TWINKLE ANDRESS CAVANAUGH, PRESIDENT

JEREMY H. ODEN, ASSOCIATE COMMISSIONER

CHRIS "CHIP" BEEKER, JR., ASSOCIATE COMMISSIONER

STATE OF ALABAMA PUBLIC SERVICE COMMISSION

P.O. BOX 304260 MONTGOMERY, ALABAMA 36130

JOHN A. GARNER, EXECUTIVE DIRECTOR

IN RE: REGULATION OF TRANSPORTATION NETWORK COMPANIES

DOCKET 32744

ORDER PRO MULGA TING FINAL TNC RULES

BY THE COMMISSION:

On February 22, 2018, Alabama Legislative Act No. 2018-1 27 ("Act") was signed into

law with an effective date of July 1, 2018. The Act creates a framework for the statewide

regulation of transportation network companies ("TNC") and TNC drivers, placing these entities

under the regulatory jurisdiction of the Alabama Public Service Commission ("APSC" or

"Commission"). Pursuant to the Act, a person may not operate a TNC in the state without first

having obtained a permit from the Commission. The Commission is charged with issuing a

permit to each applicant that meets the requirements for a TNC under the Act. In addition to

permitting, the Commission is also responsible for: collecting and distributing local assessment

fees ; preparing and maintaining a file that shows county and municipal boundaries; inspecting

TNC records; investigating and resolving complaints against TNCs or T C drivers; and

administering penalties for noncompliance with the Act or the implementing rules and

regulations established by the Commission through this proceeding.

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In order to meet the statutory duties that the Act has assigned to the APSC, on March 12,

2018, the Commission issued an order that initiated a rulemaking proceeding consistent with

Section 16 of the Act. In that order, which is included as Attachment A, the Commission

proposed 11 rules and related forms, established a process for the submission of public

comments, and scheduled two public workshops to gather information and suggestions from

interested parties. The Commission hosted the first workshop on March 22, 2018. The

workshop was well-attended I and allowed an opportunity for constructive, informal dialogue

concerning the rules, regulations, guidelines, and procedures under consideration. At the close of

the first workshop, an informal poll of the attendees indicated that the second workshop was not

needed and thqt the public comment period offered an adequate forum for additional comments.

In response to the attendees and with no objections, the Commission canceled the previously­

scheduled second workshop. The Commission received 12 comment filings during the initial

comment period and 5 filings during the reply comment period.

In consideration of the comments received during the public comment period and the

information gathered during the workshop, the Commission is hereby promulgating the final

T C Rules, which are included as Attachment B. The fo llowing sections address each of the

TNC Rules individually, summarize the comments received for each rule, and describe the

rationale for the determination of each final rule.

1 The workshop included participants representing the fo llowing categories: TNCs; public consumers (through the Alabama Office of the Attorney General); TNC drivers; airport authorities; and regulated motor carriers.

DOCKET 32744- #3

Table of Contents

Introduction ..................... .... .......... .. ................ . .............. .. . .. .. . . .. ........... .

I. Proposed Rule TNC-1: Application and Scope........................................ .... .... 4

II. Proposed Rule TNC-2: Definitions....... .. ... ............ ...... .. .... ... . . . . ............ . .. . . 5

III. Proposed Rule TNC-3: Permitting.......................... ...... ............................ 12

IV. Proposed Rule T C-4: Reporting. .... .. ................................ ................... .. 26

V. Proposed Rule TNC-5: Submission of Local Assessment Fees........................ . . . 28

VI. Proposed Rule T C-6: County and Municipal Boundaries. ..... ....... . .. .................... 31

VIL Proposed Rule TNC-7: Safety Inspections................................................. 34

VIII. Proposed Rule TNC-8: TNC Trade Dress.......... ....... ...... ... ..... . . .......... . ..... 42

IX. Proposed Rule TNC-9: Inspection ofTNC Records....................................... 44

X. Proposed Rule T C- 10: Local Assessment Fee Audit.. .. .... . ... .. ..... .. ........ .... .... 48

XI. Proposed Rule TNC-11: Investigation and Resolution of Complaints . ..... ........... . 51

XII. Response to Miscellaneous Comments.. ... .... .. ............. . ............................ . 55

XIII. TNC Forms. .. . ... ..... . ... ..................... ............... .. .... . .. .. .... . ......... .. ..... 58

Order Instituting a Rulemaking Proceeding (March 12, 2018)......... ... ....... . .. . . ..... ... Atch A

Final TNC Rules. . ..... . .. .... . .. .. ........................... .................. .. .. . .............. .. Atch B

Application for T C Permit (APSC Form TNC-1 )............................................. Atch C

Application for Renewal ofT C Permit (APSC Form T C-2)................... ..... ...... Atch D

TNC Local Assessment Fee Report ......... . . .. .. .. . ....... . ....................... ........ ...... Atch E

DOCKET 32744- #4

I. Proposed Rule TNC-1: Application and Scope

A. Proposed Rule. Pursuant to Section 16 of the Act, the Commission proposed Rule TNC-1 to

establish that the TNC Rules apply to those persons subj ect to the Act. The proposed rule would

require TNCs to comply with their own statutorily-required policies and wou ld communicate the

Commission's intention to treat any violation of these policies in the same manner as a violation

of the requirements of the Act or of Commi ssion regulations. This proposed rule also would

provide an avenue for a regulated person to seek a waiver from any of the rules established on

demonstration that such rule causes unusual hardship .

B. Summary of Initial Comments. The Birmingham Airport Authori ty ("BAA") and the

Huntsville-Madison County Airport Authority ("HMCAA") emphasized in their comments the

importance of operating agreements with TNCs and other commercial entities conducting

business within their respective fac ilities . Both BAA and HMCAA stressed that operating

agreements were critical tools in the documentation and standardization of important security and

operational protocols that are unique to airports. The BAA requested that the Commission add a

provision to Rule TNC-1 that states that the TNC Rules do not prohibi t airport authorities from

entering into operating agreements with TNCs prior to any TNC providing service at that

ai rport.2 HMCAA did not spec ificall y propose a rule governing operating agreements between

airport authorities and TNCs, but urged the Commission to recognize that the Act allows

commercial service airports to negotiate and voluntarily enter into operati ng agreements with

2 Initial Comments of the Birmingham Airport Authority, p. I.

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TNCs.3 Lyft acknowledged the existence of such agreements with airport authorities,

specifically recognizing that matters such as reasonable pickup fees , the handling of complaints,

geo-fencing, the presentation of electronic waybills, and other matters can be addressed through

operating agreements between TNCs and airport authorities4

C. Commission Determination. The Commission has reservations regarding the establishment

of an express rule governing operating agreements between airport authorities and T Cs as

proposed by BAA. The Commission is concerned that the promulgation of such a rule would be

tantamount to rendering a decision on a legal question which does not directly involve the

Commission or the authority this agency was granted to implement the Act. The Commission

does not dispute the logical interpretations of BAA, HMCAA, and Lyft that the Act does not

preclude, and, therefore, allows for the negotiation and voluntary entry of operating agreements

between airports and TNCs so long as they are not otherwise inconsistent with the requirements

of the Act. It is not, however, necessary or appropriate for the Commission to address that issue

in the TNC rules given the Act ' s silence on the matter. The Commission finds it more

appropriate to define the scope of the TNC rules adopted herein through an emphasis of the

matters for which the Commission was given express authority rather than attempting to address

matters that the TNC rules do not prohibit. Therefore, the TNC rules remain silent on this issue

and the Commission will promulgate Rule TNC 1 as proposed.

II. Proposed Rule TNC-2: Definitions

A. Proposed Rule. The Act defines eight terms. Six of the eight terms are defined through a

3 Initial Comments of the Huntsville-Madison County Airport Authority, p. 2.

DOCKET 32744- #6

cross reference to the definitions in Ala. Code Section 32-7C-1. As proposed, Rule TNC-2

included all eight terms as defined in the Act and in Ala. Code Section 32-7C- l. Of the eight

terms, the Commission specifically requested public comment on the interpretation of TNC

vehicle and whether the term should include certain large or specialized vehicles.

B. Summary of Initial Comments. The fo llowing entities provided comments related to Rule

T C-2: Alabama Office of the Attorney General ("Attorney General"); Raiser, LLC, a subsidiary

of Uber Technologies, Inc. ("Uber"); Lyft, Inc. ("Lyft"); City of Auburn; City of Birmingham;

City of Mobile; Birmingham Airport Authority; Dallam Oliver-Lee, Jason Hardy, and Ken Leava

("TNC Drivers"); and Medical Transport of Alabama LLC ("MTA").

l. Gross Trip Fare.

a. The Attorney General suggested that the Commission should incorporate TNC surcharges into

the definition of gross trip fare. 5

b. Uber urged the Commission to exclude surge pricing from the definition of gross trip fare

because the "surge multiplier is an additional fee that is separate from the base fare charge,

distance charge, and time charge."6 Uber explained that it "may apply a surge multiplier to its

rates based on localized supply and demand." 7

c. The TNC Drivers recommend that the definition " include multipliers/surcharges such as

Uber's ' Surge ' pricing and Lyft ' s ' Prime Time"' and "exclude TNC drivers' tips and port

4 Reply Comments of Lyft, p. I. 5 Initial Comments of the Attorney General, p. 2. 6 In itial Comments of Uber, p. 2. 7 Id.

DOCKET 32744- #7

authority fees. "8

2. TNC Vehicle or Personal Vehicle.

a. The Attorney General expressed concern that the proposed language restricting TNC vehicles

to vehicles with a capacity of seven people or less may prevent a TNC from offering additional

services within Alabama.9 Further, the Attorney General suggested that the Commission add

language excluding autonomous vehicles citing safety concerns.

b. Uber urged the Commission to remove the references to limousines and wheelchair vans in the

definition because it: 1) "limits the earning opportunities for professional drivers who may also

want to provide TNC services;" 2) "limits the ability of TNCs to enable future access to such

vehicles in Alabama;" and 3) limits earning opportunities for drivers who might invest in these

types of vehicles. 10 Uber also urged the Commission to change the maximum passenger capacity

from seven people to eight people to account for the seating capacity in large SUVs.

c. Lyft indicated a concern that the proposed definition "would have the unintended consequence

of limiting the services that TN Cs may offer in Alabama." 11 Lyft requested that the Commission

remove the exclusion of limousines, wheelchair vans, and larger vehicles from the definition of

TNC vehicle and offered the following substitute provision: "A TNC Vehicle does not include a

bus, limousine or wheelchair van, or other similar vehicle for hire, unless the vehicle is being

used to provide transportation network company services on behalf of a transportation network

8 Initial Comments ofTNC Drivers, p. 2. 9 Initial Comments of the Attorney General, p. 2. 10 Initial Comments of Uber, pp. 2-3. 11 Initial Comments of Lyft, p. 1.

DOCKET 32744- #8

company." 12

d. The City of Auburn suggested that the Commission include limousines, wheelchair vans, and

larger vehicles in the definition of TNC vehicle because explicitly omitting it might create an

ADA compliance issue. The City of Auburn also pointed out that some of these vehicles are

included in some TNC programs. 13

e. The City of Birmingham agree with excluding buses, limousines, wheelchair vans, and larger

vehicles from the definition of TNC Vehicle because these types of vehicles are generally used

for large groups or commercial purposes. 14

f. The Birmingham Airport Authority and the Huntsville-Madison County Airport Authority both

agree with the Commission's definition of a TNC vehicle . The Huntsville-Madison County

Airport Authority stated that "We cannot regulate buses, limos and shuttles one way if they are

operating as T Cs and another way if they are independent operators." 15

g. The TNC Drivers requested that the definition for TNC vehicle include wheelchair vans "to

allow future services by TNC for ADA needs ." 16 TNC Drivers would like for the term personal

vehicle to be removed from the definition because it "would exclude drivers who have their

vehicles registered under their own business for an extra layer of legal protection, drivers running

their own businesses, and future class of services like Uber Black and Lyft Lux." 17

h. MTA indicated that it agreed with the Commission's intent to clarify the term TNC vehicle by

i2 Id. , p. 2. 13 In itial Comments of the City of Auburn, p. 2. 14 Ini tial Comments of the City of Birmingham, p. I. 15 Ini tial Comments of the Huntsville-Madison County Airport Authority, p. 2. 16 Ini tial Comments ofTNC Dri vers, p. 2. 17 fd.

DOCKET 32744- #9

excluding certain types and sizes of vehicles from the definition. 18 MTA noted the possibility

that T Cs might offer other services in the future but suggested that the Commission should

maintain the exclusion until a T C proposes to offer such service and submits a petition that

includes sufficient justification. 19 MTA proposed additional language to add to the definition

that allows for wheelchair vans for TNC service "so long as said vehicles are not used to

routinely provide non-emergency medical transportation service within the parameters of the

Alabama Motor Carrier Act. 1120

C. Commission Determination.

1. Gross Trip Fare.

a. The Commission finds that surge pricing is merely an adjustment (based on the local supply

and demand) to the base fare, the distance charge, and/or the time charge; therefore, surge pricing

should be included in the calculation of gross trip fare. This interpretation is consistent with the

Attorney General and the TNC Drivers' comments. Uber requested that surge pricing be

excluded from the definition; however, Uber indicated that it applies a "surge multiplier to its

rates" which supports the determination that the surge pricing is simply a method of altering the

base fare, the distance charge, and/or the time charge, all of which are elements explicitly

included in the statutory definitions. For clarity, in the final Rule TNC-2, the Commission is

adding the following statement to the definition of gross trip fare: "The term includes surge

pricing."

18 Initial Comments of MT A, p. I. 19 Id. 20 Id. , p. 2.

DOCKET 32744- # 10

b. The Commission determines that neither drivers' tips nor port authority fees should be

included in gross trip fare. Drivers' tips are a type of additional fee (beyond the base fare, the

distance charge, and/or the time charge) which the statutory definition explicitly excludes from

the calculation of gross trip fare. Port authority fees are a type of venue fee which are also

explicitly excluded from gross trip fare. This interpretation is consistent with the TNC Driver's

interpretation of the statutory definition. The Commission finds that the statutory definition

already addresses these concerns; therefore, no further addition or change to the definition is

required.

2. TNC Vehicle or Personal Vehicle.

a. In the proposed rule, the Commission added language to the statutory definition that removed

large or specialized vehicles ( such as busses, limousines, and wheelchair vans) from the

definition of TNC vehicle. Based on the comments, the Commission finds that this additional

language has the potential to limit the transportation services available and reduce the

opportunities available for drivers. The intention of the Commission was not to reduce these

opportunities but rather to provide clarity regarding the scope of TNC service. However, based

on the comments, it appears that the additional language in the proposed rule did not in fact

clarify the scope of TNC service. One commenter, MT A, agreed with the Commission's intent

but offered additional language. MT A's proposal , which would allow wheelchair vans to provide

TNC service as long as the vehicles are not used to "routinely provide non-emergency medical

transportation service" appears to go too far. The Commission does not find that the Legislature

intended to restrict a TNC rider's ability to utilize a TNC for transportation to and from a medical

DOCKET 32744- # 11

facility . Because of the above, in the final Rule TNC-2, the Commission amends the proposed

definition of TNC vehicle, removing the following provision: "Busses, limousines, wheelchair

vans, and vehicles with a passenger capacity of greater than seven people, not including the

driver, are not considered TNC Vehicles." 21

b. In response to the Attorney General's suggestion that the Commission should add language to

exclude autonomous vehicles from the definition, the Commission determines that this additional

language is unnecessary because the presence of a TNC driver is statutorily necessary to TNC

service pursuant to the Act. In the Act, the definitions of digital network, prearranged ride,

TNC, and TNC rider all include a reference to a TNC driver. Without a TNC driver there is no

T C. Therefore, if a TNC decided to provide a similar transportation service with dri verless

vehicles, this service would no longer be subject to this Act. It is possible that transportation

service with autonomous vehicles would be subject to the Alabama Motor Carrier Act (assuming

that the autonomous vehicle service was not prohibited by other laws). As such, the Commission

finds that any regulatory action regarding autonomous vehicle passenger service, if needed,

should be addressed outside of this proceeding. The Commission will not include a reference to

autonomous vehicles in the TNC Rules. However, acknowledging the possibility that a

permitted TNC may desire to test autonomous vehicle functions while a TNC driver is also

present in the vehicle, and in consideration of public safety, the Commission may choose to add a

restriction to a T C permit that prohibits the use of autonomous vehicle features while

2 1 The Commission is aware of entities that serve as "brokers" for non-emergency med ical transportat ion service, potentially through the use of a digital network. If those entities "broker" serv ices provided by motor carriers that have received a certificate pursuant to the Alabama Motor Carrier Act, then the Act and the TNC Rules are not applicable.

DOCKET 32744- # 12

transporting a TNC rider.

c. In response to the TNC Drivers' suggestion that the Commission remove the term p ersonal

vehicle, this term was established by the Legislature and cannot be removed by the Commission.

However, since the terms TNC vehicle and personal vehicle appear interchangeable in the statute

and it would be cumbersome to use both, the Commission favors the use of the term TNC

vehicle. In accordance with this definition, a TNC vehicle is not required to actually be the

"personal vehicle" of the TNC driver as long as the vehicle is "owned, leased, or otherwise

authorized for use by the TNC driver."

III. Proposed Rule TNC-3: Permitting

A. Proposed Rule. The Act states that the Commission "shall issue a permit to each applicant

that meets the requirements for a TNC under this act." The Act lists numerous requirements for a

TNC throughout the Act. The proposed rule ("Rule TNC-3 ") listed those requirements, labeled

(a) through (j), which must be met in order for the Commission to issue a permit. Pursuant to the

proposed rule, the applicant would indicate compliance with these requirements by submitting an

application ( on a form provided by the Commission, a proposed draft of which is attached to the

rulemaking order at Attachment A) that includes a sworn statement of compliance; submitting an

application fee of $700; and providing several documents that support the TNC's compliance

with the Act's requirements. The initial rulemaking order indicated that a public hearing would

be required prior to the issuance of a TNC permit to an applicant.

The Act states that the Commission "may require the permit to be renewed annually."

The proposed rule required a TNC to renew its permit annually by completing a form provided

DOCKET 32744- #13

by the Commission (the proposed form is attached to the order at Attachment A) and submitting

a fee of $300. This $300 renewal fee and the $700 initial application fee would be used to defray

costs related to the Commission's processing of the application, including hearing expenses.

B. Summary of Initial Comments. The fo llowing entities provided comments related to Rule

TNC-3 : Attorney General; Uber; Lyft; City of Auburn; City of Birmingham; City of Huntsville;

City of Mobile; Huntsville-Madison County Airport Authority; Birmingham Airport Authority;

TNC Drivers; and Medical Transport of Alabama LLC ("MT A").

1. Hearing Requirement.

a. Uber requested limits on the requirement fo r a public hearing as part of the TNC application

process. These proposed limits include: 1) only a hearing for the initial application; 2) formal

intervention required for public comments at hearing; 3) designated representative allowed to

appear on behalf of applicant TNC; and 4) a permit be issued so long as the statutory

requirements are met.22

b. Lyft asserts that the "imposition of a public hearing would be unnecessary and could disrupt

the opportunity to timely provide TNC services in Alabama, without any reciprocated benefit to

the Commission or the general public. "23 Lyft contends that the proposed application and sworn

statement would be suffic ient to determine whether an applicant satisfies the statutory

requirements. 24

2. Requirement to Disclose the Fare to the TNC Rider. The City of Birmingham urged the

22 Initial Comments of Uber, p. 3. 23 Initia l Comments of Lyft, p. 2. 24 Id.

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Commission to require TNCs to notify the TNC rider that dynamic pricing is in effect and have

the rider acknowledge the notification.25 The City of Birmingham also requested that the

Commission place limits on surge pricing during a declared disaster or emergency.26

3. Requirement that TNC transfer electronic receipt within two hours.

a. Uber asked the Commission to revise the proposed rules to allow for more flexibility

concerning the time required to provide the electronic receipt to the TNC rider, indicating that

there may be "rare but potential delays with the transmission of the electronic receipts that would

not be covered by the existing tolling language. "27 Uber stated that, in addition to sending the

receipt via e-mail, it makes the receipt available on the Uber app.28 Uber urged the Commission

to return to the more general statutory requirement of "a reasonable period of time. "29

b. Lyft requested that the Commission require that receipts be transmitted within a "reasonable

period of time."30 Lyft stated that a TNC rider also has the option to view ride details through the

Ride History tab in Lyft's mobile application, which includes "destination of the trip; the total

time and distance of the trip; the total fare paid; and the TNC driver's first name."31

4. Zero Tolerance Jntoxicating Substance Policy.

a. The Attorney General believes a TNC zero-tolerance policy must state that a TNC driver will

be prohibited from accepting a trip request or providing transportation after consuming an

25 Initial Comments of the City of Birmingham, pp. 2-3 . 26 Id. 27 Initial Comments of Uber, p. 4. 28 Id. 29 Id. 30 Initial Comments of Lyft, p. 3. 3 1 Id.

