First Substitute H.B. 328

This document includes House Committee Amendments incorporated into the bill on Thu, Feb 27, 2003 at 9:13 AM by bhilbert. -->

Representative Rebecca D. Lockhart proposes the following substitute bill:

1 RECOVERY OF ADMINISTRATIVE FEE FOR
2 DAMAGES SUSTAINED TO A RENTAL MOTOR
3 VEHICLE
4 2003 GENERAL SESSION
5 STATE OF UTAH
6 Sponsor: Rebecca D. Lockhart
7 This act modifies the Insurance Code to authorize a vehicle rental company to charge an
8 administrative fee for damage sustained to a rental vehicle. This act allows the collection
9 of h [ an ] A REASONABLE h administrative fee that vehicle rental companies may charge to
9a offset the expenses
10 incurred for collecting and resolving a damage claim on a rental vehicle. This act adds
11 the administrative fee and any diminution in value to the definition of damage to a rental
12 vehicle.
13 This act affects sections of Utah Code Annotated 1953 as follows:
14 AMENDS:
15 31A-22-311, as last amended by Chapter 316, Laws of Utah 1994
16 Be it enacted by the Legislature of the state of Utah:
17 Section 1. Section 31A-22-311 is amended to read:
18 31A-22-311. Definitions.
19 As used in Sections 31A-22-312 and 31A-22-314 :
20 (1) "Administrative fee" means a fee collected by a vehicle rental company to offset
21 expenses incurred in administrating the collection and resolution of a claim.
22 [(1)] (2) "Authorized driver" means the person to whom the vehicle is rented and
23 includes:
24 (a) his spouse if a licensed driver satisfying the rental company's minimum age
25 requirement;

26 (b) his employer or coworker if engaged in business activity with the renter and if they
27 are licensed drivers satisfying the rental company's minimum age requirement;
28 (c) any person who operates the vehicle during an emergency situation;
29 (d) any person who operates the vehicle while parking the vehicle at a commercial
30 establishment; or
31 (e) any person expressly listed by the rental company on the rental agreement as an
32 authorized driver.
33 [(2)] (3) "Damage" means any damage or loss to the rented vehicle [resulting from a
34 collision,] including:
35 (a) loss of use [and];
36 (b) any costs and expenses incident to the damage or loss[.];
37 (c) h [ an ] A REASONABLE h administrative fee associated with the loss; and
38 (d) any diminution of value of the rental vehicle as a result of the damage or loss.
39 [(3)] (4) "Rental agreement" means any written agreement stating the terms and
40 conditions governing the use of a private passenger motor vehicle provided by a rental
41 company.
42 [(4)] (5) "Rental company" means any person or organization in the business of
43 providing private passenger motor vehicles to the public.
44 [(5)] (6) "Renter" means any person or organization obtaining the use of a private
45 passenger motor vehicle from a rental company under the terms of a rental agreement.

*HB0328S1*