SB 262 Summary

• Creates regulatory framework for Transportation Network Companies (TNCs) in Delaware, requiring a $5,000 annual permit from the Delaware Department of Transportation and Delaware Transit Corporation.

• Establishes mandatory automobile insurance requirements: minimum $50,000/$100,000/$25,000 liability when driver is logged on but not actively transporting passengers, and $1,000,000 combined single limit while engaged in prearranged rides.

• Classifies TNC drivers as independent contractors (not employees) if five conditions are met, including no prescribed hours, freedom to use competing platforms, no assigned territory, and written independent contractor agreement.

• Requires TNCs to conduct criminal background checks and driving record reviews for all drivers, disqualifying those with felonies within 7 years, certain traffic violations within 3 years, sex offenses, and other serious offenses.

• Prohibits local municipalities from imposing taxes, licenses, or operational requirements on TNCs or drivers; establishes statewide regulatory authority with the Division and prohibits street hails and cash payments for rides.