Vehicle for Hire Licensing

Recent Licensing Changes

House Bill 2135

House Bill 2135 primarily established new insurance financial limits and requirements for TNC, taxis, livery vehicle and limousines. This new law went into effect on July 3, 2015. The following are some of the other major provisions of this new law.

Transportation Network Companies (TNC)
  • Requires a TNC to obtain a 3 year permit from the Arizona Department of Transportation (ADOT) in order to operate in this state.  The fee for this permit is $1,000.
  • Specifies that a TNC must maintain an “agent for service of process” in this state and conducts a local and national criminal background check for each TNC driver applicant.
  • Stipulates that the TNC to display the trade dress to identify the TNC vehicle when the vehicle is used to provide services. The TNC must file an illustration of the trade address with ADOT.
  • Permits the TNC to charge a fare for transportation network services that are provided to passengers and disclose the method for calculating the fare on its website or within the digital network or software application.
  • Requires TNC to maintain a zero-tolerance on the use of drugs and alcohol when the vehicle is in use.
  • Prohibits a TNC from allowing a person to act as a TNC driver who:
    • Has committed more than 3 moving violations or one major violation in the last 3 years.
    • Has been convicted of a serious felony or DUI violations in the last 7 years.
    • Is listed on a national sex offender registry database.
    • Does not possess a valid driver license, proof of vehicle registration or proof of vehicle insurance that meets the requirements under this law.
    • Is not at least 19 years of age.
Vehicles for Hire (Taxis, Livery Services and Limousines)
  • Removes the requirement for an owner to have drug testing and maintenance records available for inspection at all times by ADWM. 
  • Eliminates the requirement for a pre-employment drug test and random drug test of the company’s drivers but requires the Vehicle for Hire companies to maintain a zero-tolerance drug and alcohol policy when a driver is providing service.
  • Requires the Vehicle for Hire companies to meet all vehicle safety and emissions standards; and conduct a brake and tire inspection by a qualified party at least annually.

 

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