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Public Act 102-0497 | ||||
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AN ACT concerning transportation.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 1. Short title. This Act may be cited as the | ||||
Car-Sharing Program Act. | ||||
Section 5. Definitions. As used in this Act: | ||||
"Peer-to-peer car sharing" means the authorized use of a | ||||
vehicle by an individual other than the vehicle's owner | ||||
through a car-sharing program. "Peer-to-peer car sharing" does | ||||
not include "rent a motor vehicle to another" within the | ||||
meaning of in Section 6-305 of the Illinois Vehicle Code; a | ||||
transaction involving a "rental agreement" as defined in | ||||
Section 10 of the Renter's Financial Responsibility and | ||||
Protection Act; or "renting" as defined in Section 2 of the | ||||
Automobile Renting Occupation and Use Tax Act. | ||||
"Car-sharing agreement" means the terms and conditions | ||||
applicable to a shared-vehicle owner and a shared-vehicle | ||||
driver that govern the use of a shared vehicle through a | ||||
car-sharing program. "Car-sharing agreement" does not include | ||||
a "rental agreement" as defined in Section 10 of the Renter's | ||||
Financial Responsibility and Protection Act, a "rental | ||||
agreement" within the meaning of Section 6-305.2 of the | ||||
Illinois Vehicle Code, or a "rental agreement" as defined in |
Section 6-305.3 of the Illinois Vehicle Code. | ||
"Car-sharing period" means the period that commences with | ||
the delivery period, or, if there is no delivery period, that | ||
commences with the car-sharing start time and in either case | ||
ends at the car-sharing termination time. | ||
"Car-sharing program" means a business platform that | ||
connects vehicle owners with drivers to enable the sharing of | ||
vehicles for financial consideration. "Car-sharing program" | ||
does not include a "rental company" as defined in Section 10 of | ||
the Renter's Financial Responsibility and Protection Act; | ||
"rentor" as defined in Section 2 of the Automobile Renting | ||
Occupation and Use Tax Act; a person or entity whose business | ||
is to "rent a motor vehicle" to another person within the | ||
meaning of Section 6-305 or 6-305.2 of the Illinois Vehicle | ||
Code; or a "rental car company" as that term is used in Section | ||
6-305 of the Illinois Vehicle Code. A "car-sharing program" is | ||
not "engaged in the business of renting automobiles" within | ||
the meaning of Section 5-1032 of the Counties Code or Section | ||
8-11-7 of the Illinois Municipal Code. | ||
"Car-sharing start time" means the time when the shared | ||
vehicle becomes subject to the control of the shared-vehicle | ||
driver at or after the time the reservation of a shared vehicle | ||
is scheduled to begin as documented in the records of a | ||
car-sharing program. | ||
"Car-sharing termination time" means the earliest of the | ||
following events: |
(1) the expiration of the agreed-upon period | ||
established for the use of a shared vehicle according to | ||
the terms of the car-sharing agreement if the shared | ||
vehicle is delivered to the location agreed upon in the | ||
car-sharing agreement; | ||
(2) the time the shared vehicle is returned to a | ||
location as alternatively agreed upon by the | ||
shared-vehicle owner and shared-vehicle driver as | ||
communicated through a car-sharing program, which | ||
alternatively agreed-upon location shall be incorporated | ||
into the car-sharing agreement; or | ||
(3) the time the shared-vehicle owner or the | ||
shared-vehicle owner's authorized designee takes | ||
possession and control of the shared vehicle.
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"Delivery period" means the period during which a shared | ||
vehicle is being delivered to the location of the car-sharing | ||
start time, if applicable, as documented by the governing | ||
car-sharing agreement. | ||
"Shared vehicle" means a vehicle that is available for | ||
sharing through a car-sharing program. "Shared vehicle" does | ||
not include a rental vehicle within the meaning of Section | ||
6-305.2 of the Illinois Vehicle Code. | ||
"Shared-vehicle driver" means an individual who has been | ||
authorized to drive the shared vehicle by the shared-vehicle | ||
owner under a car-sharing agreement. | ||
"Shared-vehicle owner" means the registered owner, or a |
person or entity designated by the registered owner, of a | ||
vehicle made available for sharing to shared-vehicle drivers | ||
through a car-sharing program. "Shared-vehicle owner" does not | ||
include a
"rental company" as defined in Section 10 of the | ||
Renter's Financial Responsibility and Protection Act; a | ||
"rentor" as defined in Section 2 of the Automobile Renting | ||
Occupation and Use Tax Act; a person or entity whose business | ||
is to "rent a motor vehicle" to another person within the | ||
meaning of Section 6-305 or 6-305.2 of the Illinois Vehicle | ||
Code; or a "rental car company" as that term is used in Section | ||
6-305 of the Illinois Vehicle Code. A "shared-vehicle owner" | ||
is not "engaged in the business of renting automobiles" within | ||
the meaning of Section 5-1032 of the Counties Code or Section | ||
8-11-7 of the Illinois Municipal Code. | ||
Section 10. Insurance coverage during car-sharing period.
