Illinois General Assembly - Full Text of HB3712
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Full Text of HB3712  102nd General Assembly

HB3712eng 102ND GENERAL ASSEMBLY

  
  
  

 


 
HB3712 EngrossedLRB102 16923 RAM 22335 b

1    AN ACT concerning transportation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 1. Short title. This Act may be cited as the
5Car-Sharing Program Act.
 
6    Section 5. Definitions. As used in this Act:
7    "Peer-to-peer car sharing" means the authorized use of a
8vehicle by an individual other than the vehicle's owner
9through a car-sharing program. "Peer-to-peer car sharing" does
10not include "rent a motor vehicle to another" within the
11meaning of in Section 6-305 of the Illinois Vehicle Code; a
12transaction involving a "rental agreement" as defined in
13Section 10 of the Renter's Financial Responsibility and
14Protection Act; or "renting" as defined in Section 2 of the
15Automobile Renting Occupation and Use Tax Act.
16    "Car-sharing agreement" means the terms and conditions
17applicable to a shared-vehicle owner and a shared-vehicle
18driver that govern the use of a shared vehicle through a
19car-sharing program. "Car-sharing agreement" does not include
20a "rental agreement" as defined in Section 10 of the Renter's
21Financial Responsibility and Protection Act, a "rental
22agreement" within the meaning of Section 6-305.2 of the
23Illinois Vehicle Code, or a "rental agreement" as defined in

 

 

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1Section 6-305.3 of the Illinois Vehicle Code.
2    "Car-sharing period" means the period that commences with
3the delivery period, or, if there is no delivery period, that
4commences with the car-sharing start time and in either case
5ends at the car-sharing termination time.
6    "Car-sharing program" means a business platform that
7connects vehicle owners with drivers to enable the sharing of
8vehicles for financial consideration. "Car-sharing program"
9does not include a "rental company" as defined in Section 10 of
10the Renter's Financial Responsibility and Protection Act;
11"rentor" as defined in Section 2 of the Automobile Renting
12Occupation and Use Tax Act; a person or entity whose business
13is to "rent a motor vehicle" to another person within the
14meaning of Section 6-305 or 6-305.2 of the Illinois Vehicle
15Code; or a "rental car company" as that term is used in Section
166-305 of the Illinois Vehicle Code. A "car-sharing program" is
17not "engaged in the business of renting automobiles" within
18the meaning of Section 5-1032 of the Counties Code or Section
198-11-7 of the Illinois Municipal Code.
20    "Car-sharing start time" means the time when the shared
21vehicle becomes subject to the control of the shared-vehicle
22driver at or after the time the reservation of a shared vehicle
23is scheduled to begin as documented in the records of a
24car-sharing program.
25    "Car-sharing termination time" means the earliest of the
26following events:

 

 

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1        (1) the expiration of the agreed-upon period
2    established for the use of a shared vehicle according to
3    the terms of the car-sharing agreement if the shared
4    vehicle is delivered to the location agreed upon in the
5    car-sharing agreement;
6        (2) the time the shared vehicle is returned to a
7    location as alternatively agreed upon by the
8    shared-vehicle owner and shared-vehicle driver as
9    communicated through a car-sharing program, which
10    alternatively agreed-upon location shall be incorporated
11    into the car-sharing agreement; or
12        (3) the time the shared-vehicle owner or the
13    shared-vehicle owner's authorized designee takes
14    possession and control of the shared vehicle.
15    "Delivery period" means the period during which a shared
16vehicle is being delivered to the location of the car-sharing
17start time, if applicable, as documented by the governing
18car-sharing agreement.
19    "Shared vehicle" means a vehicle that is available for
20sharing through a car-sharing program. "Shared vehicle" does
21not include a rental vehicle within the meaning of Section
226-305.2 of the Illinois Vehicle Code.
23    "Shared-vehicle driver" means an individual who has been
24authorized to drive the shared vehicle by the shared-vehicle
25owner under a car-sharing agreement.
26    "Shared-vehicle owner" means the registered owner, or a

 

 

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1person or entity designated by the registered owner, of a
2vehicle made available for sharing to shared-vehicle drivers
3through a car-sharing program. "Shared-vehicle owner" does not
4include a "rental company" as defined in Section 10 of the
5Renter's Financial Responsibility and Protection Act; a
6"rentor" as defined in Section 2 of the Automobile Renting
7Occupation and Use Tax Act; a person or entity whose business
8is to "rent a motor vehicle" to another person within the
9meaning of Section 6-305 or 6-305.2 of the Illinois Vehicle
10Code; or a "rental car company" as that term is used in Section
116-305 of the Illinois Vehicle Code. A "shared-vehicle owner"
12is not "engaged in the business of renting automobiles" within
13the meaning of Section 5-1032 of the Counties Code or Section
148-11-7 of the Illinois Municipal Code.
 