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intoxicating substance.32 And, the Attorney General recommends that the zero-tolerance policy

must include the exact corrective measures that would be taken by a TNC against a TNC driver

found to have violated the policy.33

b. Lyft contends that it is unnecessary for the Commission to establish minimum requirements

for the zero tolerance policy because the Act and the proposed rule already have sufficient

requirements in place regarding the zero tolerance policy.34 To support this claim, Lyft

references the requirements to provide notice of the policy, establish a method to file a

complaint, and suspend a TNC driver pending the outcome of an investigation.35

c. The City of Birmingham asserts that the Commission should deny any application that fails to

comply with the minimum statutory and regulatory requirements for the zero tolerance policy.36

Birmingham also requests that if it is confirmed that a driver violated the zero tolerance policy

while on the TNC digital network, that the TNC driver should be banned from the digital

network permanently and the ban should be reported to the Commission.37

d. The City of Huntsville contends that the Commission should deny any application that fails to

comply with the minimum statutory and regulatory requirements for the zero tolerance policy.38

The City of Huntsville states the zero tolerance policy should be more than a statement that

drivers shall not use drugs or alcohol while operating a TNC vehicle, adding that the

Commission should prescribe the contents of the policy and the actions that should be taken if a

32 Initial Comments of the Attorney General , pp. 2-3 . 33 Id. 34 In itial Comments of Lyft, pp. 2-3. 3s Id. 36 Initial Comments of the City of Birmingham, p. I. 37 Id. , p. 2.

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TNC driver has been found to be in violation of the policy.39 The City of Huntsville urges the

Commission to require the policy to state that the TNC rider, in addition to lodging the complaint

with the TNC, may fi le a complaint wi th the Commission.40 The City of Huntsville proposed

that the Commission use the current regulations fo r motor carriers that include narcotics,

amphetamines, and other dangerous substances and intoxicating liquor as framework fo r the

zero-tolerance policy for TNC drivers. 41

e. The City of Mobile agrees that the Commission should deny an application if the TNC's policy

fail s to meet the Commission's requirements.42 The City of Mobile stated that the Commission

should strictly enforce the zero tolerance policy and provide local law enforcement an efficient

method to report DUis and related offenses by TNC drivers to the Commission.43

f. The Huntsville-Madison County Airport Authority requested that the rule include a provision

for the Commission to notify an airport authority of any complaint involving a T C's operations

on airport property.44

g. The TNC Drivers asserted that "Uber and Lyft lack procedures on doing drug testing of

drivers" when a TNC rider has complained that a TNC driver may be driving under the infl uence

of alcohol or drugs.45 T C Drivers indicated that this is particularly a problem when a TNC

38 Initial Comments of the City of Huntsv ille, p. 3. 39 Id., p. 2. 40 Id. 41 Id. 42 In itia l Comments of the City of Mobile, pp. 3-4. 43 Id. 44 Initial Comments of the Huntsville-Madison County Airport Authority, p. 2. 45 Initia l Comments ofT C Drivers, p. 2-3.

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rider makes a false claim that a TNC driver is intoxicated.46

5. Driver Identification and Information Available on Digital Network

a. The Attorney General suggested that all initial photo IDs should be taken within six months of

its submission, updated annually, and the TNC driver must be facing directly into the camera

with a neutral expression/natural smile and with no obstructions ( e.g., sunglasses, hoodies, hats,

etc.).47

b. Lyft asserts that "requiring a driver to provide an updated photo on a regular basis would

create an unnecessary burden for TN Cs to enforce ... and a hurdle for drivers to remain active on

the TNC platform."48 To support that this requirement is not needed, Lyft stated that, as a part of

the TNC driver application process, Lyft compares the applicant's driver's license photo to the

photo submitted for use on the Lyft driver profile.49

c. The City of Auburn stated that photographs of TNC drivers should be required to be updated

periodically. so

d. The City of Birmingham proposes that the background check and driver photograph for the

TNC drivers should be updated at least once every two years. 51 The City of Birmingham also

suggests that the color of the TNC vehicle be provided to the TNC rider on the TNC's digital

network.52

46 Id. (comments included an attached exhib it that the TNC Drivers represented was an advertised scam to fil e a complaint against a TNC driver in order to obtain a free ride). 47 Initial Comments of the Attorney General, p. 3. 48 In it ial Comments of Lyft, p. 3. 49 Id. 50 Initial Comments of the City of Auburn , p. 2. 5 1 Initial Comments of the City of Birmingham, p. 2. 52 Id.

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e. The City of Huntsville states the Commission should require the TNC drivers to provide

current photographs and to update them at least every four years or to update the photograph if

there has been a change in the driver's appearance.53

f. The City of Mobile strongly endorses the Commission's proposed requirement for periodic

checks. 54 The City of Mobile requests that the rules require TN Cs to inform TNC riders of their

right to file a complaint and how to file a complaint for violations of this policy, similar to the

notices posted by buses and other providers of public transportation. 55

g. The Huntsville-Madison County Airport Authority requests that the rule require TNC drivers

to produce certain documentation, at least while on airport property, including a valid drivers'

license, proof of TNC affiliation, vehicle inspection forms, vehicle registration, insurance

documentation, and proof of the prearranged ride .56 The Huntsville-Madison County Airport

Authority indicated that such documentation could be produced either electronically or via

hardcopy, adding that since the information is more likely to be stored on a smart phone, TNC

drivers should be required to have possession of his or her smart-phone at all times while on

airport."57

h. The Birmingham Airport Authority requests that the rules require TNC drivers to have a valid

and current permit "physically in the TNC Vehicle at all times during operation."58

6. Background Checks and Driving History.

53 Initial Comments of the City of Huntsv ille, p. 6. 54 Initial Comments of the City of Mobile, p. 4. 55 Id. 56 Initial Comments of the Huntsville-Madison County Airport Authority, p. 2-3 . 57 Id. 58 In itia l Comments of the Birmingham Airport Authority, p. 2.

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a. The Attorney General recommended that all national and state background checks be

performed annually, including sex offender registries. 59 The Attorney General recommended that

initial driving history reports be updated annually.60

b. The City of Mobile states that criminal background checks of TNC drivers are essential to the

safety of TNC riders and the minimalist approach of this regulation is inadequate. 61 The City of

Mobile urges the Commission to establish a convenient reporting system for local law

enforcement to immediately report tickets, warrants and convictions of all the listed offenses.62

7. TNC Procedures for Responding to Law Enforcement. The City of Huntsville suggested

that the Commission should set uniform, minimum requirements for a TNC's response to law

enforcement. 63

C. Summary of Reply Comments. The following entities filed reply comments related to Rule

T C-3: Uber and Lyft.

I . In response to the surge pricing notification suggested by the City of Birmingham, Uber states

that the proposed rules require TNCs to disclose the fare to TNC riders, including surge

pricing.64 Uber asserts that "additional prescription of the exact process for investigating and

resolving complaints that the TNC receives pursuant to the zero tolerance policy simply are not

necessary. "65 Uber indicates that it has a national policy that is posted on its website and that it is

"not necessary, practicable, or reasonable to require TNCs to modify such a policy to incorporate

59 Initial Comments of the Attorney Genera l, pp. 3-4. 60 Id. , p. 4. 6 1 Initial Comments of the City of Mobile, p. 3. 62 Id. 63 Initial Comments of the City of Huntsville, p. 4. 64 Reply Comments of Uber, p. 4.

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state-specific information."66 Uber contends that the Act and proposed rules imply that the TNC

driver photograph be sufficiently recent and allow for identification of the TNC driver; therefore,

no additional specification is necessary.67 Uber indicates that it has a policy of screening its

drivers at least biennially and is currently transitioning that policy to at least annually.68

2. Lyft asserts that it is unnecessary for the Commission to add requirements to the proposed rule

regarding TNC driver photographs displayed on the digital network because it already has "high

standards regarding profile photos, which ensure that drivers are clearly identifiable in their

profile photos," and it currently compares the TNC driver profile picture to the photograph on the

driver license to ensure that the images match.69 In response to comments from the Birmingham

Airport Authority requesting that TNC driver possess permits, Lyft noted that TNCs, not TNC

drivers, are required to obtain permits from the Commission. 70 Lyft indicates that it "requires all

drivers to pass a criminal background and driving record check prior to approval and annually

thereafter. "71

D. Commission Determination.

1. Hearing Requirement.

a. Uber and Lyft both expressed concerns about the requirement for a public hearing prior to the

65 Id. , p. 3. 66 Id. 67 Id. , pp. 4-5 . 68 Id. , p. 2. 69 Rep ly Comments of Lyft, p. 3. 70 Id. , p. 2. 1 1 Id.

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issuance of a TNC permit. 72 Uber proposes limits to the hearing and Lyft asserts that the hearing

is "unnecessary and could disrupt the opportunity to timely provide TNC services in Alabama,

without any reciprocated benefit to the Commission or the general public." Contrary to the

assertion of Lyft, the Commission finds that a public hearing would have the following benefits

to the Commission and the general public. First, a public hearing provides the applicant with an

opportunity to formally present evidence to support its TNC application. Uber and Lyft state that

this information would already be included in the permit application; however, the requirement

for an in-person pledge and presentation reflects the Commission's intention to faithfully

administer and enforce the laws and regulations while giving the applicant an opportunity to

convey its commitment to follow these laws and regulations. Further, the public hearing presents

an opportunity that is unavailable via the permit application form: the T C has a chance to

demonstrate its digital network. Second, the public hearing gives the Commission an

opportunity to inquire about the information provided in the TNC permit application. Lastly,

following the long history of the Commission, the public hearing requirement for a newly­

regulated entity is consistent with other entities subject to APSC jurisdiction.

b. Like other hearings before the Commission, thi s public hearing shall be subject to the

Commission's Rules of Practice. The Rules of Practice address some of the limitations suggested

by Uber, such as the requirements to intervene in the hearing and who may appear on behalf of

the applicant. To further address Uber's concerns, public hearings are only required as part of the

72 The Commission order issued on March 12, 20 18, which initiated the rulemaking proceeding, proposed that a public hearing would be required prior to the granting of a TNC permit. However, the rules proposed in that order did not include such a requirement. The Commission finds that the language in the order itse lf provided sufficient notice to the public that the Comm ission was proposing the heari ng requirement. The fact that both Uber and Lyft

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initial permit application and not the permit renewals. However, in some circumstances, the

Commission may deem that a public hearing is necessary to address other matters. Addressing

another of Uber's comments, the Commission wi ll , pursuant to the Act, grant a permit to an

applicant who satisfies all of the statutory requirements.

c. For the reasons stated above, the Commission is adding this requirement to Rule T C-3:

"Following the submission of a complete permit application, a public hearing wi ll be held prior

to the issuance ofa TNC permit."

2. Requirement to Disclose the Fare to the TNC Rider. In addressing the City of

Birmingham's concern regarding notice of surge pricing, the Commission finds that the proposed

rules require TN Cs to provide the rider with notice of its charges. Addressing concerns regarding

surge pricing during declared emergencies, the Attorney General has the jurisdiction to

investigate and prosecute any unlawful price gouging during a declared emergency. Therefore,

no amendment to the proposed ru le is necessary to address these concerns.

3. Requirement that TNC transfer electronic receipt within two hours. Uber and Lyft both

requested more flexibility regarding the requirement that the TNC transfer an electronic receipt

within two hours, both indicating that a TNC rider has the ability to view the ride information on

the digital network. To the Commiss ion, the important aspect of the rule is that TNC riders have

timely information regarding recent service, regardless of whether the receipt is transferred via

electronic mail or through the TNC's digital network. Therefore, the Commission is adding the

following statement to Rule TNC-3(1)(c): "An electronic receipt may be sent via electronic mail

responded to this proposed requirement indicates that they had actua l knowledge of the proposed requirement.

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or made available through the TNC's digital network."

4. Zero Tolerance Intoxicating Substance Policy.

a. The Commission generally agrees with Lyft's contention that "the Act and the proposed rule

already have sufficient requirements in place regarding the zero tolerance policy." Most of the

concerns identified in the comments are addressed in the Act and the proposed rule. For

example, the Act and the rule both "prohibit any amount of intoxication of the driver while

providing transportation network services" which addresses the Attorney General's

recommendation that the rule should prohibit a TNC driver from accepting a trip after consuming

an intoxicating substance. However, the Commission shares the concerns of the Attorney

General and the City of Birmingham that the zero tolerance policy should include the corrective

measures to be taken against a TNC driver if the TNC confirms that there has been violation of

the zero tolerance policy. Therefore, the Commission adds the following requirement to Rule

TNC-3: "The TNC's zero tolerance intoxicating substance policy shall include a description of

the correcti ve measures to be taken against a TNC driver if the TNC confirms that the TNC

driver has violated the terms of the zero tolerance intoxicating substance policy."

b. To monitor the enforcement of the zero tolerance policy, the Commission finds it necessary to

add the following requirement to Rule TNC-9: "TNCs shall maintain records related to the

investigation of possible violations of the zero tolerance intoxicating substance policy for a

period of two years following the close of the investigation."

c. To ensure that the public is aware of the zero tolerance policy, the Commission is adding the

words "in a prominent location" to Rule TNC-3(f) which will then state: "TNC shall include on

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its website, in a prominent location, a notice concerning the TNC's zero tolerance intoxicating

substance policy and the means to make a complaint about a suspected vio lation of the policy."

d. The Huntsville-Madison County Airport Authority requested that the rule include a provision

for the Commission to notify an airport authority of any complaint involving a T C's operations

on airport property. Section 14 of the Act states that the Commission may not disclose "any

records, data, or information provided by a TNC pursuant to this act to a third party absent a

court order or subpoena." Therefore, the Commission declines to add this notice provision to the

T C Rules.

e. The TNC Drivers represented that TNC riders sometimes falsely claim that a TNC driver is

intoxicated in an attempt to obtain a free T C ride. While this is concerning, the Commission is

not the proper agency to address false or fraudulent claims made by TNC riders against TNC

drivers. The Commission does not have jurisdiction over TNC riders.

5. Driver Identification and Information Available on Digital Network

a. Multiple commenters assert that the rule should include additional requirements regarding the

picture of the TNC driver displayed on a TN C's digital network. Several commenters suggested

that the rule require TNC drivers to periodically update their photos. The Attorney General

suggested that, fo r the photo, the TNC driver must be facing directly into the camera with a

neutral expression/natural smile and with no obstructions. Lyft asserts that additional

requirements would be a burden on TNCs and a hurdle for TNC drivers . Uber and Lyft both

contend that no additional requirements are needed because the current proposed rules and their

own procedures ensure that TNC drivers are clearly identifiable. All of the comments related to

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this topic recognize the obj ective of ensuring a TNC rider can clearly identify the TNC driver.

The Commission agrees with the Attorney General and the municipalities that additional

requirements are necessary to promote thi s obj ective. Therefore, the Commission is adding the

following statement to Rule T C-3(b): "In the photo of the TNC driver displayed on the digital

network, the T C driver must: be fac ing directly into the camera; be the only person in the

photograph; be clearly identifiable; show fu ll face and top of shoulders; and not be wearing

sunglasses or other accessories that prevent clear identification." Given the comments by Uber

and Lyft that their existing procedures ensure clear identification, this additional requirement

should not prove too burdensome.

b. Concerni ng the suggestion that TNC drivers should be required to physically possess certain

credentials on airport property, the Commi ssion agrees with Lyft that TNCs, not TNC drivers, are

required to obtain permits from the Commission; therefore, it is unnecessary for the TNC dri vers

to possess a copy of the TN C's permit. The Commission finds no additional benefit of requi ri ng

the TNC drivers to physically possess the documents suggested by the Huntsvi lle-Madison

County Airport Authority and the Birmingham Airport Authority.

6. Background Checks and Driving History. The Commission agrees with the City of Mobi le

that criminal background checks of TNC dri vers are essential to safety and agrees with the

Attorney General that the screening of dri vers should be required annually. In reply comments,

Lyft indicates that it "requires all drivers to pass a criminal background and dri ving record check

prior to approval and annually thereafter" and Uber indicates that it has a policy of screening its

drivers at least biennially and is currently transitioning that policy to at least annually. Therefore,

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the Commission is adding the fol lowing statement to Rule TNC-3(d): "After allowing an

individual to accept trip requests through that TNC's digital network as a driver, a TNC shall

annually screen drivers for comp! iance with the requirements in Section 10 of the Act."

7. TNC Procedures for Responding to Law Enforcement. The Commission recognizes the

City of Huntsville's concerns and the suggestion to establish specific requirements for TNCs to

respond to requests from law enforcement. However, at this time, the Commission finds it

sufficient to require TNCs to submit procedures to respond to law enforcement. The

Commission will co llect information and monitor this issue for any future action.

IV. Proposed Rule TNC-4: Reporting

A. Proposed Rule. The Act requires TNCs to submit reports to the Commission regarding the

percentage of the gross trip fare for rides that originated in municipalities and unincorporated

portions of the counties over the previous calendar quarter. The Commission proposed Rule

TNC-4 that establishes the formatting requirements and the dates of the reporting periods.

B. Summary of Initial Comments. The fo llowing entities provided comments related to Rule

T C-4: Attorney General ; Uber; Lyft; City of Mobile; and TNC Drivers.

1. The Attorney General states that the method of transmission of the report raises security

concerns and recommends that the Commission establish a "secure e-fi ling system" for TNCs to

submit these reports. 73

2. Citing the sensitivity of the information, Uber requests a secure file transfer portal be

established for the submission of the file that details the percentage of gross trip fare originating

73 Initial Comments of the Attorney General, p. 4.

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in each incorporated municipality and county. 74

3. Lyft urges the Commission to establish a more secure method for delivering reports instead of

an email , suggesting Secure File Transfer Protocol or a password protected drive or folder. 75

Lyft requests that the Commission allow the submission of reports in a format "agreeable to the

Commission" such as CSV ( comma-separated value file) instead of an Excel spreadsheet. 76

4. The City of Mobile suggests that the Commission amend the rule to allow the submission of

reports in other spreadsheet formats rather than mandating Microsoft Excel. 77

5. The TNC Drivers note that reports submitted by TNCs may contain sensitive information and

recommend that the Commission establish a method that is more secure than e-mail to transmit

the reports. 78

C. Commission Determination.

1. In response to concerns about the method for submission of reports, the Commission finds that

the in-place security measures related to the APSC's electronic mail system provide adequate

protection for the delivery of these reports. However, the Commission has no objection to

approving an alternative transmission method as long as the TNC bears any additional costs

related to the alternative transmission method. Therefore, the Commission amends Rule TNC-4,

subparts (1 )(b) and (2)(b) to state "The TNC shall submit the report electronically via an email

address to be provid~d by the Commission or through an alternative method approved by the

Commission as long as the TNC bears any additional costs related to the alternative transmission

74 Initial Comments of Uber, pp. 4-5. 75 Initial Comments of Lyft, p. 4. 76 Id. 77 Initial Comments of the City of Mobile, p. 5.

