Bill Amendment: IL SB2641 | 2017-2018 | 100th General Assembly

NOTE: For additional amemendments please see the Bill Drafting List

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Bill Title: RENTAL CAR-DAMAGE WAIVER-VOID

Status: 2018-11-29 - Bill Dead - Amendatory Veto [SB2641 Detail]

Download: Illinois-2017-SB2641-House_Amendment_001.html

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Rep. Arthur Turner

Filed: 5/16/2018

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AMENDMENT TO SENATE BILL 2641
AMENDMENT NO. ______. Amend Senate Bill 2641 by replacing
everything after the enacting clause with the following:
"Section 5. The Automobile Renting Occupation and Use Tax
Act is amended by changing Section 2 as follows:
(35 ILCS 155/2) (from Ch. 120, par. 1702)
Sec. 2. Definitions.
"Renting" means any transfer of the possession or right to
possession of an automobile to a user for a valuable
consideration for a period of one year or less, including the
facilitation of a privately-owned passenger motor vehicle for
use by persons other than the vehicle's registered owner as a
part of a personal car facilitation transaction, as defined in
Section 1-159.05 of the Illinois Vehicle Code.
"Renting" does not include making a charge for the use of
an automobile where the rentor, either himself or through an

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

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

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

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

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

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

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

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certified copy of the ordinance or resolution effecting such
change or discontinuance.
The Department of Revenue must upon the request of the
County Clerk or County Board submit to a county a list of those
persons who are registered with the Department to pay
automobile renting occupation tax within the unincorporated
area of that governmental unit. This list shall contain only
the names of persons who have paid the tax and not the amount
of tax paid by such person.
This Section shall be known and may be cited as the "County
Automobile Renting Occupation Tax Law".
(Source: P.A. 86-962.)
Section 15. The Illinois Municipal Code is amended by
changing Section 8-11-7 as follows:
(65 ILCS 5/8-11-7) (from Ch. 24, par. 8-11-7)
Sec. 8-11-7. The corporate authorities of a municipality
may impose a tax upon all persons engaged in the business of
renting automobiles in the municipality at the rate of not to
exceed 1% of the gross receipts from such business. For the
purposes of imposing a tax under this Section, the facilitation
of a privately-owned passenger motor vehicle for use by persons
other than the vehicle's registered owner as a part of a
personal car facilitation transaction, as defined in Section
1-159.05 of the Illinois Vehicle Code, shall constitute

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

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

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Comptroller the disbursement of stated sums of money to named
municipalities, the municipalities to be those from which
rentors have paid taxes or penalties hereunder to the
Department during the second preceding calendar month. The
amount to be paid to each municipality shall be the amount (not
including credit memoranda) collected hereunder during the
second preceding calendar month by the Department, and not
including an amount equal to the amount of refunds made during
the second preceding calendar month by the Department on behalf
of such municipality, less 1.6% of such balance, which sum
shall be retained by the State Treasurer to cover the costs
incurred by the Department in administering and enforcing this
Section as provided herein. The Department at the time of each
monthly disbursement to the municipalities shall prepare and
certify to the Comptroller the amount, so retained by the State
Treasurer, to be paid into the General Revenue Fund of the
State Treasury. Within 10 days after receipt, by the
Comptroller, of the disbursement certification to the
municipalities and the General Revenue Fund, provided for in
this Section to be given to the Comptroller by the Department,
the Comptroller shall cause the orders to be drawn for the
respective amounts in accordance with the directions contained
in such certification.
Nothing in this Section shall be construed to authorize a
municipality to impose a tax upon the privilege of engaging in
any business which under the Constitution of the United States

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may not be made the subject of taxation by this State.
An ordinance or resolution imposing a tax hereunder or
effecting a change in the rate thereof shall be effective on
the first day of the calendar month next following publication
as provided in Section 1-2-4. The corporate authorities of any
municipality which levies a tax authorized by this Section
shall transmit to the Department of Revenue on or not later
than 5 days after publication a certified copy of the ordinance
or resolution imposing such tax whereupon the Department of
Revenue shall proceed to administer and enforce this Section on
behalf of such municipality as of the effective date of the
ordinance or resolution. Upon a change in rate of a tax levied
hereunder, or upon the discontinuance of the tax, the corporate
authorities of the municipality shall on or not later than 5
days after publication of the ordinance or resolution
discontinuing the tax or effecting a change in rate transmit to
the Department of Revenue a certified copy of the ordinance or
resolution effecting such change or discontinuance.
The Department of Revenue must upon the request of the
municipal clerk, city council or village board of trustees
submit to a city, village or incorporated town a list of those
persons who are registered with the Department to pay
automobile renting occupation tax within that governmental
unit. This list shall contain only the names of persons who
have paid the tax and not the amount of tax paid by such
person.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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