Chapter 117
2003 -- S 0668 SUBSTITUTE B AS AMENDED
Enacted 07/07/03
A N A C T
RELATING
TO MOTOR AND OTHER VEHICLES
Introduced
By: Senator Maryellen Goodwin
Date
Introduced: February 13, 2003
It
is enacted by the General Assembly as follows:
SECTION
1. Section 31-33-6 of the General Laws in Chapter 31-33 entitled "Safety
Responsibility
Violations - General Provisions" is hereby amended to read as follows:
31-33-6.
Owner's liability for acts of others. – Whenever (a) Except
as provided in
subsections
(c), (d) and (e) below, whenever any motor vehicle shall be used, operated, or
caused
to be
operated upon any public highway of this state with the consent of the owner,
lessee, or
bailee,
expressed or implied, the driver of it, if other than the owner, lessee, or
bailee, shall in the
case
of an accident be deemed to be the agent of the owner, lessee, or bailee, of
the motor vehicle
unless
the driver shall have furnished proof of financial responsibility in the amount
set forth in
chapter
32 of this title, prior to the accident.
(b)
For the purposes of this section, the term "owner" includes any
person, firm,
copartnership,
association, or corporation having the lawful possession or control of a motor
vehicle
under a written sale agreement.
(c)
Notwithstanding the provisions of subsections (a) and (b) immediately above,
the
liability
of a lessor of a short-term rental motor vehicle or truck will be subject to a
limit of two
hundred
fifty thousand dollars ($250,000) for bodily injury to or the death of one
person in any
one
accident, and subject to the limit for one person, to a limit of five hundred
thousand dollars
($500,000)
for bodily injury to or the death of two (2) or more persons in any one
accident, and a
limit
of twenty-five thousand dollars ($25,000) because of injury to or destruction
of property of
others
in any one accident.
(d)
Notwithstanding the provisions of subsections (a) and (b) above, if a person,
firm,
copartnership,
association, or corporation:
(1)(A)
holds title to a long-term lease motor vehicle or truck as lessor; or
(B)
is the successor to or assignee of the lessor’s interest in a long-term lease
motor
vehicle
or truck and holds title thereto; and
(2)
at the time of the accident, the lessee holds valid motor vehicle liability
insurance on
the
vehicle which contains limits in an amount equal to or greater than one hundred
thousand
dollars
($100,000) for bodily injuries to any one person, three hundred thousand
dollars
($300,000)
for bodily injuries in any one accident, and fifty thousand dollars ($50,000)
for
damage
to property of others in any accident or a combined single limit of three
hundred
thousand
dollars ($300,000) or greater; then the lessee shall, for the purposes of this
section, be
the
“owner” and the title holder will neither be the “owner” for the purposes of
this section nor
otherwise
responsible under this section.
(e)
Notwithstanding subsections (a) and (b) above, if a person, firm,
copartnership,
association,
or corporation:
(1)(A)
holds title to a long-term lease motor vehicle or truck as lessor; or
(B)
is the successor to or assignee of the lessor’s interest in a long-term lease
motor
vehicle
or truck and holds title thereto; and
(2)
at the time of the accident, the lessee does not hold valid motor vehicle
liability
insurance
on the vehicle which contains limits in an amount equal to or greater than one
hundred
thousand
dollars ($100,000) for bodily injuries to any one person, three hundred
thousand dollars
($300,000)
for bodily injuries in any one accident, and fifty thousand dollars ($50,000)
for
damage
to property of others in any accident or a combined single limit of three
hundred
thousand
dollars ($300,000) or greater; then the title holder’s financial responsibility
as “owner”
of
the motor vehicle or truck will be limited to the difference between: (1) the
motor vehicle
liability
insurance limit actually maintained by the lessee at the time of the accident;
and (2) one
hundred
thousand dollars ($100,000) for bodily injuries to any one person, three
hundred
thousand
dollars ($300,000) for bodily injuries in any one accident, and fifty thousand
dollars
($50,000)
for damage to property of others in any accident.
(f)
“Lessor” includes any entity in the business of renting and/or leasing motor
vehicles
pursuant
to a written rental and/or lease agreement.
(g)
“Short-term rental motor vehicle or truck” means, for the purposes of this
section, a
motor
vehicle or truck that is leased by a lessor, pursuant to a written lease or
rental agreement,
for
an initially agreed-upon term of less than twelve (12) months.
(h)
“Long-term lease motor vehicle or truck” means, for the purposes of this
section, a
motor
vehicle or truck that is leased by a lessor, pursuant to a written lease or
rental agreement,
for
an initially agreed-upon term of twelve (12) months or longer.
SECTION
2. Section 31-34-4 of the General Laws in Chapter 31-34 entitled
"Responsibility
of Owners of Rental Vehicles" is hereby amended to read as follows:
31-34-4.
