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H.B. 328

             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 an administrative fee that vehicle rental companies may charge to 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. This act sets a sliding scale for administrative fees beginning at $50 for estimated
             13      damage to the rental vehicle of $250 or less and going up to $250 for estimated damage
             14      exceeding $2,501.
             15      This act affects sections of Utah Code Annotated 1953 as follows:
             16      AMENDS:
             17          31A-22-311, as last amended by Chapter 316, Laws of Utah 1994
             18      ENACTS:
             19          31A-22-312.5, Utah Code Annotated 1953
             20      Be it enacted by the Legislature of the state of Utah:
             21          Section 1. Section 31A-22-311 is amended to read:
             22           31A-22-311. Definitions.
             23          As used in Sections 31A-22-312 , 31A-22-312.5 , and 31A-22-314 :
             24          (1) "Administrative fee" means a fee collected by a vehicle rental company under
             25      Section 31A-22-312.5 to offset expenses incurred in administrating the collection and
             26      resolution of a claim.
             27          [(1)] (2) "Authorized driver" means the person to whom the vehicle is rented and

             28      includes:
             29          (a) his spouse if a licensed driver satisfying the rental company's minimum age
             30      requirement;
             31          (b) his employer or coworker if engaged in business activity with the renter and if they
             32      are licensed drivers satisfying the rental company's minimum age requirement;
             33          (c) any person who operates the vehicle during an emergency situation;
             34          (d) any person who operates the vehicle while parking the vehicle at a commercial
             35      establishment; or
             36          (e) any person expressly listed by the rental company on the rental agreement as an
             37      authorized driver.
             38          [(2)] (3) "Damage" means any damage or loss to the rented vehicle [resulting from a
             39      collision,] including:
             40          (a) loss of use [and];
             41          (b) any costs and expenses incident to the damage or loss[.];
             42          (c) an administrative fee associated with the loss, as calculated under Section
             43      31A-22-312.5 ; and
             44          (d) any diminution of value of the rental vehicle as a result of the damage or loss.
             45          [(3)] (4) "Rental agreement" means any written agreement stating the terms and
             46      conditions governing the use of a private passenger motor vehicle provided by a rental
             47      company.
             48          [(4)] (5) "Rental company" means any person or organization in the business of
             49      providing private passenger motor vehicles to the public.
             50          [(5)] (6) "Renter" means any person or organization obtaining the use of a private
             51      passenger motor vehicle from a rental company under the terms of a rental agreement.
             52          Section 2. Section 31A-22-312.5 is enacted to read:
             53          31A-22-312.5. Limitation of administrative fee.
             54          A vehicle rental company may charge an administrative fee which may not exceed:
             55          (1) $50 when the estimated damage to the rental vehicle is $250 or less;
             56          (2) $75 when the estimated damage to the rental vehicle is between $251 and $500;
             57          (3) $100 when the estimated damage to the rental vehicle is between $501 and $750;
             58          (4) $150 when the estimated damage to the rental vehicle is between $751 and $1,500;

             59          (5) $200 when the estimated damage to the rental vehicle is between $1,501 and
             60      $2,500; and
             61          (6) $250 when the estimated damage to the rental vehicle exceeds $2,501.




Legislative Review Note
    as of 2-7-03 11:07 AM

A limited legal review of this legislation raises no obvious constitutional or statutory concerns.

Office of Legislative Research and General Counsel

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