Full Text of HB1497 103rd General Assembly
HB1497sam003 103RD GENERAL ASSEMBLY | Sen. Christopher Belt Filed: 5/10/2023
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| 1 | | AMENDMENT TO HOUSE BILL 1497
| 2 | | AMENDMENT NO. ______. Amend House Bill 1497 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Illinois Vehicle Code is amended by | 5 | | changing 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 | 9 | | rents a motor vehicle to another may hold
the renter liable to | 10 | | the extent permitted under subsections (b) through (d) for
| 11 | | physical or mechanical damage to the rented motor vehicle that | 12 | | occurs during
the time the motor vehicle is under the rental | 13 | | agreement.
| 14 | | (b) Limits on liability due to theft for a : vehicle having | 15 | | an MSRP of $50,000 or less. For a vehicle that is stolen and | 16 | | that has an MSRP of $50,000 or less, the The total liability of |
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| 1 | | the a renter under subsection
(a) shall be the actual and | 2 | | reasonable costs incurred by the loss due to theft of the | 3 | | rental motor vehicle up to $5,000; provided, however, that if | 4 | | it is established that the renter or authorized driver failed | 5 | | to exercise ordinary care while in possession of the vehicle | 6 | | or that the renter or authorized driver committed or aided and | 7 | | abetted the commission of a theft, then the damages shall be | 8 | | the actual and reasonable costs of the rental vehicle up to its | 9 | | fair market value, as determined by the customary market for | 10 | | the sale of the vehicle. for damage to a motor vehicle with a | 11 | | Manufacturer's Suggested Retail Price (MSRP) of $50,000 or | 12 | | less may not exceed all of the following:
| 13 | | (1) The lesser of:
| 14 | | (A) Actual and reasonable costs that the person | 15 | | who rents a motor
vehicle to another incurred to | 16 | | repair the motor vehicle or that the rental
company | 17 | | would have incurred if the motor vehicle had been
| 18 | | repaired, which shall reflect any discounts, price | 19 | | reductions, or adjustments
available to the rental | 20 | | company; or
| 21 | | (B) The fair market value of that motor vehicle | 22 | | immediately before the
damage occurred, as determined | 23 | | in the customary market for the retail sale of
that | 24 | | motor vehicle; and
| 25 | | (2) Actual and reasonable costs incurred by the loss | 26 | | due to theft of the
rental motor vehicle up to $2,000; |
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| 1 | | provided, however, that if it is
established that the | 2 | | renter or an authorized driver failed to exercise ordinary
| 3 | | care while in possession of the vehicle or that the renter | 4 | | or an authorized
driver committed or aided and abetted the | 5 | | commission of the theft, then the
damages shall be the | 6 | | actual and reasonable costs of the rental vehicle up to
| 7 | | its fair market value, as determined by the customary | 8 | | market for the sale of
that vehicle.
| 9 | | For purposes of this subsection (b), for the period prior | 10 | | to June 1, 1998,
the
maximum amount that may be recovered from | 11 | | an authorized driver shall not exceed
$6,000; for the period | 12 | | beginning June 1, 1998 through May 31, 1999, the maximum
| 13 | | recovery shall not exceed $7,500; and for the period beginning | 14 | | June 1, 1999
through May 31, 2000, the maximum recovery shall | 15 | | not exceed $9,000. Beginning
June
1, 2000,
and annually each | 16 | | June 1 thereafter, the maximum amount that may be recovered
| 17 | | from an authorized driver under this subsection (b) shall be | 18 | | increased by $500 above the maximum recovery
allowed | 19 | | immediately prior to June 1 of that year.
