HB5258 94TH GENERAL ASSEMBLY

LRB094 16505 DRH 51766 b

94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
HB5258

Introduced 01/25/06, by Rep. Esther Golar - Lovana Jones

SYNOPSIS AS INTRODUCED:

625 ILCS 27/15

Amends the Renter's Financial Responsibility and Protection Act. Provides for a uniform limit on the amount per day that the renter of a vehicle may be charged for collision damage waivers (rather than providing a limit that is lower than the uniform limit amount if the rental vehicle type has a suggested retail price of $30,000 or less and a limit that is higher than the uniform limit amount if the rental vehicle type has a suggested retail price of more than $30,000). Provides for a $1 increase in the limit amount, beginning on January 1, 2008, and an additional increase of $1 on each second subsequent January 1, through January 1, 2016.

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 Renter's Financial Responsibility and Protection Act is amended by changing Section 15 as follows:

(625 ILCS 27/15)

Sec. 15. Prohibited practices.

(a) A rental company may not sell a damage waiver unless the renter agrees to the damage waiver in writing at or prior to the time the rental agreement is executed.

(b) A rental company may not void a damage waiver except for one or more of the following reasons:

(1) Damage or loss while the rental vehicle is used to carry persons or property for a charge or fee.

(2) Damage or loss during an organized or agreed upon racing or speed contest or demonstration or pushing or pulling activity in which the rental vehicle is actively involved.

(3) Damage or loss that could reasonably be expected from an intentional or criminal act of the driver other than a traffic infraction.

(4) Damage or loss to any rental vehicle resulting from any auto business operation, including but not limited to repairing, servicing, testing, washing, parking, storing, or selling of automobiles.

(5) Damage or loss occurring to a rental vehicle if the rental contract is based on fraudulent or material misrepresentation by the renter.

(6) Damage or loss arising out of the use of the rental vehicle outside the continental United States when such use is specifically prohibited in the rental agreement.

(7) Damage or loss occurring while the rental vehicle is operated by a driver not permitted under the rental agreement.

(8) Damage or loss occurring while the rental vehicle is operated by a driver under the influence of alcohol, other drug or drugs, intoxicating compound or compounds, or any combination thereof and convicted of violating subsection (a) of Section 11-501 of the Illinois Vehicle Code.

(c) A rental company shall not charge more than $12.50 $9 per full or partial 24 hour rental day for a collision damage waiver. On January 1, 2008, the maximum charges allowed under this subsection (c) shall be increased to $13.50 and shall be subsequently increased to $14.50 on January 1, 2010, $15.50 on January 1, 2012, $16.50 on January 1, 2014, and $17.50 on January 1, 2016. if the manufacturer's suggested retail price of the rental vehicle type is not greater than $30,000. A rental company shall not charge more than $12 per full or partial 24 hour rental day for a collision damage waiver if the manufacturer's suggested retail price of the rental vehicle type is greater than $30,000. On January 1, 2000, the maximum charges in this subsection (c) shall be increased to $9.50 and $12.50, respectively, and shall be subsequently increased to $10 and $13 on January 1, 2001 and $10.50 and $13.50 on January 1, 2002.

(Source: P.A. 94-332, eff. 1-1-06.)