I
104TH CONGRESS
1ST SESSION
H. R. 175
To prohibit rental car companies from imposing liability on renters with
certain exceptions, to prohibit such companies from selling collision dam-
age waivers in connection with private passenger automobile rental agree-
ments of not more than 30 days, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
JANUARY 4, 1995
Mrs. COLLINS of Illinois introduced the following bill; which was referred to
the Committee on Commerce
A BILL
To prohibit rental car companies from imposing liability on
renters with certain exceptions, to prohibit such compa-
nies from selling collision damage waivers in connection
with private passenger automobile rental agreements of
not more than 30 days, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Collision Damage
Waiver Act’’.
SEC. 2. DEFINITIONS.
For purposes of this Act:
(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,
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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