Illinois General Assembly - Full Text of SB2641
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Full Text of SB2641  100th General Assembly

SB2641enr 100TH GENERAL ASSEMBLY

  
  
  

 


 
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1    AN ACT concerning transportation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Automobile Renting Occupation and Use Tax
5Act is amended by changing Section 2 as follows:
 
6    (35 ILCS 155/2)  (from Ch. 120, par. 1702)
7    Sec. 2. Definitions. "Renting" means any transfer of the
8possession or right to possession of an automobile to a user
9for a valuable consideration for a period of one year or less,
10including the facilitation of a privately-owned passenger
11motor vehicle for use by persons other than the vehicle's
12registered owner as an part of a car facilitation transaction,
13as defined in Section 1-110.06 of the Illinois Vehicle Code.
14    "Renting" does not include making a charge for the use of
15an automobile where the rentor, either himself or through an
16agent, furnishes a service of operating an automobile so that
17the rentor remains in possession of the automobile, because
18this does not constitute a transfer of possession or right to
19possession of the automobile.
20    "Renting" does not include the making of a charge by an
21automobile dealer for the use of an automobile as a
22demonstrator in connection with the dealer's business of
23selling, where the charge is merely made to recover the costs

 

 

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1of operating the automobile as a demonstrator and is not
2intended as a rental or leasing charge in the ordinary sense.
3    "Automobile" means (1) any motor vehicle of the first
4division, or (2) a motor vehicle of the second division which:
5(A) is a self-contained motor vehicle designed or permanently
6converted to provide living quarters for recreational, camping
7or travel use, with direct walk through access to the living
8quarters from the driver's seat; (B) is of the van
9configuration designed for the transportation of not less than
107 nor more than 16 passengers, as defined in Section 1-146 of
11the Illinois Vehicle Code; or (C) has a Gross Vehicle Weight
12Rating, as defined in Section 1-124.5 of the Illinois Vehicle
13Code, of 8,000 pounds or less.
14    "Department" means the Department of Revenue.
15    "Person" means any natural individual, firm, partnership,
16association, joint stock company, joint adventure, public or
17private corporation, limited liability company, or a receiver,
18executor, trustee, conservator or other representative
19appointed by order of any court.
20    "Rentor" means any person, firm, corporation or
21association engaged in the business of renting or leasing
22automobiles to users. For this purpose, the objective of making
23a profit is not necessary to make the renting activity a
24business.
25    "Rentee" means any user to whom the possession, or the
26right to possession, of an automobile is transferred for a

 

 

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1valuable consideration for a period of one year or less,
2whether paid for by the "rentee" or by someone else.
3    "Gross receipts" from the renting of tangible personal
4property or "rent" means the total rental price or leasing
5price. In the case of rental transactions in which the
6consideration is paid to the rentor on an installment basis,
7the amounts of such payments shall be included by the rentor in
8gross receipts or rent only as and when payments are received
9by the rentor.
10    "Gross receipts" does not include receipts received by an
11automobile dealer from a manufacturer or service contract
12provider for the use of an automobile by a person while that
13person's automobile is being repaired by that automobile dealer
14and the repair is made pursuant to a manufacturer's warranty or
15a service contract where a manufacturer or service contract
16provider reimburses that automobile dealer pursuant to a
17manufacturer's warranty or a service contract and the
18reimbursement is merely made to recover the costs of operating
19the automobile as a loaner vehicle.
20    "Rental price" means the consideration for renting or
21leasing an automobile valued in money, whether received in
22money or otherwise, including cash credits, property and
23services, and shall be determined without any deduction on
24account of the cost of the property rented, the cost of
25materials used, labor or service cost, or any other expense
26whatsoever, but does not include charges that are added by a

 

 

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1rentor on account of the rentor's tax liability under this Act
2or on account of the rentor's duty to collect, from the rentee,
3the tax that is imposed by Section 4 of this Act. The phrase
4"rental price" does not include compensation paid to a rentor
5by a rentee in consideration of the waiver by the rentor of any
6right of action or claim against the rentee for loss or damage
7to the automobile rented and also does not include a separately
8stated charge for insurance or recovery of refueling costs or
9other separately stated charges that are not for the use of
10tangible personal property.
11(Source: P.A. 98-574, eff. 1-1-14.)
 
