Bill Text: IA HF340 | 2015-2016 | 86th General Assembly | Introduced

Iowa House Bill 340 (Prior Session Legislation)

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Status: (Introduced - Dead) 2015-04-07 - Withdrawn.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:
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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.
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