Certain motor vehicle entry devices, liability for damages to rental vehicles, and providing a penalty

Currently, a motor vehicle rental company may hold a renter of a private passenger vehicle responsible for physical or mechanical damage to the vehicle caused by a theft of the vehicle while the vehicle is under a rental agreement if the theft is intentionally caused by the renter. Under the bill, the renter may be held responsible for such damage caused by any theft during the rental agreement.

Current law prohibits a rental company from offering for sale damage waivers in conjunction with a rental agreement unless the waiver meets certain standards. Among these standards is a prohibition on denial of coverage for damage unless the damage is of a sort listed in the statutes. Among the sorts of damage that may be excluded from coverage are damage occurring while the driver is driving while intoxicated or damage that is intentionally caused. The bill adds to this list damage occurring due to theft of the vehicle if 1) the theft is caused by the intentional conduct or negligent vehicle management of the renter, 2) the renter fails to file an official report of the theft with a law enforcement agency within 24 hours of learning of the theft, or 3) the renter fails to reasonably cooperate with a rental company or law enforcement investigation of the theft.

Because this bill creates a new crime or revises a penalty for an existing crime, the Joint Review Committee on Criminal Penalties may be requested to prepare a report.