(Reprinted with amendments adopted on April 21, 2003)

 

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.

 

~

 

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] Except as otherwise provided in

1-7  paragraphs (d) and (e), physical damage to the car, up to and

1-8  including its fair market value, resulting from a [collision, regardless

1-9  of the cause of the damage.]deliberate or negligent act or omission

1-10  on the part of the lessee.

1-11      (b) Mechanical damage to the car, up to and including its fair

1-12  market value, resulting from:

1-13          (1) A collision;

1-14          (2) An impact; or

1-15          (3) Any other type of incident,

1-16  that is caused by a deliberate or negligent act or omission on the

1-17  part of the lessee.

2-1  (c) Loss resulting from theft of the car, up to and including its

2-2  fair market value, except that the lessee is presumed to have no

2-3  liability for any loss resulting from theft if an authorized driver:

2-4       (1) Has possession of the ignition key furnished by the lessor

2-5  or establishes that the ignition key furnished by the lessor was not in

2-6  the car at the time of the theft; and

2-7       (2) Files an official report of the theft with an appropriate

2-8  law enforcement agency within 24 hours after learning of the theft

2-9  and cooperates with the lessor and the law enforcement agency in

2-10  providing information concerning the theft.

2-11  The lessor may rebut the presumption set forth in this paragraph by

2-12  establishing that an authorized driver committed or aided and

2-13  abetted the commission of the theft.

2-14      [(c)](d) Physical damage to the car, up to and including its fair

2-15  market value, resulting from vandalism occurring after or in

2-16  connection with the theft of the car, except that the lessee has no

2-17  liability for any damage resulting from vandalism if the lessee has

2-18  no liability for theft pursuant to paragraph [(b).](c).

2-19      [(d)](e) Physical damage to the car and loss of use of the car, up

2-20  to $500, resulting from vandalism not related to the theft of the car

2-21  and not caused by the [short-term lessee.

2-22      (e)]lessee.

2-23      (f) Loss of use of the car if the lessee is liable for damage or

2-24  loss.

2-25      [(f)](g) Actual charges for towing and storage and impound fees

2-26  paid by the lessor if the lessee is liable for damage or loss.

2-27      [(g)](h) An administrative charge that includes the cost of

2-28  appraisal and other costs incident to the damage, loss, loss of use,

2-29  repair or replacement of the car.

2-30      2.  For the purposes of this section, the fair market value must

2-31  be determined in the customary market for the sale of the leased

2-32  passenger car.

2-33      Sec. 2.  NRS 482.3154 is hereby amended to read as follows:

2-34      482.3154  1.  The total amount of the short-term lessee’s

2-35  liability to the short-term lessor resulting from damage to a leased

2-36  passenger car must not exceed the sum of the following:

2-37      (a) The estimated cost for parts that the short-term lessor would

2-38  have to pay to replace damaged parts. Any discount, price reduction

2-39  or adjustment received by the lessor must be subtracted from the

2-40  estimate to the extent not already incorporated in the estimate or

2-41  promptly credited or refunded to the short-term lessee.

2-42      (b) The estimated cost of labor to replace damaged parts of the

2-43  passenger car, which must not exceed the product of:

2-44          (1) The rate of labor usually paid by the lessor to replace

2-45  parts of the type that were damaged; and

3-1       (2) The estimated time for replacement.

3-2  Any discount, price reduction or adjustment received by the short-

3-3  term lessor must be subtracted from the estimate to the extent not

3-4  already incorporated in the estimate or promptly credited or

3-5  refunded to the lessee.

3-6  (c) The estimated cost of labor to repair damaged parts of the

3-7  passenger car, which must not exceed the lesser of:

3-8       (1) The product of the rate for labor usually paid by the

3-9  short-term lessor to repair parts of the type that were damaged and

3-10  the estimated time for repair; or

3-11          (2) The sum of the costs for estimated labor and parts

3-12  determined pursuant to paragraphs (a) and (b) to replace the same

3-13  parts.

3-14  Any discount, price reduction or adjustment received by the short-

3-15  term lessor must be subtracted from the estimate to the extent not

3-16  already incorporated in the estimate or promptly credited or

3-17  refunded to the lessee.