12    Section 10. The Counties Code is amended by changing
13Section 5-1032 as follows:
 
14    (55 ILCS 5/5-1032)  (from Ch. 34, par. 5-1032)
15    Sec. 5-1032. County Automobile Renting Occupation Tax. The
16corporate authorities of a county may impose a tax upon all
17persons engaged in the business of renting automobiles in the
18county, but outside any municipality, at the rate of not to
19exceed 1% of the gross receipts from such business. For the
20purposes of imposing a tax under this Section, the facilitation
21of a privately-owned passenger motor vehicle for use by a
22person other than the vehicle's registered owner as a part of a
23car facilitation transaction, as defined in Section 1-110.06 of
24the Illinois Vehicle Code, constitutes engaging in the business

 

 

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1of renting automobiles in the county. The tax imposed by a
2county pursuant to this Section and all civil penalties that
3may be assessed as an Incident thereof shall be collected and
4enforced by the State Department of Revenue. The certificate of
5registration which is issued by the Department to a retailer
6under the "Retailers' Occupation Tax Act", approved June 23,
71933, as amended, or under the "Automobile Renting Occupation
8and Use Tax Act", enacted by the Eighty-Second General
9Assembly, shall permit such person to engage in a business
10which is taxable under any ordinance or resolution enacted
11pursuant to this Section without registering separately with
12the Department under such ordinance or resolution or under this
13Section. The Department shall have full power to administer and
14enforce this Section; to collect all taxes and penalties due
15hereunder; to dispose of taxes and penalties so collected in
16the manner hereinafter provided, and to determine all rights to
17credit memoranda, arising on account of the erroneous payment
18of tax or penalty hereunder. In the administration of, and
19compliance with, this Section, the Department and persons who
20are subject to this Section shall have the same rights,
21remedies, privileges, immunities, powers and duties, and be
22subject to the same conditions, restrictions, limitations,
23penalties and definitions of terms, and employ the same modes
24of procedure, as are prescribed in Sections 2 and 3 (in respect
25to all provisions therein other than the State rate of tax; and
26with relation to the provisions of the "Retailers' Occupation

 

 

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1Tax" referred to therein, except as to the disposition of taxes
2and penalties collected, and except for the provision allowing
3retailers a deduction from the tax to cover certain costs, and
4except that credit memoranda issued hereunder may not be used
5to discharge any State tax liability) of the "Automobile
6Renting Occupation and Use Tax Act", as the same are now or may
7hereafter be amended, as fully as if provisions contained in
8those Sections of said Act were set forth herein.
9    Persons subject to any tax imposed pursuant to the
10authority granted in this Section may reimburse themselves for
11their tax liability hereunder by separately stating such tax as
12an additional charge, which charge may be stated in
13combination, in a single amount, with State tax which sellers
14are required to collect under the "Automobile Renting
15Occupation and Use Tax Act" pursuant to such bracket schedules
16as the Department may prescribe.
17    Whenever the Department determines that a refund should be
18made under this Section to a claimant instead of issuing a
19credit memorandum, the Department shall notify the State
20Comptroller, who shall cause the order to be drawn for the
21amount specified, and to the person named, in such notification
22from the Department. Such refund shall be paid by the State
23Treasurer out of the county automobile renting tax fund.
24    The Department shall forthwith pay over to the State
25Treasurer, ex-officio, as trustee, all taxes and penalties
26collected hereunder. On or before the 25th day of each calendar

 

 

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1month, the Department shall prepare and certify to the
2Comptroller the disbursement of stated sums of money to named
3counties from which rentors have paid taxes or penalties
4hereunder to the Department during the second preceding
5calendar month. The amount to be paid to each county shall be
6the amount (not including credit memoranda) collected
7hereunder during the second preceding calendar month by the
8Department, and not including an amount equal to the amount of
9refunds made during the second preceding calendar month by the
10Department on behalf of such county, less 2% of such balance,
11which sum shall be retained by the State Treasurer to cover the
12costs incurred by the Department in administering and enforcing
13this Section as provided herein. The Department at the time of
14each monthly disbursement to the counties shall prepare and
15certify to the Comptroller the amount, so retained by the State
16Treasurer, to be paid into the General Revenue Fund of the
17State Treasury. Within 10 days after receipt, by the
18Comptroller, of the disbursement certification to the counties
19and the General Revenue Fund, provided for in this Section to
20be given to the Comptroller by the Department, the Comptroller
21shall cause the orders to be drawn for the respective amounts
22in accordance with the directions contained in such
23certification.
24    Nothing in this Section shall be construed to authorize a
25county to impose a tax upon the privilege of engaging in any
26business which under the constitution of the United States may

