SB 2154

relating to the regulation of delivery network companies; requiring
an occupational permit; authorizing a fee.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  The heading to Chapter 2402, Occupations Code,
CHAPTER 2402.  TRANSPORTATION NETWORK AND DELIVERY NETWORK
SECTION 2.  Section 2402.001, Occupations Code, is amended
by amending Subdivisions (1) and (2) and adding Subdivisions (1-a),
(1-b), (1-c), (2-a), and (3-a) to read as follows:
(1)  "Delivery customer" means an individual who
prearranges a delivery through a delivery network company's digital
network that will be undertaken by a delivery person.
(1-a)  "Delivery network company" means a corporation,
partnership, sole proprietorship, or other entity operating in this
state that maintains a digital network to facilitate a delivery
customer's arrangement of a digitally prearranged delivery by a
(1-b)  "Delivery person" means an individual who
undertakes a digitally prearranged delivery to deliver goods to a
(1-c)  "Department" means the Texas Department of
(2)  "Digital network" means any online-enabled
application, website, or system offered or used by:
(A)  a transportation network company that
enables the prearrangement of rides between passengers and drivers;
(B)  a delivery network company that enables a
delivery customer to prearrange the delivery of goods by a delivery
(2-a)  "Digitally prearranged delivery" means the
transport of goods, using a passenger vehicle, a bicycle, a
scooter, walking, public transportation, or other means of
transportation, between points provided by the customer that is
prearranged through a digital network.
(3-a)  "Driver" means an individual who undertakes a
digitally prearranged ride between points chosen by a passenger.
SECTION 3.  Section 2402.002, Occupations Code, is amended
Sec. 2402.002.  NATURE OF TRANSPORTATION NETWORK AND
DELIVERY NETWORK COMPANIES, DRIVERS, DELIVERY PERSONS, AND
VEHICLES.  Transportation network companies, delivery network
companies, and drivers or delivery persons logged in to the
company's digital network are not common carriers, contract
SECTION 4.  Section 2402.003(a), Occupations Code,  is
(a)  Notwithstanding any other provision of law, and except
as provided by Subsections (b) and (c), the regulation of
transportation network companies, delivery network companies,
drivers or delivery persons logged in to a digital network, and
vehicles used to provide digitally prearranged rides or deliveries:
(1)  is an exclusive power and function of this state;
(2)  may not be regulated by a municipality or other
(B)  requiring an additional license or permit;
(D)  imposing operational or entry requirements;
(E)  imposing other requirements.
SECTION 5.  Section 2402.004, Occupations Code, is amended
Sec. 2402.004.  PROVISIONS APPLICABLE TO DRIVERS AND
DELIVERY PERSONS LOGGED IN TO DIGITAL NETWORK.  A provision of this
chapter that applies to a driver or delivery person logged in to a
digital network applies while the driver or delivery person is
logged in to receive requests for digitally prearranged rides or
deliveries and while the driver or delivery person is logged in and
providing a digitally prearranged ride or delivery.
SECTION 6.  Section 2402.051(a), Occupations Code, is
(a)  A person may not operate a transportation network
company or delivery network company in this state without obtaining
and maintaining a permit issued under this chapter.
SECTION 7.  Section 2402.052, Occupations Code, is amended
Sec. 2402.052.  FEE.  (a)  A transportation network company
or delivery network company shall annually pay to the department a
fee to maintain a permit under this chapter in an amount determined
by department rule to cover the costs of administering this
(b)  The department may not impose a fee for:
(1)  drivers or delivery persons authorized to use a
transportation network company's or delivery network company's
(2)  vehicles used to provide digitally prearranged
SECTION 8.  Chapter 2402, Occupations Code, is amended by
adding Subchapter C-1 to read as follows:
SUBCHAPTER C-1.  OPERATION OF DELIVERY NETWORK COMPANIES
Sec. 2402.131.  INTOXICATING SUBSTANCE POLICY.  (a)  A
delivery network company shall implement an intoxicating substance
policy that prohibits a delivery person who is logged in to the
company's digital network from any amount of intoxication.
(b)  A delivery network company shall include on its Internet
(1)  a notice concerning the company's intoxicating
(2)  the means to make a complaint about a suspected
(c)  A delivery network company shall maintain records
relevant to a complaint for a period of at least two years after the
date the complaint is received.
Sec. 2402.132.  DELIVERY PERSON REQUIREMENTS.  (a)  Before
permitting an individual to log in as a delivery person on the
company's digital network, a delivery network company must:
(1)  confirm that the individual:
(A)  is at least 18 years of age;
(B)  maintains a valid driver's license issued by
this state, another state, or the District of Columbia; and
(C)  if the individual will undertake digitally
prearranged deliveries by motor vehicle, possesses proof of
registration and automobile financial responsibility for each
motor vehicle to be used to provide digitally prearranged
(2)  conduct, or cause to be conducted, a local, state,
and national criminal background check for the individual that
(A)  a commercial multistate and
multijurisdiction criminal records locator or other similar
commercial nationwide database; and
(B)  the national sex offender public website
maintained by the United States Department of Justice or a
(3)  if the individual will undertake digitally
prearranged deliveries by motor vehicle, obtain and review the
(b)  A delivery network company may not permit an individual
to log in as a delivery person on the company's digital network if:
(1)  the individual has been convicted in the preceding
seven-year period of any of the following:
(A)  driving while intoxicated under Section
(B)  use of a motor vehicle to commit a felony;
(C)  a felony crime involving property damage;
(2)  the individual is found to be registered in the
national sex offender public website maintained by the United
States Department of Justice or a successor agency; or
(3)  for an individual who will undertake digitally
prearranged deliveries by motor vehicle, the individual has been
convicted in the three-year period preceding the issue date of the
driving record obtained under Subsection (a)(3) of:
(A)  more than three offenses classified by the
Department of Public Safety as moving violations; or
(B)  one or more of the following offenses:
(i)  fleeing or attempting to elude a police
officer under Section 545.421, Transportation Code;
(ii)  reckless driving under Section
(iii)  driving without a valid driver's
license under Section 521.025, Transportation Code; or
(iv)  driving with an invalid driver's
license under Section 521.457, Transportation Code.
