Bill Amendment: IL SB0626 | 2015-2016 | 99th General Assembly
NOTE: For additional amemendments please see the Bill Drafting List
Bill Title: VEH CD-LIABILITY OF RENTER
Status: 2015-07-30 - Public Act . . . . . . . . . 99-0201 [SB0626 Detail]
Download: Illinois-2015-SB0626-Senate_Amendment_002.html
Bill Title: VEH CD-LIABILITY OF RENTER
Status: 2015-07-30 - Public Act . . . . . . . . . 99-0201 [SB0626 Detail]
Download: Illinois-2015-SB0626-Senate_Amendment_002.html
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1 | AMENDMENT TO SENATE BILL 626
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2 | AMENDMENT NO. ______. Amend Senate Bill 626 by replacing | ||||||
3 | everything after the enacting clause with the following:
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4 | "Section 5. The Illinois Vehicle Code is amended by | ||||||
5 | changing Section 6-305.2 as follows:
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6 | (625 ILCS 5/6-305.2)
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7 | Sec. 6-305.2. Limited liability for damage.
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8 | (a) Damage to private
passenger vehicle. A person who rents | ||||||
9 | a motor vehicle to another may hold
the renter liable to the | ||||||
10 | extent permitted under subsections (b) through (d) for
physical | ||||||
11 | or mechanical damage to the rented motor vehicle that occurs | ||||||
12 | during
the time the motor vehicle is under the rental | ||||||
13 | agreement.
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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 |
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1 | (MSRP) of $50,000 or less may not exceed all of the following:
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2 | (1) The lesser of:
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3 | (A) Actual and reasonable costs that the person who | ||||||
4 | rents a motor
vehicle to another incurred to repair the | ||||||
5 | motor vehicle or that the rental
company would have | ||||||
6 | incurred if the motor vehicle had been
repaired, which | ||||||
7 | shall reflect any discounts, price reductions, or | ||||||
8 | adjustments
available to the rental company; or
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9 | (B) The fair market value of that motor vehicle | ||||||
10 | immediately before the
damage occurred, as determined | ||||||
11 | in the customary market for the retail sale of
that | ||||||
12 | motor vehicle; and
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13 | (2) Actual and reasonable costs incurred by the loss | ||||||
14 | due to theft of the
rental motor vehicle up to $2,000; | ||||||
15 | provided, however, that if it is
established that the | ||||||
16 | renter or an authorized driver failed to exercise ordinary
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17 | care while in possession of the vehicle or that the renter | ||||||
18 | or an authorized
driver committed or aided and abetted the | ||||||
19 | commission of the theft, then the
damages shall be the | ||||||
20 | actual and reasonable costs of the rental vehicle up to
its | ||||||
21 | fair market value, as determined by the customary market | ||||||
22 | for the sale of
that vehicle.
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23 | For purposes of this subsection (b), for the period prior | ||||||
24 | to June 1, 1998,
the
maximum amount that may be recovered from | ||||||
25 | an authorized driver shall not exceed
$6,000; for the period | ||||||
26 | beginning June 1, 1998 through May 31, 1999, the maximum
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1 | recovery shall not exceed $7,500; and for the period beginning | ||||||
2 | June 1, 1999
through May 31, 2000, the maximum recovery shall | ||||||
3 | not exceed $9,000. Beginning
June
1, 2000,
and annually each | ||||||
4 | June 1 thereafter, the maximum amount that may be recovered
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5 | from an authorized driver shall be increased by $500 above the | ||||||
6 | maximum recovery
allowed immediately prior to June 1 of that | ||||||
7 | year.
