Article IX Transportation Network Providers

Shall have the meanings set forth under Section 5 of the Transportation Network Providers Act (625 ILCS 57/), which was enacted under Public Act 98-1173 and takes effect on June 1, 2015.

A TNC operates in the City of Bloomington and the Town of Normal if a TNC driver picks up a passenger in the jurisdictional boundaries of either the City of Bloomington or the Town of Normal.

§ 40-903 [Ch. 40, Sec. 903] Compliance with state law.

A TNC driver operates in the City of Bloomington and the Town of Normal if they pick up a passenger in the jurisdictional boundaries of either the City of Bloomington or the Town of Normal.

Each TNC and each TNC driver operating in Bloomington-Normal must comply with the provisions of the TNP Act. If a TNC or TNC driver operates in Bloomington-Normal before the effective date of the TNP Act, then the TNC or TNC driver must comply with the provisions of the TNP Act as if the Act were in effect as of the date that the TNC or TNC driver operates in Bloomington-Normal.

Failure of a TNC or TNC driver to comply with the provisions of the TNP Act will be deemed a violation of this Chapter and may subject the violator to revocation or suspension of any TNC license issued pursuant to this Article or to fines as provided in this Article.

§ 40-904 [Ch. 40, Sec. 904] Transportation network company license required.

No TNC may operate in Bloomington-Normal unless it obtains a TNC License. The application for a TNC License shall be made to the City Clerk in the form and manner required by that Department. The fee for application for license issuance or renewal shall be as set forth in the Schedule of Fees and upon the issuance of a license upon approval, the licensure fee shall be an amount as set forth in the Schedule of Fees. The licensure fee must be paid prior to the issuance of a license.

Each TNC License shall commence upon issuance and continue through April 30 of each year. Thereafter, if renewed, the TNC License will run annually, concurrent with the City's fiscal year of May 1 to April 30. Application for annual license renewal must be submitted to the City Clerk prior to the year for which renewal is sought. The application fee shall be nonrefundable regardless of whether a license is issued or renewed.

All applications for the renewal of a license shall be made in writing to the City Clerk not later than April 1 of each year. If the information and statements contained in the original application have not changed, in lieu of an application for renewal, a licensee may file with the City Clerk not later than April 1 of each year an affidavit stating that such facts and statements have not changed.

§ 40-905 [Ch. 40, Sec. 905] License fees; late fees.

The fee to be paid for the license herein required shall be an amount as set forth in the Schedule of Fees per year payable in advance and no license shall be issued until such fee has been paid. When a license is created by the City Clerk and is subsequently issued, the license fee shall be prorated on the basis of the remaining days of the calendar year in which the license is issued. Application fees shall not be prorated. The license shall expire on April 30 of each year. In the event of revocation or surrender of a license, no unearned portion of the license fee shall be refunded.

Each renewal license fee must be received by the City Clerk not later than April 1 unless the first falls on a holiday, in which case license fees may be received by the Clerk on the following business day. If a license fee is received late, the license holder must pay a late fee in the amount of 10% of the invoiced license fee and may be subject to the renewal license being denied.

§ 40-906 [Ch. 40, Sec. 906] Transportation network company application.

Each application for a TNC license shall be verified upon oath or affirmation and shall furnish, at a minimum, the following information:

If the license applicant is an individual:

The individual's full name, residence address, business address, business e-mail address and business telephone number; and

Proof that the applicant is at least 18 years of age.

If the license applicant is a corporation:

The corporate name, business address and telephone number of the applicant;

The date and state of incorporation;

The name, street address, mailing address and email address of a designated registered agent in the State of Illinois authorized to accept service of process and all notices required under this Article;

The applicant must be in good standing with the State of Illinois before a license will be issued.

If the license applicant is a partnership or limited-liability company:

The name, business address or principal office address and telephone number of the applicant;

The full names, residence addresses, e-mail addresses and residence telephone numbers of:

[1]

The three members who own the highest percentage interests in such partnership or limited-liability company,

[2]

The general partner of a partnership;

[3]

The managing partner of a limited-liability company; and

[4]

Any other member who owns a 25% or more interest therein;

The name, street address, mailing address and e-mail address of a designated registered agent in the State of Illinois authorized to accept service of process and all notices required under this Article; and

The applicant must be in good standing with the State of Illinois before a license will be issued.

In addition to the license application requirements listed in Subsection A, any applicant for license issuance or renewal shall provide to the Clerk:

The first names, middle initials, last names, driver's license numbers, and addresses of drivers registered with the applicant as of the date of the application, or upon request of the City, who will be providing TNC services in the City of Bloomington and the Town of Normal.

