HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/CS/HB 1039 Transportation Network Companies
SPONSOR(S): State Affairs Committee, Transportation & Infrastructure Subcommittee, Rommel
TIED BILLS: IDEN./SIM. BILLS: CS/SB 1352
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Transportation & Infrastructure Subcommittee 12 Y, 0 N, As CS Roth Vickers
2) Insurance & Banking Subcommittee 11 Y, 0 N Lloyd Cooper
3) State Affairs Committee 23 Y, 0 N, As CS Roth Williamson
SUMMARY ANALYSIS
A transportation network company (TNC) is an entity that uses a digital network to connect a rider to a TNC
driver, who provides prearranged rides. A TNC vehicle is not a for-hire vehicle or a limousine. With certain
exceptions, a “for-hire vehicle” means any motor vehicle used for transporting persons or goods for
compensation, or let or rented to another for consideration. There are different regulatory and insurance
requirements in place for TNCs and for-hire vehicles.
The bill allows a motor vehicle compliant with the Americans with Disabilities Act, a limousine, and a luxury for-
hire vehicle to be operated as a TNC. The bill defines “luxury ground transportation network company” to mean
a company that uses its digital network to connect riders exclusively to drivers who operate for-hire vehicles,
including limousines and luxury sedans. The bill requires luxury ground TNCs to comply with all of the
requirements applicable to a TNC, and requires maintenance of specific insurance coverage at all times.
The bill authorizes TNC drivers to contract for the installation of TNC digital advertising devices on the TNC
vehicle. The bill defines “transportation network company digital advertising device” to mean a device no larger
than 20 inches tall and 54 inches long that is fixed to the roof of a TNC vehicle that displays advertisements on
a digital screen only while the TNC vehicle is turned on. The bill provides additional requirements for the use
and display of a TNC digital advertising device.
The bill provides that a luxury ground TNC is not considered a for-hire vehicle and that the regulation of luxury
ground TNCs, luxury ground TNC drivers, and luxury ground TNC vehicles is preempted to the state.
The bill may have an indeterminate negative fiscal impact on the state and local governments. See Fiscal
Analysis section for details.
This document does not reflect the intent or official position of the bill sponsor or House of Representatives.
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 FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Current Situation
Transportation Network Companies
In 2017, the Legislature established a regulatory framework for transportation network companies
(TNCs).1 A TNC is an entity operating in this state that uses a digital network to connect a rider2 to a
TNC driver, who provides prearranged rides. A TNC is not deemed to own, control, operate, direct, or
manage the TNC vehicles or TNC drivers that connect to its digital network, except where agreed to by
written contract, and is not a taxicab association or for-hire vehicle owner. The term does not include
entities arranging nonemergency medical transportation for individuals who qualify for Medicaid or
Medicare pursuant to a contract with the state or a managed care organization.
A “TNC vehicle” is a vehicle that is used by a TNC driver to offer or provide a prearranged ride that is
owned, leased, or otherwise authorized to be used by the TNC driver. A vehicle that is let or rented to
another for consideration may be used as a TNC vehicle. The law specifies that a taxicab, jitney,
limousine, or for-hire vehicle is not a TNC vehicle.
A “prearranged ride” is the provision of transportation by a TNC driver to a rider, beginning when a TNC
driver accepts a ride requested by a rider through a digital network3 controlled by a TNC, continuing
while the TNC driver transports the requesting rider, and ending when the last requesting rider departs
from the TNC vehicle. The term does not include a taxicab, for-hire vehicle, or street hail4 service and
does not include ridesharing,5 carpool,6 or any other type of service in which the driver receives a fee
that does not exceed the driver’s cost to provide the ride. TNC drivers are prohibited from soliciting or
accepting street hails.
A “TNC driver” is an individual who receives connections to potential riders and related services from a
TNC and in return for compensation, uses a TNC vehicle to offer or provide a prearranged ride to a
rider upon connection through a digital network. The law specifies that a TNC or TNC driver is not a
common carrier, contract carrier, or motor carrier and does not provide taxicab or for-hire vehicle
service. The law provides that a TNC driver is not required to register a TNC vehicle as a commercial
motor vehicle or a for-hire vehicle. The TNC’s digital network must display the TNC driver’s photograph
and the TNC vehicle’s license plate number before the rider enters the TNC vehicle.
If a fare is collected from a rider, the TNC must disclose the fare or fare calculation method on its
website or within the online-enabled technology application service before beginning the prearranged
1
Section 627.748, F.S.
2
“Rider” means an individual who uses a digital network to connect with a TNC driver in order to obtain a prearranged ride in the
TNC driver’s TNC vehicle between points chosen by the rider.
