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

SB2641ham002 100TH GENERAL ASSEMBLY

Rep. Arthur Turner

Filed: 5/22/2018

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 2641

2    AMENDMENT NO. ______. Amend Senate Bill 2641, AS AMENDED,
3by replacing everything after the enacting clause with the
4following:
 
5    "Section 5. The Automobile Renting Occupation and Use Tax
6Act is amended by changing Section 2 as follows:
 
7    (35 ILCS 155/2)  (from Ch. 120, par. 1702)
8    Sec. 2. Definitions. "Renting" means any transfer of the
9possession or right to possession of an automobile to a user
10for a valuable consideration for a period of one year or less,
11including the facilitation of a privately-owned passenger
12motor vehicle for use by persons other than the vehicle's
13registered owner as an part of a personal car facilitation
14transaction, as defined in Section 1-159.1b of the Illinois
15Vehicle Code.
16    "Renting" does not include making a charge for the use of

 

 

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1an automobile where the rentor, either himself or through an
2agent, furnishes a service of operating an automobile so that
3the rentor remains in possession of the automobile, because
4this does not constitute a transfer of possession or right to
5possession of the automobile.
6    "Renting" does not include the making of a charge by an
7automobile dealer for the use of an automobile as a
8demonstrator in connection with the dealer's business of
9selling, where the charge is merely made to recover the costs
10of operating the automobile as a demonstrator and is not
11intended as a rental or leasing charge in the ordinary sense.
12    "Automobile" means (1) any motor vehicle of the first
13division, or (2) a motor vehicle of the second division which:
14(A) is a self-contained motor vehicle designed or permanently
15converted to provide living quarters for recreational, camping
16or travel use, with direct walk through access to the living
17quarters from the driver's seat; (B) is of the van
18configuration designed for the transportation of not less than
197 nor more than 16 passengers, as defined in Section 1-146 of
20the Illinois Vehicle Code; or (C) has a Gross Vehicle Weight
21Rating, as defined in Section 1-124.5 of the Illinois Vehicle
22Code, of 8,000 pounds or less.
23    "Department" means the Department of Revenue.
24    "Person" means any natural individual, firm, partnership,
25association, joint stock company, joint adventure, public or
26private corporation, limited liability company, or a receiver,

 

 

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

 

 

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

 

 

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1corporate authorities of a county may impose a tax upon all
2persons engaged in the business of renting automobiles in the
3county, but outside any municipality, at the rate of not to
4exceed 1% of the gross receipts from such business. For the
5purposes of imposing a tax under this Section, the facilitation
6of a privately-owned passenger motor vehicle for use by a
7person other than the vehicle's registered owner as a part of a
8personal car facilitation transaction, as defined in Section
91-159.1b of the Illinois Vehicle Code, constitutes engaging in
10the business of renting automobiles in the county. The tax
11imposed by a county pursuant to this Section and all civil
12penalties that may be assessed as an Incident thereof shall be
13collected and enforced by the State Department of Revenue. The
14certificate of registration which is issued by the Department
15to a retailer under the "Retailers' Occupation Tax Act",
16approved June 23, 1933, as amended, or under the "Automobile
17Renting Occupation and Use Tax Act", enacted by the
18Eighty-Second General Assembly, shall permit such person to
19engage in a business which is taxable under any ordinance or
20resolution enacted pursuant to this Section without
21registering separately with the Department under such
22ordinance or resolution or under this Section. The Department
23shall have full power to administer and enforce this Section;
24to collect all taxes and penalties due hereunder; to dispose of
25taxes and penalties so collected in the manner hereinafter
26provided, and to determine all rights to credit memoranda,

 

 

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

 

 

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

 

 

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

 

 

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1change in rate transmit to the Department of Revenue a
2certified copy of the ordinance or resolution effecting such
3change or discontinuance.
4    The Department of Revenue must upon the request of the
5County Clerk or County Board submit to a county a list of those
6persons who are registered with the Department to pay
7automobile renting occupation tax within the unincorporated
8area of that governmental unit. This list shall contain only
9the names of persons who have paid the tax and not the amount
10of tax paid by such person.
11    This Section shall be known and may be cited as the "County
12Automobile Renting Occupation Tax Law".
13(Source: P.A. 86-962.)
 