Liability of owner for negligence of operator. -- (a) Any Except
as provided
below,
any
owner of a for hire motor vehicle or truck who has given proof of financial
responsibility
under this chapter or who in violation of this chapter has failed to give proof
of
financial
responsibility, shall be jointly and severally liable with any person operating
the vehicle
for
any damages caused by the negligence of any person operating the vehicle by or
with the
permission
of the owner. Nothing in this section shall be construed to prevent an owner
who has
furnished
proof of financial responsibility or any person operating the vehicle from
making
defense
in an action upon the ground of contributory negligence to the extent to which
the
defense
is allowed in other cases.
(b)
The liability of a lessor of a short-term rental motor vehicle or truck under
this section
shall
be subject to a limit of two hundred fifty thousand dollars ($250,000) for
bodily injury to or
the
death of one person, and subject to the limit for one person, to a limit of
five hundred
thousand
dollars ($500,000) for bodily injury to or the death of two or more persons in
any one
accident,
and a limit of twenty-five thousand dollars ($25,000) because of injury to or
destruction
of
property of others in any one accident.
(c)
With respect to any long-term lease motor vehicle or truck:
(1)
the owner and/or lessor (and/or its successors or assignees) of a long term
lease motor
vehicle
or truck who is not the operator of the vehicle at the time of an accident
shall not be
jointly
and severally liable with the operator and/or the lessee of the vehicle for any
damages
caused
by the negligence of any person operating the vehicle if, at the time of the
accident, the
lessee
has valid motor vehicle liability insurance which contains limits in an amount
equal to or
greater
than one hundred thousand dollars ($100,000) for bodily injuries to any one
person in any
one
accident, three hundred thousand dollars ($300,000) for bodily injuries in any
one accident,
and
fifty thousand dollars ($50,000) for damage to property of others in any
accident or a
combined
single limit of three hundred thousand dollars ($300,000) or greater;
(2)
If the lessee of a long-term lease motor vehicle or truck does not have
insurance in the
amounts
set forth in subsection (c)(1) above, then the liability of the owner and/or
lessor (and/or
its
successors or assignees) of a long-term lease motor vehicle or truck shall not
exceed the
difference
between: (1) the motor vehicle liability insurance limits actually maintained
by the
lessee
of the long-term lease motor vehicle or truck at the time of the accident; and
(2) one
hundred
thousand dollars ($100,000) for bodily injuries to any one person, three
hundred
thousand
dollars ($300,000) for bodily injuries in any one accident, and fifty thousand
dollars
($50,000)
for damage to property of others in any accident.
(d)
Nothing in this section shall be construed to prevent an owner who has
furnished
proof
of financial responsibility or any person operating the vehicle from making
defense in an
action
upon the ground of comparative negligence to the extent to which the defense is
allowed in
other
cases.
(b) (e) Notwithstanding the provisions of subsection (a) of this
section, or any provisions
contained
under title 31 to the contrary, the operator’s valid collectable liability
or self-insurance
providing
coverage or liability protection for any third party liability claims shall be
primary, and
the
valid and collectable liability or self-insurance providing coverage or
liability protection for
any
third-party liability claims for the owner and/or lessor arising out of the
operation of the
vehicle
shall be excess. This shall be stated in ten (10) point type on the face of any
short-term
rental
agreement.
the valid and collectable liability insurance or self-insurance providing
coverage
or liability protection for third party liability claims arising out of the
operation of the
rental
vehicle shall be primary for the lessor or any person operating the motor
vehicle, with the
express
permission of the lessor unless otherwise stated in at least ten (10) point
type on the face
of
the rental agreement. That insurance or self-insurance is primary only up to
the limits required
under
section 31-31-7.
(c) (f) "Lessor" includes any entity in the business of
renting and/or leasing motor
vehicles
pursuant to a written rental and/or lease agreement.
(g)
“Short-term rental motor vehicle or truck” means, for the purposes of this
section, a
motor
vehicle or truck that is leased by a lessor, pursuant to a written lease or
rental agreement,
for
an initially agreed-upon term of less than twelve (12) months.
(h)
“Long-term lease motor vehicle or truck” means, for the purposes of this
section, a
motor
vehicle or truck that is leased by a lessor, pursuant to a written lease or
rental agreement,
for
an initially agreed-upon term of twelve (12) months or longer.
SECTION
3. This act shall take effect upon passage and shall apply to any accident
occurring
after the effective date of this act, and shall apply with respect to all
accidents involving
a for
hire motor vehicle or truck subject to a written rental or lease agreement
throughout the
entire
term of said agreement or thirty-nine (39) months, whichever is shorter,
provided that:
(i)
the accident occurred after the passage of this act, and
(ii)
the agreement was in effect at the time of passage of this act, or the
agreement is
entered
into before 11:59 p.m. on June 30, 2004.
SECTION
4. Except as provided in Section 3 of this act, the amendments contained in
Sections
1 and 2 of this act shall be repealed on July 1, 2004.
Any
written rental or lease agreement entered into on or after July 1, 2004 shall
be
subject
to the provisions of sections 31-33-6 and 31-34-4 in effect prior to the
passage of this act.
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LC02487/SUB
B
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