Full Text of HB3712 102nd General Assembly
HB3712enr 102ND GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning transportation.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 1. Short title. This Act may be cited as the | 5 | | Car-Sharing Program Act. | 6 | | Section 5. Definitions. As used in this Act: | 7 | | "Peer-to-peer car sharing" means the authorized use of a | 8 | | vehicle by an individual other than the vehicle's owner | 9 | | through a car-sharing program. "Peer-to-peer car sharing" does | 10 | | not include "rent a motor vehicle to another" within the | 11 | | meaning of in Section 6-305 of the Illinois Vehicle Code; a | 12 | | transaction involving a "rental agreement" as defined in | 13 | | Section 10 of the Renter's Financial Responsibility and | 14 | | Protection Act; or "renting" as defined in Section 2 of the | 15 | | Automobile Renting Occupation and Use Tax Act. | 16 | | "Car-sharing agreement" means the terms and conditions | 17 | | applicable to a shared-vehicle owner and a shared-vehicle | 18 | | driver that govern the use of a shared vehicle through a | 19 | | car-sharing program. "Car-sharing agreement" does not include | 20 | | a "rental agreement" as defined in Section 10 of the Renter's | 21 | | Financial Responsibility and Protection Act, a "rental | 22 | | agreement" within the meaning of Section 6-305.2 of the | 23 | | Illinois Vehicle Code, or a "rental agreement" as defined in |
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| 1 | | Section 6-305.3 of the Illinois Vehicle Code. | 2 | | "Car-sharing period" means the period that commences with | 3 | | the delivery period, or, if there is no delivery period, that | 4 | | commences with the car-sharing start time and in either case | 5 | | ends at the car-sharing termination time. | 6 | | "Car-sharing program" means a business platform that | 7 | | connects vehicle owners with drivers to enable the sharing of | 8 | | vehicles for financial consideration. "Car-sharing program" | 9 | | does not include a "rental company" as defined in Section 10 of | 10 | | the Renter's Financial Responsibility and Protection Act; | 11 | | "rentor" as defined in Section 2 of the Automobile Renting | 12 | | Occupation and Use Tax Act; a person or entity whose business | 13 | | is to "rent a motor vehicle" to another person within the | 14 | | meaning of Section 6-305 or 6-305.2 of the Illinois Vehicle | 15 | | Code; or a "rental car company" as that term is used in Section | 16 | | 6-305 of the Illinois Vehicle Code. A "car-sharing program" is | 17 | | not "engaged in the business of renting automobiles" within | 18 | | the meaning of Section 5-1032 of the Counties Code or Section | 19 | | 8-11-7 of the Illinois Municipal Code. | 20 | | "Car-sharing start time" means the time when the shared | 21 | | vehicle becomes subject to the control of the shared-vehicle | 22 | | driver at or after the time the reservation of a shared vehicle | 23 | | is scheduled to begin as documented in the records of a | 24 | | car-sharing program. | 25 | | "Car-sharing termination time" means the earliest of the | 26 | | following events: |
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| 1 | | (1) the expiration of the agreed-upon period | 2 | | established for the use of a shared vehicle according to | 3 | | the terms of the car-sharing agreement if the shared | 4 | | vehicle is delivered to the location agreed upon in the | 5 | | car-sharing agreement; | 6 | | (2) the time the shared vehicle is returned to a | 7 | | location as alternatively agreed upon by the | 8 | | shared-vehicle owner and shared-vehicle driver as | 9 | | communicated through a car-sharing program, which | 10 | | alternatively agreed-upon location shall be incorporated | 11 | | into the car-sharing agreement; or | 12 | | (3) the time the shared-vehicle owner or the | 13 | | shared-vehicle owner's authorized designee takes | 14 | | possession and control of the shared vehicle.
