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

HB3712ham002 102ND GENERAL ASSEMBLY

Rep. Thaddeus Jones

Filed: 4/20/2021

 

 


 

 


 
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1
AMENDMENT TO HOUSE BILL 3712

2    AMENDMENT NO. ______. Amend House Bill 3712, AS AMENDED,
3by replacing everything after the enacting clause with the
4following:
 
5    "Section 1. Short title. This Act may be cited as the
6Car-Sharing Program Act.
 
7    Section 5. Definitions. As used in this Act:
8    "Peer-to-peer car sharing" means the authorized use of a
9vehicle by an individual other than the vehicle's owner
10through a car-sharing program. "Peer-to-peer car sharing" does
11not include "rent a motor vehicle to another" within the
12meaning of in Section 6-305 of the Illinois Vehicle Code; a
13transaction involving a "rental agreement" as defined in
14Section 10 of the Renter's Financial Responsibility and
15Protection Act; or "renting" as defined in Section 2 of the
16Automobile Renting Occupation and Use Tax Act.

 

 

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1    "Car-sharing agreement" means the terms and conditions
2applicable to a shared-vehicle owner and a shared-vehicle
3driver that govern the use of a shared vehicle through a
4car-sharing program. "Car-sharing agreement" does not include
5a "rental agreement" as defined in Section 10 of the Renter's
6Financial Responsibility and Protection Act, a "rental
7agreement" within the meaning of Section 6-305.2 of the
8Illinois Vehicle Code, or a "rental agreement" as defined in
9Section 6-305.3 of the Illinois Vehicle Code.
10    "Car-sharing period" means the period that commences with
11the delivery period, or, if there is no delivery period, that
12commences with the car-sharing start time and in either case
13ends at the car-sharing termination time.
14    "Car-sharing program" means a business platform that
15connects vehicle owners with drivers to enable the sharing of
16vehicles for financial consideration. "Car-sharing program"
17does not include a "rental company" as defined in Section 10 of
18the Renter's Financial Responsibility and Protection Act;
19"rentor" as defined in Section 2 of the Automobile Renting
20Occupation and Use Tax Act; a person or entity whose business
21is to "rent a motor vehicle" to another person within the
22meaning of Section 6-305 or 6-305.2 of the Illinois Vehicle
23Code; or a "rental car company" as that term is used in Section
246-305 of the Illinois Vehicle Code. A "car-sharing program" is
25not "engaged in the business of renting automobiles" within
26the meaning of Section 5-1032 of the Counties Code or Section

 

 

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18-11-7 of the Illinois Municipal Code.
2    "Car-sharing start time" means the time when the shared
3vehicle becomes subject to the control of the shared-vehicle
4driver at or after the time the reservation of a shared vehicle
5is scheduled to begin as documented in the records of a
6car-sharing program.
7    "Car-sharing termination time" means the earliest of the
8following events:
9        (1) the expiration of the agreed-upon period
10    established for the use of a shared vehicle according to
11    the terms of the car-sharing agreement if the shared
12    vehicle is delivered to the location agreed upon in the
13    car-sharing agreement;
14        (2) the time the shared vehicle is returned to a
15    location as alternatively agreed upon by the
16    shared-vehicle owner and shared-vehicle driver as
17    communicated through a car-sharing program, which
18    alternatively agreed-upon location shall be incorporated
19    into the car-sharing agreement; or
20        (3) the time the shared-vehicle owner or the
21    shared-vehicle owner's authorized designee takes
22    possession and control of the shared vehicle.
23    "Delivery period" means the period during which a shared
24vehicle is being delivered to the location of the car-sharing
25start time, if applicable, as documented by the governing
26car-sharing agreement.

