HLS 16RS-1278 ORIGINAL
2016 Regular Session
HOUSE BILL NO. 669
BY REPRESENTATIVE HUNTER
CONSUMERS/PROTECTION: Prohibits rental car companies from charging a fee for
additional authorized drivers
1 AN ACT
2To enact R.S. 51:1429, relative to motor vehicle rental agreements; to prohibit certain fees;
3 to require certain insurance options; to classify each violation as an unfair trade
4 practice; to provide for penalties; and to provide for related matters.
5Be it enacted by the Legislature of Louisiana:
6 Section 1. R.S. 51:1429 is hereby enacted to read as follows:
7 ยง1422. Unfair trade practice; motor vehicle rental agreements; prohibitions;
8 violations and penalties
9 A. As used in this Section, the following terms have the meanings hereinafter
10 ascribed to them:
11 (1) "Authorized driver" means any of the following persons who are licensed
12 drivers and who meet any applicable age requirement imposed by the rental
13 company:
14 (a) The renter.
15 (b) Any family member of the renter.
16 (c) Any person engaged in business activity with the renter.
17 (d) Any person expressly listed as an authorized driver by the renter on the
18 rental contract.
19 (2) "Rental company" means any person who is engaged in the business of
20 renting or leasing motor vehicles, as defined in R.S. 32:1252, to the public.
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 16RS-1278 ORIGINAL
HB NO. 669
1 (3) "Renter" means any person to whom a motor vehicle is rented or leased.
2 B. It shall be unlawful for any rental company conducting business in this
3 state to do any of the following:
4 (1) Charge a fee for authorized drivers in addition to the rental charge
5 typically charged for an individual renter.
6 (2) Fail to offer an additional insurance option that the renter may elect to
7 purchase, at an additional and reasonable cost, that acts as the primary liability
8 insurance policy applicable to the rental motor vehicle.
9 C.(1) Any violation of this Section shall be a deceptive and unfair trade
10 practice and shall subject the violator to any and all actions and penalties provided
11 for in this Chapter.
12 (2) For the purpose of this Section, a violation shall occur each time a rental
13 company charges a fee for authorized drivers in addition to the rental charge
14 typically charged for an individual renter.
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HB 669 Original 2016 Regular Session Hunter
Abstract: Prohibits rental car companies from charging a fee for additional authorized
drivers.
Proposed law provides for definitions.
Proposed law declares that it shall be unlawful for any rental company conducting business
in La. to charge a fee for authorized drivers in addition to the rental charge typically charged
for an individual renter. Proposed law declares that it shall be unlawful for any rental
company conducting business in La. to fail to offer an additional insurance option that the
renter may elect to purchase, at an additional and reasonable cost, that acts as the primary
liability insurance policy applicable to the rental motor vehicle.
Proposed law establishes that any violation of proposed law shall be a deceptive and unfair
trade practice and shall subject the violator to any and all actions and penalties provided for
in present law (Ch.13 of Title 51). Further, proposed law clarifies that a violation occurs
each time a rental company charges a fee for authorized drivers in addition to the rental
charge typically charged for an individual renter.
(Adds R.S. 51:1429)
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.