Florida Senate - 2020                                    SB 1738
       
       
        
       By Senator Brandes
       
       
       
       
       
       24-00544A-20                                          20201738__
    1                        A bill to be entitled                      
    2         An act relating to motor vehicle dealers; providing
    3         legislative findings; amending s. 324.021, F.S.;
    4         revising the definition of the term “rental company”
    5         to include motor vehicle dealers without limitation
    6         and their leasing and rental affiliates for the
    7         purpose of minimum insurance coverage requirements;
    8         providing that motor vehicle dealers and their
    9         affiliates are immune to causes of action and not
   10         vicariously liable for harm to persons or property
   11         under certain circumstances; providing that motor
   12         vehicle dealers and their affiliates are not adjudged
   13         liable in civil proceedings or guilty in criminal
   14         proceedings under certain circumstances; providing
   15         exceptions; providing an effective date.
   16          
   17  Be It Enacted by the Legislature of the State of Florida:
   18  
   19         Section 1. The Legislature finds that although the federal
   20  Graves Amendment, 49 U.S.C. s. 30106, has eliminated vicarious
   21  liability claims against motor vehicle rental and leasing
   22  companies for damages or injuries caused by customers during a
   23  rental or lease, motor vehicle dealers and their leasing and
   24  rental affiliates in the state are still subjected to suits for
   25  damages or injuries caused by customers during the customers’
   26  operation of temporary replacement vehicles owned, but not being
   27  operated, by the motor vehicle dealers and their leasing and
   28  rental affiliates. Absent negligence or criminal conduct by a
   29  motor vehicle dealer or its leasing or rental affiliates, the
   30  Legislature finds that subjecting motor vehicle dealers and
   31  their leasing and rental affiliates to this vicarious liability
   32  under the dangerous instrumentality doctrine is both unfair and
   33  economically disadvantageous to motor vehicle dealers, their
   34  leasing and rental affiliates, and state consumers in that it
   35  causes dealers and their affiliates to suffer higher insurance
   36  costs, which are then passed on to consumers. Vicarious
   37  liability in such cases often serves to relieve the actual
   38  tortfeasor from liability.
   39         Section 2. Paragraph (c) of subsection (9) of section
   40  324.021, Florida Statutes, is amended to read:
   41         324.021 Definitions; minimum insurance required.—The
   42  following words and phrases when used in this chapter shall, for
   43  the purpose of this chapter, have the meanings respectively
   44  ascribed to them in this section, except in those instances
   45  where the context clearly indicates a different meaning:
   46         (9) OWNER; OWNER/LESSOR.—
   47         (c) Application.—
   48         1. The limits on liability in subparagraphs (b)2. and 3. do
   49  not apply to an owner of motor vehicles that are used for
   50  commercial activity in the owner’s ordinary course of business,
   51  other than a rental company that rents or leases motor vehicles.
   52  For purposes of this paragraph, the term “rental company”
   53  includes:
   54         a.only An entity that is engaged in the business of
   55  renting or leasing motor vehicles to the general public and that
   56  rents or leases a majority of its motor vehicles to persons with
   57  no direct or indirect affiliation with the rental company.
   58         b.The term also includes A motor vehicle dealer, or a
   59  motor vehicle dealer’s leasing or rental affiliate, that
   60  provides temporary replacement vehicles to its customers for up
   61  to 10 days. The term “rental company” also includes:
   62         c.a. A related rental or leasing company that is a
   63  subsidiary of the same parent company as that of the renting or
   64  leasing company that rented or leased the vehicle.
   65         d.b. The holder of a motor vehicle title or an equity
   66  interest in a motor vehicle title if the title or equity
   67  interest is held pursuant to or to facilitate an asset-backed
   68  securitization of a fleet of motor vehicles used solely in the
   69  business of renting or leasing motor vehicles to the general
   70  public and under the dominion and control of a rental company,
   71  as described in this subparagraph, in the operation of such
   72  rental company’s business.
   73         2. Furthermore, With respect to commercial motor vehicles
   74  as defined in s. 627.732, the limits on liability in
   75  subparagraphs (b)2. and 3. do not apply if, at the time of the
   76  incident, the commercial motor vehicle is being used in the
   77  transportation of materials found to be hazardous for the
   78  purposes of the Hazardous Materials Transportation Authorization
   79  Act of 1994, as amended, 49 U.S.C. ss. 5101 et seq., and that is
   80  required pursuant to such act to carry placards warning others
   81  of the hazardous cargo, unless at the time of lease or rental
   82  either:
   83         a. The lessee indicates in writing that the vehicle will
   84  not be used to transport materials found to be hazardous for the
   85  purposes of the Hazardous Materials Transportation Authorization
   86  Act of 1994, as amended, 49 U.S.C. ss. 5101 et seq.; or
   87         b. The lessee or other operator of the commercial motor
   88  vehicle has in effect insurance with limits of at least
   89  $5,000,000 combined property damage and bodily injury liability.
   90         3.A motor vehicle dealer, or a motor vehicle dealer’s
   91  leasing or rental affiliate, that provides a temporary
   92  replacement vehicle at no charge or at a reasonable daily charge
   93  to a service customer whose vehicle is being repaired, serviced,
   94  or adjusted by the motor vehicle dealer is immune from any cause
   95  of action and is not liable, vicariously or otherwise, under
   96  general law by reason of being the owner of the temporary
   97  replacement vehicle, for harm to persons or property that arises
   98  out of the ownership, use, operation, control, or possession of
   99  the temporary replacement vehicle during the period the
  100  temporary replacement vehicle is in the use, operation, control,
  101  or possession of the motor vehicle dealer’s service customer, or
  102  such customer’s designee, if there is no negligence or criminal
  103  wrongdoing on the part of the motor vehicle owner, or its
  104  leasing or rental affiliate. For purposes of this section, and
  105  notwithstanding any other provision of general law or existing
  106  case law, a motor vehicle dealer, or a motor vehicle dealer’s
  107  leasing or rental affiliate, that gives possession, control, or
  108  use of a temporary replacement vehicle to a motor vehicle
  109  dealer’s service customer may not be adjudged liable in a civil
  110  proceeding, or guilty in a criminal proceeding, if the motor
  111  vehicle dealer or the motor vehicle dealer’s leasing or rental
  112  affiliate obtains from the service customer or the customer’s
  113  designee a copy of the customer’s driver license and information
  114  on the required minimum motor vehicle insurance coverage in the
  115  state. Any subsequent determination that the driver license or
  116  insurance information provided to the motor vehicle dealer, or
  117  the motor vehicle dealer’s leasing or rental affiliate, was in
  118  any way false, fraudulent, misleading, nonexistent, canceled,
  119  not in effect, or invalid does not alter or diminish the
  120  protections provided by this section, unless the motor vehicle
  121  dealer, or the motor vehicle dealer’s leasing or rental
  122  affiliate, had actual knowledge thereof at the time possession
  123  of the temporary replacement vehicle was provided to the
  124  customer.
  125         Section 3. This act shall take effect July 1, 2020.