101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
SB3609

 

Introduced 2/14/2020, by Sen. Napoleon Harris, III

 

SYNOPSIS AS INTRODUCED:
 
New Act

    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, including, but not limited to, those related to motor vehicle regulation, airport regulation, or taxation. 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, 2022.


LRB101 19804 HEP 69316 b

 

 

A BILL FOR

 

SB3609LRB101 19804 HEP 69316 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. Scope. This Act is intended to govern the
7intersection of car-sharing services and the State-regulated
8business of insurance. Nothing in this Act shall be construed
9to extend beyond insurance or have any implications for other
10State law, including, but not limited to, those related to
11motor vehicle regulation, airport regulation, or taxation.
 
12    Section 10. Definitions. As used in this Act:
13    "Car sharing" means the authorized use of a vehicle by an
14individual other than the vehicle's owner through a car-sharing
15program. "Car sharing" does not include a rental car or rental
16activity.
17    "Car-sharing agreement" means the terms and conditions
18applicable to a shared-vehicle owner and a shared-vehicle
19driver that govern the use of a shared vehicle through a
20car-sharing program. "Car-sharing agreement" does not include
21a rental car agreement.
22    "Car-sharing period" means the period that commences with

 

 

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1the delivery period, or, if there is no delivery period, that
2commences with the car-sharing start time and in either case
3ends at the car-sharing termination time.
4    "Car-sharing program" means a business platform that
5connects vehicle owners with drivers to enable the sharing of
6vehicles for financial consideration. "Car-sharing program"
7does not include a rental car company.
8    "Car-sharing start time" means the time when the shared
9vehicle becomes subject to the control of the shared-vehicle
10driver at or after the time the reservation of a shared vehicle
11is scheduled to begin as documented in the records of a
12car-sharing program.
13    "Car-sharing termination time" means the earliest of the
14following events:
15        (1) the expiration of the agreed-upon period
16    established for the use of a shared vehicle according to
17    the terms of the car-sharing agreement if the shared
18    vehicle is delivered to the location agreed upon in the
19    car-sharing agreement;
20        (2) the time the shared vehicle is returned to a
21    location as alternatively agreed upon by the
22    shared-vehicle owner and shared-vehicle driver as
23    communicated through a car-sharing program; or
24        (3) the time the shared-vehicle owner or the
25    shared-vehicle owner's authorized designee takes
26    possession and control of the shared vehicle.

 

 

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1    "Delivery period" means the period during which a shared
2vehicle is being delivered to the location of the car-sharing
3start time, if applicable, as documented by the governing
4car-sharing agreement.
5    "Shared vehicle" means a vehicle that is available for
6sharing through a car-sharing program. "Shared vehicle" does
7not include a rental car or rental vehicle.
8    "Shared-vehicle driver" means an individual who has been
9authorized to drive the shared vehicle by the shared-vehicle
10owner under a car-sharing agreement.
11    "Shared-vehicle owner" means the registered owner, or a
12person or entity designated by the registered owner, of a
13vehicle made available for sharing to shared-vehicle drivers
14through a car-sharing program.
 
15    Section 15. 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 that
22set forth in Section 7-601 of the Illinois Vehicle Code.
23    (b) Notwithstanding the definition of "car-sharing
24termination time" set forth in Section 10, the assumption of
25liability under subsection (a) does not apply to any

 

 

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1shared-vehicle owner if:
2        (1) the shared-vehicle owner makes an intentional or
3    fraudulent material misrepresentation or omission to the
4    car-sharing program before the car-sharing period in which
5    the loss occurred; or
6        (2) the shared-vehicle owner is acting in concert with
7    a shared-vehicle driver who fails to return the shared
8    vehicle pursuant to the terms of car-sharing agreement.
9    (c) Notwithstanding the definition of "car-sharing
10termination time" set forth in Section 10, the assumption of
11liability under subsection (a) applies to bodily injury,
12property damage, and uninsured and underinsured motorist or
13personal injury protection losses by damaged third parties
14required by Section 7-601 of the Illinois Vehicle Code.
15    (d) A car-sharing program shall ensure that, during each
16car-sharing period, the shared-vehicle owner and the
17shared-vehicle driver are insured under a motor vehicle
18liability insurance policy that provides insurance coverage in
19amounts no less than the minimum amounts set forth in Section
207-601 of the Illinois Vehicle Code and:
21        (1) recognizes that the shared vehicle insured under
22    the policy is made available and used through a car-sharing
23    program; or
24        (2) does not exclude use of a shared vehicle by a
25    shared-vehicle driver.
26    (e) The insurance described under subsection (d) may be

 

 