15    Section 10. Insurance coverage during car-sharing period.
16    (a) Except as provided in subsection (b), a car-sharing
17program shall assume liability of a shared-vehicle owner for
18bodily injury or property damage to third parties or uninsured
19and underinsured motorist or personal injury protection losses
20during the car-sharing period in an amount stated in the
21car-sharing agreement, which amount may not be less than 4
22times the minimum amounts required under Section 7-601 of the
23Illinois Vehicle Code.
24    (b) Notwithstanding the definition of "car-sharing
25termination time" set forth in Section 5, the assumption of

 

 

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1liability under subsection (a) does not apply to any
2shared-vehicle owner when:
3        (1) the shared-vehicle owner makes an intentional or
4    fraudulent material misrepresentation or omission to the
5    car-sharing program before the car-sharing period in which
6    the loss occurred; or
7        (2) the shared-vehicle owner acts in concert with a
8    shared-vehicle driver who fails to return the shared
9    vehicle pursuant to the terms of car-sharing agreement.
10    (c) Notwithstanding the definition of "car-sharing
11termination time" set forth in Section 5, the assumption of
12liability under subsection (a) applies to bodily injury,
13property damage, and uninsured and underinsured motorist or
14personal injury protection losses by damaged third parties
15required by Section 7-601 of the Illinois Vehicle Code.
16    (d) A car-sharing program shall ensure that, during each
17car-sharing period, the shared-vehicle owner and the
18shared-vehicle driver are insured under a motor vehicle
19liability insurance policy that provides insurance coverage in
20amounts that, for the shared-vehicle driver, are equal to 2
21times the minimum amounts set forth in Section 7-601 of the
22Illinois 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
3satisfied 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
10satisfying the insurance requirement of subsection (d) shall
11be primary during each car-sharing period, and if a claim
12occurs in another state with minimum financial responsibility
13limits higher than those set forth in Section 7-601 of the
14Illinois Vehicle Code during the car-sharing period, the
15coverage maintained under subsection (e) shall satisfy the
16difference in minimum coverage amounts up to the applicable
17policy limits.
18    (g) The insurer, insurers, or car-sharing program shall
19assume primary liability for a claim if it is in whole or in
20part providing the insurance required under subsections (d)
21and (e) and:
22        (1) a dispute exists regarding who was in control of
23    the shared vehicle at the time of the loss and the
24    car-sharing program does not have available, did not
25    retain, or fails to provide the information required by
26    Section 25; or

 

 

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1        (2) a dispute exists as to whether the shared vehicle
2    was returned to the alternatively agreed-upon location
3    referenced in Section 5.
4    (h) If insurance maintained by a shared-vehicle owner or
5shared-vehicle driver in accordance with subsection (e) has
6lapsed or does not provide the required coverage, insurance
7maintained by a car-sharing program shall provide the coverage
8required by subsection (d) beginning with the first dollar of
9a claim and shall have the duty to defend the claim except
10under circumstances as set forth in subsection (b).
11    (i) An insurance policy maintained by the car-sharing
12program shall not make the coverage dependent on another
13automobile insurer or policy first denying a claim.
14    (j) Nothing in this Section:
15        (1) limits the liability of the car-sharing program
16    for any act or omission of the car-sharing program itself
17    that results in injury to any person as a result of the use
18    of a shared vehicle through a car-sharing program; or
19        (2) limits the ability of the car-sharing program to,
20    by contract, seek indemnification from the shared-vehicle
21    owner or the shared-vehicle driver for economic loss
22    sustained by the car-sharing program resulting from a
23    breach of the terms and conditions of the car-sharing
24    agreement.
 
