HomeMy WebLinkAboutOrdinance 15-024 Ordinance 15-024
An Ordinance Amending Chapter 26 of the Code of Ordinances of the City
of Brookings, South Dakota to include the regulation of Transportation Network
Companies in the City of Brookings.
Be It Ordained and Enacted by the Council of the City of Brookings, State of South
Dakota, as follows:
I.
Section 26-181 of Chapter 26 of the Code of Ordinances of the City of Brookings is
hereby amended as follows:
Sec. 26-181. — Definitions.
The following words, terms and phrases, when used in this chapter, shall have the
meanings provided in this section, except where the context clearly indicates a different
meaning:
Limousine means any motor vehicle which has a passenger compartment that can be
sealed from the driver's compartment, with a seating capacity of at least six persons, not
including the driver, which is not traveling any definite or prescribed route and is
operated by a driver.
Operator means a person engaged in business as an operator of a taxicab.
Taxicab means a motor vehicle for carrying passengers, with a seating capacity for
seven persons or less, not including the driver, which is not traveling any definite or
prescribed route, is operated by a driver carrying or accepting passengers for hire, but
does not include funeral cars, limousines, buses, ambulances, wheelchair transport
vehicles, and a personal vehicle operated by a Transportation Network Company
("TNC") driver as defined in Division 5 of this Chapter.
Vehicle for hire means any taxicab as defined in this chapter, not including a personal
vehicle operated by a TNC driver.
II.
Chapter 26 of the Code of Ordinances of the City of Brookings is hereby amended to
include Division 5 as follows:
Division 5. — Transportation Nefinrork Companies ("TNC")
Sec. 26-280. - Definitions.
Digital Network. Any online-enabled application, software, website, or system offered or
utilized by a TNC that enables the prearrangement of rides with TNC Drivers.
TNC Driver. A person who drives a vehicle for a Transportation Network Company.
Personal Vehicle. A vehicle that is used by a TNC Driver and is: Owned, leased, or
otherwise authorized for use by the TNC Driver; and which is not a taxicab, limousine or
vehicle for hire.
Prearranged Ride. The provision of transportation by a driver to a rider, beginning when
a driver accepts a ride requested by a rider through a Digital Network controlled by a
TNC, continuing while the driver transports a requesting rider, and ending when the last
requesting rider departs from the Personal Vehicle. A Prearranged ride does not include
transportation provided by a taxicab or vehicle for hire.
Transportation Network Company or TNC. An entity licensed pursuant to this Chapter
that uses a digital nefinrork to connect passengers to Transportation Network Company
Services provided by Transportation Network Company Drivers. A TNC shall not be
deemed to control, direct or manage the Personal Vehicles or TNC Drivers, except
where agreed to by written contract.
Transportation Network Company Driver or TNC Driver. An individual who operates a
personal vehicle who:
a) Receives connections to potential passengers and related services from a TNC
in exchange for payment of a fee to the TNC; and
b) Uses a Personal Vehicle to offer or provide a prearranged ride to riders upon
connection through a Digital Network controlled by a Transportation Network
Company in return for compensation or payment of a fee.
Sec. 26-281. — Requirements for a Transportation Network Company.
a) Inspection Required. No vehicle may be operated by a TNC Driver within the City
until it has been thoroughly and carefully tested and inspected and found to be in
a safe condition for the transportation of passengers. It is the duty of each TNC
Driver to submit to the chief of police for inspection each vehicle at any time upon
complaint, and the police department may also inspect such TNC vehicles at
other times as it deems necessary.
b) No Street Hails. A TNC Driver shall not solicit or accept street hails.
c) No Cash Trips. The TNC shall adopt a policy prohibiting solicitation or
acceptance of cash payments or other compensation directly from passengers
and notify TNC Drivers of such policy. TNC Drivers shall not solicit or accept
cash payments or other compensation directly from passengers. Any payment for
TNC Services shall be made only electronically using the TNC's digital nefinrork
or software application.
