Florida Senate - 2020                        COMMITTEE AMENDMENT
       Bill No. SB 1738
       
       
       
       
       
       
                                Ì5746626Î574662                         
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                  Comm: RCS            .                                
                  02/12/2020           .                                
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       The Committee on Infrastructure and Security (Lee) recommended
       the following:
       
    1         Senate Amendment (with title amendment)
    2  
    3         Delete everything after the enacting clause
    4  and insert:
    5         Section 1. The Legislature finds that absent negligence or
    6  criminal conduct by a motor vehicle dealer, or its leasing or
    7  rental affiliates, subjecting motor vehicle dealers and their
    8  leasing and rental affiliates to vicarious liability under the
    9  dangerous instrumentality doctrine when a temporary replacement
   10  vehicle is provided to a consumer is both unfair and
   11  economically disadvantageous in that it causes dealers and their
   12  leasing or rental affiliates to suffer higher insurance costs,
   13  which are then passed on to consumers. Additionally, application
   14  of the vicarious liability doctrine in such cases often serves
   15  to relieve the actual tortfeasor from liability.
   16         Section 2. Paragraph (c) of subsection (9) of section
   17  324.021, Florida Statutes, is amended to read:
   18         324.021 Definitions; minimum insurance required.—The
   19  following words and phrases when used in this chapter shall, for
   20  the purpose of this chapter, have the meanings respectively
   21  ascribed to them in this section, except in those instances
   22  where the context clearly indicates a different meaning:
   23         (9) OWNER; OWNER/LESSOR.—
   24         (c) Application.—
   25         1. The limits on liability in subparagraphs (b)2. and 3. do
   26  not apply to an owner of motor vehicles that are used for
   27  commercial activity in the owner’s ordinary course of business,
   28  other than a rental company that rents or leases motor vehicles.
   29  For purposes of this paragraph, the term “rental company”
   30  includes only an entity that is engaged in the business of
   31  renting or leasing motor vehicles to the general public and that
   32  rents or leases a majority of its motor vehicles to persons with
   33  no direct or indirect affiliation with the rental company. The
   34  term also includes a motor vehicle dealer that provides
   35  temporary replacement vehicles to its customers for up to 10
   36  days. The term “rental company” also includes:
   37         a. A related rental or leasing company that is a subsidiary
   38  of the same parent company as that of the renting or leasing
   39  company that rented or leased the vehicle.
   40         b. The holder of a motor vehicle title or an equity
   41  interest in a motor vehicle title if the title or equity
   42  interest is held pursuant to or to facilitate an asset-backed
   43  securitization of a fleet of motor vehicles used solely in the
   44  business of renting or leasing motor vehicles to the general
   45  public and under the dominion and control of a rental company,
   46  as described in this subparagraph, in the operation of such
   47  rental company’s business.
   48         2. Furthermore, with respect to commercial motor vehicles
   49  as defined in s. 627.732, the limits on liability in
   50  subparagraphs (b)2. and 3. do not apply if, at the time of the
   51  incident, the commercial motor vehicle is being used in the
   52  transportation of materials found to be hazardous for the
   53  purposes of the Hazardous Materials Transportation Authorization
   54  Act of 1994, as amended, 49 U.S.C. ss. 5101 et seq., and that is
   55  required pursuant to such act to carry placards warning others
   56  of the hazardous cargo, unless at the time of lease or rental
   57  either:
   58         a. The lessee indicates in writing that the vehicle will
   59  not be used to transport materials found to be hazardous for the
   60  purposes of the Hazardous Materials Transportation Authorization
   61  Act of 1994, as amended, 49 U.S.C. ss. 5101 et seq.; or
   62         b. The lessee or other operator of the commercial motor
   63  vehicle has in effect insurance with limits of at least
   64  $5,000,000 combined property damage and bodily injury liability.
   65         3.a. A motor vehicle dealer or a motor vehicle dealer’s
   66  leasing or rental affiliate that provides a temporary
   67  replacement vehicle at no charge or at a reasonable daily charge
   68  to a service customer whose vehicle is being held for repair,
   69  service, or adjustment by the motor vehicle dealer is immune
   70  from any cause of action and is not liable, vicariously or
   71  directly, under general law by reason of being the owner of the
   72  temporary replacement vehicle for harm to persons or property
   73  which arises out of the use or operation of the temporary
   74  replacement vehicle by any person named in the rental or use
   75  agreement during the period the temporary replacement vehicle
   76  has been entrusted to the motor vehicle dealer’s service
   77  customer if there is no negligence or criminal wrongdoing on the
   78  part of the motor vehicle owner or its leasing or rental
   79  affiliate.
   80         b. For purposes of this subparagraph, the term “service
   81  customer” does not include an employee, an agent, or a principal
   82  of a motor vehicle dealer or a motor vehicle dealer’s leasing or
   83  rental affiliate.
   84         c. The limits on liability in this subparagraph do not
   85  apply if there is a replacement vehicle mechanical failure or
   86  defect that is a proximate cause of harm to persons or property
   87  which arises out of the use or operation of the temporary
   88  replacement vehicle.
   89         d. The limits on liability in this subparagraph do not
   90  apply unless there is a written rental or use agreement that
   91  names the drivers who will be given possession, control, or use
   92  of the temporary replacement vehicle; the rental or use
   93  agreement prohibits any person not listed in the agreement from
   94  using the temporary replacement vehicle; and the motor vehicle
   95  dealer or the motor vehicle dealer’s leasing or rental affiliate
   96  obtains from the person receiving the temporary replacement
   97  vehicle a copy of the person’s driver license and insurance
   98  information reflecting at least the minimum motor vehicle
   99  insurance coverage required in this state.
  100         Section 3. This act shall take effect July 1, 2020.
  101  
  102  ================= T I T L E  A M E N D M E N T ================
  103  And the title is amended as follows:
  104         Delete everything before the enacting clause
  105  and insert:
  106                        A bill to be entitled                      
  107         An act relating to motor vehicle dealers; providing
  108         legislative findings; amending s. 324.021, F.S.;
  109         providing that certain motor vehicle dealers and their
  110         leasing or rental affiliates are immune from causes of
  111         action and are not liable for harm to persons or
  112         property under certain circumstances; defining the
  113         term “service customer”; providing exceptions to the
  114         limits on liability; providing an effective date.