Bill Text: IA HF340 | 2015-2016 | 86th General Assembly | Introduced
Bill Title: A bill for an act relating to certain fees charged in connection with vehicle rental agreements and making penalties applicable. (Formerly HSB 24) (See Cmte. Bill HF 622)
Spectrum: Committee Bill
Status: (Introduced - Dead) 2015-04-07 - Withdrawn. H.J. 769. [HF340 Detail]
Download: Iowa-2015-HF340-Introduced.html
House File 340 - Introduced HOUSE FILE BY COMMITTEE ON JUDICIARY (SUCCESSOR TO HSB 24) A BILL FOR 1 An Act relating to certain fees charged in connection with 2 vehicle rental agreements and making penalties applicable. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: TLSB 1418HV (3) 86 jh/nh PAG LIN 1 1 Section 1. Section 516D.3, subsection 6, paragraph a, Code 1 2 2015, is amended to read as follows: 1 3 a. "Mandatory charge" does not include an airport=imposed 1 4 fee or a vehicle license recovery fee if the existence and 1 5 amount of the fee are clearly and conspicuously disclosed 1 6 immediately adjacent to any advertised rental price. The 1 7 customer must be informed of the amount of the fee when the 1 8 reservation is made. When an advertisement encompasses more 1 9 than one rental location, the fee may be expressed as the 1 10 maximum fee or range of fees. 1 11 Sec. 2. Section 516D.3, Code 2015, is amended by adding the 1 12 following new subsection: 1 13 NEW SUBSECTION. 12. "Vehicle license recovery fee" means a 1 14 charge that may be separately stated and charged on a vehicle 1 15 rental transaction originating in this state to recover fees 1 16 paid to this state by a rental company to license, title, 1 17 register, and plate rental vehicles. 1 18 Sec. 3. NEW SECTION. 516D.3A Vehicle license recovery fee. 1 19 1. A rental company may include separately stated charges in 1 20 a rental agreement pursuant to the provisions of this chapter 1 21 for the recovery of fees paid to this state to license, title, 1 22 register, and plate rental vehicles. 1 23 2. If a rental company includes a vehicle license recovery 1 24 fee as a separately stated charge in a rental transaction, 1 25 the amount of the fee shall represent the rental company's 1 26 good=faith estimate of the rental company's average per vehicle 1 27 portion of the rental company's total annual titling and 1 28 registration fees paid to this state. 1 29 3. If the total amount of the vehicle license recovery 1 30 fees collected by a rental company under this section in any 1 31 calendar year exceeds the rental company's actual fees paid 1 32 to this state to license, title, register, and plate rental 1 33 vehicles for that calendar year, the rental company shall do 1 34 both of the following: 1 35 a. Retain the excess amount to be held in a vehicle license 2 1 recovery fee fund as a consumer credit for the following year. 2 2 b. Lower the estimated average per vehicle titling and 2 3 registration charge for the following calendar year by the 2 4 corresponding amount in the vehicle license recovery fee fund. 2 5 EXPLANATION 2 6 The inclusion of this explanation does not constitute agreement with 2 7 the explanation's substance by the members of the general assembly. 2 8 This bill relates to fees vehicle rental companies charge to 2 9 recover costs paid to license, title, register, or plate rental 2 10 vehicles in Iowa, and makes penalties applicable. 2 11 The bill defines "vehicle license recovery fee" as a charge 2 12 that may be separately stated and charged on a vehicle rental 2 13 transaction originating in this state to recover fees paid to 2 14 this state by a rental company to license, title, register, and 2 15 plate rental vehicles. 2 16 Rental companies may charge a vehicle license recovery fee 2 17 in a rental transaction that is equal to the rental company's 2 18 good=faith estimate of the average per vehicle portion of the 2 19 rental company's total annual titling and registration fees 2 20 paid to this state. The bill provides that if the total amount 2 21 of vehicle license recovery fees a rental company collects 2 22 exceeds the amount it actually spent to license, title, 2 23 register, and plate rental vehicles, the rental company shall 2 24 keep the excess amount in a fund as a consumer credit and lower 2 25 the estimated average per vehicle titling and registration 2 26 charge for the following year by the corresponding amount in 2 27 the fund. 2 28 The bill provides that the vehicle license recovery fee 2 29 is not a mandatory charge that must be included in a rental 2 30 company's advertisement or quote if such fee is clearly 2 31 disclosed next to the advertised rental price. 2 32 Pursuant to Code section 516D.9, any violation of the 2 33 provisions of the bill is an unlawful practice under Code 2 34 section 714.16(2)(a). Code section 714.16 permits the attorney 2 35 general to investigate a person the attorney general believes 3 1 is engaged in an unlawful practice and to seek and obtain 3 2 injunctive relief against a person who is engaged in an 3 3 unlawful practice, and for a court to impose a civil penalty 3 4 against a person who committed an unlawful practice. LSB 1418HV (3) 86 jh/nh