| 15 | | "Delivery period" means the period during which a shared | 16 | | vehicle is being delivered to the location of the car-sharing | 17 | | start time, if applicable, as documented by the governing | 18 | | car-sharing agreement. | 19 | | "Shared vehicle" means a vehicle that is available for | 20 | | sharing through a car-sharing program. "Shared vehicle" does | 21 | | not include a rental vehicle within the meaning of Section | 22 | | 6-305.2 of the Illinois Vehicle Code. | 23 | | "Shared-vehicle driver" means an individual who has been | 24 | | authorized to drive the shared vehicle by the shared-vehicle | 25 | | owner under a car-sharing agreement. | 26 | | "Shared-vehicle owner" means the registered owner, or a |
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| 1 | | person or entity designated by the registered owner, of a | 2 | | vehicle made available for sharing to shared-vehicle drivers | 3 | | through a car-sharing program. "Shared-vehicle owner" does not | 4 | | include a
"rental company" as defined in Section 10 of the | 5 | | Renter's Financial Responsibility and Protection Act; a | 6 | | "rentor" as defined in Section 2 of the Automobile Renting | 7 | | Occupation and Use Tax Act; a person or entity whose business | 8 | | is to "rent a motor vehicle" to another person within the | 9 | | meaning of Section 6-305 or 6-305.2 of the Illinois Vehicle | 10 | | Code; or a "rental car company" as that term is used in Section | 11 | | 6-305 of the Illinois Vehicle Code. A "shared-vehicle owner" | 12 | | is not "engaged in the business of renting automobiles" within | 13 | | the meaning of Section 5-1032 of the Counties Code or Section | 14 | | 8-11-7 of the Illinois Municipal Code. | 15 | | Section 10. Insurance coverage during car-sharing period.
| 16 | | (a) Except as provided in subsection (b), a car-sharing | 17 | | program shall assume liability of a shared-vehicle owner for | 18 | | bodily injury or property damage to third parties or uninsured | 19 | | and underinsured motorist or personal injury protection losses | 20 | | during the car-sharing period in an amount stated in the | 21 | | car-sharing agreement, which amount may not be less than 4 | 22 | | times the minimum amounts required under Section 7-601 of the | 23 | | Illinois Vehicle Code. | 24 | | (b) Notwithstanding the definition of "car-sharing | 25 | | termination time" set forth in Section 5, the assumption of |
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| 1 | | liability under subsection (a) does not apply to any | 2 | | shared-vehicle owner when: | 3 | | (1) the shared-vehicle owner makes an intentional or | 4 | | fraudulent material misrepresentation or omission to the | 5 | | car-sharing program before the car-sharing period in which | 6 | | the loss occurred; or | 7 | | (2) the shared-vehicle owner acts in concert with a | 8 | | shared-vehicle driver who fails to return the shared | 9 | | vehicle pursuant to the terms of car-sharing agreement. | 10 | | (c) Notwithstanding the definition of "car-sharing | 11 | | termination time" set forth in Section 5, the assumption of | 12 | | liability under subsection (a) applies to bodily injury, | 13 | | property damage, and uninsured and underinsured motorist or | 14 | | personal injury protection losses by damaged third parties | 15 | | required by Section 7-601 of the Illinois Vehicle Code. | 16 | | (d) A car-sharing program shall ensure that, during each | 17 | | car-sharing period, the shared-vehicle owner and the | 18 | | shared-vehicle driver are insured under a motor vehicle | 19 | | liability insurance policy that provides insurance coverage in | 20 | | amounts that, for the shared-vehicle driver, are equal to 2 | 21 | | times the minimum amounts set forth in Section 7-601 of the | 22 | | Illinois Vehicle Code and: | 23 | | (1) recognizes that the shared vehicle insured under | 24 | | the policy is made available and used through a | 25 | | car-sharing program; or | 26 | | (2) does not exclude use of a shared vehicle by a |
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| 1 | | shared-vehicle driver. | 2 | | (e) The insurance described under subsection (d) may be | 3 | | satisfied by motor vehicle liability insurance maintained by: | 4 | | (1) a shared-vehicle owner; | 5 | | (2) a shared-vehicle driver; | 6 | | (3) a car-sharing program; or | 7 | | (4) a combination of a shared-vehicle owner, a | 8 | | shared-vehicle driver, and a car-sharing program. | 9 | | (f) The insurance described in subsection (e) that is | 10 | | satisfying the insurance requirement of subsection (d) shall | 11 | | be primary during each car-sharing period, and if a claim | 12 | | occurs in another state with minimum financial responsibility | 13 | | limits higher than those set forth in Section 7-601 of the | 14 | | Illinois Vehicle Code during the car-sharing period, the | 15 | | coverage maintained under subsection (e) shall satisfy the | 16 | | difference in minimum coverage amounts up to the applicable | 17 | | policy limits. | 18 | | (g) The insurer, insurers, or car-sharing program shall | 19 | | assume primary liability for a claim if it is in whole or in | 20 | | part providing the insurance required under subsections (d) | 21 | | and (e) and: | 22 | | (1) a dispute exists regarding who was in control of | 23 | | the shared vehicle at the time of the loss and the | 24 | | car-sharing program does not have available, did not | 25 | | retain, or fails to provide the information required by | 26 | | Section 25; or |
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| 1 | | (2) a dispute exists as to whether the shared vehicle | 2 | | was returned to the alternatively agreed-upon location | 3 | | referenced in Section 5.
