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Public Act 102-0497


 

Public Act 0497 102ND GENERAL ASSEMBLY

  
  
  

 


 
Public Act 102-0497
 
HB3712 EnrolledLRB102 16923 RAM 22335 b

    AN ACT concerning transportation.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 1. Short title. This Act may be cited as the
Car-Sharing Program Act.
 
    Section 5. Definitions. As used in this Act:
    "Peer-to-peer car sharing" means the authorized use of a
vehicle by an individual other than the vehicle's owner
through a car-sharing program. "Peer-to-peer car sharing" does
not include "rent a motor vehicle to another" within the
meaning of in Section 6-305 of the Illinois Vehicle Code; a
transaction involving a "rental agreement" as defined in
Section 10 of the Renter's Financial Responsibility and
Protection Act; or "renting" as defined in Section 2 of the
Automobile Renting Occupation and Use Tax Act.
    "Car-sharing agreement" means the terms and conditions
applicable to a shared-vehicle owner and a shared-vehicle
driver that govern the use of a shared vehicle through a
car-sharing program. "Car-sharing agreement" does not include
a "rental agreement" as defined in Section 10 of the Renter's
Financial Responsibility and Protection Act, a "rental
agreement" within the meaning of Section 6-305.2 of the
Illinois Vehicle Code, or a "rental agreement" as defined in
Section 6-305.3 of the Illinois Vehicle Code.
    "Car-sharing period" means the period that commences with
the delivery period, or, if there is no delivery period, that
commences with the car-sharing start time and in either case
ends at the car-sharing termination time.
    "Car-sharing program" means a business platform that
connects vehicle owners with drivers to enable the sharing of
vehicles for financial consideration. "Car-sharing program"
does not include a "rental company" as defined in Section 10 of
the Renter's Financial Responsibility and Protection Act;
"rentor" as defined in Section 2 of the Automobile Renting
Occupation and Use Tax Act; a person or entity whose business
is to "rent a motor vehicle" to another person within the
meaning of Section 6-305 or 6-305.2 of the Illinois Vehicle
Code; or a "rental car company" as that term is used in Section
6-305 of the Illinois Vehicle Code. A "car-sharing program" is
not "engaged in the business of renting automobiles" within
the meaning of Section 5-1032 of the Counties Code or Section
8-11-7 of the Illinois Municipal Code.
    "Car-sharing start time" means the time when the shared
vehicle becomes subject to the control of the shared-vehicle
driver at or after the time the reservation of a shared vehicle
is scheduled to begin as documented in the records of a
car-sharing program.
    "Car-sharing termination time" means the earliest of the
following events:
        (1) the expiration of the agreed-upon period
    established for the use of a shared vehicle according to
    the terms of the car-sharing agreement if the shared
    vehicle is delivered to the location agreed upon in the
    car-sharing agreement;
        (2) the time the shared vehicle is returned to a
    location as alternatively agreed upon by the
    shared-vehicle owner and shared-vehicle driver as
    communicated through a car-sharing program, which
    alternatively agreed-upon location shall be incorporated
    into the car-sharing agreement; or
        (3) the time the shared-vehicle owner or the
    shared-vehicle owner's authorized designee takes
    possession and control of the shared vehicle.
    "Delivery period" means the period during which a shared
vehicle is being delivered to the location of the car-sharing
start time, if applicable, as documented by the governing
car-sharing agreement.
    "Shared vehicle" means a vehicle that is available for
sharing through a car-sharing program. "Shared vehicle" does
not include a rental vehicle within the meaning of Section
6-305.2 of the Illinois Vehicle Code.
    "Shared-vehicle driver" means an individual who has been
authorized to drive the shared vehicle by the shared-vehicle
owner under a car-sharing agreement.
    "Shared-vehicle owner" means the registered owner, or a
person or entity designated by the registered owner, of a
vehicle made available for sharing to shared-vehicle drivers
through a car-sharing program. "Shared-vehicle owner" does not
include a "rental company" as defined in Section 10 of the
Renter's Financial Responsibility and Protection Act; a
"rentor" as defined in Section 2 of the Automobile Renting
Occupation and Use Tax Act; a person or entity whose business
is to "rent a motor vehicle" to another person within the
meaning of Section 6-305 or 6-305.2 of the Illinois Vehicle
Code; or a "rental car company" as that term is used in Section
6-305 of the Illinois Vehicle Code. A "shared-vehicle owner"
is not "engaged in the business of renting automobiles" within
the meaning of Section 5-1032 of the Counties Code or Section
8-11-7 of the Illinois Municipal Code.
 
