Florida Senate - 2020 COMMITTEE AMENDMENT Bill No. SB 1738 Ì5746626Î574662 LEGISLATIVE ACTION Senate . House Comm: RCS . 02/12/2020 . . . . ————————————————————————————————————————————————————————————————— ————————————————————————————————————————————————————————————————— 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.