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1satisfied by motor vehicle liability insurance maintained by:
2        (1) a shared-vehicle owner;
3        (2) a shared-vehicle driver;
4        (3) a car-sharing program; or
5        (4) a combination of a shared-vehicle owner, a
6    shared-vehicle driver, and a car-sharing program.
7    (f) The insurance described in subsection (e) that is
8satisfying the insurance requirement of subsection (d) shall be
9primary during each car-sharing period.
10    (g) The car-sharing program shall assume primary liability
11for a claim if it is in whole or in part providing the
12insurance required under subsections (d) and (e) and:
13        (1) a dispute exists as to who was in control of the
14    shared vehicle at the time of the loss; and
15        (2) the car-sharing program does not have available,
16    did not retain, or fails to provide the information
17    required by Section 30.
18    The shared vehicle's insurer shall indemnify the
19car-sharing program to the extent of its obligation under, if
20any, the applicable insurance policy, if it is determined that
21the shared vehicle's owner was in control of the shared vehicle
22at the time of the loss.
23    (h) If insurance maintained by a shared-vehicle owner or
24shared-vehicle driver in accordance with subsection (e) has
25lapsed or does not provide the required coverage, insurance
26maintained by a car-sharing program shall provide the coverage

 

 

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1required by subsection (d) beginning with the first dollar of a
2claim and shall have the duty to defend the claim except under
3circumstances as set forth in subsection (b).
4    (i) An insurance policy maintained by the car-sharing
5program shall not make the coverage dependent on another
6automobile insurer or policy first denying a claim.
7    (j) Nothing in this Section:
8        (1) limits the liability of the car-sharing program for
9    any act or omission of the car-sharing program itself that
10    results in injury to any person as a result of the use of a
11    shared vehicle through a car-sharing program; or
12        (2) limits the ability of the car-sharing program to,
13    by contract, seek indemnification from the shared-vehicle
14    owner or the shared-vehicle driver for economic loss
15    sustained by the car-sharing program resulting from a
16    breach of the terms and conditions of the car-sharing
17    agreement.
 
18    Section 20. Notification of implications of lien. At the
19time a vehicle owner registers as a shared-vehicle owner on a
20car-sharing program and before the time when the shared-vehicle
21owner makes a shared vehicle available for car sharing on the
22car-sharing program, the car-sharing program shall notify the
23shared-vehicle owner that, if the shared vehicle has a lien
24against it, the use of the shared vehicle through a car-sharing
25program, including use without physical damage coverage, may

 

 

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1violate the terms of the contract with the lienholder.
 
2    Section 25. Exclusions in motor vehicle liability
3insurance policies.
4    (a) An authorized insurer that writes motor vehicle
5liability insurance in this State may exclude any coverage and
6the duty to defend or indemnify for any claim afforded under a
7shared-vehicle owner's motor vehicle liability insurance
8policy, including, but not limited to:
9        (1) liability coverage for bodily injury and property
10    damage;
11        (2) uninsured and underinsured motorist coverage;
12        (3) medical payments coverage;
13        (4) comprehensive physical damage coverage; and
14        (5) collision physical damage coverage.
15    (b) Nothing in this Act invalidates or limits an exclusion
16contained in a motor vehicle liability insurance policy,
17including any insurance policy in use or approved for use that
18excludes coverage for motor vehicles made available for rent,
19sharing, or hire, or for any business use.
 
20    Section 30. Recordkeeping; use of vehicle in car sharing. A
21car-sharing program shall collect and verify records
22pertaining to the use of a vehicle, including, but not limited
23to, times used, fees paid by the shared-vehicle driver, and
24revenues received by the shared-vehicle owner, and the

 

 

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1car-sharing program shall provide that information upon
2request to the shared-vehicle owner, the shared-vehicle
3owner's insurer, or the shared-vehicle driver's insurer to
4facilitate a claim coverage investigation. The car-sharing
5program shall retain the records for a period not less than the
6applicable personal injury statute of limitations.
 
7    Section 35. Exemption; vicarious liability. A car-sharing
8program and a shared-vehicle owner shall be exempt from
9vicarious liability in accordance with 49 U.S.C. 30106 and
10under any State or local law that imposes liability solely
11based on vehicle ownership.
 
12    Section 40. Contribution against indemnification. A motor
13vehicle insurer that defends or indemnifies a claim against a
14shared vehicle that is excluded under the terms of its policy
15shall have the right to seek contribution against the motor
16vehicle insurer of the car-sharing program if the claim is:
17        (1) made against the shared-vehicle owner or the
18    shared-vehicle driver for loss or injury that occurs during
19    the car-sharing period; and
20        (2) excluded under the terms of its policy.
 
21    Section 45. Insurable interest.
22    (a) Notwithstanding any other law, statute, rule, or
23regulation to the contrary, a car-sharing program shall have an

 

 

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1insurable interest in a shared vehicle during the car-sharing
2period.
3    (b) Nothing in this Section requires a car-sharing program
4to maintain the coverage mandated by Section 15.
5    (c) A car-sharing program may own and maintain, as the
6named insured, one or more policies of motor vehicle liability
7insurance that provides coverage for:
8        (1) liabilities assumed by the car-sharing program
9    under a car-sharing agreement;
10        (2) any liability of the shared-vehicle owner;
11        (3) damage or loss to the shared vehicle; or
12        (4) any liability of the shared-vehicle driver.
 
