(1) The term ‘‘rental car company’’ means any
person in the business of renting vehicles to the pub-
lic.
(2) The term ‘‘renter’’ means any person ob-
taining the use of a vehicle from a rental car com-
pany under the terms of a rental agreement.
(3) The term ‘‘rental agreement’’ means any
written agreement setting forth the terms and condi-
tions governing the use of a vehicle provided by a
rental car company.
(4) The term ‘‘damage’’ means any damage to
or loss of the rented vehicle, including loss of use
and any costs and expenses incident to the damage
or loss.
(5) The term ‘‘vehicle’’ means a motor vehicle
of the private passenger type (including passenger
vans and minivans) that are primarily intended for
transport of persons.
(6) The term ‘‘authorized driver’’ means—
(A) the individual to whom the vehicle is
rented,
(B) such individual’s spouse, if the spouse
is a licensed driver and satisfies the rental car
company’s minimum age requirement,
(C) such individual’s employer or coworker,
if such vehicle was rented for a business activity
and if such individual’s employer or coworker is
a licensed driver and satisfies the rental car
company’s minimum age requirement,
(D) any individual who operates the vehicle
during an emergency situation or while parking
the vehicle at a commercial establishment, or
(E) any individual expressly listed by the
rental car company on the rental agreement as
an authorized driver.
SEC. 3. PROHIBITED ACTIVITY.
(a) IN GENERAL.—No rental car company shall, in
rental agreements of 30 continuous days or less, hold any
authorized driver liable for any damage, except in any case
in which—
(1) the damage is caused intentionally by an
authorized driver or as a result of such driver’s will-
ful and wanton misconduct,
(2) the damage arises out of the authorized
driver’s operation of the vehicle while legally intoxi-
cated or under the influence of any illegal drug as
defined or determined under the law of the State in
which the damage occurred,
(3) the damage is caused while the authorized
driver is engaged in any speed contest,
(4) the rental transaction is based on informa-
tion supplied by the renter with the intent to de-
fraud the rental car company,
(5) the damage arises out of the use of the ve-
hicle while committing or otherwise engaged in a
criminal act in which the automobile usage is sub-
stantially related to the nature of the criminal activ-
ity,
(6) the damage arises out of the use of the ve-
hicle to carry individuals or property for hire, or
(7) the damage arises out of the use of the ve-
hicle outside of the United States or Canada unless
such use is specifically authorized by the rental
agreement.
(b) SECURITY DEPOSIT REQUEST PROHIBITED.—No
security deposit, in any form, for damage may be required
or requested by the rental car company during the rental
period or pending resolution of any dispute.
(c) WAIVERS PROHIBITED.—No waiver may be of-
fered or sold for any exception described in paragraphs
(1) through (7) of subsection (a).
SEC. 4. PENALTIES.
Any rental car company found by a court of com-
petent jurisdiction or the appropriate agency enforcing
this Act in any State to have violated section 3 shall be
subject to a civil penalty of not less than $500 nor more
than $1,000 for each violation.
SEC. 5. EFFECTIVE DATE.
This Act shall become effective 90 days after the date
of its enactment.
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