SB2641ham001 100TH GENERAL ASSEMBLY

Rep. Arthur Turner

Filed: 5/16/2018

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 2641

2    AMENDMENT NO. ______. Amend Senate Bill 2641 by replacing
3everything after the enacting clause with the following:
 
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.
8    "Renting" means any transfer of the possession or right to
9possession of an automobile to a user for a valuable
10consideration for a period of one year or less, including the
11facilitation of a privately-owned passenger motor vehicle for
12use by persons other than the vehicle's registered owner as a
13part of a personal car facilitation transaction, as defined in
14Section 1-159.05 of the Illinois Vehicle Code.
15    "Renting" does not include making a charge for the use of
16an automobile where the rentor, either himself or through an

 

 

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1agent, furnishes a service of operating an automobile so that
2the rentor remains in possession of the automobile, because
3this does not constitute a transfer of possession or right to
4possession of the automobile.
5    "Renting" does not include the making of a charge by an
6automobile dealer for the use of an automobile as a
7demonstrator in connection with the dealer's business of
8selling, where the charge is merely made to recover the costs
9of operating the automobile as a demonstrator and is not
10intended as a rental or leasing charge in the ordinary sense.
11    "Automobile" means (1) any motor vehicle of the first
12division, or (2) a motor vehicle of the second division which:
13(A) is a self-contained motor vehicle designed or permanently
14converted to provide living quarters for recreational, camping
15or travel use, with direct walk through access to the living
16quarters from the driver's seat; (B) is of the van
17configuration designed for the transportation of not less than
187 nor more than 16 passengers, as defined in Section 1-146 of
19the Illinois Vehicle Code; or (C) has a Gross Vehicle Weight
20Rating, as defined in Section 1-124.5 of the Illinois Vehicle
21Code, of 8,000 pounds or less.
22    "Department" means the Department of Revenue.
23    "Person" means any natural individual, firm, partnership,
24association, joint stock company, joint adventure, public or
25private corporation, limited liability company, or a receiver,
26executor, trustee, conservator or other representative

 

 

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1appointed by order of any court.
2    "Rentor" means any person, firm, corporation or
3association engaged in the business of renting or leasing
4automobiles to users. For this purpose, the objective of making
5a profit is not necessary to make the renting activity a
6business.
7    "Rentee" means any user to whom the possession, or the
8right to possession, of an automobile is transferred for a
9valuable consideration for a period of one year or less,
10whether paid for by the "rentee" or by someone else.
11    "Gross receipts" from the renting of tangible personal
12property or "rent" means the total rental price or leasing
13price. In the case of rental transactions in which the
14consideration is paid to the rentor on an installment basis,
15the amounts of such payments shall be included by the rentor in
16gross receipts or rent only as and when payments are received
17by the rentor.
18    "Gross receipts" does not include receipts received by an
19automobile dealer from a manufacturer or service contract
20provider for the use of an automobile by a person while that
21person's automobile is being repaired by that automobile dealer
22and the repair is made pursuant to a manufacturer's warranty or
23a service contract where a manufacturer or service contract
24provider reimburses that automobile dealer pursuant to a
25manufacturer's warranty or a service contract and the
26reimbursement is merely made to recover the costs of operating

 

 

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1the automobile as a loaner vehicle.
2    "Rental price" means the consideration for renting or
3leasing an automobile valued in money, whether received in
4money or otherwise, including cash credits, property and
5services, and shall be determined without any deduction on
6account of the cost of the property rented, the cost of
7materials used, labor or service cost, or any other expense
8whatsoever, but does not include charges that are added by a
9rentor on account of the rentor's tax liability under this Act
10or on account of the rentor's duty to collect, from the rentee,
11the tax that is imposed by Section 4 of this Act. The phrase
12"rental price" does not include compensation paid to a rentor
13by a rentee in consideration of the waiver by the rentor of any
14right of action or claim against the rentee for loss or damage
15to the automobile rented and also does not include a separately
16stated charge for insurance or recovery of refueling costs or
17other separately stated charges that are not for the use of
18tangible personal property.
19(Source: P.A. 98-574, eff. 1-1-14.)
 
