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Elgin City Council divided on ride-sharing rules

Editor's note: This story was corrected to say that ride-share legislation was signed into law Monday.

By Elena Ferrarin

eferrarin@dailyherald.com

Elgin City Council members were reluctant to regulate the ride-share industry more strictly than state law during a discussion Wednesday.

The proposed changes in Elgin include requiring ride-share drivers to carry commercial insurance, go through yearly vehicle safety inspections and go through a background check, all regulations imposed on the taxi industry.

The Transportation Network Providers Act -- signed by Gov. Pat Quinn into law his last day in office Monday -- would require ride-share companies such as Uber and Lyft to be responsible for all that. The law takes effect June 1.

Elgin's new ordinance would put the onus on ride-share drivers themselves, Assistant Corporation Counsel Christopher Beck said.

Also, convicted sex offenders wouldn't be able to work for either the ride-share or taxi industry in Elgin, Lt. Jeff Adam said.

"It's not just about a level playing field, but also about ensuring the safety of people," City Manager Sean Stegall said.

But most council members questioned whether Elgin should be so strict.

"Do we have concerns going above and beyond what the state level is doing?" Councilman Toby Shaw said.

Council members asked for a detailed analysis of the proposed insurance costs, along with a comparison with pending state law requirements.

Mayor David Kaptain suggested looking at easing requirements for taxis, and Councilman John Steffen agreed. "I would like to see us reduce some of the red tape for the taxicabs," Steffen said.

Police Chief Jeff Swoboda acknowledged there are no easy answers on the issue. "There's very few no-brainers in this," he said.

Councilman John Prigge said he was hesitant about requiring ride-share vehicles to have permanent signs identifying their companies. Swoboda responded he'd be OK with allowing magnetic signs for ride-share and taxis.

The ride-share industry is entrepreneurial, Councilwoman Carol Rauschenberger said. "I would move forward to deregulate rather than overregulate," she said.

Councilman Terry Gavin argued there is no such thing as overregulation of the ride-share industry.

"The (insurance) industry is saying (state law) doesn't go far enough, and I would agree with that," he said.

Elgin could also look into asking ride-share companies to provide real-time data about traffic and parking, like such companies recently agreed to do with the city of Boston, Stegall said.

Elgin police began looking into the issue after Jaime Hjelm, owner of A Taxicab Leasing Corp. in South Elgin, contacted the department last summer asking for regulations of ride-share companies.

Hjelm, who is now running for city council, questioned why city council members were concerned about increasing costs for ride-share drivers. Commercial insurance costs about $4,000 yearly per vehicle, she said.

Shaw said the police department should get feedback from the ride-share industry as well.

The city council is expected to continue the discussion in two weeks.

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