SB1686 99TH GENERAL ASSEMBLY

LRB099 07368 RJF 27482 b

99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
SB1686

Introduced 2/20/2015, by Sen. William R. Haine

SYNOPSIS AS INTRODUCED:

625 ILCS 5/1-122.7
625 ILCS 5/8-101	from Ch. 95 1/2, par. 8-101
625 ILCS 30/2	from Ch. 95 1/2, par. 902
625 ILCS 30/5	from Ch. 95 1/2, par. 905
625 ILCS 30/7 new

Amends the Illinois Vehicle Code. Includes the term, "commercial ridesharing arrangement" within the meaning of "for-profit ridesharing arrangement". Amends the Ridesharing Arrangements Act. Provides for the creation of commercial ridesharing arrangements, and provides for the licensing, operation, and insurance requirements of such arrangements. Defines the terms, "commercial ridesharing arrangement", "dispatch", and "dispatcher". Makes conformity changes.

HOME RULE NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning transportation.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Illinois Vehicle Code is amended by changing Sections 1-122.7 and 8-101 as follows:

(625 ILCS 5/1-122.7)

Sec. 1-122.7. For-profit ridesharing arrangement. The transportation by motor vehicle of not more than 16 persons, including the driver, for which a fee is charged in accordance with Section 6 of the Ridesharing Arrangements Act, or a commercial ridesharing arrangement as defined by the Ridesharing Arrangements Act.

(Source: P.A. 90-89, eff. 1-1-98.)

(625 ILCS 5/8-101) (from Ch. 95 1/2, par. 8-101)

Sec. 8-101. Proof of financial responsibility - Persons who operate motor vehicles in transportation of passengers for hire.

(a) It is unlawful for any person, firm or corporation to operate any motor vehicle along or upon any public street or highway in any incorporated city, town or village in this State for the carriage of passengers for hire, accepting and discharging all such persons as may offer themselves for transportation unless such person, firm or corporation has given, and there is in full force and effect and on file with the Secretary of State of Illinois, proof of financial responsibility provided in this Act.

(b) In addition this Section shall also apply to persons, firms or corporations who are in the business of providing transportation services for minors to or from educational or recreational facilities, except that this Section shall not apply to public utilities subject to regulation under "An Act concerning public utilities," approved June 29, 1921, as amended, or to school buses which are operated by public or parochial schools and are engaged solely in the transportation of the pupils who attend such schools.

(c) This Section also applies to a contract carrier transporting employees in the course of their employment on a highway of this State in a vehicle designed to carry 15 or fewer passengers. As part of proof of financial responsibility, a contract carrier transporting employees in the course of their employment is required to verify hit and run and uninsured motor vehicle coverage, as provided in Section 143a of the Illinois Insurance Code, and underinsured motor vehicle coverage, as provided in Section 143a-2 of the Illinois Insurance Code, in a total amount of not less than $250,000 per passenger.

(d) This Section shall not apply to any person participating in a ridesharing arrangement, a for-profit ridesharing arrangement other than a commercial ridesharing arrangement, or operating a commuter van, but only during the performance of activities authorized by Sections 5 and 6 of the Ridesharing Arrangements Act.

(e) If the person operating such motor vehicle is not the owner, then proof of financial responsibility filed hereunder must provide that the owner is primarily liable. In the case of motor vehicles used in commercial ridesharing arrangements, the dispatchers providing dispatch services to the driver of the motor vehicle must submit proof that the driver will be additionally insured on a primary insurance policy that will provide coverage during the time period the driver makes himself, herself, or the vehicle available for dispatch or while a commercial ridesharing arrangement passenger is in the vehicle.

(Source: P.A. 94-319, eff. 1-1-06.)

Section 10. The Ridesharing Arrangements Act is amended by changing Sections 2 and 5 and by adding Section 7 as follows:

(625 ILCS 30/2) (from Ch. 95 1/2, par. 902)

(Text of Section before amendment by P.A. 98-1173)

Sec. 2. (a) "Ridesharing arrangement" means the transportation by motor vehicle of not more than 16 persons (including the driver):

(1) for purposes incidental to another purpose of the driver, for which no fee is charged or paid except to reimburse the driver or owner of the vehicle for his operating expenses on a nonprofit basis; or

(2) when such persons are travelling between their homes and their places of employment, or places reasonably convenient thereto, for which (i) no fee is charged or paid except to reimburse the driver or owner of the vehicle for his operating expenses on a nonprofit basis, or (ii) a fee is charged in accordance with the provisions of Section 6 of this Act.