20    Section 10. The Counties Code is amended by changing
21Section 5-1032 as follows:
 
22    (55 ILCS 5/5-1032)  (from Ch. 34, par. 5-1032)
23    Sec. 5-1032. County Automobile Renting Occupation Tax. The
24corporate authorities of a county may impose a tax upon all

 

 

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1persons engaged in the business of renting automobiles in the
2county, but outside any municipality, at the rate of not to
3exceed 1% of the gross receipts from such business. For the
4purposes of imposing a tax under this Section, the facilitation
5of a privately-owned passenger motor vehicle for use by persons
6other than the vehicle's registered owner as a part of a
7personal car facilitation transaction, as defined in Section
81-159.05 of the Illinois Vehicle Code, shall constitute
9engaging in the business of renting automobiles in the county.
10The tax imposed by a county pursuant to this Section and all
11civil penalties that may be assessed as an Incident thereof
12shall be collected and enforced by the State Department of
13Revenue. The certificate of registration which is issued by the
14Department to a retailer under the "Retailers' Occupation Tax
15Act", approved June 23, 1933, as amended, or under the
16"Automobile Renting Occupation and Use Tax Act", enacted by the
17Eighty-Second General Assembly, shall permit such person to
18engage in a business which is taxable under any ordinance or
19resolution enacted pursuant to this Section without
20registering separately with the Department under such
21ordinance or resolution or under this Section. The Department
22shall have full power to administer and enforce this Section;
23to collect all taxes and penalties due hereunder; to dispose of
24taxes and penalties so collected in the manner hereinafter
25provided, and to determine all rights to credit memoranda,
26arising on account of the erroneous payment of tax or penalty

 

 

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1hereunder. In the administration of, and compliance with, this
2Section, the Department and persons who are subject to this
3Section shall have the same rights, remedies, privileges,
4immunities, powers and duties, and be subject to the same
5conditions, restrictions, limitations, penalties and
6definitions of terms, and employ the same modes of procedure,
7as are prescribed in Sections 2 and 3 (in respect to all
8provisions therein other than the State rate of tax; and with
9relation to the provisions of the "Retailers' Occupation Tax"
10referred to therein, except as to the disposition of taxes and
11penalties collected, and except for the provision allowing
12retailers a deduction from the tax to cover certain costs, and
13except that credit memoranda issued hereunder may not be used
14to discharge any State tax liability) of the "Automobile
15Renting Occupation and Use Tax Act", as the same are now or may
16hereafter be amended, as fully as if provisions contained in
17those Sections of said Act were set forth herein.
18    Persons subject to any tax imposed pursuant to the
19authority granted in this Section may reimburse themselves for
20their tax liability hereunder by separately stating such tax as
21an additional charge, which charge may be stated in
22combination, in a single amount, with State tax which sellers
23are required to collect under the "Automobile Renting
24Occupation and Use Tax Act" pursuant to such bracket schedules
25as the Department may prescribe.
26    Whenever the Department determines that a refund should be

 

 

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1made under this Section to a claimant instead of issuing a
2credit memorandum, the Department shall notify the State
3Comptroller, who shall cause the order to be drawn for the
4amount specified, and to the person named, in such notification
5from the Department. Such refund shall be paid by the State
6Treasurer out of the county automobile renting tax fund.
7    The Department shall forthwith pay over to the State
8Treasurer, ex-officio, as trustee, all taxes and penalties
9collected hereunder. On or before the 25th day of each calendar
10month, the Department shall prepare and certify to the
11Comptroller the disbursement of stated sums of money to named
12counties from which rentors have paid taxes or penalties
13hereunder to the Department during the second preceding
14calendar month. The amount to be paid to each county shall be
15the amount (not including credit memoranda) collected
16hereunder during the second preceding calendar month by the
17Department, and not including an amount equal to the amount of
18refunds made during the second preceding calendar month by the
19Department on behalf of such county, less 2% of such balance,
20which sum shall be retained by the State Treasurer to cover the
21costs incurred by the Department in administering and enforcing
22this Section as provided herein. The Department at the time of
23each monthly disbursement to the counties shall prepare and
24certify to the Comptroller the amount, so retained by the State
25Treasurer, to be paid into the General Revenue Fund of the
26State Treasury. Within 10 days after receipt, by the

 

 

