A.R.S. tit. 28 ch. 30 — Arizona Revised Statutes Title 28 Chapter 30 — For-Hire Transportation

28-9501. Definitions In this chapter, unless the context otherwise requires: 1. "Taxi meter" means a device that automatically calculates at a predetermined rate the charge for the hire of a vehicle and that indicates the charge. 2. "Vehicle for hire" means a taxi, livery vehicle or limousine. 3. "Vehicle for hire company" means a company that offers local transportation through use of a taxi, livery vehicle or limousine or a combination of taxis, livery vehicles or limousines. 28-9502. Powers and duties A. The department shall adopt any rules necessary to carry out this chapter and adopt reasonable rules for the enforcement of this chapter. These rules have the force and effect of law and shall be adopted pursuant to title 41, chapter 6. B. The department may: 1. Investigate complaints made to the department concerning violations of this chapter and, on its own initiative, conduct investigations it deems appropriate in order to develop information relating to prevailing procedures for taxi meter rate determination and possible violations of this chapter and to promote accuracy in the determination and representation of quantity in taxi meter rates. 2. Inspect and test taxi meters by a random systematic method determined by the director or in response to a complaint by the public to determine whether the taxi meters meet the requirements prescribed by the department by rule. 3. Apply to any court of competent jurisdiction for a temporary or permanent injunction restraining any person from violating this chapter. 4. Subject to title 41, chapter 4, article 4, employ such personnel as needed to assist in administering this chapter. C. During the course of an investigation or an enforcement action by the department, information regarding the complainant is confidential and is exempt from title 39, chapter 1 unless the complainant authorizes the information to be public. 28-9503. Vehicle for hire company permits; fees; violation; classification A. A vehicle for hire company may not operate in this state unless the vehicle for hire company is issued a permit by the department. The vehicle for hire company may apply to the department on forms prescribed by the department. The permit is valid for three years. The department shall charge and collect an application fee of twenty-four dollars per vehicle that is used as a taxi by the vehicle for hire company at the time of application, not to exceed a total of one thousand dollars per applicant. B. The department shall issue a permit to an applicant that meets the requirements of this article. C. A vehicle for hire company shall maintain an agent for service of process in this state. D. If a fare is based on time or mileage or both time and mileage, a taxi shall have a taxi meter, except that if the service offered by the taxi is a prearranged ground transportation service as prescribed in section 28-141 for a predetermined fare, the taxi is not required to use the taxi meter. E. The department shall revoke a permit if the vehicle for hire company fails to maintain the requirements for either of the following: 1. Motor vehicle licensing as prescribed by the department. 2. Motor vehicle insurance as prescribed by section 28-4033. F. A vehicle for hire shall have a copy of the permit issued to the vehicle for hire company under this chapter inside the vehicle at all times. G. A taxi that is issued a permit by the department and that offers local transportation for a fare determined on the basis of the distance traveled or prearranged ground transportation service as prescribed in section 28-141 for a predetermined fare is not required to have an additional permit as a livery vehicle. H. A person or the person's agent who knowingly files with the department any notice, statement or other document required under this section that is false or that contains any material misstatement of fact is guilty of a class 2 misdemeanor. 28-9504. Fees to general fund The director shall deposit, pursuant to sections 35-146 and 35-147, all fees collected pursuant to this chapter in the state general fund. 28-9505. Meters; duplicate receipts A. Every taxi that has a charge or fare based on time or mileage or both time and mileage shall have a taxi meter. B. The taxi meter shall be visible to the passengers of a taxi. C. If a taxi has the capability of producing a duplicate receipt, the driver shall print the duplicate receipt and provide the duplicate receipt to the passenger paying the fare. D. A taxi meter is not required to be used if the taxi is offering prearranged ground transportation service as defined in section 28-141 for a predetermined fare. 28-9506. Taxi and livery vehicle signage A. A taxi or livery vehicle shall display all of the following information either on an interior sign that is readily visible and that is either in a print or an electronic format or on a digital network or software application: 1. The permittee's business name and address. 2. An accurate representation of all fares and the fare computation method. 3. The driver's name. B. At a minimum, a taxi is required to display readily visible exterior trade dress as defined in section 28-9551 that contains the word "taxi" or "cab". 