Bill Text: IL SB2412 | 2021-2022 | 102nd General Assembly | Introduced
Bill Title: Creates the Car-Sharing Program Act. Provides that nothing in the Act shall be construed to extend beyond insurance or have any implications for other State law unless specifically provided. Adds provisions governing: insurance coverage requirements during car-sharing periods; notification of implications of lien; exclusions in motor vehicle liability insurance policies; recordkeeping requirements; vicarious liability; contribution against indemnification; insurable interests; consumer protection disclosures; driver's license verification; data retention; responsibility for equipment; and automobile safety recalls. Effective January 1, 2023.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2021-04-16 - Rule 3-9(a) / Re-referred to Assignments [SB2412 Detail]
Download: Illinois-2021-SB2412-Introduced.html
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1 | AN ACT concerning transportation.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 1. Short title. This Act may be cited as the | |||||||||||||||||||
5 | Car-Sharing Program Act.
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6 | Section 5. Scope. This Act is intended to govern the | |||||||||||||||||||
7 | intersection of car-sharing services and the State-regulated | |||||||||||||||||||
8 | business of insurance, and shall not be construed to extend | |||||||||||||||||||
9 | beyond insurance or have any implications for other State law | |||||||||||||||||||
10 | unless specifically provided.
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11 | Section 10. Definitions. As used in this Act: | |||||||||||||||||||
12 | "Car sharing" means the authorized use of a vehicle by an | |||||||||||||||||||
13 | individual other than the vehicle's owner through a | |||||||||||||||||||
14 | car-sharing program. "Car sharing" does not include a rental | |||||||||||||||||||
15 | car or rental activity. | |||||||||||||||||||
16 | "Car-sharing agreement" means the terms and conditions | |||||||||||||||||||
17 | applicable to a shared-vehicle owner and a shared-vehicle | |||||||||||||||||||
18 | driver that govern the use of a shared vehicle through a | |||||||||||||||||||
19 | car-sharing program. "Car-sharing agreement" does not include | |||||||||||||||||||
20 | a rental car agreement. | |||||||||||||||||||
21 | "Car-sharing period" means the period that commences with | |||||||||||||||||||
22 | the delivery period, or, if there is no delivery period, that |
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1 | commences with the car-sharing start time and in either case | ||||||
2 | ends at the car-sharing termination time. | ||||||
3 | "Car-sharing program" means a business platform that | ||||||
4 | connects vehicle owners with drivers to enable the sharing of | ||||||
5 | vehicles for financial consideration. "Car-sharing program" | ||||||
6 | does not include: (1) a rental car company; or (2) a service | ||||||
7 | provider that is solely providing hardware or software as a | ||||||
8 | service to a person or entity that is not effectuating payment | ||||||
9 | of financial consideration for use of a shared vehicle. | ||||||
10 | "Car-sharing start time" means the time when the shared | ||||||
11 | vehicle becomes subject to the control of the shared-vehicle | ||||||
12 | driver at or after the time the reservation of a shared vehicle | ||||||
13 | is scheduled to begin as documented in the records of a | ||||||
14 | car-sharing program. | ||||||
15 | "Car-sharing termination time" means the earliest of the | ||||||
16 | following events: | ||||||
17 | (1) the expiration of the agreed-upon period | ||||||
18 | established for the use of a shared vehicle according to | ||||||
19 | the terms of the car-sharing agreement if the shared | ||||||
20 | vehicle is delivered to the location agreed upon in the | ||||||
21 | car-sharing agreement; | ||||||
22 | (2) the time the shared vehicle is returned to a | ||||||
23 | location as alternatively agreed upon by the | ||||||
24 | shared-vehicle owner and shared-vehicle driver as | ||||||
25 | communicated through a car-sharing program; or | ||||||
26 | (3) the time the shared-vehicle owner or the |
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1 | shared-vehicle owner's authorized designee takes | ||||||
2 | possession and control of the shared vehicle.
