Full Text of SB2412 102nd General Assembly
SB2412 102ND GENERAL ASSEMBLY |
| | 102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022 SB2412 Introduced 2/26/2021, by Sen. Napoleon Harris, III SYNOPSIS AS INTRODUCED: |
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Creates the Car-Sharing Program Act. Provides that nothing in the Act shall be construed to extend beyond insurance or have any implications for other State law unless specifically provided. Adds provisions governing: insurance coverage requirements during car-sharing periods; notification of implications of lien; exclusions in motor vehicle liability insurance policies; recordkeeping requirements; vicarious liability; contribution against indemnification; insurable interests; consumer protection disclosures; driver's license verification; data retention; responsibility for equipment; and automobile safety recalls. Effective January 1, 2023.
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| | A BILL FOR |
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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. Scope. This Act is intended to govern the | 7 | | intersection of car-sharing services and the State-regulated | 8 | | business of insurance, and shall not be construed to extend | 9 | | beyond insurance or have any implications for other State law | 10 | | unless specifically provided. | 11 | | Section 10. Definitions. As used in this Act: | 12 | | "Car sharing" means the authorized use of a vehicle by an | 13 | | individual other than the vehicle's owner through a | 14 | | car-sharing program. "Car sharing" does not include a rental | 15 | | car or rental activity. | 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 car agreement. | 21 | | "Car-sharing period" means the period that commences with | 22 | | the delivery period, or, if there is no delivery period, that |
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| 1 | | commences with the car-sharing start time and in either case | 2 | | ends at the car-sharing termination time. | 3 | | "Car-sharing program" means a business platform that | 4 | | connects vehicle owners with drivers to enable the sharing of | 5 | | vehicles for financial consideration. "Car-sharing program" | 6 | | does not include: (1) a rental car company; or (2) a service | 7 | | provider that is solely providing hardware or software as a | 8 | | service to a person or entity that is not effectuating payment | 9 | | of financial consideration for use of a shared vehicle. | 10 | | "Car-sharing start time" means the time when the shared | 11 | | vehicle becomes subject to the control of the shared-vehicle | 12 | | driver at or after the time the reservation of a shared vehicle | 13 | | is scheduled to begin as documented in the records of a | 14 | | car-sharing program. | 15 | | "Car-sharing termination time" means the earliest of the | 16 | | following events: | 17 | | (1) the expiration of the agreed-upon period | 18 | | established for the use of a shared vehicle according to | 19 | | the terms of the car-sharing agreement if the shared | 20 | | vehicle is delivered to the location agreed upon in the | 21 | | car-sharing agreement; | 22 | | (2) the time the shared vehicle is returned to a | 23 | | location as alternatively agreed upon by the | 24 | | shared-vehicle owner and shared-vehicle driver as | 25 | | communicated through a car-sharing program; or | 26 | | (3) the time the shared-vehicle owner or the |
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| 1 | | shared-vehicle owner's authorized designee takes | 2 | | possession and control of the shared vehicle.
| 3 | | "Delivery period" means the period during which a shared | 4 | | vehicle is being delivered to the location of the car-sharing | 5 | | start time, if applicable, as documented by the governing | 6 | | car-sharing agreement. | 7 | | "Shared vehicle" means a vehicle that is available for | 8 | | sharing through a car-sharing program. "Shared vehicle" does | 9 | | not include a rental car or rental vehicle. | 10 | | "Shared-vehicle driver" means an individual who has been | 11 | | authorized to drive the shared vehicle by the shared-vehicle | 12 | | owner under a car-sharing agreement. | 13 | | "Shared-vehicle owner" means the registered owner, or a | 14 | | person or entity designated by the registered owner, of a | 15 | | vehicle made available for sharing to shared-vehicle drivers | 16 | | through a car-sharing program. | 17 | | Section 15. Insurance coverage during car-sharing period.
