SB2641ham002 100TH GENERAL ASSEMBLY

Rep. Arthur Turner

Filed: 5/22/2018

10000SB2641ham002 LRB100 15797 LNS 40502 a

AMENDMENT TO SENATE BILL 2641

AMENDMENT NO. ______. Amend Senate Bill 2641, AS AMENDED, by replacing everything after the enacting clause with the following:

"Section 5. The Automobile Renting Occupation and Use Tax Act is amended by changing Section 2 as follows:

(35 ILCS 155/2) (from Ch. 120, par. 1702)

Sec. 2. Definitions. "Renting" means any transfer of the possession or right to possession of an automobile to a user for a valuable consideration for a period of one year or less, including the facilitation of a privately-owned passenger motor vehicle for use by persons other than the vehicle's registered owner as an part of a personal car facilitation transaction, as defined in Section 1-159.1b of the Illinois Vehicle Code.

"Renting" does not include making a charge for the use of an automobile where the rentor, either himself or through an agent, furnishes a service of operating an automobile so that the rentor remains in possession of the automobile, because this does not constitute a transfer of possession or right to possession of the automobile.

"Renting" does not include the making of a charge by an automobile dealer for the use of an automobile as a demonstrator in connection with the dealer's business of selling, where the charge is merely made to recover the costs of operating the automobile as a demonstrator and is not intended as a rental or leasing charge in the ordinary sense.

"Automobile" means (1) any motor vehicle of the first division, or (2) a motor vehicle of the second division which: (A) is a self-contained motor vehicle designed or permanently converted to provide living quarters for recreational, camping or travel use, with direct walk through access to the living quarters from the driver's seat; (B) is of the van configuration designed for the transportation of not less than 7 nor more than 16 passengers, as defined in Section 1-146 of the Illinois Vehicle Code; or (C) has a Gross Vehicle Weight Rating, as defined in Section 1-124.5 of the Illinois Vehicle Code, of 8,000 pounds or less.

"Department" means the Department of Revenue.

"Person" means any natural individual, firm, partnership, association, joint stock company, joint adventure, public or private corporation, limited liability company, or a receiver, executor, trustee, conservator or other representative appointed by order of any court.

"Rentor" means any person, firm, corporation or association engaged in the business of renting or leasing automobiles to users. For this purpose, the objective of making a profit is not necessary to make the renting activity a business.

"Rentee" means any user to whom the possession, or the right to possession, of an automobile is transferred for a valuable consideration for a period of one year or less, whether paid for by the "rentee" or by someone else.

"Gross receipts" from the renting of tangible personal property or "rent" means the total rental price or leasing price. In the case of rental transactions in which the consideration is paid to the rentor on an installment basis, the amounts of such payments shall be included by the rentor in gross receipts or rent only as and when payments are received by the rentor.

"Gross receipts" does not include receipts received by an automobile dealer from a manufacturer or service contract provider for the use of an automobile by a person while that person's automobile is being repaired by that automobile dealer and the repair is made pursuant to a manufacturer's warranty or a service contract where a manufacturer or service contract provider reimburses that automobile dealer pursuant to a manufacturer's warranty or a service contract and the reimbursement is merely made to recover the costs of operating the automobile as a loaner vehicle.

"Rental price" means the consideration for renting or leasing an automobile valued in money, whether received in money or otherwise, including cash credits, property and services, and shall be determined without any deduction on account of the cost of the property rented, the cost of materials used, labor or service cost, or any other expense whatsoever, but does not include charges that are added by a rentor on account of the rentor's tax liability under this Act or on account of the rentor's duty to collect, from the rentee, the tax that is imposed by Section 4 of this Act. The phrase "rental price" does not include compensation paid to a rentor by a rentee in consideration of the waiver by the rentor of any right of action or claim against the rentee for loss or damage to the automobile rented and also does not include a separately stated charge for insurance or recovery of refueling costs or other separately stated charges that are not for the use of tangible personal property.

(Source: P.A. 98-574, eff. 1-1-14.)