 

 

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1    "Shared vehicle" means a vehicle that is available for
2sharing through a car-sharing program. "Shared vehicle" does
3not include a rental vehicle within the meaning of Section
46-305.2 of the Illinois Vehicle Code.
5    "Shared-vehicle driver" means an individual who has been
6authorized to drive the shared vehicle by the shared-vehicle
7owner under a car-sharing agreement.
8    "Shared-vehicle owner" means the registered owner, or a
9person or entity designated by the registered owner, of a
10vehicle made available for sharing to shared-vehicle drivers
11through a car-sharing program. "Shared-vehicle owner" does not
12include a "rental company" as defined in Section 10 of the
13Renter's Financial Responsibility and Protection Act; a
14"rentor" as defined in Section 2 of the Automobile Renting
15Occupation and Use Tax Act; a person or entity whose business
16is to "rent a motor vehicle" to another person within the
17meaning of Section 6-305 or 6-305.2 of the Illinois Vehicle
18Code; or a "rental car company" as that term is used in Section
196-305 of the Illinois Vehicle Code. A "shared-vehicle owner"
20is not "engaged in the business of renting automobiles" within
21the meaning of Section 5-1032 of the Counties Code or Section
228-11-7 of the Illinois Municipal Code.
 
23    Section 10. Insurance coverage during car-sharing period.
24    (a) Except as provided in subsection (b), a car-sharing
25program shall assume liability of a shared-vehicle owner for

 

 

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1bodily injury or property damage to third parties or uninsured
2and underinsured motorist or personal injury protection losses
3during the car-sharing period in an amount stated in the
4car-sharing agreement, which amount may not be less than 4
5times the minimum amounts required under Section 7-601 of the
6Illinois Vehicle Code.
7    (b) Notwithstanding the definition of "car-sharing
8termination time" set forth in Section 5, the assumption of
9liability under subsection (a) does not apply to any
10shared-vehicle owner when:
11        (1) the shared-vehicle owner makes an intentional or
12    fraudulent material misrepresentation or omission to the
13    car-sharing program before the car-sharing period in which
14    the loss occurred; or
15        (2) the shared-vehicle owner acts in concert with a
16    shared-vehicle driver who fails to return the shared
17    vehicle pursuant to the terms of car-sharing agreement.
18    (c) Notwithstanding the definition of "car-sharing
19termination time" set forth in Section 5, the assumption of
20liability under subsection (a) applies to bodily injury,
21property damage, and uninsured and underinsured motorist or
22personal injury protection losses by damaged third parties
23required by Section 7-601 of the Illinois Vehicle Code.
24    (d) A car-sharing program shall ensure that, during each
25car-sharing period, the shared-vehicle owner and the
26shared-vehicle driver are insured under a motor vehicle

 

 

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1liability insurance policy that provides insurance coverage in
2amounts that, for the shared-vehicle driver, are equal to 2
3times the minimum amounts set forth in Section 7-601 of the
4Illinois Vehicle Code and:
5        (1) recognizes that the shared vehicle insured under
6    the policy is made available and used through a
7    car-sharing program; or
8        (2) does not exclude use of a shared vehicle by a
9    shared-vehicle driver.
10    (e) The insurance described under subsection (d) may be
11satisfied by motor vehicle liability insurance maintained by:
12        (1) a shared-vehicle owner;
13        (2) a shared-vehicle driver;
14        (3) a car-sharing program; or
15        (4) a combination of a shared-vehicle owner, a
16    shared-vehicle driver, and a car-sharing program.
17    (f) The insurance described in subsection (e) that is
18satisfying the insurance requirement of subsection (d) shall
19be primary during each car-sharing period, and if a claim
20occurs in another state with minimum financial responsibility
21limits higher than those set forth in Section 7-601 of the
22Illinois Vehicle Code during the car-sharing period, the
23coverage maintained under subsection (e) shall satisfy the
24difference in minimum coverage amounts up to the applicable
25policy limits.
26    (g) The insurer, insurers, or car-sharing program shall

 

 

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1assume primary liability for a claim if it is in whole or in
2part providing the insurance required under subsections (d)
3and (e) and:
4        (1) a dispute exists regarding who was in control of
5    the shared vehicle at the time of the loss and the
6    car-sharing program does not have available, did not
7    retain, or fails to provide the information required by
8    Section 25; or
9        (2) a dispute exists as to whether the shared vehicle
10    was returned to the alternatively agreed-upon location
11    referenced in Section 5.
12    (h) If insurance maintained by a shared-vehicle owner or
13shared-vehicle driver in accordance with subsection (e) has
14lapsed or does not provide the required coverage, insurance
15maintained by a car-sharing program shall provide the coverage
16required by subsection (d) beginning with the first dollar of
17a claim and shall have the duty to defend the claim except
18under circumstances as set forth in subsection (b).
19    (i) An insurance policy maintained by the car-sharing
20program shall not make the coverage dependent on another
21automobile insurer or policy first denying a claim.
22    (j) Nothing in this Section:
23        (1) limits the liability of the car-sharing program
24    for any act or omission of the car-sharing program itself
25    that results in injury to any person as a result of the use
26    of a shared vehicle through a car-sharing program; or