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1Comptroller, of the disbursement certification to the counties
2and the General Revenue Fund, provided for in this Section to
3be given to the Comptroller by the Department, the Comptroller
4shall cause the orders to be drawn for the respective amounts
5in accordance with the directions contained in such
6certification.
7    Nothing in this Section shall be construed to authorize a
8county to impose a tax upon the privilege of engaging in any
9business which under the constitution of the United States may
10not be made the subject of taxation by this State.
11    An ordinance or resolution imposing a tax hereunder or
12effecting a change in the rate thereof shall be effective on
13the first day of the calendar month next following the month in
14which such ordinance or resolution is passed. The corporate
15authorities of any county which levies a tax authorized by this
16Section shall transmit to the Department of Revenue on or not
17later than 5 days after passage of the ordinance or resolution
18a certified copy of the ordinance or resolution imposing such
19tax whereupon the Department of Revenue shall proceed to
20administer and enforce this Section on behalf of such county as
21of the effective date of the ordinance or resolution. Upon a
22change in rate of a tax levied hereunder, or upon the
23discontinuance of the tax, the corporate authorities of the
24county shall on or not later than 5 days after passage of the
25ordinance or resolution discontinuing the tax or effecting a
26change in rate transmit to the Department of Revenue a

 

 

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1certified copy of the ordinance or resolution effecting such
2change or discontinuance.
3    The Department of Revenue must upon the request of the
4County Clerk or County Board submit to a county a list of those
5persons who are registered with the Department to pay
6automobile renting occupation tax within the unincorporated
7area of that governmental unit. This list shall contain only
8the names of persons who have paid the tax and not the amount
9of tax paid by such person.
10    This Section shall be known and may be cited as the "County
11Automobile Renting Occupation Tax Law".
12(Source: P.A. 86-962.)
 
13    Section 15. The Illinois Municipal Code is amended by
14changing Section 8-11-7 as follows:
 
15    (65 ILCS 5/8-11-7)  (from Ch. 24, par. 8-11-7)
16    Sec. 8-11-7. The corporate authorities of a municipality
17may impose a tax upon all persons engaged in the business of
18renting automobiles in the 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 persons
22other than the vehicle's registered owner as a part of a
23personal car facilitation transaction, as defined in Section
241-159.05 of the Illinois Vehicle Code, shall constitute

 

 

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1engaging in the business of renting automobiles in the
2municipality. The tax imposed by a municipality pursuant to
3this Section and all civil penalties that may be assessed as an
4incident thereof shall be collected and enforced by the State
5Department of Revenue. The certificate of registration which is
6issued by the Department to a retailer under the Retailers'
7Occupation Tax Act or under the Automobile Renting Occupation
8and Use Tax Act shall permit such person to engage in a
9business which is taxable under any ordinance or resolution
10enacted pursuant to this Section without registering
11separately with the Department under such ordinance or
12resolution or under this Section. The Department shall have
13full power to administer and enforce this Section; to collect
14all taxes and penalties due hereunder; to dispose of taxes and
15penalties so collected in the manner hereinafter provided; and
16to determine all rights to credit memoranda, arising on account
17of the erroneous payment of tax or penalty hereunder. In the
18administration of, and compliance with, this Section, the
19Department and persons who are subject to this Section shall
20have the same rights, remedies, privileges, immunities, powers
21and duties, and be subject to the same conditions,
22restrictions, limitations, penalties and definitions of terms,
23and employ the same modes of procedure, as are prescribed in
24Sections 2 and 3 (in respect to all provisions therein other
25than the State rate of tax; and with relation to the provisions
26of the "Retailers' Occupation Tax" referred to therein, except

 

 

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

 

 

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1Comptroller the disbursement of stated sums of money to named
2municipalities, the municipalities to be those from which
3rentors have paid taxes or penalties hereunder to the
4Department during the second preceding calendar month. The
5amount to be paid to each municipality shall be the amount (not
6including credit memoranda) collected hereunder during the
7second preceding calendar month by the Department, and not
8including an amount equal to the amount of refunds made during
9the second preceding calendar month by the Department on behalf
10of such municipality, less 1.6% of such balance, which sum
11shall be retained by the State Treasurer to cover the costs
12incurred by the Department in administering and enforcing this
13Section as provided herein. The Department at the time of each
14monthly disbursement to the municipalities 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
19municipalities and the General Revenue Fund, provided for in
20this Section to be given to the Comptroller by the Department,
21the Comptroller shall cause the orders to be drawn for the
22respective amounts in accordance with the directions contained
23in such certification.
24    Nothing in this Section shall be construed to authorize a
25municipality to impose a tax upon the privilege of engaging in
26any business which under the Constitution of the United States

 

 

