COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.: 4221-04
Bill No.: HCS for HB 1285
Subject: Insurance - Automobile; Insurance - General; Merchandising Practices; Motor Vehicles
Type: Original
Date: April 14, 2004
FISCAL SUMMARY
| FUND AFFECTED | FY 2005 | FY 2006 | FY 2007 |
| Total Estimated
Net Effect on General Revenue Fund |
$0 | $0 | $0 |
| FUND AFFECTED | FY 2005 | FY 2006 | FY 2007 |
| Total Estimated
Net Effect on All State Funds |
$0 | $0 | $0 |
Numbers within parentheses: ( ) indicate costs or losses.
This fiscal note contains 3 pages.
| FUND AFFECTED | FY 2005 | FY 2006 | FY 2007 |
| Total Estimated
Net Effect on All Federal Funds |
$0 | $0 | $0 |
| FUND AFFECTED | FY 2005 | FY 2006 | FY 2007 |
| Local Government | $0 | $0 | $0 |
ASSUMPTION
Officials from the Department of Revenue, Department of Insurance and Missouri Department of Transportation assume the proposal will have no fiscal impact on their organizations.
Officials from the Office of Attorney General assume any potential costs arising from this proposal can be absorbed with existing resources.
| FISCAL IMPACT - State Government | FY 2005
(10 Mo.) |
FY 2006 | FY 2007 |
| $0 | $0 | $0 |
| FISCAL IMPACT - Local Government | FY 2005
(10 Mo.) |
FY 2006 | FY 2007 |
| $0 | $0 | $0 |
FISCAL IMPACT - Small Business
A direct fiscal impact to small businesses would be expected as a result of this proposal.
DESCRIPTION
This proposal makes several changes in the laws regarding car rental contracts. The proposal:
(1) Changes the definition of "authorized driver" as it is used in car rental contracts, so as to exclude family members, employers, employees or co-workers, parking valets, and any person driving in an emergency situation;
(2) Revises the written notice that must appear on every car rental contract regarding the purchase of optional insurance coverage;
(3) Requires car rental companies to post a clear and conspicuous sign on the premises that informs the consumer about collision damage waiver, any other optional car rental insurance, and how the consumer's own auto insurance policy or credit card might already offer that protection; and
(4) Makes a car rental company subject to a $50 fine for each violation, up to $10,000 in any calendar year.
This legislation is not federally mandated, would not duplicate any other program and would not require additional capital improvements or rental space.
SOURCES OF INFORMATION
Office of Attorney General
Department of Revenue
Missouri Department of Transportation
Department of Insurance
Mickey Wilson, CPA
Director
April 14, 2004