 

 

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1not be made the subject of taxation by this State.
2    An ordinance or resolution imposing a tax hereunder or
3effecting a change in the rate thereof shall be effective on
4the first day of the calendar month next following the month in
5which such ordinance or resolution is passed. The corporate
6authorities of any county which levies a tax authorized by this
7Section shall transmit to the Department of Revenue on or not
8later than 5 days after passage of the ordinance or resolution
9a certified copy of the ordinance or resolution imposing such
10tax whereupon the Department of Revenue shall proceed to
11administer and enforce this Section on behalf of such county as
12of the effective date of the ordinance or resolution. Upon a
13change in rate of a tax levied hereunder, or upon the
14discontinuance of the tax, the corporate authorities of the
15county shall on or not later than 5 days after passage of the
16ordinance or resolution discontinuing the tax or effecting a
17change in rate transmit to the Department of Revenue a
18certified copy of the ordinance or resolution effecting such
19change or discontinuance.
20    The Department of Revenue must upon the request of the
21County Clerk or County Board submit to a county a list of those
22persons who are registered with the Department to pay
23automobile renting occupation tax within the unincorporated
24area of that governmental unit. This list shall contain only
25the names of persons who have paid the tax and not the amount
26of tax paid by such person.

 

 

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1    This Section shall be known and may be cited as the "County
2Automobile Renting Occupation Tax Law".
3(Source: P.A. 86-962.)
 
4    Section 15. The Illinois Municipal Code is amended by
5changing Section 8-11-7 as follows:
 
6    (65 ILCS 5/8-11-7)  (from Ch. 24, par. 8-11-7)
7    Sec. 8-11-7. The corporate authorities of a municipality
8may impose a tax upon all persons engaged in the business of
9renting automobiles in the municipality at the rate of not to
10exceed 1% of the gross receipts from such business. For the
11purposes of imposing a tax under this Section, the facilitation
12of a privately-owned passenger motor vehicle for use by a
13person other than the vehicle's registered owner as a part of a
14car facilitation transaction, as defined in Section 1-110.06 of
15the Illinois Vehicle Code, constitutes engaging in the business
16of renting automobiles in the municipality. The tax imposed by
17a municipality pursuant to this Section and all civil penalties
18that may be assessed as an incident thereof shall be collected
19and enforced by the State Department of Revenue. The
20certificate of registration which is issued by the Department
21to a retailer under the Retailers' Occupation Tax Act or under
22the Automobile Renting Occupation and Use Tax Act shall permit
23such person to engage in a business which is taxable under any
24ordinance or resolution enacted pursuant to this Section

 

 

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1without registering separately with the Department under such
2ordinance or resolution or under this Section. The Department
3shall have full power to administer and enforce this Section;
4to collect all taxes and penalties due hereunder; to dispose of
5taxes and penalties so collected in the manner hereinafter
6provided; and to determine all rights to credit memoranda,
7arising on account of the erroneous payment of tax or penalty
8hereunder. In the administration of, and compliance with, this
9Section, the Department and persons who are subject to this
10Section shall have the same rights, remedies, privileges,
11immunities, powers and duties, and be subject to the same
12conditions, restrictions, limitations, penalties and
13definitions of terms, and employ the same modes of procedure,
14as are prescribed in Sections 2 and 3 (in respect to all
15provisions therein other than the State rate of tax; and with
16relation to the provisions of the "Retailers' Occupation Tax"
17referred to therein, except as to the disposition of taxes and
18penalties collected, and except for the provision allowing
19retailers a deduction from the tax to cover certain costs, and
20except that credit memoranda issued hereunder may not be used
21to discharge any State tax liability) of the Automobile Renting
22Occupation and Use Tax Act, as fully as if those provisions
23were set forth herein.
24    Persons subject to any tax imposed pursuant to the
25authority granted in this Section may reimburse themselves for
26their tax liability hereunder by separately stating such tax as