3
The term “digital network” means any online-enabled technology application service, website, or system offered or used by a TNC
that enables the prearrangement of riders with TNC drivers.
4
The term “street hail” means an immediate arrangement on a street with a driver by a person using any method other than a digital
network to seek immediate transportation.
5
Section 341.031(9)(a), F.S., defines “ridesharing” as an “arrangement between persons with a common destination, or destinations,
within the same proximity, to share the use of a motor vehicle on a recurring basis for round-trip transportation to and from their place
of employment or other common destination. For purposes of ridesharing, employment shall be deemed to commence when an
employee arrives at the employer's place of employment to report for work and shall be deemed to terminate when the employee
leaves the employer's place of employment, excluding areas not under the control of the employer. However, an employee shall be
deemed to be within the course of employment when the employee is engaged in the performance of duties assigned or directed by the
employer, or acting in the furtherance of the business of the employer, irrespective of location.”
6
Section 450.28(3), F.S., defines “carpool” as “an arrangement made by the workers using one worker's own vehicle for
transportation to and from work and for which the driver or owner of the vehicle is not paid by any third person other than the
members of the carpool.”
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 ride. If the fare is not disclosed, the rider must have the option to receive an estimated fare before
beginning the prearranged ride. In addition, a TNC is required to transmit to the rider an electronic
receipt within a reasonable period after the completion of a ride. The receipt must list the origin and
destination of the ride, total time and distance of the ride, and total fare paid.
A TNC is required to designate and maintain an agent for service of process in this state.7
Because a TNC or TNC driver is not a common carrier, contract carrier, or motor carrier and does not
provide taxicab or for-hire vehicle service, a TNC driver is not required to register the TNC vehicle as a
commercial motor vehicle or a for-hire vehicle.8
While a TNC driver is logged on to the digital network but is not engaged in a prearranged ride, the
TNC or TNC driver must have automobile insurance that provides:9
 Primary automobile liability coverage of at least $50,000 for death and bodily injury per person,
$100,000 for death and bodily injury per incident, and $25,000 for property damage; and
 Personal injury protection benefits that meet the minimum coverage amounts required under the
Florida Motor Vehicle No-Fault Law.10
When a TNC driver is engaged in a prearranged ride, the automobile insurance must provide: 11
 Primary automobile liability coverage of at least $1 million for death, bodily injury, and property
damage; and
 Personal injury protection benefits that meet the minimum coverage amounts required of a
limousine under the Florida Motor Vehicle No-Fault Law.
The coverage requirements may be satisfied by automobile insurance maintained by the TNC driver, an
automobile insurance policy maintained by the TNC, or a combination of automobile insurance policies
maintained by the TNC driver and the TNC.12
The law preempts to the state the regulation of TNCs and specifies that a county, municipality, special
district, airport authority, port authority, or other local governmental entity or subdivision may not:
 Impose a tax on or require a license for a TNC, TNC driver, or TNC vehicle if such tax or license
relates to providing prearranged rides;
 Subject a TNC, TNC driver, or TNC vehicle to any rate, entry, operation, or other requirement of
the county, municipality, special district, airport authority, port authority, or other local
governmental entity or subdivision; or
 Require a TNC or TNC driver to obtain a business license or any other type of similar
authorization to operate within the local governmental entity’s jurisdiction.13
However, an airport or seaport is not prohibited from charging reasonable pickup fees consistent with
any pickup fees charged to taxicab companies at that airport or seaport for their use of the airport’s or
seaport’s facilities or from designating locations for staging, pickup, and other similar operations at the
airport or seaport.14
For-Hire Vehicles
With certain exceptions, offering for lease or rent any motor vehicle in the State of Florida qualifies the
vehicle as a “for-hire vehicle.” A “for-hire vehicle” is a motor vehicle used for transporting persons or
goods for compensation. When goods or passengers are transported for compensation in a motor
vehicle outside a municipal corporation of this state, or when goods are transported in a motor vehicle
7
Section 48.091, F.S., requires any corporation doing business in the state to have a registered agent and registered office in the state.
8
Section 627.748(2), F.S.
9
Section 627.748(7)(b), F.S.
10
Sections 627.730-627.7405, F.S. The amount of insurance required is $10,000 for emergency medical disability, $2,500 non-
emergency medical, and $5,000 for death.
11
Section 627.748(7)(c), F.S.
12
Section 627.748(7)(b) and (c), F.S.
13
Section 627.748(15)(a), F.S.
14
Section 627.748(15)(b), F.S.