(b) "For-profit ridesharing arrangement" means a ridesharing arrangement for which a fee is charged in accordance with Section 6 of this Act.

(Source: P.A. 83-1091.)

(Text of Section after amendment by P.A. 98-1173)

Sec. 2. (a) "Ridesharing arrangement" means the transportation by motor vehicle of not more than 16 persons (including the driver):

(1) for purposes incidental to another purpose of the driver, for which no fee is charged or paid except to reimburse the driver or owner of the vehicle for his operating expenses on a nonprofit basis; or

(2) when such persons are travelling between their homes and their places of employment, or places reasonably convenient thereto, for which (i) no fee is charged or paid except to reimburse the driver or owner of the vehicle for his operating expenses on a nonprofit basis, or (ii) a fee is charged in accordance with the provisions of Section 6 of this Act.

(b) "For-profit ridesharing arrangement" means:

(1) a ridesharing arrangement for which a fee is charged in accordance with Section 6 of this Act, and does not include transportation network company services under the Transportation Network Providers Act; or .

(2) a commercial ridesharing agreement conducted in accordance with Section 7 of this Act.

(c) "Commercial ridesharing arrangement" means a ridesharing arrangement in which the method of transportation is a vehicle owned or leased for personal use, of not more than 6 persons (including the driver), prearranged through a dispatcher, and for which a fee is charged, but that is not provided in accordance with the limitations of Section 6 of this Act.

(d) "Dispatch" means the act of facilitating a connection between drivers and passengers for a commercial ridesharing arrangement using telephone, Internet, smartphone, or an electronic application, with or without an account set up between the passenger and the connecting person.

(e) "Dispatcher" means a person that performs a dispatch.

(Source: P.A. 98-1173, eff. 6-1-15.)

(625 ILCS 30/5) (from Ch. 95 1/2, par. 905)

Sec. 5. (a) No unit of local government, whether or not it is a home rule unit, may:

(1) license or regulate ridesharing arrangements;

(2) impose any tax or fee upon the owner or operator of a motor vehicle because of its use in a ridesharing arrangement;

(3) prohibit or regulate the charging of fees for ridesharing arrangements in accordance with Section 6 of this Act.

This Act, as it applies to ridesharing arrangements, is declared to be a denial and limitation of the powers of home rule units pursuant to paragraph (g) of Section 6 of Article VII of the Illinois Constitution.

(b) Other than with respect to paragraph (1) of subsection (a) of Section 7 of this Act, a unit of local government, whether or not it is a home rule unit, may not license or regulate commercial ridesharing arrangements, dispatchers, or drivers participating in commercial ridesharing arrangements in a manner that is less restrictive than the regulation by the State under this Act. This subsection (b) is a limitation under subsection (i) of Section 6 of Article VII of the Illinois Constitution on the concurrent exercise by home rule units of powers and functions exercised by the State.

(Source: P.A. 83-1091.)

(625 ILCS 30/7 new)

Sec. 7. License; registration.

(a) Commercial ridesharing arrangements are subject to the following license and registration requirements:

(1) No person shall participate as a driver in commercial ridesharing arrangements for more than 18 hours per week without first securing (i) a chauffeur's license issued by the unit of local government where the vehicle used in the commercial ridesharing arrangement is registered; or (ii) if the unit of local government in which the vehicle used in a commercial ridesharing arrangement is registered does not issue chauffeur's licenses, then a chauffeur's license issued by a unit of local government in which the driver provides commercial ridesharing arrangements. If no unit of local government in which the vehicle used in a commercial ridesharing arrangement is registered or operated issues chauffeur's licenses or if the driver of the commercial ridesharing arrangement does not participate in commercial ridesharing arrangements for more than 18 hours per week, then the driver is not required to obtain a chauffeur's license; provided, however, that the dispatcher shall conduct a background check of a prospective driver prior to dispatching commercial ridesharing arrangements to that driver and shall certify in the reports required by subsection (f) of this Section 7 that the driver is participating in a commercial ridesharing arrangement for 18 or fewer hours per week.

(2) No person shall perform dispatches without first securing a commercial ridesharing dispatcher's license from the Department of Financial and Professional Regulation. An applicant for a commercial ridesharing dispatcher's license must submit evidence of the insurance required by paragraph (2) of subsection (b) of this Section. This license must be renewed annually. The fee for this license shall be set by the Department of Financial and Professional Regulation. The Department of Financial and Professional Regulation shall adopt rules to implement this paragraph.

