TexasHB 421589th Legislature Regular SessionHouse

Relating to the regulation of delivery network companies; requiring an occupational permit; authorizing a fee.

Sponsored By: Todd Hunter, Charles Schwertner (Republican)

Signed by Governor

Business & Commerce--GeneralOccupational Regulation--Other Trades & ProfessionsProtection of Personal InformationTransportation--MiscellaneousCONTRACTORS & SUBCONTRACTORSDISCRIMINATIONINTERNETPERMITSRECORDS MANAGEMENTLICENSING & REGULATION, TEXAS DEPARTMENT OF

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Bill Overview

Analyzed Economic Effects

6 provisions identified: 2 benefits, 1 costs, 3 mixed.

Safer deliveries and fairer customer treatment

Beginning September 1, 2025, delivery companies cannot charge extra because a customer has a physical disability. Companies must tell workers about a policy banning discrimination, and logged-in workers must follow it. The policy covers location or destination, race, color, national origin, religion, sex, disability, and age. Companies must ban any intoxication by logged-in workers and post the policy and a complaint method on their website or app. They must keep complaint records for at least two years after receiving a complaint.

Delivery workers get contractor status rules

Beginning September 1, 2025, delivery workers are contractors, not company employees, when all listed conditions hold. Companies cannot set login hours or delivery territory, block other delivery networks, or restrict other jobs or businesses. Both sides must agree in writing to contractor status, which generally means handling their own taxes and business costs. Chapter rules for logged-in drivers also cover workers receiving delivery requests or making digitally arranged deliveries. Delivery companies and logged-in delivery workers are not common carriers, contract carriers, or motor carriers under Texas law.

Delivery workers face stricter access checks

Beginning September 1, 2025, delivery companies must screen workers before granting network access. Workers must be at least 18 with valid government photo identification; motor-vehicle delivery also requires a valid driver's license. Companies must check local, state, and national criminal records using a multistate database and the national sex-offender website. That website's listing bars access, as do convictions within seven years for drunk driving or using a vehicle to commit a felony. Felony convictions involving property damage, fraud, theft, violence, or terrorism within seven years also bar access. Motor-vehicle applicants are barred for more than four moving violations within three years. Three-year driving disqualifiers also include fleeing police, reckless driving, and driving without a valid license or with an invalid license. Companies must review motor-vehicle applicants' driving records and restrict worker access upon a law-enforcement request or court order.

Delivery customers gain personal data protections

Beginning September 1, 2025, delivery companies can share customer identifying information with third parties only for listed reasons. These are customer consent, legal requirements, defending or enforcing service terms, or investigating violations. Companies can also share a customer's name with the delivery worker to help identify or contact the customer.

Company records get shields from disclosure

Beginning September 1, 2025, transportation and delivery company information held by Texas public entities is exempt from public-records disclosure. Public entities can share it only under a court order or subpoena and must promptly notify the company when disclosure is sought. They must assess privacy risks, collect only necessary and relevant data, and protect it through reasonable security and access controls. Companies are not civilly or criminally liable for unauthorized handling of information while a public entity holds it. Cities and companies can voluntarily agree to share company data; neither side must enter an agreement.

State permits replace local delivery rules

Beginning September 1, 2025, delivery companies must obtain and maintain permits from the Texas Department of Licensing and Regulation. Companies pay an annual fee set by state rule to cover program costs; no amount is specified. The department cannot charge this fee for delivery workers or vehicles. Local governments cannot impose taxes, extra permits, rates, or operating rules on delivery companies, logged-in workers, or delivery vehicles. The department can suspend or revoke transportation or delivery company permits for violations.

Sponsors & Cosponsors

Sponsors

  • Todd Hunter

    House

  • Charles Schwertner

    Republican • Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 306 • No: 6

Senate vote • 5/14/2025

Record vote

Yes: 0 • No: 0

Senate vote • 5/14/2025

Record vote

Yes: 0 • No: 0

House vote • 5/6/2025

Record vote

Yes: 142 • No: 3

House vote • 5/5/2025

Record vote

Yes: 141 • No: 3

Senate vote • Unknown

Committee vote: Business & Commerce

Yes: 11 • No: 0

House vote • Unknown

Committee vote: Licensing & Administrative Procedures

Yes: 12 • No: 0

Actions Timeline

  1. Effective on 9/1/25

    5/28/2025House
  2. Signed by the Governor

    5/28/2025House
  3. Sent to the Governor

    5/16/2025House
  4. Signed in the Senate

    5/16/2025Senate
  5. Signed in the House

    5/15/2025House
  6. Reported enrolled

    5/15/2025House
  7. Senate passage reported

    5/14/2025House
  8. Record vote

    5/14/2025Senate
  9. Passed

    5/14/2025Senate
  10. Read 3rd time

    5/14/2025Senate
  11. Record vote

    5/14/2025Senate
  12. Three day rule suspended

    5/14/2025Senate
  13. Vote recorded in Journal

    5/14/2025Senate
  14. Read 2nd time & passed to 3rd reading

    5/14/2025Senate
  15. Laid before the Senate

    5/14/2025Senate
  16. Placed on local & uncontested calendar

    5/14/2025Senate
  17. Committee report printed and distributed

    5/8/2025Senate
  18. Recommended for local & uncontested calendar

    5/8/2025Senate
  19. Reported favorably w/o amendments

    5/8/2025Senate
  20. Vote taken in committee

    5/8/2025Senate
  21. Considered in public hearing

    5/8/2025Senate
  22. Referred to Business & Commerce

    5/7/2025Senate
  23. Read first time

    5/7/2025Senate
  24. Received from the House

    5/6/2025Senate
  25. Reported engrossed

    5/6/2025House

Bill Text

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