14    Section 15. The Illinois Municipal Code is amended by
15changing Section 8-11-7 as follows:
 
16    (65 ILCS 5/8-11-7)  (from Ch. 24, par. 8-11-7)
17    Sec. 8-11-7. The corporate authorities of a municipality
18may impose a tax upon all persons engaged in the business of
19renting automobiles in the municipality at the rate of not to
20exceed 1% of the gross receipts from such business. For the
21purposes of imposing a tax under this Section, the facilitation
22of a privately-owned passenger motor vehicle for use by a
23person other than the vehicle's registered owner as a part of a
24personal car facilitation transaction, as defined in Section

 

 

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11-159.1b of the Illinois Vehicle Code, constitutes engaging in
2the business of renting automobiles in the municipality. The
3tax imposed by a municipality pursuant to this Section and all
4civil penalties that may be assessed as an incident thereof
5shall be collected and enforced by the State Department of
6Revenue. The certificate of registration which is issued by the
7Department to a retailer under the Retailers' Occupation Tax
8Act or under the Automobile Renting Occupation and Use Tax Act
9shall permit such person to engage in a business which is
10taxable under any ordinance or resolution enacted pursuant to
11this Section without registering separately with the
12Department 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 Renting
6Occupation and Use Tax Act, as fully as if those provisions
7were set forth herein.
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, 1-159.1a, 1-159.1b, 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 1-159.1a. "Motor
16vehicle rental company" includes a rental car company, rental
17car agency, automobile rental company, vehicle rental company,
18rental owner, or any other similar entity that engages in the
19rental of motor vehicles to the public.
 
20    (625 ILCS 5/1-159.1a new)
21    Sec. 1-159.1a. Personal car facilitation company. A legal
22entity qualified to do business in this State engaged in the
23business of facilitating the use, rental, or sharing of

 

 

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1privately-owned passenger motor vehicles for noncommercial use
2by individuals within this State. "Personal car facilitation
3company" does not include the registered owner of the vehicle
4involved in a personal car facilitation transaction
5facilitated by a personal car facilitation company.
 
6    (625 ILCS 5/1-159.1b new)
7    Sec. 1-159.1b. Personal car facilitation transaction. The
8use of a privately-owned passenger motor vehicle by a person
9other than the vehicle's registered owner as facilitated by a
10personal car facilitation company.
 
11    (625 ILCS 5/1-171.01e new)
12    Sec. 1-171.01e. Rental agreement. An agreement for 30 days
13or less setting forth the terms and conditions governing the
14use of a motor vehicle provided by a motor vehicle rental
15company.
 
16    (625 ILCS 5/6-305.2)
17    Sec. 6-305.2. Limited liability for damage.
18    (a) Damage to private passenger vehicle. A person who rents
19a motor vehicle to another may hold the renter liable to the
20extent permitted under subsections (b) through (d) for physical
21or mechanical damage to the rented motor vehicle that occurs
22during the time the motor vehicle is under the rental
23agreement.

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    (g) If insurance coverage exists under the renter's
2personal insurance policy and the coverage is confirmed during
3regular business hours, the renter may require that the rental
4company must submit any claims to the renter's personal
5insurance carrier as the renter's agent. The rental company
6shall not make any written or oral representations that it will
7not present claims or negotiate with the renter's insurance
8carrier. For purposes of this Section, confirmation of coverage
9includes telephone confirmation from insurance company
10representatives during regular business hours. After
11confirmation of coverage, the amount of claim shall be resolved
12between the insurance carrier and the rental company.
13    (h) For the purposes of the allocation of liability for
14damage to a private passenger vehicle as established under this
15Section, a motor vehicle rental company that is a personal car
16facilitation company, as defined in Section 1-159.1a, shall, if
17any damage to a vehicle occurs at any time when the vehicle is
18not in possession of the vehicle's registered owner and at the
19personal car facilitation company's designated location while
20being made available to rent, under the operation and control
21of a person other than the vehicle's registered owner under a
22personal car facilitation transaction facilitated by that
23company, or at the personal car facilitation company's
24designated area not being made available to rent, but not yet
25in the possession of the vehicle's registered owner, assume all
26liability of the registered owner of the vehicle used in the

 

 