28-9507. Vehicles for hire; criminal background checks; vehicle safety records; zero-tolerance policy; drug and alcohol use by driver; passenger complaints A. A vehicle for hire company that is issued a permit by the department shall have available for inspection at all times by the department written evidence of a criminal background check conducted for any driver operating a vehicle for hire for the vehicle for hire company, whether as an employee or lessee. The criminal background check shall be completed before the driver is engaged as an employee or lessee. If the driver was convicted of an offense that would require the driver to register pursuant to section 13-3821, the driver may not be engaged as an employee or a lessee of a vehicle for hire company. B. A vehicle for hire company that is issued a permit by the department shall require that all of the company's vehicles for hire that are used to provide passenger transportation meet state vehicle safety and emissions standards for private vehicles and shall require the vehicles for hire to have, at a minimum, an annual brake and tire inspection that is performed by a qualified party. The vehicle for hire company shall maintain vehicle safety and emissions inspection records for at least two years and make the records available to the department on request. C. A vehicle for hire company shall implement a zero-tolerance policy on the use of drugs and alcohol while a vehicle for hire driver is providing passenger transportation or is available to provide passenger transportation. The vehicle for hire company shall provide notice of this policy on its website or in the vehicle for hire, including procedures to file a complaint about a driver with whom a passenger was matched and who the passenger reasonably suspects was under the influence of drugs or alcohol during the course of the passenger transportation. D. On receipt of a passenger complaint alleging a violation of the zero-tolerance policy, the vehicle for hire company shall do both of the following: 1. Immediately suspend the vehicle for hire driver's access to the company's vehicle for hire. 2. Conduct an investigation into the filed complaint. The suspension shall last the duration of the investigation. E. If the vehicle for hire company's investigation confirms that the driver has violated the policy required by subsection C of this section, the vehicle for hire company shall permanently prohibit the driver's access to the company's vehicles for hire. The vehicle for hire company shall maintain enforcement records for at least two years after the date a passenger complaint is received by the company and make the records available to the department on request. 28-9521. Unlawful use of vehicle for hire; violation; classification A. When any vehicle for hire specified in this chapter is in commercial use and a valid permit has not been procured by the vehicle for hire company, the department, after giving notice of the permit requirements to the vehicle for hire company, shall prohibit the further commercial use of the vehicle until the proper permit has been issued. B. The owner of any business who has not applied for and has not been issued a permit by the department for the right to do business involving the use of a vehicle for hire and who is found offering vehicle for hire services to a consumer is guilty of a class 2 misdemeanor. C. If a vehicle for hire is used contrary to any provision of this chapter or any rule adopted pursuant to this chapter, the department, in addition to any other penalty imposed by this chapter, shall suspend, revoke or refuse to renew the permit of the vehicle for hire company. 28-9522. Revocation or suspension of permits; procedure; judicial review A. Except as otherwise provided by this section, any proceeding to revoke or suspend a permit issued pursuant to this chapter shall be conducted in accordance with title 41, chapter 6, article 10. B. The director may initiate proceedings for revocation or suspension of a permit issued pursuant to this chapter on the director's own motion or on a verified complaint for noncompliance with or a violation of this chapter or of any rule adopted pursuant to this chapter. C. If, after having been served with the notice of hearing as provided for in title 41, chapter 6, article 10, the permittee fails to appear at the hearing and defend, the department shall proceed to hear evidence against the permittee and shall enter an order as justified by the evidence. The order is final unless the permittee petitions for a review as provided in title 41, chapter 6, article 10. D. At all hearings, the attorney general, an assistant attorney general or a special assistant designated by the attorney general shall appear and represent the department. E. Except as provided in section 41-1092.08, subsection H, any final administrative decision made pursuant to this chapter is subject to judicial review pursuant to title 12, chapter 7, article 6. 28-9523. Violations; classification; jurisdiction A. A person is guilty of a class 1 misdemeanor who: 1. Knowingly hinders, interferes with or obstructs in any way the director or any of the director's agents or inspectors in entering the premises where a taxi meter may be kept for inspecting or testing or in the performance of the official duties of the director or the director's agents or inspectors. 2. Impersonates in any way the director or any of the director's agents or inspectors by the use of the director's seal or a counterfeit of the director's seal or in any other manner. 3. Uses, or has in possession for the purpose of using for a commercial purpose, offers or exposes for sale or hire, or has in possession for the purpose of selling or hiring an incorrect taxi meter used or calculated to falsify the accuracy of the taxi meter. B. A person is guilty of a class 2 misdemeanor who: 1. Uses a taxi meter that is so positioned that its indications cannot be accurately read and the metering operation cannot be observed from some position that may reasonably be assumed by a customer. 2. Violates this chapter or rules adopted under this chapter. A continuing violation may be deemed to be a separate violation each day during which the violation is committed for the purpose of imposing a fine. C. The provisions of this section are in addition to and not in limitation of any other provision of law. D. The attorney general and the county attorney have concurrent jurisdiction to prosecute violations of this chapter. 