Section 10. The Counties Code is amended by changing Section 5-1032 as follows:

(55 ILCS 5/5-1032) (from Ch. 34, par. 5-1032)

Sec. 5-1032. County Automobile Renting Occupation Tax. The corporate authorities of a county may impose a tax upon all persons engaged in the business of renting automobiles in the county, but outside any municipality, at the rate of not to exceed 1% of the gross receipts from such business. For the purposes of imposing a tax under this Section, the facilitation of a privately-owned passenger motor vehicle for use by a person other than the vehicle's registered owner as a part of a personal car facilitation transaction, as defined in Section 1-159.1b of the Illinois Vehicle Code, constitutes engaging in the business of renting automobiles in the county. The tax imposed by a county pursuant to this Section and all civil penalties that may be assessed as an Incident thereof shall be collected and enforced by the State Department of Revenue. The certificate of registration which is issued by the Department to a retailer under the "Retailers' Occupation Tax Act", approved June 23, 1933, as amended, or under the "Automobile Renting Occupation and Use Tax Act", enacted by the Eighty-Second General Assembly, shall permit such person to engage in a business which is taxable under any ordinance or resolution enacted pursuant to this Section without registering separately with the Department under such ordinance or resolution or under this Section. The Department shall have full power to administer and enforce this Section; to collect all taxes and penalties due hereunder; to dispose of taxes and penalties so collected in the manner hereinafter provided, and to determine all rights to credit memoranda, arising on account of the erroneous payment of tax or penalty hereunder. In the administration of, and compliance with, this Section, the Department and persons who are subject to this Section shall have the same rights, remedies, privileges, immunities, powers and duties, and be subject to the same conditions, restrictions, limitations, penalties and definitions of terms, and employ the same modes of procedure, as are prescribed in Sections 2 and 3 (in respect to all provisions therein other than the State rate of tax; and with relation to the provisions of the "Retailers' Occupation Tax" referred to therein, except as to the disposition of taxes and penalties collected, and except for the provision allowing retailers a deduction from the tax to cover certain costs, and except that credit memoranda issued hereunder may not be used to discharge any State tax liability) of the "Automobile Renting Occupation and Use Tax Act", as the same are now or may hereafter be amended, as fully as if provisions contained in those Sections of said Act were set forth herein.

Persons subject to any tax imposed pursuant to the authority granted in this Section may reimburse themselves for their tax liability hereunder by separately stating such tax as an additional charge, which charge may be stated in combination, in a single amount, with State tax which sellers are required to collect under the "Automobile Renting Occupation and Use Tax Act" pursuant to such bracket schedules as the Department may prescribe.

Whenever the Department determines that a refund should be made under this Section to a claimant instead of issuing a credit memorandum, the Department shall notify the State Comptroller, who shall cause the order to be drawn for the amount specified, and to the person named, in such notification from the Department. Such refund shall be paid by the State Treasurer out of the county automobile renting tax fund.

The Department shall forthwith pay over to the State Treasurer, ex-officio, as trustee, all taxes and penalties collected hereunder. On or before the 25th day of each calendar month, the Department shall prepare and certify to the Comptroller the disbursement of stated sums of money to named counties from which rentors have paid taxes or penalties hereunder to the Department during the second preceding calendar month. The amount to be paid to each county shall be the amount (not including credit memoranda) collected hereunder during the second preceding calendar month by the Department, and not including an amount equal to the amount of refunds made during the second preceding calendar month by the Department on behalf of such county, less 2% of such balance, which sum shall be retained by the State Treasurer to cover the costs incurred by the Department in administering and enforcing this Section as provided herein. The Department at the time of each monthly disbursement to the counties shall prepare and certify to the Comptroller the amount, so retained by the State Treasurer, to be paid into the General Revenue Fund of the State Treasury. Within 10 days after receipt, by the Comptroller, of the disbursement certification to the counties and the General Revenue Fund, provided for in this Section to be given to the Comptroller by the Department, the Comptroller shall cause the orders to be drawn for the respective amounts in accordance with the directions contained in such certification.

Nothing in this Section shall be construed to authorize a county to impose a tax upon the privilege of engaging in any business which under the constitution of the United States may not be made the subject of taxation by this State.