 

 

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1an additional charge, which charge may be stated in
2combination, in a single amount, with State tax which sellers
3are required to collect under the Automobile Renting Occupation
4and Use Tax Act pursuant to such bracket schedules as the
5Department may prescribe.
6    Whenever the Department determines that a refund should be
7made under this Section to a claimant instead of issuing a
8credit memorandum, the Department shall notify the State
9Comptroller, who shall cause the order to be drawn for the
10amount specified, and to the person named, in such notification
11from the Department. Such refund shall be paid by the State
12Treasurer out of the municipal automobile renting tax fund.
13    The Department shall forthwith pay over to the State
14Treasurer, ex-officio, as trustee, all taxes and penalties
15collected hereunder. On or before the 25th day of each calendar
16month, the Department shall prepare and certify to the
17Comptroller the disbursement of stated sums of money to named
18municipalities, the municipalities to be those from which
19rentors have paid taxes or penalties hereunder to the
20Department during the second preceding calendar month. The
21amount to be paid to each municipality shall be the amount (not
22including credit memoranda) collected hereunder during the
23second preceding calendar month by the Department, and not
24including an amount equal to the amount of refunds made during
25the second preceding calendar month by the Department on behalf
26of such municipality, less 1.6% of such balance, which sum

 

 

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1shall be retained by the State Treasurer to cover the costs
2incurred by the Department in administering and enforcing this
3Section as provided herein. The Department at the time of each
4monthly disbursement to the municipalities shall prepare and
5certify to the Comptroller the amount, so retained by the State
6Treasurer, to be paid into the General Revenue Fund of the
7State Treasury. Within 10 days after receipt, by the
8Comptroller, of the disbursement certification to the
9municipalities and the General Revenue Fund, provided for in
10this Section to be given to the Comptroller by the Department,
11the Comptroller shall cause the orders to be drawn for the
12respective amounts in accordance with the directions contained
13in such certification.
14    Nothing in this Section shall be construed to authorize a
15municipality to impose a tax upon the privilege of engaging in
16any business which under the Constitution of the United States
17may not be made the subject of taxation by this State.
18    An ordinance or resolution imposing a tax hereunder or
19effecting a change in the rate thereof shall be effective on
20the first day of the calendar month next following publication
21as provided in Section 1-2-4. The corporate authorities of any
22municipality which levies a tax authorized by this Section
23shall transmit to the Department of Revenue on or not later
24than 5 days after publication a certified copy of the ordinance
25or resolution imposing such tax whereupon the Department of
26Revenue shall proceed to administer and enforce this Section on

 

 

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1behalf of such municipality as of the effective date of the
2ordinance or resolution. Upon a change in rate of a tax levied
3hereunder, or upon the discontinuance of the tax, the corporate
4authorities of the municipality shall on or not later than 5
5days after publication of the ordinance or resolution
6discontinuing the tax or effecting a change in rate transmit to
7the Department of Revenue a certified copy of the ordinance or
8resolution effecting such change or discontinuance.
9    The Department of Revenue must upon the request of the
10municipal clerk, city council or village board of trustees
11submit to a city, village or incorporated town a list of those
12persons who are registered with the Department to pay
13automobile renting occupation tax within that governmental
14unit. This list shall contain only the names of persons who
15have paid the tax and not the amount of tax paid by such
16person.
17    As used in this Section, "municipal" and "municipality"
18means a city, village or incorporated town, including an
19incorporated town which has superseded a civil township.
20    This Section shall be known and may be cited as the
21"Municipal Automobile Renting Occupation Tax Act".
22(Source: P.A. 86-1475.)
 
23    Section 20. The Illinois Vehicle Code is amended by
24changing Sections 6-305.3 and 9-101 and by adding Sections
251-110.05, 1-110.06, 1-146.7, and 1-171.01e as follows:
 

 

 

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1    (625 ILCS 5/1-110.05 new)
2    Sec. 1-110.05. Car facilitation company. A legal entity
3qualified to do business in this State engaged in the business
4of facilitating the use, rental, or sharing of privately-owned
5passenger motor vehicles for noncommercial use by individuals
6within this State. "Car facilitation company" does not include
7the registered owner of the vehicle involved in a car
8facilitation transaction facilitated by a car facilitation
9company.
 