| 20 | | (b-5) Limits on liability due to theft for a : vehicle | 21 | | having an MSRP of more than $50,000. For a vehicle that is | 22 | | stolen and that has an MSRP of more than $50,000, the The total | 23 | | liability of the a renter under subsection (a) shall be the | 24 | | actual and reasonable cost incurred by the loss due to theft of | 25 | | the rental motor vehicle up to $40,000; provided, however that | 26 | | if it is established that the renter or authorized driver |
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| 1 | | failed to exercise ordinary care while in possession of the | 2 | | vehicle or that the renter or authorized driver committed or | 3 | | aided and abetted the commission of a theft, then the damages | 4 | | shall be the actual and reasonable costs of the rental vehicle | 5 | | up to its fair market value, as determined by the customary | 6 | | market for the sale of the vehicle. for damage to a motor | 7 | | vehicle with a Manufacturer's Suggested Retail Price (MSRP) of | 8 | | more than $50,000 may not exceed all of the following: | 9 | | (1) the lesser of: | 10 | | (A) actual and reasonable costs that the person | 11 | | who rents a motor vehicle to another incurred to | 12 | | repair the motor vehicle or that the rental company | 13 | | would have incurred if the motor vehicle had been | 14 | | repaired, which shall reflect any discounts, price | 15 | | reductions, or adjustments available to the rental | 16 | | company; or | 17 | | (B) the fair market value of that motor vehicle | 18 | | immediately before the damage occurred, as determined | 19 | | in the customary market for the retail sale of that | 20 | | motor vehicle; and | 21 | | (2) the actual and reasonable costs incurred by the | 22 | | loss due to theft of the rental motor vehicle up to | 23 | | $40,000. | 24 | | The maximum recovery for a motor vehicle with a | 25 | | Manufacturer's Suggested Retail Price (MSRP) of more than | 26 | | $50,000 under this subsection (b-5) shall not exceed $40,000 |
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| 1 | | on the effective date of this amendatory Act of the 99th | 2 | | General Assembly. On October 1, 2016, and for the next 3 years | 3 | | thereafter, the maximum amount that may be recovered from an | 4 | | authorized driver under this subsection (b-5) shall be | 5 | | increased by $2,500 above the prior year's maximum recovery. | 6 | | On October 1, 2020, and for each year thereafter, the maximum | 7 | | amount that may be recovered from an authorized driver under | 8 | | this subsection (b-5) shall be increased by $1,000 above the | 9 | | prior year's maximum recovery. | 10 | | (b-10) Beginning on the effective date of this amendatory | 11 | | Act of the 103rd General Assembly and for 6 months after, a | 12 | | person who rents a motor vehicle to another shall provide | 13 | | notice to the renter of the motor vehicle of the changes | 14 | | reflected in this amendatory Act of the 103rd General | 15 | | Assembly. The notice shall be posted in a conspicuous and | 16 | | unobscured place that is separate and apart from any other | 17 | | information. | 18 | | (c) Multiple recoveries prohibited. Any person who rents a | 19 | | motor
vehicle to another may not hold the renter liable for any | 20 | | amounts that the
rental company recovers from any other party.
| 21 | | (d) Repair estimates. A person who rents a motor vehicle | 22 | | to another may
not collect or attempt to collect the amount | 23 | | described in subsection (b) or (b-5) unless
the rental company | 24 | | obtains an estimate from a repair company or an appraiser in
| 25 | | the business of providing such appraisals on the costs of | 26 | | repairing the motor
vehicle, makes a copy of the estimate |
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| 1 | | available upon request to the renter who
may be liable under | 2 | | subsection (a), or the insurer of the renter, and submits a
| 3 | | copy of the estimate with any claim to collect the amount | 4 | | described in
subsection (b) or (b-5). In order to collect the | 5 | | amount described in subsection (b-5), a person renting a motor | 6 | | vehicle to another must also provide the renter's personal | 7 | | insurance company with reasonable notice and an opportunity to | 8 | | inspect damages.
| 9 | | (d-5) In the event of loss due to theft of the rental motor | 10 | | vehicle with a MSRP more than $50,000, the rental company | 11 | | shall provide reasonable notice of the theft to the renter's | 12 | | personal insurance company. | 13 | | (e) Duty to mitigate. A claim against a renter resulting | 14 | | from damage or
loss to a rental vehicle must be reasonably and | 15 | | rationally related to the
actual loss incurred. A rental | 16 | | company shall mitigate damages where possible
and shall not | 17 | | assert or collect any claim for physical damage which exceeds | 18 | | the
actual costs of the repair, including all discounts or | 19 | | price reductions.
| 20 | | (f) No rental company shall require a deposit or an | 21 | | advance charge
against
the credit card of a renter, in any | 22 | | form, for damages to a vehicle which is in
the renter's | 23 | | possession, custody, or control. No rental company shall | 24 | | require
any payment for damage to the rental vehicle, upon the | 25 | | renter's return of the
vehicle in a
damaged condition, until | 26 | | after the cost of the damage to the vehicle and
liability |
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| 1 | | therefor is agreed to between the rental company and renter or | 2 | | is
determined pursuant to law.
| 3 | | (g) If insurance coverage exists under the renter's | 4 | | personal insurance
policy and the coverage is confirmed during | 5 | | regular business hours, the renter
may require that the rental
| 6 | | company must submit any claims to the renter's personal | 7 | | insurance carrier as
the renter's agent. The rental company | 8 | | shall not make any written or oral
representations that it | 9 | | will not present claims or negotiate with the renter's
| 10 | | insurance carrier. For purposes of this Section, confirmation | 11 | | of coverage
includes telephone confirmation from insurance | 12 | | company representatives during
regular business hours. After
| 13 | | confirmation of coverage, the amount of claim shall be | 14 | | resolved between the
insurance carrier and the rental company.
| 15 | | (Source: P.A. 99-201, eff. 10-1-15 .)
| 16 | | Section 99. Effective date. This Act takes effect upon | 17 | | becoming law.".
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