    Section 10. Insurance coverage during car-sharing period.
    (a) Except as provided in subsection (b), a car-sharing
program shall assume liability of a shared-vehicle owner for
bodily injury or property damage to third parties or uninsured
and underinsured motorist or personal injury protection losses
during the car-sharing period in an amount stated in the
car-sharing agreement, which amount may not be less than 4
times the minimum amounts required under Section 7-601 of the
Illinois Vehicle Code.
    (b) Notwithstanding the definition of "car-sharing
termination time" set forth in Section 5, the assumption of
liability under subsection (a) does not apply to any
shared-vehicle owner when:
        (1) the shared-vehicle owner makes an intentional or
    fraudulent material misrepresentation or omission to the
    car-sharing program before the car-sharing period in which
    the loss occurred; or
        (2) the shared-vehicle owner acts in concert with a
    shared-vehicle driver who fails to return the shared
    vehicle pursuant to the terms of car-sharing agreement.
    (c) Notwithstanding the definition of "car-sharing
termination time" set forth in Section 5, the assumption of
liability under subsection (a) applies to bodily injury,
property damage, and uninsured and underinsured motorist or
personal injury protection losses by damaged third parties
required by Section 7-601 of the Illinois Vehicle Code.
    (d) A car-sharing program shall ensure that, during each
car-sharing period, the shared-vehicle owner and the
shared-vehicle driver are insured under a motor vehicle
liability insurance policy that provides insurance coverage in
amounts that, for the shared-vehicle driver, are equal to 2
times the minimum amounts set forth in Section 7-601 of the
Illinois Vehicle Code and:
        (1) recognizes that the shared vehicle insured under
    the policy is made available and used through a
    car-sharing program; or
        (2) does not exclude use of a shared vehicle by a
    shared-vehicle driver.
    (e) The insurance described under subsection (d) may be
satisfied by motor vehicle liability insurance maintained by:
        (1) a shared-vehicle owner;
        (2) a shared-vehicle driver;
        (3) a car-sharing program; or
        (4) a combination of a shared-vehicle owner, a
    shared-vehicle driver, and a car-sharing program.
    (f) The insurance described in subsection (e) that is
satisfying the insurance requirement of subsection (d) shall
be primary during each car-sharing period, and if a claim
occurs in another state with minimum financial responsibility
limits higher than those set forth in Section 7-601 of the
Illinois Vehicle Code during the car-sharing period, the
coverage maintained under subsection (e) shall satisfy the
difference in minimum coverage amounts up to the applicable
policy limits.
    (g) The insurer, insurers, or car-sharing program shall
assume primary liability for a claim if it is in whole or in
part providing the insurance required under subsections (d)
and (e) and:
        (1) a dispute exists regarding who was in control of
    the shared vehicle at the time of the loss and the
    car-sharing program does not have available, did not
    retain, or fails to provide the information required by
    Section 25; or
        (2) a dispute exists as to whether the shared vehicle
    was returned to the alternatively agreed-upon location
    referenced in Section 5.
    (h) If insurance maintained by a shared-vehicle owner or
shared-vehicle driver in accordance with subsection (e) has
lapsed or does not provide the required coverage, insurance
maintained by a car-sharing program shall provide the coverage
required by subsection (d) beginning with the first dollar of
a claim and shall have the duty to defend the claim except
under circumstances as set forth in subsection (b).
    (i) An insurance policy maintained by the car-sharing
program shall not make the coverage dependent on another
automobile insurer or policy first denying a claim.
    (j) Nothing in this Section:
        (1) limits the liability of the car-sharing program
    for any act or omission of the car-sharing program itself
    that results in injury to any person as a result of the use
    of a shared vehicle through a car-sharing program; or
        (2) limits the ability of the car-sharing program to,
    by contract, seek indemnification from the shared-vehicle
    owner or the shared-vehicle driver for economic loss
    sustained by the car-sharing program resulting from a
    breach of the terms and conditions of the car-sharing
    agreement.
 
