Text: HSB00041                          Text: HSB00043
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House Study Bill 42

Bill Text

PAG LIN
  1  1    Section 1.  Section 516D.4, subsection 1, unnumbered
  1  2 paragraph 1, Code 2001, is amended to read as follows:
  1  3    A rental company shall not hold, or attempt to hold, an
  1  4 authorized driver liable for physical damage to a rental
  1  5 vehicle, loss due to theft of a rental vehicle, or damages
  1  6 resulting from the loss of use of a rental vehicle, unless the
  1  7 rental company offers the customer a collision damage waiver
  1  8 under the terms and conditions described in subsection 2 of
  1  9 this section, or unless one or more of the following applies:
  1 10    Sec. 2.  Section 516D.4, subsection 1, paragraph i, Code
  1 11 2001, is amended to read as follows:
  1 12    i.  The damage or loss is attributable to theft or theft of
  1 13 services which occurs with the prior knowledge or knowing
  1 14 participation of an authorized driver, or which is
  1 15 attributable to the negligent conduct of the authorized driver
  1 16 leaving the rental vehicle unattended with the keys in the
  1 17 rental vehicle.
  1 18    Sec. 3.  Section 516D.4, subsection 2, paragraph d,
  1 19 unnumbered paragraph 1, Code 2001, is amended to read as
  1 20 follows:
  1 21    The car rental company shall not pay commissions to a
  1 22 rental counter agent or representative for selling based
  1 23 solely on sales of collision damage waivers and is prohibited
  1 24 from considering volume of sales of collision damage waivers
  1 25 in an employee evaluation or determination of promotion.
  1 26    Sec. 4.  Section 516D.4, subsection 2, paragraph d,
  1 27 unnumbered paragraph 2, Code 2001, is amended by striking the
  1 28 unnumbered paragraph.
  1 29    Sec. 5.  Section 516D.7, subsection 7, unnumbered paragraph
  1 30 1, Code 2001, is amended to read as follows:
  1 31    Failure to disclose the following material restrictions,
  1 32 where applicable, in response to direct consumer inquiries
  1 33 regarding the price of renting a vehicle, when the rental
  1 34 company discloses a vehicle rental rate, and at the time the
  1 35 reservation is accepted by authorized drivers:  
  2  1                           EXPLANATION
  2  2    This bill amends several Code provisions relating to the
  2  3 rental of motor vehicles.  Code section 516D.4 is amended by
  2  4 striking a provision prohibiting a rental company from
  2  5 attempting to hold a driver liable for physical damage to a
  2  6 rental vehicle, loss due to theft of a rental vehicle, or
  2  7 damages resulting from the loss of use of a rental vehicle
  2  8 unless the rental company offers the customer a collision
  2  9 damage waiver.  A rental company is still prohibited from
  2 10 holding a driver liable for such losses.
  2 11    Code section 516D.4 provides several exceptions to the
  2 12 provision prohibiting a rental company from holding a driver
  2 13 liable for collision damage or loss.  Currently, there is such
  2 14 an exception for situations when the damage or loss is due to
  2 15 theft which occurs with the knowledge or participation of an
  2 16 authorized driver or due to an authorized driver leaving the
  2 17 rental vehicle unattended with the keys in the vehicle.  The
  2 18 bill modifies this exception to provide that the exception
  2 19 applies to damage or loss due to theft or theft of services
  2 20 which occur with the knowledge or participation of an
  2 21 authorized driver or due to the negligent conduct of the
  2 22 authorized driver.  The bill strikes a provision prohibiting a
  2 23 rental company from holding an authorized driver liable for
  2 24 damage or loss due to theft except when an authorized driver
  2 25 knew of or participated in the theft or left the rental
  2 26 vehicle unattended with the keys in the vehicle, regardless of
  2 27 whether the rental company offered the customer a collision
  2 28 damage waiver.
  2 29    The bill strikes a provision in Code section 516D.4 that
  2 30 prohibits a rental company from considering the volume of
  2 31 sales of collision damage waivers in employee evaluations or
  2 32 promotions.  The bill modifies the same provision to prohibit
  2 33 car rental companies from paying commissions to rental counter
  2 34 agents based solely on sales of collision damage waivers.
  2 35 Currently, car rental companies are prohibited from paying
  3  1 commissions to rental counter agents or representatives for
  3  2 selling such waivers.
  3  3    The bill amends a provision in Code section 516D.7 stating
  3  4 that, under certain circumstances, failure to disclose certain
  3  5 material restrictions regarding the rental of vehicles in
  3  6 response to direct consumer inquiries regarding the price of
  3  7 renting a vehicle is an unfair or deceptive act or practice in
  3  8 the advertisement or rental of vehicles.  The bill eliminates
  3  9 the requirement that the rental company disclose the material
  3 10 restrictions at the time the rental company discloses a
  3 11 vehicle rate and at the time the reservation is accepted.  The
  3 12 bill requires that the direct inquiries be made by authorized
  3 13 drivers and be in regard to the particular material
  3 14 restrictions.  
  3 15 LSB 2019HC 79
  3 16 nh/cf/24

Text: HSB00041                          Text: HSB00043
Text: HSB00000 - HSB00099               Text: HSB Index
Bills and Amendments: General Index     Bill History: General Index

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