A sworn statement under oath by the TNC that:

The TNC has conducted the background checks as required by § 40-907 of this Chapter on any existing TNC drivers and will conduct such background checks on any future drivers prior to being allowed to operate for the TNC;

Background checks will be updated on all TNC drivers on an annual basis;

All TNC drivers have passed the TNC's background checks and are not disqualified under § 40-910B of this Chapter;

The TNC has ensured the vehicles of all TNC drivers have met the qualifications of § 40-913 of this Chapter; and

(e)

The TNC and all TNC drivers have met the insurance obligations set forth in § 40-911 of this Chapter.

The applicant's insurance policies as required by Section 10 of the Transportation Network Providers Act.

§ 40-907 [Ch. 40, Sec. 907] Transportation network company license qualifications.

Regular and twenty-four-hour emergency contact information, including a telephone number, for the TNC.

(5)

A plan on the provision of background checks as required by § 40-907H.

In order to qualify for a TNC license, whether upon initial application or upon application for renewal of a license:

An applicant shall comply with all applicable City of Bloomington, Town of Normal, State of Illinois, and federal laws and must not owe any debt to the City;

If the applicant is an entity, the applicant must be registered with the Illinois Secretary of State as an organization authorized to do business in the State of Illinois and be in good standing;

The applicant shall have a designated registered agent in the State of Illinois authorized to accept service of process and notices required by this Article; and

The applicant shall provide regular and twenty-four-hour emergency contact information, including a telephone number, for the TNC.

No applicant is eligible for a license if any transportation network company license held by the applicant, or by any officer or director of a corporate applicant or partner of a partnership applicant, has been revoked within the previous five years, or if the applicant, or any officer or director of a corporate applicant or partner in a partnership applicant, within the five years immediately preceding the date of his application, has been either convicted, or in custody, under parole or under any other noncustodial supervision resulting from a conviction in a court of any jurisdiction for the commission of any felony as defined by Article 2 of the Illinois Criminal Code of 2012, codified at 720 ILCS 5/2-0.5 et seq., or its equivalent under federal or other jurisdictional law.

No applicant is eligible for a license if the applicant, or any officer, director, or shareholder having any more than 25% of the shares in an entity applicant, or any partner in a partnership applicant, owes the City of Bloomington or Town of Normal any outstanding fines, judgment debts, past-due amounts for water or other City services, taxes, fees, or any other amounts. This provision may be waived by the City Manager of the municipality to whom the financial obligation is outstanding, provided that the applicant enters into and fully complies with a payment agreement providing for full payment to the jurisdiction of any and all outstanding obligations referred to in the preceding sentence. Any license issued pursuant to such an agreement shall be probationary in the sense that it shall be contingent upon full compliance with the agreement and shall be revoked upon failure to comply therewith.

No applicant is eligible for a license if the applicant, or any officer, director, or shareholder having more than 25% of the shares in an entity applicant, or any partner in a partnership applicant, has been found guilty of three or more violations of the Bloomington City Code or the ordinances of the Town of Normal in the past three years preceding the date of application.

Eligibility for issuance of any license under this Chapter shall be a continuing requirement for maintaining such license.

If the applicant meets the criteria set forth in this Section, the City Clerk issues or renews a TNC license.

If an application for the issuance or renewal of a license is denied, the City Clerk shall issue a written notice of denial, together with findings in support of the denial, to the applicant. The applicant may, within 10 days of the mailing of the notice of denial, make a written request for a hearing to appeal the denial. Failure to timely make such a request will waive the right to appeal. The request must be submitted to the Corporation Counsel located at 115 E. Washington Street, Bloomington, Illinois 61701. Upon receipt of a timely written request for a hearing, the Corporation Counsel's office shall schedule a hearing on the appeal in the City of Bloomington Administrative Court and shall send notice of the date and time of a hearing to the applicant. Said hearing shall be set for a date within 30 days of the Corporation Counsel's receipt of the request for an appeal. If, at the appeal hearing, the applicant establishes by a preponderance of the evidence that the denial was based upon incorrect findings, the City Clerk shall issue a license. If, at such hearing, the denial is found to have been based upon correct findings, or if the applicant fails to prove by a preponderance of the evidence that the findings forming the basis for the denial were incorrect, the denial shall become final. After entry of the final denial, the appellant shall be ineligible to make a new application for a period of 18 months.

Prior to a license being issued, the TNP must submit a written plan for how background checks will be conducted and affirm such background checks are being completed and will continue to be completed as set forth in the plan and in accordance with this Subsection. A local and national criminal background check, conducted through a third-party vendor, must be completed for each applicant. Any company that has been accredited by the National Association of Professional Background Screeners shall be pre-approved by the City to perform the required criminal background checks. Upon written application, the City Manager may approve additional companies that meet similar requirements. At a minimum, the criminal background checks shall include:

Multi-State/Multi-Jurisdiction Criminal Records Locator or other similar commercial nationwide database with validation (primary source search); and

§ 40-909 [Ch. 40, Sec. 908] Additional requirements for a transportation network company.