2
d) Fare Collected for Services. On behalf of a TNC Driver, a TNC may charge a fare
for the services provided to passengers; provided that, if a fare is collected from
a passenger, the TNC shall disclose to passengers the fare calculation method
on its website or within the software application service. The TNC shall also
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.
e) Identification of TNC Vehicles And Drivers. The TNC's 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.
fl Electronic Receipt. Within a reasonable period of time following the completion of
a trip, a TNC shall transmit an electronic receipt to the passenger on behalf of the
TNC driver that lists:
a. The origin and destination of the trip;
b. The total time and distance of the trip; and
c. An itemization of the total fare paid, if any.
g) Records. A TNC shall maintain the following records:
a. Individual trip records of passenger customers for at least one (1) year
from the date each trip was provided; and
b. Individual records of TNC Driver customers at least until the one year
anniversary of the date on which a TNC Driver's customer relationship
with the TNC has ended.
h) Record Inspection Authority.
a. The city has the authority to inspect the records of the TNC as necessary
to investigate an alleged crime or violation of this chapter; accident
involving a TNC driver; or for other good cause. The TNC shall cooperate
with the city to facilitate the exchange of relevant information required in
an investigation. The city shall provide advance written notice at least
seven days prior to any inspection, which shall be conducted at a mutually
agreed upon third-party location, or pursuant to court order, grand jury, or
investigative subpoena.
b. Any record or information made available by the TNC to the city pursuant
to this chapter is confidential and proprietary, and shall not be made public
without TNC's express written permission. If the city is required to disclose
confidential information under court order or other applicable law, the city
shall promptly notify the TNC of such requirement, prior to disclosure, and
shall make diligent efforts to limit disclosure pursuant to any available
basis in South Dakota open records law or other applicable law.
Sec. 26-282. — Application for Transportation Network Company License and
Insurance.
3
a) License Required. A person shall not operate a TNC in Brookings without first
having obtained a license from the City Clerk. The city shall grant a TNC license
if satisfied that the applicant has complied with all of the terms and provisions of
this chapter and if the evidence submitted in support of the application meets the
conditions precedent to granting the license.
b) Certificate of Insurance. Before any TNC license is issued, or any existing license
is renewed, an insurance certificate or policy of insurance issued by a
responsible insurer providing the coverage required by Sec. 26-283 covering the
vehicles to be operated by the TNC and TNC Driver shall be filed with the City
Clerk. The policy or certificate of liability insurance required by this ordinance
shall be approved by the City prior to issuance of the TNC license.
c) License Insurance. The City Clerk shall issue a license to each applicant that
meets the requirements for a TNC set forth in this Chapter, and pays to the City
an annual permit fee as established by Resolution of the City. A licensing year,
for the purposes of this section, begins January 1 and ends December 31 of the
next year.
d) Application Requirements. The application shall include:
1. The name and address of applicant;
2. Trade name if any under which the license is to be exercised;
3. If a partnership, the name and address of each partner;
4. If a corporation, the names and addresses of the officers;
5. Description of the activity to be carried on under the license;
6. The name and contact information for an agent to be maintained for
service of process in the State of South Dakota.
7. The applicant provides proof of sales tax license if applicable.
8. All required certificates of insurance.
e) Identification of TNC Drivers. At the time of initial licensing and on a quarterly
basis, a TNC shall submit to the city a list of driver's license numbers and the
State of issuance for each active driver.
Sec. 26-283. — Hold Harmless/Indemnification and Insurance Requirements —
Transportation Network Company.
(a) Financial Responsibility of Transportation Nefinrork Companies.
1. Indemnification and Hold Harmless. Transportation Network Companies
must agree to indemnify and hold the City of Brookings, its officers,
agents, and employees, harmless from and against any and all actions,
suits, damages, liability or other proceedings that may arise as the result
of performing services hereunder. This section does not require
Transportation Nefinrork Companies to be responsible for or to defend
4
against claims or damages arising solely from errors or omissions of the
City of Brookings, its officers, agents, or employees.
2. Liability of Transportation Network Company Beyond Required Limits.
This ordinance does not limit the liability of a Transportation Network
Company arising out of an automobile accident involving a TNC Driver in
any action for damages against a Transportation Network Company for an
amount above the required insurance coverage.
3. General Commercial Liability Insurance. Transportation Nefinrork
Companies shall maintain occurrence based commercial general liability
insurance or equivalent form with a limit of not less than $1,000,000 for
each occurrence. If such insurance contains a general aggregate limit, it
shall apply separately to this Agreement or be no less than two times the
occurrence limit. Such insurance shall add the City of Brookings and its
employees as additional insureds.
4. Workers Compensation. Transportation Network Companies shall procure
and maintain workers' compensation and employers' liability as required
by South Dakota law.
