SB 810 — AN ACT CONCERNING THE RENTING OR LEASING OF PASSENGER MOTOR VEHICLES.

Senate General Assembly FileSubstitute Bill No.

424810 January Session, 2023 SubstituteAN SenateACT BillCONCERNING No.THE RENTING OR LEASING OF PASSENGER MOTOR VEHICLES.

810 Senate, April 4, 2023 The Committee on Transportation reported through SEN.

COHEN of the 12th Dist., Chairperson of the Committee on the part of the Senate, that the substitute bill ought to pass.

AN ACT CONCERNING THE RENTING OR LEASING OF PASSENGER MOTOR VEHICLES.

(b) No person, firm or corporation engaged in the business of renting sSB810or /leasing Filepassenger motor vehicles without drivers, for periods of thirty days or less, shall require an additional driver of any customer to show proof that the additional driver holds a credit card as a condition totherentalofapassengermotorvehicletothecustomer,provided such additional driver shows proof of a valid motor vehicle operator's license LCO \\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-00810-R01 of 3 SB.docx Substitute Bill No.

424810 1and sSB810the Filecustomer No.shows proof that the customer holds a credit card.

424 or leasing passenger motor vehicles without drivers, for periods of thirty days or less, shall require an additional driver of any customer to show proof that the additional driver holds a credit card as a condition totherentalofapassengermotorvehicletothecustomer,providedsuch additional driver shows proof of a valid motor vehicle operator's license and the customer shows proof that the customer holds a credit card.

Make any false or misleading statements either orally or in writing, in connection with the sale, offer to sell, or sSB810advertisement /of Filea No.collision damage waiver;

424 2 sSB810 File No.

424 advertisement of a collision damage waiver;

(d)LCO Any{\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-008102 motor vehicle rental contract incorporating a provision whereby the lessor of rental3 motorR03-SB.docx vehicles} isSubstitute ableBill toNo. recover for the loss of use of a rental motor vehicle because of any damage to such motor vehicle incurred during the term of such contract may permit the lessor to collect no more than sixty per cent of the daily rental fee stated in the contract for each day thelessor isdeprivedthe use of suchmotor vehicle for a periodnot to exceed seven days.

810 (d) Any motor vehicle rental contract incorporating a provision whereby the lessor of rental motor vehicles is able to recover for the loss of use of a rental motor vehicle because of any damage to such motor vehicle incurred during the term of such contract may permit the lessor to collect no more than sixty per cent of the daily rental fee stated in the contract for eachday thelessor isdeprivedthe use of suchmotor vehicle for a periodnot to exceed seven days.

Section 1 July 1, 2023 Section 1 14-153b Sec.

sSB810JUD /Joint FileFavorable No.LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-00810- 3 of 3 R03-SB.docx }

424 3 sSB810 File No.

424 The following Fiscal Impact Statement and Bill Analysis are prepared for the benefit of the members of the General Assembly, solely for purposes of information, summarization and explanation and do not represent the intent of the General Assembly or either chamber thereof for any purpose.

In general, fiscal impacts are based upon a variety of informational sources, including the analyst’s professional knowledge.

Whenever applicable, agency data is consulted as part of the analysis, however final products do not necessarily reflect an assessment from any specific department.

OFA Fiscal Note State Impact:

None Municipal Impact:

None Explanation The bill makes various changes regarding renting or leasing of motor vehicles including adding a section to the current unfair trade practice violations resulting in no fiscal impact to the state as the Department of Consumer Protection has the resources to meet the requirements of the bill.

The Out Years State Impact:

None Municipal Impact:

None sSB810 / File No.

424 4 sSB810 File No.

424 OLR Bill Analysis sSB 810 AN ACT CONCERNING THE RENTING OR LEASING OF PASSENGER MOTOR VEHICLES.

SUMMARY This bill limits the amount that lessors of rental motor vehicles (see BACKGROUND) may collect through loss of use clauses (i.e., provisions in motor vehicle rental contracts allowing recovery for the “loss of use” of a rental motor vehicle due to damage it incurred during the contract’s term).

The bill defines loss of use as the deprivation of the lessor’s use of a rental motor vehicle during the period reasonably required to repair or replace the vehicle.

In practice, companies offering rental cars may include loss of use clauses in rental contracts allowing them to collect a fee from the renter for the period the vehicle cannot be rented to another person, but they will typically offer to waive their rights to recover the fee if the renter pays for a collision damage waiver or separate loss of use waiver.

Under the bill, any motor vehicle rental contract with a loss of use clause may allow the lessor to collect up to 60% of the daily rental fee stated in the contract for each day the lessor cannot use the vehicle, up to seven days.

When a rental contract is executed with a loss of use clause, the bill requires the lessor to explain the provision to the lessee orally, in plain language.

The bill makes violations of its loss of use clause provisions unfair trade practices under the Connecticut Unfair Trade Practices Act (CUTPA, see BACKGROUND).

The bill also prohibits short-term car rental companies (i.e., those renting passenger motor vehicles without drivers for periods of 30 days or less) from requiring a credit card from an additional driver under sSB810 / File No.

424 5 sSB810 File No.

424 certain circumstances.

Existing law prohibits these companies from requiring a customer to show proof of credit card as a condition for renting a vehicle, but they may require customers seeking to rent with cash to apply for advanced approval and leave a reasonable deposit.

If the customer shows proof of a credit card, the bill additionally prohibits car rental companies from requiring a customer’s additional driver to also prove that he or she holds a credit card, as long as the additional driver shows proof of a valid driver’s license.

EFFECTIVE DATE:

July 1, 2023, and the loss of use clause provision is applicable to contracts entered into on and after that date.