Full Text of SB2774 98th General Assembly
SB2774enr 98TH GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning regulation.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 1. Short title. This Act may be cited as the | 5 | | Transportation Network Providers Act. | 6 | | Section 5. Definitions. | 7 | | "Transportation network company" or "TNC" means an entity | 8 | | operating in this State that uses a digital network or software | 9 | | application service to connect passengers to transportation | 10 | | network company services provided by transportation network | 11 | | company drivers. A TNC is not deemed to own, control, operate, | 12 | | or manage the vehicles used by TNC drivers, and is not a | 13 | | taxicab association or a for-hire vehicle owner. | 14 | | "Transportation network company driver" or "TNC driver" | 15 | | means an individual who operates a motor vehicle that is: | 16 | | (1) owned, leased, or otherwise authorized for use by | 17 | | the individual; | 18 | | (2) not a taxicab or for-hire public passenger vehicle; | 19 | | and | 20 | | (3) used to provide transportation network company | 21 | | services. | 22 | | "Transportation network company services" or "TNC | 23 | | services" means transportation of a passenger between points |
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| 1 | | chosen by the passenger and prearranged with a TNC driver | 2 | | through the use of a TNC digital network or software | 3 | | application. TNC services shall begin when a TNC driver accepts | 4 | | a request for transportation received through the TNC's digital | 5 | | network or software application service, continue while the TNC | 6 | | driver transports the passenger in the TNC driver's vehicle, | 7 | | and end when the passenger exits the TNC driver's vehicle. TNC | 8 | | service is not a taxicab, for-hire vehicle, or street hail | 9 | | service. | 10 | | Section 10. Insurance. | 11 | | (a) Transportation network companies and participating TNC | 12 | | drivers shall comply with the automobile liability insurance | 13 | | requirements of this Section as required. | 14 | | (b) The following automobile liability insurance | 15 | | requirements shall apply from the moment a participating TNC | 16 | | driver logs on to the transportation network company's digital | 17 | | network or software application until the TNC driver accepts a | 18 | | request to transport a passenger, and from the moment the TNC | 19 | | driver completes the transaction on the digital network or | 20 | | software application or the ride is complete, whichever is | 21 | | later, until the TNC driver either accepts another ride request | 22 | | on the digital network or software application or logs off the | 23 | | digital network or software application: | 24 | | (1) Automobile liability insurance shall be in the | 25 | | amount of at least $50,000 for death and personal injury |
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| 1 | | per person, $100,000 for death and personal injury per | 2 | | incident, and $25,000 for property damage. | 3 | | (2) Contingent automobile liability insurance in the | 4 | | amounts required in paragraph (1) of this subsection (b) | 5 | | shall be maintained by a transportation network company and | 6 | | provide coverage in the event a participating TNC driver's | 7 | | own automobile liability policy excludes coverage | 8 | | according to its policy terms or does not provide at least | 9 | | the limits of coverage required in paragraph (1) of this | 10 | | subsection (b). | 11 | | (c) The following automobile liability insurance | 12 | | requirements shall apply from the moment a TNC driver accepts a | 13 | | ride request on the transportation network company's digital | 14 | | network or software application until the TNC driver completes | 15 | | the transaction on the digital network or software application | 16 | | or until the ride is complete, whichever is later:
| 17 | | (1) Automobile liability insurance shall be primary | 18 | | and in the amount of $1,000,000 for death, personal injury, | 19 | | and property damage. The requirements for the coverage | 20 | | required by this paragraph (1) may be satisfied by any of | 21 | | the following:
| 22 | | (A) automobile liability insurance maintained by a | 23 | | participating TNC driver;
| 24 | | (B) automobile liability company insurance | 25 | | maintained by a transportation network company; or
| 26 | | (C) any combination of subparagraphs (A) and (B).
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| 1 | | (2) Insurance coverage provided under this subsection | 2 | | (c) shall also provide for uninsured motorist coverage and | 3 | | underinsured motorist coverage in the amount of $50,000 | 4 | | from the moment a passenger enters the vehicle of a | 5 | | participating TNC driver until the passenger exits the | 6 | | vehicle.
| 7 | | (3) The insurer, in the case of insurance coverage | 8 | | provided under this subsection (c), shall have the duty to | 9 | | defend and indemnify the insured.
