| 1 | A bill to be entitled |
| 2 | An act relating to financial responsibility for operation |
| 3 | of motor vehicles; amending s. 324.021, F.S.; expanding |
| 4 | the definition of "rental company" for purposes of an |
| 5 | exclusion from an exemption from application of certain |
| 6 | limits of liability provisions to include certain holders |
| 7 | of a motor vehicle title or an equity interest in a motor |
| 8 | vehicle title under certain circumstances; providing an |
| 9 | effective date. |
| 10 |
|
| 11 | Be It Enacted by the Legislature of the State of Florida: |
| 12 |
|
| 13 | Section 1. Paragraph (c) of subsection (9) of section |
| 14 | 324.021, Florida Statutes, is amended to read: |
| 15 | 324.021 Definitions; minimum insurance required.--The |
| 16 | following words and phrases when used in this chapter shall, for |
| 17 | the purpose of this chapter, have the meanings respectively |
| 18 | ascribed to them in this section, except in those instances |
| 19 | where the context clearly indicates a different meaning: |
| 20 | (9) OWNER; OWNER/LESSOR.-- |
| 21 | (c) Application.-- |
| 22 | 1. The limits on liability in subparagraphs (b)2. and 3. |
| 23 | do not apply to an owner of motor vehicles that are used for |
| 24 | commercial activity in the owner's ordinary course of business, |
| 25 | other than a rental company that rents or leases motor vehicles. |
| 26 | For purposes of this paragraph, the term "rental company" |
| 27 | includes only an entity that is engaged in the business of |
| 28 | renting or leasing motor vehicles to the general public and that |
| 29 | rents or leases a majority of its motor vehicles to persons with |
| 30 | no direct or indirect affiliation with the rental company. The |
| 31 | term also includes a motor vehicle dealer that provides |
| 32 | temporary replacement vehicles to its customers for up to 10 |
| 33 | days. The term also includes the holder of a motor vehicle title |
| 34 | or an equity interest in a motor vehicle title if the title or |
| 35 | equity interest is held pursuant to an asset-backed |
| 36 | securitization of a fleet of motor vehicles under the dominion |
| 37 | and control of a rental company, as described in this |
| 38 | subparagraph, in the operation of such rental company's |
| 39 | business. |
| 40 | 2. Furthermore, with respect to commercial motor vehicles |
| 41 | as defined in s. 627.732, the limits on liability in |
| 42 | subparagraphs (b)2. and 3. do not apply if, at the time of the |
| 43 | incident, the commercial motor vehicle is being used in the |
| 44 | transportation of materials found to be hazardous for the |
| 45 | purposes of the Hazardous Materials Transportation Authorization |
| 46 | Act of 1994, as amended, 49 U.S.C. ss. 5101 et seq., and that is |
| 47 | required pursuant to such act to carry placards warning others |
| 48 | of the hazardous cargo, unless at the time of lease or rental |
| 49 | either: |
| 50 | a. The lessee indicates in writing that the vehicle will |
| 51 | not be used to transport materials found to be hazardous for the |
| 52 | purposes of the Hazardous Materials Transportation Authorization |
| 53 | Act of 1994, as amended, 49 U.S.C. ss. 5101 et seq.; or |
| 54 | b. The lessee or other operator of the commercial motor |
| 55 | vehicle has in effect insurance with limits of at least |
| 56 | $5,000,000 combined property damage and bodily injury liability. |
| 57 | Section 2. This act shall take effect July 1, 2005. |