(c)  A delivery network company shall conduct or cause to be
conducted an annual criminal background check described by
Subsection (a)(2) for each delivery person authorized to access the
Sec. 2402.133.  NONDISCRIMINATION.  (a)  A delivery network
company shall adopt a policy that prohibits a delivery person
logged in to the company's digital network from discriminating on
the basis of a delivery customer's or potential delivery customer's
location or destination, race, color, national origin, religious
belief or affiliation, sex, disability, or age.
(b)  For the purposes of Subsection (a), "sex" means the
physical condition of being male or female.
(c)  A delivery network company shall notify each person
authorized to log in as a delivery person on the company's digital
network of the nondiscrimination policy.  A delivery person logged
in to the company's digital network shall comply with the
(d)  A delivery network company may not impose an additional
charge for delivery to individuals with physical disabilities
Sec. 2402.134.  DELIVERY PERSONS AS INDEPENDENT
CONTRACTORS.  A delivery person who is authorized to log in to a
delivery network company's digital network is considered an
independent contractor for all purposes, and not an employee of the
(A)  prescribe the specific hours during which the
delivery person is required to be logged in to the company's digital
(B)  impose restrictions on the delivery person's
ability to use other delivery network companies' digital networks;
(C)  limit the territory within which the delivery
person may provide deliveries; or
(D)  restrict the delivery person from engaging in
another occupation or business; and
(2)  the company and the delivery person agree in
writing that the delivery person is an independent contractor.
SECTION 9.  Section 2402.151(a), Occupations Code, is
(a)  A transportation network company or delivery network
(1)  records evidencing compliance with the
requirements of this chapter for a period of two years;
(2)  individual ride and delivery records for at least
five years after the date the ride or delivery was provided; and
(3)  driver or delivery person records for at least
five years after the date the driver or delivery person ceases to be
authorized to log in as a driver or delivery person on the company's
SECTION 10.  Section 2402.152, Occupations Code, is amended
Sec. 2402.152.  COLLECTION, USE, OR DISCLOSURE OF RECORDS
AND OTHER COMPANY INFORMATION.  (a)  Any records, data, or other
information disclosed to a public entity in this state, including
the department, by a transportation network company or delivery
network company, including names, addresses, and any other
personally identifiable information of drivers or delivery persons
is not subject to disclosure under Chapter 552, Government Code.
(b)  A public entity, including the department, may not
disclose any records, data, or other information provided by a
transportation network company or delivery network company under
this chapter to a third party except in compliance with a court
order or subpoena.  If information provided under this chapter is
sought through a court order or subpoena, the public entity shall
promptly notify the transportation network company or delivery
network company to afford the company the opportunity to take
(c)  In collecting, using, or disclosing any records, data,
or other information submitted by a transportation network company
or delivery network company under this chapter, a public entity,
including the department, shall:
(1)  consider the potential risks to the privacy of the
individuals whose information is being collected, used, or
(2)  ensure that the information to be collected, used,
or disclosed is necessary, relevant, and appropriate to the proper
administration of this chapter; and
(3)  take all reasonable measures and make all
reasonable efforts to protect, secure, and, where appropriate,
encrypt or limit access to the information.
(d)  A transportation network company or delivery network
company required to submit, disclose, or otherwise provide
personally identifiable information of drivers or delivery persons
to a public entity of this state, including the department, is not
liable in any civil or criminal action for any unauthorized
disclosure, misuse, alteration, destruction, access or
acquisition, or use of the information that occurs while the
information is in the possession of any public entity of this state.
SECTION 11.  Section 2402.153, Occupations Code, is amended
Sec. 2402.153.  DISCLOSURE OF PASSENGER OR DELIVERY CUSTOMER
INFORMATION.  (a)  A transportation network company or delivery
network company may disclose a passenger's or delivery customer's
personal identifying information to a third party only if:
(1)  the passenger or delivery customer consents;
(2)  the disclosure is required by a legal obligation;
(3)  the disclosure is required to:
(A)  protect or defend the terms of use of the
transportation network company or delivery network company
(B)  investigate a violation of those terms.
(b)  Notwithstanding Subsection (a), a transportation
network company or delivery network company may share a passenger's
or delivery customer's name with a driver accessing the company's
(1)  identification of the passenger or delivery
(2)  communication between the passenger or delivery
SECTION 12.  Section 2402.154, Occupations Code, is amended
Sec. 2402.154.  DATA SHARING WITH MUNICIPALITY.  A
municipality and a transportation network company or delivery
network company may voluntarily enter into an agreement under which
the company shares the company's data with the municipality.
SECTION 13.  Section 2402.201, Occupations Code, is amended
Sec. 2402.201.  PERMIT SUSPENSION OR REVOCATION.  The
department may suspend or revoke a permit issued to a
transportation network company or delivery network company that
violates a provision of this chapter.
SECTION 14.  This Act takes effect September 1, 2025.