10    (625 ILCS 5/1-110.06 new)
11    Sec. 1-110.06. Car facilitation transaction. The use of a
12privately-owned passenger motor vehicle by a person other than
13the vehicle's registered owner as facilitated by a car
14facilitation company.
 
15    (625 ILCS 5/1-146.7 new)
16    Sec. 1-146.7. Motor vehicle rental company. Any person or
17entity whose primary business is renting motor vehicles to the
18public for 30 days or less, including a car facilitation
19company as defined in Section 1-110.05. "Motor vehicle rental
20company" also includes a rental car company, rental car agency,
21automobile rental company, vehicle rental company, rental
22owner, or any other similar entity that engages in the rental
23of motor vehicles to the public.
 

 

 

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1    (625 ILCS 5/1-171.01e new)
2    Sec. 1-171.01e. Rental agreement. An agreement for 30 days
3or less setting forth the terms and conditions governing the
4use of a motor vehicle provided by a motor vehicle rental
5company.
 
6    (625 ILCS 5/6-305.3)
7    Sec. 6-305.3. Vehicle license cost recovery fee.
8    (a) As used in this Section:
9    "Motor vehicle rental company" has the meaning ascribed to
10it in Section 1-146.7 of this Code means a person or entity
11whose primary business is renting motor vehicles to the public
12for 30 days or less.
13    "Inspect" or "inspection" means a vehicle emissions
14inspection under Chapter 13C of this Code.
15    "Rental agreement" has the meaning ascribed to it in
16Section 1-171.01e of this Code means an agreement for 30 days
17or less setting forth the terms and conditions governing the
18use of a motor vehicle provided by a rental company.
19    "Motor vehicle" means motor vehicles of the first division
20and motor vehicles of the second division weighing not more
21than 8,000 pounds.
22    "Vehicle license cost recovery fee" or "VLCRF" means a
23charge that may be separately stated and charged on a rental
24agreement in a vehicle rental transaction originating in

 

 

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1Illinois to recover costs incurred either directly or
2indirectly by a motor vehicle rental company to license, title,
3register, and inspect motor vehicles.
4    (b) Motor vehicle rental companies may include a separately
5stated mandatory surcharge or fee in a rental agreement for
6vehicle license cost recovery fees (VLCRF) and all applicable
7taxes.
8    (c) If a motor vehicle rental company includes a VLCRF as
9separately stated charge in a rental agreement, the amount of
10the fee must represent the motor vehicle rental company's
11good-faith estimate of the automobile rental company's daily
12charge as calculated by the motor vehicle rental company to
13recover its actual total annual motor vehicle titling,
14registration, and inspection costs.
15    (d) If the total amount of the VLCRF collected by a motor
16vehicle rental company under this Section in any calendar year
17exceeds the motor vehicle rental company's actual costs to
18license, title, register, and inspect for that calendar year,
19the motor vehicle rental company shall do both of the
20following:
21        (1) Retain the excess amount; and
22        (2) Adjust the estimated average per vehicle titling,
23    licensing, inspection, and registration charge for the
24    following calendar year by a corresponding amount.
25    (e) Nothing in subsection (d) of this Section shall prevent
26a motor vehicle rental company from making adjustments to the

 

 

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1VLCRF during the calendar year.
2(Source: P.A. 96-37, eff. 7-13-09; 97-595, eff. 8-26-11.)
 
3    (625 ILCS 5/9-101)  (from Ch. 95 1/2, par. 9-101)
4    Sec. 9-101. Owner of for-rent motor vehicle to give proof
5of financial responsibility. For purposes of this Chapter, "for
6rent" means any transfer of the possession of or right to
7possession of a motor vehicle to a user for a valuable
8consideration for a period of less than one year, and "to
9lease" means any transfer of the possession of or right to
10possession of a motor vehicle to a user for a period of one
11year or more. It is unlawful for the owner of any motor vehicle
12to engage in the business, or to hold himself out to the public
13generally as being engaged in the business of renting out such
14motor vehicle to be operated by the customer, unless the owner
15has given, and there is in full force and effect and on file
16with the Secretary of State proof of financial responsibility
17as hereinafter provided. For the purposes of this Section, the
18facilitation of a privately-owned passenger motor vehicle for
19use by a person other than the vehicle's registered owner as a
20part of a car facilitation transaction shall constitute
21engaging in the business of renting out motor vehicles in this
22State. For the purposes of providing proof of financial
23responsibility under this Section, a car facilitation company
24shall be considered the owner of the vehicle and financially
25responsible for that vehicle at any time the vehicle is used in