    Section 15. Notification of implications of lien. At the
time a vehicle owner registers as a shared-vehicle owner on a
car-sharing program and before the time when the
shared-vehicle owner makes a shared vehicle available for car
sharing on the car-sharing program, the car-sharing program
shall notify the shared-vehicle owner that, if the shared
vehicle has a lien against it, the use of the shared vehicle
through a car-sharing program, including use without physical
damage coverage, may violate the terms of the contract with
the lienholder.
 
    Section 20. Exclusions in motor vehicle liability
insurance policies.
    (a) An authorized insurer that writes motor vehicle
liability insurance in this State may exclude any coverage and
the duty to defend or indemnify for any claim afforded under a
shared-vehicle owner's motor vehicle liability insurance
policy, including, but not limited to:
        (1) liability coverage for bodily injury and property
    damage;
        (2) uninsured and underinsured motorist coverage;
        (3) medical payments coverage;
        (4) comprehensive physical damage coverage; and
        (5) collision physical damage coverage.
    (b) Nothing in this Act invalidates or limits an exclusion
contained in a motor vehicle liability insurance policy,
including any insurance policy in use or approved for use that
excludes coverage for motor vehicles made available for rent,
sharing, or hire, or for any business use.
    (c) Nothing in this Act invalidates, limits, or restricts
an insurer's ability under existing law to underwrite any
insurance policy. Nothing in this Act invalidates, limits, or
restricts an insurer's ability under existing law to cancel
and non-renew policies.
 
    Section 25. Recordkeeping; use of vehicle in car sharing.
A car-sharing program shall collect and verify records
pertaining to the use of a vehicle, including, but not limited
to, times used, car-sharing period pick up and drop off
locations, fees paid by the shared-vehicle driver, and
revenues received by the shared-vehicle owner, and the
car-sharing program shall provide that information upon
request to the shared-vehicle owner, the shared-vehicle
owner's insurer, or the shared-vehicle driver's insurer to
facilitate a claim coverage investigation, settlement,
negotiation, or litigation. The car-sharing program shall
retain the records for a period not less than the applicable
personal injury statute of limitations.
 
    Section 30. Exemption; vicarious liability. A car-sharing
program and a shared-vehicle owner shall be exempt from
vicarious liability consistent with 49 U.S.C. 30106 and under
any State or local law that imposes liability solely based on
vehicle ownership.
 
    Section 35. Recovery against indemnification. A motor
vehicle insurer that defends or indemnifies a claim against a
shared vehicle that is excluded under the terms of its policy
shall have the right to seek recovery against the motor
vehicle insurer of the car-sharing program if the claim is:
        (1) made against the shared-vehicle owner or the
    shared-vehicle driver for loss or injury that occurs
    during the car-sharing period; and
        (2) excluded under the terms of its policy.
 
    Section 40. Insurable interest.
    (a) Notwithstanding any other law, statute, rule, or
regulation to the contrary, a car-sharing program shall have
an insurable interest in a shared vehicle during the
car-sharing period and may provide or offer to provide
coverage to a shared-vehicle owner or a shared-vehicle driver
under the policy of insurance described in subsection (c).
    (b) Nothing in this Section shall be construed as
modifying the obligations of the car-sharing program pursuant
to Section 10.
    (c) A car-sharing program may own and maintain, as the
named insured, one or more policies of motor vehicle liability
insurance that separately or in combination provides coverage
for:
        (1) liabilities assumed by the car-sharing program
    under a car-sharing agreement;
        (2) any liability of the shared-vehicle owner;
        (3) damage or loss to the shared vehicle; or
        (4) any liability of the shared-vehicle driver.
 