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1personal car facilitation transaction. Nothing in this
2subsection (h) prevents a personal car facilitation company
3from holding a renter in a personal car facilitation
4transaction liable to the extent permitted under this Section.
5A personal car facilitation company continues to be liable
6under this subsection (h) until the end of the personal car
7facilitation transaction as described in subsection (c) of
8Section 30 of the Renter's Financial Responsibility and
9Protection Act or as described in this subsection (h) while the
10vehicle is at the designated location of the personal car
11facilitation company. At no time shall the registered owner of
12the vehicle or the owner's insurer be liable for any exposure,
13including negligent entrustment, of the vehicle involved in a
14personal car facilitation transaction as described in
15subsection (c) of Section 30 of the Renter's Financial
16Responsibility and Protection Act.
17(Source: P.A. 99-201, eff. 10-1-15.)
 
18    (625 ILCS 5/6-305.3)
19    Sec. 6-305.3. Vehicle license cost recovery fee.
20    (a) As used in this Section:
21    "Motor vehicle rental company" has the meaning ascribed to
22it in Section 1-146.7 of this Code means a person or entity
23whose primary business is renting motor vehicles to the public
24for 30 days or less.
25    "Inspect" or "inspection" means a vehicle emissions

 

 

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1inspection under Chapter 13C of this Code.
2    "Rental agreement" has the meaning ascribed to it in
3Section 1-171.01e of this Code means an agreement for 30 days
4or less setting forth the terms and conditions governing the
5use of a motor vehicle provided by a rental company.
6    "Motor vehicle" means motor vehicles of the first division
7and motor vehicles of the second division weighing not more
8than 8,000 pounds.
9    "Vehicle license cost recovery fee" or "VLCRF" means a
10charge that may be separately stated and charged on a rental
11agreement in a vehicle rental transaction originating in
12Illinois to recover costs incurred either directly or
13indirectly by a motor vehicle rental company to license, title,
14register, and inspect motor vehicles.
15    (b) Motor vehicle rental companies may include a separately
16stated mandatory surcharge or fee in a rental agreement for
17vehicle license cost recovery fees (VLCRF) and all applicable
18taxes.
19    (c) If a motor vehicle rental company includes a VLCRF as
20separately stated charge in a rental agreement, the amount of
21the fee must represent the motor vehicle rental company's
22good-faith estimate of the automobile rental company's daily
23charge as calculated by the motor vehicle rental company to
24recover its actual total annual motor vehicle titling,
25registration, and inspection costs.
26    (d) If the total amount of the VLCRF collected by a motor

 

 

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1vehicle rental company under this Section in any calendar year
2exceeds the motor vehicle rental company's actual costs to
3license, title, register, and inspect for that calendar year,
4the motor vehicle rental company shall do both of the
5following:
6        (1) Retain the excess amount; and
7        (2) Adjust the estimated average per vehicle titling,
8    licensing, inspection, and registration charge for the
9    following calendar year by a corresponding amount.
10    (e) Nothing in subsection (d) of this Section shall prevent
11a motor vehicle rental company from making adjustments to the
12VLCRF during the calendar year.
13(Source: P.A. 96-37, eff. 7-13-09; 97-595, eff. 8-26-11.)
 
14    (625 ILCS 5/9-101)  (from Ch. 95 1/2, par. 9-101)
15    Sec. 9-101. Owner of for-rent motor vehicle to give proof
16of financial responsibility. For purposes of this Chapter, "for
17rent" means any transfer of the possession of or right to
18possession of a motor vehicle to a user for a valuable
19consideration for a period of less than one year, and "to
20lease" means any transfer of the possession of or right to
21possession of a motor vehicle to a user for a period of one
22year or more. It is unlawful for the owner of any motor vehicle
23to engage in the business, or to hold himself out to the public
24generally as being engaged in the business of renting out such
25motor vehicle to be operated by the customer, unless the owner

 

 