National Sex Offender Registry database.

§ 40-908 (Reserved)

The requirements under this Section are in addition to the requirements set forth in the TNP Act. Failure of a TNC to comply with the requirements of the TNP Act or of this Section will be a violation of this Code and may subject the licensee to suspension, revocation or fines as provided in this Article.

A TNC operating in Bloomington-Normal must comply with all of the following:

Upon notification from the City of Bloomington that a local TNC driver has been involved in illegal activities, the TNC shall immediately remove a driver from its network system and not reinstate that driver until adjudication of the alleged activities and re-qualification of the TNC driver.

A TNC shall maintain 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. These records shall include:

Records provided or gathered by the TNC pertaining to driver requirements mandated in Section 15 of the Transportation Network Providers Act;

Records of passenger complaints regarding drivers, investigation by the TNC of those complaints and any other records pertinent to passenger complaints or their investigation;

Accurate books and records of account of the licensee's operations in the City of Bloomington and Town of Normal;

A TNC shall maintain individual trip records for at least one year from the date each trip was provided. The individual trip record must include TNC driver and vehicle information, date and time of start and finish of trip, location of trip, passenger's personal identification, and fee charged for the service.

The TNC shall be required to abide by the auditing requirements set forth herein. The City, or a third party agreed upon by the City and a TNC, may audit the records of the TNC, including either specifically requested TNC drivers and/or a random sample of the TNC's records related to drivers, in accordance with all of the following:

Except for cause relating to repeated public complaints or infractions of this Article, the City may conduct a general audit of the records related TNC drivers no more than two times per year.

The audit shall take place at a third-party location agreed upon by the City and the TNC. If a location cannot be agreed upon, the audit shall take place at a law office within the Bloomington-Normal area as designated by the City's Corporation Counsel.

Upon a citation to a TNC driver and/or a complaint concerning a TNC driver, the City shall be permitted to audit the records of said TNC driver at any time.

§ 40-910 [Ch. 40, Sec. 909] TNC driver requirements.

A TNC shall accept service of process by certified mail sent to its registered agent.

(5)

Obtain and review a driving history research report for such individual.

(6)

Conduct the background checks as required by § 40-907H.

Prior to permitting an individual to act as a TNC driver on its digital platform or otherwise on behalf of the TNC, the TNC shall:

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.

Perform a local and national criminal background check, conducted through a third-party vendor, for each applicant in accordance with the plan submitted in § 40-907H and the requirements of this Article. Any company that has been accredited by the National Association of Professional Background Screeners shall be pre-approved by the City to perform the required criminal background checks. Upon written application, the City Manager may approve additional companies that meet similar requirements. At a minimum, the criminal background checks shall include:

Multi-State/Multi-Jurisdiction Criminal Records Locator or other similar commercial nationwide database with validation (primary source search); and

National Sex Offender Registry database.

Obtain and review a driving history research report for such individual.

The TNC shall not permit an individual to act as a TNC driver on its digital platform, nor shall an individual be allowed to operate as a TNC driver who:

Has had more than three 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);

Has been convicted, within the past seven years, of driving under the influence of drugs or alcohol, or who has been convicted at any time of fraud, sexual offenses, use of a motor vehicle to commit a felony, a crime involving property damage, and/or theft, acts of violence, or acts of terror;

Is a match in the National Sex Offender Registry database or is a sex offender as defined by § 40-102;

§ 40-911 [Ch. 40, Sec. 910] Insurance required for transportation network drivers.

Does not possess a valid driver's license;

(5)

Does not possess proof of registration for the motor vehicle(s) used to provide TNC Services;

(6)

Does not possess proof of automobile liability insurance for the motor vehicle(s) used to provide TNC Services; or

(7)

Is not at least 18 years of age.

All TNC drivers shall be required to carry and provide proof of their affiliation with a TNC when operating, as well as insurance coverage information as required by § 40-911.

Transportation network companies and participating TNC drivers shall comply with the automobile liability insurance requirements of this Section.

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:

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.

Contingent automobile liability insurance in the amounts required in Subsection B(1) of this Subsection 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 Subsection B(1).

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:

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 Subsection C(1) may be satisfied by any of the following:

Automobile liability insurance maintained by a participating TNC driver;

Automobile liability company insurance maintained by a transportation network company; or

Any combination of Subsection C(1)(a) and (b).

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.

The insurer, in the case of insurance coverage provided under this Subsection C, shall have the duty to defend and indemnify the insured.

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.

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.

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.

The transportation network company shall disclose in writing to TNC drivers, as part of its agreement with those TNC drivers, the following:

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