LRB-4704/1
PJH:wlj&jld:pg
2005 - 2006 LEGISLATURE
February 22, 2006 - Introduced by Senators Darling and A. Lasee, cosponsored
by Representatives Stone, Hahn, Krawczyk, Albers, Petrowski, Townsend,
Montgomery and McCormick. Referred to Committee on Job Creation,
Economic Development and Consumer Affairs.
SB623,1,5
1An Act to repeal 344.578 (2);
to renumber and amend 344.57 (1) and 344.578
2(1);
to amend 344.574 (2) (a) 2., 344.574 (4) (b), 344.576 (3) (a) (intro.), 344.576
3(3) (b), 344.576 (3) (c) and 344.579 (3); and
to create 344.57 (1) (a) and (b) and
4344.576 (2) (k) of the statutes;
relating to: damages to rental vehicles, and
5granting rule-making authority.
Analysis by the Legislative Reference Bureau
Under current law, a vehicle rental company may hold a renter liable for
damages to a rented vehicle if an accident occurs during the rental period or if the
renter of an authorized vehicle causes the damage by reckless or wanton misconduct.
Current law defines an "accident" as a collision or other upset to the private
passenger vehicle while the vehicle is in operation. The renter is liable for actual and
reasonable costs of repairing the vehicle or the fair market value of the vehicle, and
for actual and reasonable costs incurred by the rental company for towing and
storing the vehicle for up to two days. However, to collect the amount of liability, the
rental company must obtain and make available to the renter or his or her insurance
company at least two estimates of the cost of repairs from competing repair shops.
Current law allows a rental company to offer or sell a damage waiver to a renter
that would eliminate or limit the renter's liability for damages unless the damage is
caused by certain reckless, intentional, prohibited, or illegal acts by the renter. A
copy of the damage waiver must be provided to the renter and must explain the
details of the waiver, including the limits of liability, exceptions to the waiver, and
an explanation of the renter's rights and responsibilities under the damage waiver
agreement.
Under current law, a rental company may not use credit available pursuant to
a credit card belonging to a renter as a deposit for damages for which the renter may
be held liable, but it may use credit available pursuant to a credit card belonging to
a renter as a deposit for the cost of the vehicle rental.
This bill changes the definition of "accident" to include a collision, theft or loss
of the vehicle, or other upset to the vehicle that is not caused intentionally by the
renter. A renter is presumed not to have intentionally caused theft or loss to the
vehicle if he or she has possession of the ignition key or establishes that the key was
not left in the vehicle when the theft or loss occurred, he or she files an official report
of the theft or loss with law enforcement authorities, and he or she cooperates in any
investigation of the theft or loss.
The bill eliminates the two-day limit on charging storage fees for a vehicle, and
eliminates the requirement that a rental agency obtain and furnish a second
estimate from competing repair shops before assessing damages against a renter.
Rather, under the bill, the rental company must obtain and furnish a second estimate
upon request. The bill allows a rental company to use credit available pursuant to
a credit card belonging to the rental as a deposit for damages to the vehicle, the cost
of the vehicle rental, and any other charges that are agreed to in a rental agreement.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB623, s. 1
1Section
1. 344.57 (1) of the statutes is renumbered 344.57 (1) (intro.) amended
2to read:
SB623,2,73
344.57
(1) (intro.) "Accident" means collision of a private passenger vehicle
4with another object
, theft or loss of the private passenger vehicle, or other upset of
5the private passenger vehicle
while in operation.
not caused intentionally by the
6renter. A renter is presumed to have not caused theft or loss to the vehicle
7intentionally if all of the following apply:
SB623, s. 2
8Section
2. 344.57 (1) (a) and (b) of the statutes are created to read:
SB623,2,119
344.57
(1) (a) The renter or authorized driver has possession of the ignition key
10furnished by the rental company or establishes that the ignition key furnished by the
11rental company was not in the vehicle at the time of the theft or loss.
SB623,3,4
1(b) The renter or authorized driver files an official report of the theft or loss with
2the police or other law enforcement agency within 24 hours of learning of the theft
3or loss and reasonably cooperates with the rental company, police, and other law
4enforcement agencies in providing information concerning the theft or loss.