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3 | "Delivery period" means the period during which a shared | ||||||
4 | vehicle is being delivered to the location of the car-sharing | ||||||
5 | start time, if applicable, as documented by the governing | ||||||
6 | car-sharing agreement. | ||||||
7 | "Shared vehicle" means a vehicle that is available for | ||||||
8 | sharing through a car-sharing program. "Shared vehicle" does | ||||||
9 | not include a rental car or rental vehicle. | ||||||
10 | "Shared-vehicle driver" means an individual who has been | ||||||
11 | authorized to drive the shared vehicle by the shared-vehicle | ||||||
12 | owner under a car-sharing agreement. | ||||||
13 | "Shared-vehicle owner" means the registered owner, or a | ||||||
14 | person or entity designated by the registered owner, of a | ||||||
15 | vehicle made available for sharing to shared-vehicle drivers | ||||||
16 | through a car-sharing program.
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17 | Section 15. Insurance coverage during car-sharing period.
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18 | (a) Except as provided in subsection (b), a car-sharing | ||||||
19 | program shall assume liability of a shared-vehicle owner for | ||||||
20 | bodily injury or property damage to third parties or uninsured | ||||||
21 | and underinsured motorist or personal injury protection losses | ||||||
22 | during the car-sharing period in an amount stated in the | ||||||
23 | car-sharing agreement, which amount may not be less than that | ||||||
24 | set forth in Section 7-601 of the Illinois Vehicle Code. | ||||||
25 | (b) Notwithstanding the definition of "car-sharing |
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1 | termination time" set forth in Section 10, the assumption of | ||||||
2 | liability under subsection (a) does not apply to any | ||||||
3 | shared-vehicle owner if: | ||||||
4 | (1) the shared-vehicle owner makes an intentional or | ||||||
5 | fraudulent material misrepresentation or omission to the | ||||||
6 | car-sharing program before the car-sharing period in which | ||||||
7 | the loss occurred; or | ||||||
8 | (2) the shared-vehicle owner is acting in concert with | ||||||
9 | a shared-vehicle driver who fails to return the shared | ||||||
10 | vehicle pursuant to the terms of car-sharing agreement. | ||||||
11 | (c) Notwithstanding the definition of "car-sharing | ||||||
12 | termination time" set forth in Section 10, the assumption of | ||||||
13 | liability under subsection (a) applies to bodily injury, | ||||||
14 | property damage, and uninsured and underinsured motorist or | ||||||
15 | personal injury protection losses by damaged third parties | ||||||
16 | required by Section 7-601 of the Illinois Vehicle Code. | ||||||
17 | (d) A car-sharing program shall ensure that, during each | ||||||
18 | car-sharing period, the shared-vehicle owner and the | ||||||
19 | shared-vehicle driver are insured under a motor vehicle | ||||||
20 | liability insurance policy that provides insurance coverage in | ||||||
21 | amounts no less than the minimum amounts set forth in Section | ||||||
22 | 7-601 of the Illinois Vehicle Code and: | ||||||
23 | (1) recognizes that the shared vehicle insured under | ||||||
24 | the policy is made available and used through a | ||||||
25 | car-sharing program; or | ||||||
26 | (2) does not exclude use of a shared vehicle by a |
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1 | shared-vehicle driver. | ||||||
2 | (e) The insurance described under subsection (d) may be | ||||||
3 | satisfied by motor vehicle liability insurance maintained by: | ||||||
4 | (1) a shared-vehicle owner; | ||||||
5 | (2) a shared-vehicle driver; | ||||||
6 | (3) a car-sharing program; or | ||||||
7 | (4) a combination of a shared-vehicle owner, a | ||||||
8 | shared-vehicle driver, and a car-sharing program. | ||||||
9 | (f) The insurance described in subsection (e) that is | ||||||
10 | satisfying the insurance requirement of subsection (d) shall | ||||||
11 | be primary during each car-sharing period. | ||||||
12 | (g) The car-sharing program shall assume primary liability | ||||||
13 | for a claim if it is in whole or in part providing the | ||||||
14 | insurance required under subsections (d) and (e) and: | ||||||
15 | (1) a dispute exists as to who was in control of the | ||||||
16 | shared vehicle at the time of the loss; and
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17 | (2) the car-sharing program does not have available, | ||||||
18 | did not retain, or fails to provide the information | ||||||