DOCKET 32744- #28

method." A TNC may seek approval of an alternative transmission method through the permit

application or through a separate petition at a later date.

2. In response to the City of Mobile's comments regarding the use of a particular spreadsheet

software product, the Commission finds that it would consider the use of any spreadsheet product

that is easily compatible with the APSC's current software. Therefore, the Commission amends

Rule TNC-4, subparts (1 )(a) and (2)(a) to state "The TNC shall submit the report to the

Commission, in a spreadsheet approved by the Commission .... " Included with the permit

application, the TNC shall ind icate the spreadsheet application that it proposes to use for the

reports and provide the Commission with a sample spreadsheet.

V. Proposed Rule TNC-5: Submission of Local Assessment Fees

A. Proposed Rule. The Act requires T Cs to submit to the Commission the local assessment

fees collected by the TNC. The Commission proposed Rule TNC-5 that establi shes the

mechanics of how the TNCs will submit the local assessment fees to the Commission. The

Commission also proposed a form to accompany the transfer, a draft of which was included as an

attachment to the order at Attachment A.

B. Summary of Initial Comments. The fo llowing entities provided comments related to Rule

TNC-5: Attorney General ; Uber; Lyft; City of Auburn; Birmingham Airport Authority; and

Huntsville-Madison County Airport Authority.

1. The Attorney General recommend that the rules include a formula for calculating gross trip

fare: "Base Fare + Distance Charge + Time Charge + TNC Surcharge (if any) = Gross Trip

78 Initial Comments ofTNC Drivers, p. 3.

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Fare." 79

2. Citing the sensitivity of the information exchange, Uber requests that a secure file transfer

portal be established for submission of the TNC Local Assessment Fee Report that is to

accompany payment of said fee to the Commission. 80

3. Lyft urges the Commission to establish a more secure method for delivering reports instead of

an email, suggesting Secure File Transfer Protocol or a password protected drive or folder. 81

4. The City of Auburn indicates concerns regarding "getting enough documentation to prove how

much the T Cowes and if they are paying correctly." 82

5. The Birmingham Airport Authority requests that the Commission "add language to clarify that

the Local Assessment Fee is separate from the 'reasonable pickup fees' that airport authorities

may charge under Section 17(d) of the Act."83

6. The Huntsville-Madison County Airport Authority asserts that, based on conditions related to

federal funding, the Commission should amend the requirements and direct that the local

assessment fees for rides originating at an airport be sent directly to the airport. 84 In the

alternative, the Huntsville-Madison County Airport Authority requests that the Commission

require the municipalities and counties remit the local assessment fees co llected at airports to the

airport authorities. 85

C. Summary of Reply Comments. In response to comments from the City of Auburn, Lyft

79 Initial Comments of the Attorney General, p. 5. 80 Initial Comments of Uber, pp. 4-5 . 81 Initial Comments of Lyft, p. 4. 82 Initial Comments of the City of Auburn, p. 2. 83 Initial Comments of the Birmingham Airport Authority, p. 2. 84 Initial Comments of the Huntsv ille-Madison County Airport Authority, p. 3.

DOCKET 32744- #3 0

asserts that the Act itself addresses the failure of TN Cs to properly and timely submit the local

assessment fees. 86 In response to the Birmingham Airport Authority, Lyft contends that the Act

already distingui shes airport pickup fees from local assessment fees; therefore, it is not necessary

for the rules to address this further. 87

D. Commission Determination.

1. The Commission agrees with the Attorney General's suggestion to clarify the definition of

gross trip fare. As discussed in a previous section, the Commission amends Rule T C-2, adding

the fo llowing statement to the definition of gross trip fare: "The term includes surge pricing."

2. In response to concerns about the method for submission of reports, the Commission finds that

the in-place security measures related to the APSC's electronic mail system provide adequate

protection for the delivery of these reports. However, the Commission has no obj ection to

approving an alternative transmission method as long as the T C bears any additional costs

related to the alternative transmission method. Therefore, the Commission amends Rule TNC-5,

subpart (2)(b) to state "The T C Local Assessment Fee Report shall be submitted electronically

to an electronic mail address provided by the Commission or through an alternative method

approved by the Commission as long as the TNC bears any additional costs related to the

alternative transmission method ." A TNC may seek approval of an alternative transmission

method through the permit application or through a separate petition at a later date.

85 Id. 86 Reply Comments of Lyft, p. 3. 87 Id. , pp. 3-4.

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3. The City of Auburn indicates concerns regarding "getting enough documentation to prove how

much the T C owes and if they are paying correctly." The Commission finds that the audit

procedures established by the Act and addressed in Rule T C-10 adequately address these

concerns. Section 5(g) specifically allows certain municipalities to request that the Commission

initiate an audit.

4. The Commission acknowledges comments from the Birmingham Airport Authority requesting

additional language regarding "reasonable pickup fees" but finds that the requested additional

language is unnecessary because this issue is sufficiently addressed by the Act and the definitions

in Rule TNC-2.

5. In response to comments from the Huntsville-Madison County Airport Authority, the Act

neither allows the Commission to distribute local assessment fees to the airport authorities nor

gives the Commission the authority to require municipalities and counties to remit those fees to

airport authorities.

VI. Proposed Rule TNC-6: County and Municipal Boundaries

A. Proposed Rule. The Act requires the Commission to "prepare and make available for public

use Geographic Information System ("GIS") data in the form of a file showing the state's county

and municipal bouncfaries." The Commission proposed Rule TNC-6 that explains how the

Commission will publish the GIS file , how the Commission will notify the TN Cs of updates, and

how much time the TNC will have to implement the updated information. The Commission

anticipated that TNCs would be able to retrieve the GIS file from the Commission website and

implement any updates within 48 hours of notification.

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B. Summary of Initial Comments. The fo llowing entities provided comments related to Rule

TNC-6: Attorney General; Uber; Lyft; Alabama League of Municipalities; and City of Mobile.

1. The Attorney General indicated that the proposed method of notifying the TN Cs of boundary

updates is efficient but recommends that the Commission amend the rules to allow a TNC up to

five business days to update its system. 88

2. Citing the complexity of the data and potential weekend or holiday conflicts, Uber requests an

increase from 48 hours to 5 business days from the date of notification by the Commission to

update its system(s) for any changes to the GIS data. 89

3. Lyft urges the Commission to change the required time period for updating its systems from 48

hours to 7 business days.90

4. The Alabama League of Municipalities contends that the proposed rule exceeds the scope of

the Act because it "places the responsibility for establishing county and municipal boundaries [to

.be included in the GIS file] on the municipalities."91

5. The City of Mobile contends that the Act only requires the municipalities to provide "notice of

annexation within thirty days after the annexation is complete" and asserts that the proposed rule

is "confusing and appears to require some type of submission from municipalities that is not

required by the Act. "92

C. Summary of Reply Comments. Uber contends that the state's authori ty to enact fees does

88 Initial Comments of the Attorney General, p. 5. 89 Initial Comments of Uber, p. 5. 90 Initial Comments of Lyft, p. 5. 91 Initial Comments of the Alabama League of Municipalities, p. I. 92 Initial Comments of the~City of Mobi le, p. 5.

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not extend to federal and tribal lands located within state boundaries.93 Accordingly, Uber

asserts that the GIS files provided pursuant to Rule TNC-6 should include, in addition to the

outer boundaries of the state, boundaries for such federal and tribal lands carved out from the

applicability of Section 4 of the Act.94 Lyft states that the Act is clear regarding the boundary

requirements and urges the Commission not to impose any additional requirements on the TNCs

regarding the determination of the origin of the ride.95

D. Commission Determination .

. a. In consideration of comments by the Attorney General, Uber, and Lyft concemmg the

minimum allowed time to update the TNC systems, the Commission amends Rule TNC-6 to

allow TNCs up to seven calendar days from the time of notification to update its systems. For

additional clarification, the Commission also amends Rule TNC-6 to require the TNC to notify

the Commission of the exact date/time of the system update and that all rides conducted after the

update shall use the data in the most current GIS file .

b. The Alabama League of Municipalities and the City of Mobile contended that the proposed

rule required the municipalities to submit information that is not required by the Act. Section

4(c) of the Act states that "municipalities shall provide annexation information to the

commission within 30 days after the annexation is complete" and that such "information shall

include a written description of the boundary, along with a map or plat that clearly defines the

new territory added." The proposed rule simply stated that the "Commission wi ll publish, on its

93 Reply Comments of Uber, p. 1. 94 Id. 95 Rep ly Comments of Lyft, p. 1.

DOCKET 32744- #34

website, a geographic information system ("GIS") fi le that shows the county and municipal

boundaries as reflected by information provided to the Commission by the municipalities as

required by the Act." The proposed rule adds no additional requirements for the municipalities.

c. The Commission agrees with Uber that the State's authority to enact fees does not extend to

federal and tribal lands located within state boundaries. Therefore, the GIS files provided

pursuant to Rule TNC-6 will include, in addition to the outer boundaries of the State, boundaries

for such federal and tribal lands carved out from the applicability of Section 4 of the Act.

VII. Proposed Rule TNC-7: Safety Inspections

A. Proposed Rule. The Act states that the Commission may adopt rules "providing for safety

inspections of TNC vehicles." The Commission proposed Rule TNC-7 to establish safety

inspections to be accomplished before a T C driver uses a vehicle to provide TNC services and

annually thereafter.

B. Summary of Initial Comments. The fo llowing entities provided comments related to Rule

TNC-7: Attorney General ; Uber; Lyft; Birmingham Ai rport Authority; Huntsville-Madison

County Airport Authority; and TNC Drivers.

1. Safety Inspections.

a. After hearing the TNC drivers' concerns at the Commission ' s workshop on March 22, 2018,

the Attorney General suggested that the Commission change its requirement that safety

inspections shall be conducted by an AA TI or ASE certified mechanic because of the burden it

may place on T C drivers.96 Alternatively, the Attorney General recommended adding language

96 Initial Comments of the Attorney General , p. 6.

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to allow for a safety inspection to be performed by a mechanic that is under the supervision of an

AA TI or ASE certified mechanic.97

b. Uber urged the Commission to remove the requirement that the safety inspection be performed

by an AA TI or ASE certified mechanic because it may place a burden on TNC drivers, especially

in rural areas.98 Uber suggested that the rule be amended to allow for the safety inspections to be

performed by a "trained vehicle mechanic" or, as an alternative, that the inspection be "performed

or supervised" by an AATI or ASE certified mechanic.99 Uber urges the Commission to specify

that the objective of the inspection of the air bags is to confirm that the vehicle has air bags rather

than an investigation into the functionality of the air bags. 100

c. Lyft suggested that the Commission revise the Rule TNC-7 to state the "TNC shall conduct, or

have a qualified party conduct, a safety inspection of the transportation network vehicle" and

remove the requirement for inspection by an AATI or ASE certified mechanic.10 1 Lyft asserts

that the requirement for AATI or ASE certified inspections creates "added expense and burden

for the applicants and drivers, particularly those residing in rural parts of the state, without any

corresponding benefits. "' 02

d. The City of Auburn requests that the Commission add the following items to the safety

inspection: the condition of the interior (vehicle seats and headrests) and windshield wipers. 103

e. The City of Birmingham contends that the rule should require a TNC vehicle to have "four

97 Id. 98 Initial Comments of Uber, p. 5. 99 Id. 100 Id. , p. 7. 10 1 Initial Comments of Lyft , p. 6. io2 Id. , p. 5.

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doors, capability to open, close and unlock." 104

J. The City of Huntsville requests that the Commission include windshield wipers as part of the

vehicle inspection.105 The City of Huntsville asserted that the certified mechanics performing the

inspections should be independent mechanics that are not an employee of the TNC or under

contract with the TNC.106

g. The Birmingham Airport Authority states that the required safety inspection should include:

working door locks, windows that open and close, and functioning heating/air because these

items "bear a direct relation to passenger safety, in that the traveling public should enjoy a sealed

and secure cabin for all rides for which a prearranged fare is charged in Alabama." 107 The

Birmingham Airport Authority requests that the rules require TNC drivers to notify the TNC

"upon failure of a covered system" and require the TNC to remove the TNC driver from the TNC

platform until issue is resolved. 108

h. The Huntsville-Madison County Airport Authority commented that "both the TNC and the

TNC driver should maintain a copy of the annual inspection. 11109 "Since the inspections are

annual , seems that only the most recent records need to be kept." 11 0

i. TNC Drivers recommend the Commission establish that tread depth "must be at least 3/32

103 Initial Comments of the City of Auburn, p. 3. 104 Initial Comments of the City of Birmingham, p. 3. 105 Initial Comments of the City of Huntsville, p. 5. 106 Id. 107 Initial Comments of the Birmingham Airport Authority, p. 3. 10s Id. 109 Initial Comments of the Huntsville-Madison County Airport Authority, p. 3. 110 Id.

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inch." 11 1

2. Safety Inspection Form.

a. The Attorney General recommends that the Commission require TNCs to create a standard

safety inspection form which the TNC drivers would have completed by a qualified mechanic. 112

b. The City of Huntsville recommends that the Commission approve a standardized safety

inspection form and that each T C dri ver should be required to maintain a copy of the then­

current inspection sheet in the TNC vehicle. 11 3

3. Age of Vehicle.

a. The Attorney General suggests that the age of a TNC driver's vehicle should be extended from

10 to 15 years old to be consistent with Uber and Lyft ' s current policies. 114

b. Uber urges the Commission to increase the vehicle age limit from 10 years old to 15 years old

because a stringent age requirement could limit prospective TNC drivers that have older, but

well-cared-for, vehicles, adding that this increase would not sacrifice safety or quali ty.11 5

c. Lyft requests that the Commission amend the rule to allow TNC vehicles to be up to 15 years

old, asserting that "a 15 year vehicle age limits strikes a more appropriate balance between

protecting public safety and enabling drivers with safe vehicles to drive for a TNC." 11 6

d. TNC drivers requested that the Commission "change vehicle year requirements from 10 or

111 Initial Comments ofTNC Drivers, p. 3. 11 2 Initial Comments of the Attorney General, p. 6. 113 Initial Comments of the City of Huntsvi lle, p. 5. 114 Initial Comments of the Attorney General, p. 7. 115 Jnitial Comments of Uber, p. 7. 116 lnitral Comments of Lyft, p. 6.

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newer to 15 or newer since a vehicle inspection is required." 117

C. Summary of Reply Comments. The following entities filed reply comments related to Rule

TNC-7: Uber; Lyft; TNC Drivers; and BML Transportation Services, LLC ("BML

Transportation") .

1. In response to comments to add new criteria to the safety inspection, Uber urges the

Commission to adopt Rule TNC-7 as proposed (noting its prior comments) in order to "strike the

proper balance between imposing certain safety standards and minimizing unnecessary burden on

the TNC drivers. "118

2. In response to comments to add new criteria (such as functioning air conditioning, heating, and

headrests) to the safety inspection, Lyft contends that these items pertain to rider comfort rather

than vehicle safety and should not be included on the safety inspection.11 9 In response to

comments from the City of Huntsville suggesting that the rules require "independent mechanics"

to perform the inspection, Lyft states that its third-party mechanic partners have "no vested

interest in whether a prospective driver's vehicle is approved to operate on the platform or

not."1 20

3. The TNC Drivers asserted that the safety inspections should be done by an ASE certified or

AATI mechanic. 121 The TNC Drivers, referring to a comment by the City of Birmingham,

indicated that the Commission should require that a TNC vehicle has four independent doors,

rather than allow vehicles with rear doors that cannot open independently, like some pick-up

117 Initi al Comments.ofTNC Drivers, p. 3. 11 8 Reply Comments of Uber, p. 6. 11 9 Reply Comments of Lyft , p. 4 . 120 Id.

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trucks. 122

4. In response to comments regarding mechanic certifications, BML Transportation recommends

that TNC vehicle inspections should be performed by an ASE certified or AA TI mechanic. 123

D. Commission Determination.

1. Safety Inspections.

a. The Commission appreciates the concerns of the Attorney General, Uber, and Lyft regarding

the potential burden that may be created by requiring TNC drivers to use an AA TI or ASE

certified mechanic to perform the vehicle inspection, especially in rural areas of the state. The

Commission also recognizes its regulatory duty to establish regulations that promote the safety of

the general public and the importance of requiring certain standards for vehicle safety. In

weighing these concerns, the Commission finds that Attorney General and Uber made a

reasonable suggestion to also allow the safety inspection to be performed by a mechanic under

the supervision of an AA TI or ASE certified mechanic. Therefore the Commission amends the

proposed Rule TNC-7 by adding that the safety inspection may also be performed by "a

mechanic that is under the supervision of an AA TI or ASE certified mechanic" and that the

documentation of the inspection indicate who performed and/or supervised the inspection.124

b. The Commission generally agrees with Uber's assertion that the safety inspection should

121 Reply Comments ofTNC Drivers, p. 4. 122 Id., p. 2. 123 Reply Comments of BM L Transpo11ation, p. 3. 124 Rule TNC-1 allows for TN Cs or T C drivers to apply for a modification or temporary waiver of a rule if compliance causes an unusual hardship. If, over time, the concerns of the Attorney General , Uber, and Lyft are realized, it would be appropriate for TNCs or TNC drivers to apply for a modification or a wa iver of the requirement for an inspection by or under the supervision of a certified mechanic. possibly limited to certain rural areas with fewer certi fi ed mechanics.

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confirm the presence of airbags rather than require an investigation into the functionality of the

airbags. In this safety inspection, the Commission does not intend for the mechanic to

investigate the functionality of the airbags. The mechanic should note the presence of ai rbags,

identify any glaring problems (such as patent damage to the surfaces covering the airbags), and

any dashboard warnings regarding airbags that clearly indicate the inoperability of the airbags.

The Commission finds that the above clarification is sufficient and that no change to the

proposed rule is necessary to address this concern.

c. The Commission agrees with the Birmingham Airport Authority that, in Alabama, functioning

air conditioning is necessary for the safety of TNC riders, not just for passenger comfort. TN Cs

may contend that TNC riders have the ability to offer negative feedback regarding the lack of air

conditioning and that this feedback mechanism would remedy the problem of TNC vehicles with

passenger comfort issues. However, this remedy offers little help to a TNC rider stuck in a

traffic jam on a Birmingham highway in August. Therefore, the Commission is adding the

requirement for "functioning heat and air conditioning" to the safety inspection.

d. The Commission agrees with the City of Auburn and the City of Huntsville that windshield

wipers should be part of the vehicle inspection. In fact , the omission of this requirement in the

proposed rule was only due to a typographical error. Item (f) should read "windshield wipers"

rather than "windshield repairs." Therefore, the Commission amends Rule TNC-7 to reflect this

change. Windshield repairs would be included in the inspection of the windshield itself, which is

required by item (d) on the safety inspection.

e. The TNC drivers recommend that the Commission establish a certain tire tread depth on the

DOCKET 32744- #4 1

safety form. The Commission is not providing specific parameters for the other categories on the

safety inspection and will also leave the tire tread parameters to the mechanics, who have

expertise in this area.

f. The Commission recognizes the Birmingham Airport Authority's concerns regarding working

door locks and windows that open and close. The Commission finds that the proposed rule

already addresses the locks when it requires "doors, capability to open, close, and unlock."

Further, the Commission is addressing temperature and ventilation concerns by amending the

rule to add the requirement for "functioning heat and air conditioning" to the safety inspection .

g. To clarify the recordkeeping and inspection requirements related to safety inspections, the

Commission amends subpart ( 4) of Rule TNC-7 to state that the safety inspection records "shall

be maintained for two years from the date of the safety inspection and produced as part of the

driver records during an annual inspection ."

2. Safety Inspection Form. The Commission determines that it is not necessary to create a

standard inspection form. Uber and Lyft, which operate nationally and have operated in certain

Alabama cities, already have inspection forms. As long as those forms address all of the items in

this rule, or are amended to do so, the Commission finds that those forms will be sufficient. An

applicant shall include a copy of the safety inspection form with its TNC permit application.