An ordinance or resolution imposing a tax hereunder or effecting a change in the rate thereof shall be effective on the first day of the calendar month next following the month in which such ordinance or resolution is passed. The corporate authorities of any county which levies a tax authorized by this Section shall transmit to the Department of Revenue on or not later than 5 days after passage of the ordinance or resolution a certified copy of the ordinance or resolution imposing such tax whereupon the Department of Revenue shall proceed to administer and enforce this Section on behalf of such county as of the effective date of the ordinance or resolution. Upon a change in rate of a tax levied hereunder, or upon the discontinuance of the tax, the corporate authorities of the county shall on or not later than 5 days after passage of the ordinance or resolution discontinuing the tax or effecting a change in rate transmit to the Department of Revenue a certified copy of the ordinance or resolution effecting such change or discontinuance.

The Department of Revenue must upon the request of the County Clerk or County Board submit to a county a list of those persons who are registered with the Department to pay automobile renting occupation tax within the unincorporated area of that governmental unit. This list shall contain only the names of persons who have paid the tax and not the amount of tax paid by such person.

This Section shall be known and may be cited as the "County Automobile Renting Occupation Tax Law".

(Source: P.A. 86-962.)

Section 15. The Illinois Municipal Code is amended by changing Section 8-11-7 as follows:

(65 ILCS 5/8-11-7) (from Ch. 24, par. 8-11-7)

Sec. 8-11-7. The corporate authorities of a municipality may impose a tax upon all persons engaged in the business of renting automobiles in the municipality at the rate of not to exceed 1% of the gross receipts from such business. For the purposes of imposing a tax under this Section, the facilitation of a privately-owned passenger motor vehicle for use by a person other than the vehicle's registered owner as a part of a personal car facilitation transaction, as defined in Section 1-159.1b of the Illinois Vehicle Code, constitutes engaging in the business of renting automobiles in the municipality. The tax imposed by a municipality pursuant to this Section and all civil penalties that may be assessed as an incident thereof shall be collected and enforced by the State Department of Revenue. The certificate of registration which is issued by the Department to a retailer under the Retailers' Occupation Tax Act or under the Automobile Renting Occupation and Use Tax Act shall permit such person to engage in a business which is taxable under any ordinance or resolution enacted pursuant to this Section without registering separately with the Department under such ordinance or resolution or under this Section. The Department shall have full power to administer and enforce this Section; to collect all taxes and penalties due hereunder; to dispose of taxes and penalties so collected in the manner hereinafter provided; and to determine all rights to credit memoranda, arising on account of the erroneous payment of tax or penalty hereunder. In the administration of, and compliance with, this Section, the Department and persons who are subject to this Section shall have the same rights, remedies, privileges, immunities, powers and duties, and be subject to the same conditions, restrictions, limitations, penalties and definitions of terms, and employ the same modes of procedure, as are prescribed in Sections 2 and 3 (in respect to all provisions therein other than the State rate of tax; and with relation to the provisions of the "Retailers' Occupation Tax" referred to therein, except as to the disposition of taxes and penalties collected, and except for the provision allowing retailers a deduction from the tax to cover certain costs, and except that credit memoranda issued hereunder may not be used to discharge any State tax liability) of the Automobile Renting Occupation and Use Tax Act, as fully as if those provisions were set forth herein.

Persons subject to any tax imposed pursuant to the authority granted in this Section may reimburse themselves for their tax liability hereunder by separately stating such tax as an additional charge, which charge may be stated in combination, in a single amount, with State tax which sellers are required to collect under the Automobile Renting Occupation and Use Tax Act pursuant to such bracket schedules as the Department may prescribe.

Whenever the Department determines that a refund should be made under this Section to a claimant instead of issuing a credit memorandum, the Department shall notify the State Comptroller, who shall cause the order to be drawn for the amount specified, and to the person named, in such notification from the Department. Such refund shall be paid by the State Treasurer out of the municipal automobile renting tax fund.