| 4 | | (h) If insurance maintained by a shared-vehicle owner or | 5 | | shared-vehicle driver in accordance with subsection (e) has | 6 | | lapsed or does not provide the required coverage, insurance | 7 | | maintained by a car-sharing program shall provide the coverage | 8 | | required by subsection (d) beginning with the first dollar of | 9 | | a claim and shall have the duty to defend the claim except | 10 | | under circumstances as set forth in subsection (b). | 11 | | (i) An insurance policy maintained by the car-sharing | 12 | | program shall not make the coverage dependent on another | 13 | | automobile insurer or policy first denying a claim. | 14 | | (j) Nothing in this Section: | 15 | | (1) limits the liability of the car-sharing program | 16 | | for any act or omission of the car-sharing program itself | 17 | | that results in injury to any person as a result of the use | 18 | | of a shared vehicle through a car-sharing program; or | 19 | | (2) limits the ability of the car-sharing program to, | 20 | | by contract, seek indemnification from the shared-vehicle | 21 | | owner or the shared-vehicle driver for economic loss | 22 | | sustained by the car-sharing program resulting from a | 23 | | breach of the terms and conditions of the car-sharing | 24 | | agreement. | 25 | | Section 15. Notification of implications of lien. At the |
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| 1 | | time a vehicle owner registers as a shared-vehicle owner on a | 2 | | car-sharing program and before the time when the | 3 | | shared-vehicle owner makes a shared vehicle available for car | 4 | | sharing on the car-sharing program, the car-sharing program | 5 | | shall notify the shared-vehicle owner that, if the shared | 6 | | vehicle has a lien against it, the use of the shared vehicle | 7 | | through a car-sharing program, including use without physical | 8 | | damage coverage, may violate the terms of the contract with | 9 | | the lienholder. | 10 | | Section 20. Exclusions in motor vehicle liability | 11 | | insurance policies.
| 12 | | (a) An authorized insurer that writes motor vehicle | 13 | | liability insurance in this State may exclude any coverage and | 14 | | the duty to defend or indemnify for any claim afforded under a | 15 | | shared-vehicle owner's motor vehicle liability insurance | 16 | | policy, including, but not limited to: | 17 | | (1) liability coverage for bodily injury and property | 18 | | damage; | 19 | | (2) uninsured and underinsured motorist coverage; | 20 | | (3) medical payments coverage; | 21 | | (4) comprehensive physical damage coverage; and | 22 | | (5) collision physical damage coverage. | 23 | | (b) Nothing in this Act invalidates or limits an exclusion | 24 | | contained in a motor vehicle liability insurance policy, | 25 | | including any insurance policy in use or approved for use that |
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| 1 | | excludes coverage for motor vehicles made available for rent, | 2 | | sharing, or hire, or for any business use. | 3 | | (c) Nothing in this Act invalidates, limits, or restricts | 4 | | an insurer's ability
under existing law to underwrite any | 5 | | insurance policy. Nothing in this Act
invalidates, limits, or | 6 | | restricts an insurer's ability under existing law to cancel
| 7 | | and non-renew policies.