3. Age of Vehicle. Based on the comments of the Attorney General, Uber, Lyft, and the TNC

Drivers, the Commission finds that the more appropriate vehicle age limit is 15 years. Therefore

the Commission amends Rule TNC-7 to state "no TNC driver shall drive or cause to be dri ven

any vehicle that is more than 15 years old."

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VIII. Proposed Rule TNC-8: TNC Trade Dress

A. Proposed Rule. The Act states that the Commission may adopt rules and requirements for "a

distinctive TNC emblem or signage, known as trade dress, to be displayed on the exterior of a

TNC vehicle." The Commission proposed Rule TNC-8 which would require TN Cs to establish a

trade dress that is distinctive and easy for potential TNC riders to see and identify.

B. Summary of Initial Comments. The following entities provided comments related to Rule

TNC-8: Attorney General; Lyft; City of Birmingham; City of Huntsville; Birmingham Airport

Authority; and the T C Drivers.

1. The Attorney General stated that the Comm ission should not require any specific size or shape

of trade dress, as long as the trade dress is readable from 50 feet away during the day and

reflective or illuminated to be seen at night. 125

2. Lyft urged the Commission to adopt the regulations on trade dress as proposed in Rule T C-8,

stating that the "trade dress characteristics identified in the Proposed Rule are consistent with

requirements across the country, and are adequate to ensure that riders and law enforcement can

easily identify a TNC vehicles." 126

3. The City of Birmingham requests that the regulations specify that the distinctive trade dress

should be displayed on the front driver's side windshield. 127

4. The City of Huntsville suggests that, in addition to the Commission keeping a copy of the

trade dress on file , it should also post the trade dress on its website for the benefit of the public

125 Initial Comments of the Attorney General , p. 7. 126 Initial Comments ofLyft, p. 7. 127 Initial Comments of the City of Birmingham, p. 3.

DOCKET 32744- #43

and enforcement officials. 128

5. The Birmingham Airport Authority requests that the trade dress be visible from the passenger

side of the vehicle, stating that this "will enable curbside efficiency during pickups at BHM and

other airports." 129

6. The TNC drivers commented that the Commission should "provide a grace period of 30 days

from activation date of the TNC driver for new TNC Drivers to allow a temporary non-reflective

paper trade dress until TNC Driver is able to obtain an official highly-reflective trade dress from

TNC." 130 The TNC Drivers state that the Uber Beacon light and Lyft Amp light are more visible

in poor lighting than a reflective TNC trade dress. 131

C. Commission Determination. After consideration of the comments, the Commission

determines that the rules, as proposed, are sufficient to ensure that TNC riders and law

enforcement can readily identify a TNC vehicle. In response to the TNC Drivers, the

Commission finds that the absence of a grace period for trade dress, while possibly lengthening

the time for TNC drivers to start providing service, incentivizes TNCs and TNC drivers to

quickly provide and use the appropriate trade dress. The Commission finds that, at this time, it is

unnecessary to require the TNCs to place the trade dress in a specific location as long as it

"prominently displayed." Uber and Lyft provide services nationally and its riders are accustomed

to the current placement of the companies' trade dresses. The Commission plans to place the

TNC trade dresses on the APSC website.

128 Initial Comments of the City of Huntsville, p. 5. 129 Initial Comments of the Birmingham Airport Authority, p. 3. 130 Initial Comments ofTNC Drivers, p. 3. 131 Id.

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IX. Proposed Rule TNC-9: Inspection of TNC Records

A. Proposed Rule. In order to ensure compliance with the requirements of Section 14(a) and

Section 10 of the Act, the Act states that the Commission may visually inspect a random sample

of individual trip records and individual TNC driver records. The Commission proposed Rule

T C-9 to establish a process to achieve a random sample of these records for inspection.

B. Summary of Initial Comments. The fo llowing entities provided comments related to Rule

T C-9: Attorney General ; Uber; Lyft; City of Auburn; and City of Mobile.

1. The Attorney General supports the Commission's proposed rule to require TNCs to document

each trip by a unique trip identification number. 132 The Attorney General recommended that the

Commission require TNCs to make trip histories available to TNC riders and provide T C riders

with the previously emai led receipts, in some form, at a rider's request. 133

2. Uber requests the removal of the reference to Section 8 in Rule TNC-9 because it claims that

the Act does not include any record-keeping requirements regarding Section 8. 134 Uber

di stinguishes the individual trip records maintained pursuant to Section 14(a) from the electronic

receipts, stating that individual trips records contain the same information as the electronic

receipts "but are separate records." 135 Uber contends that the Commission's proposed procedure

for selecting a random sample of trip records is too burdensome if the time period under review

is too long, like over the course of an entire year. Uber urges the Commission to place a

reasonable limit on the number of trip records that the Commission requests, suggesting that 100

132 Initial Comments of the Attorney Genera l, p. 7. 133 Id. 134 Initial Comments of Uber, pp. 8-9.

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trip records would be reasonable.136 For similar reasons, Uber contends that the Commi ssion

should limit the number of driver records that it requests, adding that the request should only

include "TNC drivers who are eligible to receive trip requests as of the date that the list is

generated." 137 Uber represents that if inactive drivers are included "inspections will be more

complicated, and compliance more difficult to readily determine, because TNC drivers who are

no longer eligible to receive trip requests for a variety of reasons, including having expired

required documents, will be included in the sample." 138 Similar to its request regarding the trip

records, Uber asks the Commission to limit the number of drivers selected for review to 100

drivers. 139

3. Lyft asserts that the Act does not impose a record-keeping requirement related to Section 8;

therefore, the rule should be revised to remove record-keeping requirements related to Section 8

of the Act. 140 Lyft also recommends that the Commission clarify the rule by changing "the date

of the trip" to "the date on which the trip began." 141 Lyft urges the APSC to require TN Cs to

only identify active TNC drivers and not drivers that have been rendered inactive on the TNC's

platform, stating that excluding inactive drivers will avoid potential confusion. 142

4. The City of Auburn states that a random sample should be defined and suggests "a percentage

135 Initial Comments of Uber, p. 8. 136 Id. , p. 9. 137 Id. , p. I 0. 13s Id. 139 Id. 140 Initial Comments of Lyft, p. 7. 141 Id. 142 Id.

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of all drivers." 143 Auburn also states that "records could be selected at random by the

Commission via random number generator software." 144

C. Commission Determination.

1. Uber and Lyft contend that the Act imposes no record-keeping requirement related to the trip

receipts described in Section 8 of the Act. The Commission does not dispute that Section 8 itself

lacks a record-keeping mandate; however, Section 14(a) requires the TNC to maintain "trip

records" and the information described in Section 8 ( origin, destination, total fare , and driver's

name) would reasonably be a part of the trip record. While not conceding that the electronic

receipts are part of the trip record, Uber does indicate that the electronic receipts contain the

same information as the individual trips records, adding that the two are separate records . In

consideration of these comments and the Commission's ability to perform a meaningful

inspection of a TNC's trip records, the Commission amends this section of Rule TNC-9 as

follows: "TN Cs shall maintain the individual trip records required by Section 14(a) of the Act for

a period of two years, including the required electronic receipt information listed in Section 8 of

the Act." The intent of this amendment is for a TNC to maintain the information included in the

receipt withouthaving to separately maintain the receipts as records.

2. Uber asserts that the proposed procedure for selecting a random sample of trip records could

be too burdensome if the time period under review is too long. The Commission finds that

nothing in the proposed rule itself creates an unreasonable burden on the TNC because the rule

does not mandate a certain time period or sample size. The Commission determines that the time

143 Initial Comments of the City of Auburn, p. 2.

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period and sample size should be established at the time of the annual inspection, recognizing

that the Commission may need to recalibrate these variables over time as TNC services expand in

the state. The Commission does not intend to enforce this rule in a way that will be unduly

burdensome of the TNC. The Commission will choose a time period and sample size that allow

it to ensure that the TN Cs are complying with the requirements of the Act and the TNC Rules.

3. Similar to its comments regarding trip records, Uber also requests that the Commission place

limits on the number of driver records that it will inspect. Like the Commission's response to

limits on trip records, the APSC finds that sample size should be established at the time of the

annual inspection, not in these rules. At the time of the inspection, the Commission will choose

a sample size that will not be unduly burdensome on the TNC and allows the APSC to ensure

that the TNC is complying with the requirements in the Act and the TNC Rules.

4. The Commission disagrees with Uber and Lyft's position that this rule should not require

TNCs to provide records related to inactive drivers. Uber and Lyft claim that inspections will be

more complicated if inactive drivers are included. Presumably this added complication results

from the TNC having to explain the details related to an inactive driver, such as why the inactive

driver's documents are expired or whether the driver was involuntarily removed from the T C's

digital network. Despite the claimed complications, this is exactly the type of information that

the Commission should review to satisfy its duties pursuant to the Act. For example, as part of

an inspection, the Commission should review information from an inactive driver's record to help

determine if a T C complied with requirements related to a confirmed violation of the zero-

144 Id., p. 3.

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tolerance intoxicating substance policy.

5. In response to a suggestion by Lyft, to clarify Rule TNC-9, the Commission amends the

statement "the date of the trip" to state "the date on which the trip began."

X. Proposed Rule TNC-10: Local Assessment Fee Audit

A. Proposed Rule. The Act states that the Commission "may request that a TNC engage an

independent third party auditor to veri fy the local assessment fees submitted [to the Commission

pursuant to the Act) are accurate." The Commission proposed Rule TNC-10 that requires

supplemental information, in addition to a copy of the audit report, which would provide the

Commission with sufficient information to distribute any recouped underpayments to the

municipalities and/or counties.

B. Summary of Initial Comments. The fo llowing entities provided comments related to Rule

TNC-10: Attorney General ; Uber; Lyft; City of Birmingham; and City of Mobile.

1. The Attorney General recognized that the Act limits the authorization to request a third-party

audit to no more than every two years. 145

2. To allow for sufficient time to select a firm and finalize an engagement contract, Uber requests

an increase from 10 days to 15 business days to notify the Commission of the name of the

certified public accounting firm that wi ll be performing the requested audit of local assessment

fees. ' 46

145 Initial Comments of the Attorney Genera l, p. 8. 146 Initial Comments of Uber, p. I I.

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3. Lyft urges the Commission to change the time period for notifying the APSC of the firm

selected for the third party audit from 10 days to 30 days. 147 Lyft wishes to submit reports in a

format "agreeable to the Commission" such as CSV (comma-separated value file) instead of an

Excel spreadsheet. 148 Lyft request that the rules state that a TNC satisfies the requirements of the

Act by submitting any underpaid local assessment fees to the Commission. 149

4. The City of Birmingham urges the Commission to require a TNC to pay "interest in the

amount of 12 percent per annum and a penalty equal to 10 percent of the amount of the

underpayment" in addition to the payment of the underpaid local assessment fees. 150

5. The City of Mobile requests that the Commission incorporate provisions of the Act into the

rule, specifically the provision in Section 4(g) of the Act which is related to the rights of

municipalities. 151 The City of Mobile recognizes that the Commission is the "logical entity to

collect underpaid local assessment fees." 152

C. Commission Determination.

a. Uber and Lyft both requested a longer period of time to notify the Commission of the name of

the certified public accounting firm that will be performing the requested audit of local

assessment fees. The Commission finds that thi s request is reasonable given that Section 4 of the

Act allows a TNC no more than 90 days from the APSC audit request to provide the Commission

with a copy of the third party audit. Therefore, the Commission amends Rule TNC-10(1) to state

147 Initial Comments of Lyft, pp. 7-8. 14s Id. 149 Id., p. 8. 150 Initial Comments of the City of Birmingham, p. 3. 15 1 Initial Comments of the City of Mobile, pp. 6-7. i52 Id., p. 7.

DOCKET 32744- #50

"Within 30 calendar days of the Commission's request for a third party audit, the TNC shall

notify the Commission of the name of the certified public accounting firm that will be conducting

the audit."

b. In response to the Lyft's comments regarding the use of a particular spreadsheet software

product, the Commission does not object to using a spreadsheet product that is easily compatible

with the APSC current software. Therefore, the Commission amends Rule TNC-10, subpart

(2)(a) to state "A file, in a spreadsheet approved by the Commission, that details any local

assessment fee underpayment of over three percent as identified through the audit, detailing the

amounts underpaid for each municipality and/or county." Included with the permit application,

the TNC shall indicate the spreadsheet application that it proposes to use to comply with the

requirements of Rule TNC-10.

c. In response to Lyft's comments, the Commission finds that it is unnecessary to add language to

the rules that indicate that a TNC sati sfies the requirements of the Act by submitting any

underpaid local assessment fees to the Commission. However, the Commission reiterates its

position stated in a previous order that, in light of the APSC's statutory role in the collection and

distribution of local assessment fees, it is axiomatic that the Commission must also be made

aware of and be involved in the collection and distribution of any underpayments. The City of

Mobile agreed, recognizing that the Commission is the "logical entity to collect underpaid local

assessment fees."

d. In response to comments from the City of Birmingham, the Commission determines that,

given the frequency of the allowed audits and the information known to the APSC at this time, it

DOCKET 32744- #5 1

is unnecessary to require a TNC to pay interest and a penalty for any discovered underpayment of

local assessment fees. However, the Commission will monitor this issue in consideration of any

possible future action.

e. In response to comments from the City of Mobile, the Commission finds that the rules do not

need to repeat the rights of the municipalities regarding audits because Section 4(g) of the Act

already clearly specifies these rights, stating that certain municipalities may request the initiation

of an audit or request to review portions of an audit that has been performed.

XI. Proposed Rule TNC-11: Investigation and Resolution of Complaints

A. Proposed Rule. Section 14 of the Act authorizes the Commission to inspect certain records

that are necessary to investigate and resolve complaints against a TNC or a TNC driver. The

Commission proposed Rule TNC-11 which establishes the manner in which informal and formal

complaints will be addressed by the Commission. As reflected, the informal complaint process

was designed to expedite and encourage resolution through Commission personnel who serve as

an intermediary between the TNC/TNC driver and the affected informal complainant. The

Commission has traditionally had an extremely high success rate with its informal complaint

resolution procedures and specifically incorporated them herein for that reason. In circumstances

where the informal complaint process does not yield satisfactory results, affected parties, and in /

some cases the Commission, must have a more formal avenue to address unresolved issues.

Formal complainants entail more rigid legal requirements and are processed pursuant to the

general provisions of Title 37, Chapter 1 of the Alabama Code and the Commission's Rules of

Practice.

DOCKET 32744- #52

B. Summary of Initial Comments. The fo llowing entities provided comments related to

proposed Rule T C-11: Attorney General ; Uber; Lyft; City of Huntsville; City of Mobile; and

Birmingham Airport Authority.

I . The Attorney General stated that the proposed rule ensured that "affected parties have an

effective mechanism to address legitimate complaints" and suggested that the Commission

include a provision stating that all formal proceedings will be subject to the Commission's Rules

of Practice. 153

2. Uber indicated that the proposed rule "outlines a sensible structure for informal and formal

complaint resolution" but suggests that the Commission clarify the prerequisite for filing a

formal complaint. 154 Uber urges the Commission to add language to subparts (2) and (3) that

reference an attempt by the affected party to address the issue through the informal process.155

3. Lyft requests that the rules clarify that "the informal and formal complaint process also applies

to complaints initiated by the Commission." 156

4. The City of Huntsvi lle asserts that counties and municipalities should be permitted to submit

informal or formal complaints to the Commission and "should be listed as an entity that may

intervene in a Commission proceeding under the rule." 157

5. The City of Mobile contends that the "rule should allow municipalities in which TN Cs operate

to be considered 'affected persons' for the purposes of initiating Commission investigations." 158

153 Initial Comments of the Attorney Genera l, p. 8. 154 Initial Comments of Uber, p. 12. 155 Id. 156 Initial Comments of Lyft, p. 9. 157 Initial Comments of the City of Huntsville, p. 7. 158 Initial Comments of the City of Mobile, p. 7.

DOCKET 32744- #53

The City of Mobile also asserts that the Commission should allow municipalities to intervene in

a proceeding and appeal a final order of the APSC. 159

6. The Birmingham Airport Authority proposed that, for the initiation of an investigation into a

complaint regarding a TNC ride originating at an airport, the Commission notify the related

airport of the proceeding. 160 The Birmingham Airport Authority further contends that airports

should receive information regarding any remedial actions or penalties taken against TNCs. 161

C. Summary of Reply Comments. In response to the initial comments regarding

municipalities and airports, Uber states that "Section 17 of the Act includes broad preemption in

order to provide for clear and uniform statewide regulation of TNCs" and that shifting the

complaint resolution from the state level to the local level "runs contrary to the Legislature's

intent in adopting Section 17 and undermines coherence and efficiency that come from having a

central statewide regulatory framework." 162

D. Commission Determination.

1. In response to the Attorney General, the rule includes a statement, subsection (5), that "all

public hearings conducted by the Commission with respect to a formal complaint shall be

conducted pursuant to the Commission's Rules of Practice."

2. Uber requested that rule's description of the formal complaint process reference the informal

process, apparently suggesting that the informal complaint process should be required prior to

filing a formal complaint. The Commission finds that it is unnecessary to amend the rule in this

1s9 Id. 160 Initial Comments of the Birmingham Airport Authority, p. 3. 161 Id. , pp. 3-4. 162 Reply Comments of Uber, pp. 6-7.

DOCKET 32744- #54

way because, although the informal complaint process is "strongly encouraged" in the rules, it is

not a prerequisite for filing a formal complaint. And, since the rules already strongly encourage

the informal process, it is not necessary to further reference the informal process in the

description of the formal complaint process.

3. In response to Lyft's suggestion that the informal and formal complaint processes also apply to

the Commission, the APSC states that the informal complaint process applies to affected persons

and not the Commission itself. This does not suggest that the Commission would not seek to

address issues outside of the formal process, but rather that, by the virtue of its statutorily-granted

authority, the Commission does not need to establish its own informal complaint resolution

process through this rulemaking. As proposed, subpart ( 4) outlines the process for investigations

or complaints initiated by the Commission.

4. The City of Huntsville and the City of Mobile both asserted that municipalities should be

permitted to file complaints and intervene in proceedings. Countering these assertions, Uber

suggested that allowing municipalities to initiate complaints and intervene in proceedings

"undermines coherence and efficiency that come from having a central statewide regulatory

framework ." The Commission finds that the Legislature did not intend to remove a

municipality's ability to file a complaint or intervene in a TNC proceeding. Rather, the Act

centralized the adjudication of such complaints under the APSC. Allowing municipalities to file

complaints or intervene does not run contrary to the Legislature's intent to centralize the

adjudication. Further, in other sections of the Act (such as Section 14(c)), the Legislature

recognizes that the municipalities have an interest in safe, reliable TNC service. As such, if a

DOCKET 32744- #55

municipality, or any other person, files a complaint with the Commission, whether formal or

informal, the burden is on that person to demonstrate that it is an "affected person" pursuant to

the rule. The Commission does recognize Uber's concerns and reiterates that the APSC is the

sole agency to investigate and adjudicate complaints.

5. In response to the Birmingham Airport Authority's request for notification of complaints, the

Commission finds that it is not necessary for the rules to require such notification. If any person

(including an airport authority) desires notification of proceedings, such as hearings related to a

formal complaints, then that person may ask to be added to the APSC service li st.

XII. Response to Miscellaneous Comments

A. Cash Payments. The City of Birmingham requested that the Commission prohibit cash

payments for T C rides. 163 The TNC Drivers agreed that payments made outside of the digital

network should be prohibited but noted that Uber allows cash payments in certain markets. 164

Neither the Act nor the Rules prohibit cash payments. At this time, the Commission will collect

information and monitor this issue for any future action. The TNCs may publish policies

regarding cash payment for TNC service.

B. Fatigued or Impaired Drivers. The City of Birmingham urged the Commission to place

restrictions on the number of driving hours per day for a TNC driver, suggesting that "No T C

driver shall use a digital network or provide prearranged rides for more than: (I) fourteen

consecutive hours; or (2) sixteen hours within a twenty-four-hour period." 165 The City of

163 Initial Comments of the City of Birmingham, p. 4. 164 Reply Comments ofTNC Drivers, pp. 2-3 . 165 Initial Comments of the City of Birmingham, pp. 4-5.

