Full Text of HB1497 103rd General Assembly
HB1497 103RD GENERAL ASSEMBLY |
| | 103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024 HB1497 Introduced 1/31/2023, by Rep. La Shawn K. Ford SYNOPSIS AS INTRODUCED: |
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Amends the Illinois Vehicle Code. Deletes language limiting the liability of a renter for damage to a vehicle to $2,000 for a vehicle with a Manufacturer's Suggested Retail Price of $50,000 or less, and $40,000 for a vehicle with a Manufacturer's Suggested Retail Price greater than $50,000.
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| | A BILL FOR |
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| 1 | | AN ACT concerning transportation.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Illinois Vehicle Code is amended by | 5 | | changing Section 6-305.2 as follows:
| 6 | | (625 ILCS 5/6-305.2)
| 7 | | Sec. 6-305.2. Limited liability for damage.
| 8 | | (a) Damage to private
passenger vehicle. A person who | 9 | | rents a motor vehicle to another may hold
the renter liable to | 10 | | the extent permitted under subsections (b) through (d) for
| 11 | | physical or mechanical damage to the rented motor vehicle that | 12 | | occurs during
the time the motor vehicle is under the rental | 13 | | agreement.
| 14 | | (b) Limits on liability : vehicle MSRP $50,000 or less . The | 15 | | total liability of a renter under subsection
(a) for damage to | 16 | | a motor vehicle with a Manufacturer's Suggested Retail Price | 17 | | (MSRP) of $50,000 or less may not exceed all of the following:
| 18 | | (1) The lesser of:
| 19 | | (A) Actual and reasonable costs that the person | 20 | | who rents a motor
vehicle to another incurred to | 21 | | repair the motor vehicle or that the rental
company | 22 | | would have incurred if the motor vehicle had been
| 23 | | repaired, which shall reflect any discounts, price |
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| 1 | | reductions, or adjustments
available to the rental | 2 | | company; or
| 3 | | (B) The fair market value of that motor vehicle | 4 | | immediately before the
damage occurred, as determined | 5 | | in the customary market for the retail sale of
that | 6 | | motor vehicle; and
| 7 | | (2) Actual and reasonable costs incurred by the loss | 8 | | due to theft of the
rental motor vehicle up to $2,000; | 9 | | provided, however, that if it is
established that the | 10 | | renter or an authorized driver failed to exercise ordinary
| 11 | | care while in possession of the vehicle or that the renter | 12 | | or an authorized
driver committed or aided and abetted the | 13 | | commission of the theft, then the
damages shall be the | 14 | | actual and reasonable costs of the rental vehicle up to
| 15 | | its fair market value, as determined by the customary | 16 | | market for the sale of
that vehicle.
| 17 | | For purposes of this subsection (b), for the period prior | 18 | | to June 1, 1998,
the
maximum amount that may be recovered from | 19 | | an authorized driver shall not exceed
$6,000; for the period | 20 | | beginning June 1, 1998 through May 31, 1999, the maximum
| 21 | | recovery shall not exceed $7,500; and for the period beginning | 22 | | June 1, 1999
through May 31, 2000, the maximum recovery shall | 23 | | not exceed $9,000. Beginning
June
1, 2000,
and annually each | 24 | | June 1 thereafter, the maximum amount that may be recovered
| 25 | | from an authorized driver shall be increased by $500 above the | 26 | | maximum recovery
allowed immediately prior to June 1 of that |
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| 1 | | year.