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1may not 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 publication
5as provided in Section 1-2-4. The corporate authorities of any
6municipality which levies a tax authorized by this Section
7shall transmit to the Department of Revenue on or not later
8than 5 days after publication a certified copy of the ordinance
9or resolution imposing such tax whereupon the Department of
10Revenue shall proceed to administer and enforce this Section on
11behalf of such municipality as of the effective date of the
12ordinance or resolution. Upon a change in rate of a tax levied
13hereunder, or upon the discontinuance of the tax, the corporate
14authorities of the municipality shall on or not later than 5
15days after publication of the ordinance or resolution
16discontinuing the tax or effecting a change in rate transmit to
17the Department of Revenue a certified copy of the ordinance or
18resolution effecting such change or discontinuance.
19    The Department of Revenue must upon the request of the
20municipal clerk, city council or village board of trustees
21submit to a city, village or incorporated town a list of those
22persons who are registered with the Department to pay
23automobile renting occupation tax within that governmental
24unit. This list shall contain only the names of persons who
25have paid the tax and not the amount of tax paid by such
26person.

 

 

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1    As used in this Section, "municipal" and "municipality"
2means a city, village or incorporated town, including an
3incorporated town which has superseded a civil township.
4    This Section shall be known and may be cited as the
5"Municipal Automobile Renting Occupation Tax Act".
6(Source: P.A. 86-1475.)
 
7    Section 20. The Illinois Vehicle Code is amended by
8changing Sections 6-305.2, 6-305.3, and 9-101 and by adding
9Sections 1-146.7, 1-159.05, 1-159.07, and 1-171.01e as
10follows:
 
11    (625 ILCS 5/1-146.7 new)
12    Sec. 1-146.7. Motor vehicle rental company. Any person or
13entity whose primary business is renting motor vehicles to the
14public for 30 days or less, including a personal car
15facilitation company as defined in Section 1-159.07 of this
16Code. "Motor vehicle rental company" shall also include any
17entity that may be described in this Code as a rental car
18company, rental car agency, automobile rental company, vehicle
19rental company, rental owner, or any other similar entity that
20engages in the rental of motor vehicles to the public.
 
21    (625 ILCS 5/1-159.05 new)
22    Sec. 1-159.05. Personal car facilitation. The use of a
23privately-owned passenger motor vehicle by persons other than

 

 

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1the vehicle's registered owner as facilitated by a personal car
2facilitation company.
 
3    (625 ILCS 5/1-159.07 new)
4    Sec. 1-159.07. Personal car facilitation company. A legal
5entity qualified to do business in this State engaged in the
6business of facilitating the use, rental, or sharing of
7privately-owned passenger motor vehicles for noncommercial use
8by individuals within this State. "Personal car facilitation
9company" does not include the registered owner of the vehicle
10facilitated by a personal car facilitation company for the
11purpose of personal car facilitation.
 
12    (625 ILCS 5/1-171.01e new)
13    Sec. 1-171.01e. Rental agreement. An agreement for 30 days
14or less setting forth the terms and conditions governing the
15use of a motor vehicle provided by a motor vehicle rental
16company.
 
17    (625 ILCS 5/6-305.2)
18    Sec. 6-305.2. Limited liability for damage.
19    (a) Damage to private passenger vehicle. A person who rents
20a motor vehicle to another may hold the renter liable to the
21extent permitted under subsections (b) through (d) for physical
22or mechanical damage to the rented motor vehicle that occurs
23during the time the motor vehicle is under the rental

 

 

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1agreement.
2    (b) Limits on liability: vehicle MSRP $50,000 or less. The
3total liability of a renter under subsection (a) for damage to
4a motor vehicle with a Manufacturer's Suggested Retail Price
5(MSRP) of $50,000 or less may not exceed all of the following:
6        (1) The lesser of:
7            (A) Actual and reasonable costs that the person who
8        rents a motor vehicle to another incurred to repair the
9        motor vehicle or that the rental company would have
10        incurred if the motor vehicle had been repaired, which
11        shall reflect any discounts, price reductions, or
12        adjustments available to the rental company; or
13            (B) The fair market value of that motor vehicle
14        immediately before the damage occurred, as determined
15        in the customary market for the retail sale of that
16        motor vehicle; and
17        (2) Actual and reasonable costs incurred by the loss
18    due to theft of the rental motor vehicle up to $2,000;
19    provided, however, that if it is established that the
20    renter or an authorized driver failed to exercise ordinary
21    care while in possession of the vehicle or that the renter
22    or an authorized driver committed or aided and abetted the
23    commission of the theft, then the damages shall be the
24    actual and reasonable costs of the rental vehicle up to its
25    fair market value, as determined by the customary market
26    for the sale of that vehicle.