19 | required by Section 30. | ||||||
20 | The shared vehicle's insurer shall indemnify the | ||||||
21 | car-sharing program to the extent of its obligation under, if | ||||||
22 | any, the applicable insurance policy, if it is determined that | ||||||
23 | the shared vehicle's owner was in control of the shared | ||||||
24 | vehicle at the time of the loss. | ||||||
25 | (h) If insurance maintained by a shared-vehicle owner or | ||||||
26 | shared-vehicle driver in accordance with subsection (e) has |
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1 | lapsed or does not provide the required coverage, insurance | ||||||
2 | maintained by a car-sharing program shall provide the coverage | ||||||
3 | required by subsection (d) beginning with the first dollar of | ||||||
4 | a claim and shall have the duty to defend the claim except | ||||||
5 | under circumstances as set forth in subsection (b). | ||||||
6 | (i) An insurance policy maintained by the car-sharing | ||||||
7 | program shall not make the coverage dependent on another | ||||||
8 | automobile insurer or policy first denying a claim. | ||||||
9 | (j) Nothing in this Section: | ||||||
10 | (1) limits the liability of the car-sharing program | ||||||
11 | for any act or omission of the car-sharing program itself | ||||||
12 | that results in injury to any person as a result of the use | ||||||
13 | of a shared vehicle through a car-sharing program; or | ||||||
14 | (2) limits the ability of the car-sharing program to, | ||||||
15 | by contract, seek indemnification from the shared-vehicle | ||||||
16 | owner or the shared-vehicle driver for economic loss | ||||||
17 | sustained by the car-sharing program resulting from a | ||||||
18 | breach of the terms and conditions of the car-sharing | ||||||
19 | agreement.
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20 | Section 20. Notification of implications of lien. At the | ||||||
21 | time a vehicle owner registers as a shared-vehicle owner on a | ||||||
22 | car-sharing program and before the time when the | ||||||
23 | shared-vehicle owner makes a shared vehicle available for car | ||||||
24 | sharing on the car-sharing program, the car-sharing program | ||||||
25 | shall notify the shared-vehicle owner that, if the shared |
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1 | vehicle has a lien against it, the use of the shared vehicle | ||||||
2 | through a car-sharing program, including use without physical | ||||||
3 | damage coverage, may violate the terms of the contract with | ||||||
4 | the lienholder.
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5 | Section 25. Exclusions in motor vehicle liability | ||||||
6 | insurance policies.
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7 | (a) An authorized insurer that writes motor vehicle | ||||||
8 | liability insurance in this State may exclude any coverage and | ||||||
9 | the duty to defend or indemnify for any claim afforded under a | ||||||
10 | shared-vehicle owner's motor vehicle liability insurance | ||||||
11 | policy, including, but not limited to: | ||||||
12 | (1) liability coverage for bodily injury and property | ||||||
13 | damage; | ||||||
14 | (2) uninsured and underinsured motorist coverage; | ||||||
15 | (3) medical payments coverage; | ||||||
16 | (4) comprehensive physical damage coverage; and | ||||||
17 | (5) collision physical damage coverage. | ||||||
18 | (b) Nothing in this Act invalidates or limits an exclusion | ||||||
19 | contained in a motor vehicle liability insurance policy, | ||||||
20 | including any insurance policy in use or approved for use that | ||||||
21 | excludes coverage for motor vehicles made available for rent, | ||||||
22 | sharing, or hire, or for any business use.
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23 | Section 30. Recordkeeping; use of vehicle in car sharing. | ||||||
24 | A car-sharing program shall collect and verify records |
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1 | pertaining to the use of a vehicle, including, but not limited | ||||||
2 | to, times used, fees paid by the shared-vehicle driver, and | ||||||
3 | revenues received by the shared-vehicle owner, and the | ||||||
4 | car-sharing program shall provide that information upon | ||||||
5 | request to the shared-vehicle owner, the shared-vehicle | ||||||
6 | owner's insurer, or the shared-vehicle driver's insurer to | ||||||
7 | facilitate a claim coverage investigation. The car-sharing | ||||||
8 | program shall retain the records for a period not less than the | ||||||
9 | applicable personal injury statute of limitations.
