House File 340 - Introduced HOUSE FILE 340 BY COMMITTEE ON JUDICIARY (SUCCESSOR TO HSB 24) A BILL FOR An Act relating to certain fees charged in connection with 1 vehicle rental agreements and making penalties applicable. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 1418HV (3) 86 jh/nh

H.F. 340 Section 1. Section 516D.3, subsection 6, paragraph a, Code 1 2015, is amended to read as follows: 2 a. “Mandatory charge” does not include an airport-imposed 3 fee or a vehicle license recovery fee if the existence and 4 amount of the fee are clearly and conspicuously disclosed 5 immediately adjacent to any advertised rental price. The 6 customer must be informed of the amount of the fee when the 7 reservation is made. When an advertisement encompasses more 8 than one rental location, the fee may be expressed as the 9 maximum fee or range of fees. 10 Sec. 2. Section 516D.3, Code 2015, is amended by adding the 11 following new subsection: 12 NEW SUBSECTION . 12. “Vehicle license recovery fee” means a 13 charge that may be separately stated and charged on a vehicle 14 rental transaction originating in this state to recover fees 15 paid to this state by a rental company to license, title, 16 register, and plate rental vehicles. 17 Sec. 3. NEW SECTION . 516D.3A Vehicle license recovery fee. 18 1. A rental company may include separately stated charges in 19 a rental agreement pursuant to the provisions of this chapter 20 for the recovery of fees paid to this state to license, title, 21 register, and plate rental vehicles. 22 2. If a rental company includes a vehicle license recovery 23 fee as a separately stated charge in a rental transaction, 24 the amount of the fee shall represent the rental company’s 25 good-faith estimate of the rental company’s average per vehicle 26 portion of the rental company’s total annual titling and 27 registration fees paid to this state. 28 3. If the total amount of the vehicle license recovery 29 fees collected by a rental company under this section in any 30 calendar year exceeds the rental company’s actual fees paid 31 to this state to license, title, register, and plate rental 32 vehicles for that calendar year, the rental company shall do 33 both of the following: 34 a. Retain the excess amount to be held in a vehicle license 35 -1- LSB 1418HV (3) 86 jh/nh 1/ 3

H.F. 340 recovery fee fund as a consumer credit for the following year. 1 b. Lower the estimated average per vehicle titling and 2 registration charge for the following calendar year by the 3 corresponding amount in the vehicle license recovery fee fund. 4 EXPLANATION 5 The inclusion of this explanation does not constitute agreement with 6 the explanation’s substance by the members of the general assembly. 7 This bill relates to fees vehicle rental companies charge to 8 recover costs paid to license, title, register, or plate rental 9 vehicles in Iowa, and makes penalties applicable. 10 The bill defines “vehicle license recovery fee” as a charge 11 that may be separately stated and charged on a vehicle rental 12 transaction originating in this state to recover fees paid to 13 this state by a rental company to license, title, register, and 14 plate rental vehicles. 15 Rental companies may charge a vehicle license recovery fee 16 in a rental transaction that is equal to the rental company’s 17 good-faith estimate of the average per vehicle portion of the 18 rental company’s total annual titling and registration fees 19 paid to this state. The bill provides that if the total amount 20 of vehicle license recovery fees a rental company collects 21 exceeds the amount it actually spent to license, title, 22 register, and plate rental vehicles, the rental company shall 23 keep the excess amount in a fund as a consumer credit and lower 24 the estimated average per vehicle titling and registration 25 charge for the following year by the corresponding amount in 26 the fund. 27 The bill provides that the vehicle license recovery fee 28 is not a mandatory charge that must be included in a rental 29 company’s advertisement or quote if such fee is clearly 30 disclosed next to the advertised rental price. 31 Pursuant to Code section 516D.9, any violation of the 32 provisions of the bill is an unlawful practice under Code 33 section 714.16(2)(a). Code section 714.16 permits the attorney 34 general to investigate a person the attorney general believes 35 -2- LSB 1418HV (3) 86 jh/nh 2/ 3

H.F. 340 is engaged in an unlawful practice and to seek and obtain 1 injunctive relief against a person who is engaged in an 2 unlawful practice, and for a court to impose a civil penalty 3 against a person who committed an unlawful practice. 4 -3- LSB 1418HV (3) 86 jh/nh 3/ 3