G17-15 Ordinance No.G17-15
AN ORDINANCE
ESTABLISHING REGULATIONS FOR TRANSPORTATION
NETWORK COMPANY SERVICES
WHEREAS, the City of Elgin is a home rule unit pursuant to Article VII Section 6 of the
Illinois Constitution; and
WHEREAS,as a home rule unit,the City of Elgin may exercise any power and perform any
function pertaining to its government and affairs,including,but not limited to,the power to regulate
for the protection of the public health, safety, morals and welfare and to license; and
WHEREAS, the City Council of the City of Elgin has determined that it is necessary and
desirable to establish regulations to ensure the safety, reliability and cost effectiveness of
transportation network company (TNC) services within the City of Elgin and to preserve and
enhance access to this important transportation option for residents and to visitors to the City of
Elgin; and
WHEREAS,the establishment of such regulations providing for the protection of the public
health, safety and welfare pertains to the government and affairs of the City.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
ELGIN, ILLINOIS:
Section 1. That Title 6 of the Elgin Municipal Code, 1976,as amended,entitled"Business
Licenses and Regulations" be and is hereby further amended by adding a new chapter 6.74 thereto
entitled "Transportation Network Company Services" to read as follows:
"CHAPTER 6.74
TRANSPORTATION NETWORK COMPANY SERVICES
6.74.010 DEFINITIONS:
Unless otherwise stated, the following terms, shall for the purposes of this chapter be construed as
defined in this section:
"TRANSPORTATION NETWORK COMPANY"or"TNC"means an entity operating in the City of
Elgin 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.
"TRANSPORTATION NETWORK VEHICLE"means any vehicle used to provide a transportation
network service.
"VEHICLE AGE" means the age of a vehicle computed by totaling the number of years from the
model year to the calendar year, including both. For example, a vehicle with a model year of 2012
has a vehicle age of four years in the 2015 calendar year(2012 plus 2013 plus 2014 plus 2015).
6.74.020 TNC LICENSE REQUIRED:
A. No person shall operate or permit to be operated a TNC in the City without first
having obtained a license from the City to do so.
B. The City's Chief Financial Officer shall issue a license to each applicant that meets the
requirements for a TNC set forth in this chapter and pays an annual license fee of Five Hundred
Dollars($500.00)to the City of Elgin. All licenses provided for in this chapter shall expire on April
30 following the date of issuance.
6.74.030 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, $1 00,000 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.
I. Any transportation network driver shall, in the transportation network vehicle at all
times:
1. Carry proof of the insurance policies required in this chapter covering the TNC
vehicle;
2. Carry an electronic or paper copy of the agreement or terms of service between
the TNC driver and the TNC; and
3. Display the TNC's distinctive emblem provided for in Section 6.74.120C.
6.74.040 TNC 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.
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 three(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 seven (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 nineteen(19)years of age.
6.74.050 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 identify.
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.
6.74.060 ZERO TOLERANCE FOR DRUG OR ALCOHOL USE:
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 maintain records relevant to the enforcement of this requirement for a
period of at least two (2)years from the date that a passenger's complaint is received by the TNC.
6.74.070 VEHICLE SAFETY AND EMISSIONS:
A. The TNC shall require that any motor vehicle(s)that a TNC driver will use to provide
TNC services meets the applicable safety and emission requirements for a private motor vehicle
under the Illinois Vehicle Code (625 ILCS 5/12-100 thru 12-613).
B. No TNC shall allow and no TNC driver shall operate or permit a TNC vehicle to be
operated unless such TNC vehicle is in a safe condition for the transportation of passengers, is well
painted and in good mechanical condition and meets the safety and other requirements of this
chapter. The Chief of Police or the Chiefs designee may require at any time reasonable evidence
that a motor vehicle that a TNC driver will use to provide TNC services is in good mechanical
condition and meets the safety and other requirements of this chapter. The TNC shall require TNC
drivers to permit and TNC drivers shall permit reasonable inspections of TNC vehicles by city
employees as may be required by the Chief of Police or equivalent testing certification as may be
permitted by the Chief of Police.
C. In the event a TNC vehicle is involved in an accident with a pedestrian in which the
pedestrian suffers any bodily injury,the TNC driver of such TNC vehicle shall submit to a chemical
test or tests of blood,breath or urine for the purpose of determining the content of alcohol, or other
drug or drugs, or intoxicating compound or compounds or any combination thereof in the TNC
driver's blood at the direction of the law enforcement officer responding to said collision.