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8 | (b-5) Limits on liability: vehicle MSRP more than $50,000. | ||||||
9 | The total liability of a renter under subsection (a) for damage | ||||||
10 | to a motor vehicle with a Manufacturer's Suggested Retail Price | ||||||
11 | (MSRP) of more than $50,000 may not exceed all of the | ||||||
12 | following: | ||||||
13 | (1) the lesser of: | ||||||
14 | (A) actual and reasonable costs that the person who | ||||||
15 | rents a motor vehicle to another incurred to repair the | ||||||
16 | motor vehicle or that the rental company would have | ||||||
17 | incurred if the motor vehicle had been repaired, which | ||||||
18 | shall reflect any discounts, price reductions, or | ||||||
19 | adjustments available to the rental company; or | ||||||
20 | (B) the fair market value of that motor vehicle | ||||||
21 | immediately before the damage occurred, as determined | ||||||
22 | in the customary market for the retail sale of that | ||||||
23 | motor vehicle; and | ||||||
24 | (2) the actual and reasonable costs incurred by the | ||||||
25 | loss due to theft of the rental motor vehicle up to | ||||||
26 | $40,000. |
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1 | The maximum recovery for a motor vehicle with a | ||||||
2 | Manufacturer's Suggested Retail Price (MSRP) of more than | ||||||
3 | $50,000 under this subsection (b-5) shall not exceed $40,000 on | ||||||
4 | the effective date of this amendatory Act of the 99th General | ||||||
5 | Assembly. On October 1, 2016, and for the next 3 years | ||||||
6 | thereafter, the maximum amount that may be recovered from an | ||||||
7 | authorized driver under this subsection (b-5) shall be | ||||||
8 | increased by $2,500 above the prior year's maximum recovery. On | ||||||
9 | October 1, 2020, and for each year thereafter, the maximum | ||||||
10 | amount that may be recovered from an authorized driver under | ||||||
11 | this subsection (b-5) shall be increased by $1,000 above the | ||||||
12 | prior year's maximum recovery. | ||||||
13 | (c) Multiple recoveries prohibited. Any person who rents a | ||||||
14 | motor
vehicle to another may not hold the renter liable for any | ||||||
15 | amounts that the
rental company recovers from any other party.
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16 | (d) Repair estimates. A person who rents a motor vehicle to | ||||||
17 | another may
not collect or attempt to collect the amount | ||||||
18 | described in subsection (b) or (b-5) unless
the rental company | ||||||
19 | obtains an estimate from a repair company or an appraiser in
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20 | the business of providing such appraisals on the costs of | ||||||
21 | repairing the motor
vehicle, makes a copy of the estimate | ||||||
22 | available upon request to the renter who
may be liable under | ||||||
23 | subsection (a), or the insurer of the renter, and submits a
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24 | copy of the estimate with any claim to collect the amount | ||||||
25 | described in
subsection (b) or (b-5) . In order to collect the | ||||||
26 | amount described in subsection (b-5), a person renting a motor |
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1 | vehicle to another must also provide the renter's personal | ||||||
2 | insurance company with reasonable notice and an opportunity to | ||||||
3 | inspect damages.
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4 | (d-5) In the event of loss due to theft of the rental motor | ||||||
5 | vehicle with a MSRP more than $50,000, the rental company shall | ||||||
6 | provide reasonable notice of the theft to the renter's personal | ||||||
7 | insurance company. | ||||||
8 | (e) Duty to mitigate. A claim against a renter resulting | ||||||
9 | from damage or
loss to a rental vehicle must be reasonably and | ||||||
10 | rationally related to the
actual loss incurred. A rental | ||||||
11 | company shall mitigate damages where possible
and shall not | ||||||
12 | assert or collect any claim for physical damage which exceeds | ||||||
13 | the
actual costs of the repair, including all discounts or | ||||||
14 | price reductions.
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15 | (f) No rental company shall require a deposit or an advance | ||||||
16 | charge
against
the credit card of a renter, in any form, for | ||||||
17 | damages to a vehicle which is in
the renter's possession, | ||||||
18 | custody, or control. No rental company shall require
any | ||||||
19 | payment for damage to the rental vehicle, upon the renter's | ||||||
20 | return of the
vehicle in a
damaged condition, until after the | ||||||
21 | cost of the damage to the vehicle and
liability therefor is | ||||||
22 | agreed to between the rental company and renter or is
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23 | determined pursuant to law.