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10 | Section 35. Exemption; vicarious liability. A car-sharing | ||||||
11 | program and a shared-vehicle owner shall be exempt from | ||||||
12 | vicarious liability in accordance with 49 U.S.C. 30106 and | ||||||
13 | under any State or local law that imposes liability solely | ||||||
14 | based on vehicle ownership.
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15 | Section 40. Contribution against indemnification. A motor | ||||||
16 | vehicle insurer that defends or indemnifies a claim against a | ||||||
17 | shared vehicle that is excluded under the terms of its policy | ||||||
18 | shall have the right to seek contribution against the motor | ||||||
19 | vehicle insurer of the car-sharing program if the claim is: | ||||||
20 | (1) made against the shared-vehicle owner or the | ||||||
21 | shared-vehicle driver for loss or injury that occurs | ||||||
22 | during the car-sharing period; and | ||||||
23 | (2) excluded under the terms of its policy.
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1 | Section 45. Insurable interest.
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2 | (a) Notwithstanding any other law, statute, rule, or | ||||||
3 | regulation to the contrary, a car-sharing program shall have | ||||||
4 | an insurable interest in a shared vehicle during the | ||||||
5 | car-sharing period. | ||||||
6 | (b) Nothing in this Section requires a car-sharing program | ||||||
7 | to maintain the coverage mandated by Section 15. | ||||||
8 | (c) A car-sharing program may own and maintain, as the | ||||||
9 | named insured, one or more policies of motor vehicle liability | ||||||
10 | insurance that provides coverage for: | ||||||
11 | (1) liabilities assumed by the car-sharing program | ||||||
12 | under a car-sharing agreement; | ||||||
13 | (2) any liability of the shared-vehicle owner; | ||||||
14 | (3) damage or loss to the shared vehicle; or | ||||||
15 | (4) any liability of the shared-vehicle driver.
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16 | Section 50. Consumer protection disclosures. Each | ||||||
17 | car-sharing agreement made in this State shall disclose to the | ||||||
18 | shared-vehicle owner and the shared-vehicle driver: | ||||||
19 | (1) Any right of the car-sharing program to seek | ||||||
20 | indemnification from the shared-vehicle owner or the | ||||||
21 | shared-vehicle driver for economic loss sustained by the | ||||||
22 | car-sharing program resulting from a breach of the terms | ||||||
23 | and conditions of the car-sharing agreement. | ||||||
24 | (2) That a motor vehicle liability insurance policy | ||||||
25 | issued to the shared-vehicle owner for the shared vehicle |
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1 | or to the shared-vehicle driver does not provide a defense | ||||||
2 | or indemnification for any claim asserted by the | ||||||
3 | car-sharing program. | ||||||
4 | (3) That the car-sharing program's insurance coverage | ||||||
5 | on the shared-vehicle owner and the shared-vehicle driver | ||||||
6 | is in effect only during each car-sharing period and that, | ||||||
7 | for any use of the shared vehicle by the shared-vehicle | ||||||
8 | driver after the car-sharing termination time, the | ||||||
9 | shared-vehicle driver and the shared-vehicle owner may not | ||||||
10 | have insurance coverage. | ||||||
11 | (4) The daily rate, fees, and, if applicable, any | ||||||
12 | insurance or protection package costs that are charged to | ||||||
13 | the shared-vehicle owner or the shared-vehicle driver. | ||||||
14 | (5) That the shared-vehicle owner's motor vehicle | ||||||
15 | liability insurance may not provide coverage for a shared | ||||||
16 | vehicle. | ||||||
17 | (6) An emergency telephone number for personnel | ||||||
18 | capable of fielding roadside assistance and other customer | ||||||
19 | service inquiries. | ||||||
20 | (7) If there are conditions under which a | ||||||
21 | shared-vehicle driver shall maintain a personal automobile | ||||||
22 | insurance policy with certain applicable coverage limits | ||||||
23 | on a primary basis in order to book a shared vehicle.
