GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2007
S 2
SENATE BILL 1118
Commerce, Small Business and Entrepreneurship Committee Substitute Adopted 5/9/07
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Short Title: Rental Car Fee Reform. |
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Sponsors: |
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Referred to: |
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March 22, 2007
A BILL TO BE ENTITLED
AN ACT to allow the unbundling of vehicle license and registration fees from rental car rates.
The General Assembly of North Carolina enacts:
SECTION 1. G.S. 66‑201 is amended by adding a new subdivision to read:
"(8) "Vehicle license and registration fees" means charges that may be imposed upon any rental transaction originating in this State to recoup the costs incurred by a rental car company to license, title, inspect, and register rental vehicles. Rental car companies shall make a good faith effort to ensure that any vehicle license and registration fees collected do not exceed the actual costs incurred by the rental car company to license, title, inspect, and register rental vehicles. Any amounts collected by the rental car company in excess of the actual amount of its costs incurred shall be retained by the rental car company and applied to the costs incurred in the next calendar year for licensing, titling, inspecting, and registering rental vehicles. In that event, the good faith estimate of any vehicle license and registration fees to be charged by the company in the next calendar year shall be reduced to take into account the excess amount collected from the prior year."
SECTION 2. G.S. 66‑202 reads as rewritten:
"§ 66‑202. Rental car advertising.
(a) Except as set forth in subsections (d) and (e) of this section and G.S. 66‑204(a), a rental car company shall only advertise and charge a rental rate that includes the entire amount, except taxes and a mileage charge, if any, that a renter must pay to hire or lease a vehicle for the period of time to which the rental rate applies.
(b) If a rental car company states a rental rate in a print advertisement or in an in‑person or computer‑transmitted quotation contained in the rental car company's proprietary computer reservation system, the rental car company shall clearly disclose or cause to be disclosed in that advertisement or quotation the terms of any mileage conditions relating to the advertised or quoted rental rate, including, but not limited to: To the extent applicable, the amount of mileage and fuel charges; the number of miles for which no charge will be imposed; and a description of the geographic driving limitations, if any, within the United States and Canada.
(c) A rental car company shall also include in all price advertising the daily rate it charges for collision damage waivers; shall state in such advertising that collision damage waivers are not required; and shall state that prospective renters should examine or inquire about their automobile insurance policies to see whether such policies will cover damage to rental vehicles.
(d) For a rental rate stated in an advertisement,
quotation, or reservation for an airport location, a rental car company shall
clearly and conspicuously disclose the existence and actual amount of the
airport charges or fees, if any. For a rental rate stated in an advertisement,
quotation, or reservation involving more than one airport location, a rental
car company shall clearly and conspicuously disclose the existence and range of
airport charges of or fees, if any, or the maximum airport charge
or fee. A rental car company, in its discretion, may elect to separate
vehicle license and registration fees from its rental rate. For a rental rate
stated in an advertisement, quotation, or reservation with a separate vehicle
license and registration fee, a rental company shall clearly and conspicuously
disclose the existence and range of vehicle license and registration fees or
the maximum vehicle license and registration fee. For purposes of this
section, advertisements shall include radio, television, other electronic
media, and print. For purposes of this section, quotations and reservations
shall include in‑person or proprietary computer‑transmitted
reservation systems.
(e) A rental car company shall clearly and
conspicuously display the total estimated price, and the amount of the
airport charges or fees fees, if any, and vehicle license and
registration fees, if any, in any proprietary computer‑assisted
reservation system, shown or referenced on the same page on the computer screen
viewed by the renter as the displayed rental rate and in a print size not
smaller than the print size of the rental rate. A rental car company shall
inform the renter of the amount of the airport charges or fees either at the
time of making an initial quotation of a rental rate or at the time of making a
reservation, if the quotation is made by the rental car company for a location
at which it collects airport charges or fees.When providing a renter a
quotation of a rental rate in person or over a voice system, a rental car
company shall inform the renter of the total estimated price, inclusive of all
taxes, fees, and charges, or shall disclose the amount of airport charges or
fees, if any, and vehicle license and registration fees, if any. A rental
car company shall separately identify the amount and existence of the airport
charges or fees and vehicle license and registration fees on the rental
agreement."
SECTION 3. G.S. 66‑203(a) reads as rewritten:
"(a) No rental car company may charge, in addition to the rental rate, taxes, airport charges and fees, if any, vehicle license and registration fees, if any, and mileage charge, if any, any fee that must be paid by the renter as a condition of hiring or leasing a vehicle, such as, but not limited to, required fuel charges or any fee for transporting the renter to the location where the rented vehicle will be delivered to that person."
SECTION 4. G.S. 66‑204(a) reads as rewritten:
"(a) In addition to the rental rate, taxes, airport charges and fees, if any, vehicle license and registration fees, if any, and mileage charge, if any, a rental car company may charge a renter for an item or service provided in connection with a particular rental transaction if the renter can avoid incurring that charge by choosing not to obtain or utilize the optional item or service. Items and services for which a rental car company may impose an additional charge include, but are not limited to: Optional insurance and accessories requested by the renter unless otherwise prohibited by law; service charges incident to a person's optional return of the vehicle to a location other than the location where the vehicle was hired or leased; optional collision damage waivers; and charges for refueling the vehicle at the conclusion of the rental transaction in the event the rented vehicle is not returned with as much fuel as was in its fuel tank at the beginning of the rental."
SECTION 5. This act becomes effective July 1, 2007.