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(a) Except as provided in subsection (b), a car-sharing | ||
program shall assume liability of a shared-vehicle owner for | ||
bodily injury or property damage to third parties or uninsured | ||
and underinsured motorist or personal injury protection losses | ||
during the car-sharing period in an amount stated in the | ||
car-sharing agreement, which amount may not be less than 4 | ||
times the minimum amounts required under Section 7-601 of the | ||
Illinois Vehicle Code. | ||
(b) Notwithstanding the definition of "car-sharing | ||
termination time" set forth in Section 5, the assumption of |
liability under subsection (a) does not apply to any | ||
shared-vehicle owner when: | ||
(1) the shared-vehicle owner makes an intentional or | ||
fraudulent material misrepresentation or omission to the | ||
car-sharing program before the car-sharing period in which | ||
the loss occurred; or | ||
(2) the shared-vehicle owner acts in concert with a | ||
shared-vehicle driver who fails to return the shared | ||
vehicle pursuant to the terms of car-sharing agreement. | ||
(c) Notwithstanding the definition of "car-sharing | ||
termination time" set forth in Section 5, the assumption of | ||
liability under subsection (a) applies to bodily injury, | ||
property damage, and uninsured and underinsured motorist or | ||
personal injury protection losses by damaged third parties | ||
required by Section 7-601 of the Illinois Vehicle Code. | ||
(d) A car-sharing program shall ensure that, during each | ||
car-sharing period, the shared-vehicle owner and the | ||
shared-vehicle driver are insured under a motor vehicle | ||
liability insurance policy that provides insurance coverage in | ||
amounts that, for the shared-vehicle driver, are equal to 2 | ||
times the minimum amounts set forth in Section 7-601 of the | ||
Illinois Vehicle Code and: | ||
(1) recognizes that the shared vehicle insured under | ||
the policy is made available and used through a | ||
car-sharing program; or | ||
(2) does not exclude use of a shared vehicle by a |
shared-vehicle driver. | ||
(e) The insurance described under subsection (d) may be | ||
satisfied by motor vehicle liability insurance maintained by: | ||
(1) a shared-vehicle owner; | ||
(2) a shared-vehicle driver; | ||
(3) a car-sharing program; or | ||
(4) a combination of a shared-vehicle owner, a | ||
shared-vehicle driver, and a car-sharing program. | ||
(f) The insurance described in subsection (e) that is | ||
satisfying the insurance requirement of subsection (d) shall | ||
be primary during each car-sharing period, and if a claim | ||
occurs in another state with minimum financial responsibility | ||
limits higher than those set forth in Section 7-601 of the | ||
Illinois Vehicle Code during the car-sharing period, the | ||
coverage maintained under subsection (e) shall satisfy the | ||
difference in minimum coverage amounts up to the applicable | ||
policy limits. | ||
(g) The insurer, insurers, or car-sharing program shall | ||
assume primary liability for a claim if it is in whole or in | ||
part providing the insurance required under subsections (d) | ||
and (e) and: | ||
(1) a dispute exists regarding who was in control of | ||
the shared vehicle at the time of the loss and the | ||
car-sharing program does not have available, did not | ||
retain, or fails to provide the information required by | ||
Section 25; or |
(2) a dispute exists as to whether the shared vehicle | ||
was returned to the alternatively agreed-upon location | ||
referenced in Section 5.
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(h) If insurance maintained by a shared-vehicle owner or | ||
shared-vehicle driver in accordance with subsection (e) has | ||
lapsed or does not provide the required coverage, insurance | ||
maintained by a car-sharing program shall provide the coverage | ||
required by subsection (d) beginning with the first dollar of | ||
a claim and shall have the duty to defend the claim except | ||
under circumstances as set forth in subsection (b). | ||
(i) An insurance policy maintained by the car-sharing | ||
program shall not make the coverage dependent on another | ||
automobile insurer or policy first denying a claim. | ||
(j) Nothing in this Section: | ||
(1) limits the liability of the car-sharing program | ||
for any act or omission of the car-sharing program itself | ||
that results in injury to any person as a result of the use | ||
of a shared vehicle through a car-sharing program; or | ||
(2) limits the ability of the car-sharing program to, | ||
by contract, seek indemnification from the shared-vehicle | ||
owner or the shared-vehicle driver for economic loss | ||
sustained by the car-sharing program resulting from a | ||
breach of the terms and conditions of the car-sharing | ||
agreement. | ||
Section 15. Notification of implications of lien. At the |
time a vehicle owner registers as a shared-vehicle owner on a | ||
car-sharing program and before the time when the | ||
shared-vehicle owner makes a shared vehicle available for car | ||
sharing on the car-sharing program, the car-sharing program | ||
shall notify the shared-vehicle owner that, if the shared | ||
vehicle has a lien against it, the use of the shared vehicle | ||
through a car-sharing program, including use without physical | ||
damage coverage, may violate the terms of the contract with | ||
the lienholder. | ||
Section 20. Exclusions in motor vehicle liability | ||
insurance policies.