DOCKET 32744- #56

Birmingham also suggested that the TNC Rules require TNCs to adopt a policy that prohibits a

TNC driver from providing a prearranged ride when that driver is impaired by illness, fatigue, or

any other condition that would likely preclude safe operation of such vehicle." 166 The Attorney

General agreed with the City of Birmingham, stating that such limits help to prevent accidents

and promote safety and requested that the Commission include a maximum driver-time such as

"ten hours in a 24-hour period." 167 The TNC Drivers presented a similar suggestion. 168 Uber

noted that "many TNC drivers also have full- and part-time jobs and drive on a TNC's digital

networks to supp}ement their income, sometimes for only a limited period of time to meet a

specific goal." 169 The Commission agrees with the safety concerns of the City of Birmingham,

the Attorney General, and the TNC Drivers and therefore proposes the following rule: "A TNC

driver shall not use a digital network or provide TNC prearranged rides for more than 12 hours

within a 24-hour period."

In light of the fact that this rule was not proposed initially and subject to the initial and

reply comment cycles established in this cause, the Commission finds it most appropriate to

establish an additional comment cycle to afford all parties to this cause an opportunity to provide

input on this newly proposed rule which is appended hereto as Attachment F. The Commission

will consider all comments concerning this additional rule which is entitled "TNC Driver

/

Restrictions" if filed in writing with the Secretary of the Commission on or before the close of

166 Id. 167 Initial Comment of the Attorney General , p. 8. 168 Reply Comments ofTNC Drivers, p. 3 (proposing that "No TNC Driver shall use a digital network or provide prearranged rides for a more than fourteen (14) hours within a twenty-four (24) hour period and be required to be offline for six (6) consecutive hours off duty") .

DOCKET 32744- #57

business on June 29, 2018.

C. Service Animals. The City of Birmingham suggested that the Commission require TN Cs to

accommodate service animals without imposing an additional charge for such accommodation. 170

The TNC Drivers agree but add that any regulation should not be written to preclude the

collection of damage payments from the TNC riders for any damage to the TNC vehicle caused

by a service animal. 171 Section 13 of the Act states that "TNC drivers shall comply with all

applicable laws relating to the transportation of service animals" and that a 11TNC may not

impose additional charges for providing services to individuals with physical disabilities because

of those disabilities. 11 The Commission finds that, at this time, the Act sufficiently addresses this

issue.

D. Disclosure of TNC Records. The City of Birmingham urged the Commission to add a

provision to the rules that clarifies the restrictions on the disclosure of TNC records, specifically

addressing the disclosure of TNC records to law enforcement or other government agencies. 172

The Commission finds that the Act clearly addresses the restrictions on disclosure of TNC

records. Section 14(f) of the Act states "No political subdivision of the state, including the

commission, may disclose any records, data, or information provided by a TNC pursuant to this

act to a third party absent a court order or subpoena. 11 Therefore the Commission finds it

unnecessary to add a provision to the rules regarding the disclosure of TNC records.

E. Protection of TNC Driver Information. The City of Birmingham recommends that the

169 Initial Comments of Uber, p. 6 (commenting on the proposed Rule TNC-7; Uber did not provide comments in direct response to the City of Birmingham's proposal) 170 Initial Comments of the City of Birmingham, p. 5.

DOCKET 32744- #58

Commission amend the proposed rules to include protections of the TNC drivers' personal

information.173 While the Commission encourages the TNCs to develop procedures to protect

the TNC drivers' personal information, the Commission declines to include any such restrictions

in the rules at this time. The Commission will monitor the TN Cs treatment of driver information

and take action in the future if necessary.

XIII. TNC Forms

A. Permit Application Form (APSC Form TNC-1). Based on changes to Rule TNC-3

regarding permitting, the Commission made minor amendments to the proposed APSC Form

TNC-1. The Commission also made minor amendments related to grammar and the clarity of the

statements on the form. Uber requested that the form be modified to allow payment by ACH or

standard check. In response to Uber's request, the Commission amended the form to allow for

payment by electronic funds transfer, including ACH. The final APSC Form TNC-1 is included

as Attachment C.

B. Permit Renewal Form (APSC Form TNC-2). Based on changes to Rule TNC-3 regarding

permitting, the Commission made minor amendments to the proposed APSC Form TNC-2. The

Commission also made minor amendments related to grammar and the clarity of the statements

on the form. Uber requested that the form be modified to allow payment by ACH or standard

check. In response to Uber's request, the Commission amended the form to allow for payment by

electronic funds transfer, including ACH. The final APSC Form TNC-2 is included as

171 Reply Comments ofTNC Drivers, p. 3. 172 lnitial Comments of the City of Birmingham, p. 5. 173 Id. , pp. 5-6.

DOCKET 32744- #59

Attachment D.

C. TNC Local Assessment Fee Report. The Commission finds that no changes are necessary to

thi s form as it was proposed. The final Local Assessment Fee Report is included as Attachment

E.

IT IS THEREFORE ORDERED BY THE COMMISSION, that the rules at Attachment B

are hereby approved and adopted as the Transportation Network Company Rules.

IT IS THEREFORE ORDERED BY THE COMMISSION, that the forms at Attachments

C, D, and E are hereby approved and adopted for use to support the administration of the

Transportation Network Company Rules.

IT IS FURTHER ORDERED BY THE COMMISSION, that the parties to this cause may

submit comments concerning the additional rule proposed in Attachment F hereto entitled "TNC

Driver Restrictions." Such written comments will be considered by the Commission if filed with

the Secretary of the Commission no later than the close of business on June 29, 2018.

IT IS FURTHER ORDERED BY THE COMMISSION, that jurisdiction in this cause is

hereby retained for the issuance of any further order or orders as may appear to be just and

reasonable in the premise.

DOCKET 32744- #60

IT IS FURTHER ORDERED, that this Order shall be effective as of the date hereof.

DONE at Montgomery, Alabama, this day of June, 2018.

ALABAMA PUBLIC SERVICE COMMISSIO

Twinkle Andress Cavanaugh, President

-l-71}_,<:J~ Jeremy H. Oden, Commissioner

ATTEST: A True Copy

~~ecret~

TWINKLE ANDRESS CAVANAUGH, PRESIDENT

JEREMY H. ODEN, ASSOCIATE COMMISSIONER

CHRIS "CHIP" BEEKER, JR., ASSOCIATE COMMISSIONER

ATTACHMENT A

STATE OF ALABAMA PUBLIC SERVICE COMMISSION

P.O. BOX 304260 MONTGOMERY, ALABAMA 36130

IN RE: REGULATION OF TRANSPORTATION NETWORK COMPANIES

JOHN A. GARNER. EXECUTIVE DIRECTOR

DOCKET 32744

ORDER INSTITUTING A RULEMAKING PROCEEDING

BY THE COMMISSION:

On February 22, 2018, Alabama Legislative Act No. 2018-127 ("Act") was signed into

law with an effective date of July 1, 2018 . The Act creates a framework for the statewide

regulation of transportation network companies ("TNC") and TNC drivers, placing these entities

under the regulatory jurisdiction of the Alabama Public Service Commission (the "APSC" or

"Commission"). Pursuant to the Act, a person may not operate a TNC in the state without first

having obtained a permit from the Commission. The Commission is charged with issuing a

permit to each applicant that meets the requirements for a TNC under the Act. In addition to

permitting, the Commission is also responsible for : collecting and distributing local assessment

fees ; preparing and maintaining a file that shows county and municipal boundaries; inspecting

TNC records; investigating and resolving complaints against TNCs or TNC drivers; and

administering penalties for noncornpli ance with the Act or the implementing rules and

regulations established by the Commission through this proceeding.

In order to meet the statutory duties that the Act has assigned to the APSC, the

Commission, consistent with Section 16 of the Act, is establishing this rulemaking proceeding

DOCKET 32744- #2

and proposing the rules described in the following sections. As a part of this proceeding, the

Commission will consider any comments on the following proposed rules if received by the

Commission on or before the close of business on April 13, 2018. All comments received will

be posted on the Commission's website at www.psc.alabama.gov. Reply comments will be

considered by the Commission if received on or before the close of business on May 4, 2018. All

reply comments will also be posted on the website.

During the initial comment period, the Commission is planning to host two public

workshops to gather information and suggestions from interested parties. The first workshop is

scheduled for March 22, 2018 while the second workshop is scheduled for March 27, 2018.

Both workshops will convene at 9:30 AM on the designated dates in the Carl L. Evans Chief

Administrative Law Judge Hearing Complex located in the Commission's office space at 100

North Union Street, Montgomery, Alabama 36104. The workshops are intended to provide an

opportunity for constructive, informal dialogue concerning the rules, regulations, guidelines, and

procedures under consideration in this proceeding. All interested parties who intend to actively

participate in the workshops should notify the Commission, in writing, of their intention to

participate by submitting such notice to the Secretary of the Commission, Mr. Walter Thomas, Jr.

Such notice should be filed before the close of business on March 19, 2018, and should, to the

fullest extent possible, identify the individual or individuals who will be actively participating in

the workshops on behalf of each participant.

The Commission will publish on its website, no later than the close of business on March

20, 2018, a list of preliminary issues to be considered at the March 22 workshop as well as a list

of the expected participants at the workshops. The issues for discussion at the March 27, 2018

DOCKET 32744- #3

workshop will be determined at or shortly following the initial workshop and published on the

Commission's website no later than the close of business on March 26, 2018.

1. Application and Scope. The range of regulatory duties prescribed by the Act necessitates the

creation of rules by the Commission, as expressly allowed by the Act. The Commission

proposes the rule below ("Rule TNC-1 ") to establish that this set of rules ("TNC Rules") applies

to those persons subject to the Act. The Act requires TNCs to create certain policies, such as a

zero tolerance intoxicating substance policy. The proposed rule requires TNCs to comply with

their own statutorily-required policies and establishes that any violation of these policies will be

addressed by the Commission in the same manner as a violation of the requirements of the Act or

of Commission regulations. This proposed rule also provides an avenue for a regulated person to

seek a waiver from any of the rules established on demonstration that such rule causes unusual

hardship.

770-X-12-.01 Application and Scope (Rule TNC-1)

(1) These rules and regulations shall govern persons subject to Act 2018-127.

(2) If compliance with any of these rules causes unusual hardship, application may

be made to the Commission for modification of the rules or for temporary

exemption from their requirements, provided the TNC or TNC driver submits

with such application a complete explanation of the reason for the proposed

exemption. No deviation from these rules shall be permitted without written

authorization granted by the Commission. The Commission cannot, however,

authorize deviation from the requirements of the Act.

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(3) A TNC shall comply with all of the policies that it creates in order to comply

with the requirements of the Act. Any violation of these statutorily-required or

Commission-required policies wi ll be addressed by the Commission in the same

manner as a violation of the requirements of the Act or Commission regulations.

2. Definitions. The Act defines eight terms. Six of the eight terms are defined through a cross

reference to the definitions in Ala. Code Section 32-7C-l. The following rule ("Rule TNC-2")

includes all eight terms as defined in the Act and in Ala. Code Section 32-7C- l . Of the eight

terms, the Commission specifically requests public comment on the interpretation of one term,

"TNC Vehicle." The Act defines TNC Vehicle (through a cross reference to the definition of

"personal vehicle" in Section 32-7C-l) in a way that possibly includes large or specialized

vehicles such as busses, limousines, or wheelchair vans. The proposed rule adds language to the

statutory definition to clarify that these large or specialized vehicles do not meet the definition of

TNC Vehicle. The Commission seeks comments on whether the other statutory definitions

require clarification and whether additional terms should be defined in Rule TNC-2.

770-X-12-.02 Definitions (Rule TNC-2)

(1) COMMISSION. The Public Service Commission.

(2) DIGITAL NETWORK. Any online-enabled application, software, website, or

system offered or utilized by a TNC that enables the prearrangement of a ride with

a TNC driver.

(3) GROSS TRIP FARE. The sum of the base fare charge, distance charge, and

time charge for a complete trip at rates published on the TNC's website. The term

does not include any additional fees, including airport or venue fees.

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(4) PREARRANGED RIDE. The provision of transportation by a TNC driver to

a TNC rider, beginning when a TNC driver accepts a ride requested by a TNC

rider through a digital network controlled by a TNC, continuing while the TNC

driver transports the requesting TNC rider, and ending when the last requesting

TNC rider departs from the personal vehicle of the TNC driver. A prearranged

ride does not include transportation provided by any of the following pursuant to

the Alabama Motor Carrier Act, Chapter 3 of Title 37:

(a) A shared expense carpool or vanpool arrangement.

(b) A regional transportation company or licensed motor carrier.

(5) TNC. A transportation network company that is a corporation, partnership,

sole proprietorship, or other entity licensed and operating in this state that uses a

digital network to connect a TNC rider to a TNC driver who provides a

prearranged ride. A TNC may not control , direct, or manage the personal vehicle

or the TNC driver who connects to its digital network, except where agreed to by

written contract.

(6) TNC DRIVER. An individual who meets both of the following criteria:

(a) Receives connections to potential riders and related services from a

TNC in exchange for payment of a fee to the TNC.

(b) Uses a personal vehicle to offer or provide a prearranged ride to a TNC

rider upon connection through a digital network controlled by a TNC and in

exchange for compensation or payment of a fee .

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(7) TNC RIDER. An individual who uses the digital network of a TNC to

connect with a TNC driver who provides a prearranged ride to the TNC rider in

the personal vehicle of the TNC driver between points chosen by the TNC rider.

(8) TNC VEHICLE or PERSONAL VEHICLE. A vehicle that meets both of the

following criteria:

(a) Is used by a TNC driver to provide a prearranged ride

(b) Is owned, leased, or otherwise authorized for use by a TNC driver.

Busses, limousines, wheelchair vans, and vehicles with a passenger capacity of

greater than seven people, not including the driver, are not considered TNC

Vehicles.

3. Permitting. The Act states that the Commission "shall issue a permit to each applicant that

meets the requirements for a TNC under this act." The Act lists numerous requirements for a

TNC throughout the Act. The following proposed rule ("Rule TNC-3") lists those requirements,

labeled (a) through (i), which must be met in order for the Commission to issue a permit.

Pursuant to the proposed rule, the applicant would indicate compliance with these requirements

by submitting an application ( on a form provided by the Commission, a proposed draft of which

is included as Attachment A) that includes a sworn statement of compliance; submitting an

application fee of $700; and providing several documents that support the TNC's compliance

with the Act's requirements. The proposed rule requires a public hearing prior to the issuance of

a TNC permit to an applicant.

The Act states that the Commission "may require the permit to be renewed annually."

The following proposed rule requires a TNC to renew its permit annually by completing a form

I .

DOCKET 32744- #7

provided by the Commission (a proposed form is included as Attachment B) and submitting a fee

of $300. This $300 renewal fee and the $700 initial application fee will be used to defray costs

related to the Commission's processing of the application, including hearing expenses.

The Act requires that a TNC have a Zero Tolerance Intoxicating Substance Policy.

Therefore, the proposed rule requires a TNC to submit this policy as a part of its application.

The Commission is seeking comment on the minimum contents of the Zero Tolerance

Intoxicating Substance Policy required to meet the requirements of the Act and whether the

policy must include a description of the actions to be taken if a driver is found to have violated

this policy. Further, the Commission seeks comments as to whether it has the authority to deny

an application if a submitted Zero Tolerance Intoxicating Substance Policy does not meet the

requirements of the Act.

The Act requires the TNC's digital network to display a picture of the TNC driver. The

Commission seeks comments regarding the development of a policy to ensure that the

photograph on the TNC's digital network enables a rider to positively identify the driver,

specifically whether the Commission should require TNC drivers to regularly update the

photographs displayed on a TNC's digital network.

The Act requires a TNC to transmit an electronic receipt to a TNC rider within a

"reasonable period of time following completion of a trip." The proposed rule sets two hours as

the time period that is reasonable for a TNC to provide a rider with a receipt. This time limit

would be the standard for compliance with terms of the permit. However, this standard

reasonable time period would be tolled for any delays in receipt transmission caused by a TNC

rider or any delivery system issues beyond the reasonable control of the TNC.

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The Act requires a TNC to perform certain actions before allowing an individual to

accept trip requests through a TNC's digital network as a TNC driver. The purpose of these

requirements is to promote public safety by setting basic standards that must be met before an

individual starts driving for a TNC. However, the Act is less clear about whether a TNC is

required to periodically perform additional checks to ensure that its existing drivers continue to

meet these standards. For example, the Act does not specify whether a TNC should perform

periodic checks to ensure that a driver still has a valid driver's license. The proposed rule

requires a TNC to submit a policy that describes its procedures for performing periodic checks to

ensure that the TNC drivers using its digital network continue to meet these standards.

The Act indicates that inspections will take place in a "mutually agreed upon location" or

"through a mutually agreed upon secure electronic process." For a particular inspection, the

Commission will determine whether the inspection will occur at a physical location or through a

secure electronic process. The Commission proposes that the Commission office space in

Montgomery would be a suitable location for any physical inspection. Further, the Commission

proposes that, as a part of the permit application, that the TNC be required to propose a secure

electronic process for the Commission to inspect a sample of the TNC's individual trip records

and driver records that it is required to maintain pursuant to the Act.

770-X-12-.03 Permitting (Rule TNC-3)

(1) The Commission shall issue a permit to an applicant that meets the following

statutory requirements:

(a) TNC shall disclose to the rider the fare or fare calculation in its digital

network. If the fare is not disclosed to the rider before the beginning of the

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prearranged ride, the rider shall have the option to receive an estimated fare before

the beginning of the prearranged ride.

(b) TNC's digital network shall display a picture of the TNC driver, the

first name of the TNC driver, and the make, model, and license plate number of

the TNC driver's vehicle before the rider enters the TNC vehicle.

(c) Within two hours following the completion of a trip, a TNC shall

transmit an electronic receipt to the rider that lists all of the following: the origin

and destination of the trip; the total time and distance of the trip; the total fare

paid; and the TNC driver's first name. The receipt transmit period is tolled for any

delays in receipt transmission caused by a TNC rider or any delivery system issues

beyond the reasonable control of the TNC.

(d) TNC shall complete all of the required statutory checks before

allowing an individual to accept trip requests through that TNC's digital network

as a driver.

(e) TNC shall establish and enforce a zero tolerance intoxicating substance

policy for TNC drivers that prohibits any amount of intoxication of the driver

while providing transportation network services.

(f) TNC shall include on its website a notice concerning the TNC's zero

tolerance intoxicating substance policy and the means to make a complaint about

a suspected violation of the policy.

(g) Upon receipt of a rider complaint alleging a violation of the zero

tolerance intoxicating substance policy, the TNC shall immediately suspend the

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TNC driver's access to the TNC's digital network and conduct an investigation

into the reported incident. The suspension shall last the duration of the

investigation.

(h) The TNC shall adopt a policy of nondiscrimination against riders or

potential riders who are protected by Title 7, Civil Rights Act of 1964, 42 U.S.C.

2000e. et. seq. or the Americans With Disabilities Act of 1990. TNC may not

impose additional charges for providing services to individuals with physical

disabilities because of those disabilities.

(i) TNC shall maintain an agent for service of process in the State.

(j) TNC shall maintain records as required by the Act.

(2) In order to obtain a permit to operate a TNC, a person shall submit an

application to the Commission, on the form prescribed by the Commission, which

includes a sworn statement that the applicant will comply with all of the statutory

requirements listed above in Subpart ( 1 ).

