Terms Used In Texas Occupations Code 2402.001

  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.

In this chapter:
(1) “Department” means the Texas Department of Licensing and Regulation.
(2) “Digital network” means any online-enabled application, website, or system offered or used by a transportation network company that enables the prearrangement of rides between passengers and drivers.
(3) “Digitally prearranged ride” means a ride in a personal vehicle between points chosen by the passenger that is prearranged through a digital network.
(4) “Personal vehicle” means a vehicle that:
(A) is owned, leased, or otherwise authorized for use by a driver; and
(B) is not a taxicab, limousine, or other vehicle regulated by a municipality under Section 215.004, Local Government Code, or a joint airport board under Section 22.081, Transportation Code.
(5) “Transportation network company” means a corporation, partnership, sole proprietorship, or other entity that, for compensation, enables a passenger to prearrange with a driver, exclusively through the entity’s digital network, a digitally prearranged ride. The term does not include an entity that provides:
(A) street-hail taxicab services;
(B) limousine or other car services arranged by a method other than through a digital network;
(C) shared expense carpool or vanpool arrangements; or
(D) a type of ride service for which:
(i) the fee received by the driver does not exceed the driver’s costs of providing the ride; or
(ii) the driver receives a fee that exceeds the driver’s costs associated with providing the ride but makes not more than three round-trips per day between the driver’s or passenger’s place of employment and the driver’s or passenger’s home.