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(a) An operator shall procure and keep in full force and effect no less than the insurance coverage required by this section through a policy or policies written by an insurance company that:
(1) is authorized to do business in the State of Texas;
(2) acceptable to the city; and
(3) does not violate the ownership or operational control prohibition described in Subsection (e) of this section.
(b) The insured provisions of the policy must name the city and its officers and employees as additional insureds, and the coverage provisions must provide coverage for any loss or damage that may arise to any person or property by reason of the operation of a shared dockless vehicle.
(c) An operator shall maintain the following insurance coverages:
(1) The commercial general liability insurance must provide single limits of liability for bodily injury (including death) and property damage of $1 million for each occurrence, with a $2 million annual aggregate.
(2) If an operator will utilize motor vehicles in its operations, the business automotive liability insurance must cover owned, hired, and non-owned vehicles, with a combined single limit for bodily injury (including death) and property damage of $500,000 per occurrence.
(3) Worker's compensation insurance with statutory limits.
(4) Employer's liability insurance with the following minimum limits for bodily injury by:
(A) accident, $500,000 per each accident; and
(B) disease, $500,000 per employee with a per policy aggregate of $500,000.
(5) Cyber/technology network liability and risk insurance, inclusive of information security and privacy with minimum limits of $1 million per claim.
(d) Insurance required under this article must:
(1) include a cancellation provision in which the insurance company is required to notify the director in writing not fewer than 30 days before cancelling the insurance policy (for a reason other than non-payment) or before making a reduction in coverage;
(2) include a cancellation provision in which the insurance company is required to notify the director in writing not fewer than 10 days before cancelling for non-payment;
(3) include an endorsement to waive subrogation in favor of the city and its officers and employees for bodily injury (including death), property damage, or any other loss.
(4) cover all shared dockless vehicles during the times that the vehicles are deployed or operating in furtherance of the operator's business;
(5) include a provision requiring the insurance company to pay every covered claim on a first-dollar basis;
(6) require notice to the director if the policy is cancelled or if there is a reduction in coverage; and
(7) comply with all applicable federal, state, and local laws.
(e) No person who has a 20 percent or greater ownership interest in the operator may have an interest in the insurance company.
(f) An operator may not be self-insured.
(a) An operator shall pay an annual vehicle fee of $35 for each permitted shared dockless vehicle with $5 from the annual vehicle fee dedicated to equity programs.
(b) An operator shall pay a right-of-way rental fee of $0.20 for each ride a customer takes on a shared dockless vehicle.
(c) The director may establish a program, subject to city council approval, to rebate or waive fees under this section in order to encourage equity in the distribution of shared dockless vehicles throughout the city.
Before issuance of an operating authority permit, the operator shall give the director a performance bond or an irrevocable letter of credit approved as to form by the city attorney.
(1) A bonding or insurance company authorized to do business in the State of Texas and acceptable to the city must issue the performance bond. A bank authorized to do business in the State of Texas and acceptable to the city must issue the irrevocable letter of credit.
(2) The performance bond or irrevocable letter of credit must list the operator as principal and be payable to the city.
(3) The performance bond or irrevocable letter of credit must remain in effect for the duration of the operating authority permit.
(4) The amount of the performance bond or irrevocable letter of credit must be at least $10,000.
(5) Cancellation of the performance bond or irrevocable letter of credit does not release the operator from the obligation to meet all requirements of this article and the operating authority permit. If the performance bond or irrevocable letter of credit is cancelled, the operating authority permit shall be suspended on the date of cancellation and the operator shall immediately cease operations until the operator provides the director with a replacement performance bond or irrevocable letter of credit that meets the requirements of this article.
(a) The director may, with or without notice, inspect any shared dockless vehicle operating under this article to determine whether the shared dockless vehicle complies with this article, rules and regulations established under this article, or other applicable laws.
(b) The director shall enforce this article. Upon observing a violation of this article or the rules or regulations established by the director, the director shall take necessary action to ensure effective regulation of shared dockless vehicles. The director has authority to issue citations for violations of this division including moving violations. (Ord. Nos. 30936; 31479; 32236)
(a) A person commits an offense if he violates or attempts to violate a provision of this article, or a rule or regulation established by the director under this article, that is applicable to a person. A culpable mental state is not required for the commission of an offense under this article unless the provision defining the conduct expressly requires a culpable mental state. A separate offense is committed each day in which an offense occurs.