5. Required disclosures. A Transportation Network Company shall disclose
in writing or electronic form to its TNC Drivers, as part of its agreement
with those Drivers, the insurance coverage and limits of liability that the
Transportation Network Company provides while the driver uses a vehicle
in connection with a Transportation Network Company's online-enabled
application or platform and shall advise its TNC Driver that the driver's
personal automobile insurance policy may not provide coverage under the
agreement.
(b) Automobile Liability Insurance. A Transportation Network Company Driver or
Transportation Network Company on the driver's behalf shall maintain primary
automobile insurance that:
1. Recognizes that the driver is a Transportation Nefinrork Company Driver or
otherwise uses a vehicle to transport passengers for compensation and
covers the driver:
a. While the driver is logged onto the Transportation Network Company's
Digital Network; or
b. While the driver is engaged in a prearranged ride.
2. The following automobile insurance requirements shall apply while a
participating Transportation Network Company Driver is logged onto the
Transportation Network Company's Digital Network and is available to
receive transportation requests but is not engaged in a prearranged ride:
5
a. Transportation Network Companies shall maintain primary business
automobile liability insurance with a limit of not less than $1,000,000
each accident for death, bodily injury and property damage; Such
insurance shall include coverage for owned, hired, and non-owned
vehicles.
b. Uninsured and underinsured motorist coverage at the minimum limits
required by SDCL § 58-11-9.4.
c. The coverage requirements of this subsection may be satisfied by any
of the following:
1) Automobile insurance maintained by the Transportation Network
Company Driver; or
2) Automobile insurance maintained by the Transportation Network
Company; or
3) Any combination of subparagraphs (1) and (2).
3. The following automobile insurance requirements shall apply while a
Transportation Network Company Driver is engaged in a prearranged ride:
a. Transportation Network Companies shall maintain primary business
automobile liability insurance with a limit of not less than $1,000,000
each accident for death, bodily injury and property damage; Such
insurance shall include coverage for owned, hired, and non-owned
vehicles.
b. Uninsured and underinsured motorist coverage at the minimum limits
required by SDCL § 58-11-9.4.
c. The coverage requirements of this subsection may be satisfied by any
of the following:
1) Automobile insurance maintained by the Transportation Nefinrork
Company Driver; or
2) Automobile insurance maintained by the Transportation Nefinrork
Company; or
3) Any combination of subparagraphs (2) and (3).
4. If insurance maintained by driver in Section (a) has lapsed or does not
provide the required coverage, insurance maintained by a Transportation
Network Company shall provide the coverage required by Section (a)
beginning with the first dollar of a claim and the Transportation Nefinrork
Company shall have the duty to defend such claim.
5. Coverage under an automobile insurance policy maintained by the
Transportation Network Company shall not be dependent on a personal
6
automobile insurer first denying a claim nor shall a personal automobile
insurance policy be required to first deny a claim.
6. Insurance required by Section (a) may be placed with an insurer licensed
in the state or with a surplus lines insurer eligible under Chapter 58-32 of
the South Dakota Insurance Code.
7. A Transportation Network Company Driver shall carry physical or digital
proof of coverage satisfying Section (a) at all times during the Driver's use
of a vehicle in connection with a Transportation Network Company's
Digital Network. In the event of an accident, a Transportation Network
Company Driver shall provide this insurance coverage information to the
directly interested parties, automobile insurers and investigating police
officers, upon request pursuant to Chapter 32-35 of the South Dakota
Insurance Code. Upon such request, a Transportation Nefinrork Company
Driver shall also disclose to directly interested parties, automobile
insurers, and investigating police officers, whether the Driver was logged
onto the Transportation Nefinrork Company's Digital Network or on a
Prearranged Ride at the time of an accident.
8. In a claims coverage investigation, Transportation Network Companies
shall cooperate to facilitate the exchange of relevant information with
directly involved parties and any insurer of the Transportation Network
Company Driver if applicable, including the precise times that a
Transportation Network Company Driver logged on and off of the
Transportation Network Company's Digital Network in the twelve hour
period immediately preceding and in the twelve hour period immediately
following the accident and disclose to one another a clear description of
the coverage, exclusions and limits provided under any automobile
insurance maintained under Section (a).
9. A TNC automobile insurance policy shall not be modified or canceled
without 30 days' actual notice to the city clerk.
10. The cancellation or other termination of any required automobile
insurance policy shall automatically revoke and terminate all licenses
issued for the TNC, unless another policy(ies), complying with this section,
shall be provided and in effect at the time of such cancellation or
termination.
