Bill Summary – FastDemocracy

HB 120
                      Department of Legislative Services
                              Maryland General Assembly
                                    2020 Session
                           FISCAL AND POLICY NOTE
                                 Third Reader
House Bill 120                  (Delegates Dumais and C. Watson)
Economic Matters                                                                    Finance
    Motor Carriers and For-Hire Driving Services - Nonprofit Organizations and
                               Volunteer Drivers
This bill exempts specified nonprofit organizations from the requirement to obtain a
motor carrier permit under certain circumstances and makes a related change to exclude
specified transportation services provided by nonprofits from the definition of
“transportation network services.”
                                    Fiscal Summary
State Effect: The bill does not materially affect State finances or operations.
Local Effect: None.
Small Business Effect: None.
                                         Analysis
Bill Summary: A nonprofit organization that provides transportation services is not
required to obtain a motor carrier permit under the following circumstances:
      the organization uses a volunteer driver and the driver’s personal vehicle; or
      the organization uses drivers to provide transportation services solely for clients of
       supportive services, such as aging support, kidney dialysis, and job training.
The definition of “transportation network services” is modified to exclude transportation
services that a nonprofit organization provides through the use of a volunteer driver and
the driver’s personal vehicle.
Current Law: Generally, a motor carrier permit is required for a passenger motor vehicle
used in the transportation of persons for hire. There are limited specified exceptions. For
example, a motor carrier permit is not required for a motor vehicle used exclusively for the
transportation of pupils to and from public or private schools, or if the vehicle is a taxicab.
A separate exemption from the entirety of the for-hire driving services law (Title 10 of the
Public Utilities Article) also applies in limited circumstances. Relevant to the bill, Title 10
does not apply to any motor vehicle used in the transportation of persons if the
transportation is provided by or on behalf of a nonprofit that requires a criminal history
records check (CHRC) and driving records check for its drivers, for clients of specified
supportive services. Drivers employed by an exempt nonprofit must still go through the
CHRC process specified in Title 10.
Chapter 204 of 2015 established a separate regulatory system for transportation network
services that encompasses transportation network companies (e.g., Uber and Lyft) and
transportation network operators (i.e., drivers), including licensing, CHRCs, and insurance
requirements, among others. Transportation network services does not include:
      providing taxicab services, sedan services, or limousine services; or
      any shared expense carpool arrangement or service or other type of arrangement or
       service in which a driver receives a fee that does not exceed the driver’s costs
       associated with providing a ride.
Background: In addition to its better-known role in the regulation of electric and
gas utility rates, the Public Service Commission (PSC) also regulates persons engaged in
the public transportation of individuals for-hire in vehicles such as cars, vans, limousines,
and buses. This includes issuing relevant permits for the vehicles and issuing related
licenses to authorize drivers to operate those vehicles for hire. PSC enforcement includes
analyzing rate filings and service offerings, monitoring the operations of transportation
companies, and inspecting vehicles to ensure that they comply with safety regulations.
                                 Additional Information
Prior Introductions: None.
Designated Cross File: SB 171 (Senator Guzzone) - Finance.
HB 120/ Page 2
Information Source(s): Public Service Commission; Department of Legislative Services
Fiscal Note History:    First Reader - January 23, 2020
md/lgc                  Third Reader - February 6, 2020
Analysis by: Stephen M. Ross                       Direct Inquiries to:
                                                   (410) 946-5510
                                                   (301) 970-5510
HB 120/ Page 3
Statutes affected: 
Text - First - Motor Carriers and For-Hire Driving Services - Nonprofit Organizations and Volunteer Drivers: 9-201 Public Utilities, 10-101 Public Utilities, 10-102 Public Utilities
Text - Third - Motor Carriers and For-Hire Driving Services - Nonprofit Organizations and Volunteer Drivers: 9-201 Public Utilities, 10-101 Public Utilities, 10-102 Public Utilities