28-9524. Taxi meter; presumptive evidence of use When a taxi meter is in or about any place in which or from which a vehicle for hire transaction is commonly carried on, there is a rebuttable presumption that the taxi meter is regularly used for the business purpose of the place. 28-9525. Civil penalties A. A person who violates this chapter, any rule of the department or any permit requirement is subject to a civil penalty imposed by the director. A person who violates this chapter, any rule of the department or any permit requirement may request a hearing to review a civil penalty imposed under this section. The department shall conduct the hearing in accordance with title 41, chapter 6, article 10. The civil penalty may not exceed one thousand five hundred dollars for each infraction at each business location. B. The attorney general shall bring actions to recover civil penalties pursuant to this section in the superior court in the county in which the violation occurred or in a county where the agency has its office. All monies derived from civil penalties shall be deposited, pursuant to sections 35-146 and 35-147, in the state general fund. 28-9526. Delinquent civil penalties and fees In addition to any other penalty, if a civil penalty or any fee due pursuant to this chapter has not been paid within thirty days after the due date, the civil penalty or fee is delinquent and the department may refuse to issue a permit or may revoke a permit pursuant to this chapter until the civil penalty or fee is paid in full. 28-9527. Transaction privilege tax prohibited A vehicle for hire owner, company or driver that has a permit issued pursuant to article 1 of this chapter is exempt from transaction privilege tax pursuant to sections 42-5062 and 42-6004 on income derived from transporting persons for hire. 28-9551. Definitions In this article, unless the context otherwise requires: 1. "Digital network or software application" means any online-enabled application, software, website or system that is offered or used by a transportation network company and that enables a potential passenger to arrange a ride with a transportation network company driver. 2. "Trade dress" means a removable and distinct logo, insignia or emblem attached to or visible from the exterior of either of the following: (a) A transportation network company vehicle during the performance of transportation network services. (b) A taxi while providing vehicle for hire services. 3. "Transportation network company" means an entity that has been issued a permit pursuant to this article, that operates in this state, that uses a digital network or software application to connect passengers to transportation network services provided by transportation network company drivers and that may but is not deemed to own, operate or control a personal motor vehicle of a transportation network company driver. Transportation network company does not include the following: (a) This state or a county, city, town or political subdivision of this state and any related entity, a nonprofit agency or any other public body that coordinates, operates, promotes or sponsors public transportation or carpool or vanpool services. (b) A program that is in place to meet federal air quality standards pursuant to section 49-404. (c) Any individual, company or activity that meets the requirements of a rental car agent or rental company as defined in section 20-331 if all of the following apply: (i) Transportation is provided to another person or is arranged by the rental company but provided by another person. (ii) The route is predetermined. (iii) Any money exchanged between the provider of the transportation and the recipient does not exceed the cost of providing the transportation. 4. "Transportation network company driver" means an individual who receives connections to potential passengers and related services from a transportation network company in exchange for payment of a fee to the transportation network company and who operates a motor vehicle that is both of the following: (a) Owned, leased or otherwise authorized for use by the individual. (b) Used to provide transportation network services. 5. "Transportation network company vehicle" means a motor vehicle that meets all of the following: (a) Has a seating capacity not exceeding eight passengers, including the driver. (b) Is authorized by a transportation network company. (c) Is used by a transportation network company driver to provide transportation network services. 6. "Transportation network services" means the transportation of a passenger between points chosen by the passenger and arranged with a transportation network company driver through the use of a transportation network company's digital network or software application beginning when a transportation network company driver accepts a request for transportation network services received through the transportation network company's digital network or software application, continuing while the transportation network company driver provides transportation network services in a transportation network company vehicle and ending when the passenger exits the transportation network company vehicle or when the trip is canceled. 