HB 509 Summary

• Authorizes transportation network companies (TNCs) to operate in Alabama, requiring annual permits issued by the Alabama Public Service Commission for a $5,000 fee.

• Mandates TNCs provide riders with fare calculation methods, applicable rates, estimated fares, and electronic receipts listing trip origin/destination, time, distance, and itemized charges.

• Requires primary automobile liability insurance of $50,000-$100,000 per person/$25,000 property damage while drivers are logged on, and $1,000,000 coverage while actively providing rides.

• Establishes TNC driver qualifications including background checks, driving history review, minimum age of 19, valid driver's license, annual vehicle safety inspections covering 19 equipment categories, and disqualification for serious traffic violations or felony convictions within seven years.

• Classifies TNC drivers as independent contractors (not employees) if TNCs do not prescribe hours, restrict other work, assign territory, or limit use of competing platforms, and prohibits municipalities from imposing local taxes or licensing requirements on TNCs.