Sure. And legal entity that borrows those cars just need to follow the law.

Nothing prevents them from borrowing cars.

"Hey, you got a ticket when you borrowed my car. Pay me back or you don't get to borrow it next time."

If you break the government's rules, that should be between you and the government. I shouldn't have to front the cost of any fines or otherwise be in the middle of it.

If you lend your car to someone, that’s between you and them.

Same if they crash it. Or run it out of gas.