Village Manager s Office

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1 Village Manager s Office SUBJECT: First Consideration of an Ordinance to Amend the Glenview Municipal Code, Chapter 94 Vehicles for Hire, and Chapter 22 - Businesses AGENDA ITEM: 11.a MEETING DATE: August 7, 2018 VILLAGE BOARD REPORT TO: Village President and Board of Trustees FROM: Brent Troxell, Assistant to the Village Manager, (847) THROUGH: Matt Formica, Village Manager BOARD ACTION REQUESTED: Staff requests the Board consider an Ordinance to amend the Glenview Municipal Code (the Code), Chapter 94 Vehicles for Hire, and Chapter 22 Businesses, to remove local regulations for taxicabs and limousines and adopt the State s regulations for transportation network providers. BACKGROUND: In recent years, a new business model of ride-sharing accessed through a mobile platform has increased in popularity, directly competing with the taxi industry. The most well-known companies operating under this new business model are Uber and Lyft. In Illinois, ride-sharing firms are collectively known as transportation network providers ( TNP s ). TNP s are not a taxi service, but rather a network of contracted drivers offering a shared service that connects riders with drivers. However, with the rise of TNP s, municipalities have seen taxi rides decline. As an example, over a period of three years from , Chicago taxi revenue declined by a reported 40 percent 1. The State of Illinois began regulating TNP s in 2015 with the passage of law that became 625 ILCS 57 Transportation Network Providers Act. This law sunsets in The Glenview Municipal Code (the Code ) Section 94 regulates the operation of vehicles for hire including taxis and limousines. Taxi licensure was originally included in the 1959 Code. Two taxi companies operate within the corporate limits and no registered livery services are currently based in Glenview. TNP s are increasingly regulated separately from taxis across the country. Village staff began reviewing the issue of ride-sharing last year in order to evaluate how taxis and TNP s should be regulated given the changing business and state regulatory environments. Staff reviewed the current taxi ordinance, the State TNP law, and other municipal ordinances. Staff considered what the parity in regulation of registration between taxis and TNP s should be at the local level as state regulations differ. 1 (Madhani, 2017, USA Today) 1

2 The following sections provide an overview of the current licensing requirements to operate a taxi in Glenview and requirements on TNP s and drivers by State law. Current Glenview Taxi Requirements The Code s current requirements to operate a taxi in the Village are as follows: Vehicle license - Taxi owners register each taxi with the Village, which requires providing proof of insurance and inspection to the Village. Operator s/chauffeur s license Taxi drivers register with the Village, which requires providing the following information to the Village: o Background check Fingerprints required every other year for Police to conduct a background check. Prohibited record: No convictions of a Class A misdemeanor or felony within five (5) years or a background that indicates a tendency to act in a manner that may place the public at risk. o Driving history Driving abstract reviewed annually. Prohibited record: No suspended or revoked license within last three (3) years, no more than two (2) convictions for moving traffic violations, never caused through unlawful operation of vehicle an accident resulting in the death of any person. o Medical physical Required every other year. o Drug/alcohol screen Required every year. o Language and knowledge test Written exam that tests applicant s knowledge of the English language, local geography, and traffic laws. Additionally, the Code includes many requirements for the operation of a taxi, but the primary issue lies with the registration and licensing requirements. Current Glenview Limousine Requirements Livery/limousine drivers whose company is not based in Glenview are not required to register with the Village, and thus may be operating in Glenview without any of the required registration and background checks of taxi drivers. No registered limousine companies are currently based in Glenview. State TNP Requirements The recent State law includes the following: Background check Local and national criminal background check through a commercial nationwide database with validation (primary source search) and National Sex Offenders Registry database; no fingerprints required. Prohibited record: Convicted within last 7 years of driving under the influence of drugs or alcohol, fraud, sexual offenses, use of a motor vehicle to commit a felony, crime 2

3 involving property damage, theft, acts of violence of terror; match on National Sex Offenders Registry. Driving history Drivers cannot have more than three (3) moving violations or one (1) major violation in the prior three-year period. Applicants are to be denied without a valid driver s license, proof of registration, and proof of automobile liability insurance. Drugs/alcohol Zero-tolerance policy while a driver is logged into the system. Regulation Comparisons Table 1 below highlights area municipalities and gives an overview of the primary requirements for licensing by area municipalities. Table 1. Municipal Licensing Comparison Municipality Taxi Licensing Requirements TNP Regulation Level Regulation Level Evanston Low Completely deregulated taxis State regulations, no commercial advertising, cannot use taxi stand Morton Grove High Background check/fingerprinting (initially and periodically thereafter), medical examination None Niles Medium List of convictions and driving record, None fingerprinting, medical exam Wilmette None None Buffalo Grove Medium Background check/fingerprinting (initial), medical exam Highland Park High Criminal record, fingerprinting, local references, work record None Schaumburg High Conviction history, driving record, None fingerprinting (annually) Northbrook High Background check/fingerprinting None (annually), medical exam, drugs/alcohol Elk Grove Medium Medical exam, drugs/alcohol, None fingerprinting (every 3 yrs) Arlington Medium Background check/fingerprinting None Heights (initially), medical exam Elgin Medium Background check Medium The municipalities of Aurora, Joliet, Naperville, Decatur, Champaign, Urbana, and Kankakee have opted to not impose rules beyond what the state requires. Chicago, Evanston, Bloomington, Normal, Springfield, Peoria, Rockford, and Maywood have enacted different levels of additional regulations in areas such as licensing/fees, investigation, driver qualifications, vehicle safety/age, advertising, operations, and pricing. As a comparison, staff found that PACE conducts background checks on its vanpool drivers; they are required to undergo a background check, medical test, and drug and alcohol screening. 3