 

 

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1a car facilitation transaction facilitated by that company and
2under the operation and control of a person other than the
3vehicle's registered owner. The delivery of a vehicle owned by
4an out of State person or business to a renter in this State
5shall constitute engaging in the rental business in this State
6for purposes of this Section.
7    All owners of motor vehicles which are leased for a period
8of one year or more are not required to provide proof of
9insurance as required under this chapter, but instead must
10comply with Section 7-601 of this Code and obtain vehicle
11insurance in amounts no less than the minimum amount set for
12bodily injury or death and for destruction of property pursuant
13to Section 7-203 of this Code.
14(Source: P.A. 86-880; 87-1220.)
 
15    Section 25. The Automated Traffic Control Systems in
16Highway Construction or Maintenance Zones Act is amended by
17changing Section 45 as follows:
 
18    (625 ILCS 7/45)
19    Sec. 45. Vehicle rental or leasing company's
20identification of a renter or lessee.
21    (a) A Uniform Traffic Citation issued under this Act to a
22motor vehicle rental or leasing company shall be dismissed with
23respect to the rental or leasing company if:
24        (1) the company responds to the Uniform Traffic

 

 

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1    Citation by submitting, within 30 days of the mailing of
2    the citation, an affidavit of non-liability stating that,
3    at the time of the alleged speeding or other traffic
4    violation, the vehicle was in the custody and control of a
5    renter or lessee under the terms of a rental agreement or
6    lease; and
7        (2) the company provides the driver's license number,
8    name, and address of the renter or lessee.
9    (a-5) A Uniform Traffic Citation issued under this Act to
10the registered owner of a vehicle used in a car facilitation
11transaction, as defined in Section 1-110.06 of the Illinois
12Vehicle Code, shall be dismissed with respect to the registered
13owner if:
14        (1) the registered owner responds to the Uniform
15    Traffic Citation by submitting, within 30 days of the
16    mailing of the citation, an affidavit of non-liability
17    stating that, at the time of the alleged speeding or other
18    traffic violation, the vehicle was under the operation and
19    control of a person other than the vehicle's registered
20    owner under a car facilitation transaction facilitated by a
21    car facilitation company; and
22        (2) the registered owner provides proof of the
23    transaction facilitated by the car facilitation company
24    between the registered owner of the vehicle and the driver
25    of the vehicle during the alleged violation.
26    (b) A Uniform Traffic Citation dismissed with respect to a

 

 

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1motor vehicle rental or leasing company in accordance with
2subsection (a) may then be issued and delivered by mail or
3other means to the renter or lessee identified in the affidavit
4of non-liability.
5(Source: P.A. 93-947, eff. 8-19-04.)
 
6    Section 30. The Renter's Financial Responsibility and
7Protection Act is amended by changing Section 10 and by adding
8Section 30 as follows:
 
9    (625 ILCS 27/10)
10    Sec. 10. Definitions. As used in this Act:
11    "Car facilitation company" means a legal entity qualified
12to do business in this State engaged in the business of
13facilitating the use, rental, or sharing of privately-owned
14passenger motor vehicles for noncommercial use by individuals
15within this State. "Car facilitation company" does not include
16the registered owner of the vehicle facilitated by a car
17facilitation company for the purpose of car facilitation.
18    "Car facilitation transaction" means the use of a
19privately-owned passenger motor vehicle by a person other than
20the vehicle's registered owner as facilitated by a car
21facilitation company.
22    "Rental Company" means a person or entity that rents
23private passenger vehicles to the public for 30 days or less.
24"Rental company" includes a car facilitation company.