The Department shall forthwith pay over to the State Treasurer, ex-officio, as trustee, all taxes and penalties collected hereunder. On or before the 25th day of each calendar month, the Department shall prepare and certify to the Comptroller the disbursement of stated sums of money to named municipalities, the municipalities to be those from which rentors have paid taxes or penalties hereunder to the Department during the second preceding calendar month. The amount to be paid to each municipality shall be the amount (not including credit memoranda) collected hereunder during the second preceding calendar month by the Department, and not including an amount equal to the amount of refunds made during the second preceding calendar month by the Department on behalf of such municipality, less 1.6% of such balance, which sum shall be retained by the State Treasurer to cover the costs incurred by the Department in administering and enforcing this Section as provided herein. The Department at the time of each monthly disbursement to the municipalities shall prepare and certify to the Comptroller the amount, so retained by the State Treasurer, to be paid into the General Revenue Fund of the State Treasury. Within 10 days after receipt, by the Comptroller, of the disbursement certification to the municipalities and the General Revenue Fund, provided for in this Section to be given to the Comptroller by the Department, the Comptroller shall cause the orders to be drawn for the respective amounts in accordance with the directions contained in such certification.

Nothing in this Section shall be construed to authorize a municipality to impose a tax upon the privilege of engaging in any business which under the Constitution of the United States may not be made the subject of taxation by this State.

An ordinance or resolution imposing a tax hereunder or effecting a change in the rate thereof shall be effective on the first day of the calendar month next following publication as provided in Section 1-2-4. The corporate authorities of any municipality which levies a tax authorized by this Section shall transmit to the Department of Revenue on or not later than 5 days after publication a certified copy of the ordinance or resolution imposing such tax whereupon the Department of Revenue shall proceed to administer and enforce this Section on behalf of such municipality as of the effective date of the ordinance or resolution. Upon a change in rate of a tax levied hereunder, or upon the discontinuance of the tax, the corporate authorities of the municipality shall on or not later than 5 days after publication of the ordinance or resolution discontinuing the tax or effecting a change in rate transmit to the Department of Revenue a certified copy of the ordinance or resolution effecting such change or discontinuance.

The Department of Revenue must upon the request of the municipal clerk, city council or village board of trustees submit to a city, village or incorporated town a list of those persons who are registered with the Department to pay automobile renting occupation tax within that governmental unit. This list shall contain only the names of persons who have paid the tax and not the amount of tax paid by such person.

As used in this Section, "municipal" and "municipality" means a city, village or incorporated town, including an incorporated town which has superseded a civil township.

This Section shall be known and may be cited as the "Municipal Automobile Renting Occupation Tax Act".

(Source: P.A. 86-1475.)

Section 20. The Illinois Vehicle Code is amended by changing Sections 6-305.2, 6-305.3, and 9-101 and by adding Sections 1-146.7, 1-159.1a, 1-159.1b, and 1-171.01e as follows:

(625 ILCS 5/1-146.7 new)

Sec. 1-146.7. Motor vehicle rental company. Any person or entity whose primary business is renting motor vehicles to the public for 30 days or less, including a personal car facilitation company as defined in Section 1-159.1a. "Motor vehicle rental company" includes a rental car company, rental car agency, automobile rental company, vehicle rental company, rental owner, or any other similar entity that engages in the rental of motor vehicles to the public.

(625 ILCS 5/1-159.1a new)

Sec. 1-159.1a. Personal car facilitation company. A legal entity qualified to do business in this State engaged in the business of facilitating the use, rental, or sharing of privately-owned passenger motor vehicles for noncommercial use by individuals within this State. "Personal car facilitation company" does not include the registered owner of the vehicle involved in a personal car facilitation transaction facilitated by a personal car facilitation company.

(625 ILCS 5/1-159.1b new)

Sec. 1-159.1b. Personal car facilitation transaction. The use of a privately-owned passenger motor vehicle by a person other than the vehicle's registered owner as facilitated by a personal car facilitation company.

(625 ILCS 5/1-171.01e new)

Sec. 1-171.01e. Rental agreement. An agreement for 30 days or less setting forth the terms and conditions governing the use of a motor vehicle provided by a motor vehicle rental company.

(625 ILCS 5/6-305.2)

Sec. 6-305.2. Limited liability for damage.

(a) Damage to private passenger vehicle. A person who rents a motor vehicle to another may hold the renter liable to the extent permitted under subsections (b) through (d) for physical or mechanical damage to the rented motor vehicle that occurs during the time the motor vehicle is under the rental agreement.

