Chapter 224

2004 -- S 2481 SUBSTITUTE A AS AMENDED

Enacted 6/30/04

A N A C T

RELATING TO MOTOR AND OTHER VEHICLES

Introduced By: Senator Maryellen Goodwin

Date Introduced: February 11, 2004

It is enacted by the General Assembly as follows:

SECTION 1. Section 3 of chapter 115 of the 2003 Public Laws, entitled “An Act

Relating to Motor and Other Vehicles,” is hereby amended to read as follows:

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~~ 2005.

SECTION 2. Section 4 of chapter 115 of the 2003 Public Laws is hereby amended to

read as follows:

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Sections 1 and 2 of this act shall be repealed on July 1, ~~2004~~ 2005.

Any written rental or lease agreement entered into on or after July 1, ~~2004~~ 2005 shall be

subject to the provisions of sections 31-33-5 and 31-34-4 in effect prior to the passage of this act.

SECTION 3. Section 3 of chapter 117 of the 2003 Public Laws, entitled “An Act

Relating to Motor and Other Vehicles,” is hereby amended to read as follows:

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~~ 2005.

SECTION 4. Section 4 of chapter 117 of the 2003 Public Laws is hereby amended as

follows:

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Sections 1 and 2 of this act shall be repealed on July 1, ~~2004~~ 2005.

Any written rental or lease agreement entered into on or after July 1, ~~2004~~ 2005 shall be

subject to the provisions of sections 31-33-5 and 31-34-4 in effect prior to the passage of this act.

SECTION 5. 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. [Effective until July 1, 2004.]~~ Owner's

liability for acts of others. [Effective until July 1, 2005.] -- (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.

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.

(i) Sunset provision: The amendments contained in chapter 115 of the 2003 public laws

shall be repealed July 1, 2005 and shall apply to any accident occurring after July 7, 2003, 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 July 7, 2003; and

(ii) the agreement was in effect at the time the accident occurred, and the agreement is

entered into before 11:59 p.m. on June 30, 2005.

SECTION 6. 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. [Effective until July 1, 2004.]~~

Liability of owner for negligence of operator. [Effective until July 1, 2005.] -- (a) 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.

(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.

(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.

(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.