AB714: Bill Text

LRB-2949/2

PJH:jld:pg

2003 - 2004 LEGISLATURE

2003 Assembly BILL 714

January 5, 2004 - Introduced by Representatives Montgomery, Weber, Ladwig, Hundertmark, Musser, Van Roy, Friske, Vrakas and Seratti, cosponsored by Senators Schultz, Reynolds and Kanavas. Referred to Committee on Insurance.

AB714,1,3 An Act to repeal 344.574 (2) (b) 2.; and to create 344.57 (3g) and (3m) of the statutes and 344.574 (2) (a) 3. of the statutes; relating to: loss of use of rental motor vehicles.

Analysis by the Legislative Reference Bureau

Under current law, a person who operates a rental company may recover certain costs if a private passenger vehicle is damaged while the vehicle is under a rental agreement or if the renter or authorized driver damages the vehicle intentionally or recklessly. These costs include the actual and reasonable costs of towing and storing the vehicle for no more than two days and the lesser of the actual and reasonable costs that the rental company incurred to repair the vehicle or the fair market value of the vehicle immediately before the damage occurred. The rental company may not recover costs for the loss of use of the private passenger vehicle.

This bill allows a rental company to recover costs for the loss of use of a private passenger vehicle if the costs are the result of damage while the vehicle is under a rental agreement or if the renter or authorized driver damages the vehicle intentionally or recklessly.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

AB714, s. 1 Section 1. 344.57 (3g) and (3m) of the statutes are created to read:

AB714,2,2 344.57 (3g) "Fair rental value" means the daily rental rate of a private passenger vehicle under a rental agreement.

AB714,2,6 (3m) "Loss of use" means the fair rental value multiplied by the number of days from the date on which a vehicle is damaged, for a time period, not to exceed 45 days, reasonably required to repair or replace the vehicle, including a reasonable time to determine whether the vehicle is repairable.

AB714, s. 2 Section 2. 344.574 (2) (a) 3. of the statutes is created to read:

AB714,2,8 344.574 (2) (a) 3. Loss of use of the private passenger vehicle.

AB714, s. 3 Section 3. 344.574 (2) (b) 2. of the statutes is repealed.

AB714, s. 4 Section 4. Initial applicability.

AB714,2,12 (1) This act first applies to rental agreements entered into on the effective date of this subsection.

AB714,2,13 (End)