| 10 | | (4) Coverage under an automobile liability insurance | 11 | | policy required under this subsection (c) shall not be | 12 | | dependent on a personal automobile insurance policy first | 13 | | denying a claim nor shall a personal automobile insurance | 14 | | policy be required to first deny a claim. | 15 | | (d) In every instance when automobile liability insurance | 16 | | maintained by a participating TNC driver to fulfill the | 17 | | insurance obligations of this Section has lapsed or ceased to | 18 | | exist, the transportation network company shall provide the | 19 | | coverage required by this Section beginning with the first | 20 | | dollar of a claim. | 21 | | (e) This Section shall not limit the liability of a | 22 | | transportation network company arising out of an automobile | 23 | | accident involving a participating TNC driver in any action for | 24 | | damages against a transportation network company for an amount | 25 | | above the required insurance coverage. | 26 | | (f) The transportation network company shall disclose in |
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| 1 | | writing to TNC drivers, as part of its agreement with those TNC | 2 | | drivers, the following:
| 3 | | (1) the insurance coverage and limits of liability that | 4 | | the transportation network company provides while the TNC | 5 | | driver uses a vehicle in connection with a transportation | 6 | | network company's digital network or software application; | 7 | | and
| 8 | | (2) that the TNC driver's own insurance policy may not | 9 | | provide coverage while the TNC driver uses a vehicle in | 10 | | connection with a transportation network company digital | 11 | | network depending on its terms. | 12 | | (g) An insurance policy required by this Section may be | 13 | | placed with an admitted Illinois insurer, or with an authorized | 14 | | surplus line insurer under Section 445 of the Illinois | 15 | | Insurance Code; and is not subject to any restriction or | 16 | | limitation on the issuance of a policy contained in Section | 17 | | 445a of the Illinois Insurance Code. | 18 | | (h) Any insurance policy required by this Section shall | 19 | | satisfy the financial responsibility requirement for a motor | 20 | | vehicle under Sections 7-203 and 7-601 of the Illinois Vehicle | 21 | | Code. | 22 | | Section 15. Driver requirements. | 23 | | (a) Prior to permitting an individual to act as a TNC | 24 | | driver on its digital platform, the TNC shall: | 25 | | (1) require the individual to submit an application to |
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| 1 | | the TNC, which includes information regarding his or her | 2 | | address, age, driver's license, driving history, motor | 3 | | vehicle registration, automobile liability insurance, and | 4 | | other information required by the TNC; | 5 | | (2) conduct, or have a third party conduct, a local and | 6 | | national criminal history background check for each | 7 | | individual applicant that shall include: | 8 | | (A) Multi-State or Multi-Jurisdictional Criminal | 9 | | Records Locator or other similar commercial nationwide
| 10 | | database with validation (primary source search); and
| 11 | | (B) National Sex Offenders Registry database; and | 12 | | (3) obtain and review a driving history research report | 13 | | for the individual. | 14 | | (b) The TNC shall not permit an individual to act as a TNC | 15 | | driver on its digital platform who: | 16 | | (1) has had more than 3 moving violations in the prior | 17 | | three-year period, or one major violation in the prior | 18 | | three-year period including, but not limited to, | 19 | | attempting to evade the police, reckless driving, or | 20 | | driving on a suspended or revoked license; | 21 | | (2) has been convicted, within the past 7 years, of | 22 | | driving under the influence of drugs or alcohol, fraud, | 23 | | sexual offenses, use of a motor vehicle to commit a felony, | 24 | | a crime involving property damage, or theft, acts of | 25 | | violence, or acts of terror; | 26 | | (3) is a match in the National Sex Offenders Registry |
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| 1 | | database; | 2 | | (4) does not possess a valid driver's license; | 3 | | (5) does not possess proof of registration for the | 4 | | motor vehicle used to provide TNC services; | 5 | | (6) does not possess proof of automobile liability | 6 | | insurance for the motor vehicle used to provide TNC | 7 | | services; or | 8 | | (7) is under 19 years of age. | 9 | | Section 20. Non-discrimination. | 10 | | (a) The TNC shall adopt and notify TNC drivers of a policy | 11 | | of non-discrimination on the basis of destination, race, color, | 12 | | national origin, religious belief or affiliation, sex, | 13 | | disability, age, sexual orientation, or gender identity with | 14 | | respect to passengers and potential passengers. | 15 | | (b) TNC drivers shall comply with all applicable laws | 16 | | regarding non-discrimination against passengers or potential | 17 | | passengers on the basis of destination, race, color, national | 18 | | origin, religious belief or affiliation, sex, disability, age, | 19 | | sexual orientation, or gender identity. | 20 | | (c) TNC drivers shall comply with all applicable laws | 21 | | relating to accommodation of service animals. | 22 | | (d) A TNC shall not impose additional charges for providing | 23 | | services to persons with physical disabilities because of those | 24 | | disabilities. | 25 | | (e) A TNC shall provide passengers an opportunity to |