25    Section 15. Notification of implications of lien. At the

 

 

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1time a vehicle owner registers as a shared-vehicle owner on a
2car-sharing program and before the time when the
3shared-vehicle owner makes a shared vehicle available for car
4sharing on the car-sharing program, the car-sharing program
5shall notify the shared-vehicle owner that, if the shared
6vehicle has a lien against it, the use of the shared vehicle
7through a car-sharing program, including use without physical
8damage coverage, may violate the terms of the contract with
9the lienholder.
 
10    Section 20. Exclusions in motor vehicle liability
11insurance policies.
12    (a) An authorized insurer that writes motor vehicle
13liability insurance in this State may exclude any coverage and
14the duty to defend or indemnify for any claim afforded under a
15shared-vehicle owner's motor vehicle liability insurance
16policy, including, but not limited to:
17        (1) liability coverage for bodily injury and property
18    damage;
19        (2) uninsured and underinsured motorist coverage;
20        (3) medical payments coverage;
21        (4) comprehensive physical damage coverage; and
22        (5) collision physical damage coverage.
23    (b) Nothing in this Act invalidates or limits an exclusion
24contained in a motor vehicle liability insurance policy,
25including any insurance policy in use or approved for use that

 

 

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1excludes coverage for motor vehicles made available for rent,
2sharing, or hire, or for any business use.
3    (c) Nothing in this Act invalidates, limits, or restricts
4an insurer's ability under existing law to underwrite any
5insurance policy. Nothing in this Act invalidates, limits, or
6restricts an insurer's ability under existing law to cancel
7and non-renew policies.
 
8    Section 25. Recordkeeping; use of vehicle in car sharing.
9A car-sharing program shall collect and verify records
10pertaining to the use of a vehicle, including, but not limited
11to, times used, car-sharing period pick up and drop off
12locations, fees paid by the shared-vehicle driver, and
13revenues received by the shared-vehicle owner, and the
14car-sharing program shall provide that information upon
15request to the shared-vehicle owner, the shared-vehicle
16owner's insurer, or the shared-vehicle driver's insurer to
17facilitate a claim coverage investigation, settlement,
18negotiation, or litigation. The car-sharing program shall
19retain the records for a period not less than the applicable
20personal injury statute of limitations.
 
21    Section 30. Exemption; vicarious liability. A car-sharing
22program and a shared-vehicle owner shall be exempt from
23vicarious liability consistent with 49 U.S.C. 30106 and under
24any State or local law that imposes liability solely based on

 

 

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1vehicle ownership.
 
2    Section 35. Recovery against indemnification. A motor
3vehicle insurer that defends or indemnifies a claim against a
4shared vehicle that is excluded under the terms of its policy
5shall have the right to seek recovery against the motor
6vehicle insurer of the car-sharing program if the claim is:
7        (1) made against the shared-vehicle owner or the
8    shared-vehicle driver for loss or injury that occurs
9    during the car-sharing period; and
10        (2) excluded under the terms of its policy.
 
11    Section 40. Insurable interest.
12    (a) Notwithstanding any other law, statute, rule, or
13regulation to the contrary, a car-sharing program shall have
14an insurable interest in a shared vehicle during the
15car-sharing period and may provide or offer to provide
16coverage to a shared-vehicle owner or a shared-vehicle driver
17under the policy of insurance described in subsection (c).
18    (b) Nothing in this Section shall be construed as
19modifying the obligations of the car-sharing program pursuant
20to Section 10.
21    (c) A car-sharing program may own and maintain, as the
22named insured, one or more policies of motor vehicle liability
23insurance that separately or in combination provides coverage
24for:

 

 

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1        (1) liabilities assumed by the car-sharing program
2    under a car-sharing agreement;
3        (2) any liability of the shared-vehicle owner;
4        (3) damage or loss to the shared vehicle; or
5        (4) any liability of the shared-vehicle driver.
 