4 DISCUSSION: Policy Issues As staff reviewed the current ordinance, the State law, enforcement realities, and the implications of different levels of requirements, the following issues were discussed and considered in developing a recommendation for the Village Board to consider: 1. Enforcing TNP s as Taxis: For a period of time, the Police Department enforced the current taxi ordinance equally to TNP s. While the ordinance was enforced by the ALJ, it was recommended to staff to amend the ordinance as TNP s operate differently from taxis despite providing similar services. TNP s have not been cited for operating out of compliance with the taxi ordinance since Accessibility of TNP s for Residents: Due to the Village s enforcement of TNP s as taxis, staff heard anecdotally that TNP drivers did not want to come to Glenview to pick up riders due to concern with possibly receiving a citation. This reduces the accessibility of a desired service for residents. 3. Similarities in Taxis and TNP s: Both taxis and TNP s provide point-to-point transportation. Taxis can be hailed street side, at a taxi stand, through the company dispatch, and many offer mobile app pick-up requests. TNP s are accessed solely through a mobile app. 4. Differences in Taxis and TNP s: TNP users must sign up and opt-in to the service, agreeing to the company s terms and conditions prior to use. By using the service, the user is accepting the company s determination of who is allowed to drive and the quality of service received. With taxis, the user accepts the terms of fare by entering the vehicle, but may not have the same level of choice of company based on which taxi is driving within Glenview. 5. Regional Transportation Issue: Taxis and TNP s are used for both local and regional travel. Glenview residents will use available transportation options to access the airports, the City of Chicago, and other suburban municipalities. As just one governmental authority in such a large metropolitan area, the issue arises as to Glenview s role in regulating taxi service and TNP s. 6. Difference in State Regulation for Taxis and TNP s: The State has limited regulations for taxi companies or drivers. The regulations for taxi drivers included in 625 ILCS 55, Taxi Safety Act of 2007, are the following: Driver picture, license/registration number, and medallion or exterior identification number posted visibly in each cab; Visible telephone number for passengers if driver is acting recklessly; and Requirement to be tested for drugs and alcohol by law enforcement officer if colliding with pedestrian resulting in bodily injury. The State more recently enacted 625 ILCS 57, Transportation Network Providers Act (the TNP Act ). The TNP Act regulates the following for TNP companies and drivers: Automobile liability insurance; Background and driving record check requirements; Eligibility of driver applicants based on criminal and driving background; Age, driving eligibility, and registration and insurance for vehicle; Non-discrimination of passengers; Safety of vehicles and zero-tolerance for drivers using substances; and 4

5 Trip and fare transparency through the mobile app. State regulations are significantly more prescriptive for TNP s than for taxis. TNP s may be regulated more strictly by municipalities than by the State, but most suburban municipalities have not addressed the issue through ordinance. Through legislation, the State has determined that ride-sharing is an interjurisdictional issue that requires consistent regulation across municipal lines. Evaluation Incorporating all of the issues discussed above, staff reviewed a number of options for new policies moving forward, given the expectations of municipal government for a regional transportation issue and current state laws. 1. Require individual TNP drivers to register locally the same way as taxi drivers. 2. Reduce taxi registration requirements to be more similar with the State TNP law. 3. Remove local regulations from taxi and TNP drivers as transportation is a State/regional issue. 1. Requiring TNP Registration By requiring TNP drivers to register and go through the same or even part of the requirements of the current taxi registration, it would discourage drivers from coming to Glenview. Staff has heard from drivers that they avoid Glenview because of previous enforcement. Because of the regional aspect of ride-sharing and transportation, drivers may come to Glenview to drop off a customer and not be aware of the Village boundaries. The expectation for a TNP driver coming to Glenview to know additional registration is necessary after the registration through the company is not likely. 2. Reducing Taxi Registration Requirements It is difficult to align registration requirements, primarily through the fingerprint background check, as the Police Department would require fingerprints if conducting background checks. If taxis operate in more than one municipality, this places redundant regulation on the same owner and driver (as does the current regulation). If the State law changes, the Village would have to re-evaluate local regulations. 3. Removing Local Taxi Registration Requirements This option provides parity at a local regulation level for similar regional transportation businesses. This would mean that Glenview taxi drivers would not have a background check. However, the State has indicated the need for overarching regulation of the TNP industry, of which the taxi industry is similar. From a local registration perspective, it frees businesses to operate with less regulation. RECOMMENDATION: Based on the regional nature of transportation and the State s recognition of such through the TNP Act, staff proposes reducing local regulation of taxis and TNP s to provide local regulatory consistency and recommends approval of the attached ordinance. The reduction in local regulation includes the elimination of all background check components of the registration. The Police Department would still be able to enforce any driving and traffic infractions. This model ordinance has been implemented already by the City of Evanston. 5