 

 

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1        (2) limits the ability of the car-sharing program to,
2    by contract, seek indemnification from the shared-vehicle
3    owner or the shared-vehicle driver for economic loss
4    sustained by the car-sharing program resulting from a
5    breach of the terms and conditions of the car-sharing
6    agreement.
 
7    Section 15. Notification of implications of lien. At the
8time a vehicle owner registers as a shared-vehicle owner on a
9car-sharing program and before the time when the
10shared-vehicle owner makes a shared vehicle available for car
11sharing on the car-sharing program, the car-sharing program
12shall notify the shared-vehicle owner that, if the shared
13vehicle has a lien against it, the use of the shared vehicle
14through a car-sharing program, including use without physical
15damage coverage, may violate the terms of the contract with
16the lienholder.
 
17    Section 20. Exclusions in motor vehicle liability
18insurance policies.
19    (a) An authorized insurer that writes motor vehicle
20liability insurance in this State may exclude any coverage and
21the duty to defend or indemnify for any claim afforded under a
22shared-vehicle owner's motor vehicle liability insurance
23policy, including, but not limited to:
24        (1) liability coverage for bodily injury and property

 

 

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1    damage;
2        (2) uninsured and underinsured motorist coverage;
3        (3) medical payments coverage;
4        (4) comprehensive physical damage coverage; and
5        (5) collision physical damage coverage.
6    (b) Nothing in this Act invalidates or limits an exclusion
7contained in a motor vehicle liability insurance policy,
8including any insurance policy in use or approved for use that
9excludes coverage for motor vehicles made available for rent,
10sharing, or hire, or for any business use.
11    (c) Nothing in this Act invalidates, limits, or restricts
12an insurer's ability under existing law to underwrite any
13insurance policy. Nothing in this Act invalidates, limits, or
14restricts an insurer's ability under existing law to cancel
15and non-renew policies.
 
16    Section 25. Recordkeeping; use of vehicle in car sharing.
17A car-sharing program shall collect and verify records
18pertaining to the use of a vehicle, including, but not limited
19to, times used, car-sharing period pick up and drop off
20locations, fees paid by the shared-vehicle driver, and
21revenues received by the shared-vehicle owner, and the
22car-sharing program shall provide that information upon
23request to the shared-vehicle owner, the shared-vehicle
24owner's insurer, or the shared-vehicle driver's insurer to
25facilitate a claim coverage investigation, settlement,

 

 

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1negotiation, or litigation. The car-sharing program shall
2retain the records for a period not less than the applicable
3personal injury statute of limitations.
 
4    Section 30. Exemption; vicarious liability. A car-sharing
5program and a shared-vehicle owner shall be exempt from
6vicarious liability consistent with 49 U.S.C. 30106 and under
7any State or local law that imposes liability solely based on
8vehicle ownership.
 
9    Section 35. Recovery against indemnification. A motor
10vehicle insurer that defends or indemnifies a claim against a
11shared vehicle that is excluded under the terms of its policy
12shall have the right to seek recovery against the motor
13vehicle insurer of the car-sharing program if the claim is:
14        (1) made against the shared-vehicle owner or the
15    shared-vehicle driver for loss or injury that occurs
16    during the car-sharing period; and
17        (2) excluded under the terms of its policy.
 
