Florida Senate - 2020 COMMITTEE AMENDMENT
Bill No. SB 1738
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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.