(b) Limits on liability: vehicle MSRP $50,000 or less. The total liability of a renter under subsection (a) for damage to a motor vehicle with a Manufacturer's Suggested Retail Price (MSRP) of $50,000 or less may not exceed all of the following:

(1) The lesser of:

(A) Actual and reasonable costs that the person who rents a motor vehicle to another incurred to repair the motor vehicle or that the rental company would have incurred if the motor vehicle had been repaired, which shall reflect any discounts, price reductions, or adjustments available to the rental company; or

(B) The fair market value of that motor vehicle immediately before the damage occurred, as determined in the customary market for the retail sale of that motor vehicle; and

(2) Actual and reasonable costs incurred by the loss due to theft of the rental motor vehicle up to $2,000; provided, however, that if it is established that the renter or an authorized driver failed to exercise ordinary care while in possession of the vehicle or that the renter or an authorized driver committed or aided and abetted the commission of the theft, then the damages shall be the actual and reasonable costs of the rental vehicle up to its fair market value, as determined by the customary market for the sale of that vehicle.

For purposes of this subsection (b), for the period prior to June 1, 1998, the maximum amount that may be recovered from an authorized driver shall not exceed $6,000; for the period beginning June 1, 1998 through May 31, 1999, the maximum recovery shall not exceed $7,500; and for the period beginning June 1, 1999 through May 31, 2000, the maximum recovery shall not exceed $9,000. Beginning June 1, 2000, and annually each June 1 thereafter, the maximum amount that may be recovered from an authorized driver shall be increased by $500 above the maximum recovery allowed immediately prior to June 1 of that year.

(b-5) Limits on liability: vehicle MSRP more than $50,000. The total liability of a renter under subsection (a) for damage to a motor vehicle with a Manufacturer's Suggested Retail Price (MSRP) of more than $50,000 may not exceed all of the following:

(1) the lesser of:

(A) actual and reasonable costs that the person who rents a motor vehicle to another incurred to repair the motor vehicle or that the rental company would have incurred if the motor vehicle had been repaired, which shall reflect any discounts, price reductions, or adjustments available to the rental company; or

(B) the fair market value of that motor vehicle immediately before the damage occurred, as determined in the customary market for the retail sale of that motor vehicle; and

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

The maximum recovery for a motor vehicle with a Manufacturer's Suggested Retail Price (MSRP) of more than $50,000 under this subsection (b-5) shall not exceed $40,000 on the effective date of this amendatory Act of the 99th General Assembly. On October 1, 2016, and for the next 3 years thereafter, the maximum amount that may be recovered from an authorized driver under this subsection (b-5) shall be increased by $2,500 above the prior year's maximum recovery. On October 1, 2020, and for each year thereafter, the maximum amount that may be recovered from an authorized driver under this subsection (b-5) shall be increased by $1,000 above the prior year's maximum recovery.

(c) Multiple recoveries prohibited. Any person who rents a motor vehicle to another may not hold the renter liable for any amounts that the rental company recovers from any other party.

(d) Repair estimates. A person who rents a motor vehicle to another may not collect or attempt to collect the amount described in subsection (b) or (b-5) unless the rental company obtains an estimate from a repair company or an appraiser in the business of providing such appraisals on the costs of repairing the motor vehicle, makes a copy of the estimate available upon request to the renter who may be liable under subsection (a), or the insurer of the renter, and submits a copy of the estimate with any claim to collect the amount described in subsection (b) or (b-5). In order to collect the amount described in subsection (b-5), a person renting a motor vehicle to another must also provide the renter's personal insurance company with reasonable notice and an opportunity to inspect damages.

(d-5) In the event of loss due to theft of the rental motor vehicle with a MSRP more than $50,000, the rental company shall provide reasonable notice of the theft to the renter's personal insurance company.

(e) Duty to mitigate. A claim against a renter resulting from damage or loss to a rental vehicle must be reasonably and rationally related to the actual loss incurred. A rental company shall mitigate damages where possible and shall not assert or collect any claim for physical damage which exceeds the actual costs of the repair, including all discounts or price reductions.

(f) No rental company shall require a deposit or an advance charge against the credit card of a renter, in any form, for damages to a vehicle which is in the renter's possession, custody, or control. No rental company shall require any payment for damage to the rental vehicle, upon the renter's return of the vehicle in a damaged condition, until after the cost of the damage to the vehicle and liability therefor is agreed to between the rental company and renter or is determined pursuant to law.