 

 

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1    "Renter" means a person or entity that obtains the use of a
2private passenger vehicle from a rental company under terms of
3a rental agreement.
4    "Rental Agreement" means an agreement for 30 days or less
5setting forth the terms and conditions governing the use of a
6private passenger vehicle provided by a rental company.
7    "Authorized Driver" means: the renter; the renter's spouse
8if the spouse is a licensed driver and satisfies the rental
9company's minimum age requirement; the renter's employer,
10employee, or co-worker if that person is a licensed driver,
11satisfies the rental company's minimum age requirement, and at
12the time of the rental is engaged in a business activity with
13the renter; any person who is expressly listed by the rental
14company on the rental agreement as an authorized driver; and
15any person driving directly to a medical or police facility
16under circumstances reasonably believed to constitute an
17emergency and who is a licensed driver.
18    "Damage Waiver" means a rental company's agreement not to
19hold an authorized driver liable for all or a part of any
20damage to or loss of a rented vehicle for which the renter may
21be liable pursuant to Section 6-305.2. "Damage Waiver" shall
22encompass within its meaning other similar terms used by rental
23companies, such as "Collision Damage Waiver", "Loss Damage
24Waiver", "Physical Damage Waiver", and the like.
25(Source: P.A. 90-113, eff. 7-14-97.)
 

 

 

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1    (625 ILCS 27/30 new)
2    Sec. 30. Car facilitation company obligations and
3liability.
4    (a) Notwithstanding any provision to the contrary, a rental
5company that is a car facilitation company shall, when
6applicable, be subject to the statutory and regulatory
7obligations pertaining to all motor vehicle rental companies.
8    (b) If any loss or injury occurs at any time a vehicle is
9under the operation and control of a person other than the
10vehicle's registered owner under a car facilitation
11transaction facilitated by a car facilitation company, the
12company shall assume all liability of the registered owner of
13the vehicle used in the car facilitation transaction and shall
14be considered the vehicle's owner for all purposes.
15    (c) A car facilitation company continues to be liable under
16subsection (b) of this Section until the vehicle is returned to
17a location designated by the company, and one of the following
18occur:
19        (1) the expiration of the car facilitation period
20    established for the vehicle occurs;
21        (2) the intent to terminate the vehicle's car
22    facilitation transaction is verifiably communicated to the
23    company; or
24        (3) the vehicle's registered owner takes possession
25    and control of the vehicle.
26    If any loss giving rise to a claim occurs, the car

 

 

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1facilitation company shall initially assume liability for a
2claim in which a dispute exists as to who was in control of the
3vehicle and seek indemnification if it is later determined that
4the registered owner was in possession of the vehicle.
5    (d) At no time shall the registered owner of the vehicle or
6the owner's insurer be held liable for any loss, injury,
7damage, or violation involving his or her vehicle occurring
8during a car facilitation transaction unless it is shown that
9the registered owner was operating or in control of the vehicle
10at the time of the loss, injury, damage, or violation.
11    (e) Notwithstanding any provision to the contrary, for the
12purpose of the issuance of a civil penalty for a violation of
13Section 11-208.6, 11-208.8, 11-208.9, or 11-1201.1 of the
14Illinois Vehicle Code, the violation shall be dismissed with
15respect to the registered owner of the vehicle, and the car
16facilitation company shall be considered the vehicle's owner
17for purposes of violation, if:
18        (1) the registered owner responds to the citation by
19    submitting, within 30 days of the mailing of the citation,
20    an affidavit of non-liability stating that, at the time of
21    the alleged violation, the vehicle was under the operation
22    and control of a person other than the vehicle's registered
23    owner under a car facilitation transaction facilitated by a
24    car facilitation company; and
25        (2) the registered owner provides proof of the
26    transaction facilitated by the car facilitation company

 

 

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1    with the driver of his or her vehicle during the alleged
2    violation.
3    (f) Nothing in this Section shall limit the liability of
4the car facilitation company for any acts or omissions by the
5company that result in injury to any persons as a result of the
6use or operation of a vehicle during a car facilitation
7transaction.
8    (g) For the purpose of the allocation of liability for a
9private passenger vehicle used in relation to a motor vehicle
10rental company that is a car facilitation company, as defined
11in Section 1-110.05 of the Illinois Vehicle Code, the car
12facilitation company shall assume liability if any damage to
13the vehicle occurs:
14        (1) at any time when the vehicle is not in possession
15    of the vehicle's registered owner and at the car
16    facilitation company's designated location or other
17    location designated for the car facilitation transaction
18    while being made available to rent;
19        (2) under the operation and control of a person other
20    than the vehicle's registered owner under a car
21    facilitation transaction facilitated by that company; or
22        (3) at the car facilitation company's designated area
23    or other location designated for the car facilitation
24    transaction not being made available to rent, but not yet
25    in the possession of the vehicle's registered owner.
26    Nothing in this subsection (g) prevents a car facilitation

