STATE OF WISCONSIN
Department Of Safety And Professional Services
IN THE MATTER OF RULEMAKING
PROCEEDINGS BEFORE THE
DEPARTMENT OF SAFETY
AND PROFESSIONAL SERVICES
PROPOSED ORDER OF THE
DEPARTMENT OF
SAFETY AND PROFESSIONAL SERVICES
ADOPTING
EMERGENCY
RULES
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The stateme
nt of scope for this rule, SS
047-15
, was ap
proved by the Governor on May 8, 2015
, published in
Register
713A3
on
May 18, 2015
,
and approved by
Department of Safety and Professional Services on May 28, 2015
.
This emergency rule as ap
proved by the Governor on July 30, 2015.
ORDER
An order of the Department of Safety and Professional Services to
create Chapter
SPS 210
relating to transportation network companies.
Analysis prepared by the Department of Safety and Professional Services.
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EXEMPTION FROM FINDING OF EMERGENCY
The Legislature by
Section
6 in
2015
Wisconsin Act
16
provides an exemption from a finding of emergency for the adoption
of the rule.
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ANALYSIS
Statutes interpreted:
Subchapter IV, Chapter
440
, Stats.
Statutory authority:
Explanation of agency authority:
Section
227.11 (2) (a)
, Stats., sets forth the parameters of an agency’s rule-making authority, stating an agency, “may promulgate rules interpreting provisions of any statute enforced or administered by the agency. . .but a rule is not valid if the rule exceeds the bounds of correct interpretation.”
Section
227.11 (2) (b)
, Stats., sets forth the parameters of an agency’s rule-making authority, stating an agency, “may prescribe forms and procedures in connection with any statute enforced or administered by it, if the agency considers it necessary to effectuate the purpose of the statute, but this paragraph does not authorize the imposition of a substantive requirement in connection with a form or procedure.”
Section
440.415 (1) (a)
, Stats., requires transportation network company applicants to submit an initial application that includes, “any other information required by the department by rule.”
Section
440.415 (2) (a)
, Stats., requires licensed transportation network company to submit a renewal application that includes, “any other information required by the department by rule.”
Related statute or rule:
None.
Plain language analysis:
Pursuant to the enactment of
2015 Wisconsin Act 16
, the Department of Safety and Professional Services is authorized to execute and enforce a statewide uniform licensure program for transportation network companies. Currently, the Wisconsin Administrative Code does not address transportation network companies. The proposed rule will implement and delineate the requirements enacted under
2015 Wisconsin Act 16
for the regulation of transportation network companies.
Summary of, and comparison with, existing or proposed federal regulation:
To comply with the assurances under
49 USC 47107
a city, village, town or county may impose fees or charges under s.
114.14 (1)
, Stats.,
for the use of an airport by participating drivers engaged in transportation network services.
Comparison with rules in adjacent states:
Illinois
:
Illinois
Statutes
contain
many
similar requirements
f
or transportation network companies as those
created by
2015 Wisconsin Act 16
in the Wisconsin Statutes
;
however
,
individual municipalities a
re responsible for licensing
transportation network
companies. (625
Illinois Compiled Statutes
57).
There are no effective rules regarding transportation network companies in Illinois.
Iowa
:
The state of Iowa does not regulate transportation network companies.
Michigan
:
The state of Michigan does not regulate transportation network companies.
Minnesota:
A transportation network company driver or transportation network
c
ompany on the driver's behalf shall maintain primary automobile insurance that recognizes that the driver is a transportation network company driver. The transportation network company shall disclose in writing to transportation network company drivers the following before they are allowed to accept a request for a prearranged ride on the transportation network company's digital network: (1) the insurance coverage, including the types of coverage and the limits for each coverage, that the transportation network company provides while the transportation network company driver uses a personal vehicle in connection with a transportation network company's digital network; (2) that the transportation network company driver's own automobile insurance policy might not provide any coverage while the driver is logged on to the transportation network company's digital network and is available to receive transportation requests or is engaged in a prearranged ride depending on its terms; and (3) that using a vehicle with a lien against the vehicle to provide transportation network services may violate the transportation network driver's contract with the
lienholder [65B.472, MN Statutes]. Other specific requirements for insurance are spelled out in MN Statute.
There are no effective rules regarding transportation network companies in Minnesota.