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24 | (g) If insurance coverage exists under the renter's | ||||||
25 | personal insurance
policy and the coverage is confirmed during | ||||||
26 | regular business hours, the renter
may require that the rental
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1 | company must submit any claims to the renter's personal | ||||||
2 | insurance carrier as
the renter's agent. The rental company | ||||||
3 | shall not make any written or oral
representations that it will | ||||||
4 | not present claims or negotiate with the renter's
insurance | ||||||
5 | carrier. For purposes of this Section, confirmation of coverage
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6 | includes telephone confirmation from insurance company | ||||||
7 | representatives during
regular business hours. After
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8 | confirmation of coverage, the amount of claim shall be resolved | ||||||
9 | between the
insurance carrier and the rental company.
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10 | (Source: P.A. 90-113, eff. 7-14-97.)
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11 | Section 10. The Renter's Financial Responsibility and | ||||||
12 | Protection Act is amended by changing Section 15 as follows:
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13 | (625 ILCS 27/15)
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14 | Sec. 15. Prohibited practices.
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15 | (a) A rental company may not sell a damage waiver unless | ||||||
16 | the renter agrees
to the damage waiver in writing at or prior | ||||||
17 | to the time the rental agreement
is executed.
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18 | (b) A rental company may not void a damage waiver except | ||||||
19 | for one or more of
the following reasons:
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20 | (1) Damage or loss while the rental vehicle is used to | ||||||
21 | carry persons or
property for a charge or fee.
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22 | (2) Damage or loss during an organized or agreed upon | ||||||
23 | racing or speed
contest or demonstration or pushing or | ||||||
24 | pulling activity in which the rental
vehicle is actively |
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1 | involved.
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2 | (3) Damage or loss that could reasonably be expected | ||||||
3 | from an intentional
or criminal act of the driver other | ||||||
4 | than a traffic infraction.
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5 | (4) Damage or loss to any rental vehicle resulting from | ||||||
6 | any auto business
operation, including but not limited to | ||||||
7 | repairing, servicing, testing, washing,
parking, storing, | ||||||
8 | or selling of automobiles.
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9 | (5) Damage or loss occurring to a rental vehicle if the | ||||||
10 | rental contract is
based on fraudulent or material | ||||||
11 | misrepresentation by the renter.
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12 | (6) Damage or loss arising out of the use of the rental | ||||||
13 | vehicle outside
the continental United States when such use | ||||||
14 | is specifically prohibited in the
rental
agreement.
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15 | (7) Damage or loss occurring while the rental vehicle | ||||||
16 | is operated by a
driver not permitted under the rental | ||||||
17 | agreement. | ||||||
18 | (8) Damage or loss occurring while the rental vehicle | ||||||
19 | is operated by a driver under the influence of alcohol, | ||||||
20 | other drug or drugs, intoxicating compound or compounds, or | ||||||
21 | any combination thereof and convicted of violating | ||||||
22 | subsection (a) of Section 11-501 of the Illinois Vehicle | ||||||
23 | Code.
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24 | (c) A rental company shall not charge more than $12.50 per | ||||||
25 | full or partial 24
hour rental day for a collision damage
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26 | waiver prior to January 1, 2014. Beginning January 1, 2014, a |
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1 | rental company shall not charge more than $13.50 per full or | ||||||
2 | partial 24 hour rental day for a collision damage waiver.
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3 | (d) A rental company may offer a collision damage waiver on | ||||||
4 | any rental vehicle having a value in excess of a Manufacturer's | ||||||
5 | Suggested Retail Price (MSRP) of $50,000; however, the | ||||||
6 | provisions of subsection (c) of this Section shall not apply to | ||||||
7 | collision damage waivers under this subsection (d). | ||||||
8 | (Source: P.A. 98-428, eff. 8-16-13.)
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9 | Section 99. Effective date. This Act takes effect October | ||||||
10 | 1, 2015.".
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