Bill Text: IA HSB24 | 2015-2016 | 86th General Assembly | Introduced
Bill Title: A study bill relating to certain fees charged in connection with vehicle rental agreements and making penalties applicable.
Spectrum: Unknown
Status: (Introduced - Dead) 2015-02-16 - Voted - Judiciary. [HSB24 Detail]
Download: Iowa-2015-HSB24-Introduced.html
House
Study
Bill
24
-
Introduced
HOUSE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
JUDICIARY
BILL
BY
CHAIRPERSON
BALTIMORE)
A
BILL
FOR
An
Act
relating
to
certain
fees
charged
in
connection
with
1
vehicle
rental
agreements
and
making
penalties
applicable.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
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Section
1.
Section
516D.3,
subsection
6,
Code
2015,
is
1
amended
to
read
as
follows:
2
6.
“Mandatory
charge”
means
any
charge,
fee
differential,
or
3
surcharge
that
all
or
a
majority
of
customers
must
pay
in
order
4
to
obtain
or
operate
a
rental
vehicle
except
as
follows
other
5
than
any
of
the
following
:
6
a.
“Mandatory
charge”
does
not
include
an
An
airport-imposed
7
fee
if
the
existence
and
amount
of
the
fee
are
clearly
and
8
conspicuously
disclosed
immediately
adjacent
to
any
advertised
9
rental
price.
The
customer
must
be
informed
of
the
amount
of
10
the
fee
when
the
reservation
is
made.
When
an
advertisement
11
encompasses
more
than
one
rental
location,
the
fee
may
be
12
expressed
as
the
maximum
fee
or
range
of
fees.
13
b.
“Mandatory
charge”
does
not
include
Any
taxes
imposed
14
directly
upon
the
rental
transaction
by
an
authorized
taxing
15
authority.
16
c.
“Mandatory
charge”
does
not
include
mileage
Mileage
fees
17
as
long
as
the
existence
of
any
mileage
limitation
and
cost
per
18
mile
for
excess
mileage
is
clearly
and
conspicuously
disclosed
19
immediately
adjacent
to
the
advertised
price.
20
d.
A
vehicle
license
recovery
fee
if
the
existence
and
21
amount
of
the
fee
are
clearly
and
conspicuously
disclosed
22
immediately
adjacent
to
any
advertised
rental
price.
The
23
customer
must
be
informed
of
the
amount
of
the
fee
when
the
24
reservation
is
made.
25
Sec.
2.
Section
516D.3,
Code
2015,
is
amended
by
adding
the
26
following
new
subsection:
27
NEW
SUBSECTION
.
12.
“Vehicle
license
recovery
fee”
means
a
28
charge
that
may
be
separately
stated
on
a
rental
transaction
29
originating
in
this
state
to
recover
costs
the
rental
company
30
incurs
in
this
state
to
license,
title,
register,
and
plate
31
rental
vehicles.
32
Sec.
3.
NEW
SECTION
.
516D.6A
Vehicle
license
recovery
fee.
33
1.
If
a
rental
company
includes
a
vehicle
license
recovery
34
fee
as
a
separately
stated
charge
in
a
rental
transaction,
the
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amount
of
the
fee
shall
be
equal
to,
subject
to
any
adjustment
1
under
subsection
2,
the
rental
company’s
good-faith
estimate
2
of
the
rental
company’s
annual
average
per
vehicle
cost
to
3
license,
title,
register,
and
plate
rental
vehicles
in
this
4
state.
5
2.
If
the
total
amount
of
the
vehicle
license
recovery
6
fees
a
rental
company
collects
in
a
calendar
year
exceeds
the
7
rental
company’s
actual
costs
to
license,
title,
register,
and
8
plate
rental
vehicles
in
this
state
for
that
calendar
year,
9
the
rental
company
shall
retain
the
excess
amount.
However,
10
the
rental
company
shall
calculate
the
amount
of
the
following
11
year’s
vehicle
license
recovery
fee
in
the
same
manner
as
12
provided
in
subsection
1,
except
that
an
amount
equal
to
the
13
excess
amount
retained
shall
be
subtracted
from
the
rental
14
company’s
good-faith
estimate
of
the
total
annual
costs
to
15
license,
title,
register,
and
plate
rental
vehicles
in
this
16
state.
17
EXPLANATION
18
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
19
the
explanation’s
substance
by
the
members
of
the
general
assembly.
20
This
bill
relates
to
fees
vehicle
rental
companies
charge
to
21
recover
costs
incurred
to
license,
title,
register,
or
plate
22
rental
vehicles
in
Iowa,
and
makes
penalties
applicable.
23
The
bill
defines
“vehicle
license
recovery
fee”
as
a
24
charge
that
may
be
separately
stated
on
a
rental
transaction
25
originating
in
this
state
to
recover
costs
the
rental
company
26
incurs
in
this
state
to
license,
title,
register,
and
plate
27
rental
vehicles.
28
Rental
companies
may
charge
a
vehicle
license
recovery
fee
29
that
is
equal
to
the
rental
company’s
good-faith
estimate
of
30
the
per
vehicle
cost
to
the
rental
company
to
license,
title,
31
register,
and
plate
rental
vehicles
in
Iowa.
The
bill
provides
32
that
if
the
total
amount
of
vehicle
license
recovery
fees
a
33
rental
company
collects
exceeds
the
amount
it
actually
spent
to
34
license,
title,
register,
and
plate
rental
vehicles,
the
rental
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company
shall
keep
the
excess
amount
and
adjust
the
vehicle
1
license
recovery
fee
for
the
following
year
by
a
corresponding
2
amount.
3
The
bill
provides
that
the
vehicle
license
recovery
fee
4
is
not
a
mandatory
charge
that
must
be
included
in
a
rental
5
company’s
advertisement
or
quote
if
such
fee
is
clearly
6
disclosed
next
to
the
advertised
rental
price.
7
Pursuant
to
Code
section
516D.9,
any
violation
of
the
8
provisions
of
the
bill
is
an
unlawful
practice
under
Code
9
section
714.16(2)(a).
Code
section
714.16
permits
the
attorney
10
general
to
investigate
a
person
the
attorney
general
believes
11
is
engaged
in
an
unlawful
practice
and
to
seek
and
obtain
12
injunctive
relief
against
a
person
who
is
engaged
in
an
13
unlawful
practice,
and
for
a
court
to
impose
a
civil
penalty
14
against
a
person
who
committed
an
unlawful
practice.
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