 

 

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1company from holding a renter in a car facilitation transaction
2liable to the extent permitted under this Section.
3    A car facilitation company continues to be liable under
4this subsection (g) until the end of the car facilitation
5transaction as described in subsection (c) of this Section or
6as described in this subsection (g). At no time shall the
7registered owner of the vehicle or the owner's insurer be
8liable for any exposure, including negligent entrustment, of
9the vehicle involved in a car facilitation transaction.
10    (h) Notwithstanding any other law and unless otherwise
11excluded, an owner's insurer may exclude any and all coverage
12and the duty to defend or indemnify for any claim made under a
13car facilitation transaction.
14    (i) An owner's insurer that defends or indemnifies a claim
15against its insured that is determined to be excluded under the
16terms of its policy shall have the right to seek contribution
17against the insurer of the car facilitation company, if the
18claim is:
19        (1) made against the registered owner of the vehicle or
20    renter in the car facilitation transaction for loss or
21    injury that occurs during the car facilitation
22    transaction; and
23        (2) excluded under the terms of the insurer's policy.
24    (j) Nothing in this Section invalidates or limits an
25exclusion contained in an owner's insurance policy for any
26coverage included in the policy.

 

 

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1    (k) An owner's insurer may deny issuance of, cancel, void,
2terminate, rescind, or deny renewal of an insurance policy
3covering a motor vehicle that has been made available for a car
4facilitation transaction if the applicant or policyholder of
5the insurance policy fails to provide complete and accurate
6information about the use of a motor vehicle through a car
7facilitation transaction as requested by the insurer during the
8application or renewal process of the insurance policy.
9    (l) Nothing in this Section requires any owner's insurance
10policy to:
11        (1) provide primary or excess coverage during the car
12    facilitation transaction;
13        (2) imply that any insurance policy provides coverage
14    for a motor vehicle during the car facilitation
15    transaction; or
16        (3) preclude an insurer from providing coverage for a
17    vehicle while the vehicle is made available or used through
18    a car facilitation transaction if the insurer elects to do
19    so by contract or endorsement.
20    (m) The car facilitation company shall collect and verify
21records pertaining to the use of a vehicle, including, but not
22limited to, times used, fees paid by the rentor, and revenues
23received by the vehicle owner, and provide that information
24upon request to the registered vehicle owner, the owner's
25insurer, or and the insurer of a person operating the vehicle
26during the car facilitation transaction when a claim has been

 

 

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1made against an insured involving a dispute as to whether the
2insurer's policy of the registered vehicle owner or the person
3operating the vehicle and shall retain the records for a
4reasonable period after the expiration of the applicable
5personal injury statute of limitations.
6    (n) The car facilitation company shall have sole
7responsibility for any equipment, such as a GPS system or other
8special equipment, that is put in or on the vehicle to monitor
9or facilitate the transaction, and shall agree to indemnify and
10hold harmless the vehicle owner for any damage to or theft of
11such equipment.
12    (o) The car facilitation company shall:
13        (1) verify that the registered vehicle does not have
14    any safety recalls on the vehicle for which the repairs
15    have not been made; and
16        (2) notify the owner of the registered vehicle of the
17    requirements under subsection (p) of this Section.
18    (p) If the registered vehicle owner has received an actual
19notice of a safety recall on the motor vehicle, the vehicle's
20registered owner may not make the motor vehicle available
21through the car facilitation company until the safety recall
22repair has been made.
23    If the vehicle's registered owner receives an actual notice
24of a safety recall on a registered vehicle while the registered
25vehicle is made available or in use through the car
26facilitation company, the registered vehicle owner shall

 

 

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1remove the shared motor vehicle from participation as soon as
2practicably possible, but no later than 72 hours after
3receiving the notice of the safety recall and shall not allow
4the vehicle to be used in a car facilitation transaction until
5the safety recall repair has been made.