Sen. Antonio Muņoz

Filed: 5/8/2015

 

 


 

 


 
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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) the actual and reasonable costs incurred by the
25    loss due to theft of the rental motor vehicle up to
26    $40,000.

 

 

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1    The maximum recovery for a motor vehicle with a
2Manufacturer's Suggested Retail Price (MSRP) of more than
3$50,000 under this subsection (b-5) shall not exceed $40,000 on
4the effective date of this amendatory Act of the 99th General
5Assembly. On October 1, 2016, and for the next 3 years
6thereafter, the maximum amount that may be recovered from an
7authorized driver under this subsection (b-5) shall be
8increased by $2,500 above the prior year's maximum recovery. On
9October 1, 2020, and for each year thereafter, the maximum
10amount that may be recovered from an authorized driver under
11this subsection (b-5) shall be increased by $1,000 above the
12prior year's maximum recovery.
13    (c) Multiple recoveries prohibited. Any person who rents a
14motor vehicle to another may not hold the renter liable for any
15amounts that the rental company recovers from any other party.
16    (d) Repair estimates. A person who rents a motor vehicle to
17another may not collect or attempt to collect the amount
18described in subsection (b) or (b-5) unless the rental company
19obtains an estimate from a repair company or an appraiser in
20the business of providing such appraisals on the costs of
21repairing the motor vehicle, makes a copy of the estimate
22available upon request to the renter who may be liable under
23subsection (a), or the insurer of the renter, and submits a
24copy of the estimate with any claim to collect the amount
25described in subsection (b) or (b-5). In order to collect the
26amount described in subsection (b-5), a person renting a motor

 

 

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1vehicle to another must also provide the renter's personal
2insurance company with reasonable notice and an opportunity to
3inspect damages.
4    (d-5) In the event of loss due to theft of the rental motor
5vehicle with a MSRP more than $50,000, the rental company shall
6provide reasonable notice of the theft to the renter's personal
7insurance company.
8    (e) Duty to mitigate. A claim against a renter resulting
9from damage or loss to a rental vehicle must be reasonably and
10rationally related to the actual loss incurred. A rental
11company shall mitigate damages where possible and shall not
12assert or collect any claim for physical damage which exceeds
13the actual costs of the repair, including all discounts or
14price reductions.
15    (f) No rental company shall require a deposit or an advance
16charge against the credit card of a renter, in any form, for
17damages to a vehicle which is in the renter's possession,
18custody, or control. No rental company shall require any
19payment for damage to the rental vehicle, upon the renter's
20return of the vehicle in a damaged condition, until after the
21cost of the damage to the vehicle and liability therefor is
22agreed to between the rental company and renter or is
23determined pursuant to law.
24    (g) If insurance coverage exists under the renter's
25personal insurance policy and the coverage is confirmed during
26regular business hours, the renter may require that the rental

 

 

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1company must submit any claims to the renter's personal
2insurance carrier as the renter's agent. The rental company
3shall not make any written or oral representations that it will
4not present claims or negotiate with the renter's insurance
5carrier. For purposes of this Section, confirmation of coverage
6includes telephone confirmation from insurance company
7representatives during regular business hours. After
8confirmation of coverage, the amount of claim shall be resolved
9between the insurance carrier and the rental company.
10(Source: P.A. 90-113, eff. 7-14-97.)
 
11    Section 10. The Renter's Financial Responsibility and
12Protection Act is amended by changing Section 15 as follows:
 
13    (625 ILCS 27/15)
14    Sec. 15. Prohibited practices.
15    (a) A rental company may not sell a damage waiver unless
16the renter agrees to the damage waiver in writing at or prior
17to the time the rental agreement is executed.
18    (b) A rental company may not void a damage waiver except
19for one or more of the following reasons:
20        (1) Damage or loss while the rental vehicle is used to
21    carry persons or property for a charge or fee.
22        (2) Damage or loss during an organized or agreed upon
23    racing or speed contest or demonstration or pushing or
24    pulling activity in which the rental vehicle is actively

 

 

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1    involved.
2        (3) Damage or loss that could reasonably be expected
3    from an intentional or criminal act of the driver other
4    than a traffic infraction.
5        (4) Damage or loss to any rental vehicle resulting from
6    any auto business operation, including but not limited to
7    repairing, servicing, testing, washing, parking, storing,
8    or selling of automobiles.
9        (5) Damage or loss occurring to a rental vehicle if the
10    rental contract is based on fraudulent or material
11    misrepresentation by the renter.
12        (6) Damage or loss arising out of the use of the rental
13    vehicle outside the continental United States when such use
14    is specifically prohibited in the rental agreement.
15        (7) Damage or loss occurring while the rental vehicle
16    is operated by a driver not permitted under the rental
17    agreement.
18        (8) Damage or loss occurring while the rental vehicle
19    is operated by a driver under the influence of alcohol,
20    other drug or drugs, intoxicating compound or compounds, or
21    any combination thereof and convicted of violating
22    subsection (a) of Section 11-501 of the Illinois Vehicle
23    Code.
24    (c) A rental company shall not charge more than $12.50 per
25full or partial 24 hour rental day for a collision damage
26waiver prior to January 1, 2014. Beginning January 1, 2014, a

 

 

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1rental company shall not charge more than $13.50 per full or
2partial 24 hour rental day for a collision damage waiver.
3    (d) A rental company may offer a collision damage waiver on
4any rental vehicle having a value in excess of a Manufacturer's
5Suggested Retail Price (MSRP) of $50,000; however, the
6provisions of subsection (c) of this Section shall not apply to
7collision damage waivers under this subsection (d).
8(Source: P.A. 98-428, eff. 8-16-13.)
 
9    Section 99. Effective date. This Act takes effect October
101, 2015.".