6 The new ordinance adopts the State s Taxi Safety Act and the TNP Act as the primary regulations, with few additions. By adopting the State laws locally, any changes at the State level will be incorporated and the Village will be able to enforce those laws. This ordinance puts the regulatory responsibility on the State for consistency. It also makes the local ordinance consistent for taxi drivers, limousine drivers, and TNP drivers. BUDGET: If the Board adopts this ordinance, annual taxi registration license revenue of approximately $4,000-7,000 would be eliminated. ATTACHMENT: 1. Proposed Ordinance 6

7 Attachment 1: Proposed Ordinance, Chapters 22 & 94 7

8 ORDINANCE NO. AN ORDINANCE AMENDING CHAPTERS 22 AND 94 OF THE MUNICIPAL CODE OF THE VILLAGE OF GLENVIEW, COOK COUNTY, ILLINOIS WHEREAS, the Village of Glenview (the Village ) is home-rule municipality in accordance with the Constitution of the State of Illinois of 1970; WHEREAS, the Village has the authority to adopt ordinances and promulgate rules and regulations that pertain to its government and affairs that protect the health, safety, and welfare of its citizens; WHEREAS, in recent years, ride-sharing companies identified by the State of Illinois collectively as Transportation Network Providers ( TNP s ), have contracted drivers of personal vehicles to offer rides for fare, which effectively competes with the taxicab industry; WHEREAS, the Village s Municipal Code (the Code ) currently requires a registration process for taxicabs, does not require registration for livery or limousine drivers whose companies are not established in the Village, and does not identify any regulations for TNP s; WHEREAS, the State of Illinois has the right to regulate taxicabs, limousines, and TNP s, and has done so with the passage of the Transportation Network Provider Act (625 ILCS 57) and the Taxi Safety Act of 2007 (625 ILCS 55); WHEREAS, the transportation-for-hire industry is a regional industry and is not regulated efficiently at a municipal level; and WHEREAS, the Corporate Authorities have reviewed certain proposed amendments to Chapter 94, Vehicles for Hire, of the Code, and determined that in the interest of the public health, safety, and welfare, it is appropriate to adopt such amendments. NOW, THEREFORE, BE IT ORDAINED, by the President and Board of Trustees of the Village of Glenview as follows: Section 1: The facts and statements contained in the preamble to this Ordinance are found to be true and correct and are hereby adopted as part of this Ordinance. Section 2: Section 3: Chapter 94 Vehicles for Hire, of the Code is hereby deleted in its entirety. A new Chapter 94 Vehicles for Hire, is hereby established to read as follows: 94-1 Definitions For purposes of this Chapter, the definitions in the Illinois Vehicle Code, 625 ILCS 5/et seq., as may be amended from time to time, the definitions in the Illinois Taxi Safety Act, 625 ILCS, 55/ et. seq., as may be amended from time to time, and the definitions in the Transportation Network Providers Act, 625 ILCS 57/ et seq., as may be amended from time to time, will apply. 8

