Transportation Equity Act: A Legacy of Users
TRANSPORTATION EQUITY ACT: A LEGACY FOR USERS -- (House of Representatives - March 09, 2005)
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AMENDMENT NO. 10 OFFERED BY MR. GRAVES
Mr. GRAVES. Mr. Chairman, I offer an amendment.
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Mr. GRAVES. Mr. Chairman, I yield myself such time as I may consume.
Mr. Chairman, I am here today to correct an inequity in the car and truck renting and leasing industry. By reforming vicarious liability to establish a national standard that all but a small handful of States already follow, we will restore fair competition to the car and truck renting and leasing industry and lower costs and increase choices for all consumers.
Currently, a small number of States impose vicarious liability or limitless liability without fault, on companies and their affiliates simply because they own a vehicle involved in an accident. Whether or not the vehicle was at fault is completely irrelevant in these situations. These vicarious liability lawsuits cost consumers nationwide over $100 million annually.
Vicarious liability laws apply where the accident occurs. It does not matter where the car or truck was rented or leased. Since companies cannot prevent their vehicles from being driven to a vicarious liability State, they cannot prevent their exposure to these laws and must raise their rates accordingly. These higher costs have driven many small companies out of business, reducing the consumer choice and competition that keeps costs down.
While this amendment seeks to level the playing field, I want to emphasize, I want to be very clear about this, that this provision will not allow car and truck renting and leasing companies to escape liability if they are at fault. Accident victims will continue to be compensated according to individual State law.
This is supported by the NFIB. It is supported by the U.S. Chamber of Commerce and the Alliance of Automobile Manufacturers. I ask my colleagues to support this commonsense reform measure to level the playing field so that consumers are protected.
Mr. Chairman, I reserve the balance of my time.
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Mr. GRAVES. Mr. Chairman, I yield myself 30 seconds.
Quickly, Mr. Chairman, there are no uninsured rental vehicles on the road. Every single rental vehicle out there has to meet the State's minimum requirements for insurance. There is recourse. States put drivers on the road. Rental vehicle companies put cars on the road. They should be responsible for their equipment. Drivers should be responsible for themselves. But there is no uninsured rental vehicles on the road today.
Mr. Chairman, I yield 2 minutes to my good friend, the gentleman from Missouri (Mr. Blunt), the majority whip.
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Mr. GRAVES. Mr. Chairman, I yield myself 15 seconds.
Mr. Chairman, vicarious liability does not protect against uninsured drivers. It simply provides higher compensation based solely on the fact that the individual owns the vehicle. We are not absolving these companies of liability if they are at fault. What we are doing is eliminating vicarious liability simply because they own the vehicle.
Mr. Chairman, I yield 2 minutes to my friend, the gentleman from Virginia (Mr. Boucher) who is a cosponsor of this legislation.
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Mr. GRAVES. Mr. Chairman, I yield myself the balance of my time.
Mr. Chairman, think about the statement that the opposition makes, that this amendment releases the rental industry except in the case of negligence. Think about that for just a minute. They should be liable in the case of negligence. They should not be liable for the action of their drivers.
The fact of the matter is, there are no uninsured vehicles on the road. In the case of an individual's car, you have a choice of who you are going to loan that car to. A rental company has to rent to a qualified driver. If they have a driver's license and they meet the State's minimum requirements, they have to rent to them.
Mr. Chairman, it is frustrating when there is so much misinformation out there about bills like this. There are three points that I want to make and I want to be very clear on.
Just remember, rental car companies do not put drivers on the road. States do. Rental car companies put cars on the road. They should not be liable for the action of the drivers. They should be liable for the their negligence or for their equipment, but they should not be liable for the action of their drivers.
Second, there are no uninsured rental vehicles on the road today. Those vehicles, before they can even be registered, have to meet the State's minimum requirements for insurance. That is up to the States. Let the States deal with that, just as what was pointed out. But there are no uninsured rental vehicles on the roads today. There is compensation or means for compensation to folks out there who might be harmed.
The third thing, and let us be very, very clear on this, this proposal would not exempt rental and leasing companies from the liability involved with their equipment. They are still liable and should be liable for negligence when it deals with their equipment, but they should not be liable for the actions of drivers. If you rent a vehicle in a non-vicarious liability State and drive it into a State such as New York, they are liable, unlimited liability, just because they own the car. That is not right.
Mr. Chairman, I urge adoption of this and hope my colleagues can support me.
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