(3) An applicant shall submit the following documents with its application:

(a) Application fee of $700

(b) Articles of Incorporation or Articles of Organization

(c) Nondiscrimination Policy

(d) Zero Tolerance Intoxicating Substance Policy

(e) Illustration of TNC's trade dress

(f) Method that TNC will use to calculate customer fares

(g) TNC's Record Retention Policy

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(h) TNC policy regarding periodic checks of TNC drivers to ensure that

the TNC drivers using its digital network continue to meet the initial standards for

TNC drivers described in the Act

(i) Certificate of Insurance

U) TNC's procedures for responding to requests from law enforcement

(4) A person must have a valid and current permit to operate as a TNC.

(5) The TNC permit will be valid until June 30th following the date that it was

issued.

(6) In order to renew a TNC permit, a TNC will submit a permit renewal form, on

a form prescribed by the Commission, and a renewal fee of $300 on or before the

close of business on July 1st. Any permit renewal received after July 1st will

incur a late fee of $100 per day.

(7) The Commission may revoke a TNC permit, effective 30 days from the date of

notice, if a TNC fails to submit a completed annual permit renewal form and/or

renewal fee on or before the close of business on July 1. Once a permit is

revoked, to regain the permit, a person must submit a new application for a TNC

permit with an application fee of $700.

(8) A TNC shall comply with all of the terms of its permits. A TN C's failure to

comply with the terms of its permit will be addressed by the Commission in the

same manner as a violation of the Act, the TNC Rules, or a Commission order.

4. Reporting. The Act requires TNCs to submit reports to the Commission regarding the

percentage of the gross trip fare that originated in municipalities and unincorporated portions of

----------------· . · ·- ..

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the counties over the previous calendar quarter. The Commission proposes the following rule

("Rule TNC-4") that establishes the formatting requirements and the dates of the reporting

periods. The Commission specifically seeks comments regarding the format of the report and

any issues concerning the reporting period.

770-X-12-.04 Reporting (Rule TNC-4)

(1) No later than 30 days after the end of each calendar quarter, a TNC shall

submit a report to the Commission that lists the percentage of the gross trip fare

that originated in each municipality during the reporting period.

(a) The TNC shall submit the report to the Commission, in a Microsoft

Excel spreadsheet, listing each municipality in which a ride originated and

providing the total gross trip fare and the total local assessment fee collected

during the reporting period for rides originating in each municipality.

(b) The TNC shall submit the report electronically via an email address to

be provided by the Commission.

(2) No later than 30 days after the end of each calendar quarter, a TNC shall

submit a report to the Commission that lists the percentage of the gross trip fare

that originated in the unincorporated portion of each county during the reporting

period.

(a) The TNC shall submit the report to the Commission, in a Microsoft

Excel spreadsheet, listing each county in which a ride originated and providing the

total gross trip fare and the total local assessment fee collected during the

reporting period for rides originating in the unincorporated portion of each county.

DOCKET 32744- #13

(b) The INC shall submit the report electronically via an email address to

be provided by the Commission.

(3) For the purpose of this rule, the calendar quarters are defined as follows :

(a) 1st Quarter: January 1st through March 31st

(b) 2nd Quarter: April 1st through June 30th

(c) 3rd Quarter: July 1st through September 30th

(d) 4th Quarter: October 1st through December 31st

5. Submission of Local Assessment Fees. The Act requires INCs to submit to the

Commission the local assessment fees collected by the INC. The Commission proposes the

following rule ("Rule TNC-5") that establishes the mechanics of how the INCs will submit the

local assessment fees to the Commission. The Commission specifically seeks comments on

whether the proposed method is a viable and efficient method for fee submissions. The

Commission also proposes a form to accompany the transfer, a draft of which is included as

Attachment C.

770-X-12-.05 Submission of Local Assessment Fees (Rule TNC-5)

(1) No later than 30 days after the end of each calendar quarter, the INC shall

submit to the Commission the total local assessment fee collected by the INC

during the calendar quarter, along with the INC Local Assessment Fee Report on

a form provided by the Commission.

(2) The local assessment fee collected by the INC shall be equal to one percent of

the total gross trip fare for all prearranged rides that originate in the state. The

DOCKET 32744- #14

local assessment fee may be submitted to the Commission via wire transfer/ACH

or via certified check.

(a) If the method of submission is a physical check, the payment shall be

accompanied by the TNC Local Assessment Fee Report.

(b) If the method of submission is wire transfer/ACH, the TNC Local

Assessment Fee Report shall be submitted electronically to an email address

provided by the Commission.

6. County and Municipal Boundaries. The Act requires the Commission to "prepare and

make available for public use Geographic Information System (GIS) data in the form of a file

showing the state's county and municipal boundaries." The Commission proposes the following

rule ("Rule TNC-6") that explains how the Commission will publish the GIS file , how the

Commission will notify the TNCs of updates, and how much time the TNC will have to

implement the updated information. The Commission anticipates that TNCs would be able to

retrieve the GIS file from the Commission website and implement any updates within 48 hours of

notification. The Commission specifically seeks comments on whether this delivery method is

efficient and whether the implementation time allows sufficient time for the TNC to update its

system while ensuring that the most accurate data is being used to determine the origination of its

rides.

770-X-12-.06 County and Municipal Boundaries (Rule TNC-6)

(1) The Commission will publish, on its website, a geographic information system

("GIS") file that shows the county and municipal boundaries as reflected by

DOCKET 32744- #15

information provided to the Commission by the municipalities as required by the

Act.

(2) The GIS file will be available to TNCs, TNC drivers, and the general public.

(3) TNCs shall use the boundaries indicated in the GIS file to determine where

each of its rides originated.

(4) The Commission will notify the TNCs, through an electronic mail address

provided by the TNC, when the GIS file has been updated.

(5) At the time of application, the TNC shall provide an electronic mail address to

be used for communication of notice of an updated GIS file.

(6) TN Cs shall have 48 hours from the time of notification by the Commission to

update its systems so that it can correctly identify the origination of its rides,

based on the boundary data provided in the most current GIS file.

7. Safety Inspections. The Act states that the Commission may adopt rules "providing for

safety inspections of TNC vehicles." The Commission proposes the following rule ("Rule TNC-

7") to establish safety inspections, to be accomplished before a TNC driver uses a vehicle to

provide TNC services and annually thereafter. The Commission specifically seeks comment on

whether the proposed safety inspection adequately addresses the safety concerns related to TNC

service; whether the mechanic certifications listed in the rule are appropriate for these safety

inspections; and how the records related to these safety inspections should be maintained. The

Commission also seeks comment as to whether a TNC should be required to create a standard

form that lists all items covered on the safety inspection to be completed by a certified mechanic

to document the inspection.

- - -------·---· - .

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770-X-12-.07 Safety Inspections (Rule TNC-7)

(I) Before a TNC driver first uses a vehicle to provide TNC services, and annually

thereafter, a vehicle providing TNC services shall be inspected to ensure

compliance with the requirements of this rule. The inspection shall be performed

by an American Advanced Technicians Institute (AA Tl) certified mechanic or a

National Institute for Automotive Service Excellence (ASE) certified mechanic.

(2) The safety inspection shall cover the following:

(a) Foot brakes

(b) Parking/emergency brakes

( c) Steering mechanism

(d) Windshield

( e) Rear window and other glass

(f) Windshield repairs

(g) Headlights

(h) Tail lights

(i) Turn indicator lights

U) Brake lights

(k) Front seat adjustment mechanism

(I) Doors, capability to open, close, and unlock

(m) Horn

(n) Speedometer

(o) Bwnpers

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(p) Muffler and exhaust system

( q) Interior and exterior rearview mirrors

(r) Safety belts and air bags for driver and passenger(s)

(s) Tire condition, including adequate tread depth

(3) The TNC shall maintain documentation that shows that the above safety

inspection was completed. These records shall be maintained for two years from

the date of the safety inspection.

(4) No TNC driver shall drive or cause to be driven any vehicle that is more than

10 years old. For the purposes of this rule, a vehicle will be considered to be l 0

years old on June 30th of the tenth year following the manufacturer's model year

of the vehicle, regardless of the purchase date or the date it was originally placed

into service.

8. TNC Trade Dress. The Act states that the Commission may adopt rules and requirements

for "a distinctive TNC emblem or signage, known as trade dress, to be displayed on the exterior

of a TNC vehicle." The Commission proposes the following rule ("Rule TNC-8") that requires

TNCs to establish a trade dress that is distinctive and easy for potential TNC riders to see and

identify. The Commission specifically seeks comments on whether the rules should require a

minimum size trade dress ; a specific location for the trade dress ; and requirements related to

recognition of the trade dress at night.

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770-X-12-.08 TNC Trade Dress (Rule TNC-8)

(1) A TNC shall establish a uniform logo, insignia, or decal, known as trade dress,

for use on all motor vehicles that are to be used by TNC drivers who logged in to

the TN C's digital network for the purpose of providing a prearranged ride.

(2) A copy of the TNC's current trade dress shall be kept on file with the

Commission.

(3) At all times that a TNC driver is logged into the TNC's digital network, the

vehicle being used by the TNC driver shall prominently display a TNC's

distinctive trade dress.

(4) At the time of application for a TNC permit, the TNC shall provide an

illustration of the TNC's distinctive trade dress, to include dimensions and

location of placement on the vehicles.

(5) The trade dress shall be readable during daylight hours at a distance of fifty

feet and reflective or illuminated to assist with recognition at night.

(6) The trade dress may be magnetic or removable in nature.

9. Inspection of TNC Records. In order to ensure compliance with the requirements of Section

14(a) and Section 10 of the Act, the Act states that the Commission may visually inspect a

random sample of individual trip records and individual TNC driver records . The Commission

proposes the following rule ("Rule TNC-9") that establishes a process to achieve a random

sample of these records for inspection. The Commission also seeks comments regarding the best

method to obtain a random sample of individual trip records and individual driver records. The

Commission seeks comments on whether a TNC should be required to identify each trip record

DOCKET 32744- #19

and driver with a unique number to facilitate the Commission's ability to randomly select certain

records. If the following proposed rule is unworkable, the Commission requests comments as to

why it is unworkable and an alternative method for the Commission to obtain random samples

for inspection.

770-X-12-.09 Inspection of TNC Records (Rule TNC-9)

(1) TN Cs shall maintain copies of all driver records required by Section 10 of the

Act for a period of two years.

(2) TNCs shall maintain the individual trip records required by Sections 8 and

14(a) of the Act for a period of two years.

(3) TNCs shall identify each trip with a unique trip identification number that

includes the date of the trip.

(4) Upon initiation of an inspection by the Commission, the TNC shall provide a

list of all trip numbers for the trips provided within the time period identified by

the Commission. As an alternative , if the trip identification numbers are created

sequentially by the date, the TNC may provide a range of trip identification

numbers for the trips provided within the time period identified by the

Commission.

(5) TNCs shall identify each TNC driver with a unique driver identification

number.

(6) Upon initiation of an inspection by the Commission, the TNC shall provide a

list of all driver identification numbers for all TNC drivers that provided a

prearranged ride within the time period identified by the Commission.

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10. Local Assessment Fee Audit. The Act states that the Commission "may request that a TNC

engage an independent third party auditor to verify the local assessment fees submitted [to the

Commission pursuant to the Act] are accurate." The Commission proposes the following rule

("Rule TNC-1 O") that requires supplemental information, in addition to a copy of the audit

report, which would provide the Commission with sufficient information to distribute any

recouped underpayments to the municipalities and/or counties. The Commission specifically

seeks comments on whether the Act gives it the authority to require the TNCs to provide this

supplemental information.

The Act states that, if the audit identifies any underpayments of over three percent, then

"the TNC shall remit the underpaid local assessment fees to the appropriate municipality or

county. " In light of the Commission's role in the collection and distribution of local assessment

fees as required by other parts of the Act, the Commission asserts that it is axiomatic that the

Commission must also be made aware of and be involved in the collection and distribution of

any underpayments. The Commission is specifically seeking comments on the provisions of

Rule TNC-10 which define the Commission's role in the collection and distribution of identified

underpayments of local assessment fees .

770-X-12-.10 Local Assessment Fee Audit (Rule TNC-10)

(1) Within 10 days of the Commission's request for a third party audit, the TNC

shall notify the Commission of the name of the certified public accounting firm

that will be conducting the audit.

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(2) Within 15 days of the completion of the third party audit, in addition to the

submission of a copy of the audit report as required by the Act, the TNC shall also

submit to the Commission:

(a) A file , in Microsoft Excel format, that details any local assessment fee

underpayment of over three percent as identified through the audit, detailing the

amounts underpaid for each municipality and/or county; and

(b) The total underpaid local assessment fees, submitted in the same

manner as described in Rule TNC-5 .

(3) After reviewing the audit report and the details of any underpayments, the

Commission will make any necessary fee distributions to the municipalities and/or

counties to meet the fee allocation requirements of the Act.

11. Investigation and Resolution of Complaints. Section 14 of the Act authorizes the

Commission to inspect certain records that are necessary to investigate and resolve complaints

against a TNC or a TNC driver. The Commission proposes the following rule ("Rule TNC-11 ")

which establishes the manner in which informal and formal complaints will be addressed by the

Commission.

As reflected, the informal complaint process is designed to expedite and encourage

resolution through Commission personnel who serve as an intermediary between the TNC/TNC

driver and the affected informal complainant. The Commission has traditionally had an

extremely high success rate with its informal complaint resolution procedures and specifically

incorporated them herein for that reason.

In circumstances where the informal complaint process does not yield satisfactory results,

DOCKET 32744- #22

affected parties, and in some cases the Commission, must have a more formal avenue to address

unresolved issues. Formal complainants entail more rigid legal requirements and are processed

pursuant to the general provisions of Title 37, Chapter 1 of the Alabama Code and the

Commission's Rules of Practice.

The proposed rule also establishes a notice requirement for any hearings conducted

related to any complaint proceedings established. The proposed rule further sets forth a standard

for evaluating petitions to intervene in those proceedings.

The Commission specifically seeks comments regarding whether the procedures proposed

ensure that affected parties have an effective mechanism to address legitimate complaints both

informally and formally, and whether the due process procedures proposed provide sufficient

protection for all party participants in complaint proceedings established by the Commission.

770-X-12-.11 Investigation/Resolution of Complaints (Rule TNC-11)

( 1) Informal Complaints

Any affected person may informally contact the Utility Enforcement Division of

the Alabama Public Service Commission by telephone, email or other means to

seek the assistance of Commission personnel in the resolution of issues with any

regulated aspect of the service provided by TN Cs or TNC drivers. The issues that

may be presented for resolution include, but are not limited to a TNC or TNC

driver's compliance with the provisions of the Act and the rules, regulations,

guidelines and procedures established by the Commission for purposes of

implementing the Act. In such instances, Commission personnel will attempt to

informally resolve any issues presented. The informal complaint process is

DOCKET 32744- #23

strongly encouraged by the Commission prior to the filing of more legally

stringent formal complaints which are governed pursuant to the provisions set

forth in Section (2) below.

(2) Formal Complaints

Upon a formal complaint made in writing in a manner compliant with Rule 9 of

the Commission's Rules of Practice, any affected person may set forth and allege

that a TNC or TNC driver has failed to comply with Act 2018-127 or the

associated rules and regulations of the Commission adopted for purposes of

implementing the Act. Upon the filing of such a formal complaint with the

Secretary of the APSC, the Commission may proceed to make such investigation

as it may deem necessary or appropriate pursuant to the guidelines set forth in

more detail below. The Commission may also proceed without such complaint to

make such investigation whenever it deems such action necessary or appropriate

for the public interest and may lodge a complaint against a TNC or the driver, so

long as proper notice is provided for any hearing conducted pursuant to Subpart

(4) of this rule.

(3) Complaints Filed by Affected Persons

A TNC or TNC driver against whom a formal complaint is filed must plead or

answer such complaint in writing no later than 30 days of the service of the

complaint upon the TNC or TNC driver. Following the proper service of a formal

complaint and an answer thereto, the Commission may proceed to establish a

public hearing concerning the matters in controversy. The Commission shall

r .

DOCKET 32744- #24

whenever possible provide the complainant, the TNC and/or the TNC driver 30

days' notice of the time and place when the hearing will be conducted, but in no

instance shall the Commission provide less than 10 days ' notice.

( 4) Investigations/Complaints Initiated by the Commission

In the event it is the Commission which lodges a formal complaint against a TNC

or TNC driver on its own motion, the Commission shall provide a written

statement of the alleged areas of deficiency or noncompliance supporting the

complaint upon the TNC or TNC driver at least 20 days prior to any public

hearing scheduled to address such matters.

( 5) Hearing Requirements

Unless otherwise specified by Act 2018-127 or the associated rules and

regulations of the Commission adopted to implement said Act, all public hearings

conducted by the Commission with respect to a formal complaint shall be

conducted pursuant to the Commission's Rules of Practice and the general

provisions governing hearings before the APSC set forth in Code § 3 7-1-83

through § 3 7-1-90. All parties shall be entitled to be heard through themselves or

their counsel and shall have process to enforce the attendance of the witnesses.

(6) Interventions in Hearings

Every person, firm, corporation, partnership, or organization affected thereby may

petition to intervene and become a party to any proceeding conducted by the

Commission pursuant to this rule.

DOCKET 32744- #25

(7) Remedial Actions/Penalty Provisions

If the Commission determines after investigation and any public hearing

conducted pursuant to this rule that a INC or INC driver has failed to comply

with the provisions of Act 2018-127 or an applicable rule, regulation or guideline

adopted by the Commission in its implementation of said Act, the Commission

may take any action consistent with Act 2018-127 deemed appropriate and

necessary. Such actions may include the suspension or revocation of a INC's

permit or the assessment of a civil penalty against a INC in accordance with

Section 15(a) of Act 2018-127. Likewise, the Commission may take any action

consistent with Act 2018-127 deemed necessary and appropriate concerning a

INC driver that has failed to comply with the provisions of Act 2018-127 and the

implementing rules, regulations and guidelines adopted by the Commission. Such

actions against INC drivers may include requiring a INC to suspend the INC

driver from operating on its digital network or the assessment of a civil penalty

against the INC driver in accordance with Section l S(b) of Act 2018-127.

(8) Right to Appeal Final Orders of the Commission

Any person, any INC, or any INC driver with party status to any proceeding

established by the Commission pursuant to this rule who is aggrieved by any final

order of the Commission with respect to any hearing before it shall have the right

of appeal of any final order of the Commission pursuant to the provisions of Code

of Alabama, 1975 § 37-1-120 through§ 37-1-124.

DOCKET 32744- #26

IT IS THEREFORE ORDERED BY THE COMMISSION, that a rulemaking proceeding

is initiated to consider the above-stated proposed rules regarding the Commission's regulation of

TNCs and TNC drivers.

IT IS FURTHER ORDERED BY THE COMMISSION, that the Commission will

consider comments from interested parties concerning the matters presented above provided that

said comments are properly filed with the Secretary of the Commission on or before the close of

business on April 13, 2018. All comments received will be posted on the Commission's website

at www.psc.alabama.gov.

IT IS FURTHER ORDERED BY THE COMMISSION, that the Commission will

consider reply comments from interested parties provided that said reply comments are properly

filed with the Secretary of the Commission on or before the close of business on May 4, 2018.

All reply comments will also be posted on the website.

IT IS FURTHER ORDERED BY THE COMMISSION, that jurisdiction in this cause is

hereby retained for the issuance of any further order or orders as may appear to be just and

reasonable in the premise.

IT IS FURTHER ORDERED, that this Order shall be effective as of the date hereof.

DOCKET 32744- #27

DONE at Montgomery, Alabama, this I~ 'f:!i. day of March, 2018.

ALABAMA PUBLIC SERVICE COMMISSION

Twinkl~. l;\ndress,, Cavanaugh, President I I •· ., _,// . / / ... - 1 ·vr· 1/'# .··1 / ''1/Jr/;·7 / .

I / " .... l/· ~ Jere°cy' H. Oden, Commissioner

(1ft Chris "Chip" Beeker, Jr. , Commissioner

ATTACHMENT A

APSC FORM TNC-1 (Transportation Network Company)

DOCKET NO.---­(Commission use only)

APPLICATION FOR TNC PERMIT Before the

ALABAMA PUBLIC SERVICE COMMISSION P.O. BOX 304260

MONTGOMERY, AL 36130

This Application should be typed or neatly printed, properly signed and sworn to, and one copy filed with the $700 application fee (cashier's check or money order) with the Alabama Public Service Commission.