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 not owned by the person owning the goods, such transportation is considered “for hire.” The carriage of
goods and other personal property in a motor vehicle by a corporation or association for its
stockholders, shareholders, and members, cooperative or otherwise, is transportation “for hire.”15
Florida law establishes specific financial responsibility requirements applicable to for-hire vehicles. For-
hire vehicles, such as taxis and limousines, must maintain a motor vehicle liability policy with minimum
limits of $125,000 per person for bodily injury, $250,000 per incident for bodily injury, and $50,000 for
property damage.16 The owner or operator of a for-hire vehicle may also prove financial responsibility
by providing satisfactory evidence of holding a motor vehicle liability policy issued by an insurance
carrier, which is a member of the Florida Insurance Guaranty Association, or by providing a certificate
of self-insurance.17
In general, a county may, to the extent not inconsistent with general or special law, license and regulate
taxis, jitneys, limousines, rental cars, and other passenger vehicles for hire that operate in the
unincorporated areas of the county.18
Digital Advertising Device
Certain companies allow taxi and TNC drivers to generate revenue through digital advertising via a
digital smart screen on top of the taxi or TNC vehicle. The digital screen allows advertisers to run
targeted, geofenced campaigns.19 Digital advertising screens are installed on the roofs of motor
vehicles owned or operated by individuals who commit to drive a minimum number of hours per week
in certain urban markets. Drivers with digital advertising screens report earning an average of $300 a
month, depending on how many hours are driven.20
There are currently digital advertising screens in use on vehicles in New York, Los Angeles, San
Francisco, Chicago, and Dallas.21
Prohibition Against Certain Lights
A person may not drive any vehicle or equipment upon any highway in this state with any lamp or
device thereon showing or displaying a red, red and white, or blue light visible from directly in front of
the vehicle, except for certain exceptions, such as fire department vehicles and road maintenance
equipment.22 The law expressly prohibits any vehicle or equipment, except police vehicles, from
showing or displaying blue lights, except for Department of Corrections vehicles or county correctional
agency vehicles when responding to emergencies. Flashing lights are prohibited on vehicles except:
 As a means of indicating a right or left turn, to change lanes, or to indicate that the vehicle is
lawfully stopped or disabled upon the highway;
 When a motorist intermittently flashes his or her vehicle’s headlamps at an oncoming vehicle
notwithstanding the motorist’s intent for doing so; and
 Flashing lamps authorized for bicycle riders and deceleration lighting systems on buses.
Florida Deceptive and Unfair Trade Practices Act
The Florida Deceptive and Unfair Trade Practices Act (FDUTPA) became law in 1973.23 The purpose24
of FDUTPA is to:
1) Simplify, clarify, and modernize the law governing consumer protection, unfair methods of
competition, and unconscionable, deceptive, and unfair trade practices.
15
Section 320.01(15)(a), F.S.
16
Section 324.032(1), F.S.
17
Section 324.031, F.S.
18
Section 125.01(1)(n), F.S.
19
Anthony Ha, Rideshare Advertising Startup Firefly Launches with $21.5M in Funding, Techcrunch.com (December 6, 2018),
available at https://techcrunch.com/2018/12/06/firefly-launch/ (last visited January 22, 2020).
20
Sarah Holder, Car-Mounted Ads Take a New Direction: Data Collection, Citylab.com (November 20, 2019), available at
https://www.citylab.com/transportation/2019/11/firefly-digital-advertising-driver-pay-uber-lyft-cars-data/602077/ (last visited January
22, 2020).
21
See Firefly.com, available at https://fireflyon.com/ (last visited January 22, 2020).
22
Section 316.2397, F.S.
23
Chapter 73-124, Laws of Fla.; codified at part II of ch. 501, F.S.
24
Section 501.202, F.S.
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 2) Protect the consuming public and legitimate business enterprises from those who engage in
unfair methods of competition, or unconscionable, deceptive, or unfair acts or practices in the
conduct of any trade or commerce.
3) Make state consumer protection and enforcement consistent with established policies of federal
law relating to consumer protection.
FDUTPA prohibits “[u]nfair methods of competition, unconscionable acts or practices, and unfair or
deceptive acts or practices in the conduct of any trade or commerce.”25 The term “trade or commerce”
is defined as “advertising, soliciting, providing, offering, or distributing, whether by sale, rental, or
otherwise, any good or service, or any property, whether tangible or intangible, or any other article,
commodity, or thing of value, wherever situated,” and the term includes “the conduct of any trade or
commerce, however denominated, including any nonprofit or not-for-profit person or activity.”26
Americans with Disabilities Act
The Americans with Disabilities Act (ADA)27 is a civil rights law prohibiting discrimination against
individuals with disabilities in all areas of public life, including jobs, schools, transportation, and all
public and private places that are open to the general public. The purpose of the law is to make sure
that people with disabilities have the same rights and opportunities as everyone else and gua