SB623, s. 3
5Section
3. 344.574 (2) (a) 2. of the statutes is amended to read:
SB623,3,96
344.574
(2) (a) 2. Actual and reasonable costs incurred by the rental company
7for towing the private passenger vehicle and for storage of the private passenger
8vehicle
for no more than 2 days after the renter notifies the rental company of the
9damage to the vehicle.
SB623, s. 4
10Section
4. 344.574 (4) (b) of the statutes is amended to read:
SB623,3,1711
344.574
(4) (b) Obtains
at least 2 estimates from competing repair shops an
12estimate on the costs of repairing the private passenger vehicle, makes a copy of
each 13the estimate available upon request to the renter or authorized driver who may be
14liable under sub. (1) (b) or the insurer of the renter or authorized driver who may be
15liable under sub. (1) (b) and submits a copy of
each
the estimate with any claim to
16collect the amount described in sub. (2) (a).
Upon request the rental company shall
17obtain a 2nd estimate and make a copy available to the requester.
SB623, s. 5
18Section
5. 344.576 (2) (k) of the statutes is created to read:
SB623,3,2319
344.576
(2) (k) The damage occurs while the private passenger vehicle is
20operated by someone other than an authorized driver as defined in s. 344.57 (2). This
21paragraph does not apply if the vehicle has been lost or a theft has occurred and the
22renter is presumed to have not caused the theft or loss intentionally under s. 344.57
23(1).
SB623, s. 6
24Section
6. 344.576 (3) (a) (intro.) of the statutes is amended to read:
SB623,4,4
1344.576
(3) (a) (intro.) A rental company that offers or sells a damage waiver
2shall provide to each renter a written notice that is
in the form required by part of
3the rental agreement or on a separate form described in the rule under par. (c) and
4that includes all of the following:
SB623, s. 7
5Section
7. 344.576 (3) (b) of the statutes is amended to read:
SB623,4,106
344.576
(3) (b) A rental company that offers or sells a damage waiver shall
7provide the notice described in par. (a) to each renter before the renter enters into a
8rental agreement.
The If a separate form is used to give notice under par. (a), the 9rental company shall give
the each renter one copy of the notice signed by
the renter 10him or her and shall retain one copy in its files.
SB623, s. 8
11Section
8. 344.576 (3) (c) of the statutes is amended to read:
SB623,4,1812
344.576
(3) (c)
The department of agriculture, trade and consumer protection
13shall promulgate rules specifying the form of the notice required under par. (a),
14including the size of the paper and the type size and any highlighting of the
15information described in par. (a). The
rule may
department shall promulgate rules
16that specify additional information that must be included in the notice
in a clear and
17conspicuous manner that is reasonably designed to be noticed and readily
18understood by the consumer, and the precise language that must be used.
SB623, s. 9
19Section
9. 344.578 (1) of the statutes is renumbered 344.578 and amended to
20read:
SB623,5,6
21344.578 Prohibited deposits; collection of damages. A If authorized by the
22renter, a rental company may
not use credit available pursuant to a credit card
23belonging to a renter as a deposit for damages for which the renter may be held liable
24under s. 344.574 (2) (a) or for any other charges
, except as provided in sub. (2) 25provided for in the rental agreement. If a rented private passenger vehicle is
1damaged, the rental company may use credit available pursuant to a credit card
2belonging to the renter as payment for the damages for which the renter is liable
3under s. 344.574 (2) (a) only if the rental company obtains the renter's authorization
4to use that credit and the authorization is obtained after the total amount of the
5renter's liability is determined and before the rental company processes the credit
6card charge.
SB623, s. 10
7Section
10. 344.578 (2) of the statutes is repealed.
SB623, s. 11
8Section
11. 344.579 (3) of the statutes is amended to read:
SB623,5,149
344.579
(3) Defense. Proof by a rental company that the rental company began
10an action to impose liability upon a renter or authorized driver,
even though without
11regard to whether the renter had purchased a damage waiver sold under s. 344.576,
12because of a good-faith mistake that an exception under s. 344.576 (2) (a) to
(j) (k) 13applied is a defense to a prosecution for a violation of the terms of the damage waiver
14under s. 344.576 (2).