Applicant understands that the filing of this application does not, in itself, constitute authority to operate; will submit such additional information in connection with this application as the Commission may require; and will comply with requirements of the Code of Alabama 1975, and the rules and regulations of the Commission made hereunder, as are applicable to the operations herein proposed.

SECTION I

Applicant ___________________________ _ (Legal name)

Doing Business as __________________________ _ (Trade name)

Business Address ---------------------------(Must be a physical address - cannot be a post office box)

(City) (State) (Zip Code)

Mailing Address _________________________ _ (May be a post office box)

(City) (State) (Zip Code)

Primary Contact __________________________ _ (Name and Position)

(City) (State) (Zip Code)

( ) ( )

(Phone Number) (Fax Number) (Email address)

----···-·--· - -·--- · . --- - ·-- ·-- --- - - ---------

SECTION II By signing this application, the Applicant, or a designative representative of the Applicant, swears of affirms that the Applicant will comply with the following:

1) TNC shall disclose to the rider the fare or fare calculation in its digital network. If the fare is not disclosed to the rider before the beginning of the prearranged ride, the rider shall have the option to receive an estimated fare before the beginning of the prearranged ride.

2) TNC's digital network shall display a picture of TNC driver, the first name of the TNC driver, and the make, model, and license plate number of the TN C's driver vehicle before the rider enters the TNC vehicle.

3) Within a reasonable period of time following the completion of a trip, a TNC shall transmit an electronic receipt to the rider that lists all of the following: the origin and destination of the trip; the total time and distance of the trip; the total fare paid; and the TNC driver's first name.

4) TNC shall complete all of the required statutory checks before allowing an individual to accept trip requests through that TNC's digital network as a driver.

5) TNC shall establish and enforce a zero-tolerance intoxicating substance policy for TNC drivers that prohibits any amount of intoxication of the driver while providing transportation network services.

6) TNC shall include on its website a notice concerning the TNC's zero tolerance substance policy and the means to make a complaint about a suspected violation of the policy.

7) Upon receipt of a rider compliant alleging a violation of the zero tolerance intoxicating substance policy, the TNC shall immediately suspend the TNC driver's access to the TNC's digital network and conduct an investigation into the reported incident. The suspension shall last the duration of the investigation.

8) The TNC shall adopt a policy of nondiscrimination against riders or potential riders who are protested by Title 7, Civil Rights Act of 1964, 42 U.S.C. 200e. et. Seq. or the Americans With Disabilities Act of 1990. TNC may not impose additional charges for providing services to individuals with physical disabilities because of those disabilities.

9) TNC shall maintain an agent for service of process in the State.

I 0) TNC shall maintain records as required by the Act.

SECTION III In support of this application, Applicant submits the required documents :

1) Articles of Incorporation or Organization filed with the Alabama Secretary of State. If a foreign corporation or LLC, attach registration with the Alabama Secretary of State

2) TNC's Nondiscrimination Policy

3) TNC's Zero Tolerance Intoxicating Substance Policy adopted in compliance with Section 11 of the Act, provided to INC drivers, including a link to TN C's website to facilitate complaints about a suspected violations of the policy

4) TNC's fare guidelines identifying the method the TNC proposes to use to calculate customer fares or the applicable rates for INC services

5) TN C' s Trade Dress with dimensions and location of placement on drivers ' vehicles

6) TNC's Record Retention Policy

7) TNC policy regarding periodic checks of TNC drivers

8) Certificate of insurance evidencing compliance with Chapter 7C of Title 32 of the Code of Alabama 1975

9) TNC's procedures for responding to requests from law enforcement

I 0) Name of agent for service of process in the state

OATH County of __________ _ State of ______ _ ____ _

Name of Affiant, being duly sworn/affirmed, states that he/she files this Application as (indicate whether owner, officer, or other authorized representative of Applicant) , that in such capacity, he/she is qualified and authorized to file and verify such Application; that he/she has carefully examined all the statements and matters contained in the Application, and that all such statements made and matters set forth herein are true and correct to the best of his/her knowledge, information, and belief and that he/she is a United States Citizen .

(Seal)

(Signature of Affiant) ----------------------­

Subscribed and sworn to before me, a Notary in and for said State and County above named.

Date: _________________ _

(Notary Public) _________________ _

My Commission Expires : ________________ _

---------- ---

ATTACHMENT B

APSC FORM TNC-2 (Transportation Network Company)

DOCKET NO.---­(Commission use only)

APPLICATION FOR RENEWAL OF TNC PERMIT Before the

ALABAMA PUBLIC SERVICE COMMISSION P.O. BOX 304260

MONTGOMERY, AL 36130

This Application for Renewal should be typed or neatly printed, properly signed and sworn to, and one copy filed with the $300 application fee ( cashier's check or money order) with the Alabama Public Service Commission.

Applicant understands that the filing of this application does not, in itself, constitute authority to operate; will submit such additional information in connection with this application as the Commission may require; and will comply with requirements of the Code of Alabama 1975, and the rules and regulations of the Commission made hereunder, as are applicable to the operations herein proposed.

SECTION I

Applicant ____________________________ _ (Legal name)

Doing Business as _________________________ _ (Trade name)

Business Address --------------------------(Must be a physical address - cannot be a post office box)

(City) (State) (Zip Code)

Mailing Address _________________________ _ (May be a post office box)

(City) (State) (Zip Code)

Primary Contact. _________________________ _ (Name and Position)

(City) (State) (Zip Code)

( ) ( )

(Phone Number) (Fax Number) (Email address)

--------- - -

SECTION II By signing this application, the Applicant, or a designative representative of the Applicant, swears of affirms that the Applicant will comply with the following :

I) TNC shall disclose to the rider the fare or fare calculation in its digital network. If the fare is not disclosed to the rider before the beginning of the prearranged ride, the rider shall have the option to receive an estimated fare before the beginning of the prearranged ride.

2) TN C' s digital network shall display a picture of TNC driver, the first name of the TNC driver, and the make, model , and license plate number of the TN C's driver vehicle before the rider enters the TNC vehicle.

3) Within a reasonable period of time following the completion of a trip, a TNC shall transmit an electronic receipt to the rider that lists all of the following: the origin and destination of the trip; the total time and distance of the trip; the total fare paid; and the TNC driver' s first name.

4) TNC shall complete all of the required statutory checks before allowing an individual to accept trip requests through that TNC's digital network as a driver.

5) TNC shall establish and enforce a zero-tolerance intoxicating substance policy for TNC drivers that prohibits any amount of intoxication of the driver while providing transportation network services.

6) TNC shall include on its website a notice concerning the TNC 's zero tolerance substance policy and the means to make a complaint about a suspected violation of the policy.

7) Upon receipt of a rider compliant alleging a violation of the zero tolerance intoxicating substance policy, the TNC shall immediately suspend the TNC driver ' s access to the TNC's digital network and conduct an investigation into the reported incident. The suspension shall last the duration of the investigation.

8) The TNC shall adopt a policy of nondiscrimination against riders or potential riders who are protested by Title . 7, Civil Rights Act of 1964, 42 U.S.C. 200e. et. Seq. or the Americans With Disabilities Act of 1990. TNC may not impose additional charges for providing services to individuals with physical disabilities because of those disabilities.

9) TNC shall maintain an agent for service of process in the State.

10) TNC shall maintain records as required by the Act.

-------------------- ··---------·-·- - -

SECTION III Submit all of documents listed below that have changed since initial TNC permit application:

1) Articles of Incorporation or Organization filed with the Alabama Secretary of State. If a foreign corporation or LLC, attach registration with the Alabama Secretary of State

2) TNC's Nondiscrimination Policy

3) TNC's Zero Tolerance Intoxicating Substance Policy adopted in compliance with Section 11 of the Act, provided to TNC drivers, including a link to TNC's website to facilitate complaints about a suspected violations of the policy

4) TNC's fare guidelines identifying the method the TNC proposes to use to calculate customer fares or the applicable rates for TNC services

5) TN C's Trade Dress with dimensions and location of placement on drivers' vehicles

6) TNC's Record Retention Policy

7) TNC policy regarding periodic checks of TNC drivers

8) Certificate of insurance evidencing compliance with Chapter 7C of Title 32 of the Code of Alabama 1975

9) TNC's procedures for responding to requests from law enforcement

I 0) Name of agent for service of process in the state

OATH County of __________ _ State of ------------

Name of Affiant, being duly sworn/affirmed, states that he/she files this Application as (indicate whether owner, officer, or other authorized representative of Applicant) that in such capacity, he/she is qualified and authorized to file and verify such Application; that he/she has carefully examined all the statements and matters contained in the Application, and that all such statements made and matters set forth herein are true and correct to the best of his/her knowledge, information, and belief and that he/she is a United States Citizen.

(Seal)

(Signature of Affiant) ---- ------------------­

Subscribed and sworn to before me, a Notary in and for said State and County above named.

Date:-------------------

(Notary Public) _________________ _

My Commission Expires: ________________ _

ATTACHMENT C

ALABAMA PUBLIC SERVICE COMMISSION

TNC LOCAL ASSESSMENT FEE REPORT

Entity Name: ---- --------------------------Contact: ___ ____________ Telephone No. : __________ _

Address: - ----- ----------- --------------City: State : Zip: -------------- - - - - ------ ------

Quarter/Year: _______ _

Total Gross Trip Fare: _ ________ Total Local Assessment Fee: _______ _

Check No.: Check Date: ----- -------- --- ----------

Wire/ ACH Reference #: Wire/ ACH Date: -----------

All checks, along with this accompanying report, should be mailed to :

Alabama Public Service Commission

Finance Section

PO Box 304260

Montgomery, AL 36130-4260

For Wire/ACH payments, this report should be emailed to :

psc.finance@psc.alabama.gov

ATTACHMENT B

TNC Rules

770-X-12-.01 Application and Scope (Rule TNC-1)

(1) These rules and regulations shall govern persons subject to Act 2018-127.

(2) If compliance with any of these rules causes unusual hardship, application may be made to the

Commission for modification of the rules or for temporary exemption from their requirements,

provided the TNC or TNC driver submits with such application a complete explanation of the

reason for the proposed exemption. No deviation from these rules shall be permitted without

written authorization granted by the Commission. The Commission cannot, however, authorize

deviation from the requirements of the Act.

(3) A TNC shall comply with all of the policies that it creates in order to comply with the

requirements of the Act or these rules. Any violation of these statutorily-required or Commission­

required policies will be addressed by the Commission in the same manner as a violation of the

requirements of the Act or Commission regulations.

770-X-12-.02 Definitions (Rule TNC-2)

(1) COMMISSIO The Public Service Commission.

(2) DIGITAL NETWORK. Any online-enabled application, software, website. or system offered

or utilized by a TNC that enables the prearrangement of a ride with a TNC driver.

(3) GROSS TRIP FARE. The sum of the base fare charge, distance charge, and time charge for a

complete trip at rates published on the TNC's website . The term does not include any additional

fees, including airport or venue fees. The term includes surge pricing.

ATTACHMENT B

( 4) PREARRANGED RIDE. The provision of transportation by a TNC driver to a TNC rider,

beginning when a TNC driver accepts a ride requested by a TNC rider through a digital network

controlled by a T C, continuing while the TNC driver transports the requesting TNC rider, and

ending when the last requesting TNC rider departs from the personal vehicle of the TNC driver.

A prearranged ride does not include transportation provided by any of the following pursuant to

the Alabama Motor Carrier Act, Chapter 3 of Title 37:

(a) A shared expense carpool or vanpool arrangement.

(b) A regional transportation company or licensed motor carrier.

(5) TNC. A transportation network company that is a corporation, partnership, sole proprietorship,

or other entity licensed and operating in this state that uses a digital network to connect a TNC

rider to a TNC driver who provides a prearranged ride. A TNC may not control, direct, or manage

the personal vehicle or the TNC driver who connects to its digital network, except where agreed

to by written contract.

(6) TNC DRIVER. An individual who meets both of the fo llowing criteria:

(a) Receives connections to potential riders and related services from a TNC in exchange

for payment of a fee to the TNC.

(b) Uses a personal vehicle to offer or provide a prearranged ride to a TNC rider upon

connection through a digital network controlled by a TNC and in exchange for compensation or

payment of a fee.

(7) TNC RIDER. An individual who uses the digital network of a TNC to connect with a TNC

driver who provides a prearranged ride to the TNC rider in the personal vehicle of the TNC driver

between points chosen by the TNC rider.

ATTACHMENT B

(8) TNC VEHICLE or PERSONAL VEHICLE. A vehicle that meets both of the following

criteria:

(a) Is used by a TNC driver to provide a prearranged ride and

(b) Is owned, leased, or otherwise authorized for use by a TNC driver.

770-X-12-.03 Permitting (Rule TNC-3)

( 1) The Commission shall issue a permit to an applicant that meets the following statutory

requirements:

( a) TNC shall disclose to the rider the fare or fare calculation in its digital network. If the

fare is not disclosed to the rider before the beginning of the prearranged ride, the rider shall have

the option to receive an estimated fare before the beginning of the prearranged ride.

(b) TN C's digital network shall display a picture of the TNC driver, the first name of the

TNC driver, and the make, model, and license plate number of the TNC driver's vehicle before the

rider enters the TNC vehicle. In the photo of the TNC driver displayed on the digital network, the

TNC driver must: be facing directly into the camera; be the only person in the photograph; be

clearly identifiable; show full face and top of shoulders; and not be wearing sunglasses or other

accessories that prevent clear identification.

( c) Within two hours following the completion of a trip, a TNC shall transmit an electronic

receipt to the rider that lists all of the following: the origin and destination of the trip; the total time

and distance of the trip ; the total fare paid; and the TNC driver's first name. The receipt transmit

period is tolled for any delays in receipt transmission caused by a TNC rider or any delivery system

issues beyond the reasonable control of the TNC. An electronic receipt may be sent via electronic

mail or made available through the TNC's digital network.

ATTACHMENT B

( d) TNC shall complete all of the required statutory checks before allowing an individual

to accept trip requests through that TN C's digital network as a driver. After allowing an individual

to accept trip requests through that TN C's digital network as a driver, a TNC shall annually screen

drivers for compliance with the requirements in Section 10 of the Act.

( e) TNC shall establish and enforce a zero tolerance intoxicating substance policy for TNC

drivers that prohibits any amount of intoxication of the driver while providing transportation

network services.

(f) TNC shall include on its website, in a prominent location, a notice concerning the TNC's

zero tolerance intoxicating substance policy and the means to make a complaint about a suspected

violation of the policy.

(g) Upon receipt of a rider complaint alleging a vio lation of the zero tolerance intoxicating

substance policy, the TNC shall immediately suspend the TNC driver's access to the TNC's digital

network and conduct an investigation into the reported incident. The suspension shall last the

duration of the investigation.

(h) The TNC's zero tolerance intoxicating substance policy shall include a description of

the corrective measures to be taken against a TNC driver if the TNC confirms that the TNC driver

has violated the terms of the zero tolerance intoxicating substance policy.

(i) The TNC shall adopt a policy of nondiscrimination against riders or potential riders who

are protected by Title 7, Civil Rights Act of 1964, 42 U.S.C. 2000e. et. seq. or the Americans With

Disabilities Act of 1990. TNC may not impose additional charges for providing services to

individuals with physical disabilities because of those disabilities.

G) TNC shall maintain an agent for service of process in the State.

(k) TNC shall maintain records as required by the Act.

ATTACHMENT B

(2) In order to obtain a permit to operate a TNC, a person shall submit an application to the

Commission, on the form prescribed by the Commission, which includes a sworn statement that

the applicant will comply with all of the statutory requirements listed above in Subpart (1 ).

(3) An applicant shall submit the following documents with its application:

(a) Application fee of $700

(b) Articles of Incorporation or Articles of Organization

( c) Nondiscrimination Policy

(d) Zero Tolerance Intoxicating Substance Policy

(e) Illustration of TN C's trade dress

(t) Method that TNC will use to calculate customer fares

(g) TNC's Record Retention Policy

(h) TNC policy regarding periodic checks of T C drivers to ensure that the TNC drivers

using its digital network continue to meet the initial standards for TNC drivers described in the

Act

(i) Certificate of Insurance

G) TNC's procedures for responding to requests from law enforcement

(k) Name of agent for service of process in the state

(1) Copy of TNC Vehicle Safety Inspection Form

( 4) Following the submission of a complete permit application, a public hearing will be held prior

to the issuance of a TNC permit.

(5) A person must have a valid and current permit to operate as a T C.

(6) The TNC permit will be valid until June 30th fo llowing the date that it was issued.

ATTACHMENT B

(7) In order to renew a INC permit, a INC will submit a permit renewal form, on a form prescribed

by the Commission, and a renewal fee of $300 on or before the close of business on July 1st. Any

permit renewal received after July 1st will incur a late fee of $100 per day.

(8) The Commission may revoke a INC permit, effective 30 days from the date of notice, if a INC

fails to submit a completed annual permit renewal form and/or renewal fee on or before the close

of business on July 1. Once a permit is revoked, to regain the permit, a person must submit a new

application for a INC permit with an application fee of $700.

(9) A INC shall comply with all of the terms of its permits . A TN C's failure to comply with the

terms of its permit will be addressed by the Commission in the same manner as a violation of the

Act, the INC Rules, or a Commission order.

770-X-12-.04 Reporting (Rule TNC-4)

(1) No later than 30 days after the end of each calendar quarter, a INC shall submit a rep01i to the

Commission that lists the percentage of the gross trip fare that originated in each municipality

during the reporting period.

(a) The INC shall submit the report to the Commission, in a spreadsheet approved by the

Commission, listing each municipality in which a ride originated and providing the total gross trip

fare and the total local assessment fee collected during the reporting period for rides originating in

each municipality.

(b) The INC shall submit the report electronically via an email address to be provided by

the Commission or through an alternative method approved by the Commission as long as the

INC bears any additional costs related to the alternative transmission method.

ATTACHMENT B

(2) No later than 30 days after the end of each calendar qumier, a TNC shall submit a report to the

Commission that lists the percentage of the gross trip fare that originated in the unincorporated

portion of each county during the reporting period.

(a) The TNC shall submit the report to the Commission, in a spreadsheet approved by the

Commission, listing each county in which a ride originated and providing the total gross trip fare

and the total local assessment fee collected during the reporting period for rides originating in the

unincorporated portion of each county.

(b) The TNC shall submit the report electronically via an email address to be provided by

the Commission or through an alternative method approved by the Commission as long as the

TNC bears any additional costs related to the alternative transmission method.

(3) For the purpose of the TNC Rules, the calendar quarters are defined as follows:

(a) 1st Quarter: January 1st through March 31st

(b) 2nd Quarter: April 1st through June 30th

(c) 3rd Quarter: July 1st through September 30th

( d) 4th Quarter: October 1st through December 31st

770-X-12-.05 Submission of Local Assessment Fees (Rule TNC-5)

(1) No later than 30 days after the end of each calendar quarter, the TNC shall submit to the

Commission the total local assessment fee collected by the TNC during the calendar quarter, along

with the TNC Local Assessment Fee Report on a form provided by the Commission.

(2) The local assessment fee collected by the TNC shall be equal to one percent of the total gross

trip fare for all prearranged rides that originate in the state. The local assessment fee may be

submitted to the Commission via wire transfer/ ACH or via certified check.

ATTACHMENT B

(a) If the method of submission is a physical check, the payment shall be accompanied by

the TNC Local Assessment Fee Report.

(b) If the method of submission is wire transfer/ACH, the TNC Local Assessment Fee

Report shall be submitted electronically to an electronic mail address provided by the Commission

or through an alternative method approved by the Commission as long as the TNC bears any

additional costs related to the alternative transmission method.