9 Motor Vehicle for Hire means all other motor vehicles or buses used for transportation of passengers for hire. A motor vehicle for hire also includes a limousine, as defined by the Illinois Vehicle Code. A motor vehicle for hire is not a bus operated by a public transportation agency or unit of local government, taxicab, or transportation network vehicle. Taxicab means any public passenger vehicle transporting a passenger for hire on a trip basis to or from a destination, other than a motor vehicle for hire or transportation network vehicle. Taximeter any electronic or mechanical device which records and indicates a fare measured by distance traveled, waiting time, and/or number of passengers. Transportation Network Vehicle means any vehicle used to provide a transportation network service. A transportation network vehicle is not a taxicab or motor vehicle for hire Compliance with State and Village Laws It is unlawful for any person to operate a taxicab, motor vehicle for hire, or transportation network vehicle in the corporate limits of the Village unless the driver of the taxicab, motor vehicle for hire, or the transportation network vehicle operated by him/her comply with all relevant State of Illinois laws and regulations and the Village Municipal Code. All taxicabs soliciting business in the corporate limits of the Village must register annually with the Village Manager, and maintain proof of current registration in a readily observable location on the taxicab. There is no fee for this annual registration. All applicants must disclose their name, address, provide a current copy of a valid license or permit to operate a motor vehicle under Illinois state law, provide proof of compliance with the requirements of Section 94-4, and disclose whether the applicant ever had a motor vehicle license suspended or revoked Liability Insurance and Proof of Financial Responsibility Required All drivers, taxicab providers, motor vehicle for hire providers, and transportation network providers must comply with all State of Illinois requirements regarding liability insurance and proof of financial responsibility Compliance with State of Illinois Safety Requirements Every motor vehicle operating within the Village is required to comply with the Illinois Vehicle Code, 625 ILCS 5/13-101, as may be amended from time to time, must submit to the State of Illinois safety test and secure a certificate of safety from the State. Every vehicle operator or owner must produce evidence of compliance upon demand by the Village. Violators may be cited by the Village with a warning, issued to the owner or operator of the motor vehicle, with a twenty-one (21) day grace period given for correction of the violation. Any uncorrected violations may be written as a citation. 9

10 No taxicab, transportation network vehicle, or motor vehicle for hire operating within the Village can display any advertising sign or device on the vehicle that creates any risk of injury to the driver, to passengers of the vehicle, to pedestrians, or to drivers or passengers of other vehicles Non-discrimination All taxicab drivers, motor vehicle for hire drivers, and transportation network vehicle drivers must 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 Operation All taxicab drivers, motor vehicle for hire drivers, and transportation network vehicle drivers must comply with the following: (a) Vehicles shall not carry more than the rated passenger load. (b) Passengers shall be received and discharged at street curbs or on shoulders of roadway and shall not be received or discharged in an established traffic lane. (c) Drivers shall not shout or call to prospective passengers, use obscene or profane language in the presence of any passenger, litter, or disturb the peace in any way. (d) Any vehicle transporting passengers shall not convey toxic, hazardous, or biological waste at any time Adoption of Transportation Network Providers Act The Transportation Network Providers Act, 625 ILCS 57/ et seq., as may be amended from time to time, is hereby adopted in its entirety Adoption of Taxi Safety Act The Taxi Safety Act, 625 ILCS 55/ et seq., as may be amended from time to time, is hereby adopted in its entirety Identification in Taxicabs or Motor Vehicles for Hire Every taxicab must display on each side front door or front fender, and on the trunk, and in a conspicuous place within the passenger compartment, the name of the owner of the vehicle, and if applicable, the association to which it belongs. The following information must be displayed in the taxicab s rear passenger compartment in plain view of the passenger: schedule of rates and charges, telephone number where complaints can be received, a list of communities where straight meter rates apply, the taxicab number, the name of the owner of the taxicab, and the name of the association to which the taxicab belongs. Every driver of a motor vehicle for hire must display his/her driver s license in the interior of the vehicle in plain view. 10

11 94-10 Taxicab Stands and Loading Zones The Village Manager may establish taxicab stands in the number and location deemed appropriate, which will be marked as such by the Village. Transportation network vehicles shall not operate in taxicab stands or loading zones. Any taxicab parked in a taxicab stand must be in the charge of its driver and awaiting a fare Taximeters and Payment Every taxicab must have a taximeter to register, in plain view of the passenger, the fares as accumulated while the cab is operating. The taxicab must have posted information, in plain view of the passenger, showing how the fare is calculated, applicable rates, and upon request, the taxi driver must provide an estimated fare to the passenger before the trip. No taxicab may transport a passenger for hire unless the taximeter is tested, sealed, and certified to be accurate. Any taxicab which has a taximeter found to be in violation of any provisions of this chapter may be immediately removed from service. Any passenger who requests a receipt for the fare paid is to receive one. Any passenger can pay for the fare by credit or debit card Penalties Any violation of any provision of this chapter shall be subject to the fines and penalties establish in Section 1-16 of this Code. Section 3: Chapter 22, Article I, Section of the Code, Exemptions from annual renewal requirements, shall be amended to remove the following items and renumbered accordingly: (5) Chauffeur s licenses; (6) Taxicab operator s or livery; Section 4: Every section and provision of this Ordinance shall be separable, and the invalidity of any portion of this Ordinance shall not affect the validity of any other portion of this Ordinance. Section 5: The Ordinance shall be in full force and effect as of September 1, PASSED this day of, 20. AYES: NAYS: ABSENT: 11

12 APPROVED by me this day of, 20. James R. Patterson, Jr., President Village of Glenview, Cook County, Illinois ATTESTED and FILED in my office the day of, 20. Matthew J. Formica, Village Clerk of the Village of Glenview, Cook County, Illinois 12