28-9552. Transportation network companies; permit; fee; agent; trade dress A. A person may not act as a transportation network company driver in this state unless the transportation network company has been issued a permit by the department. The transportation network company may apply to the department on forms prescribed by the department. The department shall charge and collect an application fee as determined by the director. B. The department shall issue a permit to an applicant that meets the requirements of this article. C. A transportation network company shall maintain an agent for service of process in this state. D. A transportation network company vehicle shall display trade dress while being used to provide transportation network services. The trade dress shall identify the transportation network company vehicle with a particular transportation network company. The transportation network company shall file an illustration of the trade dress with the department. E. A transportation network company shall be regulated pursuant to this article and not as a vehicle for hire. 28-9553. Transportation network services; fares; driver identification; electronic receipt A. On behalf of a transportation network company driver, a transportation network company may charge a fare for transportation network services provided to passengers. If a fare is charged through a digital network or software application, the transportation network company shall disclose to passengers the fare calculation method on its website or within the digital network or software application. B. The transportation network company shall provide passengers with the applicable rates being charged through a digital network or software application and the option to receive an estimated fare before the passenger enters the transportation network company vehicle. C. Before the passenger enters the transportation network company vehicle through the transportation network company's digital network or software application, the digital network or software application shall display a picture of the transportation network company driver and the license plate number of the motor vehicle used for providing the transportation network service. D. Within a reasonable period of time following the completion of a trip arranged through a digital network or software application, the transportation network company shall transmit to the passenger an electronic receipt that lists all of the following: 1. The origin and destination of the trip. 2. The total time and distance of the trip. 3. An itemization of the total fare paid, if any. 28-9554. Zero-tolerance policy; drug and alcohol use by driver; passenger complaints A. A transportation network company shall implement a zero-tolerance policy on the use of drugs and alcohol while a transportation network company driver is providing transportation network services or is logged in to the digital network or software application but is not providing transportation network services. The transportation network company shall provide notice of this policy on its website, including procedures to file a complaint about a transportation network company driver with whom a passenger was matched and who the passenger reasonably suspects was under the influence of drugs or alcohol during the course of the trip. B. On receipt of a passenger complaint alleging a violation of the zero-tolerance policy, the transportation network company shall do both of the following: 1. Immediately suspend the transportation network company driver's access to the transportation network company's digital network or software application. 2. Conduct an investigation into the filed complaint. The suspension shall last the duration of the investigation. C. If the transportation network company's investigation confirms that the transportation network company driver has violated this section, the transportation network company shall permanently deactivate the driver's access to the transportation network company's digital network or software application. The transportation network company shall maintain enforcement records for at least two years after the date a passenger complaint is received by the transportation network company and make the records available to the department on request. 28-9555. Transportation network company duties; driver requirements A. Before a person may accept trip requests through a digital network or software application, the transportation network company shall do all of the following: 1. Require the person to submit an application to the transportation network company that includes the person's name, address, age, driver license number, driving history, motor vehicle registration information and motor vehicle insurance information and any other information requested by the transportation network company. 2. Conduct, or have a third party conduct, a local and national criminal background check for each applicant that includes a search of a multijurisdiction criminal records locator or similar, validated commercial nationwide database and a national sex offender registry database. 3. Obtain and review a driving history report for the applicant. 4. Require that a transportation network company vehicle used by a transportation network company driver or owned by an on-demand autonomous vehicle network as defined in section 28-9701 meets state vehicle safety and emissions standards for private vehicles and have at a minimum an annual brake and tire inspection that is performed by a qualified third party, except that if the vehicle is ten years or less from the year of manufacture, the transportation network company driver may submit an attestation that the transportation network company vehicle meets the state vehicle safety and emissions standards for private vehicles instead of having the minimum annual brake and tire inspection. B. A transportation network company may not allow a person to act as a transportation network company driver who: 1. Has had more than three moving violations or one major violation pursuant to this title in the preceding three years. For the purposes of this paragraph, "major violation" includes attempting to evade the police, reckless driving or driving on a suspended or revoked license. 2. Has been convicted within the preceding seven years of a serious offense as defined in section 13-706 or a violation of section 28-1381, 28-1382 or 28-1383 or title 13, chapter 14, 19, 22, 23, 34 or 35.1. 3. Is listed in a national sex offender registry database. 4. Does not possess a valid driver license. 5. Does not possess proof of registration for the motor vehicle that will be used as a transportation network company vehicle. 