770-X-12-.06 County and Municipal Boundaries (Rule TNC-6)

(1) The Commission will publish, on its website, a geographic information system ("GIS ") file that

shows the county and municipal boundaries as reflected by information provided to the

Commission by the municipalities as required by the Act.

(2) The GIS file wi ll be available to TNCs, TNC drivers, and the general public.

(3) TNCs shall use the boundaries indicated in the GIS file to determine where each of its rides

originated.

(4) The Commission will notify the T Cs, through an electronic mail address provided by the

TNC, when the GIS file has been updated.

(5) At the time of application, the TNC shall provide an electronic mail address to be used for

communication of notice of an updated GIS fi le.

(6) TN Cs shall have seven calendar days from the time of notification by the Commission to update

its systems so that it can correctly identify the origination of its rides, based on the boundary data

provided in the most current GIS file. T Cs shall notify the Commission of the exact date and

time of the system update and shall use the data provided in the most current GIS file for all rides

conducted after the system update.

ATTACHMENT B

770-X-12-.07 Safety Inspections (Rule TNC-7)

(1) Before a TNC driver first uses a vehicle to provide TNC services, and annually thereafter, a

vehicle providing TNC services shall be inspected to ensure compliance with the requirements of

this rule. The inspection shall be performed by an American Advanced Technicians Institute

(AA TI) certified mechanic or a National Institute for Automotive Service Excellence (ASE)

certified mechanic or by a mechanic that is under the supervision of an AA TI or ASE certified

mechanic.

(2) The safety inspection shall cover the following:

(a) Foot brakes

(b) Parking/emergency brakes

( c) Steering mechanism

( d) Windshield

( e) Rear window and other glass

(f) Windshield wipers

(g) Headlights

(h) Tail lights

(i) Tum indicator lights

G) Brake lights

(k) Front seat adjustment mechanism

(1) Doors, capabi lity to open, close, and unlock

(m) Hom

(n) Speedometer

(o) Bumpers

ATTACHME TB

(p) Muffler and exhaust system

( q) Interior and exterior rearview mirrors

(r) Safety belts and air bags for driver and passenger(s)

(s) Tire condition, including adequate tread depth

(t) Functioning heat and air conditioning

(3) The TNC shall maintain documentation that shows that the above safety inspection was

completed and who performed and/or supervised the inspection. These records shall be maintained

for two years from the date of the safety inspection and produced as part of the driver records

during an annual inspection.

( 4) No TNC driver shall drive or cause to be driven any vehicle that is more than 15 years old. For

the purposes of this rule, a vehicle will be considered to be 15 years old on June 30th of the fifteenth

year following the manufacturer's model year of the vehicle, regardless of the purchase date or the

date it was originally placed into service.

770-X-12-.08 TNC Trade Dress (Rule TNC-8)

(1) A TNC shall establish a uniform logo, insignia, or decal, known as trade dress, for use on all

motor vehicles that are to be used by TNC drivers who log in to the TNC's digital network for the

purpose of providing a prearranged ride.

(2) A copy of the TN C's current trade dress shall be kept on file with the Commission.

(3) At all times that a TNC driver is logged into the TNC's digital network, the vehicle being used

by the TNC driver shall prominently display a TNC's distinctive trade dress.

(4) At the time of application for a TNC permit, the TNC shall provide an illustration of the TNC's

distinctive trade dress, to include dimensions and location of placement on the vehicles.

ATTACHMENTB

(5) The trade dress shall be readable during daylight hours at a distance of fifty feet and reflective

or illuminated to assist with recognition at night.

(6) The trade dress may be magnetic or removable in nature.

770-X-12-.09 Inspection of TNC Records (Rule TNC-9)

(1) TN Cs shall maintain copies of all driver records required by Section 10 of the Act for a period

of two years.

(2) TNCs shall maintain records related to the investigation of possible violations of the zero

tolerance intoxicating substance policy for a period of two years following the close of the

investigation.

(3) TNCs shall maintain the individual trip records required by Section 14(a) of the Act for a period

of two years, including the required electronic receipt information listed in Section 8 of the Act.

(4) TNCs shall identify each trip with a unique trip identification number that includes the date on

which the trip began.

(5) Upon initiation of an inspection by the Commission, the TNC shall provide a list of all trip

numbers for the trips provided within the time period identified by the Commission. As an

alternative, if the trip identification numbers are created sequentially by the date, the TNC may

provide a range of trip identification numbers for the trips provided within the time period

identified by the Commission.

(6) TNCs shall identify each TNC driver with a unique driver identification number.

(7) Upon initiation of an inspection by the Commission, the TNC shall provide a list of all driver

identification numbers for all TNC drivers that provided a prearranged ride within the time period

identified by the Commission.

ATTACHMENT B

770-X-12-.10 Local Assessment Fee Audit (Rule TNC-10)

(1) Within 30 calendar days of the Commission's request for a third party audit, the TNC shall

notify the Commission of the name of the certified public accounting firm that will be conducting

the audit.

(2) Within 15 days of the completion of the third party audit, in addition to the submission of a

copy of the audit report as required by the Act, the TNC shall also submit to the Commission:

(a) A file , in a spreadsheet approved by the Commission, that details any local assessment

fee underpayment of over three percent as identified through the audit, detailing the amounts

underpaid for each municipality and/or county; and

(b) The total underpaid local assessment fees, submitted in the same manner as described

in Rule TNC-5.

(3) After reviewing the audit report and the details of any underpayments, the Commission will

make any necessary fee distributions to the municipalities and/or counties to meet the fee

allocation requirements of the Act.

770-X-12-.11 Investigation/Resolution of Complaints (Rule TNC-11)

( 1) Informal Complaints

Any affected person may informally contact the Utility Enforcement Division of the Alabama

Public Service Commission by telephone, email or other means to seek the assistance of

Commission personnel in the resolution of issues with any regulated aspect of the service provided

by TNCs or TNC drivers. The issues that may be presented for resolution include, but are not

limited to a TNC or TNC driver' s compliance with the provisions of the Act and the rules,

ATTACHMENT B

regulations, guidelines and procedures established by the Commission for purposes of

implementing the Act. In such instances, Commission personnel will attempt to informally resolve

any issues presented. The informal complaint process is strongly encouraged by the Commission

prior to the filing of more legally stringent formal complaints which are governed pursuant to the

provisions set forth in Section (2) below.

(2) Formal Complaints

Upon a formal complaint made in writing in a manner compliant with Rule 9 of the Commission's

Rules of Practice, any affected person may set forth and allege that a TNC or TNC driver has failed

to comply with Act 2018-127 or the associated rules and regulations of the Commission adopted

for purposes of implementing the Act. Upon the filing of such a formal complaint with the

Secretary of the APSC, the Commission may proceed to make such investigation as it may deem

necessary or appropriate pursuant to the guidelines set forth in more detail below. The

Commission may also proceed without such complaint to make such investigation whenever it

deems such action necessary or appropriate for the public interest and may lodge a complaint

against a TNC or the driver, so long as proper notice is provided for any hearing conducted

pursuant to Subpart ( 4) of this rule.

(3) Complaints Filed by Affected Persons

A TNC or TNC driver against whom a formal complaint is filed must plead or answer such

complaint in writing no later than 30 days of the service of the complaint upon the TNC or TNC

driver. Following the proper service of a formal complaint and an answer thereto , the Commission

may proceed to establish a public hearing concerning the matters in controversy. The Commission

shall whenever possible provide the complainant, the TNC and/or the TNC driver 30 days ' notice

ATTACHMENT B

of the time and place when the hearing will be conducted, but in no instance shall the Commission

provide less than 10 days ' notice.

( 4) Investigations/Complaints Initiated by the Commission

In the event it is the Commission which lodges a formal complaint against a T C or TNC driver

on its own motion, the Commission shall provide a written statement of the alleged areas of

deficiency or noncompliance supporting the complaint upon the T C or T C driver at least 20

days prior to any public hearing scheduled to address such matters.

(5) Hearing Requirements

Unless otherwise specified by Act 2018-127 or the associated rules and regulations of the

Commission adopted to implement said Act, all public hearings conducted by the Commission

with respect to a formal complaint shall be conducted pursuant to the Commission's Rules of

Practice and the general provisions governing hearings before the APSC set forth in Code § 3 7-1-

83 through§ 37-1-90. All parties shall be entitled to be heard through themselves or their counsel

and shall have process to enforce the attendance of the witnesses.

(6) Interventions in Hearings

Every person, firm, corporation, partnership, or organization affected thereby may petition to

intervene and become a party to any proceeding conducted by the Commission pursuant to this

rule.

(7) Remedial Actions/Penalty Provisions

If the Commission determines after investigation and any public hearing conducted pursuant to

this rule that a TNC or TNC driver has failed to comply with the provisions of Act 2018-127 or an

applicable rule, regulation or guideline adopted by the Commission in its implementation of said

Act, the Commission may take any action consistent with Act 2018-127 deemed appropriate and

ATTACHMENT B

necessary. Such actions may include the suspension or revocation of a TNC's permit or the

assessment of a civil penalty against a TNC in accordance with Section 15(a) of Act 2018-127.

Likewise, the Commission may take any action consistent with Act 2018-1 27 deemed necessary

and appropriate concerning a TNC driver that has failed to comply with the provisions of Act

2018-127 and the implementing rules, regulations and guidelines adopted by the Commission.

Such actions against TNC drivers may include requiring a TNC to suspend the TNC driver from

operating on its digital network or the assessment of a civil penalty against the TNC driver in

accordance with Section 15(b) of Act 2018-1 27.

(8) Right to Appeal Final Orders of the Commission

Any person, any TNC, or any TNC driver with party status to any proceeding establi shed by the

Commission pursuant to this rule who is aggrieved by any final order of the Commission with

respect to any hearing before it shall have the right of appeal of any final order of the Commission

pursuant to the provisions of Code of Alabama, 1975 § 37-1-1 20 through§ 37-1-124.

ATTACHMENT C

APSC FORM TNC-1 (Transportation Network Company)

DOCKET NO. ___ _ (Commission use only)

APPLICATION FOR TNC PERMIT Before the

ALABAMA PUBLIC SERVICE COMMISSION P.O. BOX 304260

MONTGOMERY, AL 36130

This Application should be typed or neatly printed, properly signed and sworn to, and filed with the $700 application fee (cashier's check, money order, or electronic funds transfer) with the Alabama Public Service Commission.

Applicant understands that the filing of this application does not, in itself, constitute authority to operate; will submit such additional information in connection with this application as the Commission may require; and will comply with requirements of the Code of Alabama 1975, and the rules and regulations of the Commission as applicable to TN Cs.

SECTION I

Applicant _______ _ _ _ ___________________ _ (Legal name)

Doing Business as ___________________________ _ (Trade name)

Business Address ----- - - ---------------------(Must be a phys ical address - cannot be a post office box)

(City) (State) (Zip Code)

Mailing Address _ _________________________ _ (May be a post offi ce box)

(City) (S tate) (Zip Code)

Primary Contact. ____________________________ _ (Name and Pos ition)

(City) (State) (Z ip Code)

(Phone Number) (Fax Number) (E-mail Address)

SECTION II By signing this application, the Applicant, or a designated representative of the Applicant, swears of affirms that the Applicant has or will comply with the following:

1) TNC shall disclose to the rider the fare or fare calculation in its digital network. If the fare is not disclosed to the rider before the beginning of the prearranged ride, the rider shall have the option to receive an estimated fare before the beginning of the prearranged ride.

2) TN C's digital network shall display a picture of TNC driver, the first name of the TNC driver, and the make, model, and license plate number of the TN C's driver vehicle before the rider enters the TNC vehicle.

3) Within a reasonable period of time following the completion of a trip, a TNC shall transmit an electronic receipt to the rider that lists all of the following: the origin and destination of the trip; the total time and distance of the trip; the total fare paid; and the TNC driver's first name.

4) TNC shall complete all of the required statutory checks before allowing an individual to accept trip requests through that TNC' s digital network as a driver.

5) TNC has established and shall enforce a zero-tolerance intoxicating substance policy for TNC drivers that prohibits any amount of intoxication of the driver while providing transportation network services.

6) TNC shall include on its website, in a prominent location, a notice concerning the TNC's zero tolerance substance policy and the means to make a complaint about a suspected violation of the policy.

7) Upon receipt of a rider compliant alleging a violation of the zero tolerance intoxicating substance policy, the TNC shall immediately suspend the TNC driver' s access to the TNC's digital network and conduct an investigation into the reported incident. The suspension shall last the duration of the investigation.

8) The TNC has adopted a policy of nondiscrimination against riders or potential riders who are protested by Title 7, Civil Rights Act of 1964, 42 U.S .C. 200e. et. Seq. or the Americans With Disabilities Act of 1990. TNC may not impose additional charges for providing services to individuals with physical disabilities because of those disabilities.

9) TNC shall maintain an agent for service of process in the State.

10) TNC shall maintain records as required by the Act.

SECTION III In support of this application, Applicant submits the required documents:

1) Articles of Incorporation or Organization filed with the Alabama Secretary of State. If a foreign corporation or LLC, attach registration with the Alabama Secretary of State

2) TNC's Nondiscrimination Policy

3) TNC's Zero Tolerance Intoxicating Substance Policy adopted in compliance with Section 11 of the Act, provided to TNC drivers, including a link to TN C' s website to facilitate complaints about a suspected violations of the policy

4) TNC's fare guidelines identifying the method the TNC proposes to use to calculate customer fares or the applicable rates for TNC services

5) TN C's Trade Dress with dimensions and location of placement on drivers ' vehicles

6) TNC's Record Retention Policy

7) TNC policy regarding periodic checks of TNC drivers

8) Certificate of insurance evidencing compliance with Chapter 7C of Title 32 of the Code of Alabama 1975

9) TNC's procedures for responding to requests from law enforcement

10) Name of agent for service of process in the state

11) Copy ofTNC Vehicle Safety Inspection Form

OATH County of __________ _ State of ___________ _

Name of Affiant, being duly sworn/affirmed, states that he/she files this Application as (indicate whether owner, officer, or other authorized representative of Applicant) , that in such capacity, he/she is qualified and authorized to file and verify such Application; that he/she has carefully examined all the statements and matters contained in the Application, and that all such statements made and matters set forth herein are true and correct to the best of his/her knowledge, information, and belief and that he/she is a United States Citizen.

(Signature of Affiant) _____ _

Subscribed and sworn to before me, a Notary in and for said State and County above named.

Date: -------------------

(Notary Public) __________________ _ (Seal)

My Commission Expires : _________________ _

ATTACHMENT D

APSC FORM TNC-2 (Transportation Network Company)

DOCKET NO.---­(Commission use only)

APPLICATION FOR RENEW AL OF TNC PERMIT Before the

ALABAMA PUBLIC SERVICE COMMISSION P.O. BOX 304260

MONTGOMERY, AL 36130

This Application for Renewal should be typed or neatly printed, properly signed and sworn to, and filed with the $300 application fee ( cashier's check, money order, or electronic funds transfer) with the Alabama Public Service Commission.

Applicant understands that the filing of this application does not, in itself, constitute authority to operate; will submit such additional information in connection with this application as the Commission may require ; and will comply with requirements of the Code of Alabama 1975, and the rules and regulations of the Commission as applicable to TN Cs.

SECTION I

Applicant _____________ ________________ _ (Legal name)

Doing Business as ___________________________ _ (Trade name)

Business Address ----------------------------(M ust be a phys ical address - cannot be a post office box)

(City) (State) (Zip Code)

Mailing Address __________________________ _ (May be a post office box)

(City) (S tate) (Zip Code)

Primary Contact. ___________________________ _ (Name and Position)

(City) (Slate) (Zip Code)

(Phone Number) (Fax Number) (E-mail Address)

SECTION II By signing this application, the Applicant, or a designated representative of the Applicant, swears of affirms that the Applicant has or will comply with the following :

1) TNC shall disclose to the rider the fare or fare calculation in its digital network. If the fare is not disclosed to the rider before the beginning of the prearranged ride, the rider shall have the option to receive an estimated fare before the beginning of the prearranged ride.

2) TNC' s digital network shall di splay a picture of TNC driver, the first name of the TNC driver, and the make, model , and license plate number of the TNC's driver vehicle before the rider enters the TNC vehicle.

3) Within a reasonable period of time following the completion of a trip, a TNC shall transmit an electronic receipt to the rider that lists all of the following: the origin and destination of the trip; the total time and distance of the trip; the total fare paid; and the TNC driver's first name.

4) TNC shall complete all of the required statutory checks before allowing an individual to accept trip requests through that TNC's digital network as a driver.

5) TNC has established and shall enforce a zero-tolerance intoxicating substance policy for TNC drivers that prohibits any amount of intoxication of the driver while providing transportation network services.

6) TNC shall include on its website, in a prominent location, a notice concerning the TNC 's zero tolerance substance policy and the means to make a complaint about a suspected violation of the policy.

7) Upon receipt of a rider compliant alleging a violation of the zero tolerance intoxicating substance policy, the TNC shall immediately suspend the TNC driver's access to the TNC' s digital network and conduct an investigation into the reported incident. The suspension shall last the duration of the investigation.

8) The TNC has adopted a policy of nondiscrimination against riders or potential riders who are protested by Title 7, Civil Rights Act of 1964, 42 U.S.C. 200e. et. Seq. or the Americans With Disabilities Act of 1990. TNC may not impose additional charges for providing services to individuals with physical disabilities because of those disabilities.

9) TNC shall maintain an agent for service of process in the State.

10) TNC shall maintain records as required by the Act.

SECTION III Submit all documents listed below that have changed since initial TNC permit application:

1) Articles of Incorporation or Organization filed with the Alabama Secretary of State. If a foreign corporation or LLC, attach registration with the Alabama Secretary of State

2) TNC's Nondiscrimination Policy

3) TNC's Zero Tolerance Intoxicating Substance Policy adopted in compliance with Section 11 of the Act, provided to TNC drivers, including a link to TN C's website to facilitate complaints about a suspected violations of the policy

4) TNC' s fare guidelines identifying the method the TNC proposes to use to calculate customer fares or the applicable rates for TNC services

5) TN C's Trade Dress with dimensions and location of placement on drivers' vehicles

6) TNC' s Record Retention Policy

7) TNC policy regarding periodic checks of TNC drivers

8) Certificate of insurance evidencing compliance with Chapter 7C of Title 32 of the Code of Alabama 1975

9) TNC's procedures for responding to requests from law enforcement

10) Name of agent for service of process in the state

11 ) Copy of TNC Vehicle Safety lnspection Form

OATH County of __________ _ State of ------------

Name of Affiant, being duly sworn/affirmed, states that he/she files this Application as (indicate whether owner, officer, or other authorized representative of Applicant) , that in such capacity, he/she is qualified and authorized to file and verify such Application ; that he/she has carefully examined all the statements and matters contained in the Application, and that all such statements made and matters set forth herein are true and correct to the best of his/her knowledge, information, and belief and that he/she is a United States Citizen.

(S ignature of Affiant) _______________________ _

Subscribed and sworn to before me, a Notary in and for said State and County above named.

Date: __________________ _

(Notary Public) __________________ _ (Seal)

My Commission Expires : _________________ _

ATTACHMENT E

ALABAMA PUBLIC SERVICE COMMISSION

TNC LOCAL ASSESSMENT FEE REPORT

Entity Name: -------------------------------

Contact: ________________ Telephone No. : __________ _

Address : --------------------------------

City: State: Zip: ---------------- ----- - -- ------

Quarter/Year: _ ______ _

Total Gross Trip Fare: __________ Total Local Assessment Fee: _______ _

Check No. : Check Date : -------------- --------------

Wire/ ACH Reference #: Wire/ ACH Date: -----------

All checks, along with thi s accompanying report, should be mailed to:

Alabama Public Service Commission

Finance Section

PO Box 304260

Montgomery, AL 36130-4260

For Wire/ACH payments, this report should be emailed to:

psc.finance@psc.alabama.gov

ATTACHMENT F

TNC DRIVER RESTRICTIONS

A TNC driver shall not use a digital network or provide TNC prearranged rides for more than 12 hours within a 24-hour period.