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) Mechanical damage to the car, up to and including its fair

1-10  market value, resulting from:

1-11          (1) A collision;

1-12          (2) An impact; or

1-13          (3) Any other type of incident,

1-14  that is caused by a deliberate or negligent act or omission on the

1-15  part of the lessee.

1-16      (c) Loss resulting from theft of the car, up to and including its

1-17  fair market value, except that the lessee is presumed to have no

1-18  liability for any loss resulting from theft if an authorized driver:

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

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

2-3  the car at the time of the theft; and

2-4       (2) Files an official report of the theft with an appropriate

2-5  law enforcement agency within 24 hours after learning of the theft

2-6  and cooperates with the lessor and the law enforcement agency in

2-7  providing information concerning the theft.

2-8  The lessor may rebut the presumption set forth in this paragraph by

2-9  establishing that an authorized driver committed or aided and

2-10  abetted the commission of the theft.

2-11      [(c)](d) Physical damage to the car, up to and including its fair

2-12  market value, resulting from vandalism occurring after or in

2-13  connection with the theft of the car, except that the lessee has no

2-14  liability for any damage resulting from vandalism if the lessee has

2-15  no liability for theft pursuant to paragraph [(b).](c).

2-16      [(d)](e) Physical damage to the car and loss of use of the car, up

2-17  to $500, resulting from vandalism not related to the theft of the car

2-18  and not caused by the [short-term lessee.

2-19      (e)]lessee.

2-20      (f) Loss of use of the car if the lessee is liable for damage or

2-21  loss.

2-22      [(f)](g) Actual charges for towing and storage and impound fees

2-23  paid by the lessor if the lessee is liable for damage or loss.

2-24      [(g)](h) An administrative charge that includes the cost of

2-25  appraisal and other costs incident to the damage, loss, loss of use,

2-26  repair or replacement of the car.

2-27      2.  For the purposes of this section, the fair market value must

2-28  be determined in the customary market for the sale of the leased

2-29  passenger car.

2-30      Sec. 2.  NRS 482.3154 is hereby amended to read as follows:

2-31      482.3154  1.  The total amount of the short-term lessee’s

2-32  liability to the short-term lessor resulting from damage to a leased

2-33  passenger car must not exceed the sum of the following:

2-34      (a) The estimated cost for parts that the short-term lessor would

2-35  have to pay to replace damaged parts. Any discount, price reduction

2-36  or adjustment received by the lessor must be subtracted from the

2-37  estimate to the extent not already incorporated in the estimate or

2-38  promptly credited or refunded to the short-term lessee.

2-39      (b) The estimated cost of labor to replace damaged parts of the

2-40  passenger car, which must not exceed the product of:

2-41          (1) The rate of labor usually paid by the lessor to replace

2-42  parts of the type that were damaged; and

2-43          (2) The estimated time for replacement.

 

3-1  Any discount, price reduction or adjustment received by the short-

3-2  term lessor must be subtracted from the estimate to the extent not

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

3-4  refunded to the lessee.

3-5  (c) The estimated cost of labor to repair damaged parts of the

3-6  passenger car, which must not exceed the lesser of:

3-7       (1) The product of the rate for labor usually paid by the

3-8  short-term lessor to repair parts of the type that were damaged and

3-9  the estimated time for repair; or

3-10          (2) The sum of the costs for estimated labor and parts

3-11  determined pursuant to paragraphs (a) and (b) to replace the same

3-12  parts.

3-13  Any discount, price reduction or adjustment received by the short-

3-14  term lessor must be subtracted from the estimate to the extent not

3-15  already incorporated in the estimate or promptly credited or

3-16  refunded to the lessee.

3-17      (d) Except as otherwise provided in subsection 2, the loss of use

3-18  of the leased passenger car, which must not exceed the product of:

3-19          (1) The rate for the car stated in the short-term lessee’s lease,

3-20  excluding all optional charges; and

3-21          (2) The total of the estimated time for replacement and the

3-22  estimated time for repair. For the purpose of converting the

3-23  estimated time for repair into the same unit of time in which the rate

3-24  of the lease is expressed, a day shall be deemed to consist of 8

3-25  hours.

3-26      (e) Actual charges for towing and storage and impound fees paid

3-27  by the short-term lessor.

3-28      2.  Under any of the circumstances described in NRS

3-29  482.31555, the short-term lessor’s loss of use of the passenger car

3-30  must not exceed the product of:

3-31      (a) The rate for the car stated in the short-term lessee’s lease,

3-32  excluding all optional charges; and

3-33      (b) The period from the date of an accident to the date the car is

3-34  ready to be returned to service if the lessor uses his best efforts to

3-35  repair and return the car to service as soon as practicable.

3-36      3.  An administrative charge pursuant to paragraph [(g)] (h) of

3-37  subsection 1 of NRS 482.31535 must not exceed:

3-38      (a) Fifty dollars if the total estimated cost for parts and labor is

3-39  more than $100 and less than or equal to $500.

3-40      (b) One hundred dollars if the total estimated cost for parts and

3-41  labor is more than $500 and less than or equal to $1,500.

3-42      (c) One hundred and fifty dollars if the total estimated cost for

3-43  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 rental day or 24-hour

4-34  rental period , as appropriate, 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