Text: H.R.984 — 101st Congress (1989-1990)All Information (Except Text)

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HR 984 IH
101st CONGRESS
1st Session
 H. R. 984
To prohibit rental car companies from imposing liability on renters, with
certain exceptions, to prohibit such companies from selling collision damage
waivers in connection with private passenger automobile rental agreements
of not more than 30 days, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
February 9, 1989
Mrs. MARTIN of Illinois (for herself and Mr. ECKART) introduced the following
bill; which was referred to the Committee on Energy and Commerce
A BILL
To prohibit rental car companies from imposing liability on renters, with
certain exceptions, to prohibit such companies from selling collision damage
waivers in connection with private passenger automobile rental agreements
of not more than 30 days, and for other purposes.
  Be it enacted by the Senate and House of Representatives of the United
  States of America in Congress assembled,
SECTION 1. SHORT TITLE.
  This Act may be cited as the `Collision Damage Waiver Act'.
SEC. 2. PURPOSE.
  It is the purpose of this Act to prohibit--
  (1) rental car companies from imposing liability on renters, subject to
  certain exceptions, and
  (2) the sale of any collision damage waiver in connection with private
  passenger automobile rental agreements of not more than 30 days.
SEC. 3. DEFINITIONS.
  For purposes of this Act, the following terms have the following meanings:
  (1) The term `rental car company' means any person or organization in the
  business of providing private passenger automobiles to the public.
  (2) The term `renter' means any person or organization obtaining the use
  of a private passenger automobile from a rental car company under the
  terms of a rental agreement.
  (3) The term `rental agreement' means any written agreement setting forth
  the terms and conditions governing the use of a private passenger automobile
  provided by a rental car company.
  (4) The term `damage' means any damage or loss to the rented vehicle,
  including loss of use and any costs and expenses incident to the damage
  or loss.
  (5) The term `private passenger automobile' or `vehicle' means a motor
  vehicle of the private passenger type (including passenger vans and minivans)
  that are primarily intended for transport of persons.
  (6) The term `authorized driver' means--
  (A) the person to whom the vehicle is rented;
  (B) such person's spouse, if the spouse is a licensed driver and satisfies
  the rental car company's minimum age requirement;
  (C) such person's employer or coworker, if such employer or coworker engaged
  in business activity with the person to whom the vehicle is rented and if
  such person is a licensed driver and satisfies the rental car company's
  minimum age requirement;
  (D) any person who operates the vehicle during an emergency situation or
  while parking the vehicle at a commercial establishment; or
  (E) any person expressly listed by the rental car company on the rental
  agreement as an authorized driver.
SEC. 4. PROHIBITED ACTIVITY.
  (a) IN GENERAL- No rental car company shall, in rental agreements of 30
  continuous days or less, hold any authorized driver liable for any damage,
  except in any case in which--
  (1) the damage is caused intentionally by an authorized driver or as a
  result of such driver's his willful and wanton misconduct;
  (2) the damage arises out of the authorized driver's operation of the
  vehicle while legally intoxicated or under the influence of any illegal
  drug as defined or determined under the law of the State in which the
  damage occurred;
  (3) the damage is caused while the authorized driver is engaged in any
  speed contest;
  (4) the rental transaction is based on information supplied by the renter
  with the intent to defraud the rental car company;
  (5) the damage arises out of the use of the vehicle while committing
  or otherwise engaged in a criminal act in which the automobile usage is
  substantially related to the nature of the criminal activity;
  (6) the damage arises out of the use of the vehicle to carry persons or
  property for hire; or
  (7) the damage arises out of the use of the vehicle outside of the United
  States or Canada unless such use is specifically authorized by the rental
  agreement.
  (b) JURISDICTION- No action for damage may be brought by a rental car
  company against a renter who is a resident of the United States except in
  the State of the renter's primary residence.
  (c) SECURITY DEPOSIT REQUEST PROHIBITED- No security deposit, in any form,
  for damage may be required or requested by the rental car company during
  the rental period or pending resolution of any dispute.
  (d) WAIVERS PROHIBITED- No waiver may be offered to provide coverage for
  any exception described in paragraphs (1) through (7) of subsection (a),
  or for any applicable deductible.
SEC. 5. PENALTIES.
  Any rental car company found by a court of competent jurisdiction or the
  appropriate agency charged with enforcing this Act in any State to have
  violated any provision of this Act, or to have proceeded with a lack of
  good faith to impose liability upon a renter as provided in this Act,
  shall be subject to a penalty of not less than $500 nor more than $1,000
  for each violation.
SEC. 6. EFFECTIVE DATE.
  This Act shall become effective 90 days after its enactment.