Assembly Bill No. 522–Committee on Transportation

 

March 24, 2003

____________

 

Referred to Committee on Transportation

 

SUMMARY—Revises provisions governing short-term leases of passenger cars. (BDR 43‑1045)

 

FISCAL NOTE:  Effect on Local Government: No.

                           Effect on the State: No.

 

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EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

AN ACT relating to motor vehicles; revising provisions governing short-term leases of passenger cars; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

1-1  Section 1. NRS 482.31535 is hereby amended to read as

1-2  follows:

1-3  482.31535  1.  Except as otherwise provided in NRS

1-4  482.3154, a short-term lessor and a short-term lessee of a passenger

1-5  car may agree that the lessee will be responsible for:

1-6  (a) Physical or mechanical damage to the car, up to and

1-7  including its fair market value, [resulting from a collision,]

1-8  regardless of the cause of the damage.

1-9  (b) Loss resulting from theft of the car, up to and including its

1-10  fair market value, except that the lessee is presumed to have no

1-11  liability for any loss resulting from theft if an authorized driver:

1-12          (1) Has possession of the ignition key furnished by the lessor

1-13  or establishes that the ignition key furnished by the lessor was not in

1-14  the car at the time of the theft; and

1-15          (2) Files an official report of the theft with an appropriate

1-16  law enforcement agency within 24 hours after learning of the theft

1-17  and cooperates with the lessor and the law enforcement agency in

1-18  providing information concerning the theft.

2-1  The lessor may rebut the presumption set forth in this paragraph by

2-2  establishing that an authorized driver committed or aided and

2-3  abetted the commission of the theft.

2-4  (c) Physical damage to the car, up to and including its fair

2-5  market value, resulting from vandalism occurring after or in

2-6  connection with the theft of the car, except that the lessee has no

2-7  liability for any damage resulting from vandalism if the lessee has

2-8  no liability for theft pursuant to paragraph (b).

2-9  (d) Physical damage to the car and loss of use of the car, up to

2-10  $500, resulting from vandalism not related to the theft of the car and

2-11  not caused by the short-term lessee.

2-12      (e) Loss of use of the car if the lessee is liable for damage or

2-13  loss.

2-14      (f) Actual charges for towing and storage and impound fees paid

2-15  by the lessor if the lessee is liable for damage or loss.

2-16      (g) An administrative charge that includes the cost of appraisal

2-17  and other costs incident to the damage, loss, loss of use, repair or

2-18  replacement of the car.

2-19      2.  For the purposes of this section, the fair market value must

2-20  be determined in the customary market for the sale of the leased

2-21  passenger car.

2-22      Sec. 2.  NRS 482.31555 is hereby amended to read as follows:

2-23      482.31555  A short-term lessor may provide in a lease of a

2-24  passenger car that a waiver of damages does not apply in the

2-25  following circumstances:

2-26      1.  Damage or loss resulting from an authorized driver’s:

2-27      (a) Intentional, willful, wanton or reckless conduct.

2-28      (b) Operation of the car in violation of NRS 484.379.

2-29      (c) Towing or pushing with the car.

2-30      (d) Operation of the car on an unpaved road if the damage or

2-31  loss is a direct result of the road or driving conditions.

2-32      2.  Damage or loss occurring when the passenger car is:

2-33      (a) Used for hire.

2-34      (b) Used in connection with conduct that constitutes a felony.

2-35      (c) Involved in a speed test or contest or in driver training

2-36  activity.

2-37      (d) Operated by a person other than an authorized driver.

2-38      (e) Operated outside of the State of Nevada or the United States

2-39  [.] , unless expressly permitted by the lease.

2-40      (f) Stolen and the authorized driver was negligent in securing

2-41  the passenger car. A lease that contains such a provision must

2-42  provide that:

2-43          (1) The authorized driver will be presumed to have not been

2-44  negligent in securing the passenger car if he:

3-1           (I) Has possession of the ignition key furnished by the

3-2  lessor or establishes that the ignition key furnished by the lessor

3-3  was not in the car at the time of the theft; and

3-4           (II) Files an official report of the theft with an

3-5  appropriate law enforcement agency within 24 hours after

3-6  learning of the theft and cooperates with the lessor and the law

3-7  enforcement agency in providing information concerning the

3-8  theft; and

3-9       (2) The lessor may rebut the presumption by establishing

3-10  that the authorized driver committed or aided and abetted the

3-11  commission of the theft.

3-12      3.  An authorized driver providing:

3-13      (a) Fraudulent information to the short-term lessor.

3-14      (b) False information to the lessor and the lessor would not have

3-15  leased the passenger car if he had received true information.

3-16      Sec. 3.  NRS 482.31565 is hereby amended to read as follows:

3-17      482.31565  1.  A short-term lessor shall not require the

3-18  purchase of a waiver of damages, optional insurance or any other

3-19  optional good or service as a condition for the lease of a passenger

3-20  car.

3-21      2.  A short-term lessor may sell a waiver of damages but shall

3-22  not charge more than $15 per full or partial [24-hour rental period]

3-23  rental day for the waiver.

3-24      3.  A short-term lessor who disseminates an advertisement in

3-25  the State of Nevada that contains a rate for the lease of a passenger

3-26  car shall include in the advertisement a clearly readable statement of

3-27  the charge for a waiver of damages and a statement that the waiver

3-28  is optional.

3-29      4.  A short-term lessor shall not engage in any unfair, deceptive

3-30  or coercive conduct to induce a short-term lessee to purchase a

3-31  waiver of damages, optional insurance or any other optional good or

3-32  service, including, but not limited to, refusing to honor the lessee’s

3-33  reservation, limiting the availability of cars, requiring a deposit or

3-34  debiting or blocking the lessee’s credit card account for a sum

3-35  equivalent to a deposit if the lessee declines to purchase a waiver,

3-36  optional insurance or any other optional good or service.

 

3-37  H