 

 

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1    For purposes of this subsection (b), for the period prior
2to June 1, 1998, the maximum amount that may be recovered from
3an authorized driver shall not exceed $6,000; for the period
4beginning June 1, 1998 through May 31, 1999, the maximum
5recovery shall not exceed $7,500; and for the period beginning
6June 1, 1999 through May 31, 2000, the maximum recovery shall
7not exceed $9,000. Beginning June 1, 2000, and annually each
8June 1 thereafter, the maximum amount that may be recovered
9from an authorized driver shall be increased by $500 above the
10maximum recovery allowed immediately prior to June 1 of that
11year.
12    (b-5) Limits on liability: vehicle MSRP more than $50,000.
13The total liability of a renter under subsection (a) for damage
14to a motor vehicle with a Manufacturer's Suggested Retail Price
15(MSRP) of more than $50,000 may not exceed all of the
16following:
17        (1) the lesser of:
18            (A) actual and reasonable costs that the person who
19        rents a motor vehicle to another incurred to repair the
20        motor vehicle or that the rental company would have
21        incurred if the motor vehicle had been repaired, which
22        shall reflect any discounts, price reductions, or
23        adjustments available to the rental company; or
24            (B) the fair market value of that motor vehicle
25        immediately before the damage occurred, as determined
26        in the customary market for the retail sale of that

 

 

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1        motor vehicle; and
2        (2) the actual and reasonable costs incurred by the
3    loss due to theft of the rental motor vehicle up to
4    $40,000.
5    The maximum recovery for a motor vehicle with a
6Manufacturer's Suggested Retail Price (MSRP) of more than
7$50,000 under this subsection (b-5) shall not exceed $40,000 on
8the effective date of this amendatory Act of the 99th General
9Assembly. On October 1, 2016, and for the next 3 years
10thereafter, the maximum amount that may be recovered from an
11authorized driver under this subsection (b-5) shall be
12increased by $2,500 above the prior year's maximum recovery. On
13October 1, 2020, and for each year thereafter, the maximum
14amount that may be recovered from an authorized driver under
15this subsection (b-5) shall be increased by $1,000 above the
16prior year's maximum recovery.
17    (c) Multiple recoveries prohibited. Any person who rents a
18motor vehicle to another may not hold the renter liable for any
19amounts that the rental company recovers from any other party.
20    (d) Repair estimates. A person who rents a motor vehicle to
21another may not collect or attempt to collect the amount
22described in subsection (b) or (b-5) unless the rental company
23obtains an estimate from a repair company or an appraiser in
24the business of providing such appraisals on the costs of
25repairing the motor vehicle, makes a copy of the estimate
26available upon request to the renter who may be liable under

 

 

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1subsection (a), or the insurer of the renter, and submits a
2copy of the estimate with any claim to collect the amount
3described in subsection (b) or (b-5). In order to collect the
4amount described in subsection (b-5), a person renting a motor
5vehicle to another must also provide the renter's personal
6insurance company with reasonable notice and an opportunity to
7inspect damages.
8    (d-5) In the event of loss due to theft of the rental motor
9vehicle with a MSRP more than $50,000, the rental company shall
10provide reasonable notice of the theft to the renter's personal
11insurance company.
12    (e) Duty to mitigate. A claim against a renter resulting
13from damage or loss to a rental vehicle must be reasonably and
14rationally related to the actual loss incurred. A rental
15company shall mitigate damages where possible and shall not
16assert or collect any claim for physical damage which exceeds
17the actual costs of the repair, including all discounts or
18price reductions.
19    (f) No rental company shall require a deposit or an advance
20charge against the credit card of a renter, in any form, for
21damages to a vehicle which is in the renter's possession,
22custody, or control. No rental company shall require any
23payment for damage to the rental vehicle, upon the renter's
24return of the vehicle in a damaged condition, until after the
25cost of the damage to the vehicle and liability therefor is
26agreed to between the rental company and renter or is

 

 