D. If the TNC driver refuses testing or submits to a test that discloses an alcohol
concentration of 0.08 or more,or any amount of a drug, substance,or intoxicating compound in the
person's breath,blood or urine resulting from the unlawful use or consumption of cannabis listed in
the Illinois Cannabis Control Act, a controlled substance listed in the Illinois Control Substances
Act, an intoxicating compound listed in the Illinois Use of Intoxicating Compounds Act, or
methamphetamine as listed in the Illinois Methamphetamine Control and Community Protection Act,
the law enforcement officer shall immediately submit a sworn report to the Chief of Police certifying
that the test or tests was or were requested under subsection B of this section and the TNC driver
refused to submit to a test,or tests,or submitted to testing that disclosed an alcohol concentration of
0.08 or more and/or the unlawful use or consumption of drugs. Such statement or information shall
also be provided to the TNC which had engaged such TNC driver.
6.74.080 INSPECTIONS:
No TNC shall allow and no TNC driver shall operate any vehicles to be used as a transportation
network vehicle unless such vehicle is inspected as required by this chapter. Any motor vehicle(s)
that a TNC driver will use to provide TNC services that has a vehicle age of more than five(5)years
shall obtain annual written certification from a city-approved vehicle inspection station affirming that
the vehicle(s) that a TNC driver will use to provide TNC services is being maintained in a safe
operating condition and in accordance with the requirements of this chapter. A list of city-approved
vehicle inspection stations shall be provided to each TNC that applies for a license pursuant to this
chapter by the police department's traffic investigations unit. When a motor vehicle that a TNC
driver will use to provide TNC services has been inspected and approved for operation as a public
passenger vehicle or a TNC vehicle by an Illinois police department or municipality other than the
City of Elgin, the TNC or the TNC driver may provide the City police department's traffic
investigations unit with written proof of such approval. The Chief of Police may accept such written
approval from an Illinois police department or other municipality than the City of Elgin in lieu of the
vehicle inspection required in this section provided any such written approval was issued within the
previous one year. The TNC shall require TNC drivers to maintain and TNC drivers shall maintain
complete documentation of such inspections in the TNC vehicle at all times while being used to
provide transportation network services,and a written copy of such documentation shall be provided
to the police department's traffic investigations unit or a police officer upon request.
6.74.090 ALCOHOLIC BEVERAGES:
No person may drink any alcoholic liquor while such person is operating or being transported by a
transportation network vehicle, nor may any person transport, carry, possess or have any alcoholic
liquor while being transported by a transportation network vehicle, except in the original package
with the seal unbroken.
6.74.100 SANITATION:
While in operation, every motor vehicle that a TNC driver uses to provide TNC services shall be
kept in a neat and clean condition and the interior shall be clean and free of foreign material or
substance;the windows shall be clean,clear and free from cracks;the upholstery shall be free of dirt
or other foreign substance likely to soil clothing and it shall be free of cracks,holes,tears or a loss of
padding. Vehicle exteriors shall be free of excessive rust, excessive paint damage, excessive dents
or scrapes or other body damage. The Chief of Police may require reasonable evidence of good
mechanical condition at any time. The TNC shall require the TNC drivers to provide and the TNC
drivers shall permit reasonable inspections of motor vehicle(s) that a TNC driver uses to provide
TNC services to ensure compliance with provisions of this chapter as may be required by the Chief
of Police.
6.74.110 FARE CHARGED FOR SERVICES:
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.
6.74.120 IDENTIFICATION OF TNC DRIVERS AND VEHICLES:
A. The TNC 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.
B. The TNC shall issue an identification card to TNC drivers that such TNC engages.
Such identification card shall have the name of the TNC driver and a photograph permanently
attached to the identification card. Any TNC driver shall display the identification card at all times
while operating a transportation network vehicle.
C. A transportation network vehicle shall display a consistent and distinctive emblem at
all times while being used to provide transportation network services. The distinctive signage shall
be sufficiently large and color contrasted as to be readable during daylight hours at a distance of fifty
feet(50')and to identify a particular vehicle associated with a particular TNC. Acceptable forms of
distinctive signage include,but are not limited to,symbols or signs on vehicle doors,roofs,or grills.
Magnetic or other removable distinctive signage is acceptable. A TNC shall file an illustration of
their distinctive signage with the Chief of Police.
6.74.130 ELECTRONIC RECEIPT:
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.
6.74.140 DISPATCHES ONLY TO ELIGIBLE TNC DRIVERS:
Dispatches for TNC services shall be made only to eligible TNC drivers who are properly licensed
under state law and qualify as a TNC driver under the requirements of this chapter.
6.74.150 AGENT:
The TNC must maintain an agent for service of process in the State of Illinois.
6.74.160 STREET HAILS AND USE OF CAB STANDS PROHBITIED:
A. A TNC driver shall exclusively accept rides booked through a TNC digital network or
software application service and shall not solicit, accept or respond to passenger's or potential
passenger's request for service via traditional street hail, including hand gestures and verbal
statements.
