Illinois General Assembly - Full Text of SB2774
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Full Text of SB2774  98th General Assembly




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1    AN ACT concerning regulation.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 1. Short title. This Act may be cited as the
5Transportation Network Providers Act.
6    Section 5. Definitions.
7    "Transportation network company" or "TNC" means an entity
8operating in this State that uses a digital network or software
9application service to connect passengers to transportation
10network company services provided by transportation network
11company drivers. A TNC is not deemed to own, control, operate,
12or manage the vehicles used by TNC drivers, and is not a
13taxicab association or a for-hire vehicle owner.
14    "Transportation network company driver" or "TNC driver"
15means 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
23services" means transportation of a passenger between points



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1chosen by the passenger and prearranged with a TNC driver
2through the use of a TNC digital network or software
3application. TNC services shall begin when a TNC driver accepts
4a request for transportation received through the TNC's digital
5network or software application service, continue while the TNC
6driver transports the passenger in the TNC driver's vehicle,
7and end when the passenger exits the TNC driver's vehicle. TNC
8service is not a taxicab, for-hire vehicle, or street hail
10    Section 10. Insurance.
11    (a) Transportation network companies and participating TNC
12drivers shall comply with the automobile liability insurance
13requirements of this Section as required.
14    (b) The following automobile liability insurance
15requirements shall apply from the moment a participating TNC
16driver logs on to the transportation network company's digital
17network or software application until the TNC driver accepts a
18request to transport a passenger, and from the moment the TNC
19driver completes the transaction on the digital network or
20software application or the ride is complete, whichever is
21later, until the TNC driver either accepts another ride request
22on the digital network or software application or logs off the
23digital 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
12requirements shall apply from the moment a TNC driver accepts a
13ride request on the transportation network company's digital
14network or software application until the TNC driver completes
15the transaction on the digital network or software application
16or 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
16maintained by a participating TNC driver to fulfill the
17insurance obligations of this Section has lapsed or ceased to
18exist, the transportation network company shall provide the
19coverage required by this Section beginning with the first
20dollar of a claim.
21    (e) This Section shall not limit the liability of a
22transportation network company arising out of an automobile
23accident involving a participating TNC driver in any action for
24damages against a transportation network company for an amount
25above the required insurance coverage.
26    (f) The transportation network company shall disclose in



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1writing to TNC drivers, as part of its agreement with those TNC
2drivers, 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
13placed with an admitted Illinois insurer, or with an authorized
14surplus line insurer under Section 445 of the Illinois
15Insurance Code; and is not subject to any restriction or
16limitation on the issuance of a policy contained in Section
17445a of the Illinois Insurance Code.
18    (h) Any insurance policy required by this Section shall
19satisfy the financial responsibility requirement for a motor
20vehicle under Sections 7-203 and 7-601 of the Illinois Vehicle
22    Section 15. Driver requirements.
23    (a) Prior to permitting an individual to act as a TNC
24driver 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
15driver 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
11of non-discrimination on the basis of destination, race, color,
12national origin, religious belief or affiliation, sex,
13disability, age, sexual orientation, or gender identity with
14respect to passengers and potential passengers.
15    (b) TNC drivers shall comply with all applicable laws
16regarding non-discrimination against passengers or potential
17passengers on the basis of destination, race, color, national
18origin, religious belief or affiliation, sex, disability, age,
19sexual orientation, or gender identity.
20    (c) TNC drivers shall comply with all applicable laws
21relating to accommodation of service animals.
22    (d) A TNC shall not impose additional charges for providing
23services to persons with physical disabilities because of those
25    (e) A TNC shall provide passengers an opportunity to



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1indicate whether they require a wheelchair accessible vehicle.
2If a TNC cannot arrange wheelchair-accessible TNC service in
3any instance, it shall direct the passenger to an alternate
4provider of wheelchair-accessible service, if available.
5    (f) If a unit of local government has requirements for
6licensed chauffeurs not to discriminate in providing service in
7under-served areas, TNC drivers participating in TNC services
8within that unit of local government shall be subject to the
9same non-discrimination requirements for providing service in
10under-served areas.
11    Section 25. Safety.
12    (a) The TNC shall implement a zero tolerance policy on the
13use of drugs or alcohol while a TNC driver is providing TNC
14services or is logged into the TNC's digital network but is not
15providing TNC services.
16    (b) The TNC shall provide notice of the zero tolerance
17policy on its website, as well as procedures to report a
18complaint about a driver with whom a passenger was matched and
19whom the passenger reasonably suspects was under the influence
20of drugs or alcohol during the course of the trip.
21    (c) Upon receipt of a passenger's complaint alleging a
22violation of the zero tolerance policy, the TNC shall
23immediately suspend the TNC driver's access to the TNC's
24digital platform, and shall conduct an investigation into the
25reported incident. The suspension shall last the duration of



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1the investigation.
2    (d) The TNC shall require that any motor vehicle that a TNC
3driver will use to provide TNC services meets vehicle safety
4and emissions requirements for a private motor vehicle in this
6    (e) TNCs or TNC drivers are not common carriers, contract
7carriers or motor carriers, as defined by applicable State law,
8nor 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
11passengers; provided that, if a fare is charged, the TNC shall
12disclose to passengers the fare calculation method on its
13website or within the software application service.
14    (b) The TNC shall provide passengers with the applicable
15rates being charged and the option to receive an estimated fare
16before the passenger enters the TNC driver's vehicle.
17    (c) The TNC's software application or website shall display
18a picture of the TNC driver, and the license plate number of
19the motor vehicle utilized for providing the TNC service before
20the passenger enters the TNC driver's vehicle.
21    (d) Within a reasonable period of time following the
22completion of a trip, a TNC shall transmit an electronic
23receipt 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
3eligible TNC drivers under Section 15 of this Act who are
4properly licensed under State law and local ordinances
5addressing these drivers if applicable.
6    (f) A taxicab may accept a request for transportation
7received through a TNC's digital network or software
8application service, and may charge a fare for those services
9that is similar to those charged by a TNC.
10    Section 35. The Ridesharing Arrangements Act is amended by
11changing Section 2 as follows:
12    (625 ILCS 30/2)  (from Ch. 95 1/2, par. 902)
13    Sec. 2. (a) "Ridesharing arrangement" means the
14transportation by motor vehicle of not more than 16 persons
15(including the driver):
16    (1) for purposes incidental to another purpose of the
17driver, for which no fee is charged or paid except to reimburse
18the driver or owner of the vehicle for his operating expenses
19on a nonprofit basis; or
20    (2) when such persons are travelling between their homes
21and their places of employment, or places reasonably convenient
22thereto, for which (i) no fee is charged or paid except to
23reimburse the driver or owner of the vehicle for his operating
24expenses on a nonprofit basis, or (ii) a fee is charged in



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1accordance with the provisions of Section 6 of this Act.
2    (b) "For-profit ridesharing arrangement" means a
3ridesharing arrangement for which a fee is charged in
4accordance with Section 6 of this Act, and does not include
5transportation network company services under the
6Transportation Network Providers Act.
7(Source: P.A. 83-1091.)