SB 1263 - This act makes several changes in the laws regarding car rental contracts. The act changes the definition of "authorized driver" as it is used in car rental contracts to include only the actual renter, the renter's spouse (if qualified) and any person expressly listed in the renter's contract. The current law includes the renter's employer or co-workers, drivers who operate the vehicle during an emergency situation, and those who park the rental vehicle at a commercial establishment. The act prohibits car rental companies from requiring the purchase of damage waiver, optional car rental insurance or other optional products.

The act revises the written notice that must appear on every car rental contract regarding the purchase of optional insurance coverage. The notice shall state that the consumer may wish to determine whether if his or her personal insurance or credit card will provide coverage for the rental car. The act requires car rental companies to post a clear and conspicuous sign on the premises that informs the consumer about collision damage waiver, any other optional car rental insurance, and how the consumer's own auto insurance policy or credit card might already offer that protection. This act makes a car rental company subject to a $50 fine for each violation, up to $10,000 in any calendar year.

This act is identical to HB 1285 (2004).
STEPHEN WITTE