SENATE BILL 111
54th legislature - STATE OF NEW MEXICO - first session, 2019
INTRODUCED BY
John M. Sapien
AN ACT
RELATING TO RENTAL CARS; REQUIRING A RENTAL CAR COMPANY TO ENTER INTO A CONCESSION FEE AGREEMENT WITH A MUNICIPALITY OR COUNTY TO OPERATE AT THE MUNICIPAL OR COUNTY AIRPORT; DEFINING "CAR FACILITATION COMPANY" IN THE RENTAL CAR INSURANCE LIMITED PRODUCER LICENSE ACT; ESTABLISHING REQUIREMENTS FOR A CAR FACILITATION COMPANY IN THAT ACT.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. A new section of the Municipal Airport Law is enacted to read:
"[NEW MATERIAL] CONCESSION FEE FOR A RENTAL CAR COMPANY TO OPERATE AT MUNICIPAL AIRPORT.--
A. To operate at a municipal airport, a rental car company shall enter into a concession fee agreement with the municipality. The amount of the concession fee shall:
(1) bear a reasonable relation to the regulation of the company operating at the airport;
(2) be established with due regard to the property and improvements used and the expenses of operation to the municipality; and
(3) be uniform for the same class of rental car company or service.
B. As used in this section, "rental car company" means "rental car company" as used in the Rental Car Insurance Limited Producer License Act."
SECTION 2. [NEW MATERIAL] CONCESSION FEE FOR A RENTAL CAR COMPANY TO OPERATE AT COUNTY AIRPORT.--
A. To operate at a county airport, a rental car company shall enter into a concession fee agreement with the county. The amount of the concession fee shall:
(1) bear a reasonable relation to the regulation of the company operating at the airport;
(2) be established with due regard to the property and improvements used and the expenses of operation to the county; and
(3) be uniform for the same class of rental car company or service.
B. As used in this section, "rental car company" means "rental car company" as used in the Rental Car Insurance Limited Producer License Act.
SECTION 3. Section 59A-32A-1 NMSA 1978 (being Laws 2001, Chapter 94, Section 1) is amended to read:
"59A-32A-1. SHORT TITLE.--[This act] Chapter 59A, Article 32A NMSA 1978 may be cited as the "Rental Car Insurance Limited Producer License Act"."
SECTION 4. Section 59A-32A-2 NMSA 1978 (being Laws 2001, Chapter 94, Section 2) is amended to read:
"59A-32A-2. DEFINITIONS.--As used in the Rental Car Insurance Limited Producer License Act:
A. "car facilitation company" means a legal entity qualified to do business in this state engaged in the business of facilitating the use, rental of sharing of privately owned passenger motor vehicles for noncommercial use by individuals within this state, but "car facilitation company" does not include the registered owner of the vehicle involved in the car facilitation transaction facilitated by a car facilitation company;
B. "car facilitation transaction" means the use of a privately owned passenger motor vehicle by a person other than the vehicle's registered owner as facilitated by a car facilitation company;
[A.] C. "rental agreement" means a written master, corporate, group or individual agreement setting forth the terms and conditions governing the use of a rental car rented or leased by a rental car company;
[B.] D. "rental car" means a motor vehicle that is intended to be rented or leased for a period of ninety consecutive days or less by a driver who is not required to possess a commercial driver's license to operate the motor vehicle and the motor vehicle is one of the following:
(1) a private passenger motor vehicle, including a passenger van, minivan or sports utility vehicle; or
(2) a cargo vehicle, including a cargo van, pickup truck or truck with a gross vehicle weight of less than twenty-six thousand pounds;
[C.] E. "rental car agent" means a rental car company that is licensed to offer, sell, bind, effect, solicit or negotiate rental car insurance;
[D.] F. "rental car company" means a person or entity:
(1) in the business of renting rental cars to the public, including a franchisee; and
(2) that is a car facilitation company;
[E.] G. "rental car insurance" means insurance sold in connection with and incidental to the rental of vehicles, whether at the rental office or by a preselection of coverage in master, corporate, group or individual agreements, that is nontransferable, does not apply to any vehicle other than the rental car that is the subject of the rental agreement and is limited to the following kinds of insurance:
(1) personal accident insurance for renters and other rental car occupants, for accidental death or dismemberment and reimbursement for medical expenses resulting from an accident that occurs with the rental car during the rental period;
(2) liability insurance that, at the exclusive option of the rental car company, may include uninsured and underinsured motorist coverage, whether offered separately or in combination with other liability insurance, and that provides protection to renters and other authorized drivers of rental cars for liability arising from the operation of the rental car during the rental period;
(3) personal effects insurance that provides coverage to renters and other vehicle occupants for loss of, or damage to, personal effects in the rental car during the rental period;
(4) roadside assistance and emergency sickness insurance; and
(5) any other travel or vehicle-related insurance coverage that a rental car company may offer in connection with and incidental to the rental of a rental car, as may be approved by the superintendent of insurance;
[F.] H. "rental car endorsee" means a rental car agent employee who offers, sells, binds, effects, solicits or negotiates rental car insurance; and
[G.] I. "renter" means a person who obtains the use of a vehicle from a rental car company under the terms of a rental agreement."