Summary of factual data and analytical methodologies:
The methodology used for developing the proposed rule included
incorporating the administrative code changes necessitated by the enactment of
2015 Wisconsin Act
, reviewing all laws applicable to credentials issued by the Department, and
evaluating and incorporating valuable input from stakeholders. Adjacent states’ requirements were also reviewed.
Analysis and supporting documents used to determine effect on small business or in preparation of economic impact
analysis
:
The rule will be posted
for a period of 14 days
for public comment on the economic impact of the proposed rule, including how this proposed rule may affect businesses, local government units, and individuals
.
Fiscal Estimate:
The proposed rule will hav
e
an estimated
one time fiscal impact $4,800 on the Department.
Effect on small business
:
These proposed rules do not have an economic impact on small businesses, as defined in s.
227.114 (1)
, Stats. The Department’s Regulatory Review Coordinator may be contacted by email at
Eric.Esser@wisconsin.gov
, or by calling (608) 267-2435.
Agency contact person
:
Katie
Vieira (
Paff
)
, Administrative Rules Coordinator, Department of Safety and Professional Services, Division of Policy Development, 1400 East Washington Avenue, Room 151, P.O. Box 8935, Madison, Wisconsin 53708; telephone (608) 261-4472; email at
Kathleen.Paff@wisconsin.gov
.
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TEXT OF RULE
Section 1.
Chapter
SPS 210
is created to read:
TRANSPORTATION NETWORK COMPANIES
SPS 210.20 Definitions.
In this
chapter:
(1)
“Department” means the department of safety and professional s
ervices.
(
2
)
“Licensed company” has the meaning given in s.
440.40 (2)
, Stats.
Note:
Section
440.40 (2)
of the Statutes reads as follows: “‘
Licensed company’
means a transportation network company that is licensed under s.
440.415
.
, [Stats.]”
(
3
)
“Participating Driver” has the meaning given in s.
440.40 (3)
, Stats.
Note:
Section
440.40 (3
)
of the Statutes reads as follows: “‘
Participating driver’
means an individual who does all of the following:
(a) Pays a fee to a transportation network company to be connected to a passenger for the purpose of engaging in transportation network services.
(b) Uses a personal vehicle to engage in transportation network services for compensation.
”
(
4
)
“Transportation network company” has the meaning given in s.
440.40 (6)
, Stats.
Note:
Section
440.40 (6
)
of the Statutes reads as follows: “
‘Transportation network company’
means a business that, for compensation, uses a digital network to connect passengers to participating drivers for the purpose of providing transportation network services to those passengers. "Transportation network company" does not include a taxicab, limousine, shuttle, or other for-hire vehicle service.
”
(
5
)
“Transportation network services” has the meaning given in s.
440.40 (7)
, Stats.
Note:
Section
440.40 (7
)
of the Statutes reads as follows: “
‘Transportation network
services’
means transportation provided to a passenger in the participating driver's personal vehicle. A participating driver is considered to be engaged in transportation network services beginning when the participating driver accepts a passenger's request for transportation received through a transportation network company's digital network, continuing while the participating driver transports that passenger in the participating driver's personal vehicle, and ending when that passenger, or the last person in that passenger's party, whichever occurs later, exits the participat
ing driver's personal vehicle. ‘Transportation network services’
does not include transportation in a taxicab, limousine, shuttle, or other for-hire vehicle.
”
SPS 210.30
License required.
(1)
Transportation network company.
As provided under
s.
440.41 (1)
, Stats., no person may operate
a transportation network company unless
the transportation network company is licensed by the department.
(2
)
Initial license
.
The department shall grant a license to operate a transportation network company
upon
payment of an initial licensure fee of $5
,
000, notwithstanding s.
440.03 (9) (a)
, Stats.
, and
submittal
of an application on a form prescribed by the department. The application shall include the applicant’s name, add
ress, tax identification number, and
an attestation that the applicant is a transportation network company that satisfies all applicable requirements under
ss.
440.42
,
440.44
,
440.45
, and
440.48
, Stats.
(3
)
Renewal
.
To r
enew a license, a licensed company shall, by the date specified in s.
440.08 (2) (a) 69m.
, Stats.
, file with the depar
tment a renewal fee of $5
,
000,
or
the renewal fee determined by the department under s.
