, without first complying with all applicable business licensing requirements as determined by the Delaware Division of Revenue, Revenue.
7.38.3 No TNC driver shall operate a vehicle that has not been approved for TNC services or is unaffiliated with a TNC while on the TNC's digital network.
7.48.4 Payment and solicitation for TNC services shall only be made electronically via the TNC digital network. Cash payment shall not be accepted by the TNC driver.
7.58.5 Smoking is not permitted in a personal vehicle while providing TNC services.
7.68.6 The rider area of a TNC vehicle shall be clean, sanitary, and free of debris at all times.
8.09.0 Audit and Compliance
8.19.1 To maintain sufficient recordation of TNC operations in Delaware, the Division shall:
8.1.19.1.1 Maintain a file which includes, at a minimum:
8.1.1.19.1.1.1 A copy of the TNC's business license filed with the Delaware Division of Revenue if the TNC is required to obtain a business license.
8.1.1.29.1.1.2 A copy of the TNC's Certificate of Insurance for the policy required to be maintained under this regulation which identifies the Office of Public Carrier Regulation as a Certificate Holder.
8.1.1.39.1.1.3 A copy of the attestation provided by the TNC in accordance with Section 4.0.
8.29.2 To ensure a TNC's compliance with this regulation, the Division or its employees or duly authorized agents:
8.2.19.2.1 In response to a specific complaint or accident, may inspect those records held by the TNC whose review is specifically necessary for the investigation and resolution of the complaint or accident. Nothing provided in this Section shall be construed to prohibit the Division from investigating any complaint against a TNC driver or taking appropriate enforcement action in accordance with this Regulation.
8.2.29.2.2 No more than quarterly, request that On a biannual basis the TNC shall transmit to the Division records and information that the TNC is required to maintain in accordance with this regulation for up to fifty (50) TNC drivers; provided that, the TNC shall undertake best efforts not to share records and information about the same TNC driver during consecutive reporting periods. the names and driver license identification numbers of all approved TNC drivers. From that list, the Division may request the records of up to (50) drivers for audit. Audits shall be conducted no more than on a quarterly basis.
8.2.2.19.2.2.1 Within ten (10) business days of receiving a request to provide TNC driver records and information, the TNC shall transmit the records to the Division via a secure delivery method, which may include use of encryption security. If, after this initial review, the Division has a reasonable basis to conclude that the TNC is not in compliance with this regulation, the Division may, upon reasonable notice, conduct a supplemental audit of records and information for an additional selection of TNC drivers at a mutually agreed location.
8.39.3 Any records or information that the TNC discloses to the Division pursuant to this regulation are deemed to be confidential and proprietary, regardless of whether the records or information are marked as such, and shall not be disclosed by the Division to a third party or another governmental entity without the TNC's express written permission, unless required to be disclosed by applicable law or court order.
8.3.19.3.1 In the event that a third party submits a request to the Division for a TNC's confidential information under the Delaware Freedom of Information Act, 29 Del.C. §10001, et seq. or any other law or a lawsuit is filed seeking the disclosure of the TNC's confidential information, the Division shall: (i) assert applicable exemptions to the request as set forth in the Delaware Freedom of Information Act, 29 Del.C. §10001, et seq., or other applicable law; and (ii) promptly notify the TNC that it has received a request and inform the TNC of whether it will release the requested record(s) so that the TNC has an opportunity to prevent disclosure.
8.49.4 The Division shall destroy or return to the TNC any records it receives from the TNC pursuant to subsection 9.2.2 within one hundred and eighty (180) days of receiving such records unless required by law to retain the records for a longer period or the record relates to a TNC driver who the Division has a reasonable basis to believe is not properly authorized to operate in Delaware. The TNC shall advise the Division, in writing, if the records referenced in this provision shall be destroyed or returned to the TNC. If the records are to be returned, the TNC is responsible for providing the Division with the information necessary to successfully return the records.
8.59.5 The Division shall review the status of the TNC to ensure the TNC remains in good standing with the Delaware Division of Corporations.
8.69.6 A TNC shall keep and make available to the Division, when required, records in accordance with this regulation for a period of at least four years.
8.79.7 Per 21 Del.C. §2144, at any time and notwithstanding the possession of current registration plates, as provided by this title, the Secretary, or any authorized agent of the Department or any police officer may, upon reasonable cause, require the owner or operator of a vehicle to stop and submit such vehicle and the equipment to such further inspection and test with reference thereto as may be appropriate. In the event such vehicle is found to be in an unsafe condition or lacking the required equipment or is not in proper repair and adjustment, the officer shall give a written notice to the driver and shall send a copy thereof to the Department. The notice shall require that such vehicle and its equipment be placed in safe condition and in proper repair and adjustment and/or or that proper equipment be obtained, and that a certificate of inspection and approval for such vehicle be obtained within 5 days thereafter.
8.89.8 Within sixty (60) days of notification of audit results, the TNC may file with the Division a petition for redetermination of such assessments. Petitions for redetermination shall not be considered after sixty (60) days. Every petition for redetermination shall state specifically the reason(s) which the petitioner believes entitles the petitioner to such determination. It shall be the duty of the Director, within ninety (90) days after the receipt of the petition, to provide in writing to the petitioner, a determination affirming the original audit results or any changes that resulted from the petitioner's request for redetermination.
9.010.0 Fines and Permit Revocation
10.1 The Division may impose a fine or revoke a permit consistent with Delaware law, after providing to the TNC thirty (30) days' notice and the opportunity for a hearing, if a TNC fails to comply with the requirements of this regulation. Revocation of a permit would terminate a TNC's ability to operate its digital network within the State of Delaware.
10.011.0 Severability
Last Updated: December 31 1969 19:00:00.
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