18    Section 40. Insurable interest.
19    (a) Notwithstanding any other law, statute, rule, or
20regulation to the contrary, a car-sharing program shall have
21an insurable interest in a shared vehicle during the
22car-sharing period and may provide or offer to provide
23coverage to a shared-vehicle owner or a shared-vehicle driver

 

 

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1under the policy of insurance described in subsection (c).
2    (b) Nothing in this Section shall be construed as
3modifying the obligations of the car-sharing program pursuant
4to Section 10.
5    (c) A car-sharing program may own and maintain, as the
6named insured, one or more policies of motor vehicle liability
7insurance that separately or in combination provides coverage
8for:
9        (1) liabilities assumed by the car-sharing program
10    under a car-sharing agreement;
11        (2) any liability of the shared-vehicle owner;
12        (3) damage or loss to the shared vehicle; or
13        (4) any liability of the shared-vehicle driver.
 
14    Section 45. Consumer protection disclosures. Each
15car-sharing agreement made in this State shall disclose to the
16shared-vehicle owner and the shared-vehicle driver:
17        (1) Any right of the car-sharing program to seek
18    indemnification from the shared-vehicle owner or the
19    shared-vehicle driver for economic loss sustained by the
20    car-sharing program resulting from a breach of the terms
21    and conditions of the car-sharing agreement.
22        (2) That a motor vehicle liability insurance policy
23    issued to the shared-vehicle owner for the shared vehicle
24    or to the shared-vehicle driver does not provide a defense
25    or indemnification for any claim asserted by the

 

 

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

 

 

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1shared vehicle:
2        (1) holds a driver's license issued under the laws of
3    this State that authorizes the driver to operate vehicles
4    of the class of the shared vehicle; or
5        (2) is a nonresident who:
6            (i) has a driver's license issued by the state or
7        country of the driver's residence that authorizes the
8        driver in that state or country to drive vehicles of
9        the class of the shared vehicle; and
10            (ii) is at least the same age as that required of a
11        resident to drive; or
12        (3) otherwise is specifically authorized under the
13    laws of this State to drive vehicles of the class of the
14    shared vehicle.
15    (b) A car-sharing program shall keep a record of:
16        (1) the name and address of the shared-vehicle driver;
17        (2) the number of the driver's license of the
18    shared-vehicle driver and each other person, if any, who
19    will operate the shared vehicle; and
20        (3) the place of issuance of the driver's license.
 
21    Section 55. Responsibility for equipment. A car-sharing
22program shall have sole responsibility for any equipment, such
23as a GPS system or other special equipment, that is put in or
24on the vehicle to monitor or facilitate the car-sharing
25transaction, and shall agree to indemnify and hold harmless

 

 

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1the vehicle owner for any damage to or theft of such equipment
2during the car-sharing period not caused by the vehicle owner.
3The car-sharing program has the right to seek recovery from
4the shared-vehicle driver for any loss or damage to such
5equipment that occurs during the car-sharing period.
 
6    Section 60. Automobile safety recalls.
7    (a) At the time a vehicle owner registers as a
8shared-vehicle owner on a car-sharing program and before the
9time the shared-vehicle owner makes a shared vehicle available
10for car sharing on the car-sharing program, the car-sharing
11program shall:
12        (1) verify that the shared vehicle does not have any
13    safety recalls on the vehicle for which the repairs have
14    not been made; and
15        (2) notify the shared-vehicle owner of the
16    requirements under subsection (b).
17    (b) (1) If the shared-vehicle owner has received an actual
18notice of a safety recall on the vehicle, a shared-vehicle
19owner may not make a vehicle available as a shared vehicle on a
20car-sharing program until the safety recall repair has been
21made.
22    (2) If a shared-vehicle owner receives an actual notice of
23a safety recall on a shared vehicle while the shared vehicle is
24made available on the car-sharing program, the shared-vehicle
25owner shall remove the shared vehicle from availability on the

 

 

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1car-sharing program, as soon as practicably possible after
2receiving the notice of the safety recall and until the safety
3recall repair has been made.
4    (3) If a shared-vehicle owner receives an actual notice of
5a safety recall while the shared vehicle is being used in the
6possession of a shared-vehicle driver, as soon as practicably
7possible after receiving the notice of the safety recall, the
8shared-vehicle owner shall notify the car-sharing program
9about the safety recall so that the shared-vehicle owner may
10address the safety recall repair.
 
11    Section 99. Effective date. This Act takes effect January
121, 2022.".