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


Rep. Michael J. Zalewski

Filed: 12/2/2014





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2    AMENDMENT NO. ______. Amend Senate Bill 2774 by replacing
3everything after the enacting clause with the following:
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



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1    the individual;
2        (2) not a taxicab or for-hire public passenger vehicle;
3    and
4        (3) used to provide transportation network company
5    services.
6    "Transportation network company services" or "TNC
7services" means transportation of a passenger between points
8chosen by the passenger and prearranged with a TNC driver
9through the use of a TNC digital network or software
10application. TNC services shall begin when a TNC driver accepts
11a request for transportation received through the TNC's digital
12network or software application service, continue while the TNC
13driver transports the passenger in the TNC driver's vehicle,
14and end when the passenger exits the TNC driver's vehicle. TNC
15service is not a taxicab, for-hire vehicle, or street hail
17    Section 10. Insurance.
18    (a) Transportation network companies and participating TNC
19drivers shall comply with the automobile liability insurance
20requirements of this Section as required.
21    (b) The following automobile liability insurance
22requirements shall apply from the moment a participating TNC
23driver logs on to the transportation network company's digital
24network or software application until the TNC driver accepts a
25request to transport a passenger, and from the moment the TNC



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1driver completes the transaction on the digital network or
2software application or the ride is complete, whichever is
3later, until the TNC driver either accepts another ride request
4on the digital network or software application or logs off the
5digital network or software application:
6        (1) Automobile liability insurance shall be in the
7    amount of at least $50,000 for death and personal injury
8    per person, $100,000 for death and personal injury per
9    incident, and $25,000 for property damage.
10        (2) Contingent automobile liability insurance in the
11    amounts required in paragraph (1) of this subsection (b)
12    shall be maintained by a transportation network company and
13    provide coverage in the event a participating TNC driver's
14    own automobile liability policy excludes coverage
15    according to its policy terms or does not provide at least
16    the limits of coverage required in paragraph (1) of this
17    subsection (b).
18    (c) The following automobile liability insurance
19requirements shall apply from the moment a TNC driver accepts a
20ride request on the transportation network company's digital
21network or software application until the TNC driver completes
22the transaction on the digital network or software application
23or until the ride is complete, whichever is later:
24        (1) Automobile liability insurance shall be primary
25    and in the amount of $1,000,000 for death, personal injury,
26    and property damage. The requirements for the coverage



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1    required by this paragraph (1) may be satisfied by any of
2    the following:
3            (A) automobile liability insurance maintained by a
4        participating TNC driver;
5            (B) automobile liability company insurance
6        maintained by a transportation network company; or
7            (C) any combination of subparagraphs (A) and (B).
8        (2) Insurance coverage provided under this subsection
9    (c) shall also provide for uninsured motorist coverage and
10    underinsured motorist coverage in the amount of $50,000
11    from the moment a passenger enters the vehicle of a
12    participating TNC driver until the passenger exits the
13    vehicle.
14        (3) The insurer, in the case of insurance coverage
15    provided under this subsection (c), shall have the duty to
16    defend and indemnify the insured.
17        (4) Coverage under an automobile liability insurance
18    policy required under this subsection (c) shall not be
19    dependent on a personal automobile insurance policy first
20    denying a claim nor shall a personal automobile insurance
21    policy be required to first deny a claim.
22    (d) In every instance when automobile liability insurance
23maintained by a participating TNC driver to fulfill the
24insurance obligations of this Section has lapsed or ceased to
25exist, the transportation network company shall provide the
26coverage required by this Section beginning with the first



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1dollar of a claim.
2    (e) This Section shall not limit the liability of a
3transportation network company arising out of an automobile
4accident involving a participating TNC driver in any action for
5damages against a transportation network company for an amount
6above the required insurance coverage.
7    (f) The transportation network company shall disclose in
8writing to TNC drivers, as part of its agreement with those TNC
9drivers, the following:
10        (1) the insurance coverage and limits of liability that
11    the transportation network company provides while the TNC
12    driver uses a vehicle in connection with a transportation
13    network company's digital network or software application;
14    and
15        (2) that the TNC driver's own insurance policy may not
16    provide coverage while the TNC driver uses a vehicle in
17    connection with a transportation network company digital
18    network depending on its terms.
19    (g) An insurance policy required by this Section may be
20placed with an admitted Illinois insurer, or with an authorized
21surplus line insurer under Section 445 of the Illinois
22Insurance Code; and is not subject to any restriction or
23limitation on the issuance of a policy contained in Section
24445a of the Illinois Insurance Code.
25    (h) Any insurance policy required by this Section shall
26satisfy the financial responsibility requirement for a motor



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1vehicle under Sections 7-203 and 7-601 of the Illinois Vehicle
3    Section 15. Driver requirements.
4    (a) Prior to permitting an individual to act as a TNC
5driver on its digital platform, the TNC shall:
6        (1) require the individual to submit an application to
7    the TNC, which includes information regarding his or her
8    address, age, driver's license, driving history, motor
9    vehicle registration, automobile liability insurance, and
10    other information required by the TNC;
11        (2) conduct or have a third party conduct, a local and
12    national criminal history background check for each
13    individual applicant that shall include:
14            (A) Multi-State or Multi-Jurisdictional Criminal
15        Records Locator or other similar commercial nationwide
16        database with validation (primary source search); and
17            (B) National Sex Offenders Registry database; and
18        (3) obtain and review a driving history research report
19    for the individual.
20    (b) The TNC shall not permit an individual to act as a TNC
21driver on its digital platform who:
22        (1) has had more than 3 moving violations in the prior
23    three-year period, or one major violation in the prior
24    three-year period including, but not limited to,
25    attempting to evade the police, reckless driving, or