| 2 | | (b-5) (Blank). Limits on liability: vehicle MSRP more than | 3 | | $50,000. The total liability of a renter under subsection (a) | 4 | | for damage to a motor vehicle with a Manufacturer's Suggested | 5 | | Retail Price (MSRP) of more than $50,000 may not exceed all of | 6 | | the following: | 7 | | (1) the lesser of: | 8 | | (A) actual and reasonable costs that the person | 9 | | who rents a motor vehicle to another incurred to | 10 | | repair the motor vehicle or that the rental company | 11 | | would have incurred if the motor vehicle had been | 12 | | repaired, which shall reflect any discounts, price | 13 | | reductions, or adjustments available to the rental | 14 | | company; or | 15 | | (B) the fair market value of that motor vehicle | 16 | | immediately before the damage occurred, as determined | 17 | | in the customary market for the retail sale of that | 18 | | motor vehicle; and | 19 | | (2) the actual and reasonable costs incurred by the | 20 | | loss due to theft of the rental motor vehicle up to | 21 | | $40,000. | 22 | | The maximum recovery for a motor vehicle with a | 23 | | Manufacturer's Suggested Retail Price (MSRP) of more than | 24 | | $50,000 under this subsection (b-5) shall not exceed $40,000 | 25 | | on the effective date of this amendatory Act of the 99th | 26 | | General Assembly. On October 1, 2016, and for the next 3 years |
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| 1 | | thereafter, the maximum amount that may be recovered from an | 2 | | authorized driver under this subsection (b-5) shall be | 3 | | increased by $2,500 above the prior year's maximum recovery. | 4 | | On October 1, 2020, and for each year thereafter, the maximum | 5 | | amount that may be recovered from an authorized driver under | 6 | | this subsection (b-5) shall be increased by $1,000 above the | 7 | | prior year's maximum recovery. | 8 | | (c) Multiple recoveries prohibited. Any person who rents a | 9 | | motor
vehicle to another may not hold the renter liable for any | 10 | | amounts that the
rental company recovers from any other party.
| 11 | | (d) Repair estimates. A person who rents a motor vehicle | 12 | | to another may
not collect or attempt to collect the amount | 13 | | described in subsection (b) or (b-5) unless
the rental company | 14 | | obtains an estimate from a repair company or an appraiser in
| 15 | | the business of providing such appraisals on the costs of | 16 | | repairing the motor
vehicle, makes a copy of the estimate | 17 | | available upon request to the renter who
may be liable under | 18 | | subsection (a), or the insurer of the renter, and submits a
| 19 | | copy of the estimate with any claim to collect the amount | 20 | | described in
subsection (b) or (b-5). In order to collect the | 21 | | amount described in subsection (b-5), a person renting a motor | 22 | | vehicle to another must also provide the renter's personal | 23 | | insurance company with reasonable notice and an opportunity to | 24 | | inspect damages.
| 25 | | (d-5) In the event of loss due to theft of the rental motor | 26 | | vehicle with a MSRP more than $50,000, the rental company |
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| 1 | | shall provide reasonable notice of the theft to the renter's | 2 | | personal insurance company. | 3 | | (e) Duty to mitigate. A claim against a renter resulting | 4 | | from damage or
loss to a rental vehicle must be reasonably and | 5 | | rationally related to the
actual loss incurred. A rental | 6 | | company shall mitigate damages where possible
and shall not | 7 | | assert or collect any claim for physical damage which exceeds | 8 | | the
actual costs of the repair, including all discounts or | 9 | | price reductions.
| 10 | | (f) No rental company shall require a deposit or an | 11 | | advance charge
against
the credit card of a renter, in any | 12 | | form, for damages to a vehicle which is in
the renter's | 13 | | possession, custody, or control. No rental company shall | 14 | | require
any payment for damage to the rental vehicle, upon the | 15 | | renter's return of the
vehicle in a
damaged condition, until | 16 | | after the cost of the damage to the vehicle and
liability | 17 | | therefor is agreed to between the rental company and renter or | 18 | | is
determined pursuant to law.
| 19 | | (g) If insurance coverage exists under the renter's | 20 | | personal insurance
policy and the coverage is confirmed during | 21 | | regular business hours, the renter
may require that the rental
| 22 | | company must submit any claims to the renter's personal | 23 | | insurance carrier as
the renter's agent. The rental company | 24 | | shall not make any written or oral
representations that it | 25 | | will not present claims or negotiate with the renter's
| 26 | | insurance carrier. For purposes of this Section, confirmation |
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| 1 | | of coverage
includes telephone confirmation from insurance | 2 | | company representatives during
regular business hours. After
| 3 | | confirmation of coverage, the amount of claim shall be | 4 | | resolved between the
insurance carrier and the rental company.
| 5 | | (Source: P.A. 99-201, eff. 10-1-15 .)
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