Sen. Antonio Muņoz

Filed: 4/17/2015

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 626

2    AMENDMENT NO. ______. Amend Senate Bill 626 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Illinois Vehicle Code is amended by
5changing Section 6-305.2 as follows:
 
6    (625 ILCS 5/6-305.2)
7    Sec. 6-305.2. Limited liability for damage.
8    (a) Damage to private passenger vehicle. A person who rents
9a motor vehicle to another may hold the renter liable to the
10extent permitted under subsections (b) through (d) for physical
11or mechanical damage to the rented motor vehicle that occurs
12during the time the motor vehicle is under the rental
13agreement.
14    (b) Limits on liability: vehicle MSRP $50,000 or less. The
15total liability of a renter under subsection (a) for damage to
16a motor vehicle with a Manufacturer's Suggested Retail Price

 

 

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1(MSRP) of $50,000 or less may not exceed all of the following:
2        (1) The lesser of:
3            (A) Actual and reasonable costs that the person who
4        rents a motor vehicle to another incurred to repair the
5        motor vehicle or that the rental company would have
6        incurred if the motor vehicle had been repaired, which
7        shall reflect any discounts, price reductions, or
8        adjustments available to the rental company; or
9            (B) The fair market value of that motor vehicle
10        immediately before the damage occurred, as determined
11        in the customary market for the retail sale of that
12        motor vehicle; and
13        (2) Actual and reasonable costs incurred by the loss
14    due to theft of the rental motor vehicle up to $2,000;
15    provided, however, that if it is established that the
16    renter or an authorized driver failed to exercise ordinary
17    care while in possession of the vehicle or that the renter
18    or an authorized driver committed or aided and abetted the
19    commission of the theft, then the damages shall be the
20    actual and reasonable costs of the rental vehicle up to its
21    fair market value, as determined by the customary market
22    for the sale of that vehicle.
23    For purposes of this subsection (b), for the period prior
24to June 1, 1998, the maximum amount that may be recovered from
25an authorized driver shall not exceed $6,000; for the period
26beginning June 1, 1998 through May 31, 1999, the maximum

 

 

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1recovery shall not exceed $7,500; and for the period beginning
2June 1, 1999 through May 31, 2000, the maximum recovery shall
3not exceed $9,000. Beginning June 1, 2000, and annually each
4June 1 thereafter, the maximum amount that may be recovered
5from an authorized driver shall be increased by $500 above the
6maximum recovery allowed immediately prior to June 1 of that
7year.
8    (b-5) Limits on liability: vehicle MSRP more than $50,000.
9The total liability of a renter under subsection (a) for damage
10to a motor vehicle with a Manufacturer's Suggested Retail Price
11(MSRP) of more than $50,000 may not exceed all of the
12following:
13        (1) The lesser of:
14            (A) Actual and reasonable costs that the person who
15        rents a motor vehicle to another incurred to repair the
16        motor vehicle or that the rental company would have
17        incurred if the motor vehicle had been repaired, which
18        shall reflect any discounts, price reductions, or
19        adjustments available to the rental company; or
20            (B) The fair market value of that motor vehicle
21        immediately before the damage occurred, as determined
22        in the customary market for the retail sale of that
23        motor vehicle; and
24        (2) Actual and reasonable costs incurred by the loss
25    due to theft of the rental motor vehicle up to the fair
26    market value of that motor vehicle, as determined by the

 

 

