AN ACT Relating to motor vehicle rentals; adding a new chapter to Title 19 RCW; and providing an effective date.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1. The ability to rent private passenger automobiles at a reasonable price and upon reasonable terms is vital to promoting tourism and business in Washington. The public interest is adversely affected when consumers must agree to unreasonable terms or pay more than necessary to protect the interests of the rental vehicle owner from damage caused by the renter. The legislature finds that the legitimate interests of renters and rental vehicle owners are served by prohibiting private passenger automobile rental companies from imposing liability upon renters, subject to certain specified exceptions, and from selling collision damage waivers in connection with private passenger automobile rental agreements of no more than thirty-one continuous days.

NEW SECTION. Sec. 2. Unless the context requires otherwise, the definitions in this section apply throughout this chapter.

(1) "Rental company" means a person or organization in the business of providing private passenger motor vehicles to the public through the use of a rental agreement.

(2) "Renter" means a person or organization obtaining the use of a private passenger automobile from a rental company under the terms of a rental agreement.

(3) "Rental agreement" means a written agreement setting forth the terms and conditions governing the use of a private passenger motor vehicle provided by a rental company for no more than thirty-one continuous days, which agreement excludes the use of the vehicle to carry persons or property for hire.

(4) "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.

(5) "Private passenger automobile" or "vehicle" means a motor vehicle of the private passenger or station wagon type, including passenger vans and minivans that are primarily intended for transport of persons.

(6) "Authorized driver" means the person to whom the vehicle is rented and, if a licensed driver and satisfying the company's minimum age requirement:

(a) The spouse of such person;

(b) The renter's employer, employee, or coworker if engaged in business activity with the renter; and

NEW SECTION. Sec. 3. (1) No rental company may, in any rental agreement, hold an authorized driver liable for any damage, except where:

(a) The damage is caused intentionally by an authorized driver or as a result of his or her willful and wanton misconduct;

(b) The damage arises from the authorized driver's operation of the vehicle while illegally intoxicated or under the influence of an illegal drug as defined or determined under the law of the state where the damage occurred;

(d) The rental transaction is based on false or incomplete information supplied by the renter with the intent to defraud the rental company;

(e) The damage arises from the use of the vehicle while committing or otherwise engaged in a criminal act in which the vehicle usage is substantially related to the criminal activity; or

(f) The damage arises from the use of the vehicle outside the United States or Canada, unless that use is specifically authorized by the rental agreement.

(2) An authorized driver is not responsible for the acts of a person who drives or moves the vehicle because of an emergency situation or for the acts of a person to whom the vehicle is entrusted for parking or servicing of the vehicle in a municipal or public lot or commercial establishment open to the public.

(3) A rental company may bring an action for damages arising from the use of a vehicle subject to a rental agreement against a renter or authorized driver who is a resident of the United States only in the state and county of the renter's or authorized driver's primary residence.

(4) The rental company may not request or require a deposit or other security for damage to the vehicle during the rental period or pending resolution of any dispute.

(5) No rental company, in connection with a rental agreement subject to this chapter may offer, or provide for, the elimination of any of the exceptions listed in subsection (1) (a) through (f) of this section, if the renter is required to pay a fee or consideration in excess of the standard price for the rental agreement to obtain elimination of the exceptions.

NEW SECTION. Sec. 4. A violation of this chapter is an unfair method of competition and an unfair or deceptive act or practice in the conduct of a trade or commerce, as specifically contemplated by RCW 19.86.020, and is a violation of the Consumer Protection Act, chapter 19.86 RCW. A renter or authorized driver injured as a result of a violation of this chapter may maintain an action pursuant to chapter 19.86 RCW against the rental company and is entitled to all of the rights and remedies afforded by that chapter. A successful claimant under this section is also entitled to reasonable attorneys' fees.

NEW SECTION. Sec. 5. Sections 1 through 4 of this act shall constitute a new chapter in Title 19 RCW.

NEW SECTION. Sec. 6. This act shall take effect on September 1, 1989.