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(a) An authorized insurer that writes motor vehicle | ||
liability insurance in this State may exclude any coverage and | ||
the duty to defend or indemnify for any claim afforded under a | ||
shared-vehicle owner's motor vehicle liability insurance | ||
policy, including, but not limited to: | ||
(1) liability coverage for bodily injury and property | ||
damage; | ||
(2) uninsured and underinsured motorist coverage; | ||
(3) medical payments coverage; | ||
(4) comprehensive physical damage coverage; and | ||
(5) collision physical damage coverage. | ||
(b) Nothing in this Act invalidates or limits an exclusion | ||
contained in a motor vehicle liability insurance policy, | ||
including any insurance policy in use or approved for use that |
excludes coverage for motor vehicles made available for rent, | ||
sharing, or hire, or for any business use. | ||
(c) Nothing in this Act invalidates, limits, or restricts | ||
an insurer's ability
under existing law to underwrite any | ||
insurance policy. Nothing in this Act
invalidates, limits, or | ||
restricts an insurer's ability under existing law to cancel
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and non-renew policies.
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Section 25. Recordkeeping; use of vehicle in car sharing. | ||
A car-sharing program shall collect and verify records | ||
pertaining to the use of a vehicle, including, but not limited | ||
to, times used, car-sharing period pick up and drop off | ||
locations, fees paid by the shared-vehicle driver, and | ||
revenues received by the shared-vehicle owner, and the | ||
car-sharing program shall provide that information upon | ||
request to the shared-vehicle owner, the shared-vehicle | ||
owner's insurer, or the shared-vehicle driver's insurer to | ||
facilitate a claim coverage investigation, settlement, | ||
negotiation, or litigation. The car-sharing program shall | ||
retain the records for a period not less than the applicable | ||
personal injury statute of limitations. | ||
Section 30. Exemption; vicarious liability. A car-sharing | ||
program and a shared-vehicle owner shall be exempt from | ||
vicarious liability consistent with 49 U.S.C. 30106 and under | ||
any State or local law that imposes liability solely based on |
vehicle ownership. | ||
Section 35. Recovery against indemnification. A motor | ||
vehicle insurer that defends or indemnifies a claim against a | ||
shared vehicle that is excluded under the terms of its policy | ||
shall have the right to seek recovery against the motor | ||
vehicle insurer of the car-sharing program if the claim is: | ||
(1) made against the shared-vehicle owner or the | ||
shared-vehicle driver for loss or injury that occurs | ||
during the car-sharing period; and | ||
(2) excluded under the terms of its policy. | ||
Section 40. Insurable interest.