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1determined pursuant to law.
2    (g) If insurance coverage exists under the renter's
3personal insurance policy and the coverage is confirmed during
4regular business hours, the renter may require that the rental
5company must submit any claims to the renter's personal
6insurance carrier as the renter's agent. The rental company
7shall not make any written or oral representations that it will
8not present claims or negotiate with the renter's insurance
9carrier. For purposes of this Section, confirmation of coverage
10includes telephone confirmation from insurance company
11representatives during regular business hours. After
12confirmation of coverage, the amount of claim shall be resolved
13between the insurance carrier and the rental company.
14    (h) For purposes of allocation of liability for damage to
15private passenger vehicles as established under this Section, a
16motor vehicle rental company that is a personal car
17facilitation company as defined in Section 1-159.07 of this
18Code shall, if any damage to a vehicle occurs at any time when
19the vehicle is under the operation and control of a person
20other than the vehicle's registered owner under a personal car
21facilitation transaction facilitated by that company, assume
22all liability of the registered owner of the vehicle used in
23the personal car facilitation transaction and shall be
24considered the vehicle's owner for rental purposes. Nothing in
25this subsection (h) prevents a personal car facilitation
26company from holding a renter in a personal car facilitation

 

 

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1transaction liable to the extent permitted under this Section.
2A personal car facilitation company continues to be liable
3under this subsection (h) until the end of the personal car
4facilitation transaction as described in subsection (c) of
5Section 30 of the Renter's Financial Responsibility and
6Protection Act.
7(Source: P.A. 99-201, eff. 10-1-15.)
 
8    (625 ILCS 5/6-305.3)
9    Sec. 6-305.3. Vehicle license cost recovery fee.
10    (a) As used in this Section:
11    "Motor vehicle rental company" has the meaning ascribed to
12it in Section 1-146.7 of this Code means a person or entity
13whose primary business is renting motor vehicles to the public
14for 30 days or less.
15    "Inspect" or "inspection" means a vehicle emissions
16inspection under Chapter 13C of this Code.
17    "Rental agreement" has the meaning ascribed to it in
18Section 1-171.01e of this Code means an agreement for 30 days
19or less setting forth the terms and conditions governing the
20use of a motor vehicle provided by a rental company.
21    "Motor vehicle" means motor vehicles of the first division
22and motor vehicles of the second division weighing not more
23than 8,000 pounds.
24    "Vehicle license cost recovery fee" or "VLCRF" means a
25charge that may be separately stated and charged on a rental

 

 

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

 

 

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

 

 

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

 

 

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1        (1) the company responds to the Uniform Traffic
2    Citation by submitting, within 30 days of the mailing of
3    the citation, an affidavit of non-liability stating that,
4    at the time of the alleged speeding or other traffic
5    violation, the vehicle was in the custody and control of a
6    renter or lessee under the terms of a rental agreement or
7    lease; and
8        (2) the company provides the driver's license number,
9    name, and address of the renter or lessee.
10    (a-5) A Uniform Traffic Citation issued under this Act to
11the registered owner of a vehicle used in personal car
12facilitation, as defined in Section 1-159.05 of the Illinois
13Vehicle Code, shall be dismissed with respect to the registered
14owner if:
15        (1) the registered owner responds to the Uniform
16    Traffic Citation by submitting, within 30 days of the
17    mailing of the citation, an affidavit of non-liability
18    stating that, at the time of the alleged speeding or other
19    traffic violation, the vehicle was under the operation and
20    control of a person other than the vehicle's registered
21    owner under a personal car facilitation transaction
22    facilitated by a personal car facilitation company; and
23        (2) the registered owner provides proof of the
24    transaction facilitated by the personal car facilitation
25    company with the driver of his or her vehicle during the
26    alleged violation.

 

 

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1    (b) A Uniform Traffic Citation dismissed with respect to a
2motor vehicle rental or leasing company in accordance with
3subsection (a) may then be issued and delivered by mail or
4other means to the renter or lessee identified in the affidavit
5of non-liability.
6    (c) For purposes of this Section, "motor vehicle rental or
7leasing company" includes a personal car facilitation company
8as defined in Section 1-159.07 of the Illinois Vehicle Code.
9(Source: P.A. 93-947, eff. 8-19-04.)
 