Sec. 26-284. — Transportation Network Company Driver Requirements.
7
(a) License Required. Transportation Network Company Drivers shall be required to
obtain a license from the city. No person may drive a vehicle for a TNC without
first obtaining a license as a TNC driver.
(b) Age requirement. No TNC driver's license may be issued under the provisions of
this ordinance to any person who is under the age of 18 years.
(c) Application. Any person desiring a TNC driver's license required by this
ordinance shall make written application upon forms provided by the city clerk.
(d) Investigation of applicant by chief of police. Upon receiving a completed
application for a TNC driver's license required by this ordinance, the city clerk
shall promptly deliver the application to the chief of police, who may review the
States of prior residence, and the qualifications and fitness of the applicant to
obtain a TNC driver's license. Upon such inquiry, the police chief shall endorse
upon the application their recommendation for approval or disapproval of the
application and return the application to the city clerk. The chief of police shall
consider whether the applicant has a State driver's license that would authorize
operation of a TNC vehicle and whether the applicant has been convicted of a
felony or misdemeanor which has a reasonable relationship to driving a TNC
vehicle.
(e) Licensing procedure. After the chief of police has returned the license application
to the city clerk, the issuance of such license shall be discretionary with the city
clerk and a license may be issued only upon the approval of the city clerk. The
city clerk shall consult, as necessary, the police chief concerning any applicant.
(fl Revocation. Any license or temporary permit issued under this division may be
revoked by the city clerk for a violation by the licensee of any applicable provision
of State law, city ordinance or rule or regulation of the city, or for other good
cause.
(g) Notices to chief of police. The city clerk shall notify the chief of police of the
issuance or revocation of any license under the provisions of this ordinance.
(h) Display of license. Each holder of a license issued under this division shall
continuously display the license certificate in a conspicuous manner in the
vehicle.
(i) If a TNC driver meets the requirements of this chapter, a TNC may allow access
for that TNC driver to the TNC's digital network. Before allowing an individual to
accept trip requests through a TNC's digital platForm:
1. The individual shall submit an application to the TNC, which includes
information regarding his or her address, age, driver's license, driving history,
8
motor vehicle registration, automobile liability insurance, and other
information required by the TNC;
2. The TNC shall have a third party conduct a local and national criminal
background check for each applicant that shall include:
a. Multi-State/Multi-Jurisdiction Criminal Records Locator or other similar
commercial nationwide database with validation (primary source search);
and
b. National Sex Offender Registry database;
3. The TNC shall obtain and review a driving history research report for such
individual.
(j) The TNC shall not permit an individual to act as a TNC Driver on its digital
platForm who:
1. Has had more than three traffic offenses in the prior three-year period, or one
major violation in the prior three-year period (including, but not limited to,
attempting to elude the police, reckless driving, hit/run or leaving the scene,
or driving on a suspended or revoked license);
2. Has been convicted, within the past seven years, of driving under the
influence of drugs or alcohol, fraud, sexual offenses, indecent exposure
(Class 1 misdemeanor), use of a motor vehicle to commit a felony, a crime
involving property damage, and/or theft, crimes of violence, felony
possession/distribution of controlled substances or acts of terror;
3. Is a match in the National Sex Offender Registry database;
4. 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.
(k) The TNC shall prohibit the use or influence of drugs or alcohol by a driver while
providing TNC services requested through the TNC's digital platForm. If a TNC
receives a complaint of such drug or alcohol influence or other activity prohibited in
26-284, the TNC shall:
1. Immediately revoke the driver's access to the TNC's digital platform until the
duration of the investigation; and
9
2. If the complaint is found to be true, the TNC shall permanently revoke the
driver's license access to the TNC's digital platForm. If the complaint is found
to be untrue, the driver's access to the TNC's digital platForm may be
immediately reinstalled.
III.
Any or all ordinances in conflict herewith are hereby repealed.
First Reading: December 15, 2015
Second Reading: January 12, 2016
Published: January 15, 2016
CITY OF BROOKINGS, SD
1zti��� ���
���� � ..:�' .
�4T��S�: _:� Tim Reed, Mayor
o: w� �
,;
G�� o'+`,=\�
'S' �'.. r'Sjt'
�"�ko7� / / /
�/L/C/�//���
Shari Thornes, City Clerk
10