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(a) Notwithstanding any other law, statute, rule, or | ||
regulation to the contrary, a car-sharing program shall have | ||
an insurable interest in a shared vehicle during the | ||
car-sharing period and may provide or offer to provide | ||
coverage to a shared-vehicle owner or a shared-vehicle driver | ||
under the policy of insurance described in subsection (c). | ||
(b) Nothing in this Section shall be construed as | ||
modifying the obligations of the car-sharing program pursuant | ||
to Section 10. | ||
(c) A car-sharing program may own and maintain, as the | ||
named insured, one or more policies of motor vehicle liability | ||
insurance that separately or in combination provides coverage | ||
for: |
(1) liabilities assumed by the car-sharing program | ||
under a car-sharing agreement; | ||
(2) any liability of the shared-vehicle owner; | ||
(3) damage or loss to the shared vehicle; or | ||
(4) any liability of the shared-vehicle driver. | ||
Section 45. Consumer protection disclosures. Each | ||
car-sharing agreement made in this State shall disclose to the | ||
shared-vehicle owner and the shared-vehicle driver: | ||
(1) Any right of the car-sharing program to seek | ||
indemnification from the shared-vehicle owner or the | ||
shared-vehicle driver for economic loss sustained by the | ||
car-sharing program resulting from a breach of the terms | ||
and conditions of the car-sharing agreement. | ||
(2) That a motor vehicle liability insurance policy | ||
issued to the shared-vehicle owner for the shared vehicle | ||
or to the shared-vehicle driver does not provide a defense | ||
or indemnification for any claim asserted by the | ||
car-sharing program. | ||
(3) That the car-sharing program's insurance coverage | ||
on the shared-vehicle owner and the shared-vehicle driver | ||
is in effect only during each car-sharing period and that, | ||
for any use of the shared vehicle by the shared-vehicle | ||
driver after the car-sharing termination time, the | ||
shared-vehicle driver and the shared-vehicle owner may not | ||
have insurance coverage. |
(4) The daily rate, fees, and, if applicable, any | ||
insurance or protection package costs that are charged to | ||
the shared-vehicle owner or the shared-vehicle driver. | ||
(5) That the shared-vehicle owner's motor vehicle | ||
liability insurance may not provide coverage for a shared | ||
vehicle. | ||
(6) An emergency telephone number for personnel | ||
capable of fielding roadside assistance and other customer | ||
service inquiries. | ||
(7) If there are conditions under which a | ||
shared-vehicle driver shall maintain a personal automobile | ||
insurance policy with certain applicable coverage limits | ||
on a primary basis in order to book a shared vehicle. | ||
Section 50. Driver's license verification and data | ||
retention.
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(a) A car-sharing program may not enter into a car-sharing | ||
agreement with a driver unless the driver who will operate the | ||
shared vehicle: | ||
(1) holds a driver's license issued under the laws of | ||
this State that authorizes the driver to
operate vehicles | ||
of the class of the shared vehicle; or | ||
(2) is a nonresident who: | ||
(i) has a driver's license issued by the state or | ||
country of the driver's residence that authorizes the | ||
driver in that state or country to drive vehicles of |
the class of the shared vehicle; and | ||
(ii) is at least the same age as that required of a | ||
resident to drive; or | ||
(3) otherwise is specifically authorized under the | ||
laws of this State to drive vehicles of the class of the | ||
shared vehicle. | ||
(b) A car-sharing program shall keep a record of: | ||
(1) the name and address of the shared-vehicle driver; | ||
(2) the number of the driver's license of the | ||
shared-vehicle driver and each other person, if any, who | ||
will operate the shared vehicle; and | ||
(3) the place of issuance of the driver's license. | ||
Section 55. Responsibility for equipment. A car-sharing | ||
program shall have sole responsibility for any equipment, such | ||
as a GPS system or other special equipment, that is put in or | ||
on the vehicle to monitor or facilitate the car-sharing | ||
transaction, and shall agree to indemnify and hold harmless | ||
the vehicle owner for any damage to or theft of such equipment | ||
during the car-sharing period not caused by the vehicle owner. | ||
The car-sharing program has the right to seek recovery from | ||
the shared-vehicle driver for any loss or damage to such | ||
equipment that occurs during the car-sharing period. | ||
Section 60. Automobile safety recalls.
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(a) At the time a vehicle owner registers as a |
shared-vehicle owner on a car-sharing program and before the | ||
time the shared-vehicle owner makes a shared vehicle available | ||
for car sharing on the car-sharing program, the car-sharing | ||
program shall: | ||
(1) verify that the shared vehicle does not have any | ||
safety recalls on the vehicle for which the repairs have | ||
not been made; and | ||
(2) notify the shared-vehicle owner of the | ||
requirements under subsection (b). | ||
(b) (1) If the shared-vehicle owner has received an actual | ||
notice of a safety recall on the vehicle, a shared-vehicle | ||
owner may not make a vehicle available as a shared vehicle on a | ||
car-sharing program until the safety recall repair has been | ||
made. | ||
(2) If a shared-vehicle owner receives an actual notice of | ||
a safety recall on a shared vehicle while the shared vehicle is | ||
made available on the car-sharing program, the shared-vehicle | ||
owner shall remove the shared vehicle from availability on the | ||
car-sharing program, as soon as practicably possible after | ||
receiving the notice of the safety recall and until the safety | ||
recall repair has been made. | ||
(3) If a shared-vehicle owner receives an actual notice of | ||
a safety recall while the shared vehicle is being used in the | ||
possession of a shared-vehicle driver, as soon as practicably | ||
possible after receiving the notice of the safety recall, the | ||
shared-vehicle owner shall notify the car-sharing program |
about the safety recall so that the shared-vehicle owner may | ||
address the safety recall repair.
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Section 99. Effective date. This Act takes effect January | ||
1, 2022.
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