B. No TNC driver operating a transportation network vehicle shall be parked,stopped or
standing at a cab stand.
6.74.170 NO CASH TRIPS:
The TNC shall adopt a policy prohibiting solicitation or acceptance of cash payments from
passengers and notify TNC drivers of such policies. TNC drivers shall not solicit or accept cash
payments from passengers. Any payment for TNC services shall be made only electronically using
the TNC's digital network or software application.
6.74.180 PASSENGERS:
No person shall occupy any transportation network vehicle in excess of the seating capacity of such
vehicle at any time. It shall be the duty of the TNC driver of such transportation network vehicle not
to permit any persons in excess of the seating capacity of such transportation network vehicle to be in
the transportation network vehicle under his control at any time. No more than one(1)person may
occupy the front seat of a transportation network vehicle and then only when there are more than
three (3)passengers occupying the transportation network vehicle.
6.74.190 RECORDS:
A TNC shall maintain individual trip records for at least one (1) year from the date each trip was
provided and TNC driver records at least until the one-year anniversary of the date on which a TNC
driver's activation on the TNC digital network has ended.
6.74.200 NO DUTY OR LIABILITY IMPOSED:
Nothing herein shall be construed to create any duty on the part of the City, its officers and
employees to inspect any TNC vehicle or with respect to the condition or safety of any TNC vehicle
or the operation thereof. Further,the City,its officers and employees, shall have no duty respecting
nor shall they be liable for any inspection,failure to inspect or improper inspection of TNC vehicles.
6.74.210 APPLICATION:
Persons seeking license to operate a TNC pursuant to the provisions of this chapter shall submit an
application to the police department's traffic investigations unit on the form supplied by and
containing such information as may be required by the police department. The fiscal services
department shall issue such licenses or provide a written denial of such application within thirty(30)
days of their submission. Any denial shall state the reasons for the denial, and shall inform the
applicant that the applicant may appeal the denial by submitting such appeal in writing to the chief
financial officer within fifteen (15) days of the date of the denial.
6.74.220 APPEALS:
Any person who has been denied a license pursuant to the provisions of this chapter may appeal such
denial to the City's Chief Financial Officer within fifteen(15)days of the date of such denial. Such
person shall be provided an opportunity to provide reasonable evidence that such person qualifies for
a license pursuant to this chapter and other applicable requirements of law and that the granting of a
TNC license to such person will not pose an unreasonable risk to the physical safety of the public.
Based upon the receipt of such evidence,and other applicable relevant evidence the Chief Financial
Officer shall issue a license or a denial of an appeal within fifteen (15) days of such appeal. Any
denial of an appeal shall be in writing,and shall state the findings of the Chief Financial Officer and
the reasons for such denial.
6.74.230 PENALTY FOR VIOLATION:
A. Any person violating any of the provisions or failure to comply with any of the
mandatory requirements of this chapter shall be guilty of an offense. Any person convicted of an
offense under this chapter, in addition to other legal and equitable remedies available to the City,
shall be punished by a fine of not less than Five Hundred Dollars ($500) no more than Two
Thousand Dollars ($2,000).
B. Any person shall be guilty of a separate offense for each and every day during any
portion of which any violation or provision of this chapter is committed, continued or permitted by
any such person and he shall be punished accordingly.
C. The levy and/or payment of any penalty or fine in this chapter shall not be deemed a
waiver of the power of the City of Elgin to suspend,revoke or refuse to renew any license otherwise
issued by the City of Elgin.
6.74.240 SEVERABILITY:
If any provision,clause, sentence,paragraph,section or part of this chapter or application thereof to
any person or circumstance, shall or any reason to be adjudged by a court of competent jurisdiction
to be unconstitutional or invalid,said judgment shall not effect,impair or invalidate the remainder of
this chapter and the application of such provision to other persons or circumstances, but shall be
confined in its operation to the provision,clause,sentence,paragraph,section or part thereof directly
involved in the controversy in which such judgment shall have been rendered and to the person or
circumstances involved. It is hereby declared to be the legislative intent of the city council that this
chapter would have been adopted had such constitutional or invalid provision, clause, sentence,
paragraph, section or part thereof not been included."
Section 2. That all ordinances or parts of ordinances in conflict with the provisions of this
ordinance be and are hereby repealed to the extent of any such conflict.
Section 3. That this ordinance shall be in full force and effect upon its passage and
publication in the manner provided by law.
s/David J. Kaptain
David J. Kaptain, Mayor
Presented: May 27, 2015
Passed: May 27, 2015
Vote: Yeas: 7 Nays: 2
Recorded: May 27, 2015
Published: May 8, 2015
Attest:
s/Kimberly Dewis
Kimberly Dewis, City Clerk