| 18 | | (a) Except as provided in subsection (b), a car-sharing | 19 | | program shall assume liability of a shared-vehicle owner for | 20 | | bodily injury or property damage to third parties or uninsured | 21 | | and underinsured motorist or personal injury protection losses | 22 | | during the car-sharing period in an amount stated in the | 23 | | car-sharing agreement, which amount may not be less than that | 24 | | set forth in Section 7-601 of the Illinois Vehicle Code. | 25 | | (b) Notwithstanding the definition of "car-sharing |
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| 1 | | termination time" set forth in Section 10, the assumption of | 2 | | liability under subsection (a) does not apply to any | 3 | | shared-vehicle owner if: | 4 | | (1) the shared-vehicle owner makes an intentional or | 5 | | fraudulent material misrepresentation or omission to the | 6 | | car-sharing program before the car-sharing period in which | 7 | | the loss occurred; or | 8 | | (2) the shared-vehicle owner is acting in concert with | 9 | | a shared-vehicle driver who fails to return the shared | 10 | | vehicle pursuant to the terms of car-sharing agreement. | 11 | | (c) Notwithstanding the definition of "car-sharing | 12 | | termination time" set forth in Section 10, the assumption of | 13 | | liability under subsection (a) applies to bodily injury, | 14 | | property damage, and uninsured and underinsured motorist or | 15 | | personal injury protection losses by damaged third parties | 16 | | required by Section 7-601 of the Illinois Vehicle Code. | 17 | | (d) A car-sharing program shall ensure that, during each | 18 | | car-sharing period, the shared-vehicle owner and the | 19 | | shared-vehicle driver are insured under a motor vehicle | 20 | | liability insurance policy that provides insurance coverage in | 21 | | amounts no less than the minimum amounts set forth in Section | 22 | | 7-601 of the 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. | 12 | | (g) The car-sharing program shall assume primary liability | 13 | | for a claim if it is in whole or in part providing the | 14 | | insurance required under subsections (d) and (e) and: | 15 | | (1) a dispute exists as to who was in control of the | 16 | | shared vehicle at the time of the loss; and
| 17 | | (2) the car-sharing program does not have available, | 18 | | did not retain, or fails to provide the information | 19 | | required by Section 30. | 20 | | The shared vehicle's insurer shall indemnify the | 21 | | car-sharing program to the extent of its obligation under, if | 22 | | any, the applicable insurance policy, if it is determined that | 23 | | the shared vehicle's owner was in control of the shared | 24 | | vehicle at the time of the loss. | 25 | | (h) If insurance maintained by a shared-vehicle owner or | 26 | | shared-vehicle driver in accordance with subsection (e) has |
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| 1 | | lapsed or does not provide the required coverage, insurance | 2 | | maintained by a car-sharing program shall provide the coverage | 3 | | required by subsection (d) beginning with the first dollar of | 4 | | a claim and shall have the duty to defend the claim except | 5 | | under circumstances as set forth in subsection (b). | 6 | | (i) An insurance policy maintained by the car-sharing | 7 | | program shall not make the coverage dependent on another | 8 | | automobile insurer or policy first denying a claim. | 9 | | (j) Nothing in this Section: | 10 | | (1) limits the liability of the car-sharing program | 11 | | for any act or omission of the car-sharing program itself | 12 | | that results in injury to any person as a result of the use | 13 | | of a shared vehicle through a car-sharing program; or | 14 | | (2) limits the ability of the car-sharing program to, | 15 | | by contract, seek indemnification from the shared-vehicle | 16 | | owner or the shared-vehicle driver for economic loss | 17 | | sustained by the car-sharing program resulting from a | 18 | | breach of the terms and conditions of the car-sharing | 19 | | agreement. | 20 | | Section 20. Notification of implications of lien. At the | 21 | | time a vehicle owner registers as a shared-vehicle owner on a | 22 | | car-sharing program and before the time when the | 23 | | shared-vehicle owner makes a shared vehicle available for car | 24 | | sharing on the car-sharing program, the car-sharing program | 25 | | shall notify the shared-vehicle owner that, if the shared |
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| 1 | | vehicle has a lien against it, the use of the shared vehicle | 2 | | through a car-sharing program, including use without physical | 3 | | damage coverage, may violate the terms of the contract with | 4 | | the lienholder. | 5 | | Section 25. Exclusions in motor vehicle liability | 6 | | insurance policies.