| 8 | | Section 25. Recordkeeping; use of vehicle in car sharing. | 9 | | A car-sharing program shall collect and verify records | 10 | | pertaining to the use of a vehicle, including, but not limited | 11 | | to, times used, car-sharing period pick up and drop off | 12 | | locations, fees paid by the shared-vehicle driver, and | 13 | | revenues received by the shared-vehicle owner, and the | 14 | | car-sharing program shall provide that information upon | 15 | | request to the shared-vehicle owner, the shared-vehicle | 16 | | owner's insurer, or the shared-vehicle driver's insurer to | 17 | | facilitate a claim coverage investigation, settlement, | 18 | | negotiation, or litigation. The car-sharing program shall | 19 | | retain the records for a period not less than the applicable | 20 | | personal injury statute of limitations. | 21 | | Section 30. Exemption; vicarious liability. A car-sharing | 22 | | program and a shared-vehicle owner shall be exempt from | 23 | | vicarious liability consistent with 49 U.S.C. 30106 and under | 24 | | any State or local law that imposes liability solely based on |
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| 1 | | vehicle ownership. | 2 | | Section 35. Recovery against indemnification. A motor | 3 | | vehicle insurer that defends or indemnifies a claim against a | 4 | | shared vehicle that is excluded under the terms of its policy | 5 | | shall have the right to seek recovery against the motor | 6 | | vehicle insurer of the car-sharing program if the claim is: | 7 | | (1) made against the shared-vehicle owner or the | 8 | | shared-vehicle driver for loss or injury that occurs | 9 | | during the car-sharing period; and | 10 | | (2) excluded under the terms of its policy. | 11 | | Section 40. Insurable interest.
| 12 | | (a) Notwithstanding any other law, statute, rule, or | 13 | | regulation to the contrary, a car-sharing program shall have | 14 | | an insurable interest in a shared vehicle during the | 15 | | car-sharing period and may provide or offer to provide | 16 | | coverage to a shared-vehicle owner or a shared-vehicle driver | 17 | | under the policy of insurance described in subsection (c). | 18 | | (b) Nothing in this Section shall be construed as | 19 | | modifying the obligations of the car-sharing program pursuant | 20 | | to Section 10. | 21 | | (c) A car-sharing program may own and maintain, as the | 22 | | named insured, one or more policies of motor vehicle liability | 23 | | insurance that separately or in combination provides coverage | 24 | | for: |
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| 1 | | (1) liabilities assumed by the car-sharing program | 2 | | under a car-sharing agreement; | 3 | | (2) any liability of the shared-vehicle owner; | 4 | | (3) damage or loss to the shared vehicle; or | 5 | | (4) any liability of the shared-vehicle driver. | 6 | | Section 45. Consumer protection disclosures. Each | 7 | | car-sharing agreement made in this State shall disclose to the | 8 | | shared-vehicle owner and the shared-vehicle driver: | 9 | | (1) Any right of the car-sharing program to seek | 10 | | indemnification from the shared-vehicle owner or the | 11 | | shared-vehicle driver for economic loss sustained by the | 12 | | car-sharing program resulting from a breach of the terms | 13 | | and conditions of the car-sharing agreement. | 14 | | (2) That a motor vehicle liability insurance policy | 15 | | issued to the shared-vehicle owner for the shared vehicle | 16 | | or to the shared-vehicle driver does not provide a defense | 17 | | or indemnification for any claim asserted by the | 18 | | car-sharing program. | 19 | | (3) That the car-sharing program's insurance coverage | 20 | | on the shared-vehicle owner and the shared-vehicle driver | 21 | | is in effect only during each car-sharing period and that, | 22 | | for any use of the shared vehicle by the shared-vehicle | 23 | | driver after the car-sharing termination time, the | 24 | | shared-vehicle driver and the shared-vehicle owner may not | 25 | | have insurance coverage. |
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| 1 | | (4) The daily rate, fees, and, if applicable, any | 2 | | insurance or protection package costs that are charged to | 3 | | the shared-vehicle owner or the shared-vehicle driver. | 4 | | (5) That the shared-vehicle owner's motor vehicle | 5 | | liability insurance may not provide coverage for a shared | 6 | | vehicle. | 7 | | (6) An emergency telephone number for personnel | 8 | | capable of fielding roadside assistance and other customer | 9 | | service inquiries. | 10 | | (7) If there are conditions under which a | 11 | | shared-vehicle driver shall maintain a personal automobile | 12 | | insurance policy with certain applicable coverage limits | 13 | | on a primary basis in order to book a shared vehicle. | 14 | | Section 50. Driver's license verification and data | 15 | | retention.