(g) If insurance coverage exists under the renter's personal insurance policy and the coverage is confirmed during regular business hours, the renter may require that the rental company must submit any claims to the renter's personal insurance carrier as the renter's agent. The rental company shall not make any written or oral representations that it will not present claims or negotiate with the renter's insurance carrier. For purposes of this Section, confirmation of coverage includes telephone confirmation from insurance company representatives during regular business hours. After confirmation of coverage, the amount of claim shall be resolved between the insurance carrier and the rental company.

(h) For the purposes of the allocation of liability for damage to a private passenger vehicle as established under this Section, a motor vehicle rental company that is a personal car facilitation company, as defined in Section 1-159.1a, shall, if any damage to a vehicle occurs at any time when the vehicle is not in possession of the vehicle's registered owner and at the personal car facilitation company's designated location while being made available to rent, under the operation and control of a person other than the vehicle's registered owner under a personal car facilitation transaction facilitated by that company, or at the personal car facilitation company's designated area not being made available to rent, but not yet in the possession of the vehicle's registered owner, assume all liability of the registered owner of the vehicle used in the personal car facilitation transaction. Nothing in this subsection (h) prevents a personal car facilitation company from holding a renter in a personal car facilitation transaction liable to the extent permitted under this Section. A personal car facilitation company continues to be liable under this subsection (h) until the end of the personal car facilitation transaction as described in subsection (c) of Section 30 of the Renter's Financial Responsibility and Protection Act or as described in this subsection (h) while the vehicle is at the designated location of the personal car facilitation company. At no time shall the registered owner of the vehicle or the owner's insurer be liable for any exposure, including negligent entrustment, of the vehicle involved in a personal car facilitation transaction as described in subsection (c) of Section 30 of the Renter's Financial Responsibility and Protection Act.

(Source: P.A. 99-201, eff. 10-1-15.)

(625 ILCS 5/6-305.3)

Sec. 6-305.3. Vehicle license cost recovery fee.

(a) As used in this Section:

"Motor vehicle rental company" has the meaning ascribed to it in Section 1-146.7 of this Code means a person or entity whose primary business is renting motor vehicles to the public for 30 days or less.

"Inspect" or "inspection" means a vehicle emissions inspection under Chapter 13C of this Code.

"Rental agreement" has the meaning ascribed to it in Section 1-171.01e of this Code means an agreement for 30 days or less setting forth the terms and conditions governing the use of a motor vehicle provided by a rental company.

"Motor vehicle" means motor vehicles of the first division and motor vehicles of the second division weighing not more than 8,000 pounds.

"Vehicle license cost recovery fee" or "VLCRF" means a charge that may be separately stated and charged on a rental agreement in a vehicle rental transaction originating in Illinois to recover costs incurred either directly or indirectly by a motor vehicle rental company to license, title, register, and inspect motor vehicles.

(b) Motor vehicle rental companies may include a separately stated mandatory surcharge or fee in a rental agreement for vehicle license cost recovery fees (VLCRF) and all applicable taxes.

(c) If a motor vehicle rental company includes a VLCRF as separately stated charge in a rental agreement, the amount of the fee must represent the motor vehicle rental company's good-faith estimate of the automobile rental company's daily charge as calculated by the motor vehicle rental company to recover its actual total annual motor vehicle titling, registration, and inspection costs.

(d) If the total amount of the VLCRF collected by a motor vehicle rental company under this Section in any calendar year exceeds the motor vehicle rental company's actual costs to license, title, register, and inspect for that calendar year, the motor vehicle rental company shall do both of the following:

(1) Retain the excess amount; and

(2) Adjust the estimated average per vehicle titling, licensing, inspection, and registration charge for the following calendar year by a corresponding amount.

(e) Nothing in subsection (d) of this Section shall prevent a motor vehicle rental company from making adjustments to the VLCRF during the calendar year.

(Source: P.A. 96-37, eff. 7-13-09; 97-595, eff. 8-26-11.)