440.03 (9) (a)
, Stats.
,
which
ever is less
;
and a renewal application on a form prescribed by the department.
The application shall include
an attestation that the applicant is a transportation network company that satisfies all applicable requirements under
ss.
440.42
,
440.44
,
440.45
, and
440.48
, Stats.
(4
)
Late renewal and reinstatement.
(a)
Late renewal before 5 years.
If the application for renewal is filed after the deadline specified in s.
440.08 (2) (a) 69m.
, Stats.
, but less than 5 years after the expiration of the applicant’s license
,
the applicant shall meet the requirements under sub. (3) and
the applicant shall pay the late renewal fee in s.
440.08 (3) (a)
, Stats., in addition to the renewal fee determined by the department under
sub (3)
.
(b)
Late renewal after 5 years.
If the application for renewal is filed 5 years or more after the deadline specified in s.
440.08 (2) (a) 69m.
, Stats.
,
the applicant shall
pay the late renewal fee in s.
440.08 (3) (a)
, Stats., in addition to the renewal fee determined by the department under
sub (3)
.
The department may require the applicant to complete the requirements for
initial
licensure under sub. (2).
This sec
tion does not apply to
licensed companies
who have unmet disciplinary requirements or whose licenses have been surrendered or revoked.
(c
)
Reinstatement
.
A
transportation network company whose license has been surrendered or revoked or
who
has a license with unmet disciplinary requirements which has not been renewed within five years of the renewal
date
may apply to have the license reinstated in accordance with all of the following:
1.
Evidence of completi
on of the requirements in sub.
(4) (b)
, if the credential has not been active within the last 5 years.
2.
Evidence of completion of disciplinary requirements, if applicable.
3.
Evidence of rehabilitation or change in circumstances warranting reinstatement of the credential.
(5
)
Participating Driver
.
As provided in s.
440.41 (2)
, Stats, no person
may engage in transportation network services in this state unless the person is a participating driver for
a
transportation n
etwork company licensed by the d
epartment
.
SPS 210.40 Disciplinary proceedings and actions.
(1)
Investigations and hearings
.
Subject to the rules promulgated under s.
440.03 (1)
, Stats.
, the department may conduct investigations and hold hearings to determine whether a violation of
subchapter IV of Chapter
440
, Stats.,
or any rule promulgated under
subchapter IV of Chapter
440
, Stats.
,
or a violation of any other law that substantially relates to the operation of a transportation network company or to transportation network services has occurred.
(2)
Discipline
.
Subject to the rules promulgated under s.
440.03 (1)
, Stats.
, the department may reprimand a licensed company or deny, limit, suspend, or revoke a license granted under s.
440.415
, Stats.,
if the department finds that an applicant for licensure or a licensed company has done any of the following:
(a)
Intentionally made a material misstatement in an application for a license or license renewal.
(b)
Advertised in a manner that is false or misleading.
(c)
Obtained or attempted to obtain compensation through fraud or deceit.
(d)
Violated
subchapter IV of Chapter
440
, Stats., or any rule promulgated under subchapter IV of Chapter
440
, Stats.,
or violated any other law that substantially relates to the operation of a transportation network company or to transportation network services.
A transportation network company that has been the subject of an administrative, judicial
,
or other sanction shall send to the department within 30 days
after the determination or sanction becomes final, an official form of notice, judgment, or other record from the administrative, judicial
,
or other governing body forum.
(e)
Failed to cooperate with the department in connection with an investigation under this section. Failure
to provide a substantive response to an inquiry
or
a
request for information
by the department in connection with an investigation under this section constitutes a failure to cooperate.
(f)
F
ailed to
timely
respond to a request for
information by the
department
in connection with an investigation u
nder this section.
There is a rebuttable presumption that a credential holder has
failed to respond in a timely manner
if the credential holder takes longer than 30 days to respond to a request for information or longer than 10 days to respond if provided
with an investigative subpoena.
(3)
Forfeitures
.
In addition to or in lieu of a reprimand or other action under sub. (2), the department may assess against a licensed company, for the violations under sub. (2), a forfeiture of not more than $1,000 for each separate offense.
Each day of non-compliance
constitutes a separate offense.
Section 2.
Effective date.
This emergency rule shall take effect
upon publication in the Wisconsin State Journal
.
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(END OF TEXT OF RULE)
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