Florida Senate - 2020                             CS for SB 1738
       
       
        
       By the Committee on Infrastructure and Security; and Senator
       Brandes
       
       
       
       
       596-03411-20                                          20201738c1
    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         providing that certain motor vehicle dealers and their
    5         leasing or rental affiliates are immune from causes of
    6         action and are not liable for harm to persons or
    7         property under certain circumstances; defining the
    8         term “service customer”; providing exceptions to the
    9         limits on liability; providing an effective date.
   10          
   11  Be It Enacted by the Legislature of the State of Florida:
   12  
   13         Section 1. The Legislature finds that absent negligence or
   14  criminal conduct by a motor vehicle dealer, or its leasing or
   15  rental affiliates, subjecting motor vehicle dealers and their
   16  leasing and rental affiliates to vicarious liability under the
   17  dangerous instrumentality doctrine when a temporary replacement
   18  vehicle is provided to a consumer is both unfair and
   19  economically disadvantageous in that it causes dealers and their
   20  leasing or rental affiliates to suffer higher insurance costs,
   21  which are then passed on to consumers. Additionally, application
   22  of the vicarious liability doctrine in such cases often serves
   23  to relieve the actual tortfeasor from liability.
   24         Section 2. Paragraph (c) of subsection (9) of section
   25  324.021, Florida Statutes, is amended to read:
   26         324.021 Definitions; minimum insurance required.—The
   27  following words and phrases when used in this chapter shall, for
   28  the purpose of this chapter, have the meanings respectively
   29  ascribed to them in this section, except in those instances
   30  where the context clearly indicates a different meaning:
   31         (9) OWNER; OWNER/LESSOR.—
   32         (c) Application.—
   33         1. The limits on liability in subparagraphs (b)2. and 3. do
   34  not apply to an owner of motor vehicles that are used for
   35  commercial activity in the owner’s ordinary course of business,
   36  other than a rental company that rents or leases motor vehicles.
   37  For purposes of this paragraph, the term “rental company”
   38  includes only an entity that is engaged in the business of
   39  renting or leasing motor vehicles to the general public and that
   40  rents or leases a majority of its motor vehicles to persons with
   41  no direct or indirect affiliation with the rental company. The
   42  term also includes a motor vehicle dealer that provides
   43  temporary replacement vehicles to its customers for up to 10
   44  days. The term “rental company” also includes:
   45         a. A related rental or leasing company that is a subsidiary
   46  of the same parent company as that of the renting or leasing
   47  company that rented or leased the vehicle.
   48         b. The holder of a motor vehicle title or an equity
   49  interest in a motor vehicle title if the title or equity
   50  interest is held pursuant to or to facilitate an asset-backed
   51  securitization of a fleet of motor vehicles used solely in the
   52  business of renting or leasing motor vehicles to the general
   53  public and under the dominion and control of a rental company,
   54  as described in this subparagraph, in the operation of such
   55  rental company’s business.
   56         2. Furthermore, with respect to commercial motor vehicles
   57  as defined in s. 627.732, the limits on liability in
   58  subparagraphs (b)2. and 3. do not apply if, at the time of the
   59  incident, the commercial motor vehicle is being used in the
   60  transportation of materials found to be hazardous for the
   61  purposes of the Hazardous Materials Transportation Authorization
   62  Act of 1994, as amended, 49 U.S.C. ss. 5101 et seq., and that is
   63  required pursuant to such act to carry placards warning others
   64  of the hazardous cargo, unless at the time of lease or rental
   65  either:
   66         a. The lessee indicates in writing that the vehicle will
   67  not be used to transport materials found to be hazardous for the
   68  purposes of the Hazardous Materials Transportation Authorization
   69  Act of 1994, as amended, 49 U.S.C. ss. 5101 et seq.; or
   70         b. The lessee or other operator of the commercial motor
   71  vehicle has in effect insurance with limits of at least
   72  $5,000,000 combined property damage and bodily injury liability.
   73         3.a. A motor vehicle dealer or a motor vehicle dealer’s
   74  leasing or rental affiliate that provides a temporary
   75  replacement vehicle at no charge or at a reasonable daily charge
   76  to a service customer whose vehicle is being held for repair,
   77  service, or adjustment by the motor vehicle dealer is immune
   78  from any cause of action and is not liable, vicariously or
   79  directly, under general law by reason of being the owner of the
   80  temporary replacement vehicle for harm to persons or property
   81  which arises out of the use or operation of the temporary
   82  replacement vehicle by any person named in the rental or use
   83  agreement during the period the temporary replacement vehicle
   84  has been entrusted to the motor vehicle dealer’s service
   85  customer if there is no negligence or criminal wrongdoing on the
   86  part of the motor vehicle owner or its leasing or rental
   87  affiliate.
   88         b. For purposes of this subparagraph, the term “service
   89  customer” does not include an employee, an agent, or a principal
   90  of a motor vehicle dealer or a motor vehicle dealer’s leasing or
   91  rental affiliate.
   92         c. The limits on liability in this subparagraph do not
   93  apply if there is a replacement vehicle mechanical failure or
   94  defect that is a proximate cause of harm to persons or property
   95  which arises out of the use or operation of the temporary
   96  replacement vehicle.
   97         d. The limits on liability in this subparagraph do not
   98  apply unless there is a written rental or use agreement that
   99  names the drivers who will be given possession, control, or use
  100  of the temporary replacement vehicle; the rental or use
  101  agreement prohibits any person not listed in the agreement from
  102  using the temporary replacement vehicle; and the motor vehicle
  103  dealer or the motor vehicle dealer’s leasing or rental affiliate
  104  obtains from the person receiving the temporary replacement
  105  vehicle a copy of the person’s driver license and insurance
  106  information reflecting at least the minimum motor vehicle
  107  insurance coverage required in this state.
  108         Section 3. This act shall take effect July 1, 2020.