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1has given, and there is in full force and effect and on file
2with the Secretary of State proof of financial responsibility
3as hereinafter provided. For the purposes of this Section, the
4facilitation of a privately-owned passenger motor vehicle for
5use by a person other than the vehicle's registered owner as a
6part of a personal car facilitation transaction shall
7constitute engaging in the business of renting out motor
8vehicles in this State. For the purposes of providing proof of
9financial responsibility under this Section, a personal car
10facilitation company shall be considered the owner of the
11vehicle and financially responsible for that vehicle at any
12time the vehicle is used in a personal car facilitation
13transaction facilitated by that company and under the operation
14and control of a person other than the vehicle's registered
15owner. The delivery of a vehicle owned by an out of State
16person or business to a renter in this State shall constitute
17engaging in the rental business in this State for purposes of
18this Section.
19    All owners of motor vehicles which are leased for a period
20of one year or more are not required to provide proof of
21insurance as required under this chapter, but instead must
22comply with Section 7-601 of this Code and obtain vehicle
23insurance in amounts no less than the minimum amount set for
24bodily injury or death and for destruction of property pursuant
25to Section 7-203 of this Code.
26(Source: P.A. 86-880; 87-1220.)
 

 

 

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1    Section 25. The Automated Traffic Control Systems in
2Highway Construction or Maintenance Zones Act is amended by
3changing Section 45 as follows:
 
4    (625 ILCS 7/45)
5    Sec. 45. Vehicle rental or leasing company's
6identification of a renter or lessee.
7    (a) A Uniform Traffic Citation issued under this Act to a
8motor vehicle rental or leasing company shall be dismissed with
9respect to the rental or leasing company if:
10        (1) the company responds to the Uniform Traffic
11    Citation by submitting, within 30 days of the mailing of
12    the citation, an affidavit of non-liability stating that,
13    at the time of the alleged speeding or other traffic
14    violation, the vehicle was in the custody and control of a
15    renter or lessee under the terms of a rental agreement or
16    lease; and
17        (2) the company provides the driver's license number,
18    name, and address of the renter or lessee.
19    (a-5) A Uniform Traffic Citation issued under this Act to
20the registered owner of a vehicle used in personal car
21facilitation transaction, as defined in Section 1-159.1b of the
22Illinois Vehicle Code, shall be dismissed with respect to the
23registered owner if:
24        (1) the registered owner responds to the Uniform

 

 

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1    Traffic Citation by submitting, within 30 days of the
2    mailing of the citation, an affidavit of non-liability
3    stating that, at the time of the alleged speeding or other
4    traffic violation, the vehicle was under the operation and
5    control of a person other than the vehicle's registered
6    owner under a personal car facilitation transaction
7    facilitated by a personal car facilitation company; and
8        (2) the registered owner provides proof of the
9    transaction facilitated by the personal car facilitation
10    company between the registered owner of the vehicle and the
11    driver of the vehicle during the alleged violation.
12    (b) A Uniform Traffic Citation dismissed with respect to a
13motor vehicle rental or leasing company in accordance with
14subsection (a) may then be issued and delivered by mail or
15other means to the renter or lessee identified in the affidavit
16of non-liability.
17(Source: P.A. 93-947, eff. 8-19-04.)
 
18    Section 30. The Renter's Financial Responsibility and
19Protection Act is amended by changing Section 10 and by adding
20Section 30 as follows:
 
21    (625 ILCS 27/10)
22    Sec. 10. Definitions. As used in this Act:
23    "Personal car facilitation company" means a legal entity
24qualified to do business in this State engaged in the business

 

 

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1of facilitating the use, rental, or sharing of privately-owned
2passenger motor vehicles for noncommercial use by individuals
3within this State. "Personal car facilitation company" does not
4include the registered owner of the vehicle facilitated by a
5personal car facilitation company for the purpose of personal
6car facilitation.
7    "Personal car facilitation transaction" means the use of a
8privately-owned passenger motor vehicle by a person other than
9the vehicle's registered owner as facilitated by a personal car
10facilitation company.
11    "Rental Company" means a person or entity that rents
12private passenger vehicles to the public for 30 days or less.
13"Rental company" includes a personal car facilitation company.
14    "Renter" means a person or entity that obtains the use of a
15private passenger vehicle from a rental company under terms of
16a rental agreement.
17    "Rental Agreement" means an agreement for 30 days or less
18setting forth the terms and conditions governing the use of a
19private passenger vehicle provided by a rental company.
20    "Authorized Driver" means: the renter; the renter's spouse
21if the spouse is a licensed driver and satisfies the rental
22company's minimum age requirement; the renter's employer,
23employee, or co-worker if that person is a licensed driver,
24satisfies the rental company's minimum age requirement, and at
25the time of the rental is engaged in a business activity with
26the renter; any person who is expressly listed by the rental