| 16 | | (a) A car-sharing program may not enter into a car-sharing | 17 | | agreement with a driver unless the driver who will operate the | 18 | | shared vehicle: | 19 | | (1) holds a driver's license issued under the laws of | 20 | | this State that authorizes the driver to
operate vehicles | 21 | | of the class of the shared vehicle; or | 22 | | (2) is a nonresident who: | 23 | | (i) has a driver's license issued by the state or | 24 | | country of the driver's residence that authorizes the | 25 | | driver in that state or country to drive vehicles of |
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| 1 | | the class of the shared vehicle; and | 2 | | (ii) is at least the same age as that required of a | 3 | | resident to drive; or | 4 | | (3) otherwise is specifically authorized under the | 5 | | laws of this State to drive vehicles of the class of the | 6 | | shared vehicle. | 7 | | (b) A car-sharing program shall keep a record of: | 8 | | (1) the name and address of the shared-vehicle driver; | 9 | | (2) the number of the driver's license of the | 10 | | shared-vehicle driver and each other person, if any, who | 11 | | will operate the shared vehicle; and | 12 | | (3) the place of issuance of the driver's license. | 13 | | Section 55. Responsibility for equipment. A car-sharing | 14 | | program shall have sole responsibility for any equipment, such | 15 | | as a GPS system or other special equipment, that is put in or | 16 | | on the vehicle to monitor or facilitate the car-sharing | 17 | | transaction, and shall agree to indemnify and hold harmless | 18 | | the vehicle owner for any damage to or theft of such equipment | 19 | | during the car-sharing period not caused by the vehicle owner. | 20 | | The car-sharing program has the right to seek recovery from | 21 | | the shared-vehicle driver for any loss or damage to such | 22 | | equipment that occurs during the car-sharing period. | 23 | | Section 60. Automobile safety recalls.
| 24 | | (a) At the time a vehicle owner registers as a |
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| 1 | | shared-vehicle owner on a car-sharing program and before the | 2 | | time the shared-vehicle owner makes a shared vehicle available | 3 | | for car sharing on the car-sharing program, the car-sharing | 4 | | program shall: | 5 | | (1) verify that the shared vehicle does not have any | 6 | | safety recalls on the vehicle for which the repairs have | 7 | | not been made; and | 8 | | (2) notify the shared-vehicle owner of the | 9 | | requirements under subsection (b). | 10 | | (b) (1) If the shared-vehicle owner has received an actual | 11 | | notice of a safety recall on the vehicle, a shared-vehicle | 12 | | owner may not make a vehicle available as a shared vehicle on a | 13 | | car-sharing program until the safety recall repair has been | 14 | | made. | 15 | | (2) If a shared-vehicle owner receives an actual notice of | 16 | | a safety recall on a shared vehicle while the shared vehicle is | 17 | | made available on the car-sharing program, the shared-vehicle | 18 | | owner shall remove the shared vehicle from availability on the | 19 | | car-sharing program, as soon as practicably possible after | 20 | | receiving the notice of the safety recall and until the safety | 21 | | recall repair has been made. | 22 | | (3) If a shared-vehicle owner receives an actual notice of | 23 | | a safety recall while the shared vehicle is being used in the | 24 | | possession of a shared-vehicle driver, as soon as practicably | 25 | | possible after receiving the notice of the safety recall, the | 26 | | shared-vehicle owner shall notify the car-sharing program |
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| 1 | | about the safety recall so that the shared-vehicle owner may | 2 | | address the safety recall repair.
| 3 | | Section 99. Effective date. This Act takes effect January | 4 | | 1, 2022.
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