HB3289 104TH GENERAL ASSEMBLY

LRB104 10965 LNS 21047 b

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB3289

Introduced 2/18/2025, by Rep. Marcus C. Evans, Jr.

SYNOPSIS AS INTRODUCED:

625 ILCS 5/12-707.01	from Ch. 95 1/2, par. 12-707.01
625 ILCS 5/13-101.2 new

Amends the Illinois Vehicle Code. Requires the Secretary of State to compile each form and proof of insurance submitted by each owner of any school bus, first division vehicle, owned by or used for hire by and in connection with the operation of private or public schools, day camps, summer camps, or nursery schools in a database and shall update the database on an annual basis. Requires the Department of Transportation to collect and maintain each certificate of safety from every school bus, first division vehicle. Requires the Department to develop and maintain a database of every school bus, first division vehicle that has contracted with any elementary or secondary school in the State for any transportation services.

A BILL FOR

AN ACT concerning transportation.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Illinois Vehicle Code is amended by changing Section 12-707.01 and by adding Section 13-101.2 as follows:

(625 ILCS 5/12-707.01) (from Ch. 95 1/2, par. 12-707.01)

Sec. 12-707.01. Liability insurance.

(a) No school bus, first division vehicle including a taxi which is used for a purpose that requires a school bus driver permit, commuter van or motor vehicle owned by or used for hire by and in connection with the operation of private or public schools, day camps, summer camps or nursery schools, and no commuter van or passenger car used for a for-profit ridesharing arrangement, shall be operated for such purposes unless the owner thereof shall carry a minimum of personal injury liability insurance in the amount of $25,000 for any one person in any one crash, and subject to the limit for one person, $100,000 for two or more persons injured by reason of the operation of the vehicle in any one crash. This subsection (a) applies only to personal injury liability policies issued or renewed before January 1, 2013.

(b) Liability insurance policies issued or renewed on and after January 1, 2013 shall comply with the following:

(1) except as provided in subparagraph (2) of this subsection (b), any vehicle that is used for a purpose that requires a school bus driver permit under Section 6-104 of this Code shall carry a minimum of liability insurance in the amount of $2,000,000. This minimum insurance requirement may be satisfied by either (i) a $2,000,000 combined single limit primary commercial automobile policy; or (ii) a $1 million primary commercial automobile policy and a minimum $5,000,000 excess or umbrella liability policy;

(2) any vehicle that is used for a purpose that requires a school bus driver permit under Section 6-104 of this Code and is used in connection with the operation of private day care facilities, day camps, summer camps, or nursery schools shall carry a minimum of liability insurance in the amount of $1,000,000 combined single limit per crash;

(3) any commuter van or passenger car used for a for-profit ridesharing arrangement shall carry a minimum of liability insurance in the amount of $500,000 combined single limit per crash.

(c) Primary insurance coverage under the provisions of this Section must be provided by a licensed and admitted insurance carrier or an intergovernmental cooperative formed under Section 10 of Article VII of the Illinois Constitution, or Section 6 or 9 of the Intergovernmental Cooperation Act, or provided by a certified self-insurer under Section 7-502 of this Code. The excess or umbrella liability coverage requirement may be met by securing surplus line insurance as defined under Section 445 of the Illinois Insurance Code. If the excess or umbrella liability coverage requirement is met by securing surplus line insurance, that coverage must be effected through a licensed surplus line producer acting under the surplus line insurance laws and regulations of this State. Nothing in this subsection (c) shall be construed as prohibiting a licensed and admitted insurance carrier or an intergovernmental cooperative formed under Section 10 of Article VII of the Illinois Constitution, or Section 6 or 9 of the Intergovernmental Cooperation Act, or a certified self-insurer under Section 7-502 of this Code, from retaining the risk required under paragraphs (1) and (2) of subsection (b) of this Section or issuing a single primary policy meeting the requirements of paragraphs (1) and (2) of subsection (b).

(d) Each owner of a vehicle required to obtain the minimum liability requirements under subsection (b) of this Section shall attest that the vehicle meets the minimum insurance requirements under this Section. The Secretary of State shall create a form for each owner of a vehicle to attest that the owner meets the minimum insurance requirements and the owner of the vehicle shall submit the form and proof of insurance with each registration application. The form shall be valid for the full registration period; however, if at any time the Secretary has reason to believe that the owner does not have the minimum required amount of insurance for a vehicle, then the Secretary may require a certificate of insurance, or its equivalent, to ensure the vehicle is insured. If the owner fails to produce a certificate of insurance, or its equivalent, within 2 calendar days after the request was made, then the Secretary may revoke the vehicle owner's registration until the Secretary is assured the vehicle meets the minimum insurance requirements. If the owner of a vehicle participates in an intergovernmental cooperative or is self-insured, then the owner shall attest that the insurance required under this Section is equivalent to or greater than the insurance required under paragraph (1) of subsection (b) of this Section. The Secretary may adopt any rules necessary to enforce the provisions of this subsection (d).

(e) The Secretary shall compile each form and proof of insurance submitted under subsection (d) by each owner of any school bus, first division vehicle, including a taxi which is used for a purpose that requires a school bus driver permit, commuter van, or motor vehicle, owned by or used for hire by and in connection with the operation of private or public schools, day camps, summer camps, or nursery schools in a database and shall update the database on an annual basis. The Secretary shall coordinate with the Department in the development and maintenance of such database. The Secretary shall be responsible for maintaining the following information, at a minimum, in the database:

(1) the name and address of each owner or operator of each vehicle identified under this subsection;

(2) the amount of liability insurance obtained per vehicle identified under this subsection;

(3) the date on which the materials under subsection (d) were submitted;

(4) the date of expiration of each vehicle's liability insurance; and

(5) the school or other entity contracting with the owner or operator of each vehicle identified under this subsection.

(Source: P.A. 102-982, eff. 7-1-23.)

(625 ILCS 5/13-101.2 new)

Sec. 13-101.2. School bus inspection database.

(a) The Department shall collect and maintain each certificate of safety, issued pursuant to Section 13-101, from every school bus, first division vehicle, including a taxi which is used for a purpose that requires a school bus driver permit, and a multifunction school-activity bus that has contracted with any elementary or secondary school in the State for any transportation services.

(b) The Department shall, in coordination with the Secretary of State pursuant to subsection (e) of Section 12-707.01, develop and maintain a database of every school bus, first division vehicle, including a taxi which is used for a purpose that requires a school bus driver permit and a multifunction school-activity bus that has contracted with any elementary or secondary school in the State for any transportation services.

(c) The Department shall be responsible for maintaining the following information, at a minimum, in the database:

(1) the name and address of each owner or operator of each vehicle identified under subsection (a);

(2) the license plate number for each vehicle identified under subsection (a);

(3) the most recent date of inspection for each vehicle identified under subsection (a);

(4) the mileage of each vehicle, as identified under subsection (a), on the date of inspection;

(5) the expected expiration date of inspection, which shall be 6 months following the information in paragraph (3);

(6) the mileage that would require a vehicle to undergo subsequent inspection, which shall be 10,000 miles after the mileage indicated under paragraph (4); and

(7) the name of the school contracting with each owner or operator of any vehicle, as identified under subsection (a), for any transportation services.