(b) All commercial ridesharing arrangements shall be conducted under the following standards:

(1) A vehicle used for commercial ridesharing arrangements for more than 18 hours per week must conform to the age requirements for vehicles used for transporting passengers for hire adopted by the unit of local government in which the vehicle is registered.

(2) Dispatchers must carry commercial liability insurance in accordance with Section 12-707.01 of the Illinois Vehicle Code with primary coverage for the dispatcher, the driver, and the vehicle used in the commercial ridesharing arrangement during the time period when the driver makes himself, herself, or the vehicle available for dispatch or while a commercial ridesharing arrangement passenger is in the vehicle. Any terms or conditions in the agreement between the dispatcher and driver, or between the dispatcher and passenger, that would act as a waiver of the dispatcher's liability to the driver, the passenger, or to the public, or as an indemnification from the driver or passenger to the dispatcher, are null, void, and unenforceable.

(3) Dispatches shall be made only to drivers licensed under subsection (a) of this Section.

(c) A dispatcher shall assume liability, including the costs of defense and indemnification, for a claim in which a dispute exists as to whether the loss or injury giving rise to the claim occurred while a vehicle involved in the incident giving rise to the claim was made available for dispatch or while a commercial ridesharing arrangement passenger is in the vehicle. The dispatcher must notify the registered owner of the vehicle and the registered owner's insurer of the dispute within 25 business days of receiving notice of the accident that gives rise to the claim. If a private passenger motor vehicle's registered owner or its insurer is named as a defendant in a civil action for any loss or injury that occurs during the time the vehicle is made available for dispatch, the dispatcher shall have the duty to defend and indemnify the vehicle's registered owner and its insurers.

(d) Notwithstanding any provision in the vehicle owner's insurance policy or any other provision of this Act, the insurer providing coverage to the owner of a private passenger motor vehicle may exclude any and all coverage and the duty to defend afforded under the owner's insurance policy for any loss or injury that occurs while the vehicle is made available for dispatch or while a commercial ridesharing arrangement passenger is in the vehicle. This right to exclude coverage and the duty to indemnify and defend applies to all coverage provided by the registered owner's insurer including, but not limited to:

(1) liability and physical damage coverage;

(2) personal injury protection coverage;

(3) uninsured and underinsured motorist coverage;

(4) medical payment coverage for persons using or occupying the registered vehicle;

(5) comprehensive physical damage coverage; and

(6) collision physical damage coverage.

(e) A dispatcher must, prior to the first use of a vehicle in a commercial ridesharing arrangement, and upon renewal, cancellation, or change in insurance by the dispatcher, provide the vehicle's registered owner and any driver of the vehicle with a disclosure that contains:

(1) information explaining the insurance requirements of this Section;

(2) information explaining the coverage and coverage limits provided under the dispatcher's insurance policy;

(3) notice that the dispatcher assumes all liability for any loss or injury that occurs while the vehicle is made available for dispatch or while a commercial ridesharing arrangement passenger is in the vehicle; and

(4) notice that the dispatcher provides insurance on the vehicle while the vehicle is made available for dispatch or while a commercial ridesharing arrangement passenger is in the vehicle that is comparable to a standard owner's insurance policy and that the vehicle's registered owner's insurance policy may exclude all coverage and the duty to defend or indemnify any person or organization for liability for any loss or injury that occurs while the vehicle is made available for dispatch or while a commercial ridesharing arrangement passenger is in the vehicle.

(f) For each vehicle used in a commercial ridesharing arrangement a dispatcher must collect, maintain, and make available to the vehicle's registered owner, the vehicle's registered owner's primary automobile liability insurer, and any government agency as required by law, at the cost of the dispatcher, the following:

(1) records that identify the date and duration the driver makes himself, herself, or the vehicle available for dispatch. For vehicles with an electronic tracking device, electronic records of the time, initial and final locations of the vehicle, and miles driven when the vehicle is under the control of a person other than the vehicle's registered owner under a commercial ridesharing arrangement; and

(2) in instances when an insurance claim has been filed, any and all information, including payments to the registered owner by the dispatcher, concerning accidents, damages, or injuries.

(g) The Department of Financial and Professional Regulation shall adopt rules to implement this Section.

Section 95. No acceleration or delay. Where this Act makes changes in a statute that is represented in this Act by text that is not yet or no longer in effect (for example, a Section represented by multiple versions), the use of that text does not accelerate or delay the taking effect of (i) the changes made by this Act or (ii) provisions derived from any other Public Act.