6    Section 45. Consumer protection disclosures. Each
7car-sharing agreement made in this State shall disclose to the
8shared-vehicle owner and the shared-vehicle driver:
9        (1) Any right of the car-sharing program to seek
10    indemnification from the shared-vehicle owner or the
11    shared-vehicle driver for economic loss sustained by the
12    car-sharing program resulting from a breach of the terms
13    and conditions of the car-sharing agreement.
14        (2) That a motor vehicle liability insurance policy
15    issued to the shared-vehicle owner for the shared vehicle
16    or to the shared-vehicle driver does not provide a defense
17    or indemnification for any claim asserted by the
18    car-sharing program.
19        (3) That the car-sharing program's insurance coverage
20    on the shared-vehicle owner and the shared-vehicle driver
21    is in effect only during each car-sharing period and that,
22    for any use of the shared vehicle by the shared-vehicle
23    driver after the car-sharing termination time, the
24    shared-vehicle driver and the shared-vehicle owner may not
25    have insurance coverage.

 

 

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1        (4) The daily rate, fees, and, if applicable, any
2    insurance or protection package costs that are charged to
3    the shared-vehicle owner or the shared-vehicle driver.
4        (5) That the shared-vehicle owner's motor vehicle
5    liability insurance may not provide coverage for a shared
6    vehicle.
7        (6) An emergency telephone number for personnel
8    capable of fielding roadside assistance and other customer
9    service inquiries.
10        (7) If there are conditions under which a
11    shared-vehicle driver shall maintain a personal automobile
12    insurance policy with certain applicable coverage limits
13    on a primary basis in order to book a shared vehicle.
 
14    Section 50. Driver's license verification and data
15retention.
16    (a) A car-sharing program may not enter into a car-sharing
17agreement with a driver unless the driver who will operate the
18shared vehicle:
19        (1) holds a driver's license issued under the laws of
20    this State that authorizes the driver to operate vehicles
21    of the class of the shared vehicle; or
22        (2) is a nonresident who:
23            (i) has a driver's license issued by the state or
24        country of the driver's residence that authorizes the
25        driver in that state or country to drive vehicles of

 

 

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1        the class of the shared vehicle; and
2            (ii) is at least the same age as that required of a
3        resident to drive; or
4        (3) otherwise is specifically authorized under the
5    laws of this State to drive vehicles of the class of the
6    shared vehicle.
7    (b) A car-sharing program shall keep a record of:
8        (1) the name and address of the shared-vehicle driver;
9        (2) the number of the driver's license of the
10    shared-vehicle driver and each other person, if any, who
11    will operate the shared vehicle; and
12        (3) the place of issuance of the driver's license.
 
13    Section 55. Responsibility for equipment. A car-sharing
14program shall have sole responsibility for any equipment, such
15as a GPS system or other special equipment, that is put in or
16on the vehicle to monitor or facilitate the car-sharing
17transaction, and shall agree to indemnify and hold harmless
18the vehicle owner for any damage to or theft of such equipment
19during the car-sharing period not caused by the vehicle owner.
20The car-sharing program has the right to seek recovery from
21the shared-vehicle driver for any loss or damage to such
22equipment that occurs during the car-sharing period.
 
23    Section 60. Automobile safety recalls.
24    (a) At the time a vehicle owner registers as a

 

 

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1shared-vehicle owner on a car-sharing program and before the
2time the shared-vehicle owner makes a shared vehicle available
3for car sharing on the car-sharing program, the car-sharing
4program shall:
5        (1) verify that the shared vehicle does not have any
6    safety recalls on the vehicle for which the repairs have
7    not been made; and
8        (2) notify the shared-vehicle owner of the
9    requirements under subsection (b).
10    (b) (1) If the shared-vehicle owner has received an actual
11notice of a safety recall on the vehicle, a shared-vehicle
12owner may not make a vehicle available as a shared vehicle on a
13car-sharing program until the safety recall repair has been
14made.
15    (2) If a shared-vehicle owner receives an actual notice of
16a safety recall on a shared vehicle while the shared vehicle is
17made available on the car-sharing program, the shared-vehicle
18owner shall remove the shared vehicle from availability on the
19car-sharing program, as soon as practicably possible after
20receiving the notice of the safety recall and until the safety
21recall repair has been made.
22    (3) If a shared-vehicle owner receives an actual notice of
23a safety recall while the shared vehicle is being used in the
24possession of a shared-vehicle driver, as soon as practicably
25possible after receiving the notice of the safety recall, the
26shared-vehicle owner shall notify the car-sharing program

 

 

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1about the safety recall so that the shared-vehicle owner may
2address the safety recall repair.
 
3    Section 99. Effective date. This Act takes effect January
41, 2022.