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1    customary market for the sale of that vehicle.
2    (c) Multiple recoveries prohibited. Any person who rents a
3motor vehicle to another may not hold the renter liable for any
4amounts that the rental company recovers from any other party.
5    (d) Repair estimates. A person who rents a motor vehicle to
6another may not collect or attempt to collect the amount
7described in subsection (b) unless the rental company obtains
8an estimate from a repair company or an appraiser in the
9business of providing such appraisals on the costs of repairing
10the motor vehicle, makes a copy of the estimate available upon
11request to the renter who may be liable under subsection (a),
12or the insurer of the renter, and submits a copy of the
13estimate with any claim to collect the amount described in
14subsection (b).
15    (e) Duty to mitigate. A claim against a renter resulting
16from damage or loss to a rental vehicle must be reasonably and
17rationally related to the actual loss incurred. A rental
18company shall mitigate damages where possible and shall not
19assert or collect any claim for physical damage which exceeds
20the actual costs of the repair, including all discounts or
21price reductions.
22    (f) No rental company shall require a deposit or an advance
23charge against the credit card of a renter, in any form, for
24damages to a vehicle which is in the renter's possession,
25custody, or control. No rental company shall require any
26payment for damage to the rental vehicle, upon the renter's

 

 

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1return of the vehicle in a damaged condition, until after the
2cost of the damage to the vehicle and liability therefor is
3agreed to between the rental company and renter or is
4determined pursuant to law.
5    (g) If insurance coverage exists under the renter's
6personal insurance policy and the coverage is confirmed during
7regular business hours, the renter may require that the rental
8company must submit any claims to the renter's personal
9insurance carrier as the renter's agent. The rental company
10shall not make any written or oral representations that it will
11not present claims or negotiate with the renter's insurance
12carrier. For purposes of this Section, confirmation of coverage
13includes telephone confirmation from insurance company
14representatives during regular business hours. After
15confirmation of coverage, the amount of claim shall be resolved
16between the insurance carrier and the rental company.
17(Source: P.A. 90-113, eff. 7-14-97.)
 
18    Section 10. The Renter's Financial Responsibility and
19Protection Act is amended by changing Section 15 as follows:
 
20    (625 ILCS 27/15)
21    Sec. 15. Prohibited practices.
22    (a) A rental company may not sell a damage waiver unless
23the renter agrees to the damage waiver in writing at or prior
24to the time the rental agreement is executed.

 

 

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1    (b) A rental company may not void a damage waiver except
2for one or more of the following reasons:
3        (1) Damage or loss while the rental vehicle is used to
4    carry persons or property for a charge or fee.
5        (2) Damage or loss during an organized or agreed upon
6    racing or speed contest or demonstration or pushing or
7    pulling activity in which the rental vehicle is actively
8    involved.
9        (3) Damage or loss that could reasonably be expected
10    from an intentional or criminal act of the driver other
11    than a traffic infraction.
12        (4) Damage or loss to any rental vehicle resulting from
13    any auto business operation, including but not limited to
14    repairing, servicing, testing, washing, parking, storing,
15    or selling of automobiles.
16        (5) Damage or loss occurring to a rental vehicle if the
17    rental contract is based on fraudulent or material
18    misrepresentation by the renter.
19        (6) Damage or loss arising out of the use of the rental
20    vehicle outside the continental United States when such use
21    is specifically prohibited in the rental agreement.
22        (7) Damage or loss occurring while the rental vehicle
23    is operated by a driver not permitted under the rental
24    agreement.
25        (8) Damage or loss occurring while the rental vehicle
26    is operated by a driver under the influence of alcohol,

 

 

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1    other drug or drugs, intoxicating compound or compounds, or
2    any combination thereof and convicted of violating
3    subsection (a) of Section 11-501 of the Illinois Vehicle
4    Code.
5    (c) A rental company shall not charge more than $12.50 per
6full or partial 24 hour rental day for a collision damage
7waiver prior to January 1, 2014. Beginning January 1, 2014, a
8rental company shall not charge more than $13.50 per full or
9partial 24 hour rental day for a collision damage waiver.
10    (d) A rental company may offer a collision damage waiver on
11any rental vehicle having a value in excess of a Manufacturer's
12Suggested Retail Price (MSRP) of $50,000; however, the
13provisions of subsection (c) of this Section shall not apply to
14collision damage waivers under this subsection (d).
15(Source: P.A. 98-428, eff. 8-16-13.)".