§ 39-14.2-5. Permit required of transportation network company. (a) No person shall operate a TNC in the state until that person shall have applied for and obtained a permit from the division; provided, that any transportation network company operating in the state before the effective date of this chapter [Nov. 3, 2016] may continue to operate in the state until the division creates a permit process as required pursuant to this section, and provides a reasonable period in which to apply and obtain a permit.

(b) No application for a permit may be granted or renewed unless the division determines that, at a minimum, each applicant for a permit has verified the following:

(1) That the applicant has a sufficient oversight process in place to ensure that every vehicle providing transportation network services through its digital network possesses adequate insurance coverage;

(2) That the applicant has submitted to the division information on the internal or third-party background check entity and its data collection process to ensure compliance with the requirements established in § 39-14.2-7(b) and (c). The required information and the process for submitting such information shall be established through regulations promulgated by the division;

(3) That the applicant has sufficient oversight processes in place to ensure that each TNC driver using the applicant's digital network:

(i) Has submitted to a background check conducted by the applicant that includes a review of local and national criminal records, sex offender records, and driving records associated with each driver; and

(ii) Submitted the application requirement of § 39-14.2-7(b)(1).

(c) The application fee and annual renewal fee shall be five thousand dollars ($5,000) for a TNC with fewer than 50 active TNC drivers; ten thousand dollars ($10,000) for a TNC with at least 50, but fewer than 200, active TNC drivers; and thirty thousand dollars ($30,000) for a TNC with at least 200 active TNC drivers at the time of application or permit renewal and only after the division satisfactorily determines that the applicant meets the requirements for a TNC set forth in this chapter, and as set forth in any rules or regulations promulgated in accordance with § 39-14.2-3.

(d) All permits issued under this section shall be renewed before the close of business on December 31 of each calendar year. All revenue collected under this section shall be deposited into the transportation network services reserve account as provided in § 39-14.2-6.

(e) Permits issued under this chapter shall not be transferred without the consent of the division.

(f) The sale or other transfer of a controlling percentage of the capital stock or membership interests of a TNC, whether by merger, stock sale, or otherwise, or the sale or transfer of more than fifty percent (50%) of the value of the assets of a TNC, shall be deemed a change of control, not a transfer, and shall not be subject to the restrictions in subsection (d). The phrase "controlling percentage" means the ownership of, and the right to vote, stock or interests possessing more than fifty percent (50%) of the total, combined voting power of all classes of TNC's capital stock or interests issued, outstanding, and entitled to vote for the election of directors.

History of Section. (P.L. 2016, ch. 346, § 1; P.L. 2016, ch. 367, § 1.)