[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3741 Introduced in House (IH)]

103d CONGRESS
  2d Session
                                H. R. 3741

  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

                            January 26, 1994

   Mrs. Collins of Illinois 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. DEFINITIONS.

    For purposes of this Act:
            (1) The term ``rental car company'' means any person in the 
        business of renting vehicles to the public.
            (2) The term ``renter'' means any person obtaining the use 
        of a vehicle 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 vehicle provided by a rental car company.
            (4) The term ``damage'' means any damage to or loss of the 
        rented vehicle, including loss of use and any costs and 
        expenses incident to the damage or loss.
            (5) The term ``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 individual to whom the vehicle is rented,
                    (B) such individual's spouse, if the spouse is a 
                licensed driver and satisfies the rental car company's 
                minimum age requirement,
                    (C) such individual's employer or coworker, if such 
                vehicle was rented for a business activity and if such 
                individual's employer or coworker is a licensed driver 
                and satisfies the rental car company's minimum age 
                requirement,
                    (D) any individual who operates the vehicle during 
                an emergency situation or while parking the vehicle at 
                a commercial establishment, or
                    (E) any individual expressly listed by the rental 
                car company on the rental agreement as an authorized 
                driver.

SEC. 3. 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 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 individuals 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) 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.
    (c) Waivers Prohibited.--No waiver may be offered or sold for any 
exception described in paragraphs (1) through (7) of subsection (a).

SEC. 4. PENALTIES.

    Any rental car company found by a court of competent jurisdiction 
or the appropriate agency enforcing this Act in any State to have 
violated section 3 shall be subject to a civil penalty of not less than 
$500 nor more than $1,000 for each violation.

SEC. 5. EFFECTIVE DATE.

    This Act shall become effective 90 days after the date of its 
enactment.

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