13    Section 50. Consumer protection disclosures. Each
14car-sharing agreement made in this State shall disclose to the
15shared-vehicle owner and the shared-vehicle driver:
16        (1) Any right of the car-sharing program to seek
17    indemnification from the shared-vehicle owner or the
18    shared-vehicle driver for economic loss sustained by the
19    car-sharing program resulting from a breach of the terms
20    and conditions of the car-sharing agreement.
21        (2) That a motor vehicle liability insurance policy
22    issued to the shared-vehicle owner for the shared vehicle
23    or to the shared-vehicle driver does not provide a defense
24    or indemnification for any claim asserted by the
25    car-sharing program.

 

 

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1        (3) That the car-sharing program's insurance coverage
2    on the shared-vehicle owner and the shared-vehicle driver
3    is in effect only during each car-sharing period and that,
4    for any use of the shared vehicle by the shared-vehicle
5    driver after the car-sharing termination time, the
6    shared-vehicle driver and the shared-vehicle owner may not
7    have insurance coverage.
8        (4) The daily rate, fees, and, if applicable, any
9    insurance or protection package costs that are charged to
10    the shared-vehicle owner or the shared-vehicle driver.
11        (5) That the shared-vehicle owner's motor vehicle
12    liability insurance may not provide coverage for a shared
13    vehicle.
14        (6) An emergency telephone number for personnel
15    capable of fielding roadside assistance and other customer
16    service inquiries.
17        (7) If there are conditions under which a
18    shared-vehicle driver shall maintain a personal automobile
19    insurance policy with certain applicable coverage limits
20    on a primary basis in order to book a shared vehicle.
 
21    Section 55. Driver's license verification and data
22retention.
23    (a) A car-sharing program may not enter into a car-sharing
24agreement with a driver unless the driver who will operate the
25shared vehicle:

 

 

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1        (1) holds a driver's license issued under the laws of
2    this State that authorizes the driver to operate vehicles
3    of the class of the shared vehicle; or
4        (2) is a nonresident who:
5            (i) has a driver's license issued by the state or
6        country of the driver's residence that authorizes the
7        driver in that state or country to drive vehicles of
8        the class of the shared vehicle; and
9            (ii) is at least the same age as that required of a
10        resident to drive; or
11        (3) otherwise is specifically authorized under the
12    laws of this State to drive vehicles of the class of the
13    shared vehicle.
14    (b) A car-sharing program shall keep a record of:
15        (1) the name and address of the shared-vehicle driver;
16        (2) the number of the driver's license of the
17    shared-vehicle driver and each other person, if any, who
18    will operate the shared vehicle; and
19        (3) the place of issuance of the driver's license.
 
20    Section 60. Responsibility for equipment. A car-sharing
21program shall have sole responsibility for any equipment, such
22as a GPS system or other special equipment, that is put in or
23on the vehicle to monitor or facilitate the car-sharing
24transaction, and shall agree to indemnify and hold harmless the
25vehicle owner for any damage to or theft of such equipment

 

 

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1during the car-sharing period not caused by the vehicle owner.
2The car-sharing program has the right to seek indemnity from
3the shared-vehicle driver for any loss or damage to such
4equipment that occurs during the car-sharing period.
 
5    Section 65. Automobile safety recalls.
6    (a) At the time a vehicle owner registers as a
7shared-vehicle owner on a car-sharing program and before the
8time the shared-vehicle owner makes a shared vehicle available
9for car sharing on the car-sharing program, the car-sharing
10program shall:
11        (1) verify that the shared vehicle does not have any
12    safety recalls on the vehicle for which the repairs have
13    not been made; and
14        (2) notify the shared-vehicle owner of the
15    requirements under subsection (b).
16    (b) (1) If the shared-vehicle owner has received an actual
17notice of a safety recall on the vehicle, a shared-vehicle
18owner may not make a vehicle available as a shared vehicle on a
19car-sharing program until the safety recall repair has been
20made.
21    (2) If a shared-vehicle owner receives an actual notice of
22a safety recall on a shared vehicle while the shared vehicle is
23made available on the car-sharing program, the shared-vehicle
24owner shall remove the shared vehicle from availability on the
25car-sharing program, as soon as practicably possible after

 

 

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1receiving the notice of the safety recall and until the safety
2recall repair has been made.
3    (3) If a shared-vehicle owner receives an actual notice of
4a safety recall while the shared vehicle is being used in the
5possession of a shared-vehicle driver, as soon as practicably
6possible after receiving the notice of the safety recall, the
7shared-vehicle owner shall notify the car-sharing program
8about the safety recall so that the shared-vehicle owner may
9address the safety recall repair.
 
10    Section 99. Effective date. This Act takes effect January
111, 2022.