SECTION 5. A new section of the Rental Car Insurance Limited Producer License Act is enacted to read:
"[NEW MATERIAL] FINANCIAL RESPONSIBILITY OF CAR FACILITATION COMPANIES.--
A. During the period of a car facilitation transaction and while the car being used in the car facilitation transaction is under the operation and control of a person other than the vehicle's registered owner, the car facilitation company that facilitated the transaction shall be considered the owner of the vehicle and shall be financially responsible for that vehicle as required by the Mandatory Financial Responsibility Act.
B. If any loss or injury occurs at any time that a vehicle is under the operation and control of a person other than the vehicle's registered owner and while it is part of a car facilitation transaction, the car facilitation company that facilitated the transaction shall assume all liability, including any claims of negligent entrustment, of the vehicle's registered owner and shall be considered the vehicle's owner for all purposes.
C. A car facilitation company continues to be liable under this section until the vehicle is returned to a location designated by the company, and one of the following occurs:
(1) the expiration of the car facilitation transaction period established for the vehicle;
(2) the intent to terminate the vehicle's car facilitation transaction is verifiably communicated to the company; or
(3) the vehicle's registered owner takes possession and control of the vehicle.
D. In the event a dispute over possession and control of the vehicle occurs in connection with a loss or injury, the car facilitation company shall initially assume liability for any claim in which the dispute exists and seek indemnification if it is later determined that the registered owner was in possession and control of the vehicle at the time of loss or injury.
E. At no time shall the registered owner of the vehicle or the owner's insurer be held liable for any loss, injury, damage or violation involving the vehicle that occurs during a car facilitation transaction unless it is shown that the registered owner was in operation or control of the vehicle at the time of the loss, injury, damage or violation.
F. Nothing in this section shall limit the liability of the car facilitation company for any acts or omissions by the company that cause loss or injury to any person as a result of the use or operation of a vehicle during a car facilitation transaction.
G. Pursuant to Paragraph (3) of Subsection C of Section 66-5-205.3 NMSA, a registered owner's insurer may exclude from a motor vehicle insurance policy any and all coverage and the duty to defend or indemnify for any claim made in connection with a car facilitation transaction.
H. A registered owner's automobile insurer that defends or indemnifies a registered owner or any other person insured under the motor vehicle insurance policy for a claim, made in connection with a car facilitation transaction, that is later determined to be excluded by the policy shall have the right to seek contribution against the car facilitation transaction company or the company's insurer if the claim is:
(1) made against the registered owner of the vehicle or renter for loss or injury that occurs during a car facilitation transaction; and
(2) excluded under the terms of the registered owner's motor vehicle insurance policy.
I. A registered owner's automobile insurer may deny issuance of, cancel, void, terminate, rescind or deny renewal of a motor vehicle insurance policy covering a vehicle that has been made available for a car facilitation transaction if the applicant for or policyholder of the motor vehicle insurance policy fails to provide complete and accurate information about the use of the vehicle in any car facilitation transaction, as requested by the automobile insurer during the application or renewal process for the motor vehicle insurance policy.
J. Nothing in this section:
(1) requires any registered owner's motor vehicle insurance policy to provide primary or excess coverage for any loss or injury in connection with a car facilitation transaction; or
(2) precludes an automobile insurer from providing coverage for a vehicle while that vehicle is made available or is being used for a car facilitation transaction if the automobile insurer elects to offer such coverage by contract or endorsement to a motor vehicle insurance policy.
K. The car facilitation company shall collect and verify records pertaining to the use of a vehicle, including times used, fees paid by a renter and revenues received by the vehicle's registered owner, and provide that information upon request to the registered owner of the vehicle, the registered owner's automobile insurer or the automobile insurer of any person operating the vehicle during the car facilitation transaction when a claim has been made against a person or entity identified in this subsection, and the car facilitation company shall retain the records for a reasonable period of time after the expiration of the applicable personal injury statute of limitations.
L. The car facilitation company shall have sole responsibility for any equipment, such as a global positioning system or other special equipment, that is put in or on the vehicle to monitor or facilitate a car facilitation transaction, and shall agree to indemnify and hold harmless the registered owner of the vehicle for any damage to or theft of such equipment.
M. For any vehicle to be made available for a car facilitation transaction, the car facilitation company shall:
(1) verify that the vehicle does not have any safety recalls pending for which repairs have not been made; and
(2) notify the registered owner of the vehicle of the requirements of Subsection N of this section.
N. If the registered owner of a vehicle that is intended to be made available for a car facilitation transaction has received a notice of safety recall for the vehicle, the registered owner shall not make the vehicle available through the car facilitation company for any car facilitation transaction until the required safety recall repairs have been made; provided that if the registered owner of the vehicle receives notice of a safety recall while the vehicle is available or in use through a car facilitation transaction, the registered owner shall notify the car facilitation company to remove the vehicle from availability for car facilitation transactions as soon as practicably possible, but no later than seventy-two hours after receiving the notice of safety recall, and shall not allow the vehicle to be used in any car facilitation transaction until the required safety recall repairs have been made."
SECTION 6. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2019.
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