    Section 45. Consumer protection disclosures. Each
car-sharing agreement made in this State shall disclose to the
shared-vehicle owner and the shared-vehicle driver:
        (1) Any right of the car-sharing program to seek
    indemnification from the shared-vehicle owner or the
    shared-vehicle driver for economic loss sustained by the
    car-sharing program resulting from a breach of the terms
    and conditions of the car-sharing agreement.
        (2) That a motor vehicle liability insurance policy
    issued to the shared-vehicle owner for the shared vehicle
    or to the shared-vehicle driver does not provide a defense
    or indemnification for any claim asserted by the
    car-sharing program.
        (3) That the car-sharing program's insurance coverage
    on the shared-vehicle owner and the shared-vehicle driver
    is in effect only during each car-sharing period and that,
    for any use of the shared vehicle by the shared-vehicle
    driver after the car-sharing termination time, the
    shared-vehicle driver and the shared-vehicle owner may not
    have insurance coverage.
        (4) The daily rate, fees, and, if applicable, any
    insurance or protection package costs that are charged to
    the shared-vehicle owner or the shared-vehicle driver.
        (5) That the shared-vehicle owner's motor vehicle
    liability insurance may not provide coverage for a shared
    vehicle.
        (6) An emergency telephone number for personnel
    capable of fielding roadside assistance and other customer
    service inquiries.
        (7) If there are conditions under which a
    shared-vehicle driver shall maintain a personal automobile
    insurance policy with certain applicable coverage limits
    on a primary basis in order to book a shared vehicle.
 
    Section 50. Driver's license verification and data
retention.
    (a) A car-sharing program may not enter into a car-sharing
agreement with a driver unless the driver who will operate the
shared vehicle:
        (1) holds a driver's license issued under the laws of
    this State that authorizes the driver to operate vehicles
    of the class of the shared vehicle; or
        (2) is a nonresident who:
            (i) has a driver's license issued by the state or
        country of the driver's residence that authorizes the
        driver in that state or country to drive vehicles of
        the class of the shared vehicle; and
            (ii) is at least the same age as that required of a
        resident to drive; or
        (3) otherwise is specifically authorized under the
    laws of this State to drive vehicles of the class of the
    shared vehicle.
    (b) A car-sharing program shall keep a record of:
        (1) the name and address of the shared-vehicle driver;
        (2) the number of the driver's license of the
    shared-vehicle driver and each other person, if any, who
    will operate the shared vehicle; and
        (3) the place of issuance of the driver's license.
 
    Section 55. Responsibility for equipment. A car-sharing
program shall have sole responsibility for any equipment, such
as a GPS system or other special equipment, that is put in or
on the vehicle to monitor or facilitate the car-sharing
transaction, and shall agree to indemnify and hold harmless
the vehicle owner for any damage to or theft of such equipment
during the car-sharing period not caused by the vehicle owner.
The car-sharing program has the right to seek recovery from
the shared-vehicle driver for any loss or damage to such
equipment that occurs during the car-sharing period.
 
    Section 60. Automobile safety recalls.
    (a) At the time a vehicle owner registers as a
shared-vehicle owner on a car-sharing program and before the
time the shared-vehicle owner makes a shared vehicle available
for car sharing on the car-sharing program, the car-sharing
program shall:
        (1) verify that the shared vehicle does not have any
    safety recalls on the vehicle for which the repairs have
    not been made; and
        (2) notify the shared-vehicle owner of the
    requirements under subsection (b).
    (b) (1) If the shared-vehicle owner has received an actual
notice of a safety recall on the vehicle, a shared-vehicle
owner may not make a vehicle available as a shared vehicle on a
car-sharing program until the safety recall repair has been
made.
    (2) If a shared-vehicle owner receives an actual notice of
a safety recall on a shared vehicle while the shared vehicle is
made available on the car-sharing program, the shared-vehicle
owner shall remove the shared vehicle from availability on the
car-sharing program, as soon as practicably possible after
receiving the notice of the safety recall and until the safety
recall repair has been made.
    (3) If a shared-vehicle owner receives an actual notice of
a safety recall while the shared vehicle is being used in the
possession of a shared-vehicle driver, as soon as practicably
possible after receiving the notice of the safety recall, the
shared-vehicle owner shall notify the car-sharing program
about the safety recall so that the shared-vehicle owner may
address the safety recall repair.
 
    Section 99. Effective date. This Act takes effect January
1, 2022.

Effective Date: 1/1/2022