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| 1 | | indicate whether they require a wheelchair accessible vehicle. | 2 | | If a TNC cannot arrange wheelchair-accessible TNC service in | 3 | | any instance, it shall direct the passenger to an alternate | 4 | | provider of wheelchair-accessible service, if available. | 5 | | (f) If a unit of local government has requirements for | 6 | | licensed chauffeurs not to discriminate in providing service in | 7 | | under-served areas, TNC drivers participating in TNC services | 8 | | within that unit of local government shall be subject to the | 9 | | same non-discrimination requirements for providing service in | 10 | | under-served areas. | 11 | | Section 25. Safety. | 12 | | (a) The TNC shall implement a zero tolerance policy on the | 13 | | use of drugs or alcohol while a TNC driver is providing TNC | 14 | | services or is logged into the TNC's digital network but is not | 15 | | providing TNC services. | 16 | | (b) The TNC shall provide notice of the zero tolerance | 17 | | policy on its website, as well as procedures to report a | 18 | | complaint about a driver with whom a passenger was matched and | 19 | | whom the passenger reasonably suspects was under the influence | 20 | | of drugs or alcohol during the course of the trip. | 21 | | (c) Upon receipt of a passenger's complaint alleging a | 22 | | violation of the zero tolerance policy, the TNC shall | 23 | | immediately suspend the TNC driver's access to the TNC's | 24 | | digital platform, and shall conduct an investigation into the | 25 | | reported incident. The suspension shall last the duration of |
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| 1 | | the investigation. | 2 | | (d) The TNC shall require that any motor vehicle that a TNC | 3 | | driver will use to provide TNC services meets vehicle safety | 4 | | and emissions requirements for a private motor vehicle in this | 5 | | State. | 6 | | (e) TNCs or TNC drivers are not common carriers, contract | 7 | | carriers or motor carriers, as defined by applicable State law, | 8 | | nor do they provide taxicab or for-hire vehicle service. | 9 | | Section 30. Operational. | 10 | | (a) A TNC may charge a fare for the services provided to | 11 | | passengers; provided that, if a fare is charged, the TNC shall | 12 | | disclose to passengers the fare calculation method on its | 13 | | website or within the software application service. | 14 | | (b) The TNC shall provide passengers with the applicable | 15 | | rates being charged and the option to receive an estimated fare | 16 | | before the passenger enters the TNC driver's vehicle. | 17 | | (c) The TNC's software application or website shall display | 18 | | a picture of the TNC driver, and the license plate number of | 19 | | the motor vehicle utilized for providing the TNC service before | 20 | | the passenger enters the TNC driver's vehicle. | 21 | | (d) Within a reasonable period of time following the | 22 | | completion of a trip, a TNC shall transmit an electronic | 23 | | receipt to the passenger that lists: | 24 | | (1) the origin and destination of the trip; | 25 | | (2) the total time and distance of the trip; and |
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| 1 | | (3) an itemization of the total fare paid, if any. | 2 | | (e) Dispatches for TNC services shall be made only to | 3 | | eligible TNC drivers under Section 15 of this Act who are | 4 | | properly licensed under State law and local ordinances | 5 | | addressing these drivers if applicable. | 6 | | (f) A taxicab may accept a request for transportation | 7 | | received through a TNC's digital network or software | 8 | | application service, and may charge a fare for those services | 9 | | that is similar to those charged by a TNC. | 10 | | Section 35. The Ridesharing Arrangements Act is amended by | 11 | | changing Section 2 as follows:
| 12 | | (625 ILCS 30/2) (from Ch. 95 1/2, par. 902)
| 13 | | Sec. 2.
(a) "Ridesharing arrangement" means the | 14 | | transportation by motor
vehicle of not more than 16 persons | 15 | | (including the driver):
| 16 | | (1) for purposes incidental to another purpose of the | 17 | | driver, for which
no fee is charged or paid except to reimburse | 18 | | the driver or owner of the
vehicle for his operating expenses | 19 | | on a nonprofit basis; or
| 20 | | (2) when such persons are travelling between their homes | 21 | | and their places
of employment, or places reasonably convenient | 22 | | thereto, for which (i) no
fee is charged or paid except to | 23 | | reimburse the driver or owner of the vehicle
for his operating | 24 | | expenses on a nonprofit basis, or (ii) a fee is charged
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| 1 | | accordance with the provisions of Section 6 of this Act.
| 2 | | (b) "For-profit ridesharing arrangement" means a | 3 | | ridesharing arrangement for
which a fee is charged in | 4 | | accordance with Section 6 of this Act , and does not include | 5 | | transportation network company services under the | 6 | | Transportation Network Providers Act .
| 7 | | (Source: P.A. 83-1091.)
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