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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
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-eighth Legislature Second Regular Session - 2006IN 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 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