Committee considers statewide regulatory framework for delivery network companies; industry witness supports permit and background checks

2951768 · April 10, 2025

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Summary

Senate Bill 2154 would amend the Occupations Code to apply the regulatory framework used for transportation network companies to delivery network companies, require permits, standardized background checks, and authorize TDLR oversight. Favorable testimony came from delivery operator Favor Delivery.

Senator Schwertner presented a committee substitute to Senate Bill 2154 that would extend the existing regulatory framework for transportation network companies to delivery network companies (DNCs). The substitute would require delivery network companies to obtain permits from the Texas Department of Licensing and Regulation (TDLR), validate eligibility of delivery persons, maintain records, implement intoxicating‑substance non‑discrimination policies, and allow TDLR to suspend or revoke permits for noncompliance. The substitute clarified onboarding verification timing and allowed DNCs to present required policies through their digital applications.

Daniel Guzman, chief legal officer of Favor Delivery (a subsidiary of H‑E‑B), testified in support and asked the committee to adopt the substitute. He described DNCs as a now‑common consumer service that expanded sharply during the COVID‑19 pandemic and that a consistent statewide framework would codify best practices and improve consumer safety.

The committee took public testimony and left the substitute pending for further consideration.