 

 

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1company on the rental agreement as an authorized driver; and
2any person driving directly to a medical or police facility
3under circumstances reasonably believed to constitute an
4emergency and who is a licensed driver.
5    "Damage Waiver" means a rental company's agreement not to
6hold an authorized driver liable for all or a part of any
7damage to or loss of a rented vehicle for which the renter may
8be liable pursuant to Section 6-305.2. "Damage Waiver" shall
9encompass within its meaning other similar terms used by rental
10companies, such as "Collision Damage Waiver", "Loss Damage
11Waiver", "Physical Damage Waiver", and the like.
12(Source: P.A. 90-113, eff. 7-14-97.)
 
13    (625 ILCS 27/30 new)
14    Sec. 30. Personal car facilitation company obligations and
15liability.
16    (a) Notwithstanding any provision to the contrary, a rental
17company that is a personal car facilitation company shall, when
18applicable, be subject to the statutory and regulatory
19obligations pertaining to all motor vehicle rental companies.
20    (b) If any loss or injury occurs at any time a vehicle is
21under the operation and control of a person other than the
22vehicle's registered owner under a personal car facilitation
23transaction facilitated by a personal car facilitation
24company, the company shall assume all liability of the
25registered owner of the vehicle used in the personal car

 

 

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1facilitation transaction and shall be considered the vehicle's
2owner for all purposes.
3    (c) A personal car facilitation company continues to be
4liable under subsection (b) of this Section until the vehicle
5is returned to a location designated by the company, and one of
6the following occur:
7        (1) the expiration of the personal car facilitation
8    period established for the vehicle occurs;
9        (2) the intent to terminate the vehicle's personal car
10    facilitation transaction is verifiably communicated to the
11    company; or
12        (3) the vehicle's registered owner takes possession
13    and control of the vehicle.
14    If any loss giving rise to a claim occurs, the personal car
15facilitation company shall initially assume liability for a
16claim in which a dispute exists as to who was in control of the
17vehicle and seek indemnification if it is later determined that
18the registered owner was in possession of the vehicle.
19    (d) At no time shall the registered owner of the vehicle or
20the owner's insurer be held liable for any loss, injury,
21damage, or violation involving his or her vehicle occurring
22during a personal car facilitation transaction unless it is
23shown that the registered owner was operating or in control of
24the vehicle at the time of the loss, injury, damage, or
25violation.
26    (e) Notwithstanding any provision to the contrary, for the

 

 

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1purposes of the issuance of a civil penalty for a violation of
2Section 11-208.6, 11-208.8, 11-208.9, or 11-1201.1 of the
3Illinois Vehicle Code, the violation shall be dismissed with
4respect to the registered owner of the vehicle, and the
5personal car facilitation company shall be considered the
6vehicle's owner for purposes of violation, if:
7        (1) the registered owner responds to the citation by
8    submitting, within 30 days of the mailing of the citation,
9    an affidavit of non-liability stating that, at the time of
10    the alleged violation, the vehicle was under the operation
11    and control of a person other than the vehicle's registered
12    owner under a personal car facilitation transaction
13    facilitated by a personal car facilitation company; and
14        (2) the registered owner provides proof of the
15    transaction facilitated by the personal car facilitation
16    company with the driver of his or her vehicle during the
17    alleged violation.
18    (f) Nothing in this Section shall limit the liability of
19the personal car facilitation company for any acts or omissions
20by the company that result in injury to any persons as a result
21of the use or operation of a vehicle during a personal car
22facilitation transaction.
23    (g) The personal car facilitation company shall collect and
24verify records pertaining to the use of a vehicle, including,
25but not limited to, times used, fees paid by the rentor, and
26revenues received by the vehicle owner, and provide that

 

 

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1information upon request to the registered vehicle owner, the
2owner's insurer, and the insurer of a person operating the
3vehicle during the personal car transaction and shall retain
4the records for a reasonable period after the expiration of the
5applicable personal injury statute of limitations.
6    (h) The personal 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.".