10    Section 30. The Renter's Financial Responsibility and
11Protection Act is amended by changing Section 10 and by adding
12Section 30 as follows:
 
13    (625 ILCS 27/10)
14    Sec. 10. Definitions. As used in this Act:
15    "Personal car facilitation" means the use of a
16privately-owned passenger motor vehicle by persons other than
17the vehicle's registered owner as facilitated by a personal car
18facilitation company.
19    "Personal car facilitation company" means a legal entity
20qualified to do business in this State engaged in the business
21of facilitating the use, rental, or sharing of privately-owned
22passenger motor vehicles for noncommercial use by individuals
23within this State. "Personal car facilitation company" does not
24include the registered owner of the vehicle facilitated by a

 

 

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1personal car facilitation company for the purpose of personal
2car facilitation.
3    "Rental Company" means a person or entity that rents
4private passenger vehicles to the public for 30 days or less,
5including a personal car facilitation company.
6    "Renter" means a person or entity that obtains the use of a
7private passenger vehicle from a rental company under terms of
8a rental agreement.
9    "Rental Agreement" means an agreement for 30 days or less
10setting forth the terms and conditions governing the use of a
11private passenger vehicle provided by a rental company.
12    "Authorized Driver" means: the renter; the renter's spouse
13if the spouse is a licensed driver and satisfies the rental
14company's minimum age requirement; the renter's employer,
15employee, or co-worker if that person is a licensed driver,
16satisfies the rental company's minimum age requirement, and at
17the time of the rental is engaged in a business activity with
18the renter; any person who is expressly listed by the rental
19company on the rental agreement as an authorized driver; and
20any person driving directly to a medical or police facility
21under circumstances reasonably believed to constitute an
22emergency and who is a licensed driver.
23    "Damage Waiver" means a rental company's agreement not to
24hold an authorized driver liable for all or a part of any
25damage to or loss of a rented vehicle for which the renter may
26be liable pursuant to Section 6-305.2. "Damage Waiver" shall

 

 

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1encompass within its meaning other similar terms used by rental
2companies, such as "Collision Damage Waiver", "Loss Damage
3Waiver", "Physical Damage Waiver", and the like.
4(Source: P.A. 90-113, eff. 7-14-97.)
 
5    (625 ILCS 27/30 new)
6    Sec. 30. Personal car facilitation company obligations and
7liability.
8    (a) Notwithstanding any provision to the contrary, a rental
9company that is a personal car facilitation company shall, when
10applicable, be subject to the statutory and regulatory
11obligations pertaining to all motor vehicle rental companies.
12    (b) If any loss or injury occurs at any time when a vehicle
13is under the operation and control of a person other than the
14vehicle's registered owner under a personal car facilitation
15transaction facilitated by a personal car facilitation
16company, the company shall assume all liability of the
17registered owner of the vehicle used in the personal car
18facilitation transaction and shall be considered the vehicle's
19owner for all purposes.
20    (c) A personal car facilitation company continues to be
21liable under subsection (b) of this Section until the vehicle
22is returned to a location designated by the company, and one of
23the following occur:
24        (1) the expiration of the personal car facilitation
25    time period established for the vehicle occurs;

 

 

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1        (2) the intent to terminate the vehicle's personal car
2    facilitation use is verifiably communicated to the
3    company; or
4        (3) the vehicle's registered owner takes possession
5    and control of the vehicle.
6    (d) At no time shall the registered owner of the vehicle be
7held liable for any loss, injury, damage, or violation
8involving his or her vehicle occurring during a personal car
9facilitation transaction unless it is shown that the registered
10owner was operating or in control of the vehicle at the time of
11the loss, injury, damage, or violation.
12    (e) Notwithstanding any provision to the contrary, for the
13purposes of the issuance of a citation for a violation of
14Sections 11-208.6, 11-208.8, 11-208.9, and 11-1201.1 of the
15Illinois Vehicle Code, the registered owner of the vehicle
16shall be dismissed with respect to those violations, and the
17personal car facilitation company shall be considered the
18vehicle's owner for purposes of the citation. A citation for a
19violation under this Section shall be dismissed with respect to
20the registered owner upon:
21        (1) the registered owner responding to the citation by
22    submitting, within 30 days of the mailing of the citation,
23    an affidavit of non-liability stating that, at the time of
24    the alleged violation, the vehicle was under the operation
25    and control of a person other than the vehicle's registered
26    owner under a personal car facilitation transaction

 

 

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1    facilitated by a personal car facilitation company; and
2        (2) the registered owner providing proof of the
3    transaction facilitated by the personal car facilitation
4    company with the driver of his or her vehicle during the
5    alleged violation.
6    (f) Nothing in this Section shall limit the liability of
7the personal car facilitation company for any acts or omissions
8by the company that result in injury to any persons as a result
9of the use or operation of a vehicle during a personal car
10facilitation transaction.".