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1    driving on a suspended or revoked license;
2        (2) has been convicted, within the past 7 years, of
3    driving under the influence of drugs or alcohol, fraud,
4    sexual offenses, use of a motor vehicle to commit a felony,
5    a crime involving property damage, or theft, acts of
6    violence, or acts of terror;
7        (3) is a match in the National Sex Offenders Registry
8    database;
9        (4) does not possess a valid driver's license;
10        (5) does not possess proof of registration for the
11    motor vehicle used to provide TNC services;
12        (6) does not possess proof of automobile liability
13    insurance for the motor vehicle used to provide TNC
14    services; or
15        (7) is under 19 years of age.
16    Section 20. Non-discrimination.
17    (a) The TNC shall adopt and notify TNC drivers of a policy
18of non-discrimination on the basis of destination, race, color,
19national origin, religious belief or affiliation, sex,
20disability, age, sexual orientation, or gender identity with
21respect to passengers and potential passengers.
22    (b) TNC drivers shall comply with all applicable laws
23regarding non-discrimination against passengers or potential
24passengers on the basis of destination, race, color, national
25origin, religious belief or affiliation, sex, disability, age,



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1sexual orientation, or gender identity.
2    (c) TNC drivers shall comply with all applicable laws
3relating to accommodation of service animals.
4    (d) A TNC shall not impose additional charges for providing
5services to persons with physical disabilities because of those
7    (e) A TNC shall provide passengers an opportunity to
8indicate whether they require a wheelchair accessible vehicle.
9If a TNC cannot arrange wheelchair-accessible TNC service in
10any instance, it shall direct the passenger to an alternate
11provider of wheelchair-accessible service, if available.
12    (f) If a unit of local government has requirements for
13licensed chauffeurs not to discriminate in providing service in
14under-served areas, TNC drivers participating in TNC services
15within that unit of local government shall be subject to the
16same non-discrimination requirements for providing service in
17under-served areas.
18    Section 25. Safety.
19    (a) The TNC shall implement a zero tolerance policy on the
20use of drugs or alcohol while a TNC driver is providing TNC
21services or is logged into the TNC's digital network but is not
22providing TNC services.
23    (b) The TNC and shall provide notice of the zero tolerance
24policy on its website, as well as procedures to report a
25complaint about a driver with whom a passenger was matched and



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1whom the passenger reasonably suspects was under the influence
2of drugs or alcohol during the course of the trip.
3    (c) Upon receipt of a passenger's complaint alleging a
4violation of the zero tolerance policy, the TNC shall
5immediately suspend the TNC driver's access to the TNC's
6digital platform, and shall conduct an investigation into the
7reported incident. The suspension shall last the duration of
8the investigation.
9    (d) The TNC shall require that any motor vehicle that a TNC
10driver will use to provide TNC Services meets vehicle safety
11and emissions requirements for a private motor vehicle in this
13    (e) TNCs or TNC drivers are not common carriers, contract
14carriers or motor carriers, as defined by applicable state law,
15nor do they provide taxicab or for-hire vehicle service.
16    Section 30. Operational.
17    (a) A TNC may charge a fare for the services provided to
18passengers; provided that, if a fare is charged, the TNC shall
19disclose to passengers the fare calculation method on its
20website or within the software application service.
21    (b) The TNC shall provide passengers with the applicable
22rates being charged and the option to receive an estimated fare
23before the passenger enters the TNC driver's vehicle.
24    (c) The TNC's software application or website shall display
25a picture of the TNC driver, and the license plate number of



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1the motor vehicle utilized for providing the TNC service before
2the passenger enters the TNC driver's vehicle.
3    (d) Within a reasonable period of time following the
4completion of a trip, a TNC shall transmit an electronic
5receipt to the passenger that lists:
6        (1) the origin and destination of the trip;
7        (2) the total time and distance of the trip; and
8        (3) an itemization of the total fare paid, if any.
9    (e) Dispatches for TNC services shall be made only to
10eligible TNC drivers under Section 15 of this Act who are
11properly licensed under State law and local ordinances
12addressing these drivers if applicable.
13    (f) A taxicab may accept a request for transportation
14received through a TNC's digital network or software
15application service, and may charge a fare for those services
16that is similar to those charged by a TNC.
17    Section 35. The Ridesharing Arrangements Act is amended by
18changing Section 2 as follows:
19    (625 ILCS 30/2)  (from Ch. 95 1/2, par. 902)
20    Sec. 2. (a) "Ridesharing arrangement" means the
21transportation by motor vehicle of not more than 16 persons
22(including the driver):
23    (1) for purposes incidental to another purpose of the
24driver, for which no fee is charged or paid except to reimburse



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1the driver or owner of the vehicle for his operating expenses
2on a nonprofit basis; or
3    (2) when such persons are travelling between their homes
4and their places of employment, or places reasonably convenient
5thereto, for which (i) no fee is charged or paid except to
6reimburse the driver or owner of the vehicle for his operating
7expenses on a nonprofit basis, or (ii) a fee is charged in
8accordance with the provisions of Section 6 of this Act.
9    (b) "For-profit ridesharing arrangement" means a
10ridesharing arrangement for which a fee is charged in
11accordance with Section 6 of this Act, and does not include
12transportation network company services under the
13Transportation Network Providers Act.
14(Source: P.A. 83-1091.)".