3-18      (d) Except as otherwise provided in subsection 2, the loss of use

3-19  of the leased passenger car, which must not exceed the product of:

3-20          (1) The rate for the car stated in the short-term lessee’s lease,

3-21  excluding all optional charges; and

3-22          (2) The total of the estimated time for replacement and the

3-23  estimated time for repair. For the purpose of converting the

3-24  estimated time for repair into the same unit of time in which the rate

3-25  of the lease is expressed, a day shall be deemed to consist of 8

3-26  hours.

3-27      (e) Actual charges for towing and storage and impound fees paid

3-28  by the short-term lessor.

3-29      2.  Under any of the circumstances described in NRS

3-30  482.31555, the short-term lessor’s loss of use of the passenger car

3-31  must not exceed the product of:

3-32      (a) The rate for the car stated in the short-term lessee’s lease,

3-33  excluding all optional charges; and

3-34      (b) The period from the date of an accident to the date the car is

3-35  ready to be returned to service if the lessor uses his best efforts to

3-36  repair and return the car to service as soon as practicable.

3-37      3.  An administrative charge pursuant to paragraph [(g)] (h) of

3-38  subsection 1 of NRS 482.31535 must not exceed:

3-39      (a) Fifty dollars if the total estimated cost for parts and labor is

3-40  more than $100 and less than or equal to $500.

3-41      (b) One hundred dollars if the total estimated cost for parts and

3-42  labor is more than $500 and less than or equal to $1,500.

3-43      (c) One hundred and fifty dollars if the total estimated cost for

3-44  parts and labor is more than $1,500.

4-1  No administrative charge may be imposed if the total estimated cost

4-2  of parts and labor is $100 or less.

4-3  Sec. 3.  NRS 482.31555 is hereby amended to read as follows:

4-4  482.31555  A short-term lessor may provide in a lease of a

4-5  passenger car that a waiver of damages does not apply in the

4-6  following circumstances:

4-7  1.  Damage or loss resulting from an authorized driver’s:

4-8  (a) Intentional, willful, wanton or reckless conduct.

4-9  (b) Operation of the car in violation of NRS 484.379.

4-10      (c) Towing or pushing with the car.

4-11      (d) Operation of the car on an unpaved road if the damage or

4-12  loss is a direct result of the road or driving conditions.

4-13      2.  Damage or loss occurring when the passenger car is:

4-14      (a) Used for hire.

4-15      (b) Used in connection with conduct that constitutes a felony.

4-16      (c) Involved in a speed test or contest or in driver training

4-17  activity.

4-18      (d) Operated by a person other than an authorized driver.

4-19      (e) Operated in a foreign country or outside of the [United

4-20  States.]States of Nevada, Arizona, California, Idaho, Oregon and

4-21  Utah, unless the lease expressly provides that the passenger car

4-22  may be operated in other locations.

4-23      3.  An authorized driver providing:

4-24      (a) Fraudulent information to the short-term lessor.

4-25      (b) False information to the lessor and the lessor would not have

4-26  leased the passenger car if he had received true information.

4-27      Sec. 4.  NRS 482.31565 is hereby amended to read as follows:

4-28      482.31565  1.  A short-term lessor shall not require the

4-29  purchase of a waiver of damages, optional insurance or any other

4-30  optional good or service as a condition for the lease of a passenger

4-31  car.

4-32      2.  A short-term lessor may sell a waiver of damages but shall

4-33  not charge more than $15 per full or partial [24-hour rental period]

4-34  rental day for the waiver.

4-35      3.  A short-term lessor who disseminates an advertisement in

4-36  the State of Nevada that contains a rate for the lease of a passenger

4-37  car shall include in the advertisement a clearly readable statement of

4-38  the charge for a waiver of damages and a statement that the waiver

4-39  is optional.

4-40      4.  A short-term lessor shall not engage in any unfair, deceptive

4-41  or coercive conduct to induce a short-term lessee to purchase a

4-42  waiver of damages, optional insurance or any other optional good or

4-43  service, including, but not limited to, refusing to honor the lessee’s

4-44  reservation, limiting the availability of cars, requiring a deposit or

4-45  debiting or blocking the lessee’s credit card account for a sum

5-1  equivalent to a deposit if the lessee declines to purchase a waiver,

5-2  optional insurance or any other optional good or service.

 

5-3  H