| 7 | | (a) An authorized insurer that writes motor vehicle | 8 | | liability insurance in this State may exclude any coverage and | 9 | | the duty to defend or indemnify for any claim afforded under a | 10 | | shared-vehicle owner's motor vehicle liability insurance | 11 | | policy, including, but not limited to: | 12 | | (1) liability coverage for bodily injury and property | 13 | | damage; | 14 | | (2) uninsured and underinsured motorist coverage; | 15 | | (3) medical payments coverage; | 16 | | (4) comprehensive physical damage coverage; and | 17 | | (5) collision physical damage coverage. | 18 | | (b) Nothing in this Act invalidates or limits an exclusion | 19 | | contained in a motor vehicle liability insurance policy, | 20 | | including any insurance policy in use or approved for use that | 21 | | excludes coverage for motor vehicles made available for rent, | 22 | | sharing, or hire, or for any business use. | 23 | | Section 30. Recordkeeping; use of vehicle in car sharing. | 24 | | A car-sharing program shall collect and verify records |
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| 1 | | pertaining to the use of a vehicle, including, but not limited | 2 | | to, times used, fees paid by the shared-vehicle driver, and | 3 | | revenues received by the shared-vehicle owner, and the | 4 | | car-sharing program shall provide that information upon | 5 | | request to the shared-vehicle owner, the shared-vehicle | 6 | | owner's insurer, or the shared-vehicle driver's insurer to | 7 | | facilitate a claim coverage investigation. The car-sharing | 8 | | program shall retain the records for a period not less than the | 9 | | applicable personal injury statute of limitations. | 10 | | Section 35. Exemption; vicarious liability. A car-sharing | 11 | | program and a shared-vehicle owner shall be exempt from | 12 | | vicarious liability in accordance with 49 U.S.C. 30106 and | 13 | | under any State or local law that imposes liability solely | 14 | | based on vehicle ownership. | 15 | | Section 40. Contribution against indemnification. A motor | 16 | | vehicle insurer that defends or indemnifies a claim against a | 17 | | shared vehicle that is excluded under the terms of its policy | 18 | | shall have the right to seek contribution against the motor | 19 | | vehicle insurer of the car-sharing program if the claim is: | 20 | | (1) made against the shared-vehicle owner or the | 21 | | shared-vehicle driver for loss or injury that occurs | 22 | | during the car-sharing period; and | 23 | | (2) excluded under the terms of its policy. |
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| 1 | | Section 45. Insurable interest.
| 2 | | (a) Notwithstanding any other law, statute, rule, or | 3 | | regulation to the contrary, a car-sharing program shall have | 4 | | an insurable interest in a shared vehicle during the | 5 | | car-sharing period. | 6 | | (b) Nothing in this Section requires a car-sharing program | 7 | | to maintain the coverage mandated by Section 15. | 8 | | (c) A car-sharing program may own and maintain, as the | 9 | | named insured, one or more policies of motor vehicle liability | 10 | | insurance that provides coverage for: | 11 | | (1) liabilities assumed by the car-sharing program | 12 | | under a car-sharing agreement; | 13 | | (2) any liability of the shared-vehicle owner; | 14 | | (3) damage or loss to the shared vehicle; or | 15 | | (4) any liability of the shared-vehicle driver. | 16 | | Section 50. Consumer protection disclosures. Each | 17 | | car-sharing agreement made in this State shall disclose to the | 18 | | shared-vehicle owner and the shared-vehicle driver: | 19 | | (1) Any right of the car-sharing program to seek | 20 | | indemnification from the shared-vehicle owner or the | 21 | | shared-vehicle driver for economic loss sustained by the | 22 | | car-sharing program resulting from a breach of the terms | 23 | | and conditions of the car-sharing agreement. | 24 | | (2) That a motor vehicle liability insurance policy | 25 | | issued to the shared-vehicle owner for the shared vehicle |
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| 1 | | or to the shared-vehicle driver does not provide a defense | 2 | | or indemnification for any claim asserted by the | 3 | | car-sharing program. | 4 | | (3) That the car-sharing program's insurance coverage | 5 | | on the shared-vehicle owner and the shared-vehicle driver | 6 | | is in effect only during each car-sharing period and that, | 7 | | for any use of the shared vehicle by the shared-vehicle | 8 | | driver after the car-sharing termination time, the | 9 | | shared-vehicle driver and the shared-vehicle owner may not | 10 | | have insurance coverage. | 11 | | (4) The daily rate, fees, and, if applicable, any | 12 | | insurance or protection package costs that are charged to | 13 | | the shared-vehicle owner or the shared-vehicle driver. | 14 | | (5) That the shared-vehicle owner's motor vehicle | 15 | | liability insurance may not provide coverage for a shared | 16 | | vehicle. | 17 | | (6) An emergency telephone number for personnel | 18 | | capable of fielding roadside assistance and other customer | 19 | | service inquiries. | 20 | | (7) If there are conditions under which a | 21 | | shared-vehicle driver shall maintain a personal automobile | 22 | | insurance policy with certain applicable coverage limits | 23 | | on a primary basis in order to book a shared vehicle. | 24 | | Section 55. Driver's license verification and data | 25 | | retention.
