2006 Legislation
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HOUSE BILL NO. 643 – MV license, fees, recovery, when

HOUSE BILL NO. 643

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Bill Status



H0643...........................................................by BUSINESS
MOTOR VEHICLE LICENSING - Amends existing law to provide for the recovery
of vehicle licensing, title and registration fees by a company engaged in
the rental of motor vehicles; and to place limitations on such recovery.
                                                                        
02/10    House intro - 1st rdg - to printing
02/13    Rpt prt - to Bus

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-eighth Legislature                   Second Regular Session - 2006
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 643
                                                                        
                                   BY BUSINESS COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO MOTOR VEHICLE FEES; AMENDING CHAPTER 4, TITLE 49, IDAHO  CODE,  BY
  3        THE  ADDITION  OF  A  NEW  SECTION  49-451, IDAHO CODE, TO PROVIDE FOR THE
  4        RECOVERY OF MOTOR VEHICLE LICENSING, TITLE AND REGISTRATION FEES BY A COM-
  5        PANY ENGAGED IN THE RENTAL OF MOTOR VEHICLES AND TO PLACE  LIMITATIONS  ON
  6        SUCH RECOVERY.
                                                                        
  7    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
  8        SECTION  1.  That  Chapter  4,  Title  49, Idaho Code, be, and the same is
  9    hereby amended by the addition thereto of a NEW SECTION, to be known and  des-
 10    ignated as Section 49-451, Idaho Code, and to read as follows:
                                                                        
 11        49-451.  RECOVERY  OF  VEHICLE  LICENSING,  TITLE AND REGISTRATION FEES --
 12    LIMITATIONS. (1) A company engaged in the rental of motor vehicles  is  autho-
 13    rized  to  charge  its  customers  a vehicle licensing, title and registration
 14    recovery fee, hereinafter "VLF," on each rental agreement, which fee will rep-
 15    resent a portion of the company's estimated costs as imposed by the state  and
 16    by  a political subdivision for the registration, titling and licensing of its
 17    vehicles during the calendar year.
 18        (2)  If charged, the VLF shall be separately stated and identified as such
 19    on the rental agreement and described in the rental agreement as the estimated
 20    average per day per vehicle portion of the rental company's total annual vehi-
 21    cle title and registration costs for its rental fleet.
 22        (3)  A VLF shall be estimated by the rental company based upon  the  esti-
 23    mated average annual registration, titling and licensing costs and prorated at
 24    1/365 of the annual registration, titling and licensing costs for each full or
 25    partial rental day.
 26        (4)  No  company  charging  a  VLF may make an advertisement in this state
 27    that includes a statement of the rental rate for a vehicle available for  rent
 28    in this state, unless the advertisement includes a statement that the customer
 29    must pay such a VLF and discloses the maximum daily charge for the VLF.
 30        (5)  VLFs  collected  in  excess  of  the  actual amount of the licensing,
 31    titling and registration costs  incurred  by  the  rental  company,  shall  be
 32    retained  by the rental company and applied toward the recovery of the follow-
 33    ing year's licensing, titling and registration costs.  In such event, the  VLF
 34    charged  by the rental company for the following year's VLF shall be estimated
 35    in good faith and shall be adjusted to take into  account  the  excess  amount
 36    collected from the prior year.

Statement of Purpose / Fiscal Impact



                       STATEMENT OF PURPOSE

                             RS 15570

The purpose of this legislation is to provide for legal
specification and limitations regarding the practice of charging
consumers vehicle licensing, title and registration fees as part of
the rental price when they rent an automobile in Idaho.  Initially
the legislation specifies that the practice of including vehicle
licensing, title and registration fees as a portion of the rental
price is legal under Idaho law.  However, the legislation includes
limitations upon the amount of fees that a rental company may
charge to a consumer for licensing, title and registration costs. 
Finally, the legislation requires disclosure of vehicle licensing,
title and registration fees in rental company advertisements
containing a statement of the rental rate.



                           FISCAL NOTE

No fiscal impact.




Contact
Name:     Brad Dixon 
Phone:    345-2000


STATEMENT OF PURPOSE/FISCAL NOTE                         H 643