(625 ILCS 5/9-101) (from Ch. 95 1/2, par. 9-101)

Sec. 9-101. Owner of for-rent motor vehicle to give proof of financial responsibility. For purposes of this Chapter, "for rent" means any transfer of the possession of or right to possession of a motor vehicle to a user for a valuable consideration for a period of less than one year, and "to lease" means any transfer of the possession of or right to possession of a motor vehicle to a user for a period of one year or more. It is unlawful for the owner of any motor vehicle to engage in the business, or to hold himself out to the public generally as being engaged in the business of renting out such motor vehicle to be operated by the customer, unless the owner has given, and there is in full force and effect and on file with the Secretary of State proof of financial responsibility as hereinafter provided. For the purposes of this Section, the facilitation of a privately-owned passenger motor vehicle for use by a person other than the vehicle's registered owner as a part of a personal car facilitation transaction shall constitute engaging in the business of renting out motor vehicles in this State. For the purposes of providing proof of financial responsibility under this Section, a personal car facilitation company shall be considered the owner of the vehicle and financially responsible for that vehicle at any time the vehicle is used in a personal car facilitation transaction facilitated by that company and under the operation and control of a person other than the vehicle's registered owner. The delivery of a vehicle owned by an out of State person or business to a renter in this State shall constitute engaging in the rental business in this State for purposes of this Section.

All owners of motor vehicles which are leased for a period of one year or more are not required to provide proof of insurance as required under this chapter, but instead must comply with Section 7-601 of this Code and obtain vehicle insurance in amounts no less than the minimum amount set for bodily injury or death and for destruction of property pursuant to Section 7-203 of this Code.

(Source: P.A. 86-880; 87-1220.)

Section 25. The Automated Traffic Control Systems in Highway Construction or Maintenance Zones Act is amended by changing Section 45 as follows:

(625 ILCS 7/45)

Sec. 45. Vehicle rental or leasing company's identification of a renter or lessee.

(a) A Uniform Traffic Citation issued under this Act to a motor vehicle rental or leasing company shall be dismissed with respect to the rental or leasing company if:

(1) the company responds to the Uniform Traffic Citation by submitting, within 30 days of the mailing of the citation, an affidavit of non-liability stating that, at the time of the alleged speeding or other traffic violation, the vehicle was in the custody and control of a renter or lessee under the terms of a rental agreement or lease; and

(2) the company provides the driver's license number, name, and address of the renter or lessee.

(a-5) A Uniform Traffic Citation issued under this Act to the registered owner of a vehicle used in personal car facilitation transaction, as defined in Section 1-159.1b of the Illinois Vehicle Code, shall be dismissed with respect to the registered owner if:

(1) the registered owner responds to the Uniform Traffic Citation by submitting, within 30 days of the mailing of the citation, an affidavit of non-liability stating that, at the time of the alleged speeding or other traffic violation, the vehicle was under the operation and control of a person other than the vehicle's registered owner under a personal car facilitation transaction facilitated by a personal car facilitation company; and

(2) the registered owner provides proof of the transaction facilitated by the personal car facilitation company between the registered owner of the vehicle and the driver of the vehicle during the alleged violation.

(b) A Uniform Traffic Citation dismissed with respect to a motor vehicle rental or leasing company in accordance with subsection (a) may then be issued and delivered by mail or other means to the renter or lessee identified in the affidavit of non-liability.

(Source: P.A. 93-947, eff. 8-19-04.)

Section 30. The Renter's Financial Responsibility and Protection Act is amended by changing Section 10 and by adding Section 30 as follows:

(625 ILCS 27/10)

Sec. 10. Definitions. As used in this Act:

"Personal car facilitation company" means a legal entity qualified to do business in this State engaged in the business of facilitating the use, rental, or sharing of privately-owned passenger motor vehicles for noncommercial use by individuals within this State. "Personal car facilitation company" does not include the registered owner of the vehicle facilitated by a personal car facilitation company for the purpose of personal car facilitation.

"Personal car facilitation transaction" means the use of a privately-owned passenger motor vehicle by a person other than the vehicle's registered owner as facilitated by a personal car facilitation company.

"Rental Company" means a person or entity that rents private passenger vehicles to the public for 30 days or less. "Rental company" includes a personal car facilitation company.