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| 1 | | (a) A car-sharing program may not enter into a car-sharing | 2 | | agreement with a driver unless the driver who will operate the | 3 | | shared vehicle: | 4 | | (1) holds a driver's license issued under the laws of | 5 | | this State that authorizes the driver to
operate vehicles | 6 | | of the class of the shared vehicle; or | 7 | | (2) is a nonresident who: | 8 | | (i) has a driver's license issued by the state or | 9 | | country of the driver's residence that authorizes the | 10 | | driver in that state or country to drive vehicles of | 11 | | the class of the shared vehicle; and | 12 | | (ii) is at least the same age as that required of a | 13 | | resident to drive; or | 14 | | (3) otherwise is specifically authorized under the | 15 | | laws of this State to drive vehicles of the class of the | 16 | | shared vehicle. | 17 | | (b) A car-sharing program shall keep a record of: | 18 | | (1) the name and address of the shared-vehicle driver; | 19 | | (2) the number of the driver's license of the | 20 | | shared-vehicle driver and each other person, if any, who | 21 | | will operate the shared vehicle; and | 22 | | (3) the place of issuance of the driver's license. | 23 | | Section 60. Responsibility for equipment. A car-sharing | 24 | | program shall have sole responsibility for any equipment, such | 25 | | as a GPS system or other special equipment, that is put in or |
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| 1 | | on the vehicle to monitor or facilitate the car-sharing | 2 | | transaction, and shall agree to indemnify and hold harmless | 3 | | the vehicle owner for any damage to or theft of such equipment | 4 | | during the car-sharing period not caused by the vehicle owner. | 5 | | The car-sharing program has the right to seek indemnity from | 6 | | the shared-vehicle driver for any loss or damage to such | 7 | | equipment that occurs during the car-sharing period. | 8 | | Section 65. Automobile safety recalls.
| 9 | | (a) At the time a vehicle owner registers as a | 10 | | shared-vehicle owner on a car-sharing program and before the | 11 | | time the shared-vehicle owner makes a shared vehicle available | 12 | | for car sharing on the car-sharing program, the car-sharing | 13 | | program shall: | 14 | | (1) verify that the shared vehicle does not have any | 15 | | safety recalls on the vehicle for which the repairs have | 16 | | not been made; and | 17 | | (2) notify the shared-vehicle owner of the | 18 | | requirements under subsection (b). | 19 | | (b) (1) If the shared-vehicle owner has received an actual | 20 | | notice of a safety recall on the vehicle, a shared-vehicle | 21 | | owner may not make a vehicle available as a shared vehicle on a | 22 | | car-sharing program until the safety recall repair has been | 23 | | made. | 24 | | (2) If a shared-vehicle owner receives an actual notice of | 25 | | a safety recall on a shared vehicle while the shared vehicle is |
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| 1 | | made available on the car-sharing program, the shared-vehicle | 2 | | owner shall remove the shared vehicle from availability on the | 3 | | car-sharing program, as soon as practicably possible after | 4 | | receiving the notice of the safety recall and until the safety | 5 | | recall repair has been made. | 6 | | (3) If a shared-vehicle owner receives an actual notice of | 7 | | a safety recall while the shared vehicle is being used in the | 8 | | possession of a shared-vehicle driver, as soon as practicably | 9 | | possible after receiving the notice of the safety recall, the | 10 | | shared-vehicle owner shall notify the car-sharing program | 11 | | about the safety recall so that the shared-vehicle owner may | 12 | | address the safety recall repair.
| 13 | | Section 99. Effective date. This Act takes effect January | 14 | | 1, 2023.
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