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24 | Section 55. Driver's license verification and data | ||||||
25 | retention.
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1 | (a) A car-sharing program may not enter into a car-sharing | ||||||
2 | agreement with a driver unless the driver who will operate the | ||||||
3 | shared vehicle: | ||||||
4 | (1) holds a driver's license issued under the laws of | ||||||
5 | this State that authorizes the driver to
operate vehicles | ||||||
6 | of the class of the shared vehicle; or | ||||||
7 | (2) is a nonresident who: | ||||||
8 | (i) has a driver's license issued by the state or | ||||||
9 | country of the driver's residence that authorizes the | ||||||
10 | driver in that state or country to drive vehicles of | ||||||
11 | the class of the shared vehicle; and | ||||||
12 | (ii) is at least the same age as that required of a | ||||||
13 | resident to drive; or | ||||||
14 | (3) otherwise is specifically authorized under the | ||||||
15 | laws of this State to drive vehicles of the class of the | ||||||
16 | shared vehicle. | ||||||
17 | (b) A car-sharing program shall keep a record of: | ||||||
18 | (1) the name and address of the shared-vehicle driver; | ||||||
19 | (2) the number of the driver's license of the | ||||||
20 | shared-vehicle driver and each other person, if any, who | ||||||
21 | will operate the shared vehicle; and | ||||||
22 | (3) the place of issuance of the driver's license.
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23 | Section 60. Responsibility for equipment. A car-sharing | ||||||
24 | program shall have sole responsibility for any equipment, such | ||||||
25 | as a GPS system or other special equipment, that is put in or |
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1 | on the vehicle to monitor or facilitate the car-sharing | ||||||
2 | transaction, and shall agree to indemnify and hold harmless | ||||||
3 | the vehicle owner for any damage to or theft of such equipment | ||||||
4 | during the car-sharing period not caused by the vehicle owner. | ||||||
5 | The car-sharing program has the right to seek indemnity from | ||||||
6 | the shared-vehicle driver for any loss or damage to such | ||||||
7 | equipment that occurs during the car-sharing period.
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8 | Section 65. Automobile safety recalls.
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9 | (a) At the time a vehicle owner registers as a | ||||||
10 | shared-vehicle owner on a car-sharing program and before the | ||||||
11 | time the shared-vehicle owner makes a shared vehicle available | ||||||
12 | for car sharing on the car-sharing program, the car-sharing | ||||||
13 | program shall: | ||||||
14 | (1) verify that the shared vehicle does not have any | ||||||
15 | safety recalls on the vehicle for which the repairs have | ||||||
16 | not been made; and | ||||||
17 | (2) notify the shared-vehicle owner of the | ||||||
18 | requirements under subsection (b). | ||||||
19 | (b) (1) If the shared-vehicle owner has received an actual | ||||||
20 | notice of a safety recall on the vehicle, a shared-vehicle | ||||||
21 | owner may not make a vehicle available as a shared vehicle on a | ||||||
22 | car-sharing program until the safety recall repair has been | ||||||
23 | made. | ||||||
24 | (2) If a shared-vehicle owner receives an actual notice of | ||||||
25 | a safety recall on a shared vehicle while the shared vehicle is |
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1 | made available on the car-sharing program, the shared-vehicle | ||||||
2 | owner shall remove the shared vehicle from availability on the | ||||||
3 | car-sharing program, as soon as practicably possible after | ||||||
4 | receiving the notice of the safety recall and until the safety | ||||||
5 | recall repair has been made. | ||||||
6 | (3) If a shared-vehicle owner receives an actual notice of | ||||||
7 | a safety recall while the shared vehicle is being used in the | ||||||
8 | possession of a shared-vehicle driver, as soon as practicably | ||||||
9 | possible after receiving the notice of the safety recall, the | ||||||
10 | shared-vehicle owner shall notify the car-sharing program | ||||||
11 | about the safety recall so that the shared-vehicle owner may | ||||||
12 | address the safety recall repair.
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13 | Section 99. Effective date. This Act takes effect January | ||||||
14 | 1, 2023.
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