H 3025 General Bill, By Kirsh
 A Bill to amend Title 38, Chapter 77, Code of Laws of South Carolina, 1976, by
 adding Article 13 so as to prohibit a rental car company, in short-term
 leases, from holding a driver liable for any damage to the rented vehicle and
 provide exceptions, prohibit an employee or representative of a rental car
 company from soliciting or selling insurance in connection with a rental
 agreement unless he is licensed, and provide a penalty for violation.

   12/12/90  House  Prefiled
   12/12/90  House  Referred to Committee on Labor, Commerce and Industry
   01/08/91  House  Introduced and read first time HJ-44
   01/08/91  House  Referred to Committee on Labor, Commerce and
                     Industry HJ-44
   02/19/91  House  Tabled in committee

A BILL

TO AMEND TITLE 38, CHAPTER 77, CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING ARTICLE 13 SO AS TO PROHIBIT A RENTAL CAR COMPANY, IN SHORT-TERM LEASES, FROM HOLDING A DRIVER LIABLE FOR ANY DAMAGE TO THE RENTED VEHICLE AND PROVIDE EXCEPTIONS, PROHIBIT AN EMPLOYEE OR REPRESENTATIVE OF A RENTAL CAR COMPANY FROM SOLICITING OR SELLING INSURANCE IN CONNECTION WITH A RENTAL AGREEMENT UNLESS HE IS LICENSED, AND PROVIDE A PENALTY FOR VIOLATION.

Be it enacted by the General Assembly of the State of South Carolina:

SECTION 1. Title 38, Chapter 77 of the 1976 Code is amended by adding:

"Article 13

Section 38-77-1310. As used in this article:

(1) 'Authorized driver' means the person to whom the vehicle is rented, his spouse who is a licensed driver and who satisfies the rental car company's minimum age requirement, his employer or coworker if engaged in business activity with the authorized driver who is a licensed driver and who satisfies the rental car company's minimum age requirement, a person who operates the vehicle during an emergency situation or parks the vehicle at a commercial establishment, or a person expressly listed by the rental car company in the rental agreement as an authorized driver.

(2) 'Collision damage waiver' means a contract or contractual provision, whether separate from or a part of a rental agreement, where the rental car company agrees for a charge to waive any and all claims against the renter for any damages to the rented vehicle during the term of the rental agreement.

(3) 'Damage' means any damage or loss to the rented vehicle, including loss of use and any costs and expenses incident to the damage or loss.

(4) 'Rental agreement' means a written agreement setting forth the terms and conditions governing the use of a vehicle provided by the rental car company.

(5) 'Rental car company' means a person in the business of providing vehicles to the public.

(6) 'Renter' means a person obtaining the use of a vehicle from a rental car company under the terms of a rental agreement.

(7) 'Vehicle' means a motor vehicle of the private passenger type, including passenger vans and mini-vans that are intended primarily for transport of persons.

Section 38-77-1320. This article applies to all persons renting vehicles from locations within this State.

Section 38-77-1330. (A) No rental car company, in rental agreements of thirty continuous days or less, may hold an authorized driver liable for any damage to the rented vehicle, except where:

(1) the damage is caused intentionally by an authorized driver or as a result of his wilful and wanton misconduct;

(2) the damage arises out of the authorized driver's operation of the vehicle while illegally under the influence of an impairing substance;

(3) the damage is caused while the authorized driver is engaged in a prearranged or spontaneous speed competition with another motor vehicle;

(4) the rental transaction is based on information supplied by the renter with the intent to defraud the rental car company;

(5) the damage arises out of the use of the vehicle where the vehicle is used in the commission of a felony or other serious criminal act, other than minor traffic violations, and the vehicle is a means or operative tool of the criminal act, including transportation of illegal contraband or as a means of escape;

(6) the damage arises out of the use of the vehicle to carry persons or property for hire;

(7) the damage arises out of the use of the vehicle outside of the United States or Canada unless the use is specifically authorized by the rental agreement.

(B) No action for damage may be brought by a rental car company against a renter who is a resident of the United States except in the state and county of the renter's primary residence.

(C) No security or deposit for damage in any form, including credit card lines of credit, may be required or requested by the rental car company during the rental period or pending resolution of a dispute. Security may be allowed only in amounts to reasonably insure payment on the account or the return of the vehicle.

(D) No waiver may be offered to provide coverage for any of the exceptions listed in subsection (A). No deductible may be charged by the rental car company to the renter for damage to the rented vehicle.

Section 38-77-1340. No employee or other representative of a rental car company shall solicit or sell any kind of insurance in connection with a rental agreement unless he is licensed under Article 43, Chapter 43 of this title.

Section 38-77-1350. A rental car company, found by the commissioner after notice and hearing to have violated a provision of this article, is subject to a civil penalty in the amount of five hundred dollars for each violation. This penalty is payable to the commissioner who shall forward the proceeds to the general fund of this State."

SECTION 2. This act applies to rental agreements entered into after the effective date of this act.

SECTION 3. This act becomes effective October 1, 1991.