Public Act 098-1173
 
SB2774 EnrolledLRB098 17851 ZMM 52975 b

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