6. Does not possess proof of financial responsibility for the motor vehicle that will be used as a transportation network company vehicle. 7. Is not at least nineteen years of age. C. A transportation network company or its agent shall maintain records of the criminal background check conducted on behalf of each transportation network company driver and make the records available to the department on request. 28-9556. Transportation network services; civil penalty; street hails prohibited; records A. A transportation network company driver shall accept rides booked and paid for exclusively through a transportation network company's digital network or software application. The department may impose a civil penalty of not more than one thousand five hundred dollars per violation against any transportation network company driver who is found to be soliciting or accepting street hails. B. A transportation network company shall maintain individual trip records for at least one year after the date each trip was provided and transportation network company driver records until the one-year anniversary of the date of the driver's activation on the transportation network company's digital network or software application has ended and shall make the records available to the department on request. 28-9557. Transportation network companies; drivers; transaction privilege tax prohibited A transportation network company that has a permit issued pursuant to this article and a transportation network company driver may not be required to pay transaction privilege tax or any similar tax imposed by any taxing authority in this state on transactions in which a transportation network company driver is providing transportation network services. 28-9558. Transportation network company disclosures; insurance proceeds A. A transportation network company shall disclose to its transportation network company drivers, in writing or in an electronic format, the following information before the drivers may accept a request for transportation network services on the transportation network company's digital network or software application: 1. The insurance coverage and limits of liability that the transportation network company provides while the transportation network company driver uses a transportation network company vehicle in connection with the transportation network company's digital network or software application. 2. That the transportation network company driver's own insurance policy might not provide coverage while the transportation network company driver uses a transportation network company vehicle in connection with the transportation network company's digital network or software application, depending on its terms. 3. That the transportation network company driver's use of a vehicle that has a lien against it to provide transportation network services for the transportation network company might violate the terms of the transportation network company driver's contract with the driver's lienholder. B. The disclosures required by subsection A of this section shall be placed in the prospective transportation network company vehicle owner's written terms of service. C. If a transportation network company's insurer makes a payment for a claim covered under comprehensive coverage or collision coverage, the transportation network company shall cause its insurer to issue the payment directly to the business repairing the vehicle or jointly to the owner of the vehicle and the primary lienholder on the covered vehicle. 28-9571. Statewide transportation innovation fund A. The statewide transportation innovation fund is established. The state treasurer shall administer the fund. Monies in the fund are subject to legislative appropriation and are exempt from the provisions of section 35-190 relating to lapsing of appropriations. The state treasurer shall invest and divest monies in the fund as provided by section 35-313, and monies earned from investment shall be credited to the fund. The fund consists of the following: 1. Monies appropriated by the legislature. 2. Any nonfederal gifts, grants, donations or other monies received by the state treasurer from any public or private source for transportation projects. B. The monies in the fund shall be used for: 1. Grants to for-profit and nonprofit entities to provide a transportation innovation program in this state as prescribed by section 28-9572. 2. Equipment purchases, driver salaries, insurance costs and payment of other costs directly related to the implementation of an innovation transportation plan. 28-9572. Statewide transportation innovation program; grantee requirements A. The state treasurer shall administer the statewide transportation innovation program that consists of grant recipients authorized pursuant to section 28-9571. B. A grant applicant must: 1. Be able to provide a mode of transportation that seats fifteen or fewer passengers. 2. Include manually driven or autonomous vehicles. 3. Allow for dropping off and picking up passengers using predetermined locations. 4. Include in the grant application: (a) An implementation plan. (b) The service area within which the grant applicant will operate. (c) The cost to the passengers. (d) The number of available vehicles. (e) Other information as determined by the department. C. The state treasurer shall report all applications that are received for the transportation innovation program to the chairpersons of the senate and house of representatives transportation committees, or their successor committees. D. At the request of the chairpersons of the senate and house of representatives transportation committees, or their successor committees, the state treasurer shall hold a public meeting to review grant applications and receive a legislative recommendation. All information in the applications reviewed at the meeting shall remain confidential.