"Renter" means a person or entity that obtains the use of a private passenger vehicle from a rental company under terms of a rental agreement.

"Rental Agreement" means an agreement for 30 days or less setting forth the terms and conditions governing the use of a private passenger vehicle provided by a rental company.

"Authorized Driver" means: the renter; the renter's spouse if the spouse is a licensed driver and satisfies the rental company's minimum age requirement; the renter's employer, employee, or co-worker if that person is a licensed driver, satisfies the rental company's minimum age requirement, and at the time of the rental is engaged in a business activity with the renter; any person who is expressly listed by the rental company on the rental agreement as an authorized driver; and any person driving directly to a medical or police facility under circumstances reasonably believed to constitute an emergency and who is a licensed driver.

"Damage Waiver" means a rental company's agreement not to hold an authorized driver liable for all or a part of any damage to or loss of a rented vehicle for which the renter may be liable pursuant to Section 6-305.2. "Damage Waiver" shall encompass within its meaning other similar terms used by rental companies, such as "Collision Damage Waiver", "Loss Damage Waiver", "Physical Damage Waiver", and the like.

(Source: P.A. 90-113, eff. 7-14-97.)

(625 ILCS 27/30 new)

Sec. 30. Personal car facilitation company obligations and liability.

(a) Notwithstanding any provision to the contrary, a rental company that is a personal car facilitation company shall, when applicable, be subject to the statutory and regulatory obligations pertaining to all motor vehicle rental companies.

(b) If any loss or injury occurs at any time a vehicle is under the operation and control of a person other than the vehicle's registered owner under a personal car facilitation transaction facilitated by a personal car facilitation company, the company shall assume all liability of the registered owner of the vehicle used in the personal car facilitation transaction and shall be considered the vehicle's owner for all purposes.

(c) A personal car facilitation company continues to be liable under subsection (b) of this Section until the vehicle is returned to a location designated by the company, and one of the following occur:

(1) the expiration of the personal car facilitation period established for the vehicle occurs;

(2) the intent to terminate the vehicle's personal car facilitation transaction is verifiably communicated to the company; or

(3) the vehicle's registered owner takes possession and control of the vehicle.

If any loss giving rise to a claim occurs, the personal car facilitation company shall initially assume liability for a claim in which a dispute exists as to who was in control of the vehicle and seek indemnification if it is later determined that the registered owner was in possession of the vehicle.

(d) At no time shall the registered owner of the vehicle or the owner's insurer be held liable for any loss, injury, damage, or violation involving his or her vehicle occurring during a personal car facilitation transaction unless it is shown that the registered owner was operating or in control of the vehicle at the time of the loss, injury, damage, or violation.

(e) Notwithstanding any provision to the contrary, for the purposes of the issuance of a civil penalty for a violation of Section 11-208.6, 11-208.8, 11-208.9, or 11-1201.1 of the Illinois Vehicle Code, the violation shall be dismissed with respect to the registered owner of the vehicle, and the personal car facilitation company shall be considered the vehicle's owner for purposes of violation, if:

(1) the registered owner responds to the citation by submitting, within 30 days of the mailing of the citation, an affidavit of non-liability stating that, at the time of the alleged violation, the vehicle was under the operation and control of a person other than the vehicle's registered owner under a personal car facilitation transaction facilitated by a personal car facilitation company; and

(2) the registered owner provides proof of the transaction facilitated by the personal car facilitation company with the driver of his or her vehicle during the alleged violation.

(f) Nothing in this Section shall limit the liability of the personal car facilitation company for any acts or omissions by the company that result in injury to any persons as a result of the use or operation of a vehicle during a personal car facilitation transaction.

(g) The personal car facilitation company shall collect and verify records pertaining to the use of a vehicle, including, but not limited to, times used, fees paid by the rentor, and revenues received by the vehicle owner, and provide that information upon request to the registered vehicle owner, the owner's insurer, and the insurer of a person operating the vehicle during the personal car transaction and shall retain the records for a reasonable period after the expiration of the applicable personal injury statute of limitations.

(h) The personal car facilitation company 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 transaction, and shall agree to indemnify and hold harmless the vehicle owner for any damage to or theft of such equipment.".